T

HE ENAZIHYDR RAINAMERI ICAisacurrentlyongoingworkinp progressofth heWhiteRose.TheNaz zi Hy ydrawasconceivedtofi illagapinth heliterature byproviding gadetailedo overviewof theinfluence e of fascism within the Unit ted States. The T intent an nd motivation for such a a project was twofold: to o s sound an om minous warn ning as to the direction this t country y is taking at t the hands of the right wing and to o p provideacon nvenient,all encompassin ngsourceon nfascismint theUnitedSt tatesforther reader.Inthisregard,the e c chaptersare heavilydocu umented.And dIurgether readerherea andthrougho outthebook ktoreadthesourcescited d f further details. for d When n complete the book is projected to o span sixte een chapters s. Chapters will w be made e a availableont thiswebsite eastheyarec completed. Aftertwo oyearsinto thisproject, Inowunderstandwhy suchabook kwasnevera attemptedbefore.Sucha a d detailedacco ountingoffas scismwithinthiscountry ywouldlitera allyfillvolum mes.Someof fthechapters sarebrutally y long, yet I feel that I hav ve omitted fa ar too many details for the t sake of the t reader. For F instance, , the Chapter r Ratlines,co overingtheCIAanditsrelianceonNa aziwarcrimin nals,isover27,000word dsorroughly y60pages. Manydet tailshadtob beomittedin nwritingtha atchapterin nsettingupt thepremiseo ofhowthiso overreliance e o Nazi war criminals st on tarted the co old war, infl luenced our foreign poli icy and even n influenced our medica al t testingonorp phansandprisoners.Atl leastahalfd dozenexcelle entbooksexp ploringthisa aspectoffascismcometo o m mindandthe ereaderisre eferredtoth hemextensiv velyinthech hapter.Butsu uchomission nsofdetailb becomeafac ct o oflifeinpres sentingabroadoverview wofacomplex xandmanyf facetedtopic c. Infactno othingremain nsunchangedfromtheoriginaloutlin ne.Eventhetitlewascha angedtobett terreflectthe e s subject from the original title of Hi igh Noon: in n Fascist Am merica. The real danger of fascism is i that its so o insidious tha at it can cree ep into every y crack of da aily life unno oticed includ ding religious s groups, hence the logic c b behind the change in title. t Chapte ers were om mitted and others adde ed as resea arch dictated d. Additiona al information and revision ns are neede ed and will be made in some of the e chapters already a writt ten, but such h c changesaret thehallmark kofgoodrese earch. Some rea aders will un ndoubtedly find f the Nazi i Hydra disturbing. They y shudder at t reports of another Naz zi w warcriminal lbeingdeportedandthe ecrimesagainsthumanit tythathein nflictedupon nothers.The eyfeartoask k t thequestion personcould dslipintothecountryorhowmanym morearepre esent.Others smaybelivid d howsuchap w withangeras stheNaziHy ydradetailst theassociati ionsoftheRepublicanPa artyandpast tpresidents: :Nixon,Ford d, B BushandRe aganwithN Naziwarcrim minals.Buth historycanno otberewritt tenanditsa astorythatm mustbetold d. T Those that aided Nazi war w criminals s are no less guilty of cri imes against t humanity than t any of the t Nazi war c criminalsand dneedbehe eldfullyacco ountableatt theendofah hangmansr rope.Todayw westandat theedgeofa a d deepchasmw withtherigh htwingready ytoshoveusovertheedg geintofullb blownfascism m. Stillothersmayfind TheNaziHy ydra,asitw wasintended d,asauseful lresourceon nthedanger rthatfascism m p presents to the t world an nd the United d States toda ay. In fact I have h receive ed an email from f a wond derful lady in n N NewZealand dthathasbe eenusingita asareferenc ceintheforu umMAINOT T.Heremail,withherna ameomitted d,

appearsintheravereviewlinkbelow.TheonethingIdopromiseisthebookwillnotendindarkness.Thefinal chapterwillbeachapterdetailingsolutionstostoppingfascismdeadinitstracks.Forthereaderthatcannot wait,onesuchproposalcanbefoundintheCorporateWelfaresectioninthelinkssectionoftheWhiteRose. The proposed solution to ending once and for all time corporate rule and domination is the proposed constitutionalamendment. Iwouldgreatlyappreciateifanyreaderhasdocumentaryevidenceoffascismorofrightwingpropaganda material to please email such material to me. One particular item that I am currently seeking is a list of the twentyonestepstocommunismoriginallyputoutbytheJohnBirchSocietyinthe1960sandcurrentlybeing promoted by a militia group from Arizona as recently found posted on a bulletin board of a Midwest state university. IhopeyoufindTheNaziHydrausefulandpleasefeelfreetoquoteitorciteit. AspecialthanksisextendedtoMichaelDavidson,aprofessionalwriter,whohasgraciouslyvolunteeredto editthechaptersbelow.Histimeandeffortisdeeplyappreciatedinhelpingmakethismanuscriptfirstrate.

TABLE OF CONTENTS

PREFACE.................................................................................................................................................................................................... 1
Notes ...................................................................................................................................................................................................................................................................3

CHAPTER 1: WHAT FASCISM IS AND ISNT ...............................................................................................................................................4

Notes ................................................................................................................................................................................................................................................................ 27

CHAPTER 2: CORPORATE LAW: A HISTORY ........................................................................................................................................... 30

Part 1: Constitutional Law ......................................................................................................................................................................................................................... 30 Part 2: Supreme Court Cases ................................................................................................................................................................................................................... 36 Notes ................................................................................................................................................................................................................................................................43

CHAPTER 3: THE ROARING 20S AND THE ROOTS OF AMERICAN FASCISM ............................................................................................. 44
Part 1: I.G. Farben ......................................................................................................................................................................................................................................... 44 Part 2: Economic Warfare and Traitors in High Places ...................................................................................................................................................................49 Part 3: The Great Paper Shuffle and the Cartels .............................................................................................................................................................................. 60 Part 4: The Red Scare of 1919 .................................................................................................................................................................................................................. 65 Part 5: Preachers and Klansmen ............................................................................................................................................................................................................ 72 Notes ................................................................................................................................................................................................................................................................ 78

CHAPTER 4: THE 1930S: NAZIS PARADING ON MAIN STREET .............................................................................................................. 80

Part 1: The Plot Against Roosevelt ......................................................................................................................................................................................................... 80 Part 2: Republicans, Nazis and Elections .............................................................................................................................................................................................. 85 Part 3: Fascists and Unions ....................................................................................................................................................................................................................... 90 Part 4: The Press Sells Out to the Nazis .............................................................................................................................................................................................. 95 Part 5: Congressmen and Seditionists .................................................................................................................................................................................................. 99 Part 6: The Pro-Nazis of the 1930s ....................................................................................................................................................................................................... 107 Appendix 1: Big Donors to the Pro-Nazi Groups ................................................................................................................................................................................. 115 Notes ............................................................................................................................................................................................................................................................... 117

CHAPTER 5: THE WAR YEARS ............................................................................................................................................................. 120

Part 1: The Failure of the FBI ................................................................................................................................................................................................................... 120 Part 2: Rainbow 5 and the Great Sit Down Strike .......................................................................................................................................................................... 129 Part 3: The Battle for the Home Front ................................................................................................................................................................................................ 134 Part 4: The Nazis Run for Cover ........................................................................................................................................................................................................... 139 Part 5: Corporate Traitors ..................................................................................................................................................................................................................... 145 Part 6: Nativists Adopt Fascism ............................................................................................................................................................................................................ 151 Notes .............................................................................................................................................................................................................................................................. 160

CHAPTER 6: A PLEDGE BETRAYED ........................................................................................................................................................ 163

Part 1: What went wrong at Aachen?..................................................................................................................................................................................................163 Part 2: United Nations War Crimes Commission ............................................................................................................................................................................... 171 Part 3: What is a War Crime? ................................................................................................................................................................................................................ 174 Part 4: The OSS: Friend or Foe................................................................................................................................................................................................................ 179 Part 5: The OSS in Europe..........................................................................................................................................................................................................................183 Part 6: The Nazis Plot a Comeback ........................................................................................................................................................................................................ 191 Part 7: The Control Council of Germany .............................................................................................................................................................................................. 195 Part 8: Generals Clay and Draper ......................................................................................................................................................................................................... 199 Part 9: John McCloy...................................................................................................................................................................................................................................203

Part 10: Freeing Krupp .............................................................................................................................................................................................................................. 208 Part 11: Cover Up......................................................................................................................................................................................................................................... 214 Part 12: The New German Government and Old Nazis ..................................................................................................................................................................... 218 Notes .............................................................................................................................................................................................................................................................. 225 Appendix 1: OSS Personnel Jobs Following the War. ...................................................................................................................................................................... 228 Appendix 2: Captured Documents ......................................................................................................................................................................................................... 229 Appendix 3: Gold Fillings, Auschwitz & George Bush .......................................................................................................................................................................234 Appendix 4: Timeline of Treason: The Bush Family Connections to the Nazis ........................................................................................................................ 237

CHAPTER 7: NAZI GOLD ...................................................................................................................................................................... 244

Part 1: The Merkers Treasure ............................................................................................................................................................................................................. 244 Part 2: Safehaven Operations ................................................................................................................................................................................................................247 Part 3: Bormanns Aktion Feuerland..................................................................................................................................................................................................... 251 Part 4: Corruption Overtakes Safehaven .........................................................................................................................................................................................254 Part 5: Operation Andrew, Swedish Neutrality and Nazi Gold ................................................................................................................................................... 260 Part 6: Portugal, Spain and Nazi Gold ..................................................................................................................................................................................................264 Part 7: Turkey, Argentina and Nazi Gold ............................................................................................................................................................................................ 269 Part 8: Switzerland and Nazi Gold ........................................................................................................................................................................................................ 273 Part 9: Nazi Gold Stories from Argentina........................................................................................................................................................................................... 281 Part 10: The Emperors Golden Lily ....................................................................................................................................................................................................... 283 Part 11: Nazi Gold and the United States ............................................................................................................................................................................................. 289 Notes .............................................................................................................................................................................................................................................................. 292

CHAPTER 8: RATLINESTHE CIA AND THE NAZIS ............................................................................................................................... 295

Notes .............................................................................................................................................................................................................................................................. 325

CHAPTER 9: THOSE DAMN HIPPIES ARE STILL TROUBLEHOW THE 60S STILL AFFECTS US .............................................................. 329

Notes .............................................................................................................................................................................................................................................................. 365

PREFACE
EFORE DIVING into the subject matter at hand, a note is in order concerning the documentation. This writerwouldhavepreferredtousereferencesentirelyfromhardcopyworksoverwebsiteurls.Hard copy references are permanent, as opposed to the more fleeting nature of the web. In this regard this writerhastriedtolimitwebreferencestothoseoforganizationsonly,ratherthantopersonalpagesthatmay beheretodayandgonetomorrow. Butthewebisawonderfulresearchtool;yes,thewebhasalotofjunkaswell,butsodoesanylibrary.Its uptotheresearchertosortoutthereliableinformationinbothandtodiscardthejunk.Secondlyinformation onthewebismorecurrentthanwhatcanbefoundinanylibrary.Withthatsaid,thewriterhasmadeheavy use of web references. Yes, they may be fleeting in nature, and yes, the information may be updated in the future,butthatisahazardofanyresearchsource.Withthatsaid,thewebreferencesfoundwithinthisbookdo whatanyreferencesdoandthatistogivecredittotheoriginalwriter.Forthisreasonnoattempttoupdatethe htmllinkswillbemade. This book addresses the topic of creeping fascism in America. Before proceeding, we need to carefully definewhatismeantbycreepingfascism.Fascismitselfwillbedefinedinthefirstchapter.Creepingfascism referstoeventsthatthemselvesmaynotbetrulyfascistinnature,butwhenviewedinthecontextofagreater movementtheycanindeedbeseenaspartofafascistmovementorcontributingtotheriseoffascism.Events ofcreepingfascismwillallhaveonethingincommon:theywillrepresentalossoffreedomsfortheaverage citizen.IndeednosingleeventintheUS,oranyothercountryforthatmatter,shortofthesuspensionofthe constitutioncouldbeproperlylabeledasfascist. MuchofwhatthiswriterlabelsascreepingfascismcouldbeproperlytermedNeofascism.Anotherauthor whohasstruggledwithwhatconstitutesfascismandneofascismisRogerEatwell.[1]Theprecisedefinitionis allbutimpossible,nordoesthiswriterreallylikethetermneofascistorneonazi;ittendstosomehowlend somecreditabilitytothem.ItslikeputtingahappyfaceonaNazi;ripthemaskoffandyoustillhaveastark ravinglunatic.Forthepurposeofthisbook,creepingfascismwillbedefinedasanymeasurethatlendssupport to the elite or takes freedoms away from the greater masses. The danger with such a definition is that its a little too broad if used indiscriminately, as will be shown shortly, but nevertheless its the best definition availabletodefinecreepingfascism,whichintheremainderofthebookwillsimplybereferredtoasfascism. Itistheinherentnatureoffascismthatarevolutionisnotneededforthefasciststogainpower.Indeedthe only shooting revolution of the three classical fascist countries was in Francos Spain. Both the Nazis and Mussolinirosetopowerinwhatcouldbemoreproperlycalledanoisyprotest.Thisiswhatmakesfascismso dangerous and insidious. It can result from a natural decay of a democratic capitalistic society. Certainly economictroublesaidthefascist,asdoesthelackofstrongleadership;itwaspreciselysuchconditionsandthe resultingchaosthatallowedtheNazistoseizepowerinGermany. This then is the basis and justification of the term creeping fascism. It refers directly to the decay of a democratic society and the gradual erosion of liberties and freedom, leading to an authoritarian state. Thus when the writer labels an event as fascist, he islooking at that event in the context of a larger movement in whichindividualfreedomsandlibertiesarebeinggraduallywashedaway.Onceagainthesametypesofevents are easy to spot looking at the history of Germany now, but without the benefit of hindsight the images are indeedblurry.Americamayreversethisslideintothedarkside.Westillhavetheabilitytocounteractthose thatwishtorevokeourfreedoms.Inthefinalchapter,thewriterwillpresentdefinitestepsthatcanbetakento regainourfreedoms.Failuretoincludesuchsolutionsisfatalisticandtheoutcomefartoodarktocontemplate withouttheirinclusion. Inthesecondchapteritwillbeshownthatfascismisuniqueinnotrequiringashootingrevolutionandcan ariseout of anaturallydegenerative processofa democraticcapitalisticsociety.Sincefascismisatopdown movement,allthatisrequiredisthattheeliteofthatsocietybegintoconcentratetheirpowerwithoutregard tothemasses.Thusallfascistsneeddoistocorruptthepoliticalandeconomicprocessestobegintheirmarch toatotalitarianstate.Theycandosobyspreadingpropagandatodiscreditthegovernment,theschools,the media,thescientists,thecourtsandtheremainderoftheveryinstitutionsthathavemadeAmericagreat.Once they have created a critical mass of distrust in the public, they are then free to begin the process of concentrationofpower.ThisistheapproachthatthehardrightandRepublicanPartyhavefollowedsincethe electionofReaganin1980.Itisagradualprocessthatcaneasilybecloakeduntilitstoolate.Thepurveyorsof

fascismarefreetomaskmuchoftheconcentrationunderthebannerofcapitalism,suchastheconsolidationof themedia,whichtodayisnothingmorethanthemouthpieceforcorporateAmerica. Thewriterisnotbeinganalarmistwhenhelabelsaneventthatseemsalmostharmlessasfascism.Itsthe inherentnatureofcreepingfascismthatmasksthetruesignificanceoftheseeventsuntilitstoolate.Freedom isapreciouscommodity,andthereisnoshortageofthugsthatwilldoanythingtokillit;itrequiresaconstant vigil.These eventsleadingtofascismmayappeartobeinnocuousbythemselves,certainlythereweremany sucheventsinGermanypriortotheriseoftheNazis.ItsonlyafterwehaveseenthenastyoutcomeofNazi Germanythatwecanseethattheseeventswerenotinnocuous,thattheycontributeddirectlytotheriseofthe Nazis. At the time of their occurrence, the average German citizen would have dismissed them without any furtherthoughtasharmless,butthatsthebenefitofhindsight. Toexpoundfurtheronhowtheseeventscanappearharmlessatthetimeoftheevent,a brief look at the reaction to the appointment of Hitler will provide the ideal example. Consideringtheenormityoftheeventwiththebenefitofhindsight,onewouldexpectthe reaction to have been a loud and bloody protest, but instead the reaction was muted indifference. In a newsreel that was widely shown in movie houses throughout Germany, Hitlersappointmentaschancellorwasthelastofsixevents.Itfollowedsuchnewsworthy items as a report on ski jumping, a horse race and a horse show. Editor of Vorwarts, FrederichStampfer,recalledthatmostpeoplehadnoideawhathadbefallenthem.Foreign reactions were restrained. A Czech diplomat in Berlin saw nothing significant in the new Alfred Hugenberg cabinet. The British ambassador informed England that the appointment of the cabinet markedtheendofthepresidentialgovernments.[2]OthermembersoftheGermanpressreportedthatitwas Alfred Hugenberg who was the power behind the new cabinet. Indeed some of the leaders of big business expressedmoreconcernoverHugenbergaseconomicministerthanofHitler.[3] To further complicate matters, these events need not have been supported by the Nazis; they may have beensupportedbywellmeaninggovernmentofficialsorotherswhiletheNaziswerestillviewedasnothing morethananoisybunchofthugsledbyalittleguywithafunnymustache.Onesuchexamplewouldbethe flawintheGermanconstitutionthatmadenoallowancesforanegativeparliament.ItwasadefectthatHitler successfully exploited in his quest for power. Following the war, the flaw was corrected and the German parliamentarysystemhasperformedadmirably.Anotherexamplewouldbethelackofcomprisingamongthe variouspartiestoformaparliamentarypresidentstartingaround1930.Thiswasanotherlargefactorinthe rise to power of the Nazis: there was an acute power vacuum and no strong leadership. The electorate was simplytoofracturedorpolarizedforastrongleaderthatwasresponsibletothepeopletoarise.Yes,muchof thatpolarizationwasthedirectlycausedbytheNazis,buttheotherpartieslikewisecontributedtoit,including thecentristparties. Anotherexamplewouldbethepracticeofbigbusinessesformingcartelsdatingallthewaybackintothe monarchy.Howmuchthesecartelscontributedtotheeconomicproblemsofthe1920scanonlybeestimated, butitcertainlyaddedtotheeconomicwoesofGermany.Furtherthevariousfactionsofbusinessessoughtout conflictinggoalsfromthegovernment,contributingtothegeneralgovernmentinstability.TheRuhrindustries sought to promote free trade while the agribusinesses sought out higher tariffs on grain imports to protect theirlivelihood. Additionally we have already hinted that some of these events even preceded the formation of the Nazi party.IndeedthebestexampleofthisistheprevalenceofantiSemiticfeelingsinGermany,datingalltheway back to the time of Martin Luther. Hitler exploited the underlying antiSemitism to divide the electorate in ordertogainpower.IsracisminAmericapartofafascistmovement?Inthebookthatfollowsitwillindeedbe treatedandlabeledsimplyasfascist.Againwedonthavethebenefitofhindsightatthemomenttoknow.We do know from looking at the history of fascism that racism is indeed a characteristic of fascism, as is any methodthatcandividetheelectorate. Thiswriterfeelsthatdivisionismisanothertraitoffascismthatisalwayspresentjustasauthoritarianism andextremenationalismis.Thewriteracknowledgesthatanypoliticalpartyinademocracyusessomeformof divisionisminordertowinelections.Butthereisadifferencehere,whenthiswriterreferstodivisionismasa traitoffascismheisreferringtodestructivedivisionismthatservesonlybutonepurposeandthatistosolely furthertheaimsoftheuser. A good example of this destructive divisionism was after first being appointed chancellor, Hitler immediatelysetaboutdestroyinganychanceatformingaparliamentarymajority.Thiswillbegoneintomore

depth in the first chapter. Likewise, the Republicanled government shutdown over the budget in 1997 was simplylabeledafascistmoveonthepartoftheRepublicansbyanalogyinthesamechapter.Clearlythiswriter means it to be an example of creeping fascism and not outright fascism, the writer chooses not to insult his readersintelligencebyrepeatingtheexactphrase.Throughouttheremainderofthisbookthewriterwilllabel such events as fascism rather than creeping fascism. Likewise this writer will simply label an event as divisionism rather than destructive divisionism. One final example of divisionism that has already been mentionedisracism.Certainlyitservesnoconstructivepurposeanditcertainlyfracturestheelectorate. ThisparticularriseofthehardrightinAmericaisuniqueandposesadangerousthreattoourlibertiesand freedoms.Liketheperiodbetweenwars,thisriseinfascismisglobalinnature,notconfinedtoonecountryor one area of the world. The author does recognize that there have been times in the past of widespread repressionsuchastheriseoftheKlaninthe1920s,theprosecutionoftheWobbliesinthesametimeperiod, McCarthyism in the 1950s and even COINTELPRO in the 1960s. What then makes this time particularly dangerousandunique? Thesecond chapterexploresthe 3Msneeded forarevolutiontosucceed.Those are themedia,themilitaryandthemoney.ThehardrighttodayhastakenontheaspectsofsocialDarwinismand atnotimeinthepasthasthewealthofthecountrybeencontrolledbysofew.Themediahasconsolidateduntil only seven companies now control the airwaves and the press. In essence it is now a reality that big money ownsthemedia,theonlyexceptiontothatisthenet.Butevenhereconsolidationisalreadybeginningtooccur. It should be noted that a similar consolidation of the press occurred in Germany during the late 1920s. IndeedtherearemanyparallelsandanalogiesbetweenthepresenttimeandNaziGermany.Otherwritershave alsonotedahauntingsimilaritytoNaziGermany.[4]Inthiscasethewriterattributesthesuddenshifttothe rightinAmericatofivefactors:conservativereligiousrevitalization,economiccontractionandrestructuring, racism,socialstressandbacklash,andawellfundednetwork.Inpasttimes,notalloftheserootcauseshave occurredsimultaneously.Thiswriterconcurswithsuchananalysisandthosetopicswillbeexploredlaterin detail. Indeedthisshifttothehardrightwouldnothavehappenedwithouttheexcessesfromthe1960s.The60s wastheperiodinwhichthereligiousrightlaidthegroundworkfortheirmovement.TheGoldwatercampaign provided a pivotal role for the formation of todays hard right. Not only did it provide fertile ground for the organizers,butitalsolentsomesortoflegitimacytotheirradicalextremistviewsandservedtodesensitizeus. Theprimaryfocusofthisbookwillbethetimesfollowing1980,ashintedalready.Inordertounderstand theshiftandthedanger,itpresentsbackgroundmaterialfromearliertimesasneeded.Thechaptersfromthe first section will lay the groundwork for the background needed to fully understand the 1980s and the hard right movement. The second part will deal with the 1980s and more recent times. In any book such as this, whichisprimarilyasurveyofthesubject,thevarioustopicsarenumerousandafulldiscussionofanysingle topicisbeyondthescopeofthisbook.Indeedbookshavebeenwrittenonthetopicsorevenofsubdivisionsof atopic. The writerisnotgoingto boreyouwith overlyrepetitiousexamplesand analyses,rather thewriter willpresentvariousexamplesthatservetomakethepointbeforemovingon.Theobjectivehereistostimulate thereaderintothinkingforhimself,nottoprovideexhaustiveanalysisandexamples.

Notes
[1] [2] [3] [4] Fascism,RogerEatwell,Penguin,1996. ThirtyDaystoPower,HenryAshbyTurner,AddisonWesleyPublishing,1996,p.159. GermanBigBusinessandtheRiseofHitler,HenryAshbyTurner,OxfordPress,1985,p.326. http://www.publiceye.org/magazine/whynow.html

N N

CHAPT TER 1: WHAT T FASCISM IS AND ISNT

O OTHER R WORD cau uses so muc ch misunder rstanding, co onfusion and d heated debate in poli itics than fascism. The T term ha as been app plied to man ny individual ls such as McCarthy, M Ho oover and others, o to governme ent policies and to gove ernments themselves, many m times incorrectly. What W then is s fascism tly? Webster rs Dictionary ry defines it t as: A gov vernment system marke ed by a cent tralized dict tatorship, exact strin ngent socioeconomic con ntrols and belligerent b n nationalism. But the au uthor takes exception with w that defin nition.Atbes stthedefiniti ionistooabs stract,noristhedefinitio oncapableof ftakinginall lformsoffas scism. T Thereisares surgentwide espreadattemptbythef farrighttola abelfascism asaformof f socia alism.Freder richvonHay yekwasthe firsttoattem mptlabeling theNazisas ssocialistin n hisb bookTheRo oadtoSerfdo ompublishe edin1944.[7 70]Thehardrightquickly yadoptedit, , asitallowedthehardrightto oescapethechargesthat ttheyhadm muchincomm monwiththe e e ar re not only silly, but dishonest d as well and represent an n Nazis.[2] Such endeavors mpt by the right r to dista ance themsel lves from their earlier su upport of Hitler prior to o attem theb bombingofP PearlHarbor. . H Hayeks book k is first based on two erroneous e assumptions from fr the very y beginning. Frederich von Hayek He fi irst assumes s that fascism m and comm munism are one and the e same as th hey are both h total litariansyste ems.Thismakesaboutas smuchsense eascallingamapletreea apinetreebe ecausebotha aretrees. His second s erroneous assum mption lays in his belie ef that only socialism or r liberalism leads to totalitarian syste ems. In fact all political systems can n lead to tota alitarian syst tems and all l political sy ystems are in nherently unsta able, as is any a system created c by man. m A later r chapter wi ill look at th his instability y of governm ments or polit ticalsystems. F From there Hayek H takes extreme liberties with history. h For instance he goes on to claim c that th he United State esbydeliber ratepolicyal llowedtheg growthofcar rtelsandsyn ndicatesafte er1878.[71] Indeedthis dateand timeperiodissig gnificant,bu utnotforam movetoward dssocialismo orliberalism m,ratherits theopposite e,amove ardsfascism andcorpora aterule.Even nareaderw witharudime entaryknow wledgeofAm mericanhistorywould towa recog gnizethistim meframeas sthebeginni ingoftherobberbaron eraand laiss sezfaireeconomics,prec ciselythe type ofeconomic cpolicyHayekholdsinu utmostestee em.Latercha apterswilld detailbothth hesignificanceofthis howgovernm mentsfaildu uetotherichelitecorruptingthesystem. timeperiodandh H Hayekoffers littleprooft tosupporthisconclusion ns;infactthebookisdevo oidofanypr rooforevene examples to su upport his conclusions. The book de egenerates into an argument by ass sertion. Not only did Ha ayek take extre emeliberties swithAmericanhistory,h heignoredth heverynatureoffascism minGermany yandItaly. M Mussolinista atedshortlya aftertheMarchonRome e;invarious speechesW Wemusttake efromstatea authority those efunctionsf forwhichiti isincompetentandwhich hitperforms sbadly.Ib believethestateshouldr renounce its ec conomic fun nctions, especially those carried out through t mon nopolies, bec cause the sta ate is incompetent in such h matters. We must pu ut an end to o state railw ways, state postal service e and state insurance. i T state The retur rnedlargem monopoliesto otheprivatesector,after rreturningth hemtoprofit tability,such hastheConso ortiumof Matc ch Manufactu ures, the ins surance syst tem in 1923, the telepho one system in 1925 and d many of th he public work ks. In Germany the Nazis an nnounced the ey would en nd nationaliz zation of priv vate industri ies when the ey seized er.In1932H Hitlerreturn nedcontrolo oftheGelsen nkirchencom mpanytopriv vatehandsa andin1936 returned powe the stock s of Unit ted Steel to private hand ds. Througho out the 1933 31936 perio od, the Nazis s returned to t private hand dsthecontro olofseveralb banks:Dresd dner,Danat, Commerzan ndPrivatban nk,theDeutscheBankan ndseveral others.In1936thesteamship pcompanyD DeutscherSch hiffandMaschinenbauw wasreturned dtothepriva atesector. wise in 1934 4 Dr. Schach ht, the Nazi Minister M of Economy, E gav ve instructio ons to hasten n the privati ization of Likew municipal enterp prises. These e enterprises s were espec cially coveted by the rich h industrialists, as they had h been nduringthed depression. prosperouseven B Both in fasci ist Italy and d Nazi Germany the tax system was s changed to o one favori ing business s and the weal lthy. The Na azis allowed industry to o deduct from m their taxa able income all sums us sed to purch hase new equip pment;rich familiesemp ployingama aidwereallowedtocoun ntthemaida asadepende entchildand dreapthe tax benefit. b In Italy I the Mi inister of Fi inance state ed: We hav ve broken with w the pra actice of per rsecuting capit tal.[73]

Such programs catering to big business and the rich elite are more akin to the policies of the Reagan Administration than to any liberal administration, including FDRs. Likewise in the following chapters, the reader will see that it was the rich industrialist that was behind the fascist movement in the United States duringthe1930s.Thusitsnosurprisethattherightwingtodayattemptstolabelfascismassocialismintrying todistancethemselvesfromtheirprevioussupportoffascism. Perhaps the only redeeming feature in Hayeks book is his acknowledgement of environmental problems.[72]Indeedthisissignificantconsideringthebookwasfirstpublishedinthe1940s,longbeforethe birth of the environmental movement. He readily acknowledges the problem of industrial pollution and the harmful effects of deforestation, yet he stops short of any meaningful solution. Rather his solution is the sameleave the market aloneand he condemns regulation. We have plenty of proof of such a foolhardy approachbothhereandglobally.Asrecentlyasthe1970sriverscaught fireintheUnitedStates,citieswere smogstricken,harmfulpollutantsweredamagingtheenvironmentworldwide.Todaywefacetheproblemsof globalwarmingandozonedepletionandtheproblemofenvironmentalestrogens,aproblemwiththepotential ofbeingevenmorethreateningthanbothglobalwarmingandozonedepletion. ButperhapsthemostdamningofallevidencethatHayekwasdeadwrongaboutfascismbeingaformof socialismcomesfromtheimplementationofaneconomicsystembasedonhisbeliefs.Hayeklatertaughtatthe UniversityofChicago,thesameuniversitythattrainedtheBoysfromChicagothatweretheeconomicbrains behindthefascistregimeofPinochetinChile.ThereisnoquestioninthematterthatunderPinochet,Chilewas indeedfascist,theresultofacoupagainstaleftwardgovernmentbentonreform. InordertodispelthemythoftheNazisbeingsocialistweneedtofirstdefinesocialism.Socialismisrigidly definedasaneconomicsysteminwhichtheworkersownthemeansofproductionanddistributionofgoods.A morerelaxeddefinitionwouldbesimplythattheworkersmaintainpoliticalcontrolovertheproductionand distribution of goods. Even using the more relaxed definition of socialism, the Nazis cannot be labeled as socialists,astheresimplywasnoworkercontrolovertheproductionordistributionofgoodsinNaziGermany. InfacttheNazisoutlawedlegitimatelaborunionsandinstalledintheirplacequasiunionsthatwerecontrolled bytheindustrialists.Inadjavumanner,theRepublicanPartyhasrecentlytriedtoenactasimilarmeasure conferringlegalstatusonworkergroupscontrolledbycorporations.Infactsomewritershavestatedthatyou cannothavefascismwithoutcorporatism,asthecorporatepowerstructurehasmuchincommonwithfascism. DuringtheperiodprecedingtheoutbreakofWWII,itwascommontorefertofascismascorporatisminpolite Englishsociety. OthersmorerecentlytriedtodefineitastheThirdWay,inthesensethatitborrowedideasfromboth capitalism and socialism. The basic philosophy behind the Third Way essentially labels any regulations or governmentcontrolsoverbusinessesincorrectlyassocialism;essentiallyitsjustarestatementofsyndicalism. The writer rejects such nonsense wholeheartedly. It again represents an attempt to distance the right from their support of Hitler in the 1930s and ignores that the basis of the German economy under Hitler was a capitalistsystemwherethemeansofproductionremainedinprivatehands.Furtherfollowingthelogicofthe ThirdWayonewouldhavetolabelallcapitalisticsystemsasThirdWay,forthroughouthistorytherehas never been a pure capitalistic system. A pure capitalist economy is so inherently and fatally flawed that its neverbeeneventried.Butthatistobeexpectedforanysystemthatawardsthewinnerwithalltheeggs.Nor hastherebeenapuresocialisticsystemhumangreedsimplypreventsit.Thedangersofsuchnonsensecan beillustratedwiththefollowingquotetakenfromaBaptistsfundamentalistswebpageintheirlabelingofthe Japaneseeconomyasfascist: However,Fascismisaneconomicterm,denotingthetypeofeconomywheretheMeansofProduction [Factories,companies]andtheownershipofrawmaterials[mines,oilwells]remainsinthehandsof privateindividuals,butwherethegovernmentintervenestodeterminehowmanycompetitorswillbe allowedtoproducethesamething,howmuchisproduced,andwhatpricesmaybecharged.[1] Hereitcanbeseenthattheterm fascismhasbeenclearlymisapplied.Thisdescriptionindeedcouldpassfor the economic theory of the fascist philosopher George Sorel. This is a description of syndicalism; it was the economicmodeloffascistItalyandNaziGermanytoalargeextent.Syndicalismdoesdrawsomeaspectsfrom socialism,butthesystemisstillacapitalisticsystemasownershipofthemeansofproductionanddistribution of goods remain in private hands. It is no more socialism than the collusion of the robber barons and the corrupt politicians of those days, like those involved in Tammany Hall. The only difference between this

example of syndicalism and that of corruption and collusion is that the government participation is open, versusthebackroomcorruptionofpoliticiansinTammanyHall. NotonlydoesJapaninvokesyndicalism,butalmostallthePacificRimnationsdotosomeextent.Theseare thesamenationsthatthehardrighthasheldupinthepastasdarlingsofcapitalismandfreeenterprise.Yet thesearepreciselythesameeconomicpoliciesoftheNazisthattheyhavetriedtofoistoffassocialism.Thekey distinction here is the means of production still remains in private hands, just as it did in Nazi Germany. No capitalistic society has ever existed without some form of syndicalism or government control over the economy. The closest America came to an entirely capitalistic system was either the 1890s and the robber baronsorthelaissezfairepoliciesofHerbertHoover,andasweallknowthatdidntendtoowellintheGreat Depressionofthe1930s. Nowheredoesthequoteaboverefertototalitariancontrolorextremenationalisminfacttheyhavetried todefinefascisminstrictlyeconomictermsfortheirownpurposes.Butitdoesservetopointoutthedangers ofinventingtheThirdWayortheuseofsyndicalisminanattempttolabeltheNazis.Theproblemhereis: Wheredoessyndicalismendandcapitalismbegin?Isthetradingofpollutioncreditsaformofsyndicalismoris itfreeenterprise?ThehardrightinAmericatodaywouldattempttolabelitassocialism,astheytrytodowith anylawsorregulationsofbusiness.Infactthepastlawsregulatingcorporationsweremuchmoresevereand restrictive in the 1800s than today, as well show in another chapter. One could argue that it was through syndicalism that the power elite and corporations gradually eroded those laws untilcorporations now enjoy morefreedomsthananindividualenjoys.WellshowthatthisispreciselywhathashappenedinAmericaina followingchapter. Butenvironmentalandlaborlawsarenotsocialism;theyareinfactnothingmorethananattempttobring backtoorderanoutofcontrolsystemhellbentonexploitationoftheenvironmentandlabor.Thiswritertakes the point of view that no labor or environmental law was ever passed in a vacuum. All of these laws were broughtaboutonlybyaneedtocorrectanunhealthyorunsafesituation. Regulationofbusinessesorcorporationsbyitselfisnotsocialism.Itisthiswritersopinionthatabusiness entityhasnorightsotherthanwhatprivilegesasocietywishestograntit.Peoplehaverights;apapercreation ofasocietysuchasacorporationhasnoinherentrights.Thiswritertakestheopinionthatbusinessentities such as corporations only have conditional privileges based upon providing for the common good. All such papercreationshaveanobligationtoservethesocietywhichcreatedit,failingatthat,ithaslostanyrightfor itscontinuedexistence.Itistheright,nay,theobligationofthatsocietytorestricttherightsofsuchentitiesto promoteequalityforallandtopreventarulingaristocracyfromdeveloping.Thisviewishardlysocialismor radical,unlessonewishestolabelThomasJeffersonasaradicalsocialistashiswordsbelowshow: IhopeweshalltakewarningfromtheexampleofEnglandandcrushinitsbirththearistocracyofour moneyedcorporationswhichdarealreadytochallengeourGovernmenttotrial,andbiddefiancetothe lawsofourcountry.[3] PerhapsoneofthebetterdefinitionsoffascismcomesfromHeywoodBroun,anotedAmericancolumnistin the1930s: Fascismisadictatorshipfromtheextremerightor,toputitalittlemorecloselyintoourlocalidiom,a governmentwhichisrunbyasmallgroupoflargeindustrialistsandfinanciallords.Ithinkitisnot unfairtosaythatanybusinessmaninAmerica,orpublicleader,whogoesouttobreakunionsislaying thefoundationsforfascism[75] The author, if forced to define fascism in a single sentence or phrase, would label fascism as a totalitarian governmentwithextremenationalistictendenciesinwhichthegovernmentiscontrolledandoperatedforthe benefitofafewelite.Butthiswriterdoesnotbelievethatanallencompassingdefinitionofacomplexsystem canbestatedsosimply.Suchsimpledefinitionsundoubtedlyfailintime.Ratherthiswritertakestheviewof listingthetraitsthatarecommontotheclassicalfasciststatesofFrancosSpain,NaziGermanyandfascistItaly. Thewriterslistoftraitsoffascismispresentedbelow.Notethatthefirsttwoarethetwomostdefiningtraits, obviouslymanyoftheotherscanbeappliedtomanyothersociopoliticalsystemsasonemovesdownthelist. 1. Totalitarian. 2. Extremenationalism. 3. Topdownrevolutionormovement. 4. Destructivedivisionismsuchasracismandclasswarfare. 5. Extremeanticommunism,antisocialismandantiliberalviews.

6. Extremeexploitation. 6 . 7 Opportun 7. nisticideolog gylackinginconsistencyasameanst tograbpowe er. 8 Unbridled 8. dCorporatism. 9 Reactiona 9. ary. 1 Theuseo 10. ofviolencea andterrortoattainandm maintainpow wer. 1 Cultlikefigurehead. 11. 1 Theexpo 12. oundingofm mysticismorr religiousbeliefs. N Notallfascist tsneedexhib bitallofthe traits.Once againitshou uldbeempha asizedthatt theallfascist tswillexhibi it a atotalitarian nviewcouple edwithextre emenational lism.Welllo ookbrieflyat ttheabovetraitsandhow wtheyrelate e t tofascismus singprimaril lyNaziGerm manyasanex xample,first tbecauseitw wasindisput tablyfascista andsecondly y b becausether eismorelite eratureavail lableonthe Nazisthano oneitherfasc cistItalyorF FrancosSpai in.Butfinally y t theuseofthe eNazisasan nexampleis closertothe efocusofthi isbook;that tiscreeping fascisminAmerica.Wel ll d define creepi ing fascism as a the gradu ual loss of freedoms of th he masses to o the power elite. A full definition o of c creepingfasc cismappears sinthepreface. Itshouldbenotedhereattheoutsetinmostc casestheterm mfascistwillbeappliedt toeventsthr roughoutthis s b book that in themselves may not be truly fascist t by themsel lves, but as a whole of a a greater mo ovement may y indeed be cr reeping fasc cism. And, make m no mis stake, the power p elite, those that own and ru un Americas s c corporations ,arefascist. Theyhavefo orcedwaron nthiscountr rytoprotect theirassets, ,theyhaveo overexploited d t their employ yees, they ha ave used viol lence to bust t unions, and d they rely on o divisionis st policies su uch as racism m a andclasswar rfaretomain ntaintheirpo ower.Eventu uallysuchlos ssesleadtoa afinalfascist tstate,muchliketheslow w r riseoftheNa azisinGerm manyoverthe eperiodof1 19201932;o onlyherein Americathe eprocessha asbeenmuch h s slower. hofthetrait tslistedforfa ascism,abriefreviewofthehistoryo offascisman nditsrootsin n Beforelookingateach m modernphilo osophyisin order.Byloo okingatthe rootsoffasc cisminphilosophy,weca angainanun nderstanding g w fascism is often des why scribed as re eactionary. By B looking at t the various s philosophe ers that have e come to be e a associatedw withfascism, wewillbea abletoseeth hatmanyoft thesetraitsc comedirectl lyfromfascismsrootsin n p philosophy.I Inthisway wecanthen w seehowsom meofthese traitsthatca anbeapplie edtoothersociopolitica al s systemsarec centraltofas scism. Many wr riters have assumed a tha at fascism ha as no intellectual or phi ilosophical roots due to its lack of a a c consistentid eology.Buts suchviewsareincorrect; ;therootsof ffascismexte endbacktot theFrenchR Revolution.In n e essence fasci ism was a re eaction to th he French re evolution. It was a react tion particularly to the slogan s of the e r revolutionof fLiberty,Eq quality,Fraternitythatth heyhatedthe emost. Theconc ceptoflibert tyfromoppr ressiveregim mesintheda ailylivesofi itscitizens,includingfor rcedreligious s v valuesandth heconceptofvotingandmajorityrulewherethe eminorityst tillretaineda asetofinalienablerights s incensedthem m.Suchaco onceptwasa directthrea attotheking gsandnobles softhetime, ,aswellastothechurch h. R Rememberth hiswasatim mefordebtorsprisons,in ndenturedservantsandv vassalstates. Equalityi intheeyeso ofthelawwa asunspeakab ble.Howcouldamerepe easanthavet thesamerigh htsunderthe e law as the ki ings, nobles and mercha ants? This was w the time when the ki ings word was w the law. Rights were e b basedonthe esocialstand dingofones sbirth.Theo onlyrightsa apersonhad datthetime e weretherightsthatthe e k kingwaswill lingtoextend d,andtheycouldbewith hdrawnatan nytime. Fraternit ty in the sen nse that all men m and wom men shared humanity was w consider red heresy. It was a time e w when slaves were still considered and treated as a animals. Women W were considered d property, not n part of a a g greaterhuma anitythatneededtobesh hared. All three e terms mea ant a loss in n power and d control by y those in power. p But, this is exactly what the e p philosophers sthathaveco ometobeassociatedwith hfascismwe erereactingt toandreject ting.Theperiodfollowing g t theFrenchR evolutionpr roducedavir rtualintellect tualstewofv variousphilo osophies,inc cludingthose eofMarxand d E Engels.Wew willtakeabr rieflookatsomeofthem majorphilosophersoffascismandse eehowthey relatetothe e t traitslistede earlierandh howtheywe ereareaction ntotheFren nchRevoluti ion.Thislist ofphilosoph hersisbyno o m meanscomp lete,butitw willsufficeto oshowthat manyofthetraitsattrib butedtofascism a abovehaver ootsgoingba ackasfarastheFrenchR Revolution. A Arthur Scho openhauer(17881860) wasaGermanphilosoph herperhaps, bestknown nfor h The Wo his orld as Will and Repres sentation.[4 4] His belief fs held that the will is the u underlyingan ndultimater reality.Thew wholepheno omenalworld dwasonlyth heexpression nof w will.Individu ualshavefreewillonlyin nthesenset thateveryon neisanexpr ressionofaw will.
Arthu ur Schopenhauer

Thus s we are not t authors of f our own de estiny, chara acter or beh havior accord ding to Scho openhauer. His H views parallel the dev velopment of f relativistic physics tha at came a century c later r. His views s were influential on zscheandoth hers. Nietz Geor rg Hegel(17 7701831)w wasaGerman nphilosophe erwhoheld pantheisma attheheart of his beliefs. b The Phenomeno ology of Spir rit and Sci ience of Log gic are two of his bette er know wnworks.Hisview was thatall exis stence andal llhistorywe eredivinean ndthatnatur re was sacred. He viewed God as an absolute spirit th hat also manifested itse elf in materi ial gsandindivi iduals.Hebe elievedGoda actedthroug ghhumansa andembodiedhimselffir rst thing inna ature,thenin ntherisings stagesofhum manconsciou usnessandc civilization.H Healsohada an ethnocentric and d egocentric view. He ma aintained tha at the Germa an nation wa as the highe est Georg W.F. W Hegel ier of the wa ave of Gods developmen nt. He believ ved that the bureaucratic b c monarchy of carri Prussia was the highest form m of state. These later views were certainly man nifested in th he Nazis vie ew of the anraceassho owninthefo ollowingquo ote: Arya Thus the hig ghest purpos se of the folkish state is concern for r the preserv vation of tho ose original racial r e elementswh ichbestowc cultureandc createthebe eautyanddig gnityofahig ghermankin nd.We,asAr ryans, c can conceive e of the stat te only as th he living org ganism of a a nationality which not only assure es the p preservation ofthisnatio onality,butb bythedevelo opmentofits sspiritualan ndidealabilit tiesleadsitt tothe h highestfreed doms.[8] Fried drich Nietzs sche(18441 1900)wasa Germanphi ilosopherbes stknownfor rThusSpak ke Zarathustra.[5] Hitler liked d to be pho otographed staring at a a bust of Nietzsche. N H He ets of morals s, one for the ruling clas ss and anoth her for the sl lave class. He H theorized two se wedthatancie entempiresgrewoutof therulingcl lassandthat treligionsaroseoutofth he view slave e classes, (w which denigr rates the ric ch, the powerful, ration nalism and sexuality). s H He deve eloped a concept of an o overman, a superhuman n, which sym mbolized man at his mos st creat tiveandhigh hestintellectualdevelopm ment. Friedrich h Nietzsche O Obviously th he overman n was man nifested in the t Nazis view v of the Aryan race e. Nietz zsche suffere ed a mental breakdown, , most likely y from the ad dvances of sy yphilis, and was cared for f by his moth her and later r his sister, Elisabeth. His sister pain nstakingly gathered his notes to pub blish his late er works. How wever,shewa asactiveint therisingant tiSemiticmovementatt thetimeand dmayhavet taintedhisla aterwork with her views. From time to time Nietzsche enjoy ys a rebirth of popularit ty. Today is one such rebirth r of ularity,fitting ginwellwit ththeunmiti igatedgreed dandcorpora atismoftoda ayshardright.Theconn nectionto popu theN Nazisisobvio ousasshown nbythefollo owingquotat tion: Withsatanic cjoyinhisfa ace,theblack khairedJewi ishyouthlur rksinwaitfo ortheunsusp pectinggirlw whom h hedefileswi thhisblood,thusstealin ngherfrom herpeople. Witheverym meanshetri iestodestro oythe r racial founda ations of the e people he has set out to subjugate e. Just as he e himself sys stematically ruins w womenandg girls,hedoesnotshrink kbackfromp pullingdown nthebloodb barriersfor others,even nona large scale. It was and it t is Jews who o bring Negr roes into the e Rhineland, always with h the same secret s t thoughtand clearaimof ruiningtheh hatedwhite racebynece essarilyresul ltingbastard dization,thro owing itdownfrom mitsculturea andpoliticalh height,andh himselfrising gtobemaste er.[9] A no ote here to th he reader: notice n the sim milarity in th his passage and a the Coun ncil of Conse ervative Citizens that Sena ator Lott and d Representa ative Barr su upported bef fore becomin ng embroiled in the resu ulting scand dal in late 1998 8.[10] The website w for this t white supremacist group comp pared interr racial marria age to the mixing m of choc colate milk with w plain mi ilk and label led it as a pa ath to racial extinction. They also de escribed Lin ncoln as a comm munist.[11] Henr ri Bergson (18591941) ) was a Fren nch philosop pher of a Jew wish father and a an Englis sh moth her. He was the winner of the Nobel l Prize for lit terature in 1927. 1 He reje ected the ide ea thatscientificpri inciplescouldexplainallexistence.H Hewasaprom moterofwha athasbecom me wnasSocialDarwinism.[ [6]Perhapso oneofhisbetterknownw workswasT TimeandFre ee know Will.Hewasals soabeliever inpantheism m.Onceagai inweseethe eobviousco onnectionwit th Nazisofama asterraceint thefollowing gquoteconcerningtheN Naziseuthana asiaprogram m: theN

AccordingtoBertran ndRussell,howe ever,Hegeltoas stedtheFrenchRevolution R every ryyearonBastil lleDay.Mark

Henri Bergson

a secret circular went out from the Reich interior Ministry which marked the beginning of a programmeofeuthanasiaformentallyillordeformedchildrenuptothreeyearsold.Doctorswouldbe required to report all such cases to the health authority on special forms; the forms would then be forwardedtoapanelofthreemedicalassessorswhowouldadjudicateoverlifeordeathbyappending or+.Shouldallthreeplacea+,aeuthanasiawarrantwouldbeissued,signedbytheReichsleiter Phillip Bouhler of the Fuehrers Chancellery or SS Oberfuehrer Dr. Viktor Brack, head of the ChancellerysEuthanasiaDepartmentII.Andsoithappened:infantsmarkedfordeathweretransferred to what were referred to as Childrens Special Departments in politically reliable clinics, there to be givenamercydeathbyinjectionorinoneinstitutionatEglfingHaarsimplystarvedbyaprogressive reductionofdiet.[7] George Sorel(18471922)wasaFrenchphilosopherwhohadconsiderableinfluenceon Mussolini.Aswehavealreadynoted,hiswritingspromotedaneconomicmodelbasedon syndicalism. He also believed in the degeneration of societies and believed that social decaycouldonlybedelayedbyidealistswhowerewillingtouseviolencetoobtainpower. Hisviewswereextremelyantidemocraticandantiliberal. With this very brief review of philosophy, we have shown that the fascist traits of nationalism,totalitarian,racism,violence,unbridledcorporatism,reactionaryandthetop down nature of fascism all are grounded in the works of past philosophers. We can now George Sorel lookateachofthetraitsandhowitrelatestotheoverallideologyoffascism. Atotalitariangovernmentisonethatseekstomaintaincontroloverallaspectsofpublicandprivatelife,by usingpropaganda,terrorandtechnology.Totalitarianregimesseekcontroloverpolitics,societyandculture. Theastutereadershouldnotethelackofeconomiccontrol;thefascistregimesinthepasthaveleftownership of production in private hands. It is true that they rely on syndicalism to exert a limited control over the economy,butsuchcontrolisdirectedmorealongthelinesofadvancingthestate,suchasproductionofwar material.Dictatorshipsdifferinseekingonlylimitedcontroloverthepoliticalenvironmentofasociety. Totalitarianregimescanarisebothfromtheleftandtheright,fromtheleftwegetcommunismandfrom therightwegetfascism.Theprimedifferencebetweenthetwoisthatincommunismthegovernmentownsthe means of production. There was only limited government ownership under the Nazis (many of the governmentownedbusinessesweretakenoverbythegovernmentpriortotheNazisrisetopower),theNazis evenprivatizedtheelectricutilities,andtheeconomyundertheNazisreliedonprivateownershipofindustry. There were no shortages of big businesses that lined up to relocate around the concentration camps to take advantageofslavelabor,norwasthereashortageofbusinessesthatsoughtoutmoregovernmentcontracts fornewproducts.NodirectiveswereneededtogathersupportfromtheindustrialistfortheNaziregime,the Nazisinessenceweregoodforbusiness.Thelargesteeland coalindustrieswereelatedtobuildnavalships andtanksforHitler.Itmeantanexpansionoftheirbusiness. What is less understood about the totalitarian power Hitler achieved was the path to obtain that power. There never has been totalitarian regime that had instant access to total control. Even Mussolini took three years before consolidating his power. In the case of the Nazis it took even longer and the path to that totalitarianstatedidnotstartwiththeelevationofHitlertothepositionofchancellor.Somehistorianstrace therootsofthepathallthewaybackintothe1800s.Inalaterchapterwewillexplorethereasonswhyfascism doesntneedarevolutiontogaincontrol.AcompleteanalysisofGermanhistoryfromthetimeofthemonarchy totheseatingofHitlerisbeyondthescopeofthisbook,ifnotbeyondthescopeofanysinglebook,asvolumes could be written. What follows is a very brief look at the slow erosion of freedom and the concentration of powerasitrelatestothefinaltotalitarianstate. Forourpurposes,wewillonlylookattheperiodfollowingWWIasbeingrelevant.Forthemostpart,the periodfollowingWWIwasaperioddominatedbyraucouspoliticsandcrisisaftercrisisinGermany.Thetwo periodsinwhichtheNazisgainedthemoststrengthweretheearly1920s,duringthehyperinflationaryperiod, culminating in the Beer Hall Putsch, and the depression of 1929 to 1931. There is little need to examine the raucouspoliticsofthatperiod;everyoneiswellawareofHitlersSAthugsbreakinguppoliticalralliesofother parties,whichalsoresortedtothesametactics.Itwouldnotbeuntruetodescribemanypoliticalralliesofthe timeasendinginbrawls. HitlerandtheNaziswereextremists,andmostlyrejectedbytheGermanvotersinthegoodeconomictimes duringthe1920s.Forexamplein1928,theyonlypolled2.6%ofthevote,gainingjust14seatsoutofthe491 seats in the Reichstag by virtue of the republics proportional representation. By 1930 and the start of the

depr ression, the Nazis had in ncreased the eir seats to 107 out of 577 5 seats in n the Reichst tag. In the July 1932 elect tionatthehe eightofthed depression,t theNazispol lled37.4%ofthevote,w winning230s seatsintheR Reichstag and were now Germanys G la argest party.[ [13] In the November N 1932 election n they only won w 196 sea ats, as an miceconomic crecoveryw wasalreadyu underway;th hepeoplebeg ganrejecting gtheNazisan ndtheirradicalviews anem anda actions. B ButGermany ysplungeint toatotalitar rianstatebeg ganbeforeth heNazistookover.Itwa asasmucho ofaresult ofal lackofastro ongleaderas sanythingel lse.Forthef firsteleveny yearsoftheG GermanRep public,there hadbeen seventeen cabine ets headed by b nine diffe erent chance ellors.[12] Un ndoubtedly the t country faced grave crises in this period, such h as hyperinf flation, but the t lack of st trong leader rship and an increased polarization p i readily is appa arent.Yes,th heNaziswere ethemostno otoriousrad dicals,unwilli ingtocompr romise,butt theotherpar rtieshave tosh haresomeof ftheblamef forthispolar rizationasw well.Theblam mecanbeex xtendedbeyo ondtheparti iestothe veste edinterests behindeach hparty,inclu udingthatof f bigbusinesses.Fracturi ingtheelect toratebypol larization was playing righ ht into the divisionist d ch haracter of th he Nazis, wh hose radical program lac cked a broad d base of port,astheel lectionresultsfrom1928 8showed. supp A Additionally t chance of o a strong le eader from the t center em merging. Changes in gov vernment it lessened the occu urringthatfre equentlycan nonlyleadto omoreinstab bilityandchaos.Anideal lparallelist thelongstrin ngofone term m Presidents ending wit th Lincoln and a the Civil War. The polarization n of the Uni ited States gradually g incre eased from about a 1820 on, resulting g in oneterm m Presidents s. Once again n we see the effect of in ncreasing polar rizationofth heelectorate e,leadingtof frequentcha angesingove ernment,end dingbadly.A Anotherstrin ngofone term mPresidentse endedwitht theelectiono ofRooseveltinthemiddleoftheGrea atDepression n. S Suchfrequen ntchangesingovernment tdonotallow wbusinesstomakelong rangeplans,nordoesitallowfor enou ugh to time for f programs s enacted by y a government to work. . These effec cts then act as a negative feedback, f furth herincreasin ngthepolariz zationandth heresultingc chaos. A Additionally theGerman constitution n wasflawed d anddidno otaccountforanegative parli iament.Powe erinGerman nywasconce entratedint theofficeoft thepresiden ntheadedby y Paul von Hinden nberg, who initially i had been elected by conser rvatives and reactionary y tists.Hewas samember ofthearisto ocratsfromt theJunkercl lassandhadbeenawar right hero o; he likewise held senti iments for the monarch hy. The presi ident had th he power to appo oint cabinets s and chance ellors. Beginn ning in 1930 0 Hindenber rg began the e practice of f appo ointingchanc cellorsofhis schoicethat twerenotbeholdentot theparliament.Toallow the chancellors c t circumven to nt parliamen nt, he granted them emergency powe ers that had been ngiventothe epresidentb bytheconstitution.Starti ingin1930, almostallna ationallaws, inclu uding the po ower to tax x, were ena acted by pre esidential de ecrees and not by the Paul von Hindenberg H parli iament. Such h presidentia al decrees would w be sim milar to the executive or rders in the Unite ed States. A disturbing parallel p tren nd in the United States has h been an increase in the use of executive e orde ers on more e controvers sial issues. Examples would w be Bu ushs ban on n fetal tissu ue research and the impo ortationofRU U486,bothr reversedbyC Clinton. H Hence,evenb beforeHitler rwasappoin ntedtothech hancellorpos sition,power rwasbeingc concentrated dintothe two offices of the t chancellor and the president. At least tw wice before appointing Hitler as ch hancellor, denberg ente ertained ideas of violati ing the cons stitution by not holding g elections within w the si ixty days Hind requ uiredbythec constitution. H Hindenberg nted Hitler as chancellor with th he understa anding that Hitler wou uld be a had appoin parli iamentaryra atherthanap presidentialchancellor.H Hitlerimmed diatelysetaboutsabotagi ingtheeffort tstoform apar rliamentarym majority.Hereisoneoft thefirstexam mplesoffasci ismanddivis sionism.Asim milaractionoccurred in th he 1990s wit th President t Clinton fore ewarning the Republican n controlled Congress th hat their bud dget as it stood dwasvetob bait.ManyRe epublicans,aswellasthe ehardrightC CouncilofNa ationalPolicy y,openlyboa astedthat theywouldshutdownthegovernmentan ndforceanextremistbud dgetonAmer rica.Clintonvetoedtheb budget,as mised,andth heRepublicansrefusedto onegotiatea anewbudge et,resultingi intheshutdo ownofalarg gepartof prom the government. Only after r being casti igated by th he public fo or the shutd down, and rightfully r so, , did the ublicanspass sabudgetth hatthePresid dentwouldsign. Repu O February On y 1, parliame ent was dissolved and new n elections s were scheduled for ea arly March. Using U his henc chmen, Hitler rhadtheRe eichstagbuildingburnt.T Thefire was sblamedon theCommun nists,hisma ainrivals. Hitle er banned th he Communi ists from th he upcoming g election. Additionally A G Goring, from m his positio on in the cabin net,deputize edhisstormtroopersto harassanyp politicaloppo osition;even nthentheNa aziscouldno otachieve

amajorityinparliamentastheypolledonly43.9votes.[14]BysummerallpoliticalpartiesexcepttheNazishad been dissolved. On the death of Hindenberg in 1934, Hitler assumed the office of president and further consolidatedhisgriponpower.ItwouldtakeacoupleofadditionalyearsbeforeHitlerwasatruetotalitarian leader;hepurgedthejusticesystemofjudgeswithadverseviews,appointingrabidNazisintheirplaces;the stormtroopersweregivenpolicepowers.JusticewasnowtheNazipartyline. Onedoesnotneedtoexpoundupontheextremenationalismofthefascists.Thehistoryoftheirinvasions inaquestforworlddominioniswellknown.MussoliniturnedhisattentiontoEthiopiaandNorthAfrica;Hitler firsttoAustria,thenCzechoslovakia,followedbyWesternEuropeandlatertoNorwayandtheEast. Hitler had left a blueprint for his extreme nationalism and the quest for lebensraum in Mein Kampf, as shownbythequotebelow: IftheNationalSocialistmovementreallywantstobeconsecratedbyhistorywithagreatmissionfor ournation,itmustbepermeatedbyknowledgeandfilledwithpainatourtruesituationinthisworld; boldlyandconsciousofitsgoal,itmusttakeupthestruggleagainsttheaimlessnessandincompetence whichhavehithertoguidedourGermannationinthelineofforeignaffairs.Thenwithoutconsideration of traditions and prejudices, it must find the courage to gather our people and their strength for an advance alongtheroad thatwillleadthispeoplefromitspresentrestrictedlivingspacetonewland andsoil;andhencealsofreeitfromdangerofvanishingfromtheearthorofservingothersasaslave nation. TheNationalistSocialistmovementmuststrivetoeliminatethedisproportionbetweenourpopulation andourareaviewingthislaterasasourceoffoodaswellasabasisforpowerpoliticsbetweenour historicalpastandthehelplessnessofourpresentimpotence.[15] The third trait of fascism is that it consists of a top down revolution or movement. It is becoming more accepted today that the Nazis drew support from all classes. Indeed this seems a reasonable assumption, lookingatalloftheevidence.Thestormtroopers,forthemostpart,drewtheirnumbersfromthelowerand middle classes; they were unemployed laborers, inept middle management or failed businessmen. Likewise, given the vote tally of over thirty percent in the 1932 elections, the Nazis had to have drawn votes from all socialclasses,butthishasnobearingonwhocontrolledthedirectionoftheparty.Controlofthepartyrested solely with Hitler and those with whom he allied. He chose to ally with the upper class and big business, as borneoutbyhispoliciesaftergainingpower.ThereislittlecontroversyovertheconsiderablesupportHitler drewfromthearistocrats,themilitaryortheJunkers. Telltale signs forewarning of the elite control over the power behind the power is evident from the very formationofthepartyuntilthefinaldaysbeforegainingpower.Onceagainwewilltakeabrieflookatthereal support behind the Nazis, those that financed their rise to power. This is becoming an increasing issue of contention as the hard right tries to distance themselves from the similarities between the hard right in Americaandfascism. ThefirstthingofnoteintheformationoftheNaziswashowHitlerbecameamember.Hitlerhimselfdid notformthepartyinitially.Hejoinedanexistingpartyandthenmoldeditaccordingtohiswishes.Infact,his companycommanderhadorderedhimtoattendameetingofwhatwastheGermanWorkersParty.Herewas hisinitialreactiontotheparty: Myimpressionwasneithergoodnorbad;aneworganization,likesomanyothers.Thiswasthetime inwhichanyonewhowasnotsatisfiedwithdevelopmentsandnolongerhadconfidenceintheexisting partiesfeltcalledupontofoundanewparty.Everywheretheseorganizationssprangfromtheground, onlytovanishsilentlyafteratime.Thefounders,forthemostpart,hadnoideawhatitmeanstomakea partylet alone a movementout of a club. And so these organizations nearly always stifle automaticallyintheirabsurdphilistinism.[16] Hitler was a good orator, by all reports, as well as an astute political observer. He knew how to motive the massesinhisnameandhowtosustainamovement.Someoneonceremarkedrecentlythatyouneededonlyto gain control of the 3Ms to gain power. The three Ms are the military, media and money. Undoubtedly the same3MswerebehindtheriseoftheNazis.AsweseeinthepassagefromMeinKampf,Hitlerstartedwith the blessing of the military. The military as well as big business played a behindthescenes role in the appointmentofHitleraschancellor.Itsthelastofthe3Mswheremuchconfusionanddebatearise,Hitlers sourceoffundsormoney.

likewisehad B Bigbusiness dalargehan ndinbringin ngdownHei inrichBrunin ngin1930.I Inalargepa art,itwas thec constantbick keringbyspecialinterestgroupstha atledtothe fallingofBru uningscabin net.Bigbusi inesswas urgin ngthefollow wingdemandsontheBrun ninggovernm ment: 1. Thegovernm T mentmusttak kestepstolo owerthecost tofproductionandwidentheprofitm margin. 2. Lowertaxes L 3. Reducethesi R izeofgovern nment. 4. Lowerunemp L ploymentins surancebene efits 5. The T governm ment must al llow wages to progress to lower lev vels, by void ding labor contracts and d binding a arbitration.[2 26] Ifthe esedemands sfromthebu usinesscomm munityseem mfamiliartot thereader,it tsbecause,i inlargepart, ,theyare thes samepolicies sthatwereb behindtheRe eaganadministrationsdu ummysidee economics. A Afterrelease fromprison nforthefailedBeerHallP Putsch,Hitler rsonlyknow wnsourceof f incomewasfromthe sale of Mein Kampf and fee es for newsp paper article es he would write. The first f edition of o Mein Kam mpf was 8,1925inan neditionof 10,000copie essellingfor r12marks.B Bytheendo oftheyear,a almostall publishedJuly18 es had been n sold; a new w edition was w printed, but sales in n the followi ing year plu ummeted. Ye et almost copie immediatelyafte erbeingpard doned,heboughtanews supercharge edMercedes sBenzfor28 8,000marks.[17]Also erdidnotdri ive,sohehad dtheadditio onalexpenseofachauffeur.Likewisefrom1925u untilhisappointment Hitle asch hancellorin 1933,Hitlerlivedinincr reasingcomfortifnotou utrightlavish hnessforthe etimes.Cert tainlythe royaltiesfromM MeinKampfandfeesfor rhisotherwr ritingswereinsufficienttocovereve enhislivinge expenses, tomentiont thepartysex xpenses;also othefundin ngforaneverincreasing gnumberof SAtroopers, ,manyof nott whic chwereunem mployed,had dtobesecure ed. Y Yale historian Henry Ash hby Turner has h suggeste ed that the Nazis N were self sufficient t from mdues,speak kersfeesanddonations atrallies.Bu utthisseemsimprobable,lookingat t the numbers n from 1930 whe en there wer re about 100 0,000 storm troopers that had to be e fed, housed and otherwise supported; additionally a t SS. Nazi i there were 15,000 in the mbership at the beginning of 1931 1 was only 389,000.[18] Thus it seems very y mem reaso onablethato outsidesourc cesoffundin ngwereneed dedtomainta aintheSAan ndSSaswell l as th he everincre easing expen nse of Hitler rs lifestyle. Membership p fees in the e Nazi party y start tedatamark kpermonth;nonpayingmemberswe erequicklyd droppedfrom mtheparty. F From the ve ery beginnin ng of the Na azi party, Hi itler showed d a knack fo or obtaining g Henry Ash hby Turner fund ding from the e more privileged memb bers of Germ man society. For F instance everyone is s well awareofthe etrialfollow wingtheBeer rHallPutsch h,butlesswe ellknownwasaseconda arytrialfollo owingthe al,severalbu usinessment thathaddon natedmoney yorothersup pportforHit tlerwere putsch.Inthesecondarytria o trial. Som me have attr ributed much h of this ear rly funding of o the Nazis to the secret Thule Soc ciety.[19] put on Anot therearlyso ourceoffund dsintheear rly20scamefromtheef ffortsofSche eubnerRicht terwhowas sadeptat gaini ingfundsfro omBavarian aristocrats, bigbusiness smen,banker rsandleader rsofheavyindustry.[20] ]Another source of early funds f came indirectly from Fritz Thyssen. Henry y Ford also exerted a co onsiderable influence eearly1920 0sifnotoutr rightfunding g.Somepass sagesfromFordsTheIn nternationalJeware overHitlerinthe near rlyidenticalt topassagesi inMeinKam mpf.Fordsb bookisreportedtohavehadalarge effectonma anyofthe schoolchildreno ofthetimeth hatweresuff feringthroug ghhyperinfla ationandeco onomichardtimeswhiler readinga kwrittenbyt theworldsf foremostcap pitalist. book T Theextentof fFordsfinan ncialdonatio onstoHitler stillremainsamystery. TheUSamb bassadortoG Germany, Willi iam Dodd, was w quoted as a saying Certain Amer rican industr rialists had a a great deal to do with bringing fascistregimesin ntobeinginb bothGerman nyandItaly. [21]Theext tentofcorpo orateAmerica ascollabora ationwith Nazisbefore thewar,and devendurin ngthewarin nsomecases s,isnotfully yknown.But tastimegoe esbyand theN more e informatio on becomes available, th he collabora ation begins s to appear significant as a show wninthefollowingarticle e. BerndGrein nersaid26ofthetop100 0UScompan niesinthe19 930scollabo oratedtosom me d degreewitht theNazisbef fore,andins somecasesa after,Hitlerd declaredwarontheUnite ed S StatesinDec ember1941.CompanyheadquartersintheUSha avedeniedth heyknewwh hat w going in was n Germany, but there is i evidence to suggest they knew their Germa an s subsidiaries l tolera ated it and in some case es were actively involve ed, used slave labor, G Greinersaid.
William m E. Dodd

Greiner confirmed a report in the newspaper Die Ze eit, based on o his findin ngs of US corporate c mentinNaziG Germany.Th hefindingsw wentbeyond dallegations ofUSlawyersandhistor rianslast involvem yearthatautomakers sGeneralMotorsandFor rdcollaborate edwiththeN Naziregime. [22] One of the more his storically ac ccurate but shamefully apologetic to t big business sources is the book k GermanBig Businessan ndtheRiseo ofHitlerbyH HenryAshby yTurner.[23]Turnerdoe esagoodjob bindetailing g t theextensive eparticipatio onofthelea adersofbusin nesswithth heNazis,how wever,herea achesthecon nclusiontha at b bigbusiness didnotsupp portHitlerth hrougharathercontrive eddefinition ofwhatbig businessis. Hebasedhis s d definitionon thevalueof fthefloatof stockonthe emarket.His sdefinitionlimitedthenumberofcom mpaniestha at h would cla he assify as big g business to t only 14 companies c in n the Ruhr industrial area and a smattering o of c companieslo ocatedelsewh here.Essentiallyhisdefin nitionwould dbetheequivalentofsay yingthatonly ytheDow30 0 c companiesin ntheUScouldtrulybeca alledbigbusiness.Thisof fcourseisno onsense,themajorityofp peoplewould d c certainlycon nsiderChrysl ler,TexasIns struments,H HewlettPack kard,JohnDe eereandKey yBanktobe bigbusiness s, b accordin but ng to Turner rs book they y are not. It t is from this group of second s and third tier bu usinesses (in n k keepingwith hTurnersdefinition)that tprovidedth hemosthelpandsupport tforHitler. Secondly Turnerfocu usesmuchat ttentiononth heperiodof 19201928, atwhichtim methe N Naziswereo onlyatbesta aminornois syparty.Dur ringthistime etheNazisw wereluckyt topoll m morethanth hreepercent ofthevote. YetTurnert triestouset thisasproof fthatbigbus siness d didnotsupp risetopower r,althoughth herehedoes sadmitthat FritzThysse enand ortHitlersr K Kirdolf were e supporters of the Nazis during this time. An equivalent e si ituation wou uld be t todays Liber rtarianParty y,apartytha atdrawssup pportfrom Koch,head K ofKochrefine ery(a s secondtierc ompanybyT Turnersreas soning).But nooneisru ushingtofundtheLiberta arians t todaywhent theycannote evenpollfive epercentoft thevote. Finally when w the so ource of fun nds were un nquestionably from big business, Turner T Fritz Thyssen a attemptstob belittlethem bysayingth hesourceoft thefundswa asajuniorle evelexecutiv vethat c couldntbere esponsiblefo oroverallcom mpanypolicy,orheattem mptstosayt theyweregiv vento a anindividual lNazi.Inoneshamefulp passageTurn nerattempts stobelittlet thefundsgiv vento N Nazifundrai iserWalther rFunkasbei ingsolelyus sedbyFunk. Turnerdesc cribesapart ticular d drunkenbing geacrosstow wnbyFunkinwhichhep passedoutso omeratherlargetipsand dthen d drawstheco nclusionthatperhapsno oneofthefun ndsgivenFun nkeverreach hedtheNazi is.[24] T This is not the t work of f a historian, as Turner claims to be; b this is no othing more e than c conjecture by a propaga andist. There e is also one e other spec culative conc clusion one could d draw from this t passage and that is s the amoun nt of money y Funk was receiving was w so WaltherFunk e enormousth edsuchbeha avior. atitpermitte doesagoodj jobinshowingthatitwa asthoseseco ondandthir rdtierbusin nessesthatsu upportedthe e Turnerd N Nazis. In Du uren, a Rhe enish manufacturing to own, the Na azis received considera able support t from loca al industrialists ssuchasthemillionaire dynasties(aterminuse fromthe18 820sindescr ribingtheset twofamilies) o oftheSchoel otherareain whichtheN Nazisreceived dbroadsupp portfrombu usinesseswas s lersandtheSchulls.Ano S Solingen, an industrial to own.[25] Ov verall Turner r documents s the particip pation of bu usiness leade ers and their s support for the t Nazis, lea aving no que estion in the e readers mind that bus siness leader rs exerted a considerable e influenceon theNazis,if fonecanove erlookhisco ontriveddefi initionofbig gbusiness.U Unfortunately yheendshis s studyjustas theNazissei izepower. sinesseschosetoalignw withandsupporttheNaz zisafterthey ygainedpow wer. Manybus K KruppandI.G G.Farbenwe erebothexecutorsofGoringsFourY YearPlanto makeGerma any s selfsufficient t militarily by b 1940. One can view the t details of o Krupps in nvolvement and a s supportfort theNazisafte erMarch1933inthedocumentsfrom mtheWarC CrimesTribu unal a atNurember rg.[31]Thefu ullsetofava ailabledocum mentsfromN Nurembergi isalsoavaila able o online.[32] By 1939 Fa arben provi ided the Na azis with 90 0 percent of their fore eign e exchange,95 5percentofi importsand 85percento ofallmilitary yandcomm mercialgoods.In Dr. He ermann Schmitz 1 1932Herman nnSchmitz, Farbensjointchairman,joinedforc ceswithKurt t vonSchrod der, d directorofa Schroderwas safanatical Nazioftentimesdressed dinhisblack kSSuniform m. wealthyprivatebank.S S Schroderist themanthat tiscloselylin nkedwithCh haseBank,StandardOil andWalterT TeagleandITT.Schroder a andWilhelm Kepplerin1 1932formed dthegroupk knownasTh heFraternity y.Thisgrou upguarantee edasourceo of m moneytothe eGestapoandmembersa agreedtocontributeana averageofon nemillionm marksayear toHimmlers s p personallym markedSaccountandth hetransferab blesecretR accountoft theGestapo.[ [27]

InAprilof19 933GustavK Kruppsought toutaprivat temeetingwithHitler.Kr ruppagreedto ome Hitlers chief fundra aiser and cha airman of th he Adolf Hitl ler Fund. In return, Hitler beco prom mised to app point Krupp as the fueh hrer of Germ many industr ry. Over the e years Krup pp contr ributedover rsixmillionm marksofhisownmoneytotheNazisand,ifhisco orrespondenc ce is to o be believe ed, he truly y enjoyed hi is job as ch hairman.[28] ] Likewise it i is commo on know wledgethata afterHitlerw wasappointedchancellor r,Kruppgree etedpeoplec cheerfullywit th theH Heilsalutatio on. S Schirer write es that in 1931 when Hitler H decide ed to cultiva ate relations ships betwee en influ uentialindust trialleaders,hekeptthei iridentitiesa asecret. Gusta av Krupp The party st till had to play both sides of the tra acks. The pa arty had to allow a Strasse er, G Goebbelsand dFedertobe eguilethema asseswithsocialisttalkan nddenigratin ngtheindustrialmagnates. Some eofthemeet tingswereso osecretiveth hattheywereheldinfore estglades.[29] F Furtherproo ofoftheindu ustrialistinvo olvementandsupportof ftheNazisco omesfromthetestimony yofFunk at Nu uremberg. The T entire lis st is far too long to repr roduce here, but besides s Thyssen an nd Krupp, it included Geor rgvonSchnit tzlerofI.G.F Farben;Augu ustRosterga andAugustD Diehnofthep potashindus stry,Cuno;O OttoWolf, Kurt tvonSchrode erandmanyotherwealth hyindustrial lists.[30] O OnMay2,19 sraidedandoccupiedalltradeunionheadquarter rs.Theleaders 33theNazis were e beaten and d arrested; some s were placed p in con ncentration camps. Unio on funds wer re confi iscatedandt theunionsw weredissolve ed.MembersoftheComm munistPartyandtheSoci ial Dem mocratshada alreadybeenarrested.On nJune20,19 934inwhat hasbecome knownasth he Nigh htofLongKn nives,Hitler purgedthes socialistswit thintheNaz ziparty,chiefamongthem Erns stRohm. W Withthebroa adfinancials supportfrom mtheleaders softhebusin nesscommun nity,aswella as from mthemilitary yleadersand daristocrats,theNazisw weretrulyat topdownor rganization.A As alrea adyshown,theNazisuse edthelower classasfoot tsoldierstog gainpower. Theydidso in Erns st Rohm adec ceivingmann nerandonce einpowerim mmediatelyse etaboutbetr rayingtheiri interests. W Wehavealre eadyshowno oneexampleofdivisionis smbytheNazisintheirri isetopower.Butwhatse etsfascist divis sionism apar rt from the ordinary o divi isionism of any a other po olitical ideolo ogy? Certain nly any politi ician in a democracyappea alstosomes sortofdivisio onism,asheisfullyawar rethathecannotpossiblyappealtot theentire torate.Thed differenceliesinthefact thatdivision nismisalway ysdestructiv veinfascism mandserves onlyasa elect mean nstogainan ndmaintainp power.Even aftergainingpower,Hit tlerwenttog greatpainsin ndividingan ndpower playi ingonefolloweragainstanother,creatingrivalrie esinthepart tyinthepro ocess.Inshor rtHitlerkept ttheNazi party ydividedas ifitwasase etofsmallfi iefdoms.One eofthebigge estmythsab bouttheNazisisthatthe eywerea singl leunit,when ninfactthey ywereabad conglomerat tionofvariousfracturedparts.Eatwe ellstatesthe eparadox ofHi itlerspower ras:becaus setheparty wassodivid dedthatheh hadpowera andinturnthepartywasdivided from m other key centers c of po ower such as s the army.[47] In other r ideologies the division nism is not in nherently destr ructive;rath heritsbased dondiffering gapproaches storeaching ganequable solutiontoa aproblem.Inhisrise topo owerHitlerh hadnointent tionofcompromisingwit ththeotherpartiestofor rmaparliam mentarypresident;his move eswerecalcu ulatedtodes stroyanycha anceofthat. A couple of examples fro A om the pres sent can furt ther delineat te the differ rence betwee en the two. Certainly many y of the tax proposals coming from the Republi ican Party to oday could be b classed as s divisionism m, as they favor r the upper income earners over th he lower inc come groups s. This write er does not believe thes se can be prop perly labeled d as a trait of fascist divi isionism. They are more e a reflection n of differenc ce in opinion n. On the otherhand,thisw writerwould dlabelthebillsupportedbytheRepu ublicansthatwouldhaveendedthein ncometax yinthenext centuryasd divisionism. Fortunately thebillfailed;thediffere enceherewasthatnoso olutionto early thep problemoftaxationwas proposed.In nessenceit wasastallf fortimeunti iltheyhopef fullycouldg gainmore powe erincongres ssandthenr ramrodareg gressivetaxu uponthepeople. A Another eve en clearer example e of fascist divis sionism was s the Repub blican cause ed shutdown of the gove ernmentafterClintonvet toedthebud dgetbill.Clin ntonhadprev viouslywarn nedCongress sthatunless schanges were e made in th he budget, he e would veto o the bill. Me embers of th he hard righ ht Council for r National Policy and many yoftheirRe epublicanme embershado openlydecla aredtheywo ouldshutdow wnthegovernment.We allknow that after Newt Gingrich had d to use the back door on o Air Force e One, he threw such a temper tant trum that hersofthree eyearoldbra atswerecall lingintocom mplainthatt theirlittlebe eastshadtur rnedgreenw withenvy. moth

In essence th he Republica ans adopted the same policy p that Hitler H had in n his bid to dismiss parl liament, they y r refusedtone egotiatehono orably. Just as Hitler H had taken a positi ion to subve ert democrac cy, so had th he Republica ans led by Gingrich. G The e C Constitution passingofth hebudgetind detail;thesp pendingbills soriginatein ntheHouse;a afterpassage e definesthep b byboththeH Houseandth heSenateitis sthensenttothePreside entwhomay yvetoitorsi ignit.Iftheb billisvetoed d, itisuptoCon ngressandth hePresident ttoreacheith heracompro omisebillorCongressmu ustpassabil llwithatwo t thirds major rity. The failure of Cong gress to do so s was dereliction by Congress of their t constitutional duty y. F Fortunatelyt theoutragec comingfrom mthegeneral lpublicforcedtheRepublicansback ktothenego otiatingtable e. T Thelastline istheonlyd differencebet tweenthetw woevents:th heRepublican nsfearedthe ewrathofth hepeopleand d c capitulated;H Hitlerhadno osuchfearan ndparliamen ntwasdismissed. The Repu ublican shutdown of the e governmen nt also serves to point ou ut a flaw in our Constitu ution, just as s t therewasaf flawintheG Germancons stitution.Int thecaseoft theUSConst titution,thereisnomech hanismother t than shutting g down the government t if Congress fails to pa ass a budget t. If the fasc cists in American can be e s successful in n polarizing America to such an extent that the e public, or at a least a co onsiderable portion p of it t, t tolerates a go overnment shutdown, s th hen the entir re budget pr rocess becom mes a fracas. . And after observing o the e b behavior of the Republic cans in their r illfated im mpeachment attempt of Clinton, suc ch a possibil lity does not a appearsorem mote. Thewrite erwillprovideonefinal exampleofd divisionismt thatissolely ydestructive efrom t todays event ts that is not based on racism r or cla ass warfare before b moving on. That event w would be the e impeachment of Bill Clinton. It ser rved no purp pose other than t to smea ar the P President, th he articles of o impeachm ment fall far short of wh hat the foun nding fathers had d defined in th he phrase h high crimes and misdem meanors. Th hat phrase refers r back to t the m misuseofoff ficesinEngla andunderth heking.Additionallythe investigation nofKenStar rrhad Richard M. Scaife b been plagued d by civil rig ghts abuses and possible e criminal action agains st Starr hims self. It r resemblesac coupheaded dbythemult timillionaire eRichardMellonScaifew withtheaido ofthereligiou usrightmore e t thananimpe eachment. But perh haps the grea atest illustra ation of the divisionism was after seeing s the su upport for impeachmen nt e evaporate lik ke rain on hot h pavement in the Sen nate followin ng the State of the Union n address an nd a through h d defense again nst the charges by Clintons legal team. The Hou use prosecut tors, with th he collusion of Ken Starr r, q questionedM MonicaLewin nskyfurther rinsecret.Thissingleac ctionbythe HouseRepublicansinvokedcriticism m e evenfromm membersofth heirownpar rtyintheSe enate.Itwas conducteda againstthea agreedupon rules,itwas s u unconstitutio onalinthatt thepowerof finvestigatio onisdelegat tedtotheSe enate,andlik kewiseitwa asagainstthe e s statuteofthe eIndependen ntCouncil.It tservednop purposeothe erthantofu urtherdivide eanddisgust tthecountry y. Inshort,itwa asnothingbu utanattemp ptatapower rplay. Oftentime esthisdivisi ionismtakestheformof racismorclasswarfare.Itisoftenst tatedthatMu ussolinitried d t eliminate class distinc to ctions in fascist Italy, bu ut the reality y was that he h only reinf forced those distinctions s. C Certainlythe eNazispract ticedtheraci istversionin nanoutrage eousmanner rintheformoftheHoloc caust.Onthe e o otherhand,f fascistItalyw wasnotracis stinnatureu untilafterMu ussoliniadop ptedHitlersJewishsolut tion.Fascism m d doesnt necessary have to t be racist in nature, but b racism is s often used to divide th he citizens, as a the fascis st r radicalplatfo ormisntapp pealingtoth hebroadmas sses.Inadditionracism isviolentin natureand theresulting g c chaosfromt heviolence servestofur rtherdivide themasses.Whetheror rnotafascis ststateisrac cistseemsto o d depend more e upon the culture of th he society in n which it arises. Italy before b fascis sm had a lon ng history o of g generallyequ uitableracial lrelationship psgoingallt thewayback ktotheoldR RomanEmpi ire.Forinsta anceeventhe e s slaves were eventually e given g full righ hts in Rome. The reader r is reminded d in the brie ef review of philosophers s t thatitwasst atedthathat tredofJewswasbroaden ningatthetu urnofthecen ntury,buttherootsofrac cismandthis s h hatredofJew wsgoesbackmuchfurthe erinGermany yaswellnow wshow. Novemberisagoodm monthtoref flectontheto oxicityofwo ordsmeantto okill.Novem mber9 m marksthe60 0thanniversa aryofKristallnacht,the1 1938Night ofShattered dGlassunleashed b bytheNazis toterrorize GermanysJews.Thedat tewaschose enspeciallyb byJosefGoebbels, H Hitlersprop MartinLuther r,the16thce enturymonk kwho agandist,to honorthebirthdayofM w wasafather estantReform mationandt thefounder ofwhatbeca ametheLutheran oftheprote c church. eatly admire ed Luther: H He saw the Jew J as we are a only begi inning to see him Hitler gre Martin Luther t today. Indee ed. Luther sa aw the Jews as hopeles ss, wicked, venomous, v an nd devilish our

pest, torment, and misfortune. Initially certain that his version of Christianity would appeal to Jews, he expected large numbers of them to covert. When that failed to happen, he turned violently against them. In 1543,LutherpublishedOntheJewsandTheirLies,aworkthatwouldbecomeknownthroughoutGermany, perhapsthemostwidelydisseminatedworkofantiSemitismbyaGermanuntiltheriseoftheNazis400years later. WhatthenshallweChristiansdowiththisdamned,rejectedraceofJews?Lutherasked. First, their synagogues should be set on fire, and whatever does not burn up should be covered or spreadoverwithdirt,sothatnoonemayeverbeabletoseeacinderorstoneofit. Secondly,theirhomesshouldlikewisebebrokendownanddestroyed. Thirdly, they should be deprived of their prayer books and Talmuds, in which such idolatry, lies, cursingandblasphemyaretaught. Fourthly,theirrabbismustbeforbiddenunderthreatofdeathtoteachanymore. Fifthly,passportsandtravelingprivilegesshouldbeabsolutelyforbiddentotheJews. Sixthly,Iadvisethatallcashandtreasureofsilverandgoldbetakenfromthem. Burndowntheirsynagogues,forbidallthatIenumeratedearlier,forcethemtowork,anddealharshly with them. If this does not help we must drive them out like mad dogs, so we do not become partakers of their abominable blasphemy and all their other vices. I have done my duty. Now let everyoneseetohis. Thisishatespeech. Sixty years ago on the night of Luthers birthday, Nazi gangs rampaged across Germany. In every Jewish neighborhood,windowsweresmashedandbuildingsweretorched.Alltold,101synagoguesweredestroyed, and nearly 7,500 Jewishowned businesses were demolished. On that night, 91 Jews were murdered; 26,000 wereroundedupandsenttoconcentrationcamps.Itwasthegreatestpogrominhistory.Anditwasnothing comparedwithwhatwastocome.[33] The questionthenremains:WouldfascisminAmerica beracistornot? Thepasthistoryofracisminthe United States would tend to support such. We were one of the last industrial nations to allow slavery and it tooktheCivilWartoendslavery.Ithasbeenlessthanfiftyyearssinceseparatebutequalwastheruleofthe land. Its only been sixty years since Japanese citizens and immigrants were interred in camps following the bombing of Pearl Harbor. The Rosewood incident happened less than a hundred years ago and lynching of blackswascommonwellintothe20thcentury. This country has had a long dubious history of bigotry and even genocide. There is no question of the genocide of the native Americans through the efforts of the US Army in passing out blankets infected with smallpoxortheslaughterofthePlainsIndiansprimarysourceoffood,thebuffalo.ThentherewastheTrailof Tearsaswell.TheIrishimmigrantsfollowingthepotatofamineweregreetedbytheKnowNothings,aparty thatbaseditssupportonthehateofCatholics.Therearemanymoreincidentsofracism,fartoomanytocover in this chapter. In a later chapter we will explore the wholesale violations of civil rights in America in more detail. Likewiseallofthehardrightgroupsareracist,althoughmorethanonetriestoplaytheirracismdownor tohideit,suchastheJohnBirchSocietyandsomeofthevariousmilitiagroups.Othersareopenlyracistsuch astheKlan,theNazisandtheskinheads.Thegreatunifier,theIdentityreligion,linksmanyofthehardright groups.TheIdentityreligionisbasedonantiSemiticbeliefthatthetruefollowersofJesusemigratedtoBritain and northern Europe; that todays Jews are the descendents of Satan. Its the mainstay religion among the militias,thePosseComitatusandevenamongsomeoftheKlangroups.Adetailedaccountingofsomeofthe groupsfromthehardrightandthetenetsoftheirbeliefswillfollowinalaterchapter. Besides the normal hate groups based on racism or antiSemitism, the religious right hasemergedinthe1990sasavenomoushategroupbasingtheirhateongaysandabortion. Abortionclinicsincreasinglyarebecomingtargetsofbombings,arsonandvandalism.Late in1998MatthewShepardwasmurderedinWyomingafterbeingtiedtoafenceandthen pistolwhipped,forbeinggay.BelowaresomequotesfromPatRobertsonongays. Thisconduct[homosexuality]isantisocial,anditisapathology.Itisasickness,andit needstobetreated.Itdoesntneedtobetaughtintheclassroomasapreferredwayof
Pat Robertson

life.700Club,March7,1990. the acceptance of homosexuality is the last step in the decline of Gentile civilization.Pat Robertson,oftheChristianBroadcastingNetwork,warnedthathurricanescouldhitOrlando,Florida, becauseofgayeventsthere.Timemagazine,October26,1998. If the world accepts homosexuality as its norm and if it moves the entire world in that regard, the whole world is then going to be sitting like Sodom and Gomorrah before a Holy God. And when the wrath of God comes on this earth, we will all be guilty and we will all suffer for it.700 Club, September6,1995[34] ComparethatlastquoteofRobertsonstothefollowingquoteofHitleronsyphilis. they speak of this whole field as if it were a great sin, and above all express their profound indignationagainsteverysinnercaughtintheact,thenclosetheireyesinpioushorrortothisgodless plague and pray God to let sulfur and brimstone preferably after their own death rain down on this SodomandGomorrah,thusoncemakinganinstructiveexampleofthisshamelesshumanity.[39] Thereadershouldnotaskhimselfifheseriouslydoubtsthatifthereligiousrightcameintopowerthatthey wouldnotleadamovementtodenythecivilrightsofgays.Theevidenceaboundsthattheywouldpersecute gays;itaboundsinthenumerousballotmeasuresinvariousstatesthatwoulddenygaystheircivilrights.Such ameasurepassedinColorado,onlytobeoverturnedbytheSupremeCourt;anothermeasureinOregonledby LonMabonfailedstatewide,butwasreintroducedonlocalballotsinthefollowingelection.Mabonlatelyhas ledballotmeasurestolimittheconceptofafamilyandlimitingabortionstoonlythefirsttrimester.Thefirst wasanotherattempttolimittherightsofgays. InJune1998nearJasper,Texas a black man, JamesByrd,wasdragged behind apickupbodypartswere foundoveratwomilelengthoftheroadway.[35]Itistooearlyfortrendsinhatecrimestoemerge,astheFBI onlybegantrackinghatecrimesin1991,buttheonethingthatdoesappeartothewriteristhathatecrimesare becomingincreasinglyviolent.Therealdangerofthesetwomurdersistheyservetodesensitizeus,leadingto morenumerousandincreasinglevelsofviolence,justastheNazisusedincreasinglevelsofviolenceagainstthe Jews. Racismisreemerginginvariousformsinthe1990sinpoliticalissuesandintheRepublicanParty.English only laws are being promoted with increasing frequency by various Republican candidates, including Robert Dole,andhaveevenappearedonsomeballotmeasuressuchasCaliforniaProposition187.Theobvioustargets are immigrants from Mexico; in effect its nothing more than the reemergence of nativism. Other forms of nativism have appeared such as denying immigrants access to welfare and the public school system for childrenofimmigrants.Nativismisalsobehindvariousimmigrationbillsandtheincreasingeffortsdirectedat illegalaliens. PerhapsthemostdangerousformofracismtoemergehasbeentheRepublicanefforts tomonitorthepollsandvideotapethoseleaving.Caseshaveariseninthe1998electionin North Carolina, Georgia, Michigan, Maryland, Kentucky, Texas and Maine. The efforts are directed primarily at districts which have a high percentage of minorities. Such efforts serve no useful purpose and constitute a violation of the Voting Rights Act.[36] More disturbingisthattheChiefJusticeoftheSupremeCourt,WilliamRehnquist,servedasthe director of Republican ballot security in the poor areas of Phoenix, Arizona between 19581962.[37]HelikewisewroteaproseparatebutequalmemoasalawclerkforJustice Robert Jackson, all of which was brought out in his confirmation hearings. Get the feeling William Rehnquist someonewasasleepwhentheyvotedtoconfirm? AnevenmoresubtleeffortonthepartofRepublicansindenyingvotestotheminorities and the poor is centered about the debate to allow a statistical correction to the 2000 census.SuchaneffortonthepartoftheRepublicansgoesfarbeyondtheelectionof2000. The census will be used to reapportion congressional districts for the decade. Thus by denying the correction, they are in effect perpetuating their power to 2010 by Bob Barr undercountinggroupsthathistoricallyvoteforDemocrats. In December 1998 Republican House member Bob Barr and Senator Trent Lott were exposed as keynote speakers before the Council of Conservative Citizens, a racist organization.Lottwaslaterdeterminedtohavebeenanhonorarymemberandhadwritten several articles for their paper dating back to the early 1990s. In January Republican Trent Lott

National Chairmen Jim Nicholson asked members to dissociate themselves from this group and directly appealedtonationalcommitteememberBuddyWitherspoonfromSouthCarolinatoresign.Therequestwas refused.[38] Once before the Republicans were asked to denounce the radical John Birch Society at their National Convention in the early 1960s. Moderate members such as the former President Jerry Ford did so, however, the measure failed. This writer is of the opinion that such a measure denouncing the Council of Conservative Citizens will never even be put to the vote to the delegates in 2000. Instead the hard right memberswilldoalotofjawboning,mildlycriticizingtheCouncil,butembracingitintheshadows.Itisalsothe opinionofthiswriterthatiffullblownfascismemergesinAmerica,itwilltakeonracialovertones. AnotherRepublicanthat deservesmentionhereisPatBuchananandhisantiSemitic views.FirstheisprobablytheonepersonintheRepublicanPartythatcantrulybelabeled afascist,secondlybecausehewasapresidentialcandidateandlastlybecausehereignsas a supreme bigot. Buchanan has opposed virtually all civil rights bills and favorable court decisions; he has supported apartheid in South Africa; he has spewed forth views of Pat Buchanan Holocaustdenial;hehascalledfascistssuchasFrancoandPinochetsoldierpatriots.And BuchananwasakeyfigureinurgingReagantovisittheSScemeteryinBitburg.[40] ThusaswepreparetoenteranewcenturytheRepublicanPartyhasadoptedracismasadivisionisttool,to dividetheelectorateinanattempttomaintainpowerandenacttheirextremistagenda.Thiswriterdoesnot meantoinferthat allmembers oftheRepublican Party areracist,butinsteadisreferringtothose members fromthehardrightthatcontroltheparty.Therearehonorablemembersoftheparty,buttheyarebeingforced intolesserandlesserroles;theextremistshavegainedcontrol.Itstheburdenofthosehonorablemembersto takebackcontroloftheirpartyanddenouncetheextremistsbeforeitbecomestoolate. Perhaps the best assessment of the use of destructive divisionism by fascists comes from a 1945 War departmentpublication: ThreeWaystoSpotUSFascists. Fascists in America may differ slightly from fascists in other countries, but there are a number of attitudes and practices that they have in common. Following are three. Every person who has one of themisnotnecessarilyafascist.Butheisinamentalstatethatlendsitselftotheacceptanceoffascist aims. 1. Pitting religion, racial, and economic groups against one another in order to break down the national unity is a device of the divide and conquer technique used by Hitler to gain power in Germanyandinothercountries.Withslightvariations,tosuitlocalconditions,fascistseverywhere haveusedthisHitlermethod.Inmanycountries,antiSemitismisadominantdeviseoffascism.In theUnitedStatesnativefascistshaveoftenbeenantiCatholic,antiJew,antiNegro,antiLaborand antiforeign born. In South America native fascists use the same scapegoats except that they substituteantiProtestantismforantiCatholicism. Interwoven with the master race theory of fascism is a well planned hate campaign against minorityraces,religions,andothergroups.Tosuittheirparticularneedsandaims,fascistswilluse anyoneoracombinationofsuchgroupsasaconvenientscapegoat. 2. Fascism cannot tolerate such religious and ethical concepts as the brotherhood of man. Fascists denytheneedforinternationalcooperation.Theseideascontradictthefascisttheoryofthemaster race.Thecolor,race,creedornationalityhaverights.Internationalcooperation,asexpressedin theDumbartonOaksproposals,runscountertothefascistprogramofwarandworlddomination. Right now our native fascists are spreading antiBritish, antiSoviet, antiFrench and antiUnited Nationspropaganda. 3. It is accurate to call a member of a communist party a communist. For short, he is often called a Red. Indiscriminate pinning of the label Red on people and proposals which one opposes is a commonpoliticaldevice.Itisafavoritetrickofnativeaswellasforeignfascists. Many fascists make the spurious claim that the world has but two choiceseither fascism or communismandtheylabelascommunisteveryonewhorefusestosupportthem.Byattackingour freeenterprise,capitalistdemocracyandbydenyingtheeffectivenessofourwayoflife,theyhope totrapmanypeople.[74] The extreme anticommunism and antisocialism stance of the fascist is beyond dispute among honest historians. Both communists and socialists were the first to enter the concentration camps in Nazi Germany.

Both Mussolini and Franco fought against communist influence. From the brief survey of the fascist philosophersandextremeantiliberalstance,antiliberalismhasbeenafactorinfascismfromthebeginning. NooneneedsareviewoftheNazisviolationsofcivilrightsorotherfreedoms.Wehavealreadyshownthatthe Nazisusedsocialismasarusetogainpower,butonceinpowertheypurgedthesocialistswithintheirparty. The following quotes taken from Mein Kampf will illuminate the anticommunism, antiparliamentary democracyandthesocialDarwinismofHitler. Just as in 1918 we paid with our blood for the fact that in 1914 and 1915 we did not proceed to trampletheheadoftheMarxistserpentonceandforall,wewouldhavetopaymostcatastrophicallyif in the spring of 1923 we did not avail ourselves of the opportunity to halt the activity of the Marxist traitorsandmurdersofthenationforgood.[41] As regards the possibility of putting these ideas into practice, I beg you not to forget that the parliamentaryprincipleofdemocraticmajorityrulehasbynomeansalwaysdominatedmankind,but to the contrary is to be found only in brief periods of history, which are always epochs of decay of peoplesandstates.[42] Thebeststateconstitutionandstateformisthatwhich,withthemostunquestionedcertainty,raises thebestmindsinthenationalcommunitytoleadingpositionandleadinginfluence. Butasineconomiclife,theablemencannotbeappointedfromabove,butmuststrugglethroughfor themselves.[43] NofurtherelaborationontheanticommunistnatureoftheNazisisneededotherthantoremindthereader thatthecommunistswereHitlersmaintargetofrevengethroughoutthe1920s.Thesecondquotecertainlyis antiliberalasitshowsHitlerscontemptforthedemocraticprocess.ThelastquoterevealsHitlerasasocial Darwinist,ofwhichTurnermakesthepointinseveralplacesinhisbook.[44]CertainlysocialDarwinismruns countertotheaimsofsocialism,infactitistheantithesis.Itallowstheelitetogainfurtherpower;itwillingly discardsthepoorandtheweakasexpendables.Notewehavealreadyalludedtotheeuthanasiaformentallyill or deformed children that would be consistent with social Darwinism. The social Darwinism of Hitler then presentstherightwingers,manyofwhoaresocialDarwiniststhemselves,withareasonfortryingtodistance themselvesfromtheNazisandmotivationfortheirillfashionedattemptstolabeltheNazisassocialist. With the anticommunism stance and social Darwinism character of Hitler, it is not surprising that the fascists in America would come from the extreme right. This writer believes we were right in opposing communism.Buttowhatlengths?Aswithanythingelse,moderationisanadmirablequality;excessesofany naturearedamaging.ThewriterwouldnotlabelTrumanorEisenhowerasfascistfortheiranticommunism actions.ThewriterwouldlabelTailGunnerJoeasafascist.ThetypeofanticommunismofMcCarthyservedno otherpurposethantofurtherhispoliticalcareer.Heopenlyviolatedtherighttofreespeechandassemblyof hisvictims.Hisaimwastodestroythemwithoutanyregardfortheevidence.ThefullimpactofMcCarthywill becoveredinalaterchapter. ThesocialDarwinismasinitiatedbyReaganandhisattacksonthepoorandthedismantlingofthewelfare programledbyNewtGingrichwillalsobelabeledasanexampleofcreepingfascismandexploredfullylater. Throwingpeopleintothestreetsarbitrarilytofendforthemselvesisdestructive;itissocialDarwinismatits worst.Forcingthemtoacceptwagesbelowtheminimumwagelawisdenyingthemtheirequalrights,butit was precisely the economic woes of Germany that allowed the Nazis to rise to power. Currently America is enjoyinggoodeconomictimes,butwhentheeconomytakesaturntothesouth,thefullimpactofthelackofa socialsafetynetisgoingtobefelthard.WehaveallseenfartoomanyexamplesofhowtheRepublicansdeal with the poor and the weak in the 1980s. They were the Reaganites that you saw at almost any freeway entrance ramp, with signs bearing the words Homeless, Will Work for Food and the ones that lived in cardboardshantiesunderthebridges.ButsucharethevirtuesofthesocialDarwinist. The next trait of fascism, extreme exploitation is a direct result of one of the primary traits of fascism, extremenationalism.Theformofnationalismpromotedbyfascismnotonlyconcernsthestandingintheworld but also applies to the sacrifices that are expected of citizens. In short the fascist state reigns supreme, the individuals are subordinate to the state. Once again we can see immediately the extreme antiliberal philosophyoffascism.Thesubordinationofindividualstothestateistheantithesisofliberalism.Onceagain somequotesfromMeinKampfwillsuffice,asonlyafoolwoulddisputeit. Sinceforusthestateassuchistheonlyform,buttheessentialisitscontent,thenation,thepeople,it isclearthateverythingelsemustbesubordinatedtoitssovereigninterests.[45]

apeace,supportednotbythepalmbranchesoftearful,pacifistfemalemourners,butbasedonthe victoriousswordofamasterpeople,puttingtheworldintotheserviceofahigherculture.[46] Certainlyfromthosetwoquotestherecanbenoquestionofthesubordinationofindividuals,nortoanylimits shortofworlddominationbytheNazis.ItisoftenstatedthatHitlerleftaroadmaptohisfuturegoalsinMein Kampf;thereisnogreaterevidenceofthatthaninthelastquote.Howthendidherisetopower?Theproblem wasnobodywaslistening.Nobodychallengedhimonhisaggressiveviewstowardwar,oratbesttheybelieved thattheycouldcontrolorcontainhim.Onlylaterdidtheyfindouttheerrorofthatfalseassumption. This writer can find only two instances of this extreme exploitation in America. Thanks to the efforts of CBS60MinutesandEveningNewsthestorybrokeabouttheTomboftheUnknownSoldierandhowtheReagan White House pressured the military to find an unknown to bury on Memorial Day 1984. It turns out they deliberatelyburiedafallensoldierthatwasntsounknownduetothepressurecomingfromtheWhiteHouse. TheunknownwasMichaelBassie.Nowthismanhadgiveneverythingtohiscountryexceptforhisname.And the lowlife filth occupying the White House had that stripped from him so Reagan could have a photo op on Memorial Day in an election year. This writer can think of no other action that is more despicable. Its unforgivable.OfcourseReaganmadesurehewasthestarofthisphotoopandusedittopromoteandbuild supportforhisextremistmilitaryagenda. The second instance comes at the hands of Newt Gingrich and the Republicans of the 104th and 105th Congress.Theyhavestrippedtherightsofwelfarerecipients andrequiredthatthey participateinworkfare. Theproblemcomesinthatthesepoorsoulsarenotevenentitledtobepaidtheminimumwageortherightto unionize in some cases. In other words the Republicans answer to the poor is to work in perpetual slavery withnochanceofeverbreakingoutofpoverty. Butthiseventismuchmoredangerousandgoesmuchfurtherthanitappears.Ifthereaderhadreadthe preface in which creeping fascism was defined, he would note that the events may appear innocuous at the time of the event, but it was only afterwards that it could be seen as a dangerous step towards full blown fascism. Remember from the preface that Hitlers appointment as chancellor passed without much alarm, it wasmoreofanoneventatthetime.Hereisanidealexampleofjustsuchanevent.Thedangerhereliesinthe suspension of the constitutional equality under the eyes of the law. The Republicans have in effect created a subclassinwhichoneoftheveryfundamentaltenetsofourconstitution,equalundertheeyesofthelaw,was ignoredandthrownoutthewindow.Noristhistheonlyexampleofunequaltreatmentofthepooratthehands oftheRepublicans.Theyalsohaveadvocatedcutbacksinthebudgetforthepublicdefendersoffice.Yetthere hasbeennaryavoiceinprotest.TheRepublicanshavebeenverysuccessfulintheirpropagandaindemonizing thepoor.Thereseemstobeanalmostgutterlevelhatredofthepoorandanyaidtoassistthem.Insteadthe Republicans have adopted a mean spirited social Darwinist view rather than a compassionate helping hand towardsthepoor. Thisbringsustothetraitoftheopportunisticideologyoffascism.Itsperhapsoneofthemoreconfusing aspects of fascism. Mussolini appears to have been indeed a socialist before founding the fascist party. Mussolinilikewisewentfromapacifisttoarabidwarmonger.Clearlysuchdramaticchangesinideologycould onlybebasedinanopportunisticgrabforpower.Mussolinistartedsupportingasyndicalisteconomy,butby 1923withclearobjectionsfrombusinessleaders,heconcludedthePalazzoChigiPact.Thispactsmainintent wastosimplifybusinessrelationsbymakingthefasciststhesolerepresentativesoflabor.In1925thePalazzo Vidoni agreement was signed. This agreement made Rossonis union the sole representative of labor. It likewise prohibited the challenging of factory management. By the close of the year, the grateful employers federation publicly announced adherence to the fascist regime.[48] Such transformations illustrate the opportunistic ideology, or is it a lack of ideology, as well as further dispels the myth that fascism is another formofsocialism. Partoftheproblemwiththeeverchangingideologyoffascismarisesfromthedivided partythatwasmentionedearlier.StrasserwasasocialistanditseemsthatGoebbelswasa Marxist. Both were allowed almost free rein in promoting their own economic views, as longasitgatheredmoresupportorservedHitlerspurpose.Butoncetheirviewsfailedto serve Hitler, they were then browbeaten severely. An example of such reversal in party ideologyoftheNazisoccurredonFebruary14,1936.Priortothisdate,bothStrasserand Goebbels had approved of a plebiscite campaign to deprive former royalty of their possessions,ameasurethatwaspopularwiththecommoncitizens.OnthegivendateHitler summonedbothmentoameetinginBamberg.Beforethosegathered,Hitlerforcedbothto Newt Gingrich

capitulateandabandontheprogram.[49]SimilareventshavealreadybeengiveninwhichvariousNaziswere allowedtopromotesocialismineffortstoappeasethelowerclassestogaintheirsupport. Examples abound throughout the history of the Nazis where they adapted their ideology to suit the audience. In October 1932 Strasser announced a new program that was a stark reversal of the program the Nazis had advocated in July. Higher taxes on the rich had been replaced with a general reduction of taxes, insteadofpricecontrols,itcenteredonfreeingprices;insteadofprotectionism,tradepolicyexportandglobal tradewasnowpromoted.Likewisemuchoftheinflammatoryrhetorichadbeendropped.[50] Hitlerseemstohavesensedtheexplosivenatureofeconomicsandtriedtoavoidthesubjectbothpublicly andwithintheparty.Fromallindications,hewasdissatisfiedwiththepartyplanksoneconomicmatters.The onlyofficialstanceoneconomicmatterswasthe1920twentyfivepointprogram.However,heonlyreferredto this policy document disparagingly in Mein Kampf and distanced himself from the document.[51] Likewise Hitlerwouldnevertakeanaggressivestanceonminorissues,heplayedtohisaudiencetowintheirsupport. PerhapsthemostdramaticevidenceoftheopportunisticcharacteroftheNazisisillustratedbytheactions ofthirtyninebusinessmeninNovember1932.ThegroupcontainedsuchnotablesasKrupp,Thyssen,Bosch, Siemensandothers.InasignedlettertoHindenberg,theyurgedhimtoappointHitleraschancellor.Inessence they were placing a bet that the socialist ideology was a fraud and that once in power he would be a tool of capitalism.[52]ThisgrouphadpreviouslyopposedHitlerforthemostpart. TheonlyotherreversalinpolicythatcouldrivalthebetthattheleadersofbigbusinessmadewasHitlers writings. In the first book of Mein Kampf he argued that France was the sworn and greater enemy of Germany.However,inthesecondbookofMeinKampf,hereversedcourseandarguedthatRussiawasthe enemy, as opposed to the first book in which he proposed an alliance with Russia.[53] This then was a completechangeinhisforeignpolicy.Onecanonlyspeculateastothereasonsbehindsuchaswitch. ManywritershavetriedtolabeltheNazisassocialistsinaploytodistancethemselvesfromfascisttheory. Theyarequicktopointtothesyndicalismpolicyasproofofsocialistregulationofbusiness.Theyareinerror, of course. Syndicalism is neither left nor right in itself; it can be either depending upon the structure. Syndicalismwithlaborgroupsorconsumersdominatingtheissueswouldindeedbesocialisticinnature. On theotherhand,syndicalismwithonlyindustryorbusinessgroupsdominatingiscertainlyfromtherightwing of the political spectrum. The issuing of controls or goals over the production of war material by the government in a syndicalist system is neither left nor right, its simply selfpreservation. The goals and controls,includingthe4YearPlanissuedbyGoring,werenothingmorethangearingtheeconomyupforwar timeproduction.Inessencetheyweremerelyselfpreservationmeasures. SecondlytheywillpointtomanyofthepublicworksprojectsthatwereimplementedundertheNazisas examplesofsocialism:anexamplebeingtheconstructionoftheautobahn,aprojectthathadbeenplannedby previousgovernments,asweremanyofthepublicworkprojects.TheylikewiseforgetthattheNazistookover atthebottomofadepression;publicworkprojectswereenactednotonlyinGermany,butintheUSaswellas a means to end the depression. Many of those projects in the US were for the construction of useful infrastructuresuchasthebuildingofthehighschoolinNewUlm,MN.Othershadadefinitecommercialbentto them,suchastheconstructionofTimberlineLodgeonMountHood.Labelingtheconstructionofafacilityfora commercialbusinessassocialismissimplyfoolsfolly.Thesameappliestomanyofthepublicworksprojects thatwereimplementedundertheNazis. Labeling such programs as socialism would be the same as labeling the construction of the interstate highway system as socialism. If the Eisenhower administration has one shinning moment, it would be his support and urging for the construction of the freeway system. For those that are silly enough to label such work as socialism, let them be reminded that no other single event, other than the construction of the cross continentalrailroad,moreaidedthedevelopmentofbusiness.Todayitwouldbeinconceivabletoshipmaterial coast to coast without the interstate highway. Besides the obvious advantage to shippers, the interstate highwaysystemhasspawnedmanynewbusinesses.Thinkofthenumberofmotelsandhotels,aswellasthe tourist traps, service stations and others that have grown up along the freeway system. The same applies to Germanyandtheautobahn. Finally the same writers that label fascism as socialism would like their readers to believe that these government regulations and bureaucratic offices held ultimate power. Failure to comply would result in the ownersbeingshot.Nothingcouldbefurtherfromthetruth.TheNazisinlargepartlivedinfearoftheleaders of big business; they were aware that they had no comprehensive economic plan and would defer to the judgmentofthebusinessleaders.

This point can be driven home with one simple example. Goring was one of the Nazis that had little economicknowledge,butharboredsomeofthemoreradicaleconomicideasandwasfondofusingregulatory offices.Goringtriedfirsttopersuadethesteelindustry,boththesmeltersandminers,touselowgradeGerman oreasopposedtothehighgradeSwedishore.ImportationoforefromSwedenwoulduseuppreciousforeign currencyaswellasbeingalessreliablesourceineventofwar.TheinvasionsofDenmarkandNorwaywere conducted solely to protect the Nazi shipping routes for the Swedish ore. Most of the industrialists politely refusedtherequest;evenunderthreatsofarrestforsabotage,theystilldeclined.[54]Nonewerearrestedfor refusal,insteadGoringformedtheHermanGoringWorkstotakeonthetask.Bythetimeoftheoutbreakofthe war,ithadevolvedtobethelargestcompanyinGermany. FarbenisanotherexampleoftheNazisbowingtotheexpertiseofleadingcorporations.Withtheadventof the first 4Year Plan they realized they needed the cooperation of their leadership in order to achieve self sufficiencyinaseriesofrawmaterialsandfinishedproducts,mostofwhichwereitemsthatwouldbecrucial towartimeproduction.Bytheendofthewar,Farbenhadaseriesoffactoriesaroundconcentrationcampsand were major users of slave labor, along with Krupp and many other corporations. In short they were a major propfortheNazisevenbeforethestartofthewar. ButthemostdamningevidenceoftheNazisunbridledcorporatismwasevidentshortly after passage of the Enabling Act. That would be the appointment of Hjalmar Schacht as president of the Reichsbank. Schacht was a brilliant financier who helped negotiate the Dawes Plan and was largely given credit for stabilizing the currency in 1923; he also detesteddemocracyandparliamentarianism.HisfirstofficialactwasthecreationofMetall Forschungsgesellschaft A.G. (Mefo), a dummy corporation of four armament firms. The stateassumedtheliabilityfortheirdebts.TheMefobillswerenotunlikepromissorynotes; theywereissuedtogovernmentcontractorsandcouldbeextendedtofiveyears.[55]Such favoritism of business is certainly not socialism; today in America such corporate aid is Hjalmar Schacht labeled as corporate welfare. The reader should note the similarity here not only to the present corporate welfare thats being doled out, but also to Eisenhowers warning of the militaryindustrial complex.TheAmericanmilitaryindustrialcomplexdidntneedtoinventanewplan;theyweresimplyfreeto followtheexampletheNazisused.Infactfascismisinseparablefromcorporatism;yousimplycannothavea fascistgovernmentwithoutcorporationsandacapitalisticeconomy. Schachtwaslaterappointedtoministerofeconomicsin1934,apostheretaineduntilheresignedin1937 overpolicydisputes.HewasnotanantiSemiticandwasconsciousofthenegativeaspectsofthetakeoverof Jewish business on both the economy and the world opinion. By 1936 he was advocating slowing down the rearmamentprogram,fearingthereturnofinflation.[56]Thereadershouldhaveheardbellsringingwhenhe readthewordsthereturnofinflation.ThatshortphrasedispenseswiththemythsthattheNazismaintained strictcontrolofcorporationsandthepricesofgoodsinshortorder.Ineffectsuchcontrolswerenonexistent.It shouldalsobepointedoutherethattheeconomyatthistimehadtakenonconsiderableshadesofaconsumer economy. It has already been stated that Italy used their form of syndicalism to eliminate labor unions; the Nazis followed a similar path. The workers benefitted little from this unbridled corporatism. Unemployment went fromanofficialfigureofsixmillionunemployedin1933to2.7millionin1937andbythetimeoftheoutbreak ofwar,therewasaseriousshortageofworkers.Butgrowthinwageswasfarlessspectacular;realwagesrose only sparingly. The index of wages rose from 92.5 in 1933 to 103 in 1937, an increase of a meager eleven percent.[57] Much of the increase in wages was achieved only from working longer hours. The only real increasesintheplightoftheworkerscamewithmoreunpaidleave.Manyoftheotherbenefitsproducedno realbenefitstotheworker,suchasthefactorybeautificationprogram.Thereadershouldtakenotehereofthe plight of the workers; in a later chapter the plight of the American worker in the 1980s will be explored in depth.Thesimilaritiesarestrikingandundeniable. From looking at the philosophers of fascism, it was revealed that fascism was a reactionary movement. WhatthenwasthefascistreactingtothatledtotheriseofMussoliniandHitler?Manypeoplerespondingto the question would simply answer the treaty of Versailles. But such an answer is only partially correct. It doesntaccountforthewidespreadriseoffascisminmanyEuropeancountriesfollowingWWI.Infactduring the period between the two world wars, every government from the Rhine to the Pacific underwent drastic changes.Inmanyofthosefascismhadamplesupport,butintheendwasrejected.Someoftheproblemscanbe laid to the beginning dissolution of the British Empire and the arbitrary way in which maps were redrawn

followingWWI,withoutregardtoethnicornaturalbarriers.Anexamplewouldbethecobbledmessofethnic groupsthatformedtheformerrepublicofYugoslavia,anareathatremainsahotspottoday. BritainandtheUnitedStateswereabouttheonlytwogovernmentsthatdidnotundergoamajorchange duringtheperiodbetweenthewars.However,neitherwasimmunetotheriseoffascism.IntheUStheperiod betweenthewarssawtheriseofagreatmanyfascistgroupsandgroupscloselyalignedwiththefascists.The GermanBund,theSilverShirtsandthemothersmovementwereallalignedcloselywithfascism.Itwasalso thisperiodthatsawthegreatestmembershipintheKlan. TheUnitedStatesavoidedfullblownfascismbyessentiallyadoptingfascistmethodsonamilderscale.This wasashamefulperiodinthehistoryofAmerica.TheinfamousPalmerraidsroundedupthosewithcommunist connections.TheIWWwasharassedconstantlybyHooverandtheFBI.Inshortonlythosewithnonapproved politicalbeliefswouldbeprosecuted.Thissuppressionoflibertyhadactuallybegunaround1900.Attheturn of the century, both conservative and liberal elements combined to pass a blizzard of new laws. This effort, aimedatcurbinglawlessness,quicklybecamedominatedbyconservativeelementsandevolvedintoatoolfor therightwingfortheremainderofthecentury.AsheadoftheFBI,Hooverquicklytargetedtheleadersofthe leftforprosecution,ignoringthecriminalactionsofthehardrightgroups.ThislefttheUnitedStateswithout anynoticeableleftwingcomparedtotherestoftheindustrialworldaslateas1999.Inalaterchapterwewill detailmanyoftheshamefulactsoccurringinthistimeperiod.Fornowthereaderwillhavetocontenthimself withthefewexamplesprovidedbelow. Perhaps,oneofthefirstandmostnotableeventswasthetrialofNicola Sacco and Bartolomeo Vanzetti, two immigrants charged with murder in Massachusetts.Theywerefoundguilty,moreontheirpoliticalbeliefsthan on evidence. They were anarchists, atheists and reportedly draft dodgers, beliefs that threatened the industrialists of the time.[64] Both were executed, after considerable protest. Their trial set a dangerous standard thatpeoplecouldbeprosecutedfortheirpoliticalbeliefs.Theinclusionof thistrialhereistoserveasareminderofanewproblemthatisemerging to confront the hard right, jury nullification. Today there is considerable Sacco and Vanzetti debatefrombothsidesofthepoliticalspectrumonjurynullificationarisingindeathpenaltyanddrugcases.It bears close watching. If the public becomes too polarized, it could spell the end to the trial by jury system which has served admirably for over 200 years. On the other hand, the intimidation of jury members with threatenedprosecutionoractualprosecutionisanaffronttotheConstitutionandthejurysystem. Various members of the right wing are now using this as an issue in another attempt to polarize the electoratefortheirownselfishpurposes.Thesemembersoftherightwingarepromotingasystemofjustice backed by mob or vigilante justice. Essentially its a system backed by violence that is not unlike the tactics usedbythePosseComitatus,theFreemenorvariousmilitiastocorruptthejusticesystem. ThefirstexampleofpoliticalrepressioncameinMinnesota,thethenRepublicanGovernorBurnquistused the newly created Minnesota Commission of Public Safety to suspend New Ulms Mayor Fritsche and City Attorney Pfaender for their pacifist views after war had been declared on Germany in 1917. The following quotedetailssomeoftheshamefulactionstakenbythecommissionanditsconnectiontothehardright. In April 1917, soon after America declared war on Germany, the Minnesota Legislature, following ferocious debate, created the Minnesota Commission of Public Safety. This remarkable body, chaired and appointed by the governor, was given all necessary power to maintain order and enhance Minnesotascontributiontothewareffort. Technicallylimitedbythestateandfederalconstitutions,thecommissionessentiallywieldedallthe authorityofstategovernmentduringthe18monthsofitsactiveexistence. ThecommissioncametobedominatedbyrepresentativesoftheTwinCitiesbusinesscommunity.It useditssweepingauthoritywithgusto,notonlytorootoutdisloyalty,buttocombatlaborunionism andagrarianactivismaswell. ThecommissiondispatcheddetectivesthroughoutMinnesotatoinvestigatepeopleandorganizations suspected of disloyalty. It regulated food prices and the liquor trade, imposing prohibition in some parts of the state. It banned union organizing and intervened on the side of management in a bitter TwinCitiesstreetcarstrike.ItcreatedaHomeGuardofsome8,000troopstobackupitsdecrees.

ThecommissionservedasavirtualcampaigncommitteeforRepublicanGovernorJosephBurnquistin his 1918 reelection bid. It turned a blind eye toward frequent mob harassment of his opponents. It interrogatedandintimidatedMinnesotanswhodeclinedtopurchaseLibertyBondstofinancethewar effort.[63] Nor were such actions confined to just Minnesota, many states set up similar commissions. State sponsored violenceagainstleadersfromtheleftwascommonplace.OnegroupthatsufferedimmeasurablywastheIWW, the Wobblies. On November 5, 1916, Washington State suffered its bloodiest labor battle for all time. The resultingcarnagebetweenalocalsheriffandtheWobbliesleftsevendeadandoverfiftywoundedinthecityof Everett.[65] All three of these events illustrate that the United States repressed those with radical ideas in the time period of WWI and immediately thereafter. Pacifist, labor leaders, and leftist political leaders were all prosecutedwithequalzeal.RememberthiswasthetimeperiodoftheRosewoodincidentandotheratrocities. Astheexampleshint,theprosecutionwasledbythehardrightandbusinessleaders.Ineffectthestatesown suppressionoflibertyfailedtoprovideanenvironmentconducivetotheriseoffascism.Butitwasaterrible pricetopayandnotatallnecessary.Allittakestodefeatfascismisaunitedfrontorastrongleader. But the real answer to the question is that fascism following WWI was a reaction to the Bolshevik revolution and the rise of liberal ideals. Up until the Russian revolution, the only economic system was capitalism.Communismwasanewrevolutionarysystem.Itthreatenedthepowerelitedirectlyandgaveway toarisenotonlyincommunism,butsocialismandliberalismaswell.Itwasnoaccidentthatfascismarosefirst in Italy, where in the period of 19191922 socialists ruled in many localities. Here fascism arose in the countrysidewhereoldpracticessuchassharecroppingweregivingwaytonewmethods.In1920thelargest strike in Italian agriculture ever was settled when the landowners capitulated. Elsewhere unions were wringingoutconcessionsfromtheownersthroughstrikesandboycotts.[58] The real appeal of European fascism was the protection it afforded against working class movements, socialism and communism.[59] Hobsbawm states it even more forcefully in that without the October revolutionandLeninismtherewouldhavebeennoneedforfascism,forupuntilthattimethedemagogicright, althoughpoliticallyactiveandnoisyinmanycountries,hadbeenkeptincheck.[60]TheentireNazimovement was a reactionary movement. The reaction to the Treaty of Versailles is well known and needs no further comment,asistheoppositionoffascismtoliberalism,socialismandcommunism.Ratherthefollowingquote willshowhowcompletethereactionwastotheeventsofthetime. TodayChristiansstandattheheadofGermany.IpledgethatIneverwilltiemyselftopartieswho wanttodestroyChristianity.WewanttofillourcultureagainwiththeChristianspirit.Wewantto burnoutalltherecentimmoraldevelopmentsinliterature,inthetheater,andinthepressinshort, wewanttoburnoutthepoisonofimmoralitywhichhasenteredintoourwholelifeandcultureasa resultofliberalexcessduringthepastfewyears.[61] The quote above was taken from a speech delivered by Hitler. It provides the illustration that the Nazis movementwascompletelyareactionarymovement,reactingnotonlytoglobalpowerpoliticsandtheriseof theleft,butalsotothechangesinartsandcultureofthetime.Italsoprovidesthelinktodemonstratethat todays hard right movement in the US is equally reactionary, in particular the element of the socalled religiousright.CompareitwiththequotebyPatRobertsonbelow. The Constitution of the United States, for instance, is a marvelous document for selfgovernment by Christianpeople.ButtheminuteyouturnthedocumentintothehandsofnonChristianandatheistic people they can use it to destroy the very foundation of our society.Pat Robertson (The 700 Club, December30,1981)[62] ThatshouldleavenoquestioninthemindofthereaderthatRobertsonandHitlerareideologicalsoulmates. ApparentlyRobertsonisundertheimpressionthattheConstitutionappliesonlytothosehechoosesandisnull andvoidfortherestofus.Hitlerheldasimilarcontemptfordemocracy.Inalaterchapter,thereactionofthe current fascists in the US to the sixties will be explored in detail. The author regrets due to space considerations not being able to include such a chapter for the Nazis, but the point that the Nazis were

Consider,forinstance,theNazishowgalleryofDecadentArt,featuringmanyoftheartistsworkinginthenewstylesofthe20thcentury. Thiswascontrastedwiththegreatartoflatenineteenthcenturyacademicpictorialism.Mark

reactionaryhasbeenestablishedbeyondanydoubt.Thereactionwasnotjustconfinedtotheglobalpolitical sceneoreconomicconditions,butextendedintotheveryrootsoftheculture. Startingaround1980fascismreareditsuglyheadglobally.Unliketheriseoffascisminthe1920s,thistime the Reagan administration embraced it. In later chapters it will be shown how the policies of the Reagan administration contributed to the rise of fascism, if not openly supported various fascist groups. The administration openly promoted class warfare, allowed the LaRouchians access to security and intelligence agencies, filled the EPA with Coors lackeys and openly supported none but the elite. In essence the Reagan administrationwastheAmericanequivalentofthepassageoftheEnablingAct. ThereisnoneedtoexpandontheviolentbehavioroftheNazisorfascists,asthereisnodisputeoftheir long history of violence. Instead the violence of various groups in the United States will be explored. Many readerswillimmediatelythinkoftheviolencethataroseinthe60sduringthewarprotests.Infactthatisthe greatillusionofthemedia.Thetruthisthatlittleviolencewasdirectlyattributedtowarprotesters;infactin thechapteronthe60sitwillbeshownthatmuchoftheviolencethatdidcomeoutofthewarprotestswasthe workoftheFBI. Therealstoryof violenceinthe 60swastheviolenceinflicteduponthecivilrightsworkersbytheKlan. Theearlypartofthe60swasmarredbyviolenceinspiredbytheKlanandracialhatredofrightwinggroups. RememberEisenhowerhadtousetheNationalGuardtointegratetheLittleRockschoolsystem.Kennedyhad tousefederalmarshalstointegrateOldMiss.WhentheSupremeCourtorderedthatbussingwastobeuseasa tool for integration, the violence spread nationally. The Klan burnt school busses in Michigan to prevent integration. Since1980rightwinggroupssuchastheOrder,whichmurderedtheDenvertalkshowhostAlanBergon June18,1984,likewisehavedominatedtheviolence.TheleaderoftheOrderwaskilledinashootoutwithlaw enforcement.Anotherrightwinggroup,thePosseComitatus,becameahouseholdwordonlyaftertheGordon KahlshootoutwithlawenforcementinMedina,NorthDakotaonFebruary13,1983.Andofcoursetherewas thebombingofOklahomafederalbuildingonApril19,1995bytherightwingerTimothyMcVeigh.Perhapsthe greatest widespread use of violence since the Klan has been the bombing and violence directed against abortionclinicsbymembersofthereligiousright. ViolencehasbeenthehallmarkofthehardrightinAmericadatingbackatleastasfarastheKnowNothing Partyinthe1800sandtheirhatredofCatholics.ItwasbusinessleadersthathiredPinkertonstomurderunion organizers in earlier times. In a later chapter details of the past acts of fascism will be explored. Yet there is relativelylittleinthewaytosupportthecontentionthatleftwinggroupswereequallyviolent.Yes,groupslike theWeathermenwereviolent,butthegroupwasnevermorethanasmallfringegroup.Itsextremelysmallsize limitedtheextentofitsviolence.Oneofthereasonsforthelackofwidespreadviolencefromleftistgroupshas alreadybeenmentioned,thesuppressionofleftwinggroupsbytheFBI. Thelasttwotraitsoffascismwillbeexploredtogether,astheyarerelatedbyanunderlyinguseofsymbols andtheinseparablenatureofcultsandreligion.ThereisnodoubtthatbothHitlerandMussoliniwereineffect leaders of cults. Their extremist views would rule out a major following otherwise. In fact both promoted imagesconsistentwithcults.Bothchosetousepropagandatopromotelargerthanlifeimagesofthemselves. Both Hitler and Mussolini were Catholics; neither appeared to be particularly active members of the church. HitlerreferredtoChristianitythroughoutMeinKampfasalreadyshownbyquotesofwhichafewmorewill beincludedhere. Theswordwillbecomeourplow,andfromthetearsofwarthedailybreadoffuturegenerationswill grow. The more the linguistic Babel corroded and disorganized parliament, the closer drew the inevitable hourofthedisintegrationofthisBabylonianEmpireandwithit,thehouroffreedomformyGerman Austrianpeople. theLordsgracesmiledonhisungratefulchildren.

It also could be seen as the fulfillment of the Samuel P. Huntingtons controversial paper for the Trilateral Commission, The Crisis of Democracy, in which it was proposed that then current social unrest stemmed from too much democracy, indicating a need for lower educationstandardsandcurtailedvotingaccess,amongothermeasures.Mark

Officially the O e Nazis were e a Christian n group, if one o can assig gn a religion n to the gro oup by the public p p policiesthey enact.Inthiscasetheas ssignmentis basedonthe efollowingp prayerthatth heNazisrequired t toberecited inallpublicschools. Almighty Go od, dear hea avenly Father r, in Thy nam me let us no ow, in pious spirit, begin n our instruction. E Enlightenus, ,teachusalltruth,streng gthenusina allthatisgoo od,leadusn notintotemp ptation,deliv verus f fromallevil t,asgoodhu umanbeings, ,wemayfait thfullyperformourdutie esandthereb by,in inorderthat t timeandeter rnity,bemad detrulyhapp py.Amen.[67] Itsa alsotruethat ttheNazisd dabbledinm mysticismas well,certain nlysomeoft thephilosoph herswerepa antheists. Butw whatreallyu underliesbot ththereligio onandmysti icismofthe Nazisisthe symbolismb buriedunder rneath.In fact one follower r of fascism believed tha at the masses were unab ble to unders stand anythi ing but mere e slogans. mMeinKam mpfthefollow wingquotec concernsthesymbolismh hiddenbehin ndtheNazifl lag. From Not only tha at the uniqu ue colors, wh hich all of us s so passion nately love and which on nce won so much m h honorforthe eGermanpeo ople,attesto ourveneratio onforthepast;theywere ealsothebestembodime entof t themovemen ntswill.AsN NationalSoci ialists,weseeourprogra aminourflag g.Inredwes seethesocialidea o ofthemovem ment,inwhit tethenation nalisticidea, intheswast tikathemissionofthestruggleforvi ictory o oftheAryan man,andby ythesameto oken,thevict toryoftheid deaofcreativ vework,whic chassuchal lways h hasbeenand dalwayswillbeantiSemitic.[66] Atfir rstinthequo oteaboveHitlerisreferringtotheold dflagofGerm many.Thech hoiceofredw wasbasedon nstealing from m the commu unists and was w chosen de eliberately to enflame th he Marxists. Throughout t Mein Kamp pf Hitler refer rredtotheva alueofpropa agandaandm madeextensi iveuseofsym mbolstocon nveyasubtlemessageofh hatred. O Once again the t similarity y to the righ ht wing in America A is se een. The Rep publicans ha ave introduc ced a flag desecration ame endment, ne ever mind th hat it violat tes the right t to free sp peech, their symbolism must be ected. But ev ven more re evealing was s the letter Newt N Gingric ch distribute ed to membe ers of GOPAC. In this prote lettermembersw weretouset thefollowing gwordstoim mpartanega ativeimaget totheiroppo onents:decay y,failure, onized,welfa are,corrupt, greedandin ntolerant.Lik kewisethef followingwo ordswereto imparta sick, liberal,unio tiveimageto othemselves:share,legac cy,control,tr ruth,andcou urage.[68] posit C Cults are inh herently fasc cist in nature e. The leade er demands total submersion into th he cult. America tod day has seen n far too ma any examples of cults an nd cult beha avior. A recen nt mple would be the Waco incident of o cult behav vior that en nded badly. But there ar re exam several right win ng groups th hat do exhib bit cult behav vior besides the religiou us groups; th he ouchians,ma anyofthemilitiasandthe eOrderwouldallqualify yascults.Ina additionmuc ch LaRo of th he hard righ ht inside the Republican Party has taken t on a cultlike c beh havior in the eir Matt Salmon idolizing Reagan n. The 105th Congress re enamed the Washington n airport afte er him. In th he sCongressm manMattSalm monofArizon nahasintrod ducedabillt todefaceMt.Rushmoreb byadding presentCongress gansimaget tothemonum ment.[69] Reag B Before concluding this chapter, a br rief summary y is in order r. It has been shown bey yond any re easonable doub bt that Hitle er and the Nazis N were right wing extremists, besides des scribed as so ocial Darwin nists, the antit thesis of soc cialism. It wa as shown th hat the Nazis s were best described by y the syndic calist model and that synd dicalism is in nherently ne either sociali istic nor cap pitalistic; syn ndicalism ca an be either depending upon the make eup.TheNaz zisweredefi initelycapita alistsinthat therewasnoinputfrom mlabor;allin nputwasreservedfor theindustrialist.Furtheritw wasshownthattheindust trialistsopen nlydefiedNa azidesiresinthecaseoft theuseof Itwasalsoshownthatm manyoftheb businessesth hatweregov vernmentow wnedwereta akenover lowgradeores.I hegovernme entpriortot theNazis,som medatingallthewayfro omthemona archy.Likew wiseitwassh hownthat byth many y of the Naz zi programs would be cl lassified as corporate c we elfare today. And it was s shown that t the real powe erbehindtheNazimovementwasth hetopelite.T Thisshouldb besufficientf foranyoneto odispelthem myththat theN Naziswereso ocialist,when ninfactthey ywerecapita alisticextrem mists. In defining fascism thr ree traits stand above all others, , totalitarian nism, nation nalism and extreme factonecann nothavefasc cismwithout tcorporatism m.Othertrai itsoffascism m,suchasde estructive corporatism.Inf sionismandt theuseofviolence,ares secondary.A Andasfascist tideologyev volvedinthe laterhalfof fthe20th divis centu ury,ahappy yfacewaspu utonfascism mbyitsleade ersastheyd downplayedt theviolence andracism.Thiscan be se een best in the t far right wing extrem mist groups currently active in the United U States s. A later cha apter will discu ussthefascis strootsofth hesefarrigh htgroupsand dinanotherchapterpar rallelswillbe edrawnbetw weenthe

currentRepu c ublicanagend daandtherh hetoricofthe eproNazigr roupsofthe3 30s.Inessen ncetheparallelsaremore e a arestatemen ntofpastproNazirhetoricthanasim mpleparallel. Additiona allythereiso onefactthatabsolutelyp placestheNa azisandFascismintheex xtremerightwingportion n o ofthepolitica alspectrumandnotthel left.Nooned disputesthat tacommunis strevolution ndoesntatta acktheruling g e elite of a cou untry. Socialism and libe eralism both h in a sense attack the same s ruling elite, and th he right wing g e extremistsm makethatclai im,althoughbothmerely yseekmetho odstoeaseth heburdenan ndallowthel lowerclasses s t prosper rather to r than attacking a the elite. The Nazis on th he other han nd did not attack a the ru uling elite o of G Germany;the erichindust trialistswere eallowedto continuethe eirways,easedbylawst thattheNazisenactedfor r t their benefit. . Likewise, the nobility of o Germany was support ted by the Nazis. N In short the Nazis adopted the e r rulingelitein nGermanya andsupporte edthem,the exactoppositeofwhata aleftleaning gpoliticalide eologywould d s support. roof of the Nazi N support t for the rul ling elite tha an looking at t who There is no better pr s supportedHi itlerinthe1 1930sinAme erica.Grante edmanylow werclasspeop plewereinv volved in the proH Hitler movem ment, just as a in Germa any. But lik ke Germany, , it was the e rich s that funded d these grou ups. Hearst ordered o his newspapers n to print pro oNazi industrialists a articles; in fa act he had th hem print th he Nazi propaganda directly from Go oebbels. Irn ne du P Pontfunded severalprofascistgroup ps.HenryFo ordwaswell knownforh hispraiseof Hitler a and funded many proN Nazis in the 30s. Andre ew Mellon and John D. Rockefeller were s supporterso fHitleraswell.Nooneis sfoolishenoughtoargue ethatthesem menwereno otpart Henry Ford o the ruling of g elite or rich h industriali ists in America at the time. In fact support s for Hitler a amongtheric chindustrial listswasram mpant;thede etailsofthiss supportwillfollowinlate erchapters. Theconti inuedpropagationofsuc chnonsense ebythepres sentrightwingisnothingshortofpr ropaganda;i it f fitscloselyw withtheNazis suseofprop pagandaand thesymbolismproposed dbyGingrich handhisneg gativewords s, a andwillnotc changetheh historyofthe erightwings supportofth heNazis.Like ewise,throug ghtheuseof fexamples,i it w shown that was t the pres sent right wi ing in Ameri ica uses the same tactics s that the Na azis used eff fectively. The e r remainderof fthebookw willlookatho owcreeping fascismhas madeuseof fthetraitsli istedinthis chapterunti il w wenowarea asocietyinw whichcorporationshavem morerightst thanindividu uals.

N Notes
[1] [2] [3] [4] [5] http:// /www.cuttin ngedge.org/n news/n1124. .cfm WhyA AmericansH HatePolitics, E.J.Dionne,Touchstone,1991,p152 2154. Thom masJefferson:InhisOwnWords,Mau ureenHarrison&SteveG Gilbert,Barne es&Noble,1 1996,p369. http:// /www.friesia an.com/arthur.htm http:// /www.miam mi.edu/phi/sc chopnh.htm http:// /members.ao ol.com/KathorenaE/priv vate/philo/Nietz/nietz.ht tml http:// /userzweb.lightspeed.net/~tameri/n nietz.html http:// /users.aol.co om/Irdetrigen/index4.htm ml http:// /www.us.itd.umich.edu/~alexboko/z zar/ http:// /www.pitt.ed du/~wbeurr ry/nietzsche.html http:// /www.ewu.e edu/~millerj j/nietzsche.in ndex.html http:// /www.kirjas sto.sci.fi/berg gson.htm Himm mler,PeterP Padfield,MJFbooks,1990,p260. MeinKampf,Ado olfHitler,Hou ughtonMiffli in,1971,p39 94. 25. MeinKampf,p32 Lottre enouncesWh hiteRacialistGroupHepr raisedin199 92,ThomasE Edsell,Washi ingtonPost,D December 16,199 98. http:// /www.cofcc.org/ Thirty yDays,HenryAshbyTur rner,AddisonWelsey,19 996,p5. Thirty yDays,p915. Thirty yDays,p16 64. MeinKampf,p64 45646. MeinKampf,p21 18. Adolf f Hitler,RobertPayne,Ba arnes&Nobl le,1995,p21 13. Adolf f Hitler,p23 37.

[6] [7] [8] [9] [ [10] [11] [ [ [12] [ [13] [ [14] [ [15] [ [16] [ [17] [ [18]

[19] [20] [21] [22] [23] [24] [25] [26] [27] [28] [29] [30] [31] [32] [33] [34] [35] [36] [37] [38] [39] [40] [41] [42] [43] [44] [45] [46] [47] [48] [49] [50] [51] [52] [53] [54] [55] [56] [57] [58] [59] [60] [61] [62] [63] [64] [65] [66] [67] [68] [69] [70]

WhoFinancedHitler,JamesPool,PocketBooks,1997,p11. WhoFinancedHitler,p45. WhoFinancedHitler,p83. USFirmsConnectionstoNazisDetailed,Reuters,January14,1999.AppearedinBostonGlobe ofsame date. GermanBigBusinessandtheRiseofHitler,HenryAshbyTurner,OxfordUniversityPress,1985. GermanBigBusiness,p151152. GermanBigBusiness,p198200. GermanBigBusiness,p159. TradingwiththeEnemy,CharlesHigham,Barnes&Noble,1983,p131132. HitlerandHisSecretPartners,JamesPool,PocketBooks,1997,p5253. TheRiseandFalloftheThirdReich,WilliamSchirer,Fawcett,1992,p202. TheRiseandFall,p203. http://www.nizkor.org/hweb/imt/nca/nca021613index.html http://www.nizkor.org/hweb/imt/nca/ WhatRealHateSpeechSoundsLike,JeffJacony,BostonGlobe,November2,1998. http://www.tialliance.org/tia/page4.htm ATrialofAllegedHatetoBegininTexas,APwire,BostonGlobe,January24,1999. MinorityVoterIntimidationBecomesElectionEveIssue,APwire,November3,1998. QuiteanOddCoupletoSitinJudgment,JimDwyer,NewYorkDailyNews,January7,1999. RNCChairmanUrgesPartyMembertoLeaveConservativeGroup,GlenJohnson,APwire,BostonGlobe, January19,1999. MeinKampf,p248. http://www.fair.org/current/buchananbigot.html MeinKampf,p678. MeinKampf,p651. MeinKampf,p449. BigBusiness MeinKampf,p575. MeinKampf,p396. Fascism,RogerEatwell,Penguin,1995,p149. Fascism,p77. TheRiseandFall,p181. BigBusiness,p288. BigBusiness,p81. Hitler,JohnToland,Doubleday,1976,p276. Hitler,p221. Fascism,p156. Hitler,p308. Fascism,p155. Fascism,p160. Fascism,p5354. TheAgeofExtremes,EricHobsbawm,VintageBooks,1996,p175. TheAgeofExtremes,p124. http://www.isrp.org/ http://www.tialliance.org/tia/page6.htm http://www.pioneerplanet.com/archive/cent/dox/cent13.htm http://www.english.upenn.edu/~afries/88/sacvan.html http://www.ac.wwu.edu/~n9517146/everettmassacre.html MeinKampf,p498499. http://w3.trib.com/FACT/1st.religion.alert.html http://www.fair.org/extra/9502/languagecontrol.html ReaganWantedonMt.Rushmore,ReuterswireappearingintheFebruary2,1999BostonGlobe. TheRoadToSerfdom,F.A.Hayek,UniversityofChicagoPress,1994,FiftiethAnniversaryEdition.

[71] [72] [73] [74] [75]

TheRoadtoSerfdom,p52. TheRoadtoSerfdom,p44. FascismandBigBusiness,DanielGuerin,Pathfinder,1973,p208213. TimeBomb,E.A.Piller,ArcoPublishing,1945,p1314. SouthernExposure,StetsonKennedy,Doubleday,1946,p189.

CHAPTER 2: CORPORATE LAW: A HISTORY

ETSBEGINTHISCHAPTERwithacoupleofitemsfromtonightsnews.Firstanothertwentyninedeaths havebeenattributedtoFirestonetires.Inparticularthesedeathsarelinkedtotiresthatthegovernment wanted to include in the first recall, but relented under assurances and pressure from corporate management.Theseconditemonthenewswastheshortage of electriccapacityin California.Californiahad just deregulated the electric utilities this year and consumers bills skyrocketed. People have been asked in CaliforniatoturnoffthelightsontheChristmasdecorationsorpossiblyfaceablackout.However,therewas moretothestory;itseemsthattheshortageisatleastpartiallyselfmadebytheutilitiesthemselves. Intheearly1990s,thelocalmediahereinPortland,Oregoncarriedseveralstoriesaboutapoorladthat had developed leukemia and without a life saving bone marrow transplant would die. The familys health insurancerefusedtopayforthetransplant.ThefamilywasgivenaquoteastothecostbyaSeattlehospital. Thefamilywasfortunateenoughtoraisetherequiredamountthroughcommunitycarwashesandbakesales andpromptlyreturnedtotheSeattlehospitalseekingtreatmentfortheirson.However,evenwithacertified check for the amount they had been quoted, the hospital refused saying that the cost of such a transplant operation was almost double the price previously quoted. Dejected the family grimly returned home to Portland.Thelocalmediathenpickedthestoryupasacausecelebre.Thecommunitywasoutragedandwithin twoweeks,theSeattlehospitalrelentedtodothetransplantfortheoriginalprice.Inshortthehospitalwasnot basingthecostofthetransplantonactualcost;ratheritwastryingtobasethecostonwhateverdollarfigure theycouldextractfromthatfamily. Nor is this the only case of such price gouging, in the mid1990s it was reported that the supply of interferonwasbeinghoardedbytheproducersinanattempttodriveuptheprice.AftertheValdezcrackedup, alloftheoilcompaniesraisedtheirpricesbyathirdagainclaimingashortageofcrude. InKentucky,amineexplosionkilledsevenminers,thecorporationwascitedforgrossviolationsofsafety regulations;nofanstodrawoutmethanegaswereevenpresent.Manyofthewidowsofthisexplosionended uponwelfarewhentheirhusbandswerekilled.Over6,000peopleannually,orroughly17aday,arekilledon the job, yet we never hear of an operating officer being brought to trial for murder or manslaughter. That numberomitsthethousandsthathavediedasadirectresultofexposuretotoxicsubstancesordiseasecausing agentsintheworkplace. Itsnowcommonplacetohearonthenewsofmanagersalteringemployeestimecards,requiringthemto workafterpunchingthemout,ortohearofyetanothersweatshopinoperation,notinathirdworldbanana republic,butinourownlargecities,evenwhereemployeeswereheldasvirtualslaves. Corporatewelfarenowtotalsover$167billiondollarsannually.Fortheaveragetaxpayerthatmeansheis payingout$1400ayearintaxestosupportcorporations.Meanwhilesocialwelfarecostsarelessthanathird ofthecostofcorporatewelfare. By 1990, ten corporations accounted for 22 percent of all profits in the United States. Only 400 corporationscontrolled80percentofallcapitalistassetsinthenonsocialistworld.FortynineAmericanbanks holdcontrollinginterestin500largecorporations.Tencorporationsownthe3largesttelevisionnetworksand 62networks. Are these crimes by corporate America just another product of the greed and immorality of the Reagan administrationanditsagendaoffreeenterprise?Orarethesesymptomsofamuchdeeperproblem?From thefirstchapter,itshouldbereadilyapparentthatfascismwasatopdownrevolutionoftheelite.Itwasthe largeindustrialiststhatbroughtHitlertopowerinabackroomdeal,almostanexactparalleltothecandidacy ofGeorgeW.Bushin2000andthespecialinterestmoneybehindhim. Before looking at fascism within the United States, an understanding of corporations and how they have evolved to become a menace to our freedoms is needed. Make no mistake that the danger posed by corporations and the almost inherent accompanying fascism poses the greatest threat to the liberty that anyone reading this will face in their lifetime. However, most Americans understand little about how corporations became so powerful. They are largely unaware of the past restrictions on corporations that servedthenationingoodstead.Thischapterwilltakeabrieflookatpaststateconstitutionsandcourtcasesto providethereaderwithabackgroundinunderstandinghowcorporationswerekeptincheckinthe1800s.It wasntuntilaftertheCivilWarwhencorporationsbecamesoprominent.

Part 1: Constitutional Law

Thereaderwillnotebeforebeginningthatpastcorporatelawsheldcorporationsincheckupuntilthelater partofthe1800s,withtheriseofthesilverandrailroadbarons.Infact,corporatelawevolvedalongwiththe emergenceofawealthyeliteclass,atimethatcoincidedwithoneofthemostdisastrouscourtdecisionsofall timegivingcorporationstherightsofpersonhood.Anothercasedatinginthefirsthalfofthe1920sthereader should note required the government to obtain search warrants to obtain corporate files. A decision that no doubt saved more than one profit monger that supplied arms in WWI and hindered the prosecution of corporationsthattradedwiththeNazisduringWWII. Theoldadagethatyoucantfightcityhallappliesinspadestocorporations.Ifthereaderdoesntbelieve me, I have a drawer full of charges corporations made without my permission to my insurance policies, my banking accounts and my mutual fund accounts. In effect, corporations control virtually every aspect of life today,includingthenews. Today many senior citizens make monthly pilgrimages to Canada to refill their prescription drugs. The state of Maine has even adopted a law requiring in the future that drug prices there must be comparable to those in Canada. Even an Internet site exists to help seniors to obtain their prescriptions through mail from Canada. SowhatisthedifferencebetweenCanadashealthcaresystemandthatoftheUnitedStates?Ifonewasto listen to the extreme right and the Republican Party, they are screaming that Canadas health care system is socialistic.Balderdash!ThosesameprescriptiondrugsthatcanbeobtainedinCanadaforafractionoftheprice they sell for in the United States are produced by the very same corporations that are gouging American citizens. If those corporations were owned and run by the government then it would be truly a socialistic system,butwhythelie?Itssimple;Canadachoosestoregulatetheircorporations.Wehavethesamechoice, buttherightwingpoliticiansareshillsboughtandpaidforbytheverycorporationsthattheyareinchargeof regulating. Its simply a diversion and scare tactic perfected by the Republicans to scream communism or socialismwheneveranythingshouldthreatentheirmealticket. AgoodexamplewastheRepublicanresponsetoPresidentClintonsproposaltoexpand Medicare.TheRepublicanschoseSenatorBillFristofTennesseetodelivertheirresponse. Frist pretended to be just an old country doctor overwhelmed by regulations. Frists performancewastrulydeservingofanAcademyAwardforbestactorasthequotebelow exemplifies. Youknow,myfatherwasafamilydoctorfor55years.Asayoungboymakinghouse calls with him, I remember his stethoscope, his doctors bag, and best of all his Bill Frist wonderfulandcompassionateheart. However, the facts from Roll Call reveal a different picture.[14] While Bill Frist is indeed a doctor, he is hardlyasimplecountrydoctor.In1968,FristsfatherandbrotherhelpedlaunchtheHospitalCorporationof America.Fristswealthcomesfromhisstockholdingsinthisgianthealthcareunit.In1996,Fristdiscloseda minimum of $13.7 million in assets; $8 million of which was in Hospital Corporation of America. Of course, SenatorFristomittedhisholdingsinthishealthcaregiantinhisresponse,asheomittedthefactthatHospital Corporation of America faced a Justice Department probe into charges of widespread fraudulent Medicare billingschemes.Inotherwords,theoneswritingthelawsandregulationsarethecorporations. Here we have the crux of the problem, regulation. Regulation of corporations is not socialism; when done to promote the common good it is liberalism at its finest hour. As paperentities,corporationshavenorights;onlypeoplehaverights,corporationsonlyhave conditionalobligationstofulfillforthesocietythatcreatedthem.Itistheobligationofthat societyincreatingacorporationtoensurethatitworkstothecommongoodorwelfareof the society and not just to the benefit of a few moneyed interests. That is liberalism, not socialism. Perhaps, George Soros has stated the problem best. He firmly states that one cannothaveaglobaleconomywithoutfirsthavingaglobalsociety.Bysociety,hemeansa George Soros government or other regulatory mechanism.[1] The same applies equally well within a nation.Thisdoesnotimplythatcorporationsarenecessarilybadorevil.Theyarejustatoolforanysocietyto better itself. However, left unregulated they can and do acquire absolute power, which leads directly to the fasciststateofcorporaterule. Before proceeding further, one needs to understand how corporate law and regulations have evolved. In doingso,manymythscommonlyheldbythehardrighttodayaboutthefoundingfatherswillbedispelled.The

founding fathers were indeed liberals and did believe in a capitalistic economy. However, they also believed strongly in regulating trade. So much so that one of the enumerated powers in the Constitution granted the federal government is the power to regulate interstate commerce. It is a bold faced lie to assume that the enumeratedpowerconcerningtheregulationofcommercebetweenstatesonlyappliedtotariffsbetweenthe thirteencolonies,orthatthefoundersweresupportiveofcorporations. Corporationsfirstcameaboutinthemiddleofthe1600sinEnglandwhenthecrownvestedgovernmental authoritytocertaincommercegroups.Theroyalchartersgrantedthemselvesregulatedthetradingcompany or corporations, since only the Crown had the right to govern trade. The right of the Crown to regulate or controlthecorporationlargelywentunused,leadingtomuchabuseandmonopolisticpower.Somesuchroyal chartershadtheirowngovernorsandarmiesliketheEastIndiaCompany. In fact, it was the East India Company that led to the Boston Tea Party. At the time, the colonies were boycottingtea,whichwascontrolledalmostsolelybytheEastIndiaCompany.Inanefforttopropupsagging profits from the boycott, taxes on tea were cut. This in turn cut into the profit of a group of Americans smugglingteaintothecolonies.Seeingtheirprofitserodedbythetaxcut,theythenraidedtheEnglishshipsin theharbor.WhiletheclassicalstoryoftheBostonTeaPartybeingaprotestoverrisingtaxesandtaxwithout representation makes for good patriotic propaganda, it is indeed patently false and has taken on mythical proportions. ThiswasbutoneofthemanyabusesthecoloniessufferedatthehandsofEnglishcorporations.Therewere manyotherabuses.OftenAmericancolonialsettlementswerepatentsgrantedtoEnglishcorporationsbythe Crown.SouthandNorthVirginiaweretwosuchpatents.Thesecorporationsobtainedtheirlaborsupplywith indenturedslaves.Typicallyaftersevenyearsoflabor,theindenturedslavewouldbegivenahundredacres;as many as two thirds of the colonists are estimated to have been indentured slaves. Virginia, Maryland and Pennsylvaniaallbeganascommercialenterprisesrunbycharteredcorporations. Afulllistingofsuchabusesisbeyondthescopeofthisbook,however,theexamplesprovidedaresufficient to illustrate the contempt many of the founders had for corporations, as well as the need to regulate them. PerhapstheeloquentwordsofThomasJeffersonbestsumupthefoundersoutlooktowardcorporations: IhopeweshalltakewarningfromtheexampleofEnglandandcrushinitsbirththearistocracyofour moneyedcorporationswhichdarealreadytochallengeourGovernmenttotrial,andbiddefiancetothe lawsofourcountry. TheconceptofgrantingacharterasaprivilegeandnotarightcarriedoverintoearlyAmericancorporate law.Thusthepresentviewthatcorporationsholdapropertyrightisbasedonanothermyth.Thispointwillbe expandedfurtheralittlelaterinalookatsomeearlycourtcases.Infact,theviewofthispropertyrightdidnot comeaboutuntilaftertheCivilWar.Beforethistime,theconceptofacorporatecharterasaprivilegewasthe commonlyheldview.Thepresentviewofacorporatecharterhavingpropertyrightsonlycameaboutthrough judicialactivismandthroughvariousstatelegislatures. The concept of corporate charters as a privilege was clearly carried forward into the Articles of Confederationwhenin1781CongressgrantedanationalchartertotheBankofNorthAmerica.Likewise,this concept of a privilege was carried into the Constitutional Convention of 1787. During the convention James Madison twice proposed that Congress be given the power to grant charters. Both proposals were met with failure,althoughnoformalvoteoneithermeasurewasevertaken.Variousmembersopposedsuchproposals as unnecessary or feared they would lead to monopolies. Based on his fears of a national bank, Jefferson opposedtheideaoffederalcharters,fearingtheywouldcreatemonopolies.Jeffersonwastoloseonbothviews when Congress later granted a federal charter for the national bank. Likewise, one can hardly blame the delegatesto theconventionforbelievingthattherewasnoneedforproposalsregulatingcorporations,asat thetimetherewerelessthan40corporationsin1787.Thatnumberroseto334by1800. Thus, the Constitution of the United States was left with only two clauses to regulate corporations: the commerce clause in Article I Section VIII and the obligation of contract clause in Article I Section X. The regulation and granting of corporate charters was left to the various states. The states continued to treat a corporatecharterasaprivilegegrantedonlyunderspecialactsoftheirlegislatures.However,theprocessof hearingsandpetitioningthestatelegislatureswereplaguedwithdelays,favoritism,andoutrightcorruption. Perhaps the first blow to increasing corporate power came, as the pace of incorporations continued to expand, with a movement in 1795 to grant general charters to alleviate the problems with hearings and petitions. North Carolina was the first state in 1795 to enact a general incorporation law, followed by

Massachusetts in 1799, New York in 1811 and Connecticut in 1837.[2] However, in some states it required morethanasimplemajorityforthegranting,renewingoralteringofacorporationcharter.In1840s,citizens inNewYork,Delaware,MichiganandFloridarequiredatwothirdsvoteoftheirstatelegislaturestodoso.In Wisconsinandfourotherstateseverybankcharterhadtobefirstapprovedbythevoterswithinthestateafter thecharterwasrecommendedbytheirlegislatures. Nevertheless, even under a general incorporation law, states still treated the corporate charters as a privilege and restricted the activities of corporations to a great extent. The following list is some of the limitationsplacedoncorporationsbyvariousstates. Charters were granted only for a period of 10, 20 or 30 years after which the corporation had to be liquidated with the proceeds distributed among theshareholders. LimitedLandHoldings: Manystatesimposedlimitationsontheamountoflandacorporationcould own. Most often, the amount of land was limited to that required for the factoryormillsite. LimitedCapitalHoldings: Onceagain,manystateslimitedtheamountofmoneyorfinancialassetsa corporation could own. Some states banned corporations from owning othercorporationsorstockinthem.Onceacorporationexceededthelimit, ithadtobeeitherdissolvedorsplit. SpecificPurposeCharters: Thiswasperhapsthemostcommonofallrestrictionsintheearlyyearsof thiscountry.Corporationswerecharteredonlyforaspecificpurposesuch asthebuildingofacanalorroad.Oncethestatedpurposewascompleted, the corporation was dissolved. Now charters are issued that enables a corporationtoengageinanytypeofbusiness. NoLimitationsonLiability: Directors, managers and shareholders were held to be fully liable for any debtsordamages.Insomecases,thelenderorinjuredpartywasentitledto doubleortriplethedamages.Otherstatesimposedextremelyhighinterest ratesuntilthedebtwasfullypaid. RestrictiveShareholderRig The internal governance of corporations was much more restrictive than hts: today. Shareholders had more rights. In case of mergers, some states requiredaunanimousvoteofshareholders. RestrictionsonPricing: Some states maintained the right to set prices on corporate products. Wisconsin for one gave the state legislature the power to set prices on productsafterreviewingthecorporationsexpenses. RevocableCharters: States maintainedtherighttorevokeorchange acharter atthewillofits legislature.Almostallofthestatesadoptedthisclauseafter1820. Beforecontinuingwithalookatvariousstateconstitutionsoftheearly1800s,abrieflook atacoupleofearlySupremeCourtcasesisneeded,sinceoneofthecasesledtomoststates includingaclauseallowingforthemodificationorannulmentofanychartersthestatemay grant. Perhaps one of the best Chief Justices of the Supreme Court of all time was John Marshall,appointedbyJohnAdamsin1801.ItwasMarshallwhoshapedtheSupremeCourt intobeingafullthirdbranchofgovernmentandstrengthenedthefederalsystem. Marshall presided over several landmark cases with a probusiness outcome. Four casesarenotable.InFletcherversusPeck,thesanctityofawrittencontractwasupheld.In John Marshall Gibbons versusOgden,theCourtestablishedthepowerofCongresstoregulateinterstate commercetoavoidamonopoly.InMcCulloughversusMaryland,theCourtruledthatthestatehadnorightto taxthefederalbank.However,itwasDartmouthversusWoodwardwhichexertedthemostinfluenceinlater years.DanielWebsterarguedthecaseforDartmouthbeforetheCourtandimpliedthattherewasaproperty right. Marshall was well known for his opinions, choosing his words with the precision of a surgeons scalpel. However,Marshallsopiniongrantednopropertyrightstoacorporation.RatherheextendedtheFletchercase andtheprincipleofthesanctityofawrittencontracttoincludestatesaswellascorporationsastheexcerpt belowshows. LimitedDuration:

Acorporationisanartificialbeing,invisible,intangibleandexistingonlyinthecontemplationofthe law. It possesses only those properties which the charter of its creation confers upon it. The opinionoftheCourt,aftermaturedeliberation,isthatthisisacontract,theobligationofwhichcannot beimpairedwithoutviolatingtheConstitutionoftheUnitedStates.[3] OneshouldnotethatMarshalldefinedthiscaseverynarrowly.Therewasnomentionofanypropertyrightsin hisdecision.Itwassimplyadecisionbasedonthesanctityofcontracts.However,thiswasperhapsthefirstand mostimportantprobusinesscasethathasledtocorporateabuse.Marshallcorrectlyruledindefiningthecase narrowlytocontractlaw. However,laterprocorporatejudicialactivistswouldusethisdecisiontoconfertherightsofapersononto corporations,apositionthatMarshallobviouslydidnotshare,ashedefinedacorporationverynarrowlyasan artificialbeingthatonlyhadpropertieswhichitschartergrantedit.Marshallswordsareclearandheclearly statedthattheonlyrightsacorporatehascomesfromitscharterandnotfromtheConstitution.Againwesee that a corporate charter is a privilege and not a property rights issue. Thus, the present day view of corporationshavingpropertyrightsandtherightsofapersononlycameaboutthroughperversionofthelaw andtheConstitution. However,itwasthiscasein1819thatledtothealmostuniversalinclusionofstatestoincludelanguageto amendandrevokechartersintobothstatelawsandstateconstitutions.Hereagainbythestatesincludingsuch language, it shows that the granting of a charter was a privilege that carried no rights and couldbe revoked wheneverthecorporateactivitieswerenotinthegeneralinterestofthestateorthepeople. A brief look at various state constitutions of the 1800s will further emphasize the point that a corporate charterisaprivilege.AlookattheConstitutionofPennsylvania(1838)revealsboththeclauseforrevocation andestablishesatimelimitof20yearsforallcorporatechartersinArticleISection25asfollows: No corporate body shall be hereafter created, renewed, or extended, with banking or discounting privileges,withoutsixmonthspreviouspublicnoticeoftheintendedapplicationforthesameinsuch mannerasshallbeprescribedbylaw.Norshallanycharterforthepurposesaforesaidbegrantedfora longertimethantwentyyears;andeverysuchchartershallcontainaclausereservingtothelegislature the power to alter, revoke, or annul the same, whenever in their opinion it may be injurious to the citizens of the commonwealth, in such manner, however, that no injustice shall be done to the corporators. No law hereafter enacted shall create, renew, or extend the charter of more than one corporation.[4] NorwasPennsylvaniatheonlystatetolimitcorporationstoasettimelimit;inMaryland,legislatorsrestricted manufacturingcharterstofortyyears,miningcharterstofifty,andmostotherstothirtyyears.Otherstatesto includetimelimitsincorporatechartersincludeLouisiana,Michiganandseveralothers. The revocation clause was actually first written into the Pennsylvania Constitution in 1784. Clauses of revocation were first commonly found in insurance and banking charters. Further the revocation clause was broadened and strengthened from 1784 to 1857, when the legislature was required to revoke charters whenever corporate activities were deemed injurious to the community. Notice the specific mention of corporations engaged in banking. Private banking corporations were banned altogether by the Indiana constitution in 1816, and by the Illinois constitution in 1818. Ohio, Pennsylvania and Mississippi revoked chartersthroughouttheearly1800sofanybankthatengagedinactivitiesthatwouldleavetheminsolventor in a financially unsound condition. Limitations on railroads are another common feature in many state constitutions. New York, Ohio, Michigan and Nebraska successfully revoked charters from a wide range of businesses, including matches, oil, sugar and whiskey. By 1870, 19 states included a revocation clause; presently49ofthe50stateshavearevocationclause.In1857,Pennsylvaniaamendedtheirconstitutionwith ArticleXI;insection6thefollowingclauseisfound: The commonwealth shall not assume the debt, or any part thereof, of any county, city, borough, or township,orofanycorporationorassociation,unlesssuchdebtshallhavebeencontractedtoenable theStatetorepelinvasion,suppressdomesticinsurrection,defenditselfintimeofwar,ortoassistthe Stateinthedischargeofanyportionofitspresentindebtedness. Again,suchaclausewascommonplaceintheearly1800s.TheAlabamaConstitutionof1875canbeusedto illustratetwooftheotherpointsinArticleXIVSections5and9respectively. Nocorporationshallengageinanybusinessotherthanthatexpresslyauthorizedinitscharter.

Nocorporationshallissuepreferredstockwithouttheconsentoftheownersoftwothirdsofthestock ofsaidcorporation.[5] TheconceptofacorporatecharterasaprivilegecanbestbeillustratedbytheWyomingConstitutionof1889. AlthoughtheWyomingConstitutionallowsforthecreationofcorporationsundergenerallaw,itcontainsmany restrictionsoncorporations. Thelegislatureshallprovidefortheorganizationofcorporationsbygenerallaw.Alllawsrelatingto corporations may be altered, amended or repealed by the legislature at any time when necessary for the public good and general welfare, and all corporations doing business in this state may as to such business be regulated, limited or restrained by law not in conflict with the constitution of the United States. Allpowersandfranchisesofcorporationsarederivedfromthepeopleandaregrantedbytheiragent, thegovernment,forthepublicgoodandgeneralwelfare,andtherightanddutyofthestatetocontrol andregulatethemforthesepurposesisherebydeclared.Thepower,rightsandprivilegesofanyandall corporations may be forfeited by willful neglect or abuse thereof. The police power of the state is supremeoverallcorporationsaswellasindividuals.[6] Inthesecondparagraphabove,itisclearlystatedthatacorporationpowerscomeonlyfromthepeoplethatit issubservienttothepeopleforthepublicgoodandgeneralwelfare.Wyomingsconstitutionisalsothesource ofstrongantitrustlanguageasfollows: There shall be no consolidation or combination of corporations of any kind whatever to prevent competition,tocontrolorinfluenceproductionsorpricesthereof,orinanyothermannertointerfere withthepublicgoodandgeneralwelfare. CaliforniasConstitutionof1849asamendedbyArticleXIIin1879isperhapsthelongestinlistingrestrictions on corporations with a total of 24 sections.[7] Sadly 20 of the 24 sections have already been repealed. In Section3,thestateholdsallshareholdersresponsibleforthedebtofthecorporation.Onceagainanothermyth, themythoflimitedliability,isdestroyed.NoticeinthetextthatfollowsofSection3thattheshareholderneed notbeapresentowner;heonlyhadtobeashareholderatthetimethedebtwasincurred.InOhio,Missouri andArkansas,stockholderswereliableoverandabovethestocktheyactuallyowned.Inthe1870s,sevenstate constitutionsmadebankshareholdersdoublyliableforanydebts. Eachstockholderofacorporation,orjointstockassociation,shallbeindividuallyandpersonallyliable for such proportion of all its debts and liabilities contracted or incurred, during the time he was a stockholder, as the amount of stock or shares owned by him bears to the whole of the subscribed capitalstock,orsharesofthecorporationorassociation.Thedirectorsortrusteesofcorporationsand jointstock associations shall be jointly and severally liable to the creditors and stockholders for all moneys embezzled or misappropriated by the officers of such corporation or joint stock association duringthetermofofficeofsuchdirectorortrustee. Section8prohibitscorporationsfrominfringingupontherightsofindividuals.Thetextfollows: Theexerciseoftherightofeminentdomainshallneverbesoabridgedorconstruedastopreventthe Legislaturefromtakingthepropertyandfranchisesofincorporatedcompaniesandsubjectingthemto public use the same as the property of individuals, and the exercise of the police power of the State shall never be so abridged or construed as to permit corporations to conduct their business in such mannerastoinfringetherightsofindividualsorthegeneralwellbeingoftheState. Section9limitstheactivitiesofcorporationstothosethataredefinedintheircharters. Nocorporationshallengageinanybusinessotherthanthatexpresslyauthorizedinitscharter,orthe lawunderwhichitmayhavebeenormayhereafterbeorganized;norshallitholdforalongerperiod thanfiveyearsanyrealestateexceptsuchasmaybenecessaryforcarryingonitsbusiness. Bylooking atseveraldifferentstateconstitutions fromthe 1800s,itisclearlyapparentthatintimesbygone severerestrictionswereplacedoncorporateactivities.Intheprocess,manyofthecurrentmythsconcerning corporations have been destroyed, such as that of limited liability. Even more remarkably, this quick look at stateconstitutionshasrevealedthatthegrantingofacharterasaprivilegeandnotarightsurvived,atleastup until 1889 when the Wyoming Constitution was adopted, as the phrase for the public good and general welfareisunmistakableinitsintent.

Unfortunately, the extent of regulation of corporations can be revealed by just looking at the state constitutions for all of the states constitutions looked at contained a creation clause under general law. One wouldneedtoreviewallstatelawstogetafullunderstandingoftheextentofregulation.Suchareviewwould beadauntingtaskandbeyondthescopeofevenabook,letaloneasinglechapterwithinabook.However,one cangleanaglimpseofitbylookingatalistofthemoreimportantSupremeCourtcases. ThefirstimportantcasefollowingtheMarshallCourtcamein1839inBankofAugustaversusEarle.[8]The Courtruledthatcorporationswerepersonsinthestateoftheircharter,butwerefreetodobusinessinother states. However, the Court stopped short of declaring corporations were citizens protected from state laws, whichviolatedthefederalconstitution. In1844,thecourtexpandedthepowerofcorporationsandstruckablowagainstlocalcontrolinLouisville, Cincinnati&CharlestonRailroadversusLetson.Inthiscase,theCourtruledthatcorporationsarecitizensof the chartering state, and further added that the Constitutions diversity clause (Article III, Section 2) allows corporate cases to be heard in federal court. As more and more corporations were chartered, their power increased at a quickening pace. The increases in power still came about through judicial activism. With the increaseinnumberandincreasesincorporatepower,wealthbecameconcentratedintothehandsofthefew. AfterbecomingPresident,Lincolnlamented: Iseeinthenearfutureacrisisapproachingthatunnervesmeandcausesmetotrembleforthesafety ofmycountrycorporationshavebeenenthronedandaneraofcorruptioninhighplaceswillfollow, andthemoneyofthecountrywillendeavortoprolongitsreignbyworkingupontheprejudicesofthe peopleuntilallwealthisaggregatedinafewhandsandtheRepublicisdestroyed.

Part 2: Supreme Court Cases

The three decades following the Civil War saw further increases in the number of corporations and a much morerapidpaceoffavorablecourtrulings.Partoftheincreasingnumbersofcorporationsnodoubtcamefrom thegreatgiveawayofpubliclandstosome61railroadcompanies.However,evenwiththehugelandgrants, therailroadscouldnotlivewithintheconditionssetbythegrantsandoverathirdoftheland,atotalof190 million acres, was forfeited. The reader is reminded that even today the terms of those grants are being disputed in court cases, most notably in the clear cutting of timber from and the shipping of the raw logs to Asia. In1868,theCourtruledthatcorporationswerenotcitizenswithinthecontextofArticleIVSection2ofthe Constitution. Elaborating, the Court defined a citizen there to apply only to natural persons, members of the bodypolitic,andowingallegiancetothestate.Corporationsonlyhadthepropertiesthatwereconferredonit bythelegislature.Thereadershouldnotethatcitizenshipincurredanobligationofallegiancetothestate.The many cartel agreements that American corporations willingly signed with German corporations granted allegiancetotheGermancorporationsandhinderedbothworldwarsimmensely. TheCourtruledin1876inMunnversusIllinoisthatcorporationswithapublicinterest,inthiscasethe rategrainelevatorschargedfarmersforshipping,wassubjecttostateregulation.TheCourtfurtherruledthat whatconstitutedareasonableratewasalegislativeandnotajudicialquestion.Thiscaseisalsoverysimilarto a case settled before the Wisconsin Supreme Court. In Attorney General versus Northwestern Railroad, the Courtruledthatthestatecouldsetmaximumfaresonclassesofrailtransportation.[9] ItisimportanttonoteherethatJusticeStephenJ.FielddissentedinMunn.Lincoln appointed Field in 1863 to the Supreme Court in a move that brought the number of justices to ten. Field would serve for another 34 years. It is equally important to note thatFieldsopinionsweremoreoftenatoddswiththoseofthetime.Hehadjustthree concepts of government. One he felt that it was not a function of the government to protect individual liberty. Two, government should be limited. Finally, only the US governmentshouldhavetherighttointeractwithforeigngovernments.Hissecondview of government fit with his laissezfaire economic views. Field first expressed his view Supreme Court Justice that the 14th amendment protected private businesses from government regulation in Stephen J. Field thiscase. In 1879, Judge Lorenzo Sawyer of the Ninth Circuit Court ruled in the Orton case that the federal government had control over the railroad land grants. However, he further restricted state regulation in controlling ultra vires acts of corporations. Stated otherwise, it means that corporate actions go beyond the

powers actua p ally granted to corporat tions. The ru uling of the court led directly to se ettlers b beingevicted dforciblyint theMusselSloughbattle of1880inw whichfivesettlerswerek killed. S Sawyerisbes stdescribed asaflattere erofField.Fi ieldwasalso oinvolvedin thiscase.Sa awyer w wasinvolved dinseveralra ailroadcases sthatwillshortlyfollow. In 1882, Sawyer rule ed in the San n Mateo Rail lroad case in n the Ninth Circuit C Court t that c corporations werepersons.Fieldwa aslikewisein nvolved.How wever,itisa amatterofre ecord t that Sawyer owned stoc ck in the Cen ntral Pacific Railroad. Additionally, both Sawyer r and F Field were close friends of Leland Stanford S and d other parti ies involved in the rail cases. c J Judge Lorenzo S Sawyer was uniquely pla aced to expa and the powe ers of corporations and used unorth hodox Sawyer interpretationsofstatues sandjudicial lreviewtodoso. theIllinoisS SupremeCou urtstruckdownstateGra angerlawsre egulatingrai ilroad In1886,t r ratesinWaba ashversusIl llinois.Theh highpointofprobusinessjudicialact tivismoccurr redin 1 1886. In thi is year, alon ne the Cour rt struck do own 230 sta ate laws pa assed to reg gulate c corporations . It was also o the year of f the most grievous g act of all in furt thering corp porate p power. This was the yea ar that the Court C handed d down the ruling in Sa anta Clara Co ounty v versus South hern Pacific Railroad, declaring tha at corporatio ons were pe ersons unde er the F Fourteenth A Amendment. y outset of the t case Chief Justice, Morrison M R. Waite W At the very Chief Justice s stated: Mo orrison R. Waite The Cou urt does not wish to hear r argument on the quest tion whether r the provisi ion in theFourt teenthAmen ndmenttoth heConstitutio on,whichforbidsastate etodenyto anypersont theequal protectio onofthelaws s,appliestot thesecorpor rations.Wea arealloftheo opinionthatitdoes. T Thisoutrage ousrulingha asdonemor retodamage eourliberty andfreedom msthanany othersingle rulinginthe e h historyofthe ecountry.Iti ineffectgave ecorporation nsthesamer rightsasper rsons,butwit thnoneofth heobligations s a social re and esponsibility carried with h those right ts. It paved the way for rendering th he people su ubservient to o c corporations r should not te the year as a well, as this t ruling ca ame down right r at the height h of the e . The reader r robberbaron ns. Before pr roceeding fu urther, a clos ser look at th he members s of this Court is needed d. It undoubt tedly was the e C Court that was w most an ntagonistic to owards individual freed dom and liberty than an ny other Court with the e p possibleexce eptionoftheRehnquistC Courtoftoda ay;justasthe eRehnquistC Courtdidinvoidingther resultsofthe e 2 2000election nandappoin ntingGeorgeBushasPre esident,Asso ociateJusticeJosephBrad dleyofthisC Courtcastthe e d decidingvote eingivingRu utherfordB.Hayesthepr residency. This was the same Court that ren ndered the Civil C Rights Act A of 1875 invalid in Pl lessy versus Ferguson. In n e essence,the endmentint theirrulingin ndirectcont tradictiontoapplicability y Courtthrew outtheFourteenthAme o ofthefourtee enthtocorporations.Eve enmoretellingoftheab busivenature eoftheCour rtoncivilrig ghtswastha at n numberofFo ourteenthAm mendmentca asesbetween n1890and1 1910,only19 9dealtwitht theNegrowh hile288deal lt w withcorpora ations. Norwas thisCourtan nymorefrien ndlytowom menssuffrage e.InBradwe ellversusIllin nois,theCou urtupheldan n Illinoisruling gthatdenied dwomenalic censetoprac cticelawasa ahostofwom mensuffrage eandwomen nrightscases s f followedthe passageofth heFourteent thAmendme ent.In1886,t theSupreme eCourtJustic ceswereSam muelF.Miller r, S Stephen J. Field, Joseph P. P Bradley, John M. Harlan, Stanley Matthews, M W William B. Woods, W Samue el Blatchford d, H HoraceGray, ,andChiefJu usticeMorris son.R.Waite e.Fieldsviewandchara acterhasalre eadybeenal lludedtoand d w willnotbefu urtherdiscus ssed.TheChiefJustice,W Waiteshared similarview wswithField d.Waitebelie evedthatthe e f firsttename ndmentsapp pliedonlytothefederalg government andwereno otintendedt tolimitthep powersofthe e v variousstate s.SamuelMi illerdeclared dthatanytax xationwasro obberyin18 874. F A Amendment in the Santa a Clara case has been ri idiculed by later l justices s. The invoking of the Fourteenth S Seventyyear laterinConn necticutGen neralLifeInsu uranceComp panyversusJ Johnson,Just ticeHugoBla ackwrote: Certainly ywhentheF FourteenthA Amendmentw wassubmittedforappro oval,thepeop plewerenot ttoldthat ratifyinganamendme entgrantedn newandrevo olutionaryri ightstocorporationsa andwerenot ttoldthat tendedtoremovecorpor rationsinan nyfashionfro omthecontr rolofthesta ategovernments.The itwasint fourteent thfollowedt thefreedomo ofaracefrom mslavery.Corporation nshaveneitherracenorc color. W WilliamDoug glaswasanotherlaterjus sticethatrid diculedthede ecision. In 1890, the Sherman Antitrust act a was pass sed, outlawing contract, combination ns, trust or conspiracies s, w whichrestra nopolizedtra ade.Followin ngpassage,t thelargestw waveofcorpo oratemerger rsyetwasto o inedormon

sweepacrossthecountry.Section6oftheactrequiredtheforfeitureofanypropertytransportedacrossstate linesthatfellundertheact.Sections7and8bothdefinedcorporationsaspersons. In 1890 in Chicago, Milwaukee & St. Paul Railway versus Minnesota, the Court began retreating from its earlier ruling in Munn. The Court now amended its earlier ruling by stating that rail rates were subject to judicialreviewanddueprocessifsetbyacommission.AseriesofcasesfollowedallwiththeCourtfavoring prorailroad or corporate rulings. In Smythe versus Ames in 1898, the Court further extended the ruling to allowforjudicialrevieweveniftheratesweresetbylegislature. Inaddition,in1890NewJerseyintensifiedtheracetothebottombyrelaxingitsgeneralcorporatelaws. After this time New Jersey would allow corporate charters for holding companies, which permitted corporationstotradestockofothercorporationsandtoissuetheirownstockaspayment.In1892NewJersey went further, repealing its antitrust law. In 1896 New Jersey allowed charters to be granted for any legal purposeandremovedanyrestrictionsonmergers.Likewisethe50yearlimitoncorporatelifewasremoved and for the first time, New Jersey would now grant charters to corporations operating outside its borders. Shareholdersrightsreceivedablowaswell.Underthenewlawsofthestate,directorswereallowedtoamend bylawswithoutshareholderapproval;directorscouldnowrelyonproxyvotingwithallshareholdermeetings held in New Jersey. The new laws were so popular that from 1897 to 1904 corporations chartered in New Jerseywithanetworthof$20millionormorereached104,startingfromamere15in1896.Enoughrevenue fromthefilingfeesandfranchisetaxeswasgeneratedtoallowthestatetoabolishpropertytaxes. Inresponse,DelawarepassedaGeneralCorporationLawin1899thatallowedcorporationstowriteany provisionstheywishedincreating,defining,limitingandregulatingthepowerofthecorporations.Thereader shouldnotethischangeinDelawarelawasitfiguresprominentlyinalaterchapterasthereasontheduPonts reincorporatedinDelaware. In 1893, the court issued perhaps its first antiunion ruling in United States versus Workingmens Amalgamated Council. The court in this case upheld an injunction against a union on grounds that the InterstateCommerceActrequiredcarrierstoacceptfreightwithoutdiscrimination.Alsoin1893,corporations werefirstgiventheprotectionoftheBillofRightsinNobleversusUnionRiverLoggingRailroadbyrulingthat therailroadwasdenieditsFifthAmendmentprotectionwhentheDepartmentofInteriorattemptedtoremove itsapprovalofarightofwayoverfederallands. Between 1894 and 1905 a host of antilabor rulings were issued by the Court. Before this time, it was commonunderstatelawforthestatetolimitthenumberofhoursapersonwasallowedtowork.In1894,the Court struck down the eighthour shift for mechanics and labor in Low versus Rees Printing. Colorado eliminated its eighthour day for mining and manufacturing by House Bill 203. In 1895, in Ritchie versus People,theeighthourdaywaseliminatedforwomengarmentworkers.LochnerversusNewYorkeliminated thetenhourdayforbakersinNewYorkin1905.In1895theCourtruledthattheShermanAntitrustActcould beusedagainstinterstatelaborstrikesbecausesuchstrikeswerearestraintontrade. In 1895 the Court upheld a monopoly of 98 percent of the countrys sugar production in United States versusE.C.KnightCompany,rulingthattheShermanAntitrustActappliedonlytocommercenotproduction.In adissentingopinion,JusticeHarlanwrotethattherulingplacedtheConstitutioninaconditionofhelplessness whilecapitalcombinestodestroycompetition. InHaleversusHenkel,theCourtruledagainstthecorporationsattempttousetheFifthAmendment,but ruledthatoverlybroadsubpoenasforcorporatedocumentscouldbeaviolationoftheFourthAmendment. In 1911, the Court broke Standard Oil into 33 corporations in Standard Oil of New Jersey versus United States.Thiscasebasicallyendedashortperiodofgenerallyfairrulingsagainstmonopoliesandtrusts.Itwas forthemostparttheclimaxoftheantitrustsentimentstartedbyTeddyRoosevelt.TheClaytonActof1914 legislated price discrimination within the same industry and further stipulated that labor unions were not trusts. In 1917, Idaho became the first state to enact criminal syndicalism laws; twentythree additional states soonfollowed.Thelawswereusedtosuppresslabororganizers,politicalactivistsandforeigners. The KeatingOwen Child Labor Act was struck down by the Supreme Court in 1918, ruling that goods producedbychildlabordidnotfallundertheShermanAntiTrustActwhichonlyappliedtocommerce. Between1920and1924theCourtgrantedcorporationsthe protectionoftheFourth Amendment,ruling thatgovernmentofficersseizingcorporatedocumentsviolatedtheprovisionsagainstunreasonablesearchesin Silverthorne Lumber versus United States and FTC versus American Tobacco. This decision came just as investigations into profit mongering by arms makers during WWI was heating up. Likewise, the decision

provided those corporations that signed cartel agreements with I.G. Farben and other German corporations duringtheinterwarperiodprotectiononceWWIIstarted. In1937,theCourtruledthatCongresscouldprotectinterstatecommercefromlabororganizinginNational LaborRelationsBoardversusJones&LaughlinSteelCorp. Inthe1938SubcommitteeofFederalLicensingofCorporationshearingonSenateBill3072sponsoredby SenatorJosephOMahoneyofWyomingandWilliamBorah,OMahoneyarguedacorporationhasnorights;it hasonlyprivileges. In1947,theantiunionTaftHartleyactwaspassedoverthevetoofPresidentTruman.Theactdeclaredthe closedshop tobeillegal,outlawedsecondarystrikesandboycotts,allowedemployersto exempt themselves frombargainingwithunionsiftheywishedto,forbadetheunionsfromcontributingtopoliticalcampaignsand requiredunionsandtheirofficerstoconfirmtheywerenotsupportersoftheCommunistParty. The CellerKefauver Act of 1950 amended Section 7 of the Clayton Act to include the lessening of competitionthroughtheacquisitionofanothercompanysassets. In 1969, the Newspaper Preservation Act was passed. The act specifically exempts newspapers from the antitrustlaws.Wholesaleconsolidationofnewspapersfolloweduntilonlyahandfulofcorporationsownedall themajornewspapers. In1976,thesecondmostgrievousextensiontocorporatepowerwasgrantedtocorporationsbytheCourt. In Buckley versus Valeo, corporations were granted freedom of speech. Corporations were now free to contributeunlimitedfundstoelections,ineffectbuyingthecandidateoftheirchoice.Theyear1976marksthe beginning of another long period of procorporate rulings, as Republicans were once again able to stack the Courtwithextremelyconservativejustices. InUnitedStatesversusMartinLinenSupplyCo.,acaseheardin1976,theCourtruledacorporationmay use the Fifth Amendment to protect itself from double jeopardy to avoid a retrial of an antitrust suit. In addition in 1976 the court ruled advertising was free speech in Virginia Board of Pharmacy versus Virginia CitizensConsumerCouncil.In1977theCourtallowedcorporationstheprotectionoftheFourthAmendmentto thwart the efforts of OSHA inspectors in Marshall versus Barlow. In 1977 the Court overturned state restrictions on corporate spending on political referendums under First Amendment protections in First NationalBankversusBellotti,rulingthatmoneywasfreespeech. After this brief review we can clearly see that the founders had just as much fear and loathing for big money (read corporations) as they did of big government. As the state constitutions showed, they chose to restrict corporate activities sharply. The founders certainly believed that a corporate charter was a privilege andconferrednopropertyrightsontotheownersofthecorporations.Infact,manyofthestateconstitutions grantedonlychartersthatwerelimitedbysometimeduration,afterwhichthecorporationwouldhavetobe dissolved.Almostallstatesgavetheirlegislaturesthepower torevokea charterifthecorporationsfailedto livewithinitscharterorwhenviewedasharmfultothegeneralwelfareofthestate. Most states through general law further restricted the activities of corporations limiting the amount of wealthorlandtheycouldaccumulate.Itwasliberalismsfinesthour,protectingtherightsofthecommonman againsttheplutocrats. Itwasonlythroughjudicialactivismandcorruption,alongwithsomestatelegislatures,thaterodedmostof thelawsgoverningcorporationsinthe19thCentury.Thiserosionofthelawparalleledtheriseoftherichelite within our society. From an earlier chapter, it should be clear that the rich elite as a class didnt begin to emergeuntilaftertheCivilWar,whichparalleledwiththeCourtsprobusinessrulings,reachingaclimaxwith therobberbaronsofthe1880sandtheWaiteCourtsgrantingcorporationstherightsofapersonunderthe FourteenthAmendment.Ineffect,thejudicialsystemhasconferredcitizenshiponcorporationswithoutanyof theobligationsandresponsibilitiesthatgoeswithindividualcitizenship.Itleavesusintheprecariousposition ofcapitalormoneyhavingmorerightsthanthatoftheownerofthecapital. One good example of that was during WWII when individuals could be drafted and forced to serve their country.ThearmyhardlyhadtoforceanyonetoservetheircountryafterthebombingofPearlHarbor.Infact, they had a different problem. They were overwhelmed with volunteers enlisting, but short on supplies. However,thesuppliesandordersformunitionsandarmamentswereslowtocome.Corporationsrefusedto producewarmunitionsinfavorofconsumergoods.Ineffect,corporationsengagedinasitdownstrikeuntil theyhadobtainedoutrageouslybeneficialterms.InsteadAmericafacedcorporationsthatopenlyviolatedthe law, corporations that blackmailed the government with threats of an interruption of the supply of gasoline andwithcorporationsthatconspiredtofixprices.Finally,AmericafacedthearmiesoftheThirdReichsupplied

by products built by American corporations. No corporation ever faced charges of price fixing, of war profiteering or of treason for supplying the enemy with munitions, yet over three hundred corporations did businesswiththeThirdReichduringthewar. Certainly,therecordoftheWaiteCourtwithmanyagnosticrulingstowardsthecivilrightsofindividuals andtheirlibertiesalongwithanextremelyprobusinessagenda,spanningaperiodofalmost30years,should giveuspausetoday,especiallywiththepresentRehnquistCourtquietlychippingawayattheMirandaruling andothercivilrightsrulings.Likewise,itwastheRehnquistCourtthatruledsomeballotsinFloridaweremore equalthanothersandneednotbecounted,therebythrowingthe2000electiontoGeorgeW.Bush,justasit was justices from the Waite Court that installed Rutherford B. Hayes as President earlier. Such outrageous rulings should call into question the confirmation procedure used in the Senate for Court appointments. Perhapsawaitingperiodshouldbeinitializedinwhichthepubliccansubmititsviewsbeforeavote. Itwastheerosionofprotectionsfromcorporationsbuiltintothevariousstateconstitutionsthathasledto the present problems we are now faced with, a government for sale to the highest bidder. The erroneous decisionoftheCourtin1977equatingmoneywithfreespeechhasleftuswithunequalrights.Acitizensvoice is not equal to that of a multinational corporation simply because the corporation has unlimited financial resourcestoapply.Further,ithasallowedcorporationstogrowtogargantuanproportions,preciselythefear Jeffersonexpressedinhisoppositiontonationalcharters. Thisleavesuswithasituationwherein1996,51oftheworldslargesteconomieswerecorporations,with GeneralMotorslargerthanDenmarkandWalMart,thenumber12corporation,largerthan161countries.The top 200 corporations in the world have sales that are equivalent to 28.3 percent of the worlds GDP. The combinedsalesofthesetop200corporationsarelargerthanallbuttheworldsninelargestcountries.These top 200 corporations employ 18.8 million people or less than a third of one percent. The world top five employersareGeneralMotors,WalMart,PepsiCo,FordandSiemens. Domestically the top one percent of Americans owns 40 percent of all US assets. The corporate share of incometaxeshasfallenfromroughly40percentinthe1940stolessthan15percenttoday.Whilecorporate profitsroseandastounding130percentfrom19801995,theaveragefamilysawanetdecreaseintheirreal wages.TheproblemwasfirstdetailedinAmerica:WhatWentWrong?writtenbyBarlettandSteeleforthe PhiladelphiaInquirerin1992andnowavailableinpaperback. In the abbreviated list of court rulings and acts of Congress above, the list stopped at 1987. For one, the focus of corporate regulation changed. An era of extreme conservatism gripped the nation. Carter began deregulationofafewindustriestopropupasaggingeconomy,feelingtheaftereffectsofOPEC(seethechapter on the 60s). In the 1980 Presidential race, Reagan ran on a platform of deregulation. If Carter began limited deregulation,theReaganadministrationthrewopenthefloodgates.Thelastdyinggaspinfavorofregulation of corporations came in 1984 when the judge ordered ATT to be broken into eight Regional Bells in an on goingmonopolycase. Coupledwiththeearliergrievouscourtrulingofequatingmoneyasfreespeechandthereductioninthe toptaxratesforindividualsandcorporation,corporationswerefreetobuythepoliticiansoftheirchoice.The resultshavebeenahostofnewbillsenactedbyCongressgrantingcorporationsmorecorporatewelfare,less regulation, more power and more rights. With the top tax rates reduced to a mere 31 percent, corporate executives soon reaped the benefits of exorbitant salaries and benefits at the expense of the employees. Employees became expendable and a new industry was born overnight, the temporary employment firms. MeanwhiletheCEOsofcorporations soughtcontrolofcorporateboards,furtherincreasingtheirempireand concentratingtheirpower. Theresultofthederegulationofthe1980sand1990sisliterallypunctuatedwithdismalfailures.Theerais markedinthebeginningbyamultibilliondollartaxpayerbailoutofthesavingsandloanindustry.Formuchof the1980s,thesavingsandloanbailoutwasablackholefortaxpayershardearneddollars.Theindustryhad been deregulated and gambled on highinterest junk bonds and foreign loans. When the junk bond market collapsed,aswellastheforeignloans,theindustrywasdevastated.Falloutfromtheresultingcarnageledto theKeatingFiveandMilkentrials.KeatinglobbiedCongress,heavilypromotingderegulationofthesavingsand loans,butintheendLincolnSavingsandLoanwentbankrupt,asdidthereputationofthefivecongressmen mostheavilyinvolvedwithhim.Milken,thejunkbondking,faceda98countindictment. Theendresultofthesavingsandloanscandalandofthejunkbondmarketwentfarbeyondthetaxpayer bailout.Thejunkbondswereusedtofinanceleveragedbuyouts,furtherconcentratingpowerinfewerhands. In addition, many investors in junk bonds found themselves empty handed with worthless paper or, if they

werelucky, perhapssawtheirinvestmentreducedtofifteencentsforeverydollartheyinvested.Inthe end, noneoftheperpetratorsofthefailedsavingsandloansfacedserioussentencing.Milkenwasfinedheavilyand sentencedtoashortprisonterm,hisfortunesomewhatreduced,buthestillwasleftamultimillionaire. Evidenceexiststhatin1988PresidentialcandidateGeorgeBushwasimplicatedindelayingtheclosureof SilveradoSavingsandLoanuntilaftertheelection;hissonNeilwasontheboardofSilverado.[10] Perhaps,themostdamagingaspectofthejunkbondfiascowasthespawningofamaniaofmergers.Even morethanadecadelater,mergersarecontinuingunabated.JustasBarlettandSteeledetailedin1992,mergers havecontinued.ThelargecorporationsthatreceivedtaxbonanzasfromtheReaganadministrationunderthe disguise that lower taxes would spur growth didnt invest their newfound wealth in research, instead they bought out smaller corporations. Moreover, with each new merger and buyout, power and wealth was concentrated.Fortheemployeesitmeantmassivelayoffs.CongressandtheJusticeDepartmenthavebothbeen comfortably asleep at the wheel, allowing corporations broken apart to remerge together in the cases of a coupleoftheBabyBellsandExxonandMobil. Anotherofthefirstindustriestobederegulatedwastheairlines.Ithasonlybeenmarginallysuccessful,if at all. Yes, fares did come down, but at a very high price of safety. Delays are more likely than on time departures and arrivals. Luggage is lost or damaged all too frequently. It is commonplace to now hear of anotherairlinecrashwithpossiblyahundredormoredeathsresulting.Yetstudiesofairplanecrashesreveal thatmostdeathsarenottheresultoftheimpact.Ratherthedeathsaretheresultofexcessivelyweakseats.On impact,theseatstearlooseandthepassengerispropelledforwardat120mph.Theluckyonesmayindeedbe killedwhentheyarethrownagainstthebulkhead.Moreoftenthannot,theirlimbsorspineisshatteredand, unabletomove,theyperishintheflamesorfromthetoxicfumes.TheFAAhasknownforyearsoftheweak seat design. In fact, the seats in your Honda Civic or Yugo are stronger. Car seats generally are capable of standing up under the strain of 20G forces, those on the airlines only 9Gs.[11] Now how is that for deregulation? However,theFAAwashobbledfromtheverybeginningbyCongresswithadualmandate:onetoregulate theindustry,andtwotopromotetheindustry.OnlyafterthecrashofValuJetdidCongresschangethisdual mandate of the FAA. Nor is it proper to place the blame on the FAA alone for air safety problems. The real problemlieswithCongressthatcreatesatoothlessagencytoplacatethepublic.Whydoestheagencyneeda congressionalbilltorequirestrongerseats?Aregulatoryagencyshouldbeallowedtoimplementreasonable controlsoveritscharges.However,timeandagainCongresswillcreateanagencyasaresponsetoaproblem withlittleornoauthoritytocompleteitsmission. TwootherexamplesaretheEPAandOSHA.InrecentyearsCongresshasblockedplannedimplementation ofstrongernewstandards.InthecaseoftheEPA,itwasthefineparticulates.InthecaseofOSHA,itwasnew standardsforrepetitive motion.Inshort,thesetwoagencieshave been usedbythe Republicans forpolitical football.Nixonusedbothagainsthispoliticalenemies.TheReaganadministrationmadeamockeryoftheEPA byappointingaformeremployeeoftheCoorsfamilyaswellasthatoftheentireDepartmentofInteriorheaded byJamesWatt.ThefullextentofthecorrupttieswithcorporateAmericaundertheReaganadministrationwill bedealtwithinalaterchapter. The Reagan transition team in 1980 went far beyond the normal bounds of corruption. Reagan turned a blindeyetowardsethicswhenitconcernedhistransitionteam.ByfarReaganassembledthelargesttransition teamofanyPresidentthusfar.Manyhadobviousconflictsofinterest,andtherequestsfromvariousmembers ofReaganstransitionteamdidnotstopwithinprescribedguidelines.Carterappointeesrefusedtoturnover lists of prospective enforcement cases to a member of the transition team that just happened to be an independent oil producer and his deputy, whose firm represented Standard Oil of California. At the Labor Department, Reagans deputy team leader had filed a friend of the court brief with the Supreme Court challengingtheenforcementofOSHAlaws.Suchconflictswerevisibleineverydepartment.Inshort,Reagans transitionteamwasgivenalicensetolootfortheircorporatebenefactors.[12] EversincetheerroneousSupremeCourtdecisiontoequate moneywith freespeech,thepoliticianshave been placed in the pocket of corporate America. Campaign finance was an issue in the 2000 elections and remains an issue in Congress, despite the best efforts of George W. Bush and the leaders of the Republican Party to kill it. The Bush administration is rabidly probusiness, as evident from his appointment of Gale NortontoheadoftheInteriorDepartment.NortonwasaprotgeofnoneotherthanJamesWatt.Additionally, BushhasshownhisallegiancetocorporateAmericaintheCaliforniaelectricalpowershortage.Detailsofthe bogusCaliforniapowershortageandtheBushadministrationwillfollowinalaterchapter.

ThisleavestheAmericancitizenasapawnofcorporateAmerica.Whilethecorporatemediablaresreport afterreport ofcrimeinthestreets,therealcrimestoryofcorporatefraudgoesunreported.In1998the FBI estimated the annual cost of robberies and burglaries at $3.8 billion, the annual cost of corporate or white collarfraudhasbeenplacedinthehundredbilliondollarrange(notetheFBIdoesnotestimatecorporateor whitecollarfraud).Theestimateofhealthcarefraudalonewasplacedatbetween$100$400billiondollars. Securitiesfraudisintheminorleaguesatonly$15billiondollars.[13]Thetwofigurespointout one glaring and unmistakable fact: regulation works. The securities market is tightly regulated, on the other hand the healthcarefieldiswideopenwithlittleeffectiveregulationandwhatdoesexist,isprimarilyonthestateand locallevels.TheSavingsandLoanscandalalonecostUStaxpayersbetween$300and$500billion. TheFBIalsoreportedin1998that19,000Americansweremurdered;incontrast56,000Americansdied fromjobrelateddiseasessuchasblacklung.NoestimateisevenavailableforthenumberofAmericanswhose lives were cut short from cancer from environmental pollution or workplace exposure. Federal contractors routinely violate the Wagner Act and other laws, but are still allowed to continue to provide government services. However,Americansandindeedalloftheworldspeoplefaceanevengreaterthreattotheirfreedoms.The threat comes from the attempt to take fascism worldwide through the WTO and socalled free trade agreements.Thiswriterisnotanisolationist,infactIwholeheartedlyendorsefreetrade.However,freetrade means one thing and one thing only, a reduction in or elimination of tariffs. Any trade agreement that goes beyondthoseboundariesisjustanothersteptowardsglobalfascismandcorporaterule. Infreecountries,thelawsaredeterminedbythepeopleorrepresentativesofthepeople;theyarenotset bysomecorporatefiat.However,thatisnotthecasewiththerecenttradeagreementssuchasGATT,NAFTA, the now defeated MAI or the present negotiations on GATS. All of these socalled trade agreements contain provisions that either overwrite existing labor and environmental laws or mandate payment to any corporation that perceives itself to be injured by public policy and the laws of a sovereign nation or both. Further, these so called free trade treaties set up corporate tribunals as the final arbitrator in any disputes, renderingthecourtsystemandnationalsovereigntymoot. ForinstanceunderGATT,theUSwasforcedtoacceptshrimpimportsfromThailand.Theimportshadbeen bannedunderUSlawbecausetheThailandlawdidnotrequireshrimperstouseprotectivenetsforseaturtles. Presently the US is bound by NAFTA to begin allowing Mexican tractortrailer rigs to enter the country unrestricted.Atbest,theonlyprotectionensuringtheserigstobeuptoUSsafetystandardscomesfromstate highwaypatrols. However, under these so called free trade agreements Canada and Mexico both have suffered more grievous blows. Under NAFTA Canada was forced to pay a multimillion dollar ransom to USbased Ethyl Corporation. In 1997, Ethyl sued Canada under the provisions in Chapter 11 of NAFTA. Canada had the foresight to ban the hazardous and toxic MMT gasoline additive. Ethyl claimed that such a ban on MMT constitutedanexpropriationofitsassetsinCanadaandsought$250millionindamages.In1998,theCanadian government, under extreme pressure, removed the ban on MMT and settled the suit with Ethyl for $13 million.[14] Mexicosufferedasimilarindignityin1996.TheMexicanstateofSanLuisPotosirefusedtoallowUSbased Metalclad Corporation a permit to reopen its waste disposal site. The state governor ordered the site closed downafterageologicalsurveyshowedthesitewouldcontaminatethelocalwatersupply.Thegovernorthen wentfurther,declaringthesitepartofa600,000ecologicalzonetoprotectthewatersupply.Metalcladsued under Chapter 11 of NAFTA seeking $90 million in compensation. Eventually the case was settled with an awardtoMetalcladfor$17million.UnderGATSMexicowouldhavefacedadditionaltradesanctions. The similar feature of both the Canadian and Mexican cases is that the awards were granted under a tribunal set up under NAFTA. The tribunal is of course beholden only to the multinational corporations. CanadianorMexicancourtsandlawswerevoidedinbothcases. Incredibly under the rules of the current talks on GATS (General Agreement on Trade in Services) such injusticesasthetwocaseslistedabovewouldexpand.GATScouldpreventCanadafromexpandingitsMedicare programtoincludeanationaldrugorhomecareprogram.[15]SuchexpansionofCanadashealthcaresystem could trigger suits such as the Ethyl or Metalclad suits discussed above. GATS has defined services very broadly.UnderGATSthefollowingwouldbeclassifiedasservices:

business services, communication services, construction services, distribution services, financial services, recreation, tourism and travel, transport services, education, health services, water supply, electricitysupply,wastedisposal[16] NotethatunderthetermsofGATS,anyexpansionoftheNationalParkSystemcouldtriggeralawsuitforcing thetaxpayertopaysomemultinationalcorporationmillions.Likewise,anyexpansionofacityspublicwater supplyorwastedisposalwouldlikewisetriggerlawsuits.Thereforecouldcitiesthatchosetoimplementalight rail system to ease traffic congestion face similar sanctions? Further under the current rules of GATS, any increaseinfundingorexpansionofadditionalprogramsinourpublicschoolscouldtriggerlawsuits.Underall cases,thesuitswouldbebroughtbeforeatribunalestablishedbyGATSandtohellwiththeUScourtsystem. Presently,eveninthecurrentslumpintheUSeconomy,overonetrilliondollarssoughtoutnewcountries toinvestin.Thedangerposedbythemultinationalcorporationsisimmenseandveryreal.Thepresenttrade agreements have little to do with increasing trade. In fact, the trade agreements sole purpose is aimed at eliminating any risk of capital by provisions requiring compensation for government actions to protect the publicandenhancepublicpolicy.Theyareineffectthefirststepstoestablishglobalfascismbyoverwritingthe lawsofsovereigncountriesandtoestablishacorporateruledworld. ThereadershouldbyallmeansbealarmedatsuchagreementsanddemandthattheUSpulloutofanysuch talks and rescind any trade agreement with such provisions. The proposed MAI treaty was killed and is effectivelydeadfornow.However,theWTOisstillactiveandMAIhasnowbeenreplacedwithatreatythatis just as dangerous, GATS. Calling such treaties free trade agreements is nothing more than a feelgood euphemism keyed to generating support and cloaking the real danger hidden in these agreements. There is only one sure method of insuring such agreements are killed for all time, a constitutional amendment that restricts the activities of all corporations. Under our present Constitution, Congress has been given the sole authorityinregulatinginterstatecommerce.Suchauthoritycouldbeusedtorequireanycorporationtoobtain acorporatecharterthatwouldbelimitedbytheproposedamendmentfoundinthelastchapter. Theerosionoflawsgoverningcorporationsandthenewroundsoftradetalkshasplacedthepeopleofthe UnitedStatesandtheentireworldinjeopardyof losingtheirfreedomsto aglobalfascismofcorporaterule. FranklinRooseveltdescribedfascismbest: The liberty of a democracy is not safe if the people tolerate the growth of private power to a point where it becomes stronger than their democratic State itself. That, in its essence, is Fascism ownershipofgovernmentbyanindividual,byagrouporbyanycontrollingprivatepower.

Notes
[1] [2] [3] [4] [5] [6] [7] [8] [9] [10] [11] [12] [13] [14] [15] [16] [17] TheCrisisofGlobalCapitalism,GeorgeSoros,PublicAffairs,1998,p102. CorporatePowerInAmerica,RalphNader&MarkGreen,Brossman,1973,p68. JohnMarshall,JeanEdwardSmith,HenryHolt&Co,1996,p436. http://www.constitution.by.net/Pa/PaConst38.html http://www.legislature.state.al.us/misc/history/constitutions/1875/1875_14.html http://legisweb.state.wy.us/titles/98titles/title97.htm http://www.ratical.com/corporations/CAconstArt12.html Thesourceforthiscaseandalltheonesfollowingcomesfromthesamesource. http://www.endgame.org/primerhistory.html http://www.courts.state.wi.us/history/famous_cases.htm http://www.kings.edu/twsawyer/frankly/SS1.html TheBuyingofCongress,CharlesLewis,Avon,1998,p184198. WhenthePentagonwasforSale,AndyPasztor,Scribner,1995,p4172. http://www.tompaine.com/features/2000/05/15/ http://www.rollcall.com/ http://www.wtoaction.org/greenfield2.phtml http://www.theglobeandmail.com,MarkMacKinnon,February19,2001. http://www.heureka.clara.net/gaia/gats.htm

CHAPTER 3: THE ROARING 20S AND THE ROOTS OF AMERICAN FASCISM

ORMOSTAMERICANStheRoaring1920swasadecadeofspeakeasies,bootlegliquor,flappergirls,and theCharleston.Withoutadoubt,the1920swasthemostrepressivedecadeofthe20thCentury.Itwasa decade marked in the beginning by the Palmer Raids of 1919, and at the end with the massacre of the BonusMarchersinthemidstoftheGreatDepression. Perhapsthereisamisunderstandingaboutthe1920sbecausetheAmericanpsycherecallsonlytheapple pie culture of repressive times. As a society, we fail to recall the brutal repression visited upon the labor movementorthemanyraceriotsofthedecade.Ourcollectiveviewofthe1950s,anotherdecadeofrepression, is much the same and consists of images of Leave it To Beaver and Ozzie and Harriet. Few recall the madnessofMcCarthyismorimagesoftheescalatingColdWar. Asasociety,weareledtooverlookgreatthreatstoourfreedomsthattookplaceduringrepressivetimes.If thePalmerRaidsorMcCarthyismhadtakenplaceinanycountrybehindtheIronCurtain,wewouldhavebeen quicktocondemntheactionsasmassivepurgesofdissidents. The 1920s held a bountiful promise of progress at WWIs end. The US could have seized the chance to become a world power and leader. Instead, the nation retreated into itself, and rejected President Wilsons LeagueofNationsinfavorofisolationism. Newtechnologiesandindustrieswerebustingdownthedoors.Autoswerereplacingthehorseandbuggy. Telegraphswerebeingreplacedwithtelephones.Thekerosenelampwasbeingreplacedwithelectriclight.Air travel was now a reality. However, it was a decade that didnt live up to its promise. The decade ended in a spectacularfailureof laissezfaireeconomics,thestockmarketcrashof1929.Theresultingdepressionwasso severeitleftanindeliblemarkfortherestoftheirlivesonthosethatlivedthroughit. Every major war this country has fought has been followed by a period of repression. Certainly, the aftermathoftheCivilWarfitsthepattern.McCarthyismfollowedWorldWarIIandcoincidedwiththeKorean War.EvenwithVietnam,weobservedthephenomenon,althoughinthiscasetherepressionwassplit.Inone part,therepressionoccurredduringthewarwiththeexposureofCOINTELPRO,andtheotherpartfollowedin the1980swiththeadventoftheReaganadministration.OntheveryheelsofWorldWarI,theinfamousPalmer Raidsfollowed. The repression that followed can best be summarized by the four prime targets of Army Intelligence NetworkLieutenantColonelRalphVanDeman:theIWW,opponentsofthedraft,socialistsandblacks.These groupswerebrutallyrepressedthroughoutthe1920s.Thedecade,infact,ispunctuatedwithmassacresand raceriots.In1917,evenbeforethewarsend,VanDemanhadalreadyopenedafileonMartinLutherKings maternalgrandfather.[7] VanDemanwasanantiSemite,andiscreditedwithestablishingmilitaryintelligenceaspartofthemodern army.MostofficerswithintheMilitaryIntelligenceDivision(MID)atthetimewerealsovirulentlyantiSemitic. MIDofficerspromotedeveryantiJewishpublication,includingtheProtocolsoftheEldersofZion,asfact.It wascommonlyacceptedwithintheMIDthatcommunismandJewswereoneandthesame.TheantiSemitic aspectofmilitaryofficersextendedbeyondMID,andwasduesubstantiallytoWestPointsteachingofeugenics andantiSemitism. ThealmostuniversalantiSemitismandracismofmilitaryofficersallowedthemtooverlookthepogroms ofthe1920sinPolandandothercountries.Suchbeliefswerealsoacontributingfactortothepassageofthe 1924billthatrestrictedimmigrationofundesirables.Indeed,theantiSemitismofmilitaryofficerswouldlast untilwellafterWWII,andwasadecidingfactorinthefailureoftheUnitedStatestooffersanctuarytoJewish refugeesinthelate1930s.ItwasalsoacontributingfactortothepoortreatmentofJewishsurvivorsofNazi concentrationcamps. During WWI, fear that the Germans would exploit Negro unrest left Van Deman preoccupied with black churchesascentersofsedition. However, the most sinister aspect of the Van Deman network was the encroachment of the military into civilianaffairs.Federaltroopswerebroughtoutseveraltimesduringthe1920stointercedeincivilianevents. Forexample,federaltroopswereusedtobreakaSeattlestrike.Theencroachmentstillcontinuestoday.Aslate as1947,militaryintelligencewasstillbeingdirectedattheverysametargetslistedbyVanDeman,evidenced bytheinclusionofMartinLutherKing,Jr.intothe111thMilitaryIntelligenceGroupsfiles.

Part 1: I.G. Farben

Thesepostwarperiodsofrepressionaretheverytimesourfreedomsaremostimperiled.Suchrepressive timesareonlyanaturalextensionofthewar,astroopsaredeactivatedandreturningsoldiersseekworkinan economy that is shifting from war to peace. Unemployment usually rises, as many of the deactivated troops have little or no peacetime skills. Additionally, in the case of WWI, inflation ravaged the nation as wartime controlswerelifted,addingfurthertotheeconomicwoesofreturningveterans. However, the real danger came from troops that had been engaged in intelligence. These former spies soughttoplytheirtradeinthegovernmentorprivatesector.FollowingtheCivilWar,manyUnionspieswent toworkintheprivatesectorasunionbusters.AfterWWI,thenewlyformedAmericanLegionwasdeployedin union busting. Even more sinister, the Legion went much further, seeking to destroy political dissent and anyoneleftofcenter.FollowingWWII,nativefascistswereinstrumentalinpassingantiunionlegislation,such astheTaftHartleyAct andrighttoworklaws. TheMcCarthywitchhuntstook onanantiunion aspectwith theparticulartargetingoftheScreenActorsGuild. Theseandotherfactorswillbeexploredingreaterdetailintheremainderofthisandfollowingchapters. Theremainderofthischapterwilllookathowtherepressionofthe20sbroughtaboutprotofascistgroups, andhowfascismcreptintooureconomy. There is little doubt that after the United States entered the Great War, German agents were actively engaged in sabotage in the US. The Kingsland fire of January 11, 1917 was traced to sabotage by a German agent, Fiodore Wozniak, dubbed the Firebug. In that one act of sabotage, 275,000 artillery shells and huge storesofTNTandothermunitionsvaluedatover$17millionweredestroyed.[1] Althoughdestructionofwarplantsandmunitionshinderedthewareffort,theseactspaledincomparison to the economic sabotage by the corporate warlords of I.G. Farben. The cartel agreements that American corporations had with I.G. Farben were a stranglehold on munitions production, as well as many consumer items. Beforelookingatthecartelagreementsandhowtheyhinderedbothwars,somebriefhistoryisrequired. Often rather obscure events determine future world peace and war. Events starting in chemistry labs have played enormous roles leading up to both world wars. First, Germany has always been a country short of natural resources. Although it has ample supplies of coal, Germany lacks highgrade iron ore, and other minerals. The soil is not particularly fertile, and Germany has traditionally been unable to feed its people withoutimportingfood.ThisfactoraloneplayedadominantroleinHitlersquestforlivingspacetotheeast. ThesecondfactorthatcomesintoplayisthelocationofGermany.Itsonlyaccesstotheworldsoceansis throughtheNorthSea.Thelordandmasterofthehighseas,England,couldeasilyblockadethisroute.Hence, anyfactorthatdecreasedGermanysdependenceonimportsincreaseditsabilitytowagewar,andchallenge EnglandsdominanceoverallEurope. Germanys chemical industry developed in the 19th Century. English chemists were the first to discover thatpigmentscouldbeproducedfromcoaltar,butfailedtorecognizethesignificance.Germanindustrywas quicktocapitalizeonthedevelopment,andsoondominatedworldpigmentproduction.TheworkofGerman chemists on coal tar launched a new branch of chemistry, organic chemistry. Along with pigments, a host of newproductscamegushingforth;thefirstsulfadrugs,plasticsand,bytheadventoftheSecondWorldWar, evenrubber. Along with the many useful and beneficial products that could be developed from this new branch of chemistry, a sinister side arose as well. One of the developments that had a direct impact on WWI was the Haberprocesstoproducenitrates.PriortoGermanyperfectingit,GermanywasdependentonChilesnitrate deposits.WiththeHaberprocess,nitratescouldbeproducedfromnitrogenintheair.Germanyswarmachine was no longer dependent upon shipments from Chile that could be blockaded by the British Navy. As war approached,amoresinistersideofthenewchemistrywasdeveloped:poisongas. WWI was the first war in which technology overpowered the front line soldier. The chemistry labs of Germanyplayedapivotalroleinitsabilitytowagewaronitsneighbors.Theselabswouldplayanevenlarger roleinWWIIwiththedevelopmentofproducingbothgasolineandsyntheticrubberfromcoal. At the center of the chemical arms production was I.G. Farben. Farben was a product of cartelization formed from six dye companies: Badische Anilin & Soda Fabrik (BASF), Farbenfabriken vorm (Bayer), Farbwerkevorm(Hoechst),AktiengesellschaftfurAnilinfabrikaten,LeopoldCassela,andKalle&Co.Thebigsix werecompletelymergedintoI.G.Farbenin1916.[2]InthetenyearsprecedingWWI,I.G.Farbenrelentlessly pursuedapathenhancingGermanysabilitytowagewar.

By the time WWI broke out, I.G. Farben controlled the new worldwide chemical industry through cartel agreements and patents. Germany, particularly through I.G. Farben, aggressively sought patents in foreign countries,thenrefusedtograntlicensestocorporationsinthatcountry.Thisshiftedallaspectsoftheindustry totheGermanhomeland. In light of recent court decisions allowing corporations to patent genes, and the resulting genetically engineered food crops, one would be well advised to study how Germany used patents to gain worldwide controloverthefledglingorganicchemicalindustry.JosephChamberlainsummedupEnglandslossofthecoal tarindustryin1883: It has been pointed out especially in an interesting memorial presented on behalf of the chemical industrythatunderthepresentlawitwouldhavebeenpossible,forinstance,fortheGermaninventor ofthehotblastfurnace,ifhehadchosentorefusealicenseinEngland,tohavedestroyedalmostthe wholeironindustryofthiscountryandtocarrythebusinessbodilyovertoGermany.Althoughthatdid nothappeninthecaseofthehotblastindustry,ithadactuallyhappenedinthemanufactureofartificial colors connected with the coal products, and the whole of that had gone to Germany because the patenteeswouldnotgrantlicenseinthiscountry.[3] LloydGeorgereiteratedChamberlainsviewin1907: BigforeignsyndicateshaveoneveryeffectivewayofdestroyingBritishindustry.Theyfirstofallapply for patents on a very considerable scale. They suggest every possible combination, for instance, in chemicals,whichhumaningenuitycanpossiblythinkof.Thesecombinationsthesyndicateshave not triedthemselves.Theyarenotinoperation,say,inGermanyorelsewhere,butthesyndicatesputthem in their patents in obscure and vague terms so as to cover any possible invention that may be discoveredafterwardinthiscountry.[4] ThesequotesleavenodoubtastothedestructivenatureofthecartelagreementsandthepatentssoughtbyI.G. Farben in England. Nor is there any doubt over how such cartel agreements hindered US war efforts during WWI. During the war, numerous I.G. front corporations were seized under the Trading with the Enemy Act. Cartel agreements between American corporations and I.G. Farben created monopolies and spheres of influenceeliminatinganycompetition.Ineffect,thecartelagreementswereasecondwaveofrobberbarons. Thistime,however,therobberbaronsresidedinGermany,andstructuredtheagreementstomaintaincontrol over American corporations, even to the extent of limiting production of war material. In effect, the cartel agreementswerenothingshortofanattempttoputcorporateruleaheadofgovernment. ThereaderconcernedoverrecenttradeagreementssuchasNAFTA,GATT,thefailedMAIandGATSthat places the rights of corporations above and beyond the reach of the government and people would be well advisedtostudythesecartelagreements.Theinherentdangerofallowingcorporationstorulewillbereadily apparent in such a study. All the trade agreements mentioned place the rights of corporations ahead of government, public policy and the people. Furthermore, all these agreements contain clauses that establish tribunalsasthefinalarbitratorindisputes,bypassingthecourtsystemsofthesignatorycountries.Nogoodcan everbeachievedfromsuchfolly. EvenbeforetheNaziscametopower,thecartelagreementsformedavitalpartofGermanysplantowage war, and extract revenge for the Treaty of Versailles. The willingness of corporate Americas leaders to re establishcartelagreementswithI.G.Farbenduringthe1920s,andtheirsubsequentsupportforfascistgroups inthe1930s,formsthebaseoffascismintheUnitedStates. Although, there were literally dozens of companies seized during WWI for trading with the enemy, my focuswillnotbeonthoseseized.Rather,thefocuswillbeontheeaseandspeedwithwhichI.GFarbenwas abletoreformtheircartels,aidedbythelaissezfaireeconomicpoliciesofHarding,CoolidgeandHoover. During the war, corporations reaped fat profits. With the lifting of wartime controls in 1919, business leaders craved a chance to get back to normal. Prices had been frozen during the war, and before the war Teddy Roosevelt had pursued a policy of breaking up monopolies. The only threat to reestablishing their monopolies and domination of the economy came from the new labor movement and communism. In the aftermathofthe1919RedScare,theprobusinesscandidate,WarrenHarding,waselectedPresident,setting thestagefortherebuildingofthecartels. WorldWarIshouldhavetaughtthealliednationsthatGermanyusedinternationalcartelsasitsspearhead of aggression. The German military mind long understood the concept of total war. The father of modern Germanmilitarism,KarlvonClausewitz,bestsummarizedtheconcept:

War is no independent thing, the main lineaments of all strategic plans are of a political nature, the moresothemoretheyincludethetotalityofWarandState.Disarmyourenemyinpeacebydiplomacy andtradeifyouwouldconquerhimmorereadilyonthefieldofbattle.[5] ThisphilosophyofwarandpeacebecameacornerstoneofGermanyspoliticalandeconomicinteractionswith othernations.ThehistoryofI.G.inthetwentiethcenturyisoneofsupportforGermanmilitaryadventurism.It consistently advanced German military plans, and subordinated its own financial interests to German nationalisticaims. Withtheinkhardlydryonthearmisticeagreement,TheNewYorkTimesreceivedadispatchfromitsBerlin correspondentonDecember1,1919stating: ThefirmscomposingtheGermandyetrusthavedecidedtoincreasetheircapitaltotheextentwithout parallel,Ibelieve,inthehistoryofGermanindustry.Thetrustwhichconsistsofthreegreat andfour minorconcernsintheindustry,valuedat,roughly,15,000,000,000marks,isextendingfortworeasons: it is determined to reassert German supremacy in the dye industry; in the second place, there is the questionofnitrate,soimportantfortheagriculturallifeinthecountry. The trust is aiming at making the fatherland independent of foreign supplies and to increase productionsothatitwillbeabletoexportlargequantities.[6] TheFirstWorldWarpointedoutdeficienciesinGermanysarmor.I.G.sactivitiesintheinterwarperiodmust beunderstoodtounderstandhowUScorporationswillinglyhamperedthewareffortinthe1940s.From1919 onward,I.G.pursuedapathofreestablishingitsdominance.I.G.Farbencontinuedtousethesamemethodsit had used successfully in the first war as well as newer forms of the cartel. Several I.G. developments in the interwarperiod,suchasBunarubber,theproductionofgasolinefromcoal,aswellasaluminumandtungsten carbideproduction,wouldfigureprominentlyinWWII. ThemindsetofI.G.,anditsuseofpatentsandcartelstoestablishingaGermanempire,isbestillustrated withtheexampleofBayer205.Bayer205,orGermanin,wasannouncedin1920asacureforsleepingsickness. Throughindirectchannels,I.G.madeanoffertotheBritishgovernment:toexchangethesecretofGermaninfor thereturnofGermancoloniesinAfricalostinWWI.TheBritishgovernmentrefusedtheexchange.However, theresourcefulnessofI.G.waspreservedinaBritishmedicalJournalin1922: AcuriousillustrationofGermandesire,notunnaturalinitself,toregainthetropicalcolonieslostby thefollyoftherulersoftheGermanEmpire,isaffordedbyadiscussionwhichtookplaceatameetingof the German Association of Tropical Medicine at Hamburg. The Times correspondent in Hamburg reportsthatoneofthespeakerssaidthatBayer205isthekeytotropicalAfrica,andconsequentlythe key to all the colonies. The German Government must, therefore, be required to safeguard this discoveryforGermany.Itsvalueissuchthatanyprivilegeofashareinitgrantedtoothernationsmust bemadeconditionalupontherestorationtoGermanyofhercolonialempire.[7] The intent of I.G. and Germany could hardly be masked in such a report. An even more ominous warning appearedin1925: In open violation of the Treaty of Versailles the Germans shipped munitions to the Argentines. Rottweil(I.G.swhollyownedsubsidiary)stillmakesandsellsexcellentmilitarypowders,andGerman factoriesformunitionshavebeenbuiltoropenlyofferedtobuildinSpain,Argentina,Mexico,etc.[8] Article170ofthetreatyspecificallyprohibitedGermanexportorimportofarmamentsormunitions.Boththe British and American State departments were aware of the violation. British Imperial Chemical Industries refrainedfromlodginganyprotest,asitwaslockedintoacartelagreementwithFarben.America,lockedinthe gripofisolationism,simplyignoredtheviolation. In 1926, the German army formed the Economic High Command. Robert StrauszHupe summed up its expresspurposeasfollows: Studying the deficiencies of German economy and laying plans for transforming it into Wehrwirt schaftRapidconquestsalonecouldprovidenewresourcesbeforeGermanysreserves,accumulatedby barter,ruthlessrationing,andsyntheticchemistry,hadbeenexhaustedintheinitialwareffort. Thesenewresourcescouldthenbepouredintothewarmachine,rollingontoeverlargerterritorial conquests,andaslongasitkeptonrolling,theeconomyofgreaterspaceneedneverfearacrisis.[9]

I.G. had direct and indirect communication channels opened with the Economic High Command. Farben policies were adjusted to accommodate the High Commands plans. In 1932 Colonel Taylor of du Pont reported: OneofthemotivesbackoftheFrenchproposal,thatallcountriesshouldestablishaconscription,isto upsetthepresentGermansystemofhandlingtheirReichswehr.TheReichswehrislimitedto100,000 menof12yearenlistment,anditwouldappearreasonabletosupposethatthereshouldbeatpresenta number of soldiers around the age of 33 or 34; the fact is that when one meets a soldier of the Reichswehrheisayoungmanintheearlytwenties,anditisprettywellacceptedthatthereareseveral men available under the same name and hence training much larger number of men than permitted.[10] During the 1920s there were over a hundred secret treason trials in Germany of journalists and others who revealedthetruth.QuotingDr.H.C.EnglebrechtandF.C.Hanighen: It would seem then that despite the Versailles treaty that Germany is again a manufacturer and exporter of arms. This interference is confirmed by various incidents from the past ten years. There wastheBullerjahncaseof1925.OnDecember11,1925WalterBullerjahnwassentencedto15yearsin prisonfortreason.Thetrialwasheldinsecretandthepublicwasexcluded.Boththecrimewithwhich thecondemnedwaschargedandthenameoftheaccuserwerekeptdeepanddarksecrets.Afteryears of agitation by Dr. Paul Levi and the League for Human Rights, the facts were finally disclosed. The accuserwasPaulvonGontard,generaldirectoroftheBerlinKarlsruheIndustriewerke,thesameman whousedtheFrenchpressin1907inordertoincreasehismachinegunbusiness.Gontardhadbeen establishing secret arsenals, contrary to treaty provisions, and this fact was discovered by the Allies. Gontard disliked Bullerjahn and had serious disagreements with him. In order to get rid of him he chargedhimwithrevealingtotheAlliesthefactthatGontardwassecretlyarmingGermany.Thiswas termedtreasonbythecourtandBullerjahnwascondemned,althoughnotashredofevidencewasever producedtoshowhisconnectionwiththeAllies.Theexposureofthefactsinthecasefinallybrought thereleaseofBullerjahn. AlittlelaterCarlvonOssietzky,thecourageouseditorofthe Weltbuehme,wasconvictedbyaGerman courtoftreasonbecausehehadrevealedmilitarysecretsinhisjournal.Thesecretshehadpublished werecloselyrelatedtothesecretrearmingofGermanycontrarytotreatyprovisions. ThereisalsosomeevidencethatGermanyisimportingarmsandmunitionsfromothercountries.Ina confidentialreportoftheexportsofSkodafor1930and1931,classifiedbycountries,Germanyappears as importer of comparatively large amounts of rifles, portable firearms, aero engines, nitrocellulose, dynamiteandotherexplosives.[11] Thepreviousquotesshouldhavealertedthe astutereadertoonesimplefactthathasbeenblurredbytime: Hitlerhadthesupportoftherulingclassasearlyas1923.Thereadershouldrecall,fromChapter1,thatHitler wasinstructedtoattendameetingofwhatevolvedintotheNazipartybyhiscommandingofficer. Hitlerinfact,wasguiltyofafarmoreseriouscrime,armedrebellion,butreceivedamuchlightersentence thanBullerjahn.Hitlerservedlessthantwoyearsinprison.NorwasHitlersimprisonmentparticularlyharsh. Amorefittingdescriptionwouldbeofahotelwithroomservice.Noamountofpropagandacancoverupthe difference in fate of Hitler and Bullerjahn. Without the support of the elite in Germany, Hitler would have sufferedthesamefateasBullerjahn. AtthetimeoftheBeerHallPutsch,theNaziswereonlyaminorparty.Infact,thereasontheputschfailed wasduetoalackofpopularsupportHitlerhadcountedon.Asalreadynoted,therewerehundredsoftrialsfor treason with the defendant receiving harsh sentences. None were released from prison early without the specialassistanceofoutsideworldopinion.FewpeopleoutsideofGermanyhadeverheardofHitlerin1923. InamemodatedMarch22,1932afullyearbeforeHitlerassumedpowerthefilesofJ.K.Jenny,ofthe ForeignRelationsDepartmentofduPont,revealsthatI.G.andotherGermanindustrialistsfinancedHitler: ItisamatterofcommongossipinGermanythatI.G.isfinancingHitler.OtherGermanfirmswhoare also supposed to be doing so are Krupp and Thiessen. How much truth there is in the gossip we are unabletostate,butthereseemstobenodoubtwhateverthatDr.Schmitz(directorgeneralofI.G.)isat leastalargecontributortotheNaziParty.[12]

ThepreviousseriesofquotesclearlyestablishesthecomplacencyofthethreeAmericanadministrationsofthe 1920stowardsGermanviolationsoftheTreatyofVersailles. The quotes also establish the everincreasing role of I.G. as an agent of the German government, culminatingwithI.G.supportoftheNazis.Further,thequotesleavenodoubtthattheseadministrationswere awareoftheviolationsaswellastheintentofI.G.toreestablishitshegemony. Isolationistpoliciesofthe1920sRepublicanadministrationswereclearlyadismalfailurethatprovideda fertileenvironmentforrebuildingGermanyswarmachine.ThelastquoteestablishesthatI.G.wasasupporter of the Nazis at least a full year before Hitler seized power. One can only speculate as to when I.G. began to support Hitler, but I.G. had a long history of supporting German nationalism, as the quotes above show. PerhapsthemostalarmingfeatureofthequotesisI.G.sincreasingboldnessandaggressivenessinviolatingthe treaty.Bythemid1920stherewereclearsignsGermanywaspreparingforanotherwar. Even more grievous than the complacency towards to violations of the Treaty of Versailles was the complacencyofRepublicanstotherebuildingofI.G.domestically.Tofullygraspthefullextentofthis,abrief lookattheeconomicenvironmentfollowingWWIisneeded. Wars end saw a US pullback into Fortress America, and the imposition of a strict right wing isolationist policy,despitethebesteffortsofanailingPresidentWilsontobringusintotheLeagueofNations.TheUnited Stateshadtheopportunitytoseizealeadershiproleintheworld,butinsteadretreated. ComparedtoEuropeancountries,fortheUSthewarwasshort,andwedidntsufferthestaggeringnumber of causalities they did. The resulting isolationism was far too widespread to have been caused solely by war losses.Althoughitwenthandinhandwithnativistgroups,theresultingisolationismwentfarbeyondfringe groups.Itwouldbemoreappropriatetodescribetheresultingisolationistfeverasmasspsychosis.Thiswasas muchaproductofnativismasitwasaproductofmediamanipulationbycorporateAmerica. From1900untiltheendofthewarin1918,bigbusinesstookseveralblows.Firstandforemostduringthis timewasthetrustbustingadministrationofTeddyRoosevelt.Second,pricecontrolsenactedduringthewar restrictedcorporateprofits.Senateinvestigationsintowarprofiteeringwouldextendintothe1930s.Finally, unionismwasperceivedasathreatbybigbusiness,andlargelyportrayedaseithercommunismortheproduct ofdirtyforeigners. Tothebusinessleaders ofthetime, gettingbacktonormal meantnothing morethangettingbacktothe days of robber barons, trusts, and cartels free from government intrusion and unionism. The laissezfaire economicsofthethree1920sRepublicanadministrationswaswhatcorporateAmericawasseeking. As indicated in the quotes above, cartel agreements with I.G. Farben were anticompetitive, and used to establishmonopolies.Inessence,anticompetitiveagreementswereusedtoincreaseprofitsoflargerfirmsat theexpenseofsmallerfirmsandtheconsumer.SuchagreementsweretheantithesisofTeddyRooseveltstrust bustingdays,andafreeenterprisesystem. However, to the business leaders of the 1920s, competition was a dirty word. Competition had to be avoided as much as unionism. In the view of leading industrialists of the time, competition was destructive. Thustheempirebuildersofthe1920swereeagertoenterintosuchagreements,andthepoliciesofsuccessive Republicanadministrationswillinglyturnedablindeyetowardsanticompetitivepractices.

Part 2: Economic Warfare and Traitors in High Places

The full extent of I.G. Farbens disruption of the war effort during the First World War can be seen by the numberofpatentsseizedduringthewar.AfterUSentryintothewar,anAlienPropertyCustodian(APC)was established.TheAPCseizedatotalof12,300patents.Ofthese,5,000coveredchemicals,pharmaceuticals,and munitions. Without a doubt, the most crucial problem facing the US during WWI was our dependence on Chile for nitrates.NitratesareessentialformanufacturingTNT,picricacidandotherexplosives.Thedependenceona limited supply of Chilean nitrates was detailed in the 1915 annual report of the Chief of Ordnance. Not only were the shipments vulnerable to German submarine attacks, but many of the Chilean companies were controlledbyGermaninterests. The Germans had eliminated their dependence on Chilean nitrates. With the development of the Haber process,nitratescouldbemadefromatmosphericnitrogen,andby1913Germanyhada10,000toncapacity plant at Oppau. In 1916, Congress appropriated money for the construction of four large synthetic nitrate plants. At the time, there were 250 patents on synthetic nitrogen, all German owned. These patents became subjecttolicenseunderwartimelegislation.AnitrateplantwasconstructedatSheffield,Alabamacosting$13

million.Thisplanthadanannualprojectedcapacityof9,000tonsofammoniaand14,000tonsofnitricacid. The plant proved useless, as the German patents did not contain the composition and preparation of the catalyst.[13] The importance of nitrate production during WWI is comparable to the importance of synthetic rubber productionintheSecondWorldWar.Inbothcases,theGermanscontrolledtheprocessthroughpatentsand cartelagreements. Perhaps one of the more illuminating cases of how I.G. hindered the war effort is the case of Dr. Hugo Schweitzer. Schweitzer was an American citizen, and head of the Bayer Company. He also became head of German espionage in America, and was known in Berlin as No. 963,192,637. Schweitzer was interned after Americasentryintothewar,butwasabletoconductahighlyeffectiveindustrialespionagecampaignbefore that.Thewordsofhissuperior,Dr.Albert,sumupSchweitzerseffortsbest: The breadth of highmindedness with which you at that time immediately entered into the plan has bornefruitasfollows:OneandhalfmillionpoundsofcarbolicacidhavebeenkeptfromtheAllies.Out ofthisoneandahalfmillionpoundsofcarbolicacid,fourandonehalfmillionpoundsofpicricacidcan beproduced.ThistremendousquantityofexplosivestuffshasbeenwithheldfromtheAlliesbyyour contract.Inordertogiveoneanideaofthisenormousquantity,thefollowingfiguresareofinterest: Four million five hundred thousand pounds equal 2,250 tons of explosives. A railroad freight car is loadedwith20tonsofexplosives.The2,250tonswould,therefore,fill112railwaycars.Afreighttrain withexplosivesconsistchieflyof40freightcars,sothat4,500,00poundsofexplosiveswouldfillthree railroadtrainswith40carseach. Of still greater and more beneficial effect is the support which you have afforded to the purchase of bromine.Wehaveawellfoundedhopethat,withtheexclusionofperhapssmallquantities,weshallbe inapositiontobuyupthetotalproductionofthecountry. Bromine,togetherwithchloral,isusedin making nitric gases, which are of such great importance in trench warfare. Without bromine these nitricgasesareofslighteffect;inconnectionwithbromine,theyareofterribleeffect.Bromineisonly produced in the United States and Germany. While therefore, the material is on hand in satisfactory quantitiesfortheGermans,theAlliesareentirelydependentuponimportationfromAmerica.[14] SchweitzersworknotonlyshowshowI.G.wasanintegralpartoftheGermanwarmachine,butalsoillustrates thatGermanespionagewascenteredaroundGermanimmigrants.Theauthordoesnotwishtoimplythatall German immigrants were traitors, as the vast majority was loyal to their adopted country. However, during both wars, German espionage relied heavily on German immigrants. As an example, the German spies apprehendedlandingonLongIslandduringWWIIhadallpreviouslylivedintheUnitedStates.Asthequote above shows, those immigrants who chose to remain loyal to their fatherland had a considerable impact hinderingthewareffort. UponSchweitzersdeathgovernmentagentssearchinghisapartmentfoundanunpublishedarticleentitled TheChemistWar.InthisdocumentSchweitzer detailsGermanysplan forselfsufficiency,and foretellsthe importance of its scientific advances for the next war. These excerpts from the article show that Schweitzer wasfullyawareoftheimportanceofGermanysscientificadvancestoGermanempirebuilding. Nexttosteelandiron,aluminumandmagnesiumplayaprominentpartassubstitutesforcopper.It has been found that an aluminummagnesium alloy posses great advantage over the latter as an electrical conductor. Magnesium is said to be useful for many purposes for which aluminum is being employed today. This is a very important discovery, because Germany has enormous supplies of magnesiumchloride,abyproductofthepotashindustry,whichhasbeenworthlessuptonow. Thatthisnewscientificachievementwillproveofmomentousimportanceappearsfromthefactthat the great chemical works which supply the world with dyestuffs, synthetic remedies, photographic developments,artificialperfume,etc.,haveenteredthefieldandhavebecomeimportantfactorsinthe artificial fertilizer industry of Germany. The peace negotiations will undoubtedly culminate in the conclusionofcommercialtreatiesbetweennations. Whatenormouspowerwillbeexercisedbythenationwhenpossessingsuchuniversalfertilizerand practically worldwide monopoly of potash slats will have something to sell that every farmer in the civilizedworldabsolutelyrequires.[15]

Onceagain, thecloseass O t sociationofI I.G.withGermanyswar machineisa apparent,alo ongwiththe eintentiono of I.G. officials to use Germ manys domi ination of th he emerging g organic chemistry field d for world domination n. S Shortagesdu uringthefirst twarcreated dbyvariouscartelagreem mentsinvolv vedothercom mpaniesbesi idesI.G.Zeiss s a and its Ame erican partn ner, Bausch and Lomb, controlled production of military optics through a carte el a agreement.G Germanfirms sownedbyK Kruppcontro olledproduct tionofordna anceinmany ycases. BeforeUS Sentryinto theFirstWo orldWar,Am mericanaircraftproduct tionfortheA Allieswashe eldupbythe e p practicesofB Bosch.Itwas snotuntilth heUSentere edthewarth hatanyactio oncouldbet takenagains stBosch.The e s sametacticsw werecommo onbeforethe eUSenteredWWII. Domestic cally,cartela agreementsc createdacute eshortages inthemedic calfield.Prio ortothewar r,overeighty y p percent of surgical instr ruments wer re imported d from Germ many. Additio onally, many y medicines were under c completeGer rmancontrol l,particularly ysalvarsan,luminalandNovocain.Sa alvarsanwas susedatthe at timetotrea s syphilis,and luminalwas susedtopre eventepilept ticseizures.T Thereweren noreplacem mentsforthes sedrugs,and d p patients wen nt untreated. The shortag ge of Novoca ain forced Am merican surg geons to rev vert to opera ating withou ut a anesthesia. rsummation nofthedang gerscartelag greementsposedtothe UnitedState esexiststhan ntheStateo of Nobetter t theUnionad dressbyPresidentWilso ononMay20 0,1919: Nevertheless,therea arepartsofo ourtariffsys stemwhichn needprompt tattention.T Theexperienc cesofthe e made it pla ain in some cases too gr reat reliance e on foreign supply is da angerous, an nd that in war have determin ningcertainp partsofourt tariffpolicy,d domesticcon nsiderationsmustbebor rneinmindw whichare politicala aswellaseco onomic. Among the t industrie es to which special cons sideration sh hould be giv ven is that of the manuf facture of dyestuffs sandrelatedchemicals.O Ourcomplete edependenceuponGerm mansuppliesbeforethew warmade theinterr ruptionoftr radeacause ofexception naleconomic cdisturbance e.Theclose relationbetw weenthe manufact tureofdyest tuffontheon nehandando ofexplosives sandpoisonousgaseson ntheother,m moreover, hasgiven ntheindustry yanexceptio onalsignifica anceandvalu ue. Although h, the Unite ed States will w gladly and a unhesita atingly join in a progr ram of international disarmam ment, it will, nevertheles ss, be a polic cy of obvious s prudence to t make cert tain of the successful maintena anceofmany ystrongandwellequippe edchemicalp plants.Germ manchemical lindustry,wi ithwhich wewillbebroughtintocompetition,wasandmaywellbeagainathor roughlyknitmonopoly,c capableof tionofapecu uliarlyinsidio ousanddang gerouskind. [19] exercisingacompetit Itisobvious fromthisqu uotethatthe dangerpose edbycartels andtheirmonopolyagre eementswas swellknown n a atthehighes tlevelsofgo overnment.T Themoststunningaspect toftheafter rmathofWW WIwasthesp peedatwhich h I.G.Farbenre eestablished ditscartelag greements.T Thesereesta ablishmentsc couldonlyha aveoccurred dwiththeful ll c cooperationo ofRepublicanadministra ationsandth heleadersofcorporateAm merica. Evendur ringthepeaceconference e,therewere ethoseinthi iscountrywh hoseactions swere f fraudulent, if f not treasonous. Throu ughout the war, w lawyer John Foster Dulles soug ght to p protectthea Kaiserfroms seizurebyth heAlienProp pertyCustod dian.Dullessought ssetsoftheK t toderailthe peaceconfer rencebylookingforbrib bes,andmisd directingclie ents.Asame ember o the postw of war US War Trade Board d, Dulles had good infor rmation for sale. He was s well a aware that German G brib bes went al ll the way to t the Harding adminis strations cro ooked A AttorneyGen neral,Harry Daugherty.Inalatercor rruptiontrial l,Daugherty sdefenseco ounsel p pointedoutt therewasab biggercrookbehindtheb briberyscand dal,JohnFost terDulles: whos struttedabou utthePeace Conference promotingh himselfas(S Secretaryof State) H Harry Daugherty Lansings s nephew wh hile carrying g a baglooking for a bribemisdir recting his clients c andcomp portinghims selfasamanwhoshouldbedisbarred d.[20] T Theimportan nceofthequ uotecannot beunderest timated.Itcl learlyestabli ishesaright twing e elementatth hepeacecon nferencethat twaswilling gtosabotage etheinteres stoftheAme erican p people for personal, p priv vate gain. Dulles D contin nued to work k his mischi ief in the co orrupt H Harding adm ministration, and had ac ccess to its highest leve els of power r. Later, as WWII a approached, rship of, and d involveme ent in, he and his brother helped conceal Nazi owner A Americancor rporationsfr romtheUSgo overnment.
Jo ohn Foster Dulles

D Daughertyw wasnottheonlyHarding administrati ionmember seekingtof formalliance es and cartel agree ements with h I.G. Farben n. Prior to becoming b Se ecretary of the t Treasury y, rew Mellon controlled c in nterests such h as Alcoa, and a formed several s carte el agreement ts Andr withI.G.Farben. Mellonssup pportoffascismwentfur rtherthanju ustcartelagr reementswit th manfirms.M Mellonwasa supporterof fseveralpro ofascistgrou upsinthe19 930s,andwa as Germ partofthefascist tplotagainst tFDRin1934. O Onemustkee epinmindth helinksbetw weentopRep publicanadm ministrationo officialsofth he 1920 0sif oneist tounderstandtheroots ofAmerican n fascism. Me ellonand Daugherty wer re nott theonlyoffic cialssympath hetictoward dsI.GandGe ermany.Ther rewereman nymore,som me ofwh hombecame eNazisuppor rtersinthe1 1930s. Inadditionto osupporters swithinthe government t,I.G.founda amultitude ofsupporter rs Andrew w Mellon W Street. Many from Wall Street t would late er rise to high h position ns within th he on Wall gove ernment, par rticularly in n the OSS during d the war, and as a economic c advisors during d the postwar dena azificationpe eriod. B Bytheendof fthefirstwa ar,itwasquiteobviousto oallhowdan ngerouscart telagreemen ntswithI.G.w were,and howsuchagreem mentshadhin nderedtheU USwareffort t.Theseagree ementswere eanticompe etitive,andaviolation ustandmon nopolylaws. Theyalsovi iolatednume eroussection nsoftheAlie enProperty Act.Howeve er,during oftru the Harding H adm ministration, individuals openly sym mpathetic to I.G. and Ge erman intere ests headed the two cabin netpositions schargedwi ithenforcing gtheselaws, theDepartm mentsofJust ticeandtheT Treasury.Me ellonwas Secre etary of the Treasury th hroughout th he Harding and Coolidg ge administr rations, and through mo ost of the Hoov veradminist tration. H Holding his position thr roughout the 1920s, Mellon was able a to quas sh almost al ll investigati ions into refor rmingcartels s.Thus,byth heendofthe e1920s,I.G.h hadregained dcontrolove erallitsasse etsseizedbytheAlien Prop perty Custod dian. In fact, the Mellonowned Alcoa Corporatio on signed a cartel agree ement with I.G. I while Mello onwasstillinthegovern nment. T full ramifications of The f the actions by top 1920s Republica an administr ration officia als, and the resulting hindranceofWW WII,areimm measurable.B Becauseofca artelagreementssigned inthe1920s s,thesupply yofmany washindered, ,causingsho ortagesandp productiond delaysofmunitionsdurin ngWWII.Particularly vital materialsw agingwasas shortageofa aluminumdu uetothecart telagreemen ntenteredint tobyAlcoa. dama D Duetothepr rominenceof fSullivanandCromwellandtheDull lesbrothersinaidingthe eNazis,abrieflookat theb backgroundo ofthefirma andtherolet theDullesbr rothersplaye edinitisne eededbefore econtinuing. Thefirm was initiallyesta ablishedbyA AlgernonSyd dneySullivan ninNewYor rkfollowing theeconom micpanicof1 1857.The nomicpanich hadbankrup ptedhisprac cticeinIndia ana.Theyou ungSullivanh hadjustmar rriedadesce endentof econ Geor rgeWashingt tonfromVir rginia.Before etheoutbrea akoftheCiv vilWarSulliv vanreliedan nd built t his firm on n his wifes southern contacts. c The e reader should keep in mind thes se south hernconnectionsofSulli ivanandCro omwell,asth heyplayedan nimportantr roleinthela ast two decadesoft the20th cen nturyin movingindustry yfromtheru ustbelttoth hesouth. The ey edaparticularlyimporta antroleinthe efinancialsh henaniganso oftheBushfa amily. playe W With the ad dvent of the e Civil War, , Sullivan on nce again saw his prac ctice virtual lly destr royed. In Ju une 1861, th he confedera ate warship p, the Savannah disguised itself as a north hern vessel in an effort t to capture the USS Per rry. Howeve er, the Perry y captured th he Sava annahandde eliveredthec crewtoNew wYork.Becau usetheUnite edStatesdid notrecogniz ze Algerno on Sydney the Confederacy C y as a nation n, the prison ners were treated t like pirates. The e prisoners, if Su ullivan conv victed of pira acy, would have h been ha anged. Sullivan took it up pon himself to defend th he priso oners arguin ng that they y were priso oners of war r. Against al ll odds, Sull livan won th he case. .[77] In1870Sulliv vanwentbac cktoprivate epracticeint thefirmofSu ullivan,Kobb beandFowle er. e Sullivan met m William m Nelson Cr romwell, wh ho was emp ployed as a a bookkeepe er. Here Reco ognizing Cro omwells tale ents, Sullivan offered to o send Crom mwell to Co olumbias La aw Scho ool.Cromwel llacceptedth heofferandafterKobbe eandFlower rhadleft,Su ullivanforme ed Sulliv vanandCrom mwell.Thef firmsoonflourished.Foll lowingthedeathofSulliv van,Cromwe ell hired dWilliamCu urtisasapart tnerandbeganfocusingt thefirmonb businesslaw. . T Theyearafte erSullivansd deathCromw wellhadCurt tis,aNewJer rseyresident t,workbehin nd William m Nelson the scenes s to ch hange the la aws of incor rporation in n New Jersey y. Cromwell ls package of
Cro omwell

changesintheincorporationgavemuchmoretothecorporationsthantothestate,loweringtheincorporation feesandtaxes.Additionallyitpreventedshareholdersfrominspectingthecorporationsbooksandinterfering in corporate management. However, most importantly, Cromwells package allowed corporations to hold sharesofothercorporations.ItwasapackagedesignedtosidesteptheShermanAntitrustActof1890.[78]In essence, Cromwells package was a wholesale assault on the laws that held corporations in check. Only the disastrousSupremeCourtrulinggivingcorporationstherightsofapersonwasmoreimportantinthecreation ofthecorporatestate. ThefirsttwocompaniestotakeadvantageofthechangesinNewJerseycorporatelawwereSullivanand Cromwell clients, the Southern Cotton Oil Company and the North America Company. The way a firm manipulates and follows the law says a lot about the firms honesty and integrity. The way Sullivan and Cromwellhandledthe1889LouisianaSupremeCourtdecisionoutlawingtheAmericanCottonTrustexposes howSullivanandCromwellviewedthelawasjustatooltobemanipulatedforthebenefitofthewealthy.The LouisianaCourthadruledtheAmericanCottonTrusttobeanillegalassociation,guiltyofusurping,intruding into and unlawfully holding and exercising the franchise and privilege of a corporate without being duly incorporated.[79] CromwellwenttoLouisianaandhiredthebestlocallawyerstoarguetheappeal.Theyassuredhimthey couldwin.Cromwellthentouredthestate,urgingmembersofthetruststoselltheirsharestotheRhodeIsland Company. The Rhode Island Company was exactly like the trust, but incorporated in Rhode Island, which toleratedtrusts.Thedaytheappealwastobeheard,Cromwellwalkedintocourtandtoldthecourtthatthe company had been dissolved. Local officials were outraged at Cromwells action and threatened to jail him. Cromwellwiselylefttownthat afternoon.Cromwellthenhad CurtisdothesamethinginTexasforthelocal cottonoiltrust. In 1901 J.P. Morgan used Sullivan and Cromwell to organized US Steel, the first American corporation with more than one billion dollars capitalized. Previously Sullivan and Cromwell had organized National Tube Company for Morgan. In 1906 Edward Henry Harriman sought help from Sullivan and Cromwell in gaining control over the Illinois CentralRailroad.ThepresidentofIllinoisCentralrealizedthevalueofthenorthsouthroute ofhisrailroadinaddingtotheHarrimanholdingsofmajoreastwestroutesandhadgiven the governor of Illinois a seat on the board and organized small shareholders against a Harrimantakeover. In the mounting proxy fight, Cromwell forged alliances with two board members Edward Henry leaving Cromwell short one vote for a board majority. He then offered another board Harriman memberthejobofpresidentofthecompanyifhewouldhelpoustthecurrentpresident.Inthevoteofproxies Cromwell shouted from the floor demanding the current president cast his votes in favor of the Harriman takeover.Innewsthatmadethefrontpageof The New York Times,Cromwellmadeaspectacleofthemeeting after being attacked by the small shareholders against the takeover. After the meeting Cromwell announced thattherewouldbeaboardmeetinginNovemberthatwillelectofficersoftherailroadandthatanyonecould drawhisownconclusions. CromwellandHarrimannursedtheirwoundsforthreeweeks.Theboardmeetingwasdeliberatelysetin NewYorkonelectiondaytodeterthegovernorofIllinoisfromattending.Thegovernorreluctantlyattended the meeting to no avail, Cromwell and Harriman controlled the board. Once again we see how Sullivan and Cromwell worked against the majority of small holders manipulating the system to the benefit of one of the mostnotoriousrobberbarons.[80] Sullivan and Cromwell was instrumental in helping manipulate utility owners to place rising profits in holdingcompaniesthatbythe1920shadgiventhecontrolofthreefourthsofthenationselectricbusinessto just ten companies. For its client Union Electric, Sullivan and Cromwell created over 1,000 subsidiaries. The subsidiaries were in turn controlled by one or two individuals. Instead of issuing common stock, the subsidiariesissuedonlybondsandpreferredstockthatdidntcarryanyvotingrights.[81]Thereadershould recall from the fallout of the bankruptcy of Enron in 2001 that the maze of subsidiaries controlled by Enron allowed the corporation to conceal its financial shenanigans and conceal its illegal price gouging in the Californiaenergycrisisaswellastheprofits. Using the tricks developed for the utilities, Sullivan and Cromwell applied them to the National Diary Products Company. National Dairy had acquired a string of regional diaries across the country and in 1930

acqu uired KraftP Phoenix Che eese Compan ny. Through the manipulative effor rts of Sulliv van and Cro omwell, a local lizedindustrywastransf formedintoa amultinationalconglom merateknown nasKraft. B 1900 Sull By livan and Cro omwell had emerged as the law firm m of the robb ber barons. In the examples e alr ready given, , it is clear Cromwell was w willing to use uneth hical means to achie eve victory for any clien nt that could afford his s fees. Addit tionally Crom mwell worke ed behin nd the scene es to weaken n corporate laws. It was s at this tim me Cromwell developed an a inter rest in the Panama Cana al. It was also around this time, 1911, that John Foster Dulle es joine ed the firm. Dulles grandfather John n Watson Fo oster, a form mer Secretary y of State, ha ad urgedCromwell tohirehisg grandson.Th heelderFost terhadknow wnbothfoun ndingpartners hadclerkedf forSullivanw whenhewas sinOhio. andh John Wa atson Foster B writing a By a pamphlet urging u that American A sh hips passing through the e canal should have efreepassag ge,theyoung gDullesgott theattention nofCromwel ll.Thefirmw wasimpresse ed athiscontacts.Su ullivanandC Cromwellwa asthePanam masfiscalage entatthetim me.WWIbrok ke ng John Fost ter Dulles th hird year at Sullivan and d Cromwell. To take adv vantage of th he durin war, Dulles volun nteered totr ravelto Euro opetosellriskinsuranc ceforAmeric canCottonO Oil peanshipme ents. CompanysEurop In19 915,Dullesu uncle,Rober rtLansing,w wasappointedSecretary of State.Lansingrecruitedhisneph hewtogoto Nicaragua,C CostaRicaan nd nybusiness,butinreality ytosoundou ut Panamaonthepretextofcompan nAmericans onaidingth heUSwareff fort.CostaRi icawasledb by theLatin Rober rt Lansing the vicio ous dictator Federico Tinoco. Dulle es advised Washington W to support the dictator r, as he was antiGerm man. Dulles also a encoura aged the Nicaraguan hamorro,toissueaprocla amationsusp pendingdiplomaticrelationswith dictator,EmilianoCh Fe ederico Tinoco Germany y.InPanama aDullesoffer redtoletPan namawaive thetaxonit tsannualcan nalfeeas longasP Panamawoul lddeclarewa aronGerman ny. With h his success s in Central America, Dulles D was commissioned as a capta ain for a positioninmilitaryin ntelligencew workingforth hewartrade eboard.Whileonthetrad deboard, ecommended d installing a a new leader r in Cuba, vo oiding the re ecent election n. Dulles Dulles re concern was not for the welfare of the citize ens of Cuba, but for the thirteen Sull livan and llclientsthat theldhuges sugarinteres stinCuba.Pr residentWils sonrefusedt tounseat Cromwel the curre ent governm ment of Cuba a, but did se end 1600 Ma arines to pro otect Americ can sugar interests s. Durin ngthewarCromwellhad dlivedinPar ris.Itwasthr roughJohnFosterDulles dealings Emiliano Chamorro during th he peace neg gotiations th hat he rose in i stature in the eyes of f Cromwell. Cromwell C and his uncle, wouldre emaininPar risandwasimpressedw withDullesw workonbeha alfofGerman ny.While D Diego Manuel in Europ pe after the war, w Dulles met m with the e Merton bro others in Fra ankfurt. The Mertons dedcopperfo ortheir Met tallgesellscha aft business. Dullesarran ngedalarge loanthroug ghGoldman Sachsfor need theM Mertonstoim mportAmericancopper.I Itwasthisde ealthatledt tochargesag gainsttheAtt torneyGener ral,Harry Daug gherty.Dulle eswasforced dtotestifyatthetrial.Hecouldpleadinnocent,as sGoldmanSa achsbackedo outofthe deal. . H However,the erealstoryo oftreasonbytheDullesbrothersandSullivanandCromwellbeginswithth heending ofth heFirstWorld dWar.Crom mwellwouldr remaininPa arisandJohn nFosterDulle es,whilenot tformallyinchargeof the New N York of ffice, would be b the force to be recko oned with in New York. Several Wall l Street firm ms figured prom minentlying guidinginves stmentsinto Germany,in nthe1920sa aswellasthe e1930sNaz ziGermany.H However, almo ostalldealsw wouldinvolv vetheservice esofSullivan nandCromw well. C Coincidingw withtheDawe esPlan,whic chisdiscussedelsewhereinthischapter,JohnFo osterDulles arranged a lar rge loan for Krupp. For the loan Du ulles had ca alled Leland Harrison, Assistant A Sec cretary of St tate, on a Satur rday to soft pedal the it tem in the news. n Harrison was infu uriated becau use the depa artment had issued a circu ularaskingto oseeforeignloansbefore eAmericanf fundsweree exported.Dul llesknew,ho owever,thatHarrison had no authority y to stop th he loan. Dull les wanted to t avoid the e State Depa artments scr rutiny as to whether man factories s were prod ducing milita ary hardware e. Sullivan an nd Cromwel ll, at Dulles behest, acce epted the Germ assurancesofKru uppthatallm militaryhard dwarehadbe eendestroye ed. The Krupp loan opened a new era at a Sullivan an nd Cromwell l. It was the start of a massive m inves stment in T Germ manybyUSb banks.Banks scompetedw witheachoth herforthese ervicesofthe efirminarra angingGerm manloans.

Withinayear W rAmericaha adlentGerm many$150mi illion.Suchm massivelendingworriedboththeGer rmanandthe e U United States government. The Stat te Departme ent privately y warned ba ankers and lawyers of the growing g indebtedness s of Germany y. Dulles act tively promo oted the loan ns. Sullivan and a Cromwe ell supervise ed an endless s s streamofGer rmanbonds. .Manyofthe eprospectus sescontained derrorsand hadneverb beenproofrea adduetothe e f franticpace. Otherswere edeliberately ydeceptive. ABavarianb bondprospe ectusbegan Bavariahas sanexcellen nt c credithistory y.However, ,Bavariahad ddefaultedo onitsdebtth heyearbefor re.[82]Almo ostseventyp percentofthe e m moneyflowin ngintoGerm manyduringt the1930scamefromUSinvestors. In 1935, John Foster r Dulles nar rrowly missed being indicted in a case of Uni ion Electric Company o of M Missouri,asu ubsidiaryof theNorthA AmericaCom mpany.TheSE EChaddisco overedtheco ompanyoperatedaslush h f fund to bribe e legislators. The fund re eceived kickb backs from its i local lawy yers and an insurance co ompany. The e f firm had bribed the entire Missouri i legislature. SEC Genera al Counsel, Travis T Lane, , cynically at ttributed the e f failureofthe arm. grandjurytoindictDullesonhischa 930sDullesa arrangedfor rthewealthy yCzechfami ily,thePetsc cheks,tosell ltheir Inthe19 interest in Silesian S Coal to George e Murnane. Murnane was w used me erely to hid de the P Petscheks in nterest. Dulle es then sold d the shares to his friend d Schacht, th he Nazi econ nomic m minister.Afte erthesaleD Dullesbecam medirectorofConsolidatedSilesianS SteelCompan ny.Its s soleassetwa asaonethird dinterestinU UpperSilesia anCoalandS SteelCompan ny.Therema ainder o the share of es was contr rolled by Fr riedrich Flick k.[83] The role r Prescot tt Bush play yed in C Consolidated dSilesianisreservedfora alaterchapte er. Allen Du ulles role at t Sullivan & Cromwell soon s develop ped into tha at of a fixer r. The M Mellonshired dhimtocon nvincetheCo olombiangov vernmentnottoconfisca ateitsinvestm ments Friedrich Flick in Colombian n rich oil and a mineral fields. He did so by rigging the 1932 Colom mbian p presidentiale election. By1934, JohnFoster rDulleswas publiclysup pportingthe Naziphiloso ophy.In1935 5,hewrotea alongarticle e f The Atlan for ntic Monthly entitledTheRoadtoPe eace.Heexc cusedGerma anyssecretr rearmament tasanaction n t taking back her freedom m. Knowing what w he did d about Inco and Germa anys munitio ons industry y, Dulles was s m misleading in n asserting Germanys, Italys, I and Japans J desir res for peac ce. Later in the t 1930s Dulles D helped d o organizethe monthbefore ePearlHarb borhedonate ed$500toth hegroup.La aterhewould d AmericaFirstgroup.Am c claim no association wit th the group.[84] Dulles continued his h support of o the Nazi line l right up p to the time e G Germany inv vaded Poland d. Dulles ex xcuse for the e Poland inv vasion was much m like bla aming the victim v for the e c crime. or,itwasJoh hnFosterDul lleswhowro otecompany ypolicyonth herehiringo of Afterthe bombingof PearlHarbo t those that left to fight. . Dulles refu used to gua arantee that t they could d return to their former positions s. N Nonetheless, overhalfthe efirmenliste ed,including gfourpartner rsandthirty yfiveassocia ates.Manyof f theenlistees s w wereassigne edtoplevelp positionsinth heOSS.Inan nactofpoeticjustice,Dul llesrefusalt toguaranteetheenlistees s jobs back up pon their retu urn from ser rvice came back b to haun nt him in his s 1950 race for the Sena ate. It figured d p prominently inhisdefeat t.[85] e outbreak of o WWII Du ulles image was severely tarnished d from his praise p of Na azi Germany y. With the T Throughoutt thewarhestayedhome andusedsa anctimonious spronouncem mentstoreb buildhisima age.However r, JohnFosterw wasnotabou uttogiveuph hissecretNa azities. Perhaps the most sig gnificant acti ion of Dulles s during the war crippled Americas war effort severely. s The e m military depended upon n diesel mot tors for tru ucks, tanks, submarines, , ships, and aircraft. Th here was no o s substitute for the direct fuel injectio on in diesel engines. e Wh hile the US plotted p to bo omb Nazi die esel plants in n G Germany,the elegalmane euversofJoh hnFosterDul llesatthehe elmofSulliv vanandCrom mwellpreven ntedAmerica a f frommanufa acturingmore eefficientdie eselenginesathome. In1934D Dulleshandledthelegal endandGeo orgeMurnan netheoperat tionalend.Togetherthey yfabricateda a d dealinwhich htheBoschC Companysolditsinterna ationalintereststotheM Mendelssohn nCompanyofAmsterdam m w with a right to repurcha ase them at a later date e. In 1935 Murnane M joined the boa ard of d directors of the America an Bosch Com mpany. Fritz z Mannheim mer, the head d of Mendels ssohn, w wasaGerma anagent.In1 1937Murnanebecamec chairmanof theboardat tAmericanB Bosch. T Through this s period, the e American Bosch B Comp pany tried to o get the Ger rman compa any to r reducethefiv vepercentr royaltyitpaid.Toinduce etheGerman ncompanyto oagree,Ame erican B Boschvolunt teeredinform mationaboutcosts,sellin ngpricesandothercom mpetitivedata a.The N Nazigovernm mentwasdelightedinth heexchangeo ofdata,asit tprovidedth hemabluepr rintof
Fr ritz Mannheimer

Americanwarpr roductionpr riortotheUSentryinto thewar.As warapproa ached,theNa azissoughtt tofurther ouflagethet trueownersh hipofAmeri icanBoscha andanother salewasarr rangedbyDu ullesandMu urnaneto camo theW Wallenbergs ofSweden.B Besidesthec criticalfuelin njectors,Bos schalsoprod ducedwalkie etalkiesfort theThird Reich h. T Tofurtherco oncealtheGe ermanowne ership,Dulles sfabricateda amazeofcor rporationsth hatseemedA American without transfer rring power outside of Germany. G He e had the Wallenbergs put p their sha ares in Provi identia, a warecorpor ration.Dulles swasthesolevotingtrus steeoftheco orporationan ndhadfullau uthoritytod disposeof Delaw thes shares.InJuly1941theN Navydepartm mentapproachedAmeric canBoschon nbehalfofCa aterpillarinte endingto manu ufacture diesel equipme ent. American n Bosch resp ponded that it was willing to modify y its exclusiv ve rights, howe ever,thecor rporationsri ightswerein ndivisibleandthusunabl letograntth herequest.In nMay1942A American Bosc chwasconfis scatedunder rtheAlienPropertyCust todian.Asec cretgovernm mentdocume entdatedOc ctober11, 1944 4 concluded d that Dulles s must have e certainly known that t American Bosch was German ow wned.[86] Neve ertheless,Du ulleswassuc ccessfulinde elayingthew widespreadm manufacturin ngofdiesele enginesforf fiveyears inthecriticalper riodwhenAm mericasough httorebuilditsmilitarym might. The Justice Department t antitrust la awyers foun nd other Sull livan and Cr romwell clie ents were pr rominent T amon ngthecause esofbottlene ecksinwar production. Prosecution,however,h hadtobedel layeduntilth heendof thew war,otherwi isewarprod ductionwoul ldhave suffe eredadverse ely.In1946 thechemica alcompaniessigned a consent decree paying p a min nimal fine of five thousa and dollars. A list of tho ose who face ed or signed d consent keaFortune5 500list:Allie edChemical,AmericanA AgriculturalC Chemical,and dMerck. decreesreadslik electioncam mpaign,DullesadvisedDe eweytorejec cttheissueo ofdeploying gUStroopsu underthe Inthe1944e mandoftheUN,causingabreakinAl lliedrelation ns.Dulleswa asalsorespon nsibleforthe eextremistr remarkin comm Deweyscampaig gnthatFDRh hadweakene edtheDemocraticPartysobadlytha atitwasread dilysubjectto ocapture ommunistfo orces.Dulles alsowanted dtochargeFDRwithunp preparedness sinthebom mbingofPear rlHarbor. byco How wever,coolerheadspreva ailedwithGeorgeMarsha allcontacting gDeweyandadvisinghim monnotreve ealingthe secre etofMagic.[8 87] B Besides his close c ties to Dewey, John n Foster Dul lles wormed d his way int to Republica an polit tics by befr riending Ar rthur Vande enberg, a staunch s isol lationist fro om Michigan n. Vand denberg coll laborated with Dulles on o the foreig gn policy po ortion of th he Republica an platf formin1944 4.ItwasatVa andenbergsinsistenceth hatDullesaccompaniedh himtotheSa an Fran nciscoorganizingmeeting goftheUnite edNations.D Dullespromp ptlyleakedin nformationo on theb bipartisanag greement,poisoningthea agreementan ndnegotiatio ons. Inthe1950s JohnFoster Dullestestif fiedatthefir rstHisstrial thathehad askedHisst to pt the positi ion of presid dent of the Carnegie C Endowment fo or Peace. How wever, in th he accep second Hiss trial, Dulles den nied it. Inste ead of Dulles s being char rged with pe erjury for th he Arthur Vandenberg V nsistencyofhistestimon nyinthetwotrials,theinconsistencywasblamedonHiss. incon D Dulles was also a instrume ental in gett ting Eisenhow wer to run on o the Republican ticket t for Preside ent at the urgin ngofGenera alClay.Dulles shadlosthis searlierchancetobecom meSecretary yofStateinD Deweysloss sandwas eagerforasecon ndchance.Be eforeleaving gforEurope tomeetwith hEisenhowe er,Dullesstu udiedhisbac ckground. Ikew wasextremel lypopularw withthepubli icandwasw wellknownfo orhisaversio ontoAmerica ancasualties s,butwas view wedasweak onforeignpolicy.DullesflewtoEuro opetomeet withEisenhower.Inthe Parismeetin ngDulles playe ed on Eisen nhowers ave ersion to Am merican cas sualties; Dul lles urged Ik ke that the modern str rategy of main ntainingpeac cewasthrou ughmassive retaliationw withnuclear warheadsto ofrightenen nemiesfrom attacking and keep Americ can boys fro om dying. Eisenhower was w impresse ed with Dulles views an nd foreign po olicy was er discussed.[88] The meeting m cinc ched Dulles appointmen nt as Secretary of State e in the Eis senhower neve admi inistration. Inessence,th hepersonth hatarrangedmoredeals withtheNa azisthanany yotherperso on handselecte edthenextAmericanPresidentanda appointedhim mselfasSecr retaryofStat te. hadh Ther readerisurg gedtoremem mberthispointinlaterch hapters. In 1951, the e Federal Tr rade Commission produ uced a 400p page secret report whic ch iled the history of collus sion in the oil o market, ex xposing the cartel agreements aroun nd detai the globe. g Howev ver, it wasn t until 1952 that an inte ernal Justice Department t memo note ed the existence e of f the cartel agreements among the seven large est oil comp panies was in viola ationofUSan ntitrustlaws.Thedelayw wasbeneficia altotheoilcompanies,as stheincomin ng Eisen nhoweradm ministrationw wasmorefrie endlytobusi inessthanth heTrumanadministratio on.
Thomas s E. Dewey

Truman,asaSenator,had T dstatedStan ndardOilwas sguiltyoftre eason. ary11,1953 theJusticeD Department offeredtodr ropcriminal chargesand donlypress acivilsuit,i if OnJanua t they would produce p the e documents requested for f the crim minal case. Arthur A Dean, the attorne ey for the oi il c companies,r refusedtheo offer.Deanw wasanotherS Sullivanand Cromwellla awyer.[89]T Thereadersh houldbewel ll a awarethatth hiswasacas sethattheoilcompanies hadtokeepfromcomingtocourt.Onceincourt, ,thedealings s o ofStandardO OilofNewJe erseyandot theroilcomp panieswitht theNazisdu uringthewarwouldlike elyhavebeen n e exposed.Dea an,laterinth heEisenhowe eradministra ation,wasch hosentonego otiatetheret turnofPOWs sinKorea. BothDulles brothersplayedaroleinobstruc cting theSta andardcase beforethecourts. T Through the National Se ecurity Coun ncil, John Fo oster Dulles used the Ce entral Intelligence A Agency, head ded by Allen n Dulles, to screen s evidence and segregate from public discl losure e evidencethat thevieweda ashavingnat tionalsecurityimplicatio ons. The Eisenhower adm ministration was packed d with Sulliv van and Crom mwell emplo oyees. A AnotherSulli ivanandCro omwelllawye er,NorrisDa arrell,wrote theInternal lRevenueCo odeof 1 1954. taryofState,DullesusedSullivanand dCromwellto ohelpcarryonhissuppo ortfor AsSecret Allen Dulles f formerNazib businessmen n.Hesupport tedEverettD Dirksen,theR RepublicanS Senateleader rsbill t return all to l the proper rty held by the t Alien Pr roperty Cust todian to its s previous owners. The value of the e p propertycon nfiscatedwas sworthupt to$200million.Theform merallieswe erehorrifiedattheproposal.Holland d h held$100mi illionconfisc catedfromth heNazis,asm mallfraction nofthedama agetheyhad ddone.Dulle estriedtoget t theAttorney Generaltop postponethesaleofHugo oStinnesCor rporation,wh hichheldass setsoftheco oalkingofthe e R Ruhr. Legally y anyone cou uld bid on th he property. Dulles arran nged the bid dding throug gh Arthur De ean in such a a w wayonlyGer rmanscouldbid.Therew wasonlyone ebidder,the eDeutscheB BankofFrankfurt.Thero olethatDean n a andDullespl layedinthes saleremainsclassified.[90] TheDulle esbrothersu usedtheirpo ositionsatSu ullivanandCromwelltor risetopromi inentpositio onsinsidethe e U UnitedStates s,butalsoto okeypositio onsthat aide edtheirfinan ncingofHitlerswar mac chine.John FosterDulles F s r rose to become a directo or of I.G., wh hile his brot ther Allen was w on the board of a leading Germa an bank tha at b became close ely associate ed with the Nazis. Both were maste ers at drawing up arran ngements to o conceal the e involvement ofAmerican ncorporation nswiththeN Nazis.Follow wingWWIIAl llenDulles,a asheadofth heCIA,wasin n t ideal pos the sition to con ntinue the cover up of American A co orporate involvement with the Nazi is, as well as s h helpingscore esofNaziwa arcriminalse escapejustice. Following g the first war w many la arge Americ can investme ent firms an nd corporati ions investe ed heavily in n G Germany. In return for th heir dollars, they receive ed bonds ba acked by sha ares in a Swi iss holding company c tha at o owned share es in German n banks. The e banks, in turn, t held sh hares in major German corporations c s that owned d s someofthew worldsmostvaluablepa atents.TheG Germanbank ksineffecth heldaworld dwidemonop polyonhigh h t tech. There was w even tal lk of setting up a worldwide patent t cartel in Ge ermany so American A inv vestors could d e escapeUSan titrustlaws. esbrothersw werealsothe emastermind dsbehindtheDawesPlan n,whichhad dthesupport tandbacking g TheDulle o J.P. Morga of an. Under th he Dawes Pla an, the US lent Germany y money to pay its inte ernational re eparations to o E Englandand France.Intu urn,England dandFrance repaidtheU US.Forawhilethisfinan ncialmerryg goroundwas s s successful an nd the Dulles s brothers clients c reape ed a financia al windfall. The T result of f the Dawes Plan and the e Y Young Plan was w that from m 1924 to 1931 1 German ny paid the Allies A about 36 billion marks m in rep parations, but r received about33billion nmarks borr rowedunder r theDawes andYoung Plans.Thisr resultedinth he burdeno of G German repa arations bei ing shifted to the buye ers of Germ man bonds sold s by Wa all Street fir rms at hefty y c commissions s. Besidest thesignifican ntinvolvementofbothDu ullesbrother rsandJ.P.Mo organ,theGe eneral E Electric Corp poration play yed a tremen ndous role in n the Dawes s Plan. Owen n Young, auth hor of t theYoungPl an,wasame emberofGE Esboardand dpartofthe braintrustb behindtheD Dawes P Plan.General lElectrichad dconsiderab bleinvestmentsinGerma any,andben nefitedimme ensely f fromtheYou ungPlan. To fully understand its involvem ment in both h illconceive ed German bailout b plans s, one m mustlookat gement.Gera ardSwope,apresidento ofGeneralEle ectric,andW Walter GEsmanag R Rathenau, a managing di irector of GE Es German subsidiary, both b oppose ed free enter rprise. R Rathenaus v view of the interwar pe eriods new political eco onomy is su ummed up in n this q quote:
Owen Young

Theneweco onomywill, aswehave seen,beno stateorgov vernmentale economybut ta p privateecono omycommit ttedtoacivicpowerofr resolutionwh hichcertainl lywillrequir re s state cooperation for or rganic consolidation to overcome o in nner friction and increas se p productiona ndenduranc ce.[72] It is s obvious fro om the quote that Rath henau believ ved in ultim mate power being b held by b corporations, an nd governme ents only fu unction was to pave the e way for co orporate rul le. pe proposed d much the same. s He called for antitrust law ex xemption for r the electric cal Swop manu ufacturing in ndustry. In 1931 Swope called for the format tion of trade e association ns Gerar rd Swope resem mbling carte els governed d by a centra al quasigov vernmental agency. a Such h views would onlyservetolimitcompetitio on,asdidthe ecartelsandtradeassociationsofNaz ziGermany. W Withthesim ilaritybetwe eenthecarte elagreement tsofI.G.andthemonopol listicbehavio or ofou urownrobbe erbarons,theDullesbrot thershadno oshortageofinvestorswi illingtoinve est in Ge ermany. In 1940, 1 Profes ssor Gaetano o Salvemini of o Harvard was w quoted as a saying that 100% % of Americ can big business was sy ympathetic towards t fasc cism. Corpor rate America as supp portforfascis smwassogr reat,USAmb bassadortoG Germany,Wil lliamDoddp proclaimed: clique of A f US industr rialists is he ellbent to bring b a fasci ist state to supplant ou ur d democraticg governmenta andisworki ingcloselyw withthefascistregimein Germanyan nd Walter Rathenau Italy.[21] Americanshave neverbeent toldthetruth haboutthee extentofcor rporateAmer ricasinvolve ementwitht theNazis. s fed Am mericans int to believing that only a handful h of companies c tr raded with the t Nazis. The media has spoon hing could be e further fro om the truth h. In reality, well over 30 00 American n corporation ns were arm ming Nazi Noth Germ manyduringthewar,whi ileitwasaga ainstthelaw. . M Manyofthes ecorporatio onstookextraordinaryst tepstomaint taincommun nicationwith htheirGerma anoffices and to conceal th heir Nazi inv volvement fr rom the US government. g . They could have severe ed all links with w Nazi many,butact tivelyandwi illinglychose etocontinue esupportingaregimeatw warwiththe eirowncoun ntry.With Germ the first f step to conceal thei ir trading with w the Nazi is, these corp porations be ecame willin ng accomplic ces to the Holo ocaust, traito ors to their country c and guilty of wa ar crimes. Th hose respons sible for such actions an nd crimes shou uldhaverece eivedjusticea attheendof fahangmans snoose.Sadl ly,nonewere eevencharg ged. E Eventheblu estofthebluechips,IBM M,activelys soughtbusinesswiththe eNazisdurin ngthewar.D Dehomag, IBM s German su ubsidiary, su upplied the Hollerith machines m that t played a prominent p ro ole in the Holocaust. H With hout Hollerit th machines s, the efficie ency with which w the Ho olocaust wa as carried ou ut would ha ave been impo ossible. It would have been b slowed by forcing the Nazis to o divert additional manp power to the task of locat tingtheirJew wishvictims.Hollerithmachineswerelocatedin everyconcen ntrationcam mp,andwere eserviced byDehomagrepr resentativeswhiletheNe ewYorkoffic cewaskeptf fullapprised. . T Theinclusion nofIBMher reprovidesa alookatthe mindsetofc corporateAm merica.Edw win Black ksIBMand dtheHolocau ustdetailstheruthlessn nessofcorpo orateAmericainpursuit of profi its.[22] Whe en the Nazis s came to power, p IBM was under the directio on of Thoma as Wats son. Watson n actively so ought out a contract to provide the e equipment t for the Na azi census. U Untilthen,W Watsonscare eerwasless thanethicall lystellar.Wa atsonlearnedhisbusiness skills s from John Patterson, the ruthless founder of National N Cash Register (NCR). Watso on rose quicklyinth heranksofN NCR,learnin ngtousefriv volouslawsuitsagainstco ompetitors,a as at of lawsuit ts against those competi itors custom mers. At NCR R, Watson wa as well as the threa Thoma as Watson ed in charg ge of driving g out competitors sellin ng used equ uipment. Watson W quick kly place adop pted the tact tics of the ro obber barons s to establish h a monopol ly. Watson used u predato ory pricing, threats t of lawsuits, bribes and even smashed s storefronts. On n February 22, 2 1912, Watson W was indicted i for criminal straintrade.Hewasfoundguilty.[23] conspiracytores T criminal behavior an The nd lack of et thics illustrat ted by Watsons early ca areer was pe ervasive betw ween the wars s. When the Nazis seized d power, Watson saw an n opportunity y to expand in Germany. . In the dept ths of the Grea at Depression n, Watson in ncreased IBM Ms investment in Germ many by nearly a million n dollars. Ev ven more grati ifyingwasth hesecretpact tWatsoncon ncludedinOc ctober,1933 3,givingDeho omagcomme ercialpower rsbeyond the German G bord ders. Previou usly, all IBM M subsidiaries s were confi ined to a sin ngle country. . With Dehom mag now

establishedasthedefactoIBMEurope,theNaziswereabletoconductstatisticalservicesthroughoutEurope. Ineffect,WatsonhadestablishedacartelmuchlikeI.G.s. InanattempttojustifyWatsons,andIBMs,dealingswiththeNazis,manysuggestthatWatsonwasnota fascist,butsimplyaruthlessbusinessman.Evidence,however,suggeststhatifWatsonwasnotafascist,hewas, attheveryleast,agreatadmireroffascism.Ata1937salesconventionWatsonsaid: I want to pay tribute (to the) great leader, Benito Mussolini. I have followed the details of his work very carefully since he assumed leadership. Evidence of his leadership can be seen on all sides. Mussoliniisapioneer.Italyisgoingtobenefitgreatly.[26] ThisisnottheonlyevidenceofWatsonssupportandadmirationforfascism.Hehadanautographedpictureof Mussolinihanginginhislivingroomforyears.Watsonisalsoquotedsaying: WeshouldpaytributetoMussoliniforestablishingthisspiritofloyalsupport.[26] InaprivatelettertoReichEconomicMinister,HjalmarSchacht,Watsonwrote: thenecessityofextendingasympatheticunderstandingtotheGermanpeopleandtheiraimsunder theleadershipofAdolfHitler.[26] The letter was written years after Hitler had seized power, and Watson described Nazi aggression towards neighboringcountriesasadynamicpolicy.Theletterendedwith: anexpressionofmyhighestesteemforhimself(Hitler),hiscountryandhispeople.[26] WhileWatsonspraiseforHitlerandMussolinidonotsupplydefinitiveproofthatWatsonwasafascist,they certainly confirm the conclusion of Harvard professor Gaetano Salvemini that corporate America was in sympathywithfascism. Before the ink was dry on the Treaty of Versailles, American corporations were rushing to invest and supportGermany.ThefirsttosupportwhatbecametheNazilinepubliclywasHenryFord.Intheearly1920s, FordbeganpublishinganantiSemiticnewspaper.FordwasalsoanearlyfinancialsupporterofHitleratatime whentheNaziswerevirtuallyunknown. A more detailed look at Fords involvement with the Nazis will be presented in later chapters. Another earlybackerofHitlerandtheNazisweretheduPonts.ThepowerbehindtheduPontthroneinthe1920swas Irne du Pont who, like Ford, was a supporter of Hitler before he was known outside Munich. Du Pont followedHitlerscareeravidlyfromtheearly1920son.DuPontrepresentativestraveledtoGermanyalmost immediatelyafterthearmisticetorenewtheiralliancewithI.G. In November 1919, mere months after the armistice was signed, representatives of du Pont and the BadischeCompany,theprincipalcorporateidentityofI.G.inSwitzerland,workedoutatentativeagreementfor theorganizationofaglobalcorporationtoexploittheHaberprocessforammoniaandnitrateproduction.Du Pontalsosoughttechnicalhelpinthedyestuffsindustry.Althoughacompleteagreementwasneverreachedon agrandalliance,therelationshipbetweenduPont,VerinigteKolnRottweilerPulverfabriken(VKR)andDynamit Aktiengesellschaft (DAG) became closer. At one point, du Pont had roughly three million dollars invested directlyinI.G.[24] ThemostnotableaspectoftheNovember,1919meetingandtentativeagreementwasthelightningspeed withwhichtheGermancartelsreestablishedcontrolovertheallimportantHaberprocessforammoniaand nitrateproduction.Allpartieshadastakeincompletingtheagreementbehindcloseddoors,astheverynature oftheagreementwasaviolationofthearmistice.ForGermanyitmeantcontroloverexplosiveandfertilizer production,freeingthemfromdependenceonChileannitrates.ForduPont,itwasamatterofprofits.Before WWII, one of the most profitable periods for du Pont was WWI. During that war, du Ponts profits rose to $230,000,000.TheprofitsfromthewarwereusedtobuyacontrollingshareofGeneralMotors.[27] OnJanuary1,1926anagreementbetweenduPont,DAGandVKRwasconsummated,andwassimilarto another agreement of the same date between du Pont and Imperial Chemical Industries of Britain. This agreement,debatedatlengthinthe1934NyeCommitteehearings,wasfoundunsignedinduPontfiles.Itwas agentlemensagreementthatcouldbedeniedifdiscovered.Theagreementdetailedexchangesofpatentsand technicalinformation.IndefiancetotheTreatyofVersaillesbanningGermancompaniesfromsellingmilitary explosives, it provided a means by which du Pont could sell Germanproduced explosives. The Nye report providesthebestsummaryoftheagreement: Inotherwords,thoughGermanmunitionscompaniescannotsellabroad,Americancompaniescansell forthem,andtoourowngovernmentatthat.[25]

In effect, the agreement between du Pont, DAG and VKR reestablished the prewar cartel between du Pont, KolnRottweilerPulverfabrikenandtheBritishNobelDynamiteTrust.Underthisagreement,duPontagreed nottoerectanypowderworksinEurope,andtheothersignersagreednottoerectpowderworksintheUnited States.Technicalinformationwasexchangedamongthesignatories,andduPontagreedtoinformtheothersof thequantity,qualityandrequirementsofallpowdersalestotheUnitedStatesGovernment.In1910,theJustice Department found the agreement a violation of antitrust laws, resulting in the breakup of du Pont powder works. Thisresulted in the formation of Atlas Powder and Hercules Powder. Within a few years of the 1910 ruling,duPontreorganizedinDelawareduetoitslaxregulationsofcorporations. AnagreementbetweenduPontandDynamitin1929controlledtheproductionoftetrazine,asubstancefor greatly improved ammunition primers. When WWII began in 1939, Remington (controlled by du Pont) receivedhugeBritishammunitionorders.BecauseofaclauseintheagreementwithI.G.,theBritishreceivedan inferiorcartridgelackingtetrazine.[34]

Part 3: The Great Paper Shuffle and the Cartels

TheGermansreestablishedcontroloverdyestuffsandpharmaceuticalswithalmostthesamelightningspeed with which they regained control over the Haber process. Under the Alien Property Custodian Act, Bayers operatingunitsandpatentsweresoldtoSterlingProducts.SterlinglatersoldthedyestuffbusinesstoGrasselli ChemicalCompany.Suchatransferofownershipwouldbeamoveintherightdirection,ifitwerenotforone disturbing factor: Grasselli Chemical Company employed many former Bayer personnel that supported Germanyduringthewar.Forinstance,RudolphHutz,theformermanagerofBayerinternedduringthewar, becamegeneralmanageratGrasselli. In 1920, Bayer made an agreement with Sterling covering patents and trademarks. Then, in 1923, Bayer entered into an agreement to control Grasselli, although Grasselli still held fifty one percent of the stock. On March23,1925GrasselliandBayerenteredintoanagreementwithHoechstCompany.Underthisagreement, Grassellis ownership was reduced to thirty five percent. On October 20, 1928 Grasselli sold its dyestuff businesstoI.G.ThreedayslaterduPontboughtoutGrasselliChemical. TheexampleofGrasselliChemicalillustratessomeofthetacticsemployedbyI.G.Anendlesspapershuffle resultinginthetransferofownership(innameonly)whileretainingthesamepersonnelwascommontomany postWWI deals. Deals where the American firm retained 51% ownership appeared to regulators that the Americanfirmwasincontrol.TherealitywasI.G.retainedultimatecontroloverpricing,plantexpansionand exportpolicies. ThepapershuffleofGrasselliChemicalsdyestuffbusinessdidnotendwiththe1928saletoI.G.In1929, I.G.mergedthemajorityofitsinterestsintheUnitedStatesintoanumbrellacompany,AmericanI.G.Underthis umbrella corporation were Grasselli dyestuffs, General Aniline, AgfaAnsco, Winthrop Chemical, Magnesium Development and others. In April 1929, thirty million dollars in American I.G. debentures were offered to investors. Within an hour of their release, the offering was oversubscribed.[39] Note the inclusion of Magnesium Development, which was I.G.s agreement with Aluminum Company of America. This agreement wouldfigureprominentlyattheonsetofWWIIindelayingtheproductionofaircraft. Asalreadynoted,SterlingDrugwaspartofthemazeoffrontcompaniesthatI.G.andBayerusedtoregain controloverassetsseizedduringthewar.In1918,theAlienPropertyCustodiansoldBayeratapublicauction. Sterling was the winning bidder at $5,310,000. Earl McClintock, a staff attorney for the Alien Property Custodian,arrangedthedetailsofthesale.OneofthefirstactsofSterlingwastohireMcClintockatmorethan threetimeshisgovernmentsalary. Law governing sales by the Alien Property Custodian penalized a purchaser acting for an undisclosed principalorresellingtoorforthebenefitofanonUScitizenwitha$10,000fine,tenyearsimprisonment,or both.ThepurchaserwouldalsoforfeitthepropertytotheUnitedStatesgovernment.[31]ThesaleofBayerto Sterlingclearlyfellwithinthescopeofthelaw,asdidmanyoftheperiodstransactions. The original contract between Sterling and Bayer remains secret. It is, however, well established that months after the purchase, Sterling president William Weiss met with Bayer executives in Baden Baden. An informal agreement of cooperation was reached. Shortly, Sterling formed Winthrop Chemical. In 1923, Winthropenteredintoacartelagreement,assigningtoitselfallofBayerspatents.Onceagain,thefamiliar50 50splitwaspartoftheagreement.

In 1925, , I.G. and Ste erlingWinth hrop brought t Metz into the Sterling orbit. The result r of all of the stock k transfers and t d paper shuf ffling was th hat I.G. regained control of the US pharmaceutic cal business. It cost I.G. a a m meretwomil lliondollars. The Hoe echstMetz Company was s also seized d by the Alie en Property Custodian. C M Metz claimed d that he had d b boughtback fthecompan ny,butitwas sthoughtto havebeena adubioussto ocktransactio on.In1921a a theassetsof c courtruledin nfavorofMe etz.Inabizar rreramblingruling,Judge eJuliusM.M Mayersaid: Asseizu urebytheAl lienProperty yCustodian islikelytoc carrythesug ggestiontothosenotinf formedin respect of o the contro oversy, that the demand dee (Metz) in i some man nner may ha ave been im mproperly associate edwiththee enemy,itisd desirableatt theoutsetto ostatethatn nosuchsitua ationexistsh here.The Transacti ionsheretoo okplacelongbeforeour rentryintot thewarand indeedbefo oretheEurop peanwar startedandhadnore elationstoei ither.ThatM Metzshouldd deliberately byhistestim mony etruetransa actionisnott tobethoughtof.Stockow wnershipwo ouldnotaffec ctthe falsifythe apportion nment of pr rofits. This testimony t of f Hauser can n only be re ejected upon n the theory that both Hauser H and Metz have willfully deceived the e court by false y.[35] testimony theruling,t S Shortlyafter theHardinga administrationappointedJudgeMay yertotheFed deral ge Julius M. Mayer r C CircuitCourt t.WhatMaye erlackedinl legalacumen nwasoffsetb byhispolitic calcorrectne essof Judg t thetime.May yerorderedt thedeportationofEmma aGoldman,ru ulingthatalienshadnor rights u under the co onstitution. In I another ruling, r Judge Mayer foun nd Scott Nea aring innocent of o obstructing t war. Nea the aring had wr ritten a pamp phlet about the relations ship between n big b business and d war. How wever, the Ju udge found the America an Socialist Party, who had p published the pamphlet, guilty of the e obstructing g the war. Such a ruling g was a sleig ght of h handbythej judge.Ifheh hadfoundNearingguilty y,itwouldhaveconstitutedaviolatio onof h hisfreespee chrights.On ntheotherh hand,theAm mericanSocia alistParty,as sanorganiza ation, lackedfreesp peechrights.Othervictim msofthegoo odjudgewereIWWmem mbers,whoc could Ge eorge Sylvester Viereck e expecttorec shestsentenc cespossibleinMayersco ourtroom. eivethehars rulingswere eareflection noftheprevailingattitud desandbelie efsof JudgeJuliusMayersr t days bus the siness leader rs. His ruling gs were extr remely prob business and d antiunion. . The judge showe ed no toleran nce for thos se that held political be eliefs differen nt from his. . The r reader shoul ld be aware that George e Sylvester Viereck V and his Burgerb bund campai igned e extensively f the elec for ction of Har rding. Follow wing the ele ection, Viere eck demand ded a p politicalpayo off.Hardingw wasnoncommittal.[91]V Viereckwould dbecomethemanbehindthe n notoriousNa azipublisherFlandersHa allandwould dbeindictedforsedition. By1925I I.G.hadestab blishedpowe erfulalliesin nsidetheRep publicanadm ministration.T The W Walter Teagle t thenSecretar ryofComme erce,Herbert tHoover,app pointedanin nememberb board,Hoovers C ChemicalAdv visoryComm mittee.Seated donthecommitteewereWalterTeag gle(Standard dOil o ofNewJersey y),Lammotd duPont,Fran nkBlair(PresidentofSterling)andHe enryHoward d ( (Vicepreside entofGrasse elli).Despitet theextensive etiesthefou urhadwithI. .G.theysato ona c committeew whoserolewa astohelpAm mericaschem micalindustr ryfightofftheI.G.cartel.[ [37] In 1928, Weiss brou ught the enti ire drug ind dustry togeth her in one giant g cartel. With L LouisLiggett t,heputtoge etherDrug,I Inc.,aholdin ngcompanyf forSterlingW Winthrop.Drugs p propertiesin ncludedUnite edDrug,Ligg get,BristolM Myers,VickChemicalandLifeSavers.Note t presence the e of the Vick k Chemical Company, C co ontrolled by y the Richard dson family. . The R Richardson F Foundation is one of th he many har rd right fou undations that promoted d the impeachmentofPresiden ntClinton.[32 2] La ammot du Pont w the Rep publican Nat tional Comm mitteeman fr rom Massach husetts, and d had Liggett was m made the fa alse claim th hat under President P Co oolidge, the Departmen nt of Justice had a approved the e creation of f Drug, Inc. It I wasnt unt til 1933, afte er Hoover was w booted out o of o office, that Drug, D Inc. wa as dissolved. . Also tied to o the illegal cartel of Dr rug, Inc. was s the n notorious Dr r. Edward Ru umely. Rume ely was in prison p after a conviction n for proGer rman a activitiesdur ringthewar.Hewasreleasedfromj jailbyCoolid dge.Rumely ythenwento onto b becomedirec ctorofVehex x,Inc.,anothe ercorporatio onformedby yWeiss.
Dr. Edward Rumely

T Throughout f paper shuf ffling and st tock transfer rs, the accou unting firm of Price Wa aterhouse the maze of colle ected fat fees s for auditing g the books of two of I.G G.s American affiliates, Sterling S and Standard Oi il of New Jerse ey.[33] Audits from Price Waterhou use helped sanitize the e records of f Drug, Inc. and other I.G. front comp panies. T TedClarkwa asvicepresidentforgov vernmentrel lationsofDr rug,Inc.from m1929until it was dismantled. oolidges pri ivate secreta ary. While on o Drug, Inc.s Clark was President Co roll,Clarkals soservedash horttimeasHooverssec cretary,duri inganabsenceofHoover rs payr regularsecretary y.In1942,Clarksfileswe eresuddenly ywithdrawnfromauction nanddonate ed as a sealed gift to the Libra ary of Congr ress. Those who w had see en the files prior to the eir sealingnotedcor rrespondenc cewithColon nelWilliamD Donovan,Coo olidgesAssis stantAttorne ey Gene eral, and Cha arles Hilles, former chai irman of the e Republican n National Co ommittee an nd close eassociateof ftheMorgan ns. N Notethetimi ingofthefile ewithdrawal,andthecorrespondenc cewithDono ovan.Donova an William m Donovan was closelyinvolvedwithbo othDrug,Inc c.andI.G.,an ndbecamed directorofth heOSSinJun ne 2.[36]Alater rchapterwil lldescribeth herevolvingdoorbetwee enWallStree etandUSint telligenceage encies,as 1942 well as the coverup of Am merican corp porations trading with the Nazis during d the war. w Note Donovans D onizingword dstowardsI.G.atHoover rssecondcon nferenceonthechemical lindustry: patro Sofarasitp presentlyappears,theso ocalledchem micalentente eandFranco oGermandy yestuffagree ement a appear to inv volve no atte empt to expl loit this mar rket. In fact, we have authentic assurances that these a arrangement tsarenotdir rectedagains stthemarket t.[38] I.G. had h learned its lessons well during the first wa ar. Its Amer rican interests were vuln nerable to seizure at wart time. In a mo ove that sho ould have set t off an alarm m about Ger rmanys inten ntions towar rds war, I.G. made an effor rttoconceal itsownersh hipofAmeric canI.G.furth her.Evenwit thWalterTe eagle,Preside entofStanda ardOilof New wJersey,and EdselFordo onitsboard ofdirectors, AmericanI.G.wasvulne erabletoseiz zureifwarb brokeout. With h sleight of hand, Ameri ican I.G. ass sets were tra ansferred to o a German controlled corporation c based in Switzerland, Int ternationale Gesellschaf ft fur Chem mische Unternehmungen n (I.G. Chem mie). It wa as loudly mthenonthat tAmericanI.G.wasSwiss scontrolled,andfreefromGermanin nterests,even nthough, proclaimedfrom l1940,thepr residentofI.G.,HermanS Schmitz,was salsopreside entofI.G.Che emie.[28] until T Theruseofc concealingGe ermancontro olthroughva ariousSwiss sconcernsso oonbecamea afavoritetac cticofI.G. With h the storm clouds c of wa ar on the hor rizon by the e late 1930s, it also became a favorit te tactic of th he Dulles broth hersinhelpingAmerican ninvestorsco oncealtheird dealingswith htheNazis. A Another Germ man firm se eized during WWI was Rohm R & Hass, which was sold to Ta anners Products. The tanningindustry yatthetimep playedanim mportantrole einsupporto ofwarrelate edchemicalf facilities.In1 1924,the inalGerman ownersrega ainedcontrol.Technically yRohm&Ha assofPhilad delphiawasi independent tofRohm origi & Ha ass of Germa any. They were merely owned o by th he same stoc ckholders. In n 1927, the two t firms reached an agreement conta aining the ty ypical division of territor ries. The agreement rest tricted Amer rican compan nies from ndEurope,grantingthoseareastotheGermanco orporation. SouthAmericaan D During the 1920s 1 and 1930s, Rohm m & Haas primary p bus siness was producing general g chem micals, in parti icularmethy ylmethacryla ate,alsoknownasPlexig glas.By1934 4,Plexiglasr reachedcommercialprac cticability and anewagree ementwasre eachedbetw weenI.G.,Roh hm&HassofPhiladelphiaandRohm m&HassofG Germany. m & Haas of o Philadelph hias territor ry was furth her restricte ed, and it was w prohibite ed from ent tering six Rohm busin nessareas:p photography, ,dyestuffs,artificialrubb ber,pharmac ceuticals,abrasivesandce elluloidmass ses. In1939,Rohm&Haascr rosslicensed ditsprocess formakingc castsheetsofmethylmet thacrylateto oduPont. wever, under the terms of the license e, du Ponts production p w would be lim mited to half of Rohm & Haas. By How 1940 0,themarketformethyl methacrylat tehadexploded,duetow wartimeapplications.D DuPontwas receiving enor rmousorders sforLucitea andPlexiglas sthatfarout tstrippedthe erestrictedp productiona agreement.O OnAugust 10,1 1942agrand djuryindictedbothRohm m&Hassand dduPontforrestrictingth heproductio onofwarmu unitions. B Besidesprod ducingmethy ylmethacryla ateforairpla anecanopies s,Rohm&Ha aasalsoprod ducedTegog gluefilm. Tego ogluefilmwasneededto oproducethe eplywoodusedforaircraftandmari inevesselssu uchasPTbo oats.Once again n, Rohm & Haas had a production agreement with a Ger rman firm co overing Teg go, in this ca ase Theo Gold dschmidt.

There are literally hundreds of examples of I.G. and other German firms regaining control over vital industrialprocessesinthe1920s.Amongthe moststartling wereGermaninterestsgainingcontrolovertwo areasinwhichAmericanindustrydominated:aluminumandmagnesium. In1907,thePittsburgh ReductionCompanyreorganizedas Alcoa.Alcoa wasclosely heldbythe Mellons, the Davises and the Hunts. Alcoa held two patents for the production of aluminum: the Hall Patent, which expired in 1906, and the Bradley Patent, which expired in 1909. Theoretically, the expiration of the patents wouldhaveallowedotherstoenterthealuminumbusiness.Inordertoretainitsmonopolyafter1909,Alcoa took steps to ensure its control over the aluminum market by buying up the raw bauxite supply. Until 1915 Alcoawasamemberofeveryworldaluminumcartel. By 1928, Alcoa owned thirtytwo subsidiaries including Duke Power of Canada, railroads, bauxite mines, fabricators, and power companies both in and out of the United States. Additionally, Alcoa controlled more thantwentyothercompanies. In 1928 Alcoa created the Aluminum Company, Ltd of Canada (Alted). In this move Alcoa sold its subsidiaries all its foreign properties, with the exception of its Dutch Guiana bauxite mines. The controlling interestofAltedremainedthesame,andE.K.Daviswasappointedpresident.ThecreationofAltedwasaruse byAlcoatoretainitsmonopoly.ItalsofreedAlcoatoenterintoadditionalEuropeancartelagreementsthrough itsAltedsubsidiary.WhenNaziwarcloudsappearedandtheUnitedStatesbeganadefensebuildup,theend result of Alteds creation became apparent: the United States was no longer the worlds largest aluminum producer;Germanywasnownumberone.[29] IntertwinedwithGermanygainingcontroloverthealuminumindustrywastheircontrolovermagnesium, another industry in which America was either dominant or competitive with Germany by the end of WWI. Magnesium is vital to munitions. Its used in tracer bullets, flares and incendiary bombs. Also, magnesium alloysarevitaltoaircraftproduction.Duringthefirstwar,eightAmericancompaniesproducedmagnesium. With the end of the war, and the reduction in magnesium demand, only two companies stayed in the business: Dow Chemical and American Magnesium Company (AMC). AMC was a wholly owned subsidiary of Alcoa. In 1931, Alcoa and I.G. penned the Alig Agreement. The Alig Agreement became the charter of the magnesiumindustry.Onceagain,theagreementformedajointcompanywitheachfirmholdingafiftypercent share. In addition, the shareholders of I.G. held the right to limit the production capacity of any producing companyintheUS,andcouldrestricttotalUSproductionto4,000tonsayear. In 1933, after continued pressure from AMC, Dow affirmed AMC as its preferred customer. In 1934 I.G. enteredintoanagreementwithDowtopurchase600tonsofmagnesiumin1935,withoptionsforthesame amountin1936and1937.Undertheagreement,DowwasrestrictedfromsellinginEuropewiththeexception of sales to I.G. and British Maxium. Under this arrangement, Dow sold magnesium to I.G at twenty cents a pound,thirtypercentlessthanitchargedAmericancompanies.[30] Theabovecartelagreementsareonlyafewexamples.Acompleteaccountingofallcartelagreements,and how they hindered the war effort, would fill volumes. Over one hundred American corporations had cartel agreementswithI.G.NoneoftheagreementswerelegalunderUStrustlaws,asallmonopolizedorrestricted trade.Additionally,manywereillegalunderAlienPropertyCustodianlaws,astheytransferredcontroltoI.G andotherGermancorporationsseizedduringWWI. Besides hindering the war effort at home, once war broke out in Europe cartel agreements had an enormous impact on global geopolitics. Almost all cartel agreements banned American corporations from South America. Germany didnt need to fight for South American markets; American businesses willingly handed them over to I.G. when they signed a cartel agreement. Only after war broke out were American corporationsallowedtoexpandtheirmarketsintoSouthAmerica,andthenoftenonlytoGermanfirmsalready there.[40] It was through these South American outlets that American corporations continued to supply Nazi Germanyduringthewar.TheyservedasthemethodofchoicetocircumventtheBritishblockade.Byusinga South American firm, either under I.G.s control or the subsidiary of an American corporation, shipments for GermanywereexportedtoasocalledneutralcountrysuchasSpainorSwitzerlandandthenontoGermany.It wasthroughaSouthAmericansubsidiarythatStandardOilofNewJerseycontinuedtosupplyNaziGermany with oil and munitions. Standard Oil of New Jersey was also distributing proNazi propaganda throughout SouthAmericaduringthewar.

Corporate apologists try to dismiss these cartel agreements simply as good business practices. However, legal documents from I.G. Farben suggest they were an integral part of Germanys war plan. The following excerptsfromitslegaldepartmentleavenodoubtastoI.G.splans: Afterthefirstwarwecamemoreandmoretothedecisionto tarn(Germanforhoodorcamouflage) our foreign companies in such a way that participation of I.G. in these firms was not shown. In the courseoftimethesystembecamemoreandmoreperfect. Ifthesharesorsimilarinterestsareactuallyheldbyaneutralwhoresidesinaneutralcountry,enemy economicwarfaremeasuresareineffectual;evenanoptioninfavorofI.G.willremainunaffected. Protective measures to be taken by I.G. for the eventuality of war should not substantially interfere with the conduct of business in normal times. For a variety of reasons it is of the utmost importance thattheofficialsheadingtheagentfirms,whichareparticularlywellqualifiedtoserveascloaks,should becitizensofthecountrieswheretheyreside. In practice, a foreign patent holding company could conduct its business only by maintaining the closestpossiblerelationswithI.G.,withregardtoapplications,processingandexploitationofpatentsit issufficienttorefertoexperience. Theadoptionofthesemeasureswouldofferprotectionagainstseizureintheeventofwar.Inthecase ofwinningthiswar,themightfulsituationoftheReichwillmakeitnecessarytoreexaminethesystem of Tarnung.Politicallyseen,itwilloftenbewishedthattheGermancharacterofourforeigncompanies isopenlyshown. After the outbreak of war, I.G. legal department continued discussing tarnung. These camouflaged companiesproveduseful. Onlyabout1937whenanewconflictbecameapparentdidwetakepainstoimproveourcamouflage in endangered countries in a way that they should, even under wartime difficulties, at least prevent immediate seizure. Camouflage measures taken by us have stood us in good stead, and in numerous caseshaveevenexceededourexpectations.[41] The excerpts above leave little doubt as to the intentions of I.G., and the central role it played in Germanys quest for world domination. A Treasury report on espionage and saboteurs made in 19411942 is equally vivid: Inthetwentyyearperiodbetween19191939,Germaninterestssucceededinorganizingwithinthe United States another industrial and commercial network centered in the chemical industry. It is unnecessarytopointoutthatthesebusinessenterprisesconstitutedabaseofoperationstocarryout the Axis plans to control production, to hold markets in this Hemisphere, to support fifth column movements,andtomoldourpostwareconomyaccordingtoAxisplans.Thisproblemwithwhichwe arenow facedismoredifficultthan,althoughsomewhatsimilarto,theproblem facedbyusin1917. Thebackgroundisvastlydifferentfromthatwhichexistedin1917. Certainindividualswhooccupiedadominantplaceinbusinessenterprisesowedalloftheirsuccessto theirbusinesscontactsinthepastwithI.G.Farben.[42] TheTreasuryreportwentontodiscussthepracticeofI.G.sendingspiesandagentsintotheUnitedStatesto become citizens. The report also discusses the necessity of dismissing, as spies or agents of the Nazis, one hundredAmericancitizensfromGeneralAniline,includingfivekeyexecutives. I.G.semploymentofspies,anditsrelationshiptotheGestapo,wasmadevividlycleartoCongressmonths beforethebombingofPearlHarbor.RichardJuliusHermanKrebs[JanValtin],formerGestapoagent,testified before the Dies Committee on UnAmerican Activities. Later chapters will discuss how the Dies Committee subvertedtheinvestigationofNazis. Krebs testified at length, from his personal knowledge of German cartels, about the organization of Nazi propaganda,espionageandsabotageintheWesternHemisphere.Inhistestimony,KrebsstatedthatHamburg American Lines and Zapp Transocean News Services were nothing more than appendages of the Gestapo. Krebs detailed how businesses in the United States employed Gestapo agents, and how those agents were placedinotherfirmsthatwerenotapartofproNazicartels.

Krebs testimony revealed that the Gestapos Industrial Reports Department had special schools to train Germans,andAmericansofGermandescent,toworkinAmericaasmechanics,engineers,draftsmen,newsmen andeventeachers.KrebswasspecificabouttherelationshipofI.GtotheGestapo: toobtaininformationaboutoursecurityprogramandtoproducechokepoints,ortosabotageour warefforts. The I.G. Farbenindustrie, I know from personal experience, was already in 1934 completely in the handsoftheGestapo.TheywentsofarastohavetheirownGestapoprisononthefactorygroundsof theirlargeworksatLeuna,andbegan,particularlyafterHitlersascenttopower,tobranchoutinthe foreign field through subsidiary factories. It is the greatest poison gas industry in the world, concentratedunderthetitleofI.G.Farbenindustrie.[43] WhiletherewaslesssabotageduringWWIIthantherewasduringWWI,thenewtacticswerejustasusefulin delayingtheproductionofwarequipmentandmunitions.Asanexample,StandardOilofNewJerseymanaged todelayanyincreaseintheproductionoftoluoluntil1941outofdeferencetoI.G.Toluolisthevitalstarting materialforproducingbothTNTandbutadiene,thestartingpointforsyntheticrubber. There is at least one report that Standard intended to resume its cartel link with I.G. following WWII. In May 1942, Walter Winchell stated that a news broadcaster for CBS had been effectively silenced when reportingonboththeTrumanandBooneCommittees.Thisbroadcasterhadincludedinhisscriptreportsthat StandardintendedtoresumetieswithI.G.whenthewarended.ACBScensorkilledtheitem,andwasreported tohavetoldthebroadcastertogoeasyonStandard,youknowwecarryplentyoftheirbusiness.[44] By the time Pearl Harbor was bombed, support for fascism was widespread, especially within large corporations. Some of this was the direct result of IBM President Tom Watsons tenure as president of the International Chamber of Commerce. The ICC enthusiastically promoted trade with Nazi Germany. The InternationalChamberofCommerceheldits1937worldcongressinBerlin,duringwhichSchachtpresented WatsonwithHitlersmedal.Watsonlaterreturnedthemedal,butonlyafteritwasclearwarwasimminent. Throughoutthe1930sseverallargenewspaperchainswereopenlyproNazi,asweremanycongressmen. Bytheendof1942theProclaimedListofblacklistedcompanies(NazifrontcorporationsinEuropeandSouth America)grewtoover5,000.[45]Intheprocess,manyAmericancorporationswereexposedtostillbetrading with the Nazis. None of these companies would ever face charges, as by 1942 support for fascism and the corporatestatewasthoroughlyentrenchedinAmericancorporateculture. Support for fascism within the corporate community can be traced back to the period immediately following WWI into the 20s. None of the cartel agreements would have been possible without the voluntary cooperation of Americas corporate leaders. Many, such as du Pont, actively sought out cartel agreements followingtheFirstWorldWar,whileothers,suchasStandardOil,werewillingtoreachnewcartelagreements with I.G and Germany once the Second World War ended. The widespread enthusiasm to enter into such agreementscanonlybeunderstoodbyexploringtheattitudesofAmericascorporateleadersfollowingWWI.

Part 4: The Red Scare of 1919

ThewarhadbeengoodforAmericancorporationsbottomlines,withmanyreapingfatprofits.Priceshadbeen frozenduringthewar,andbusinesseswereeagertoraisepricesoncecontrolswerelifted.Ineffect,theleaders ofcorporateAmericasawthemselvesasvictimsofthepoliticalatmosphereoftheprevioustwentyyears. First,theirpriceshadbeenfrozenduringthewar.Second,manycorporationshadbeenseizedbecauseof theirillegal,traderestrictingcartelagreementswithI.G.Moreover,priortothewar,theysufferedunderthe greattrustbuster,TeddyRoosevelt. Infact,leadersofcorporateAmericawerespoilingforafight.Theliberalandprogressivemovementsthat had ushered in the new century were fueled largely by the muckrakers. The press had exposed the robber baronsandtheirpracticesforalltosee.Theattackonorganizedcapitalandtherichelite,(suchasRockefeller, Morgan and Mellon) was fully justified. Their policies were universally detested and resented by the public. Naturally,corporateAmericaresentedtheattacksandsoughttoresumebusinessasusual. However, to the leaders of corporate America, business as usual meant recreating the huge trusts, and reestablishing their monopolies. Inking new cartel agreements with I.G. was merely reinstituting their perceivedrighttoruletheworld.Thesimilarityofthecartelagreementstothebehavioroftherobberbarons cannotbeunderestimated.

A Attheendof fWWItheleadersofcorporateAmer ricasawtwo othreatstot theirdreamsofgrandeur rlooming onth hehorizon:o organizedlab borandtheB BolshevikRevolution.Ou utofthesethr reatsthemo ostshamefulperiodof polit ticalrepressi ionwaslaun nched,theGreatRedScar reof1919.H Havingexperiencedfirsth handthepow werofthe press,corporate Americaem mployedthep pressinafullscaleassau ulttoregaint theirstature e.Theyused thethree tsuccessfulp propagandae elementseve erdevised:p patriotism,re eligionandco ommunism. most F Fanning Red d Scare flame es required the employm ment of eve ery possible asset to des stroy unions s and the threa atsofbothco ommunisma andsocialism m.Thegroun ndworkforth hisassaultw waslaidbefor retheendof fthewar. J.P Morgan, M acco ording to Co ongressman Oscar Calla away, had purchased p co ontrol over the media. Callaway inser rtedthefollo owingintoth heCongressio onalRecord: March, 1915, In 1 the J.P P. Morgan in nterests, the steel, shipbuilding, and d powder int terests, and their s subsidiaryor rganizations, ,gottogether12menhig ghupinthe newspaperw world,ande employedthe emto s select the mo ost influentia al newspape ers in the Un nited States and a sufficien nt number of them to co ontrol g generallythe epolicyofth hedailypres ssoftheUnit tedStates.T These12men nworkedtheproblemo outby s selecting179 9newspapers,andthenb began,byaneliminationp process,toretainonlyth hosenecessar ryfor t thepurpose ngthegenera alpolicyoft thedailypre essthrougho outthecount try.Theyfou undit ofcontrollin w only nec was cessary to pu urchase the control of 25 of the grea atest papers s. The 25 pap pers were ag greed u upon; emissa aries were sent s to purc chase the po olicy, nationa al and intern national, of these paper rs; an a agreementw wasreached;t thepolicyof fthepapersw wasbought,tobepaidfo orbythemon nth;aneditorwas f furnished for each pape er to proper rly supervis se and edit information n regarding the questions of p preparedness s, militarism m, financial policies, p and d other thin ngs of nation nal and inte ernational nature c considered v vital to the interests i of the purchas sers. This policy also included th he suppression of e everythingin noppositiontothewishesoftheinter restsserved.[73] The Morganfamily,alongwi iththeirallie esalsobankr rolledtheformationoftheAmerican nLegionin1 1919,and craft teditintoau unionbustin ngorganizationofthugs. Theinitialo operatingoff ficersoftheL Legionwerebankers, stock kbrokersand dthelike.Th hroughoutthe e1920s,theLegionwase employedas saunionbus stingorganization. T The Legion took on a fascist char racter almos st from its birth, and would w play a prom minent role in i the fascist t plot against Roosevelt in the 1930s s. In 1923, Commander C in Chief f of the Legi ion, Alvin Ow wsley, openly y embraced Mussolini, and a endorsed d fascism as a viabl le policy for the United States. Qu uoted in Th he Journal of the Nation nal Educatio on Assoc ciation,Owsl leyequatedt theLegionto oAmericaastheFascistiw weretoItaly y. theAmeri icanLegions standsready ytoprotecto ourcountrys sinstitutions sandidealsa as t theFascistid dealtwiththe edestruction nistswhome enacedItaly.TheAmer ricanLegionis f fightingevery yelementth hatthreatens sourdemocr raticgovernm mentsovie ets,anarchist ts, IWW,revolut tionarysocia alistsandeveryotherred d.Donot forgetthatth he Fascistiar re t toItalywhat theAmerica anLegionist totheUnited dStates.[16] Alvin Owsley Addi itionally,theLegiontookonaracistc characterthr roughthe192 20sand1930s,andserve ed asar recruitingba aseforthere ebirthoftheK Klan.Inthes south,manyLegionposts sranandope eratedasKla ancells. T Thisshouldn notbetaken nasabesmir rchingoftho osethathave ehonorably servedtheir rcountry.In nfact,the disgu ustofmany disgruntled veterans,wh horesented beingused ascannonfo odderbythe ewealthyeli ite,ledto thef formationof theVeterans sofForeign Wars.Itwas stheVFWth hatledthefig ghtforearly paymentof veterans bonu usesafterthe e1929stock kmarketcras sh.TheAmer ricanLegionstoodidlyby y,supporting gthefailedp policiesof WallStreetandtheHooverad dministration. T Theimportan nceofthean ntiunionaspectsoftheLegionisappa arentwheno onelooksattheeventsle eadingup toth he1919RedS Scare.Bythe eendof1919 9,thepurcha asingpowerofa1913do ollarhadshrunkto45cents.Food costs shadincreas sed84%,clo othing114.5%and furni iture by 125%.Bytheen ndof 1919,t thecostofli ivinghad risen n 99% in the e preceding five years.[4 46] Wages du uring this tim me had risen n, at most, fi ive to ten pe ercent for salar riedemploye ees.Infact,w workerssuch hassalaried clerks,polic ceandothersinsimilarp positionswe ereworse offth hanatanytim mesincetheCivilWar. O Organizedlab bormadesu ubstantialgai insduringth heearlier,mo oreliberaltim meswithsuc chlaborfriendlybills asth heClaytonAc ct,Seamens Lawandthe eAdamsonA Act.Members shipintheA AmericanFed derationofL Laborhad incre eased from approximate ely 500,000 in 1900 to over four million m by 1919. 1 Unions s had maint tained an effec ctive truce with w manage ement durin ng the war, but with wars w end, unions u took the offensiv ve. Many

employers were willing to grant moderate wage increases, but absolutely refused to negotiate or even acknowledgeworkersrightstojoinunions. PresidentWilsonhadforeseenthecomingstruggleofunionsasevidencedinhisremarktoSecretaryofthe Navy,JosephusDanielsin1917,justpriortotheUnitedStatesinterventioninthewarinEurope: Everyreformwehavewonwillbelostifwegointothiswar.Wehavebeenmakingafightonspecial privilege.Warmeansautocracy.Thepeoplewehaveunhorsedwillinevitablycomeintocontrolofthe country for we shall be dependent upon steel, ore and financial magnates. They will ruin the nation.[47] Bylate1919,Wilsonwouldbebedriddenduetoastroke,andwouldremainineffectiveforthelastyearofhis term. The industrialists and leaders of corporate America, however, wanted a return to normalcy, meaning freedomfromgovernmentregulation,freedomfromunionsandfreedomfrompublicresponsibility.Thus,the stagewassetforafullscaleassaultagainstorganizedlabor.Majorstrikeswerefrequentin1919,withatotal of 3600 strikes involving over four million workers. Strikers were only occasionally successful, with most strikesendingwithnoconcessionstolaborortheunions. Secondarytotheplightoforganizedlabor,butcentraltothe1919RedScarewerevariousespionagelaws enactedduringthewaraimedatGermanagentsandcartels.Theselawswouldnowbeusedagainsttheleaders ofthelabormovement,andtheleftingeneral. Duringthewar,hysteriawaswhippedintofrenzybyindependentagenciessuchastheNationalSecurity League, the American Defense Society and the governmentsponsored American Protective League. These organizationshadconvertedotherwisesaneAmericansintoragingsuperpatriots.Moreoftenthannot,these superpatriotsandtheirorganizationswereablightonfreedom,andwereusedbytherightwingtogainand maintainpowerinmuchthesamemannerasdidMinnesotaRepublicanGovernorBurnquist,giveninthefirst chapter. These superpatriot groups gathered their strength from the right wing, not the general public, their financialsupportcomingdirectlyfromcorporationsandtherichelite.TheNationalCivicFederationreceived most of its support from V. Everit Macy, August Belmont and Elbert Gary. Likewise, the National Protective LeaguewassupportedbyT.ColemanduPont,HenryFrick,J.P.MorganandJohnD.Rockefeller.[50]Whilethe NationalCivicFederationwasunderthedirectionofMatthewWollasactingpresident,itcollaboratedclosely withNaziagentsinthiscountry.[62]Anothergroupfromthe1920sthatunderwentthetransformationfroma nativistgrouptofascismwasHarryJungsAmericanVigilantIntelligenceFederation.[67] Ineffect,thesesuperpatriotgroups,alongwiththeAmericanLegion,werebridgingthechasmbetweenthe rich elite and the general population. These groups were fashioned in such a way as to appeal to a large segment of the population by invoking a false sense of patriotism, while the directors and operating officers remained fully under the control of the elite. Secondary to the patriotism of these groups was a very conservative economic agenda. With the exception of the National Civic Federation, all of these groups were virulentlyantiunion.TheNationalCivicFederationincludedafewtradeunionistsonitsboardofdirectors,but stillmaintainedanaggressiveopenshoppolicy. Inthepostwarperiod,themembershipofthesepatriotgroupswasrelativelysmall.However,theyexerted an influence far outstripping their numbers. Their propaganda efforts were well funded and organized. The NationalSecurityLeaguesentpamphletstoschoolteachers,clergy,businessmenandgovernmentworkers.In every major city, they formed a flying squadron of speakers to whip up public sentiment against radicalism. Thereadershouldunderstandthatunionismatthetimewasregardedbythesegroupsasradicalism. Central to the hysteria were three Federal acts. The first was the 1917 Espionage Act. This act made it illegaltoconveyfalsereportswiththeintenttointerferewiththeoperationorsuccessofthemilitaryforcesof theUnitedStates,ortopromotethesuccessofitsenemiesortoattempttocauseinsubordination,disloyalty andmutiny. The second was the Sedition Act of 1918. Under the Sedition Act it was illegal to utter, print, write or publish any disloyal, profane or abusive language about the form of the United States government, the Constitutionorthemilitary. The third act, passed in October 1918, decreed that all aliens who were anarchist or advocated the assassinationofpublicofficialsweretobeexcludedfromadmissiontotheUnitedStates.

W While only a a handful of proNazis would w ever fa ace charges under u these laws during g WWII, thou usands of indiv vidualswouldberounded dupundertheselawsin1919.These elaws,andth heplightofla abor,wouldnowplay acen ntralroleint theeventsle eadingupto themasshy ysteriaknow wnasthePalm merRaids,or rtheGreatR RedScare of19 919. O Oneofthefir rstvictimsoftheespiona agelawswas sVictorBerg ger,oneofth hefounders of the Socialist S Par rty. The Socialists oppos sed the war r, as did Ber rger. In 1918 Berger was arres stedunderth heEspionage eActforhiss statements,o oneofwhich hfollows: Personally,I Iwasagainst tthewarbef forewarwas sdeclared.Butnowsince eweareinth he w war,Iwantto owinthiswarfordemoc cracy.Letushopewewil llwinthewa arquickly.Th he w of the United war U States s against Ger rmany canno ot be justifie ed. The blood d of America an b boysisbeing gcoinedintoswollenprof fitsforAmer ricanplutocrats.[48] Berg ger was arre ested for the e latter part t of his state ement that threatened t t leaders of the corporate Ameri ica. While aw waiting his trial, t Berger r ran for his old seat in the House of resentatives, winning it back b on a pe eace platform m. In January y 1919, Berg ger was foun nd Repr Victo or Berger guilt ty of conspiracy to viol late the Esp pionage Law w, and sente enced to twenty years at Leav venworth.Hi isconviction nwasonlyth hebeginning gofthedestr ructionof th heSocialist Party.Party P S Secretary Char rlesSchenck, ,whohador rderedthep printingofleafletsthatdiscouragede enlistment,w wasconvictedshortly after rBerger. M Many other prominent p members m of the t Socialist t Party were arrested for r violations of theE EspionageAc ct.InJune19 918,EugeneDebsdelive eredascathingspeechde enouncingth he arres sts of such prominent Socialists as s Charles Ru uthenberg, Alfred A Wagenknecht, Ka ate RichardsOHareandRosePastorStokes.Shortlythere eafter,Debswasarrested d. T Thearrestso ofprominent tSocialistsw weresystemat tic,andbefor rethehyster riaofthe191 19 RedScarewasov vertheparty ywouldbede estroyed.The ewarprofite eerswouldbeprotected. C Closelyassoc ciatedwiththeSocialist Partyinthe mindsofthe epublicwer remembers of theInternational lWorkersof f theWorld,o orWobblies.Foundedin1905asapr rotestoverth he rationofLab bor,theWobb blieswereag ggressiveinb bothdemand ds conservativeAmericanFeder Euge ene Debs actions.Like etheSocialists,theWobb blieswouldb besingledou utduringthe eRedScarefo or anda destr ruction. B Before the wars w end, corporate Am merica enlist ted the pres ss in their defense d usin ng perhaps the t most effec ctive propaganda tool av vailable: com mmunism. The Bolshevik ks were now w attacked for f the Bres stLitovsk Trea aty, as well as their atta acks on cap pitalism. Usin ng the wild claims of the t superpa atriot groups s, church maga azines, busin ness and fina ancial journa als, and the general pres ss struck out at Bolshev vism. Bolshev viks soon beca ameinterchangeablewith hcriminal,G Germanagents,anarchist ts,IWW,soci ialistsandec conomicimb beciles.In thee eyes ofthep press,therew was nodifferencebetwe eenaWobblieandaBolshevik.Both hweretantam mountto treas son. C Claims made e in the pres ss about the Bolsheviks were w ludicro ous. One par rticular horr ror story in the t press made the stagge ering claim that t in Petro ograd the Bo olshevik had an electric guillotine th hat could beh head five hund dred people an hour. Bolsheviks B w were portray yed as wild, , bloodthirst ty murderer rs, and analogous to Wob bblies. P Perhaps the most astoun nding aspect t of the pres ss blood lett ting towards s Bolsheviks was in supp porting a Unite edStatesint terventionfo orceinRussia a.Manyofth hesamerigh htwingforce eswithinthe USthathadopposed entry y into a war r with Germa any now sup pported inte ervention in Russia. Whi ile the overw whelming ma ajority of Americans were e isolationist ts, right win ng pressure was strong enough that President Wilson sent t a small ingent of fo orces into Russia R with the limitatio on that they y could not t intervene in Russian domestic conti affair rs.[49] Tagging along wi ith this cont tingent of US S troops as a a missionary y was William m Dudley Pe elly. Pelly woul ldlaterfound dtheSilverS Shirts,apro Nazigroup. C Combiningp ropagandafr romthenationsnewsm media,fanned dintoafury bythesuper rpatriotgroups,with the dismal d pligh ht of labor, the t nation was w primed for f trouble. Three event ts, the Seattl le general st trike, the bombingsandtheBostonpol licestriketri iggeredthee epidemicproportionsofh hysteriareac chedinlate1 1919. T Thefirstofth heseeventsw wastheSeat ttlegeneralstrike.Pacific cNorthwestw workershad dbeenhitparticularly hard d by inflation n. Seattle had d been a hub b of wartime e shipbuildin ng, causing a a severe disl location of peacetime p industries,housingshortages sandextrem meinflation.A Asaresult,t thePacificNo orthwestwa asahotbedo ofactivity

fortheIWW.Evenbefore f etheshipyar rdworkersw walkedoffthe ejob,areane ewspapersw werebusyfieldingarticles s a askingwheth herstrikesw wereforwage esorBolshev vism.OnJanu uary21,191 19,35,000sh hipyardwork kersstruckin n v violation of their t contrac ct, which had two month hs to run. The director of the Emer rgency Fleet Corporation n, G GeneralChar rlesPiez,refu usedtodiscu ussanymatte ersrelatingtoconditionsofemploym ment. OnFebru uary3,theSe eattleCentral lLaborCoun ncilannounce edthatagen neralstrikein nsupportof f theshipyard d w workerswas tobeginonFebruary6.Consequentl ly,Seattlewa asgrippedbymasshyste eria.Thepub blic,fearfulo of s shortagesfro omthestrike e,wentona buyingfrenz zy.Drug,dep partmentand dgrocerysto oresweresw wampedwith h c customersst ockpilinggoods.Hardwa arestoreshadmoreorde ersforgunst thantheycou uldfill.TheL LaborCounci il p promptly ran n an editori ial to calm the t hysteria, stating tha at the Strike e Committee e would run all industry y n necessaryto thepubliche ealthandwe elfare,andthatlawandorderwouldb bepreserved d. uary 6 saw scores s of ar rticles in the e local medi ia equating the t strike to o The remaining days until Febru B Bolshevism, aming the public. On the morning of o the 6th, 60,000 6 work kmen struck. The unions s further infla g grantedexem mptionstoga arbagetruck ks,milktruck ksandeven laundrytruc cks.Atnotim meduringth hestrikewas s S Seattle left without w food, coal, water r, heat or lig ght. Even mo ore remarkab ble was that t no violence e marred the e s strike. mistswasits smayor,Ole Hanson.Han nsonhadbeendefeated inhis AmongSeattlesalarm S Senate race in i 1918, then n ran for ma ayor. Origina ally a Republican, Hanso on switched to t the P ProgressiveP Partyin1916 6,andhadsu upportedWilson.Heharb boredanintensehatredofthe IWW,believingtheywere eattherootofalllaboru unrest.Hansonsfearrea achedafever rpitch w when the gen neral strike was called. He H had no doubts d that it t signaled th he beginning of an a attemptedre evolutionwh hichwanted dtotakepos ssessionofo ourAmerican ngovernmen ntand t trytoduplica atetheanarc chyofRussia a.Hansona alsohadnod doubtthatth hemanwho could b bustthisanar rchywouldh haveaveryp promisingpo oliticalcareer r. AtHanso onsrequest, federaltroo opsfromFor rtLewisweredispatched dtoSeattleo onthe Ole Hanson m morningofF February6.E Evertheambitiouspolitic cian,Hansonpersonallyl ledthetroop psinto t city with the h a huge Am merican flag draped d over his car. The e following day d Hanson declared tha at unless the e s strike was ended, e he would use the troops to crush the strike s and operate o all th he essential enterprises s. H Hansonswor rdswouldframethehyst teriatocome elaterintheyear. The tim me has come e for the people in Seat ttle to show w their Americanism. Th he anarchist ts in this communi ityshallnotr ruleitsaffair rs.[51] S Seattlespape erscontinue edabarrage ofcondemna ationagainst tthestrikers s,andcalled fornocomp promisenow w o orever.[51] Facingawrathofcriticismcondition nedbythefe earofrevolut tion,thestrikeendedontheeleventh h w withHanson g:Therebell lionisquelled,thetestca ameandwasmetbySeatt tleunflinchin ngly.[52] proclaiming ek,thenation nhadfocuse edontheSea attlestrikew withthemedi iafanningth heflamesthatwouldsoon n Forawee e erupt. Banne er headlines and editorials across th he nation lab beled the st trikers as Re eds. The Chic cago Tribune e w warneditsre eadersitsonlyamiddlin ngstepfromPetrogradto oSeattle.[53 3] Hanson was w not the e only politician that sa aw a bright future in denouncing d u unionism an nd strikes as s B Bolshevism. Minnesota Senator S Knute Nelson declared that t the Seattle strike posed a greater danger than n s strikes durin ng the war. Utah U Senator r William King stated th hat strike ins stigators wer re confirmed d Bolsheviks s. W WashingtonR Representati iveWilliamK Kingsaid:F FromRussia theycame,a andtoRussia atheyshould dbemadeto o g go.[53] hs of the str rike, Ole Han nson resigne ed as mayor r of Seattle and toured the country y Within a few month lecturing on the danger of domestic c Bolshevism m. The lectur re circuit pro oved financi ially rewardi ing; in seven n m monthsHans sonnetted$3 38,000,comp paredtohisa annualmayo oralsalaryof f $7500. TheSeatt tlegeneralst trikewasaf fundamental causeofRed dScarehyste eria,asitfoc cusedAmeric casattention n s solelyonwh atbecameto obecalledra adicalism.Th hemediasuc ccessfullyfra amedthestr rikersasRed ds.Anystrike e a afterSeattle wouldbefra amedthesa ame,eachwitheverincre easinghyste eria.The mos st successful lpropaganda a p ployoftherig ghtwinginA Americahadbeensuccessfullylaunch hed. Bothfore eignanddom mesticevents skeptthefea arofBolshev vismalivefor rtheremaind derofFebru uary1919.On n F February20, ,itwasreportedthatFre enchPremie erClemencea auwaswoun ndedbyaBo olshevikagen nt.Fourdays s later,Secret Serviceagen ntsarrested fourWobbli iesinNewY YorkCity.Thepressimm mediatelyseiz zeduponthe e a arrests,allegi ingtheywer repartofaw worldwideplo ottokillAme ericanandAlliedofficials s.

T The next mo onth, The Ch hicago Tribu une reported d that a pla an for planti ing bombs in i Chicago had h been unco overed.Thef followingmo onth,theUS Department tofJusticea announcedth heuncoverin ngof aconsp piracyby anar rchistsinPitt tsburghtose eizethearsen nalanduseth heexplosivestolaythec cityinruins. Itwasntunti ilApril28th hatproofofa anybombplo otsemergedwhenOleHa ansonsoffice einSeattlereceiveda kage.Hanson nwasinColo oradoonaV VictoryLoan tour,andth hepackagew wasleftunop penedonatable.The pack wrap ppingwastornintransit,andaliquid dleakedonto othetableca ausingseveredamage.Th heliquidwasanacid, andt thepackagecontainedah homemadeb bomb. T followin The ng day Thom mas Hardwic cks maid los st both hand ds when she e opened a similar pack kage that explo oded. Hardw wick was a former Sena ator from Georgia. An alert a postal clerk, readi ing of the bombings, b reme embered set tting aside si ixteen simila ar packages for insufficient postage just days ea arlier. He loc cated the pack kages, and no otified autho orities. All six xteen were the t same typ pe of bomb that t injured Hardwicks maid. An addit tional eighte een bombs were later found in tra ansit. The packages p we ere addresse ed to, among others, Attor rneyGeneralPalmer,the eSecretaryo ofLabor,Chie efJusticeHolmes,JohnD D.Rockefeller r,J.P.Morgan n,several sena atorsandimm migrationoff ficials. T Thetimingof fthemailing gsmadeitob bviousthatth hebombswe eretargetedforMayDay y.Thenationwasnow prim medforMayD Dayviolence e.InBoston,1 116Socialist tswerearres stedwhenvi iolenceerupt tedduringa MayDay parade.Notasin nglenonsocialistwasar rrested.InNe ewYork,rio otsoldiersra aidedtheRus ssianPeople esHouse, fices of The Call C , a libera al magazine. Other cities saw similar r events. Clev veland erupted in an and later the off yofviolence,withoverfortysocialists sinjuredand danother106 6arrested. orgy T Thecommon nlyacceptedt triggerforth heresultingm masshysteri iawastheJu une2bombin ng of At ttorney Gene eral Palmer s home. A copy c of the anarchist a pa amphlet, Plai in Words wa as found near the doorsteps. d Pa almer himse elf was an am mbitious poli itician with an eye on th he 0presidentia alnomination.WhilePre esidentWilso onremained healthy,Pal lmerwashel ld 1920 inch heck,butast thePresident tshealthdet teriorated,Palmerbegan nassertingm moreandmor re powe er. It wasnt t until the Pr resident was s bedridden that Palmer r was able to t unleash his assau ultonunions sandsocialis sts.Meanwh hile,thepress swasfanningtheflamesofaredscar re witheachstrike. Attorne ey General A Along with the t bombing g of Palmers s residence, the Winnip peg general strike s in Jun ne A. Mitch hell Palmer furth her heighten ned tensions. . Just like th he Seattle str rike, the Win nnipeg strike e was frame ed withtheBolshev viklabel.New wspapersran nexaggerated dheadlinest toshockthepublicandh hardenpublicopinion nstunions.F FurtherinflamingthepublicwaslaborsinsistenceonthePlumbPlan,a planforgov vernment again owne ershipofthe erailroads. B Bylatesumm mer,thepubl licwasnearlyhysterical withfearof Bolsheviksa andunions.A As 1919 9progressed d,eachevent tledtogreat teranxietyandfear.Each hnewstrikeratchetedth he hyste erialevelup further.Fina ally,inlates summer,theBostonPolic cewentonst trike.Policein other cities had already unio onized, but police p comm missioner, for rmer mayor Edwin Curti is, ntiunion.He estatedthat apoliceoffic cercouldnot tsimultaneouslybelongt to wasvirulentlyan nion and per rform his sw worn duties. Massachuse etts governo or Calvin Coolidge backe ed a un Curti is. Coolidge took a ha ard line tow wards the striking s police officers. Soldiers an nd volun nteers took to the stree et to police Boston, and d it was ann nounced tha at none of th he Calvin Coolidge strik kers would be b rehired. Coolidges C hard line imm mediately pl laced him in n the nation nal spotl light. In Septembe er, coal mine ers went on strike. With h President Wilsons he ealth failing at an alarm ming rate, rney Genera al Palmer argued for in nvoking an injunction under the Lever L Act. Organized O la abor had Attor supp portedtheLe everActand itsuseofinj junctionsto stopstrikes intheevent tofawar.W Wilsonhadgiv venlabor the express e prom mise that th he act would d never be used u during peace. Labo or was outra aged at the betrayal. With houttheappr rovalofthee entirecabine et,Palmerinv vokedtheac ct,andaninju unctionwasissuedonOc ctober30 byfe ederaljudgeA AlbertAnder rson. It was amidst this back kground that t the Massa achusetts gov vernors rac ce took on national n sign nificance. he Boston po olice strike was w fresh in n everyones mind, and Coolidge bec came the Coolidges hard stance in th nimouschoic ceofthe Rep publican Par rty forreele ection. TheB Bostonpolice estrikebeca amethefocal lpoint of unan ther race,withthe epressloudlyframingth heelectionas sabattlebetw weenBolshe evismandlaw wandorder.Coolidge won reelectionh handilywith hisantiunio onmessage, andwouldb beselecteda asthevicep presidentialc candidate thef followingyea ar,largelybasedonhisan ntiunionism m.

Antiunio onism was reaching hyst terical levels s in the fall of 1919. Ne ewspapers proclaimed p t that anything g other than the o t open sho op was unA American. The T antiunio on campaign n of big bus siness was bearing b fruit t. C Clergymensu uchasDavid dBurrellofM MarbleColleg giateChurchinNewYork kCityclaime edthattheB Biblenotonly y p provedthecl losedshopto obeunpatrio otic,butalsounchristian.[54] Clergy an nd churches that suppor rted the righ hts of labor soon fell victim to atta acks by the superpatrio s t g groups. The National Welfare W Counc cil, the Fede eration for Social S Servic ce of the Me ethodist Chu urch and the e C Commission on Church and Social Services S wer re singled ou ut for unusu ually harsh treatment by b the super r p patriots.Man nyclergymen nsupportive eoflaborcam metobelabeledasparlorpinks.T Thiswasthe beginningo of t theradicaliza ationofreligiontotheha ardrightview wpoint.Liber ralandmode eratechurchleaderswere epurged. By the en nd of 1919, the Red Scar re was reach hing critical mass. Palme er, ever mor re confident of his future e p politicalachi elievedthatt thebestsolu utionwasdep portationofr radicals.Coll ludingwithc certainLabor evements,be D Departmenta andimmigra ationofficials s,Palmerassuredhimself fofevergrea atersuccess. Palmeris ssuedordersonDecembe er27fortheFBItoarran ngemeetings softhegroup pstheyhadi infiltratedfor t thenightofJ 920.Fieldagentswereto oobtainalln necessarydocumentation nduringthe raidssuchas s anuary2,19 c charters,mee etingminute es,membersh hiplists,and dbooks.Addi itionally,no personarres stedwastob beallowedto o c communicate e with any other o person n unless Palmer, William m Flynn or J. J Edgar Hoo over granted d permission n. P Palmerhada appointedFly ynnasthech hiefoftheBu ureauofInves stigations,th heforerunne eroftheFBI. Theresul ltswerespec ctacular.Ove er4,000susp pectedradica alswerearre estedinthirt tythreeUSc cities.Arrests s w were often made m withou ut warrants. Those arres sted that we ere American n citizens were w turned over o to state e a authoritiesfo orprosecutio onundersyn ndicalismlaw ws.Prisoners sweredenie edlegalcoun nsel,andheld dininhuman n c conditions.B rutalitybyarrestingoffic cersandjaile erswaswide espread. eriaevenrea achedintoth hehallsofCo ongresswhe ere,attheur rgingofPalm mer,seventy seditionbills s Thehyste w were introdu uced. Eventually, cooler r heads pre evailed, and none of th he peacetim me sedition bills passed d. N Nevertheless s,manystatesenactedseditionlawst thatfacilitate edtheprosec cutionoftheIWW.InNew wYorkState e, f fiveSocialist f thestateleg gislaturewer redisbarred. membersof extentofthe hysteriaand dthebrutalit typrevalent canbestbe illustratedb bytheCentra aliaMassacre e Thefulle t thatoccurred dfollowingt thesteelandcoalstrikes.In1919,therewereonl lytwoIWW hallsopenin nthestateo of W Washington, theothersh havingbeens suppressedo orclosedby thepoliceo orlocalmobs s.TheCentra aliaIWWhal ll h hadjustreop penedafterhavingbeenr raidedbyalo ocalmobdur ringaRedCr rossparadet theyearbefore. On Octob ber 20, 1919 9, a group of o local busin ness leaders s formed the e Centralia Protective P Association to o s safeguardthe esmalltown nagainstund desirables.Ru umorsinside etheIWWha allwereram mpantaboutt thehallbeing g a atargetfora raidonArm misticeDay.O OnArmisticeDay,thepar raderouteled ddirectlypa astthehall.T TheWobblies s, s seekingtopr rotectthems selvesfromm mobviolence e,stationeda armedmemb bersinsidet thehall,acro ossthestreet a andonahillt topoverlook kingthestreet.Paradem marchersincl ludedtheloc calpostofth heAmericaL Legionledby y W WarrenGrim mm,theleadi ingfigurein theCentrali iaProtective eAssociation n.Atfirst,ita appearedvio olencewould d b beavertedas sthemarche erspassedth heIWWhall. Butmarchersturnedba acktowardst thehall.Inth heconfusion n, s some Legion n members moved m towa ards the hall. In selfdefense, the Wobblies W ope ened fire hitting severa al legionaries,in ncludingGrimm.Another rwasshotin ntheheadasheburstthr roughthedoor. TheWobbliesrespon nsiblefortheshootingsw werequickly roundedup andplacedi injail, w with the exce eption of We esley Everes st who escap ped towards the Skookumchuck Rive er. He w pursued was d by a posse e that overt took him as he attempt ted to ford the t river. Ev verest r refused to su urrender and d soon empt tied his revo olver, killing another legionnaire. Wi ith no a ammunition, Everestwas ssoonoverp powered,bea atenandhad dhisteethkn nockedoutw witha r riflebuttbefo orebeingtak kentojail. That nigh ht the lights went out in n Centralia. Under U the cover of darkn ness, a mob broke into the jail and seized Everest. E He was taken to t the Cheha alis River. In n route one of his c captorscastr ratedhimin anorgyofbrutality.Afte erreachingth heriver,hew wasdragged dfrom W Wesley Everest t thecarplead dingforthem mobtoshoot thim.Hewa ashungfrom mthebridgew withashort trope. T rope how The wever was too t short, and his captor rs hoisted him m back up, only o to hang g him with a longer rope e. S Somehow,Ev verestremainedalivethr roughthetw woattempted dhangings.H Hewashoiste edbackupasecondtime e, o onlytobefitt tedwithast tilllongerrop pe.Thethird dtime,afters stompingonhisfingersa ashedespera atelyclungto o t thebridge,Ev verestfinally ysuccumbed d. Aftermak kingsurethe eirworkwas sdone,them mobturnedt theirheadlig ghtsonthedanglingbody yandriddled d t corpse with the w bullets. After sever ral days, Eve erest was cu ut down and brought back b to town n only to be e

displayedinthejailasanexampletootherWobblies.Sincenoneofthetownsundertakerswouldcareforthe body,fourofEverestsfellowIWWmemberswereforcedtodighisgraveinpottersfield.Noinquestwasever heldinthedeath,andhisdeathwasruledasuicidebythecoroner.Intheend,eightWobblieswerefoundguilty ofmurderandimprisoned. TheattackontheCentraliaIWWfollowedalongstringofattacksonstrikersandunionsdatingbacktoat leastthepostCivilWarera.Attacksbecamecommonby1914.OnApril20,1914,inanefforttobreakastrike against the Rockefellerowned Colorado Fuel and Iron Company, over 40 striking miners and their families were murdered in Ludlow, Colorado by the Colorado National Guard and Rockefellerhired thugs from the BaldwinFelts detective agency.[55] Another massacre of Wobblies occurred in Everett, Washington on November5,1916.[56] BrutalitysuchastheCentraliamassacrewouldreachepidemicproportionsin1919.Hysteriawaswhipped intofrenzybythemediaandsuperpatriotgroupsliketheAmericanLegion.Superpatriotgroupswouldspring uplikemushroomsafterarain,andwouldcontinuedistributingliteraturethroughthe1920s. No group with liberal tendencies would remain untouched. The Lusk Committee branded The Survey, a national liberal oriented magazine, as having the endorsement of revolutionary groups. Other liberal magazinessuchasThe Nation, New Republic, Dialand Publicwerethesubjectofsimilarattacks.TheACLUwas condemned as a Bolshevik front. The National League of Women Voters was labeled as a tool of radicals. Liberalclergymenwerebrandedasparlorpinks,asweremanyteacherswithliberalleanings. TheinfamousLuskCommitteefollowedontheheelsofthereportfromtheUnitedStatesSenateOverman Committee.TheOvermanCommitteebeganhearingsonFebruary11,thedaytheSeattlegeneralstrikeended. Initsfinalreportspanning1200pages,theOvermanreportshowedlittleevidenceofcommunistpropaganda inthiscountryandevenlessofaneffectofitonAmericanlabor.TheimmediatecausefortheLuskCommittee sprangfromareportleakedtothepublicbyprominentNewYorklawyer,ArchibaldStevenson.Stevensonwas serving in the Military Intelligence division at the time and supplied a list of 62 individuals to the Overman Committee that he had branded as traitors. The report was leaked to the public. Stevensons report on radicalisminNewYorkCityconcludedthatbolshevismwasrampantamongNewYorkworkmen. On March 26 the New York legislature appropriated $30,000 for the Lusk Committee and appointed Stevensonasassistantcounsel.OnJune12theJusticeDepartmentraidedtheRussianSovietBureau.Twotons ofpropagandamaterialwashauledofftotheLuskCommitteeforreview.FollowingtheraidNewYorkState SenatorLuskdeclaredtherewereatleastfiftyradicalpublicationsinthecity.AtthesametimeNewYorkState AttorneyGeneral,CharlesNewton,claimedtheSovietBureauwastheclearinghouseforallradicalactivityin theUnitedStates. OnJune21theLuskCommitteeagainstruckwithraidsontheRandSchoolandthelocalIWWoffice.Again alldocumentswereseized.Despitevigorousdenialsfromthecommittee,littleofvaluewasfound.Therewas noindicationofaradicalrevolution.ThecommitteeclaimedthatdocumentsfromtheRandschoolshowedthat radicalswereincontrolofatleast100tradeunions.Stevensonclaimedthatthedocumentsshowedthatthe RandschoolwaspropagandizingtheNegro. Basedonnothingbutthinair,LuskchargedthattheRandschoolwastheactualheadquartersforBolshevik radicals.Lusktookimmediatestepstoclosetheschool.TherenewaloftheschoolcharterwasheldupuntilJuly 30whentheSupremeCourtJusticeofNewYorkthrewtheentirecaseoutforlackofevidence.[75]

Part 5: Preachers and Klansmen

In 1924, the Hearst papers, the American Legion and the Klan led the charge for the Americanization of schoolbooks,loyaltyoathsforteachersandharsherimmigrationlegislation.Thesethreeorganizationswould becomedeeplytiedtofascisminthefollowingdecade.SeveralmembersoftheAmericanLegionwereinvolved in the fascist plot of 1934 against FDR. The Hearst papers would become an open propaganda outlet for the Nazisandfascism.TheKlanwouldgoontoformanalliancewiththeAmericanBund. W.J. Simmons, a former Methodist circuit rider from Atlanta, established the second Klan in 1915. (The originalKlanhaddiedoutanddisbanded.ThesecondKlanwouldbedisbandedlateron,onlytobereborn.)In the first four years of rebirth, the Klan was relatively small. Not until 1920 did it grow to mammoth proportions. Two factors with roots in the late 1800s set the stage for the rebirth of the Klan. The first was massive immigrationfromEurope.TheAmericanProtectiveAssociation,formedin1887,wasvirulentlyantialien.The groupwasparticularlystrongintheMidwest,wheretheKlanbecamestronginthe1920s.Theotherfactorwas

thepopulistmovementofthe1890swhichsoughttouniteblacksandpoorerwhitesagainstmillownersand theconservativeeliteoftheSouth.[57] The Klan remained relatively small through 1919. It wasnt until Simmons met publicists Edward Young Clarke and Elizabeth Tyler in 1920 that the membership increased, peaking at around 4,500,000. The huge increase in Klan membership was largely a product of the Red Scare. Simmons had a contract with the two, giving them 80% of all membership dues. Clarke and Tyler promoted the Klan as rabidly proAmerica, anti black,antiJewish,antiunionand,mostimportantly,antiCatholic. The race riots in the summer of 1919 also contributed to the rapid growth of the Klan in 1920. In 1919, race riots occurred in Chicago; Washington, DC; Elaine, Arkansas; Charleston, South Carolina; Knoxville and Nashville, Tennessee; Longview, Texas and Omaha, Nebraska. Through the first half of the decade, the Klan wouldbeaseriousforceinbothNorthandSouth. ThemessagefromthenewKlanwasthatitmeantbusiness.ManypeoplebelievetheKlanwasjustabunch of racist, hooded nightriders. The reality is that the Klan has always been closely associated with religion. Besidesblacks,Jewsandimmigrants,theKlanattackedbootleggers,dope,nightclubs,roadhouses,violationsof theSabbath,sexandsocalledscandalousbehavior. Theearly1920ssawarashoflynchings,shootingsandwhippings;victimsmostoftenaBlack,Jew,Catholic orimmigrant.Additionally,womenofscandalousbehavior,asdeterminedbytheKlan,weresubjecttoabuse. In Alabama, a divorcee was flogged for remarrying. In Georgia, the Klan, led by a minister, administered 60 lashes to a woman for the vague charge of immorality and failure to go to church. In Oklahoma, Klansmen whipped girls found riding in automobiles with young men. In the San Joaquin Valley of California, the Klan floggedandtorturedwomenformoralitycharges.[58] In Chicago, Miss Mildred Erick was beaten almost into unconsciousness, and had crosses carved on her arms,legsandbackbyKlansmen.TheKlansmensattackwasprovokedbyherconversiontoCatholicism.[59] In November 1921, a case in Asheville, North Carolina became the focus of the national media. The Reverend Abernathy, of the First Christian Church, sent a letter to city officials calling for a purity campaign and the arrest of two women, Etyln Maurice and Helen Garlington, and two black men, Louis Sisney and Maurice Garlington. The women were charged with prostitution, fornication and adultery. Both women received a sentence of one year in county jail.[59] The campaign was similar to an earlier one in Athens, GeorgialaunchedbytheReverendM.B.MilleroftheFirstChristianChurch.MillerheadedtheKlaninAthens. There are thousands of examples of women receiving much harsher treatment than the Asheville case. What brought Asheville to national attention is that it was the home of William Dudley Pelly and the Silver Shirts. Many of the regions in which the Klan was strong in the 1920s later became centers of profascist groupsinthe1930s.PellywouldlatermovehisSilverShirtorganizationtoIndiana,anareathathadastrong Klaninthe1920s. Withitsantiblack,antiunion,anticommunist,antisocialist,antiJewandextremenationalistagenda,the Klans platform was remarkably like that of the Nazis. By the 1930s the Klan served as a bridge between nativistgroupsandfascists.OnAugust18,1940theKlanformalizedanalliancewiththeAmericanBundatthe NaziencampmentofNordland,atAndover,NewJersey.Beforethis,aNaziagenthadofferedformerKlanGrand Wizard Hiram Evans $75,000 to control the Klans voice. When James Colescott succeeded Evans, the Klan enteredintoitscollaborationwiththeAmericanBund. AfterthealliancewiththeBundwasformed,theKlanembarkedonaplantoinfiltrateunionsinaneffortto Americanizethem.AfterPearlHarbor,theKlanintensifiedtheseefforts,particularlyintheDetroitarea.Once insidetheunions,Klansmenspreadprofascistliterature,andsucceededinprovokingwildcatstrikestohinder thewareffort.Theireffortswentsofarastoorganizeoppositiontopurchasingwarbonds. ProbablytheKlansmostsuccessfulefforttodisruptthewareffortwastheDetroitriot.ThisKlaninspired riot was an attempt to prevent blacks from occupying their new homes in the Sojourner Truth Settlement, a housing project. The riot caused several deaths, and an interruption of war production. Amplifying its effect, theriotwasoftremendouspropagandavaluetoAmericasenemies.GermanyandJapanseizedontheriot,and airedluridbroadcastsofittodemoralizeAmericantroops.[60] OnecannotunderstandtheDetroitriotwithoutlookingattheinfluenceoffascisminthearea.Theriotwas provokedbytheKlanwhichwascloselyassociatedwithfascismandtheBundatthetime.However,therewere many other fascist organizations active at the time within the Detroit are. The Black Legion, the Wolverine RepublicanLeague,FatherCoughlin,andseveralotherfundamentalistministersofhate,aswellbeshownlater

inth hischapter.In nalaterchap pteritwillb beshowntha atMichiganw wasoneofth hehotspotsf forfascisma asseveral ofthestrongests supportersoffascismwit thinthehalls sofCongress scamefromMichigan. D Detroitwasn nottheonly riotinspired dbytheKlan ndesignedto ostopwarproduction.A AnotherKlan ninspired race riotoccurre edonJune15 5,1943inBe eaumont,Tex xas.Amobo ofover4,000 0attackedth heblacksecti ionofthe res and burn ning building gs. Twentyo one people were w killed, and produc ction in the area was city, looting stor wedformonth hs. slow T Todays mod dern, or third d, Klan formed an allianc ce with neo Nazis dome estically, and in England, Sweden, Cana ada and Australia. An Am merican serg geant station ned in Bitbu urg served as a the Klans s recruiting officer o in Germ many.Curren ntly,muchof fthehatean ndproNazil literaturein Germany(w whereitisillegal)comes fromthe Unite edStates.[61 1] K Klaninspired d lynchings and riots were w common n the 1920s s. Over 450 people were e lynched, almost a all black k.[63]Lynchingsbecame esofrequent tthatRepres sentativeL.C. .DyerofMis ssouriintrod ducedabillin n1921to make elynchingafederalcrime.Thebillpa assedtheHou use,butfaile edintheSena ateduetoaf filibusterbysouthern Sena ators.Lynchin ngwasnottheonlymeth hodtheKlan nusedtodisp poseofblack ks.OnDecem mber9,1922 amobin Perry y,Floridabu urntablackm manatthesta akeafterhew wasaccused dofmurder.[64] T Themostnot tedactofKlaninspired violencewasinRosewood,Florida,w whichwasc chronicledin narecent movi ie.InJanuary y1923,thet tinytownofR Rosewoodca ameunderat ttackbyawh hitemob.Th hemobwasincitedby a rep port of a wh hite woman having been n assaulted by b a black man m in the nearby town of Summer. The riot resul ltedinsever ralresidents sofRosewoo odbeingmur rdered,and theblackpo ortionoftow wnbeingbur rnttothe grou und.Theblackresidents,fearingforth heirlives,fle edintothene earbyswamp psandreloca ated.Nochar rgeswere everfiledagainst tthemob,wh hichwasrep portedtohav vehadsevera alKlansmenfromoutside ethearea. A AlthoughRos sewoodisth hemostwide elyknownra aceriotofth he1920s,itw wasnotthe bloodiest.T TheTulsa, Oklahomariotof f1920wasfa armorehorr rific.Amobo ofover10,00 00,somewie eldingmachi ineguns,atta ackedthe black ksectionoft thecity,dest troyingthirty yfivesquare eblocks,andleavingover r300dead.T Themobuse edatleast eight tairplanesto ospyontheb blacksandm mayhaveeve enusedtheplanestobom mbsomearea as.[65] T listing of The o all the rac ce riots and d lynchings of o the 1920s s would fill several volu umes. Many, , such as Rose ewood,were reportedna ationally. The e Nationrepo ortedthatth hestateofFlo oridawasun nconcerneda aboutthe fateo ofNegroes.A Afewnorthe ernnewspapersdecriedt themassacre e,butmosta adoptedamo oreapologeti icviewof theK Klananditsv violence. The e Tampa Tim mesjustifiedi itbyproclaim mingthatbla acksareany ythingbuta Christian and civilized peo ople. The Ga ainesville Sun n went even n further, sta ating that lyn nchings wou uld prevail as a long as minalassaults scontinueon ninnocentw women,andc closedtheed ditorialequa atingthemas ssacrewitht thedeath crim ofad dog. T Today, most peoples image of the Klan K is one of a violent gang g of racist ts clothed in n bed sheets and it is view wedasaparia ahofsomes sort.Evenwi iththerisein nmembersh hipsince198 80,theKlani isstillashad dowofits form merself.How wever,therea allegacyofth heKlanisno otrelatedto hoodednigh htridersorcr rossburning gs,rather, ther reallegacyistheroletheKlanplayedindevelopin ngwhatnowconstitutest thereligious sright. A Asshownab commonplace einthe1920 0sforminist terstoleadt thelocalKav verns.Thesameholds ove,itwasc true today. One such exampl le is the Rev verend J.M. Drummond, D w was the who e keynote sp peaker at a Klan K rally near rEstillSpring gs,TennesseeonJuly7,1 1979.[66]Drummondisa anIdentitym minister,asis sPetePeters s,another ministercloselya associatedw withtheKlan. . T Identity religion teaches that Ar The ryans are the e true Jews of the Bible, , and that Je ews, blacks and a other mino oritiesarech hildrenofSat tan.Amored detailedacco ountingofth heIdentityre eligionandth hereligious rightwill be given g in a la ater chapter r. Two of th he more infl luential deve elopers of the t Identity religion beg gan their ministriesinthe1920s. A Asalreadydi iscussed,the eRedScareo of1919resultedinthep purgingofan nyoneholding even nthemildest tliberalview ws,clergyinc cluded.With fewliberalc clergymenre emaining,the resul ltwasagiga anticchasm intowhicht theKlanand dtheradical rightmoved d,shiftingthe spectrumtothe farright.Theresultcan stillbeseen ntodayinthe elinkagebet tweenracism m religion.Ast tudyconduct tedinthe1960sdetailed dthislinkage e,andwillbepresentedin n andr alate erchapter.Sincethatstu udy,thelinka agehasbecom meevenmor repronounce ed,asseenby y ther riseoftheIde entityreligio oninrecenty years. T Theevolution nofthepres sentreligious srightfrom the1920sK Klancanbest beshownby y thec careersofGe eraldWinrod dandGerald dL.K.Smith. InNovembe er,1925inSa alina,Kansas s, Drs. Gerald Winrod Winr rod establish hed the Defe enders of the e Christian Faith. F The Defenders we ere extremely y
n Rodrguez and Juan

conservative, c , and in Ap pril, 1926 Winrod W bega an publishin ng a monthl ly magazine e, The Defen nder. Winrod d s supportedpr rohibition,an ndwasrabid dlyopposedt tothetheory yofevolution n. Theteach hingofevolu ution,aswellastheScop pestrial,was soneofthos seissuestha atbecomeaw watershedin n s shapinglater revents.Theteachingofe evolutionwo oulddefinew whathasevolvedintothe ereligiousrig ght.Although h t there were fundamental f ists before the t 1920s, the t fundame entalist relig gious movem ment was rev vitalized and d d defined by the t Scopes trial. In fac ct, the term m fundamen ntalist was coined in the 1920s. Many early y f fundamentali ists, such as s John Frank klyn Norris, were openl ly supportiv ve of the Kla an. Norris was w a Baptist p preacherfrom mTexas,and dalsohada parishinDe etroit,flyingb betweenthe etwo.Norris alsoranaseminary,one e n notablegrad uateofwhic chwasJohn Birch.Birch sdeathatth hehandsofC Chinesecom mmunistforcesinthelate e 1 1940sspawn nedtheforma ationoftheJ JohnBirchSo ocietyinthe1950s. In 1926, Winrod led a campaign to ban the teaching t of evolution e loc cally, as well l as in C California an nd Minnesot ta. He appo ointed a committee to examine te extbooks, an nd in M Minnesota h helped William he W Bell Riley draft t the bill which w was in ntroduced in n the M Minnesotale gislature. saforceinth heconservat tivewingof theBaptistC Churchdurin ngthe1920s s.Like Rileywas W Winrod, Riley was rabidly opposed to t the teach hing of evolu ution, and was also extre emely a antiSemitic. TheProtocol lsoftheEldersofZion,andanartic cleon In1934,he publishedT c communism, ywereparto ofaconspira acyatworkin nRoosevelts sNew attemptingtoshowthey W William Bell Riley D Deal.Rileypr reached: Today in n our land many m of the biggest trus sts, banks an nd manufacturing interests are controlled by Jews. Most of our dep partment sto ores they ow wn. The moti ion pictures, , the most vi icious of all immoral, nalandcomm munisticinflu uences,isthe eircreation. [68] education T Theabovequ uote,fromon neofRileys sermons,is indistinguish hablefromH Hitlerspropa aganda.Itis acluethat,i if R Rileywasnot toutrightproNazi,hece ertainlyharboredsympat thyforfascis sm. Rileywas snotthefirstclergymantotouttheP Protocols.On nFebruary12,1919,theReverendGe eorgeSimons s t testified in fr ront of the Senates S Overman Comm mittee, shocki ing listeners s with the ta ale of a secre et worldwide e Jewish consp piracy. Simon ns cited the Protocols as s evidence. It I is generall ly assumed that t Simons obtained his s c copyoftheP ProtocolsfromDr.Harris sHoughtono ofmilitaryin ntelligence.H Houghtonhad dobtainedh hiscopyfrom m t theCzaristim mmigrantBorisBrasol.[17] Withhis congregationof 3500,R Riley exerted dtremendousinfluenceintheupper Midwest.Je ewishleaders s r regardedhis hecenterof theareasan ntiSemitism m.However,R Rileysinflue enceextende edfarbeyond d churchasth h area and his d time. In 19 902, Riley fo ounded North hwestern Bi ible Training g School, wh hich in 1935 5 became the e N Northwester nTheologica alSeminary. Healsoassi istedinthe preparation of The Fund damentals,a statemento of f fundamentali istbelief.Jus stbeforehis death,Riley placedthele eadershipof fNorthweste ernunderthe edirectiono of B BillyGraham m. On March h 2, 2002, the t ghost of fascism cam me home to roost on th he head of Rileys R c chosensucce essor,BillyG Graham.Ont thatday,ana additional500hoursof Nixontapeswere r released. In a a 1972 conv versation bet tween Nixon n and Graham m, the preacher expresse ed his c contemptfor r,ashesawit t,Jewishdom minationofth hemedia.Grahamishear rdontapesa aying: Thisstra angleholdha asgottobebrokenorthis scountryisg goingdownt thedrain. L Laterinthec conversation,Grahamexp pressesfurth heropinionsaboutJews: They sw warm around d me and are e friendly to o me. Becaus se they know w I am friend dly to Billy Graham Israeland dsoforth.ButtheydontknowhowIreallyfeel aboutwhat theyaredoingto thiscoun ntry,andIhav venopowerandnowaytocontrolth hem.[74] In response to t the new revelations, r G Graham apol logized profu fusely, claimi ing a lack of f memory of the incident t. T Thislatestex xampleofBil llyGrahams antiSemitis smshouldco omeasnosurprisetotho osethathave efollowedhis s c career.Graha amscareerh hasbeenmar rkedwithsim milarinciden nts. In the 19 950s, Graham m was embr roiled in an incident rev vealing his antiSemitism a m. The incide ent stemmed d f fromhisport traitgracing thecoverof ftheJanuary y1957issue of The Amer rican Mercury y,andhisfriendshipwith h t Mercurys the sowner,Rus ssellMaguire.Maguireh hadacquired dahugefortu unefromoil landmunitions.Maguire e o ownedtheco ompanythatmadetheTh hompsonsub bmachinegun n,andhadac cquiredtheMercury M in19 952. In1951,Maguiredon nated$75,000toBillyGra ahamtoprod duceafilme extollingthevirtuesoffre eeenterprise e a and the deve elopment of Godgiven natural n reso ources. The film f Graham m produced was w called Oiltown, O USA A.

Graham continued his friendship with Maguire after producing Oiltown, and wrote several articles for the American Mercury. By the time Grahams portrait graced the Mercurys cover, the magazine had earned a reputationasovertlyantiSemiticandhardright.Maguireandthe Mercurywereardentlyanticommunist,and alsocalledfortheabolitionoftheincometax,theUN,NATO,theACLUandZionism.Throughoutthe1950sthe Mercury,undertheguidanceofMaguire,supportedSenatorJosephMcCarthy. Otherwritersforthe MercuryincludedJ.EdgarHoover,RalphdeToledanoandGeorgeLincolnRockwell, founderoftheAmericanNaziParty.MorebackgroundondeToledanoscareerwiththeOSSwillbeinalater chapter. Maguire was an open backer of fascism and fascist organizations, and was an early supporter of Rockwell.RockwelloftencomplainedaboutMaguiresmiserlydonations. By January 1957, the Mercury was at loggerheads with the AntiDefamation League over charges of anti Semitism. Despite their public apologies, the religious right and Billy Graham cannot rid themselves of their pastsupportoffascismandantiSemitismnomorethanaleopardcanchangeitsspots. Conservative theological circles today still regard Riley highly, carefully sweeping his collaboration with Jayhawk Nazis, and his antiSemitism, under the rug. Yet antiSemitism is still present in the Baptist church. Like many right wing groups today, the Baptist church cloaks its antiSemitism behind a thin veil. It comes bubblingtothesurfaceinthepositiontheBaptistchurchhasadoptedinrecentyearsofreachingouttoJewsso theymaybeconvertedtoChristianity.Jewishleadersdescribethisprogramascondescending. WinrodslingeringinfluenceandantiSemitismwerealsoreadilyapparentin1980sKansas.Atthattime, Kansas became a hotbed of support for the Posse Comitatus, a far rightwing, extremely antiSemitic group. DetailsofthePosseComitatus,whichwasfoundedbyaformerSilverShirtleader,willbepresentedinalater chapter. NoristhistheendoftheWinrodcontinuinginfluence.InMarch2001,WinrodssonGordon,now74,was sentencedto30yearsinprisonforkidnappingsixofhisgrandchildren.ThechildrenhadbeenlivinginNorth Dakota,Winrodstwodaughtersassistedintheirkidnappingandwerebroughttotrialseparately.Thechildren havereceivedmentalhealthtreatmentafterbeingreturnedtotheirfathers. The youngerWinrodbeganbuyinglandinOzark County, Missouri inthe1960sandeventuallyopened a church he called Our Savior, in which he preached his hatred of the Jews. Winrods congregation consisted mostlyofhisadultchildrenandafewfollowers.Twoorthreetimesayearhewouldmaileveryresidentofthe county his Winrod Letter, despite numerous complaints. During his trial he repeatedly referred to the proceedingasaJewdiciary.[76] The Posses rise to popularity in the Midwest, and in Kansas in particular, provides another example of how, once an area becomes polluted with hate and fascist leanings, it takes generations to clean up. Indeed, racisminKansascanbetracedbackpriortotheCivilWar.FurtherevidenceofWinrodslingeringinfluenceon Kansasisseeninthe1999attemptbytheKansasBoardofEducationtobantheteachingofevolution. AlthoughWinrodclaimedhewasnotamemberoftheKlan,hedidnothingtoopposethegroup.[69]During the1920sanestimated100,000KansanswereKlanmembers.Inthe1924raceforgovernor,bothDemocratic andRepublicancandidatessoughttheKlanssupport.TherewasasolidbaseofsupportinKansasatthetime forcandidatesthatattackedCatholicsandJews.WinrodwoulddependonthatbaseinhislaterrunforSenator. It wasnt until the 1930s that Winrod adopted fullblown fascism as his ideology. After 1934, Winrod acceptedtheNazisjustificationfortheirantiSemiticpolicies.HisviewwasthattheNaziswereonlyactingto save Germany from Jewish radicalism, economic exploitation and racial lust. In 1935, Winrod called Hitler a devoutCatholic.[69]Eventually,Winrodwasindictedforseditioninthe1940s. Anevenmoredirectlinkbetweenthe1920sandtodaysfarrightgroupscanbeestablishedbytracingthe originoftheIdentityreligion.TheIdentityreligionisbasedonracialhatred,andhasbeenadoptedbymany current far right groups including the Aryan Nations, the Posse Comitatus, various Klan kaverns and the militias. ReubenSawyer,thepastorofPortland,OregonsEastSideChristianChurch,wasthefirsttocombinethe KlanwithIdentityreligion.SawyerwasinstrumentalintheBritishIsraelFederation,andduringthe1920swas apopularspeakerinthePacificNorthwest.ItwasoutoftheBritishIsraelFederationthattheIdentityreligion emerged.SawyerwasaleaderoftheKlaninOregon,andthefounderofitswomensauxiliary.Besidesbeing thefirsttocombinethe Klanandwhatwastobecomethe Identityreligion,Sawyerwasthefirsttocombine antiSemitismwithanticommunism,asthefollowingquoteillustrates: Jews are either Bolshevists, undermining our government, or are shylocks in finance or commerce who gaincontrolandcommandofChristiansasborrowersoremployers.ItisrepugnanttoatrueAmericantobe

bossedbyasheenie.AndinsomepartsofAmericatheKikesaresothickthatawhitemancanhardlyfindroom to walk on the sidewalk. And where they are so thick, it is Bolshevism they are talking. Bolshevism, and revolution.[70] ItwasfromsuchviewsthattheIdentityreligiondeveloped.Amongthosecreditedwithitsfoundingwasa young minister, Gerald Smith. Smith began his ministries in Soldiers Grove, Wisconsin, by revitalizing a Disciples of Christ congregation. In 1923, Smith accepted a pulpit at the Seventh Christian Church in Indianapolis.Hesoonbuiltthecongregationtoover1,000.Atthetime,TheChristianEvangelistnoted,hewasa noted figure among the Hoosier Disciples. As the 1920s progressed, he moved to other pulpits in the Indianapolisarea.In1929heleftIndianafortheKingsRoadChristianChurchinShreveport,Louisiana. WhileattheKingsRoadchurch,heworkedwiththeKlan,notagainstit.Smithsselfpromotionandsocial activism soon alienated many of his wealthy backers. Soon, Smith aligned himself with one of the most notorious fascists of the time, Huey Long. In 1934, he resigned his pulpit at Kings Road to work with Longs SharetheWealthorganization.In1936,SmithendorsedEugeneTalmadge,theracistgovernorofGeorgia,for reelection,andalsoalignedhimselfwithanotherwellknownfascist,FrancisTownsend. In1939,SmithmetMerwinHart,headofUticaMutualLife,andsoonreceivedsupportfromtheNewYork EconomicCouncil.Nodoubt,SmithscampaignagainsttheCIOfiguredprominentlyinthedecisiontosupport him. Living in Michigan at the time, Smith began broadcasting on WJR, a station owned by an enemy of Roosevelt.TherehereceivedfurthersupportfromsuchleadingindustrialistsastheDodgeandOldsbrothers. In 1938, he supported the campaign of Arthur Vandenberg, a Senator with fascist leanings. Smith also cultivatedafriendshipwithHenryFord. In 1942, the FBI received a tip that Winrod helped Smith start The Cross and Flag, a notorious fascist publicationthatcontinuedwellintothe1960s.FollowingWWII,SmithmovedtoCalifornia,andfoundedwhat has become the Identity religion. In the 1960s, Smith moved to Arkansas, and started several grandiose projects, one of which, the Christ of the Ozarks, was completed in 1966. It was soon followed by a Bible museum. SmithslegacyishisfoundingoftheIdentityreligion,areligionbasedsolelyonhate,teachingthatAryans arethetrueJewsoftheBible,andthatJewsandotherminoritiesarechildrenofSatan.TheIdentityreligionhas becamealmostuniversalamongfarrightgroupstoday. Althoughithasbeenoverseventyyears,thelegacyofthe1920sisnotoneofflappersandspeakeasies.Its truelegacyisoneofbrutalrepression.TheleadersofcorporateAmericaweresuccessfulinpurgingsocialists and union organizers through a network of hard right patriotic groups. The seeds of fascism had been successfully sowed in the 1920s, and grew into fullblown fascist groups during the economic turmoil of the 1930s. Beforetheendofthe1920s,theeconomywouldsinkintoadeepdepression;afittingtributetothefailed laissezfaireeconomicpoliciesofthedecadesthreeRepublicanadministrations.Thedecadewouldendmuch thesameasitbegan.Inoneofthemostshamefulactsofalltime,ahatefilledPresidentHooverorderedthe armytoremoveBonusMarchersfromWashington,DC. In May, 1932, WWI veterans came to Washington, DC demanding payment of their deferred bonuses to help them survive the depression. On May 24, General Alfred Smith, chief of G2 (Army Intelligence), and GeneralDouglasMacArthurmettoconsiderimplementingEmergencyPlanWhite,aplandesignedtosuppress domestic unrest. Charged with preparation was General George Van Horn Moseley. Moseley and MacArthur were convinced that the Bonus Marchers had fallen under communist control. Moseley was insistent upon removingthemarchers byforce.LateinJuly,theArmyattackedthemarchersusingteargas,cavalry,sabers andbayonets.TwoofficersinvolvedintheattackswereGeorgePattonandDwightEisenhower.Moseleyheld extremeviewsoneugenicsandimmigration,andfollowinghisretirement,hebecameaproNazifigure.[18] TheNazisplanforworlddominationinvolvedseveralfacets,likeamanyheadedhydra.Inthischapter,the facts of economic sabotage have been clearly established. The cartel agreements went far beyond the establishmentofmonopolies,and,infact,wereamajorpartoftheNaziwarplan,andwerereadilyenteredinto byAmericascorporateleaders. Cartel agreements had two effects on WWII. First, they hindered production of munitions. Second, they shifted the geopolitical balance in South America to the Nazis. American companies were excluded by these agreementsfromexpandingintoSouthAmerica,whileGermanfirmswerefreetodoso.Oncethewarstarted, theseGermanfirmsinSouthAmericawereusedtocircumventtheBritishblockade,prolongingthewar.

NaziinfluenceinSouthAmericacontinuedafterthewar,andthecontinentbecameahavenforNaziwar criminals. Once safely in South America, Nazi war criminals became military advisors, and trained their host countryssecurityforces.Theendresulthasbeenaseriesofcoupsoverthrowingreformistgovernments,and the installation of brutal dictatorships with their accompanying death squads. Elements of Nazi influence in Argentina were apparent as recently as the Falkland Islands War, in which the Argentine air force achieved somesuccess.TheArgentineaircraftindustryisthedirectproductofexNaziengineers. ThefollowingchapterwillexpandonanotherfacetoftheNazibattleplanexposedinthischapter.Withthe possibleexceptionofRussia,theNazisneverinvadedacountrywithoutfirstsendingintheiragentstocreate domesticunrest.TheyfoundfertilegroundintheUnitedStatestodojustthat.

Notes
[1] [2] [3] [4] [5] [6] [7] [8] [9] [10] [11] [12] [13] [14] [15] [16] [17] [18] [19] [20] [21] [22] [23] [24] [25] [26] [27] [28] [29] [30] [31] [32] [33] [34] [35] [36] [37] [38] [39] [40] [41] [42] [43] Sabotage,MichaelSayersAlbertKahn,HarperBrothers,1942,p56. GermanysMasterPlan,JosephBorkin&CharlesWelsh,Duell,Sloan&Pearce,1943,p22. GermanysMasterPlan,p2425. GermanysMasterPlan,p25. GermanysMasterPlan,p16. GermanysMasterPlan,p37. GermanysMasterPlan,p46. GermanysMasterPlan,p54. GermanysMasterPlan,p55. GermanysMasterPlan,p56. GermanysMasterPlan,p5657. GermanysMasterPlan,p58. GermanysMasterPlan,p7577. GermanysMasterPlan,p6769. GermanysMasterPlan,p7172. http://www.redthread.f2s.com/Quotations/Author/AlvinMOwsley.html TheJewishThreat,JosephBendersky,BasicBooks,2000,p63. TheJewishThreat,p202204. GermanysMasterPlan,p9596. TheSecretWarAgainsttheJews,JohnLoftus,MarkAarons,StMartins,1994,p56. TradingwiththeEnemy,CharlesHigham,Barnes&Noble,1983,p167. IBMandtheHolocaust,EdwinBlack,Crown,2001. IBM,p36. GermanysMasterPlan,p8889. GermanysMasterPlan,p90. IBM,p70. GermanysMasterPlan,p8687. GermanysMasterPlan,p113115. GermanysmasterPlan,p206211. GermanysMasterPlan,p265267. TreasonsPeace,HowardAmbruster,BeechhurstPress,1947,p38. TreasonsPeace,p41. TreasonsPeace,p4243. TreasonsPeace,p6061. TreasonsPeace,p93. TreasonsPeace,p132135. TreasonsPeace,p138139. TreasonsPeace,p142. TreasonsPeace,p107. GermanysMasterPlan,p152153. TreasonsPeace,p8991. TreasonsPeace,p272. TreasonsPeace,p272273.

[44] [45] [46] [47] [48] [49] [50] [51] [52] [53] [54] [55] [56] [57] [58] [59] [60] [61] [62] [63] [64] [65] [66] [67] [68] [69] [70] [71] [72] [73] [74] [75] [76] [77] [78] [79] [80] [81] [82] [83] [84] [85] [86] [87] [88] [89] [90] [91]

TreasonsPeace,p322323. IBM,p337339. RedScare,RobertMurray,McGrawHill,1955,p7. RedScare,p9. RedScare,p22. RedScare,p4041. RedScare,p85. RedScare,p63. RedScare,p64. RedScare,p65. RedScare,p165. http://www.hartfordhwp.com/archives/45b/030.html http://www.epls.org/nw/emassacre.htm http://www.unf.edu/dept/equalop/oeop11.htm http://www.unf.edu/dept/equalop/oeop11.htm http://techno.king.net/~nrrdgrrl/klan.html Sabotage,MichaelSayers,AlbertKahn,HarperBrothers,1942,p5051. TheBeastReawakens,MartinLee,Routledge,2000,p334335. http://newdeal.feri.org/nation/na37145p166.htm http://hierographicsonline.org/yourhistoryonline/TheRosewoodMassacreReportI.htm http://www.displaysforschools.com/rosewoodb.html#what http://www.ncsu.edu/park_scholarships/symposium/2000/riot.html Klanwatch,BillStanton,Mentor,1991,p3637. TheOldChristianRight,LeoRibuffo,TempleUniversityPress,1983,p16. http://www.aom.org/articles/israel.htm TheOldChristianRight,p119. ReligionandtheRacistRight,MichaelBarkum,UniversityofNorthCarolinaPress,1997,p25. Whiteout:TheCIA,Drugs,andthePress,AlexanderCockburn,JeffreySt.Clair,Verso,1998,p6768. WallStreetandtheRiseofHitler,AnthonySutton,76Press,1976,p50. TheCongressionalRecord,February9,1917,Vol.54,pp.294748. http://www.washingtonpost.com/wpdyn/articles/A265762002Mar1.html TheRedScare,p94102. http://www.rickross.com/groups/winrod.html ALawuntoItself,NancyLisagor&FrankLipsius,Paragon,1989,p1819. ALawuntoItself,p2627. ALawuntoItself,p28. ALawuntoItself,p3536. ALawuntoItself,p60. ALawuntoItself,p9093. ALawuntoItself,p128129. ALawuntoItself,p137138. ALawuntoItself,p144145. ALawuntoItself,p146151. ALawuntoItself,p156. ALawuntoItself,p199200. ALawuntoItself,p202. ALawuntoItself,p208210. RooseveltandHitler:PreludetoWar,RobertHerzstein,Paragon,1989,p128129.

CHAPTER 4: THE 1930S: NAZIS PARADING ON MAIN STREET

NECANNOTHOPEtogainanunderstandingoffascisminAmericawithoutfirstlookingatitsrootsin the 1930s. For most readers, the 1930s evokes images of the Great Depression and the Dust Bowl, however,thiswrenchingdecadeofworldeconomicturmoilinvolvedfarmoreseriousevents.Fromthe beginningofthedecade,eventswereconspiringtounleashonanunsuspectingworldthehorrorsoftheSecond WorldWarandtheunfathomableinhumanityoftheHolocaust.TheSecondWorldWarwouldgoontoshape thegeopoliticalscenefortheremainderofthecentury.ClaimsarisingfromtheHolocaustwouldstillbefront pageheadlinesastheworldenteredthe21stcentury. The 30s were a decade in which Nazis openly paraded, unopposed, in the streets of America and were supported by many. Many of the details of 1930s fascism are still shrouded in secrecy. Its been over a half centurysincetheendofthewar,yetnewsisstillsurfacingofcorporateAmericasdealingswiththeNazis.Asof yet,noonehasexposed,inacomprehensivemanner,theconnectionsbetweenthe1930sfascistsandtodays Americanrightwing.Manyoftheeventsofthedecadehavebeenquietlysweptundertherug,suchastheplot againstRoosevelt.Thepressdownplayedtheassassinationattemptatthetime,and,eventoday,mostpeople arestillunawareofit. Just as economic hardships in Germany led to the rise of Hitler, many Americans hit by the depression joinedthefascistranks.Likewise,itwasthelonganddeeprecessionofthe1980sthatleadtoareemergenceof fascism,notonlyintheUnitedStates,butworldwide,astheworldtransformedfromtheindustrialagetothe informationage. The 30s saw membership in fascist groups expand, with some groups claiming over a million members. This influence extended to the very end of the twentieth century. Many of todays far right extremist groups were founded by former proNazis, an example being the Posse Comitatus founded by former Silver Shirt leader,HenryLamontBeach.Otherfarrightextremistsgroups,suchastheWorldAntiCommunistLeague,are rifewithformerproNazisandevenNaziwarcriminals.TheRepublicanPartyhasbeeninfestedwithNaziwar criminals. Many of the ethnic heritage groups the Republican Party set up under Nixon are nothing short of havens for former Nazi war criminals. The American Security Council founded in the 1950s was formed by elementsfromthreeproNazigroupsofthe30s,andexertedaseriousinfluenceontheReaganadministration, asdidtheLaRouchefascistgroup.Alaterchapterwillexplorethefascistconnectionsandnatureofthefarright extremistgroupsoftodayinmoredetail. The rhetoric of todays rightwing extremists is telling evidence of their connection to the fascists of the 30s. The current wildeyed claim among many in militia groups about Russian or UN troops massing on the Canadianborderisnothingbutrecycledrhetoricfromthefascistsofthe30s.The1960srightwinggroup,the Minutemen,madeasimilarclaim.TheirversionhadtheRedChinesemassingalongtheMexicanborderforan invasion.This,too,canbetracedbacktothe30s,whenfascistsclaimedJewsweremassingalongtheMexican borderforaninvasion. The previous chapter detailed how the Nazi battle plan created economic sabotage through the use of cartelsandpatentagreements.Thischapterwillbeginfocusingonasecondpartofthatbattleplan.Withthe exception of Russia, Hitler never invaded a country without first unleashing his agents to create domestic unrest.TheUnitedStateswasnoexception.TheNaziswebofintrigueintheUnitedStatesextendedfarbeyond theuseofspiesandnoisystreetagitatorssuchastheSilverShirts.TheNazisfoundwillingaccompanistsinthe media,thehallsofCongress,aswellascorporateboardrooms. Thischapterwillnotbeaboringlistingofthefascistgroupsofthe30s,ifsuchalistcouldeverbecomplete. Fortunately,thefringerighthasalwaysbeenbadlyfragmented;indeed,itwouldbecauseforgreatconcernto seeaconsolidationtodayamongthevariousgroups.However,thefragmentationofthe30swasevengreater thanitistoday.[1]Therewerewellover700differentfascistgroupsduringthe30s.TheAmericanNational Socialist Party, GermanAmerican Bund, Christian Front, the Silver Shirts, America First Committee, the Christian Mobilizer, National Workers League and the Committee of One Million were some of the more prominentfascistgroupsatthetime.Inaddition,manyfactionsoftheMothersMovementwereopenlyfascist. Thischapterwillfocusontheparallelsandcommonelementsofthefascistgroupsofthe30swiththoseof today.Theparallelsarenumerous,asstrikingastheyaredisturbing,andshouldstandasavanguard,warning of the hidden agenda of right wing elements in this country. Among the many common elements between

Part 1: The Plot Against Roosevelt

yesterdaysf y fascistsandt todaysfarri ightgroupsa aretheinten nsehatredof fminorities andunions, isolationism m, d destructive d division, nati ionalism and d religion. Th he Identity religion, r com mmon to so many m of todays far righ ht g groups,willb beshowntoh haveevolved ddirectlyfro omfascistgro oupsofthe3 30s. However r,therealsto oryoffascism mfromthe3 30sand40si isoneoftrai itorsandsed ditionistsesc capingjustice e a afterthewar rsend.Asthe efollowingq quotetakenf fromFactsa andFascism byGeorgeS Seldesshows s: Onlythe elittleseditio onistandtra aitorshaveb beenrounded dupbytheF FBI.TherealNaziFifthC Columnin America remains imm mune. And yet y there is evidence tha at those in both b countri ies who plac ce profits atriotisman nd fascism is based enti irely on prof fits, although h all of its propaganda p s speaks of above pa patriotism mhave con nspired to make m America a part of the e Nazi Big Bu usiness syste em. Thurman n Arnold, assistant districtatto orneyoftheU UnitedStates,hisassista ant,Norman Littell,ands severalcong gressional producedinc controvertibleevidencet thatsomeof fourbiggest tmonopolies sentered investigations,havep etagreemen ntswiththeN Nazicartels anddivided theworldam mongthem. Mostnotoriousofall intosecre was Alco oa, the Mello onDavisDuke monopol ly which is largely resp ponsible for America no ot having sufficient taluminumw withwhichto obuildairpla anesbeforea andafterPea arlHarbor,w whileGerman nyhadan unlimited d supply. Of the Aluminum Corpora ation sabotag ge, and that of other lea ading compa anies, the presssaid dverylittle,butseveralb bookshaven nowbeenwrittenoutoft theofficialre ecord.[2] Itisthisunb bridledcorpo oratismthat istheveryh heartoffasc cism.Notice howthewor rdsof G George Selde es written in n 1943 are still true tod day about th hose that place profits above a p patriotism. T This writer remembers s that it wa as a stated objective of o the first Bush a administratio ontodeterm minewhichc corporations wererespon nsibleforsu upplyingIraq qwith t equipment to produc the ce chemical and biologic cal weapons, and to brin ng them to ju ustice. G George Seldes T Tenyearsaft tertheGulfW War,notasinglecorpora ationhasbee encharged,a andthemediahas q quietlyswept tthatpledge eundertheru ug.AsSeldes sstated,they yareimmune e. MoreodiousisthatD DickCheney,Secretaryof fDefenseint thefirstBush hadministra ationandthe ecurrentVice e P President,so oldIraqdual useequipmentduringh histenureas CEOofHalli iburton.Such hequipment tcanbeused d t torebuildIra aqsweapon nsofmassde estruction.A AsSecretary ofDefense,C Cheneyawar rdedseveral lcontractsto o H Halliburtons s subsidiary, Brown and d Root Servic ces, for repo orts as to ho ow private companies c co ould provide e logistical sup pport to troo ops in poten ntial war zon nes. From 19 992 to 1999 9, with Chene ey at Hallibu urtons helm m, B BrownandR Rootwasawardedatota alof$1.2bill lionindefen nsecontracts.Hereagainweseeare evolvingdoor b betweencorp porateAmer ricaandgove ernment;ad doorleading onlytoservi itude.Noton nementiono ofthesedeals s w wasmadein thepressdu uringthe200 00electioncampaign.No orwasthefai iluretoprosecutethecompaniestha at s supplied Iraq q with the weapons of f mass destr ruction ever r mentioned. . While the press viciou usly accused d P PresidentCli gafterUNin nspectorswereforcedto leaveIraq,t theymaden nomentiono of ntonofwaggingthedog C Cheneysellin ngdualuseequipmenttoIraq. Herewe havethehea artoftheproblemofthe enextcentur ry:corporate epower.Cor rporationsh haveacquired d t toomuchpow wer.Theyha avebecomes sopowerfult theycanopenlyflauntou urlaborlaws s,ourenviron nmentallaws s a andevensell lmaterialsfo orweaponso ofmassdestr ructionwitho outfear.The eproblemha asbecomeso owidespread d, a andcorporat tionshavebe ecomesopow werful,thats societynow servesthecorporations ratherthan corporations s s servingsocie ety. Thereisa asolution,ho owever.Seethelastchap pterandthep proposedam mendmentto otheConstitu utionlimiting g t therightsof corporations s.Inshort,asweprogres ssintothenewcentury, therightwingissuesat theforefron nt o todays po of olitical scene e are nothin ng more tha an recycled profascist p is ssues of the e 30s. It is an a agenda o of c corporate ru ule. The GAT TS treaty, cu urrently bein ng negotiate ed, and the nowdead MultiLateral M l Investmen nt A Agreementar renothingm morethanatt temptstogoglobalwithf fascistcorporatism. Due to th he depths of f the depress sion, the ear rly 1930s we ere rife with h grandiose plots. p In the fall of 1933 3, A Americansle earnedofasensationalp plotbyGener ralArtSmith handhisKha akiShirts.Sm mith,asoldie eroffortune e, h hadformeda atightknitb bandofarou undthirtyto onehundre edfollowers. Smithwasa araginganti iSemiticand d t Khaki Sh the hirts had killed a heckler r in New Yor rk City in Ju uly. As his re eputation gre ew, so did his h ambitions s. S Smithsidolw wasMussolin niandheboa astedthatam millionmenw wouldfollow whimandtheywouldkilleverydamn n Jew in the United States. . He announced he woul ld march on Washington n and seize the t governm ment much as s M Mussolini had done in Italy. Unfortun nately, Smith h was arrest ted in Philad delphia on October 12 on n a tip police e r receivedabou utanarmscache.[113]

T Thereisnob betterplacet tobeginstud dyingthefas scismofthe1 1930sthant tostartwith theoneelem mentthat was common to all of these e fascist grou ups and at the t heart of their ideolo ogy. Fortunat tely such an n element tsitwassim mplythevis sceralhatred dofRooseveltandlibera alismbythe nativefascis st.Itwouldt takeuntil exist the 1990s 1 before e we would see such a vicious v level of hate disp played in ma ainstream po olitics again, with the Repu ublican attac ck on Preside ent Clinton. Both events s will show how h far righ ht wing extre emists will go g to gain powe erandsubve ertdemocrac cy. T Thereisno b betterevent ththanthe coup c dtat againstRoos a sevelt finance edby Irne e duPont to beginwit along gwiththeM Morgansand afewother wealthyindu ustrialistsof fthetime.Ot thersinvolve edwiththep plotwere Robe ertClark,hei irtotheSing gerSewingm machinecorp poration,Gra aysonMurph hy,Director ofGoodyear r,andthe Pew family of Su un Oil fame. During the war w all three of these co orporations were involved in aiding the Nazi ire. Singers plant, locate ed on the ea ast side of the Elba, was s used to manufacture m m machine gun ns. Today empi Singe erhasgivenupthesewin ngmachineb businessandisnowenga agedindefen nsecontractin ng. C Centraltothe eplotweret twogroups,t theAmerican nLegionand dtheLiberty yLeague.The ereadershou uldrecall that theAmerica anLegionwa asformedandfinancedbytheMorgan nsandMurp phyin1919t tobeusedpr rimaryto ankingofficialsfromthe eAmericanL Legionwere associatedw withtheplot t:William breakstrikes.Severalhighra le, a former state comma ander of the American Legion, L and Gerald G MacGuire, a forme er command der of the Doyl Conn necticutAme ericanLegion n. Irne was the t power be ehind the du u Pont thron ne and at the time held a controllin ng interest in n General ors. He was an avid fasc cist and supporter of Hi itler, trackin ng Hitlers ca areer closely y from the 1920s. On Moto September 7,1926,duPont gave aspee echbeforeth heAmerican ChemicalSo ociety,in wh hichhe advoc catedthe tion of a ra ace of super rmen. Injecting special drugs into them during g childhood would crea ate these creat supe ermen.Notev verychildw wouldreceive esuchinjecti ions,duPont tinsistedtha atonlythose eofpurebloo odwould getth heinjections s.[96] T Throughoutt the1930s,th heduPonts investedhea avilyinHitle ersGermany ythroughthe eircorporate eempire. Gene eral Motors, under the control c of the e du Pont fa amily, had in nvested thirt ty million do ollars into I.G G. Farben alone e.WendelSw wint,duPont tsforeignre elationsdire ector,knewth hatI.G.andK Krupphadar rrangedtoco ontribute oneh halfofaperc centofitspa ayrolltotheN Naziparty.Swinttestified dbeforethe1934Muniti ionsHearing gsthatdu Pont twasfullyaw warethatit wasfinancin ngtheNazis throughthe eOpaldivisio onofGenera alMotors.Ev venmore tellin ngistheamo ountoffinancialbackingtheduPonts sprovidedp proHitlergro oupsintheU UnitedStates s.Starting in19 933duPontprovidedfinancingforth heAmericanLibertyLobb by;ClarksCr rusaders,wh hoclaimed1,200,000, mem mbers;andth heLibertyLeague.[3] In 1934 Irn ne du Pont and a William Knudsen, th he president t of General Motors, M alon ng with frien nds of the ganBankandothers,set tintomotion naplottoov verthrowFDR.Theyprov videdthreem millioninfundingfor Morg anar rmyofterror riststhatwa asmodeleda aftertheFren nchfascistgr roup, Croix de d Feu.[4]The eobjectiveo oftheplot was to either fo orce Roosev velt to take orders from m this group p of industr rialists as pa art of a fasc cist style ernmentorto oexecutehim mifhechosenottocoope erate. gove T Theplotters selectedGen neralSmedle eyButler,aW WWIhero,to oheadthepl lot.Butlerwa as overtly opposed to fascism and a had spok ken out denouncing Mus ssolini as a murderer m an nd thug g in 1931. The T Italian government t demanded d an apolog gy and Pres sident Hoove er comp plied,alongw withplacing gButlerunde erarrestfor courtmartialproceedin ngs.Roosevelt, then governor of New York, spoke out against a the charges c agai inst Butler. Roosevelt R ha ad n responsible e for awarding Butlers Second Med dal of Honor for his ser rvice in Haiti. been PresidentHooverthenbacke eddownand dButlerrece eivedamild reprimandf forrefusingt to acthiswords s. retra Genera al Smedley T plotters had selected The d Butler bec cause of his immense po opularity am mong veteran ns. Darling gton Butler Butle er had spoke en words of encouragem ment to the Bonus B March hers and was s relentless in hisp pursuitforbe ettertreatme entofAmeri icanveterans.GeraldMa acGuireandB BillDoylefir rstapproache edButler athishome.Both hwerewoun ndedveteran nsofWWI.B Bothplayed onButlers sympathyfo orveterans.H However, erwasnotan neasymant tofool.Afterpleasantries swereexchanged,ashort tdiscussionofeachmansservice Butle inW WWIfollowed dbeforeMacG Guireworked dupthenerv vetopresent thisplantoB Butler. A Accordingto MacGuireth heywantedB Butlertoatt tendanAmericanLegion nconventionandgiveas speechin favor rofthegold dstandard.B Butlerimmed diatelyasked dwhatabout tthebonusf fortheveterans.Thebes stanswer MacG Guirecouldp producewas stheywantedthevetera anstobepaid dingoldand dnotrubbermoney.Bu utlerwas suspiciousboth h MacGuire and Doyle were w dresse ed in fancy tailored suits and they had pulled into his

drivewaywithachauffeuredlimousine.Withhissuspicionsaroused.Butlerrefusedtogivethemanaffirmative replybutheleftthedooropenacracktolearnmore. Unbeknownst to the plotters, however, Butler was a man of honor and believed in the Constitution and democracy.Hehadareputationofabsolutehonestyandwascarefulinhowhisnamewasusedandbywhomit was used. Stringing MacGuire along, several more meetings transpired between Butler and MacGuire before thelatterleftforEurope. MacGuirewasabondsalesmanforClarkandhadbeensenttoEuropetostudyhowthefascistsinEurope usedtheveterans.UponhisreturnfromEurope,MacGuireonceagainsoughtoutButler.Additionalmeetings followed, one in which MacGuire laid out 18 thousand dollar bills to prove that he had enough funding for Butler to attend an American Legion Convention with 200 hundred or so of his friends. Butler refused to attend;againhewassupposedtogiveaspeechinfavorofthegoldstandard.InonemeetingMacGuireimplied theyhadinsidemenwithintheRooseveltAdministrationthatkeptthemfullyinformed.Butlerdidobservethat the events MacGuire had predicted came true in several cases. In one case, it was the dismissal of an administrationpersonandinanothertheLegionpassingaresolutioninfavorofthegoldstandard. In another meeting MacGuire threatened Butler that if he didnt accept leadership of the plot that MacArthurwouldreplacehim.MacGuireclaimedthattheMorgansfavoredMacArthurandthathehadheldout forButler.AnothernamementionedincaseButlerrefusedtoheadtheplotwasformerAmericanLegionhead HanfordMacNiderofIowa.MacArthurwaswidelyunpopularwiththeveteransforleadingthechargeagainst theBonusMarchers.MacNiderwasalsounpopularwiththeveterans,asheopposedtheearlypaymentofthe bonus. MacGuire noted this and informed Butler that MacNider would soon switch his view on the bonus. WithinaweekButlernotedMacNidersswitch. There were other meetings with Butler, who eventually demanded to meet with the leaders of the plot. ClarkthenmetwithButlerofferinghimabribetoreadaspeech(onceagainfavoringthegoldstandard)before theAmericanLegionwrittenbyJohnW.Davis,aformerDemocraticpresidentialcandidateandchiefcounselto J.P.Morgan.Butlerbristledatbeingofferedabribe.Clarkbackedoff,andannouncedthathewaswithdrawing his own support from the effort. In response, the plotters brought in Frank N. Belgrano, Jr., a senior vice presidentofthebankthathandledMussolinisbusinessaccounts,toheadtheAmericanLegion. Eventually MacGuire had to confess to Butler that the plot involved replacing Roosevelt. MacGuire suggestedthatRooseveltwastiredandneededanassistanttorunthecountrywhileheattendedtoceremonial activities,muchliketheKingofItalyhadrelinquishedpowertoMussolini.Butlerbristledattheidea. In July, the MorganMellon controlled press, including Henry Luces Fortune magazine, unleashed a propagandablitzextollingthevirtuesoffascism.InAugusttheAmericanLibertyLeagueappeared.Butlerhad beeninformedoftheappearanceofthisgroupaspartoftheplotbeforehand. MorganandduPontcronies,includingJohnJ.Raskob,fundedtheLeague.IncludedintheLeaguesadvisory councilwereDr.SamuelHardinChurch,whorantheCarnegieInstituteinPittsburgh;W.R.PerkinsofNational CityBank;AlfredSloan,CEOofGM;formerNewYorkSupremeCourtJusticeJosephM.Proskauer,thegeneral counseltotheConsolidatedGasCompany;andJ.HowardPewofSunOilandthefinancieroftheopenlyfascist Sentinels of the Republic. Others included David Reed, the Republican Senator from Pennsylvania who remarkedontheflooroftheSenateinMay1932:Idonotoftenenvyothercountriesandtheirgovernments, butIsaythatifthiscountryeverneededaMussolini,itneedsonenow. FearingtheplotwasabouttoclimaxwiththeappearanceoftheLibertyLeague,Butlerwantedtogopublic withwhatheknew.However,heknewhewouldberidiculedwithoutsomeoneelsetocorroboratehisstory. Seeking out help from a newspaper reporter that he trusted as being forthright, Butler had Paul French interview MacGuire. In the interview with French, MacGuire confirmed what he had told Butler and also confirmedhisebullienceforfascismasfollows: Weneedafascistgovernmentinthiscountrytosavethenationfromthecommunistswhowantto tearitdownandwreckallthatwehavebuiltinAmerica.Theonlymenwhohavethepatriotismtodoit arethesoldiers,andSmedleyButleristheidealleader.Hecouldorganizeamillionmenovernight.[75] OnceFrenchhadconfirmedtheplot,ButlerinformedtheRooseveltadministration.Rooseveltrealizedthat withthebackingofsuchaplotfromsuchhighsources,itcouldntbedismissedasacrackpotscheme.Yet,he alsowaswellawarethatbyarrestingtheleadersofsuchindustrialpowerhousesoftheday,hecouldcreatea nationalcrisisthatwouldabortthefledgingeconomicrecoveryandperhapstriggeranotherWallStreetcrash.

To foil the plot, FDR had news of the plot leaked to the press and formed a special House committee to investigatethe matter.TheMcCormickDicksteinCommittee agreedtohearButlersstoryinasecretsession meeting in New York City on November 20, 1934. Over four days the committee heard Butler and French presenttheplot,followedbythetestimonyofMacGuire.Although,ButlerfailedtotestifythatMacGuireoffered him$750foreachspeechhedeliveredifheincludedaremarkfavorabletothegoldstandard,asecretreport reachedtheWhiteHousefromValOFarrell,aformerNewYorkCitydetective,confirmingit. BothMcCormickandDicksteindescribedMacGuirestestimonyashanginghimself.MacGuirewascaught lyingseveraltimes.ThecommitteedeterminedthatMacGuiredidhaveinhispossessionthethousanddollar billsmentionedandwasintheproperlocationafterheclaimedhewaselsewhere.GeorgeSeldesnotedthatall of the principals in the case were American Legion Officials and conservative financial backers. Other administrationofficialsurgedthecommitteetogettothebottomofthecase.McCormickindicatedthatButlers testimony was not the first evidence of the plot and that the committee had been in possession of other evidenceforfiveweeks. Withmanyofthecountrysleadingpapersopenlyprofascist,coverageoftheplotwaspromptlyburiedor dismissedasravingsofamadman.OnNovember22,theAssociatedPressstruckalowblowatButlerinthe headline:CocktailPutschMayorSays.[108]MayorLaGuardiahadcomeoutagainstButler. Butlerhowever,receivedfreshsupportfromJamesVanZandt,whorevealedtothepressthathealsohad beenapproachedbytheplotters.VanZandtwastheheadoftheVFW.VanZandtclaimedthatbesideshimself, MacArthur,TheodoreRoosevelt,Jr.andMacNiderhadallbeensoundedout.AfterannouncingthatClarkwould be subpoenaed to appear before the committee as soon as he returned from Europe, the committee quickly adjourned without calling additional witnesses. Not a single name mentioned in all of the testimony ever appearedbeforethecommittee.WriterJohnSpivaklearnedthatFrankBelgranohadbeencalledtotestify,but hadreturnedhomeafterneverbeingcalledbythecommittee. The committee lived until formally dissolved on January 3. No other witnesses ever appeared before the committee.Whenoneisrichenough,oneisimmunefromthelawsregardlessofhowdamningtheevidenceis. OnFebruary15thecommitteereleaseditspreliminaryfindings. Inthelastfewweeksofthecommitteesofficiallifeitreceivedevidenceshowingthatcertainpersons hadmadeanattempttoestablishafascistorganizationinthiscountry.Noevidencewaspresentedand this committee had none to show a connection between this effort and any fascist activity of any Europeancountry.Thereisnoquestionthattheseattemptswerediscussed,wereplanned,andmight havebeenplacedinexecutionwhenandifthefinancialbackersdeemeditexpedient.Thiscommittee receivedevidencefromMajorGeneralSmedleyD.Butler(retired),twicedecoratedbytheCongressof theUnitedStates.HetestifiedbeforethecommitteeastoconversationswithoneGeraldC.MacGuirein which the latter is alleged to have suggested the formation of a fascist army under the leadership of GeneralButler.MacGuiredeniedtheseallegationsunderoath,butyourcommitteewasabletoverifyall thepertinentstatementsmadebyGeneralButler,withtheexceptionofthedirectstatementsuggesting thecreationoftheorganization. This,however,wascorroboratedinthecorrespondenceofMacGuirewithhisprincipal,RobertSterling Clark, of New York City, while MacGuire was abroad studying the various forms of veterans organizationsofFascistcharacter.Thiscommitteeassertsthatanyeffortsbasedonlinesassuggested intheforegoingandleadingofftotheextremeright,arejustasbadaseffortswhichwouldleadtothe extreme left. Armed forces for the purpose of establishing a dictatorship by means of Fascism or a dictatorship through the instrumentality of the proletariat, or a dictatorship predicated on racial and religioushatreds,havenoplaceinthiscountry.[109] ThetotalvindicationofButlerwasmuffledbythepress. The New York Timesfailedtoreportthecommittees findings on the plot. Instead it chose to report on the committees recommendation of registering all foreign propagandists.Burieddeeplyinthepagesthe TimesbrieflyacknowledgedthatButlersstoryhadbeenproven tobetrue.Muchthesameheldtruefortherestofthenationsnewspapers.Thestorywouldbekilledbynot reportingit.JohnSpivakhadbeentippedoffthatthecommitteefindingswerecensored.AveteranWashington correspondenthadtoldSpivakthatthedecisionhadbeenmadebyaCabinetmember.Theimplicationwasthat thereleaseofcertainnameswouldembarrasstheDemocraticParty.AtleasttwoprominentDemocratswho hadbeenpresidentialcandidateshadbeeninvolved:JohnDavis,whonowwasalawyerfortheMorgans,andAl Smith,nowacronyoftheduPonts.Aboutaweekafterreceivingthetip,Spivakaccidentallystumbledacross

theuncensoredreport.Spivakcopiedtheuncensoredversionandthencomparedittotheofficialversion.The censored portions of the testimony given by Butler and French can be found in The Plot to Seize the White House.[107] Evenmorecuriousisthefactnotasinglepersoneverfacedcharges.SpivakwenttotheJusticedepartment andwasinformedthattheJusticeDepartmenthadnoplanstoprosecute.TheAmericanCivilLibertiesUnion issuedanangrystatementonthelackofjusticestemmingfromthecommitteesfindings. The Congressional Committee investigating unAmerican activities has just reported that the Fascist plottoseizethegovernmentwasproved;yetnotasingleparticipantwillbeprosecutedunderthe perfectly plain language of the federal conspiracy act making this a high crime. Imagine the action if suchaplotwerediscoveredamongCommunists!Whichis,ofcourse,onlytoemphasizethenatureof ourgovernmentasrepresentativeoftheinterestsofthecontrollersofproperty.Violence,eventothe seizure of government, is excusable on the part of those whose lofty motive is to preserve the profit system.[110] Obviously powerful forces had been brought to bear on the committee, forces more powerful than the governmentthatareimmunefromthecountryslaws.PerhapsSpivakbestexplainswhytheplotfailed: The takeover plot failed because though those involved had astonishing talents for making breathtaking millions of dollars, they lacked an elementary understanding of people and the moral forcesthatactivatethem.Inamoneystandardcivilizationsuchasours,theuniversalregardforanyone whoisrichtendstopersuadesome millionaires thattheyareknowledgeablein fieldsotherthanthe making of money. The conspirators went about the plot as if they were hiring an office manager; all theyneededwastosendamessengertothemantheyhadselected.[111] However,fouryearsaftertheformationofaCongressionalcommittee,thecommitteereleasedawhitepaper concluding that certain persons had attempted to establish a fascist government. Further investigations disclosedthatovera millionpeople hadcontractedtojointheterroristarmyandthatRemington,aduPont subsidiary,wouldsupplythearmsandmunitions.[5] As the du Ponts saw their plot crashing in around them, they chose to work within the system to gain power,justasHitlerdidafterthefailedBeerHallPutsch.Inthe1936presidentialracetheduPontsandthe AmericanLibertyLeaguebackedAlfLandon.ThefascistgroupsinitiallyhadagreedtobackFatherCoughlins thirdpartycandidate,Bleakley.AfteragreeingtobackBleakley,FritzKuhn,theleaderoftheAmericanBund visitedNaziGermanyaheadoftheelectionandconferredwiththeleadersoftheNaziparty.Attheurgingof HitlershenchmenhereturnedbackingLandonandurgingotherfasciststodothesame.

Part 2: Republicans, Nazis and Elections

Withitsprobusinessagenda,andthefascistviewsoftheleadersofcorporateAmerica,theRepublicanParty soonbecameladenwithfascists. Even before Hitler and the Nazis seized power in Germany, the Nazis were already actively involved in Americanpoliticsandelections.Shockingly,theNazisdidnothavetoinfiltratetheparty;manywereemployed athighlevelsinthenationalorstateRepublicanPartyorganizations. InOctober1928,EdmondFurholzer,aproNazipublisherfromGermantown,NewYorkpresentedtheNew YorkStateRepublicanCommitteewithanofferthatfortwentythousanddollarshewoulddelivertheGerman votetoHoover.WithHooverschanceslookinggood,anditbeinglateinthecampaign,Furholzersofferwas turneddown. Furholzer was hardly an obscure Nazi, and was a leading figure in the hard right of Yorkville (a heavily GermanneighborhoodofManhattan).TheRepublicanStateCommitteeadoptedmanyofFurholzersproposals in1928,andfouryearslater,whenHooverschancesweredismal,Furholzershelpwasgladlyaccepted.Infact, duringthe1932campaign,FurholzerworkedendlesslyfortheRepublicanNationalCommittee,campaigning tirelesslyforHooverinNewYorkState.HesmearedRooseveltasthenewWilson,themanthathaddestroyed Germany.[92]In1933,FurholzerreturnedtoGermany. By 1934, the Nazis had only been in power for less than a year, but already were active in placing their agents or proNazis into positions of power. On February 22, 1934, the Republican Party merged their SenatorialandCongressionalCampaignCommitteesintoasingleorganizationindependentoftheRepublican NationalCommittee.

SenatorDanielHastingsofDelawareandRepresentativeChesterBoltonannouncedthemerger.Justbefore themerger,thetwocampaigncommitteeshiredSidneyBrooks,thelongtimeheadofresearchatInternational TelephoneandTelegraph(ITT).ThereadershouldnotethatITTwasoneofmanyAmericancorporationsthat wenttoextraordinarymeanstocontinuetradingwiththeNazisafterwarbrokeout. Shortly after Brooks took charge, he made a frantic visit to New York. On March 4, 1934,hewenttoRoom830oftheHotelEdison,aroomrentedtoaMr.WilliamGoodalesof Los Angles. Goodales was in fact William Dudley Pelly. The meeting concluded with an agreementtomergetheOrderof76withtheSilverShirts.LaterBrookswouldstopat17 BatteryPlace,theaddressoftheGermanConsulateGeneral. Brooks was a member of the Order of 76, a profascist group. The Order of 76 applicationrequiredthefingerprintsoftheproposedmember,andcertaindetailsoftheir life.BrooksapplicationrevealedthathewasthesonofNaziagentColonelEdwinEmerson and that he chose to use his mothers maiden name to conceal his fathers identity.[80] EmersonwasamajorfinancialbackerofFurholzerandhispaper. William Dudley Pelley Thus, as early as 1934, the Republican Party was collaborating with Nazis and pro fascist groups at a high level. This would not be the last example of collaboration between high level RepublicansandNazis,asthefollowingheadlinesmakeclear.OnOctober22,1936, The New York Postbroke thefollowingstory: NaziPublicistonGOPPayroll TowinvotesforLandonandBleakley,theRepublicanStateCommitteeisemployingonitspayrolla staffofpropagandistsidentifiedwithlocalNaziorganizations,thePostlearnedtoday.[78] OnOctober30,1936,TheNewYorkWorldTelegramrevealedadditionaldetails. USNaziAttackonJewsIsLaidtoRepublicans AntiSemiticRadioSpeechesbyGriebl,OthersSponsoredbyGOP FritzKuhnamongSpeakersinRegularBroadcastsoverWWRL TheRepublicanPartyhadbeensponsoringradiobroadcastsbyAmericanNazistowinGermanvotes, itwasdisclosedtoday.OneoftherecentspeakerswasDr.IgnatzT.GrieblanationalNazileaderand pronouncedantiSemitic.[79] ThehiringofBrooksin1934toheadupthejointelectioncampaigncommitteeandtheheadlinesfrom1936 setupapatternofcollaborationbetweenelementsoftheRepublicanPartyandtheNazis.Whiletheuseofa falsenamebyBrooksprovidessomemeansofdeniability,hisprofascistviewswerehardlyasecret.However, theearlierinvolvementoftheRepublicanStatePartywithFurholzerwouldrenderanydeniabilitymoot.There isnodeniabilityforthe1936headlines,asallwerewellknownNazis. The more damaging second quote provides proof that the Republican Party leadership was willing to promote Nazi racism. In fact, an integral part of the Nazi battle plan was the promoting of racial riots or divisionwithintheUnitedStatestoweakenorpreventtheUSfromenteringthewar.Suchcollaborationwith theNaziswastantamounttotreason.HitlerandhisagentsintheUnitedStatesmusthavebeenverypleased thatleadersoftheRepublicanPartywerewillingtopromoteandincitecivilunrest. ThisexampleofviciousantiSemiticcampaignsbyRepublicanleaderswasnotanisolatedincident,rather it was commonplace. In the 1938 Minnesota governors race, leading officials of the Republican Party conductedanotherviciousantiSemiticcampaign,thisonetodefeatFarmerLaborGovernorElmerBenson. Bensons inaugural address on January 5, 1937 placed him on the left end of the New Deal. FDR had endorsedBensonin1936.TheRepublicanPartyconsidereditadeclarationofwar.AmongtheissuesBenson supportedwere: Atwoyearextensiononthemortgagemoratoriumforfarmers. Atechnicalassistanceprogramtoassistandpromotecooperatives. Unionwagesforstateemployees. Thecreationofastatecommissiononyouth. Freetransportationforruralhighschoolstudents. Repealofthecriminalsyndicalismlaws.(RemembertheWobblies?) Creationofastatehousingagency. Thedevelopmentofastateownedcementplant.

 Increasedbenefitsforthedisabled,peopleonrelief,andtheaged. Aconstitutionalamendmentenablingthestatetoproduceandsellelectricalpowertomunicipalities. Astateliquordispensary. Newprovisionsinthestatesunemploymentbenefitsincludingbenefitsforstrikingworkers.[85] FewofBensonsproposalsbecamelawashisprogramwaseffectivelyblockedintheStateSenate.Centralto Bensonsprogramswasarestructuringofthetaxcode,whichpassedtheStateHouseofRepresentativesintact. Someoftheprovisionswere: 1. Completeremovalofthestatetaxlevyofhomesandhomesteadsuptothevalueof$4,000. 2. Taxingofthenetincomeofindividualsandcorporationsonagraduatedbasissothatalargeshareoflocal schooltaxeswouldbereplacedbystateincometaxrevenues. 3. Increasedtaxesonaccumulatedwealth,includingminingcompanies,sothatthestatebudgetcouldbe balanced. 4. Increasedtaxesonchainstores.[85] TheconservativesintheSenateignoredthehousetaxbilluntilafewdaysbeforethelegislativesessionclosed, resultinginaspecialsession.The Twin City PressranarticleafterarticledenouncingtheFarmerLaborParty whilecitingsuchbusinessleadersasCharlesFowlerofNorthernStatesPower,Mr.Montaguerepresentingthe SteelTrust,AleckJanesofGreatNorthernRailroad,andAaronYoungquistofMinnesotaPowerandLight.With thepressatthebeckandcallofbusinessleadersclamoringthattheFarmerLaborPartywasdrivingbusiness out of the state, Bensons tax proposals failed to pass the Senate, but the stage was set for a bitter election campaignthefollowingyear. In1938,theRepublicanParty,withHaroldStassenheadingthestateticket,rantwocampaigns.One,ahigh road campaign by Stassen; the other a dirty campaign headed by the old guard within the Republican Party. LedbyRayP.Chase,thissecondcampaignsetnewlows.Chasesvehicleforrunningthissecondcampaignwas the Ray P. Chase Research Bureau. Financing his efforts were some of Minnesotas business elite: George Gillette, President of Minneapolis Moline; J.C. Hormel, the meat packer; James Ford Bell, Northwestern Bank; ColonelRobertMcCormick,ownerofTheChicagoTribune;andGeorgeBeldenoftheCitizensAlliance. Toaccomplishhisgoal,Chaseusedbothlegalandillegalmethods.FileswerestolenfromtheStateRelief Department.FarmerLabormemberswerescannedforcommunistactivity.DeanEdwardNicholsonsupplied dataaboutleftwingstudentorganizationsontheUniversityofMinnesotacampus.Oneofthestudentslabeled a dangerous radical was Eric Sevareid. Chase produced and distributed the red baiting pamphlet, Are They CommunistsorCatspaws.Afterthepamphletsintroduction,ChaselaunchedintoaviciousantiSemiticattack, equatingJudaismwithcommunism,andGovernorBensonsroleinit. ChasesattackdidnotstopinsideMinnesota.UsingtheservicesofCyrusMcCormick,Chasemanagedtoget US Congressman Martin Dies to hold hearings in late October on communist influence in the FarmerLabor Party.[85] To understand how the Republican Party could run election campaigns based on an intense and vicious racistplatformoneneedstounderstandtheattitudeofthecountrytowardsJewsatthetime.Afewdaysafter Kristallnacht,Rooseveltspokeoutpubliclyexpressinghisangerandhorror.AGalluppollthatmonthrevealed that94%ofthepeopledisapprovedoftheNazitreatmentofJews,but97%ofthepeoplealsodisapprovedof thewayNazistreatedCatholics.ARoperpollthatsamemonthrevealedthedeepantiSemiticviewsinAmerica. Thepollfoundthatonly39%ofthepeoplebelievedthatJewsshouldbetreatedaseveryoneelse,53%believed thatJewsweredifferentandshouldberestricted,and10%believedJewsshouldbedeported.Inthewinterof 19381939,manyhaddenouncedhelpingrefuJews.Pollsrevealed7185%opposedincreasingimmigration quotes; 67% opposed admitting any refugees and 67% opposed a onetime admission of 10,000 refugee children. Turning away the refugees aboard the St. Louis was a low point in the Roosevelt administration and perhapsindefensibleinlightoftheHolocaust,butRoosevelthardlyactedinavacuum.Thepublicopinionwas decidedlyagainstadmittingJews.OnecanonlyguessathowmuchoftheantiSemitismprevalentatthetime wasthedirectresultofthevariousantiSemiticcampaignsconductedbytheRepublicanParty.Itcouldnotbea minorfactor,asmanyoftheseantiSemiticcampaignsrunbyRepublicansequatedJudaismwithcommunism, asintheexampleofthe1938Minnesotaelection.MoreexamplesoftheextremeantiSemitismofRepublican congressmenwillbegivenlaterinthechapter. ThepatternofcollaborationbetweentheRepublicanPartyandtheNazisextendsfurther.

OnNovember23,1937executivesofGeneralMotorsandothercorporateandpolitical leadersmetwithBaronManfredvonKillinger,andagreedtoatotalcommitmenttowards the Nazi cause. The agreement also called for the replacement of Roosevelt, preferably withBurtonWheelerofMontana.TheagreementwassecretbutleakedtoGeorgeSeldes and published in In Fact. The entire text of the agreement can be found in Facts and Fascism,aportionofwhichappearsbelow.[9] ThesubstanceoftheGermansuggestionamountstochangingthespiritofournation as expressed by recent elections. That is possible but by no means easy. The people must become aware of the disastrous economic effects of the policies of the present Baron Manfred administrationfirst.Inthewakeofreorientationofthepublicopinion,avigorousdrive von Killinger muststartinthepressandradio.Technicallyitremainsaquestionastowhetherthis drivemaycenteraroundtheRepublicanNationalCommittee. Farsighted businessmen will welcome conferences of this kind. A tremendous inspiration might come out of them. There is no reason why we should not learn of emergenciessimilartothoseprevailinginourowncountryandthemethodsbywhich farsighted governments were trying to overcome them. It is also clear that manufacturers, who usually contributed to the campaigns of all candidates must Senator Burton Wheeler realizethattheirsupportmustbereservedtoone,inwhoseselectiontheymusttake anactivehand. Eachsectionofthedocumentwaswrittenbyoneoftheparticipants.AmemberoftheUnitedStatesSenate wrotethefirstparagraphofthequoteabove,thesecondbyarepresentativeofGeneralMotors.Onceagain,itis clearfromthefirstparagraphthatleadersoftheRepublicanPartywerecollaboratingwiththeNazis.Itfurther establishesthispatternofcollaborationoveraperiodofseveralyears.Norwouldthisbethelastinvolvement ofNaziswithintheRepublicanParty.In1940,agroupofRepublicancongressmenacceptedmoneyfromHitler fortheirelectioncampaigns. Thesecondparagraphaboveisofparamountimportance.Inthefollowingchapteritwillbeshownthatthe leadersofcorporateAmericadidfollowtheprescriptionaboveforsubvertingdemocracy. After the failure of Alf Landon in the presidential race, and in defiance of Roosevelts desire to improve workingconditionsfortheaverageman,KnudsenandduPontlaunchedaspeedupsystematGeneralMotors. The system forced men to work at horrifying speed and many line workers died from the heat and the pressure. IrneduPontpersonallypaidoutalmostonemilliondollarstohirearmedstormtroopersmodeledafter theGestapo,andequippedthemwithgastosweepthroughhisplantsandbeatanyrebelliousworkers.Healso hiredPinkertontolookthroughhisindustrialempiretospyonleftwingers,malcontents,orlaborleaders.This was at the same time he started to finance the notorious Black Legion in the Detroit area. He encouraged foremenatGeneralMotorstojointhisgroupofterrorists.TheprimepurposeoftheBlackLegionwastofire bomb union meetings, murder union leaders, and terrorize all workers to prevent unionization. The Black LegionwaslinkedtotheKlan,andtotheevenmoreterrifyingWolverineRepublicanLeague.Membersofthis latergroupincludedseveralbigbusinessleaders.TheBlackLegionmurderedatleast50people,manyofthem black.[6] JustasthebackersofHitlerwererichindustrialists,sowerethebackersoffascismintheUnitedStates.The previous chapter detailed the willingness of corporate Americas leaders to enter into cartel agreements, which,ineffect,wouldgrantthemamonopoly.Asecondaspectoffascismthatappealedtobigbusinesswasits extremeantiunionism.ProfessorGaetanoSalveminiofHarvardwasquotedintheundergraduatedaily,thata newfascismthreatensAmerica,thefascismofcorporatebusinessenterpriseinthiscountry.Healsobelieved that100%ofAmericanbigbusinesswasinsympathywithfascism.[8]Attheveryleastsupportforfascismwas widespread among industrialists in this country, as the following quote from The New York Times from the AmbassadortoGermany,WilliamDoddshows: AcliqueofUSindustrialistsishellbenttobringafasciststatetosupplantourdemocraticgovernment andisworkingcloselywiththefascistregimeinGermanyandItaly.Ihavehadplentyofopportunityin mypostinBerlintowitnesshowclosesomeofourAmericanrulingfamiliesaretotheNaziregime.On (theship)afellowpassenger,whoisaprominentexecutiveofoneofthelargestcorporations,toldme

point blank that he would be ready to take definite action to bring fascism into America if President Rooseveltcontinuedhisprogressivepolicies. CertainAmericanindustrialistshadagreatdealtodowithbringingfascistregimesintobeinginboth GermanyandItaly.Theyextendedaidtohelpfascismoccupytheseatofpower,andtheyarehelpingto keepitthere. Propagandists for the fascist groups try to dismiss the fascist scare. We should be aware of the symptoms. When industrialists ignore laws designed for social and economic progress they will seek recourse to a fascist state when the institutions of our government compel them to comply with the provisions.[7] ThecollaborationbetweentheRepublicanPartyandtheNaziswasanongoingeffortthroughoutthe1930sas alreadyestablishedabove.Itwouldntreachepidemicproportionsuntilthe1940election.WiththeEuropean continent already embroiled in war and Roosevelts proBritish views, the Nazis were desperate to keep the United States out of the war. In a bizarre plot full of intrigue involving Texas oilman William Rhodes Davis, laborleaderJohnL.LewisandMexico,NazisprovidedextensivefundingtotheRepublicanPartyforthe1940 election. W.R. Davis of Texas Oil had been supplying the Nazi navy with oil since 1936, and was the owner of Eurotanker,ahugeGermanrefinery.ForthecompletestoryofDavis,thereadershouldseeMysteryMan.[93] DavishadarrangedadealtosupplytheNaziswithoilfromMexico.SinceMexicohadnationalizeditsoilfields, includingsomeownedbyDavis,theMexicanoilmarketwasboycottedbybigoil,ledbyStandardOilofNew Jersey.ThedealwasthusvitalfortheMexicaneconomy. TheoutbreakofwarinEuropealsojeopardizedDavisroadtoriches.DavisusedhisfriendshipwithJohnL. Lewis to arrange a meeting with Roosevelt early in 1940 in which he proposed a wild peace plan to FDR. Roosevelt was cool to the plan and informed Davis that any peace plan would have to come through official channels. Davis rushed to Europe, arriving in Italy then traveling to Germany. There he met with Goring. Central to Davis plan was the removal of Hitler; the Nazis would remain in power under Goring. Upon his return,RooseveltrefusedtomeetwithDavis. Besides the peace plan, talk also centered around the upcoming presidential election. The Nazis were desperately seeking the defeat of Roosevelt, although they were less than enthused with the Republican candidates.TheyagreedthebestchanceofdefeatingRooseveltwastobacktheRepublicansratherthanruna thirdparty.DavisknewthatLewiswasopposedtowarandhadinformedtheNazisthatLewishadcontrolover theelectionwithhislargeblockofunionvoters.Lewiswasnotprofascism;ratherhefearedthatanewwar wouldleadtoadictatorshipandtheplacingoftheCIOunderemergencylaws.InlightoftheRedScareof1919 onecanhardlyfaultLewisforhisfears.[94]Talksoonsettledonhowmuchmoneywouldbeneededtodefeat Roosevelt,withthefinalsumsettledatfivemilliondollars. The plan and the money were carried to the United States by Joachim Herslet of the Reich Foreign Economic Ministry. Herslet informed the charge daffaires of the German Embassy in Washington of his mission,andthathehadfivemilliondollarsathisdisposal.Toobtaindollars,GoringpersuadedtheItaliansto release money from their fund used to finance fascist propaganda and espionage. An Italian courier, Luigi Podesta,deliveredthemoneytotheGermanconsulateinNewYork.Davisreceivedsomeofthemoneyfrom Herslet then opened accounts in the Bank of Boston, Irving Trust, Bank of America and Banco Germany of MexicoCity. On the eve of the Republican National Convention, money from this Nazi slush fund was used in a propaganda blitz for the isolationists. One Republican Congressman received $3,000 for heading up a contingentoffiftyisolationists.TheNazimoneywaswellspent,astheconventionclosedwithapartyplatform plankfirmlyopposedtoUSinvolvementinthewar.TheNaziswereespeciallypleasedtonotethattheplatform plank was taken almost verbatim from the fullpage German propaganda ads placed in The New York Times.[35]TheadappearedonJune25.StephenDayhadbeenpaidthousandsofdollarstoformthecommittee publishingthead.Day, aRepublicanCongressmanfromIllinois,wouldbe namedasafascistcollaborator by Maloney. The ad was signed by Representatives Samuel Pettingill, Harold Knudsen, John OConner and HamiltonFish,andSenatorsEdwinJohnson,BennettClark,DavidWalsh,BurtonWheelerandRushHolt.[101] BothLewisandDemocraticSenatorBurtonWheeler,aleadingisolationist,spokebeforetheconvention. With such a success behind them, the Nazis then decided to spring a similar effort on the Democratic convention. Central to the scheme was Davis, who distributed $100,000 to buy forty delegates from

PennsylvaniatovoteagainstRoosevelt.TheNazipressagent,KurtSell,arrangedforseveralotherDemocratic CongressmentoattendtheconventiononGermanEmbassyfunds.Sellalsofundedanumberofantiwaradsin TheChicagoTribuneonJuly15. Although the Nazis were not enthused over Wilkies nomination, they thought any President would be betterthanRoosevelt.Throughtheirslushfundoffivemilliondollars,theNazissurreptitiouslyhelpedWilkie throughsecretdonationstovariousproWilkieclubs.Thomsen,the charge daffairesoftheGermanembassy, destroyed all receipts, so it may never be known how much money the Nazis funneled into the Republican Party,ortowhom.Itisnotcleariftheentirefivemillionwasspent.Supposedly,$3milliondollarswasfoundin theembassywhentheFBIseizeditinDecember1941.Nevertheless,theembassyhadsourcesoffundingother thanHersletsfunds.Infact,ThomsendidnotcooperatewithHersletandranhisownseparatecampaign. Perhaps the best summary of this plot is a quote from a report to the German Foreign Ministry by the GermanAmbassadorThomsen. Rooseveltsprospectsofbeingelectedathirdtimehavedeclined(3). The election campaign maneuvers of John L. Lewis, chief of the CIO, and Senator Wheeler regarding (3). AtthisjunctureJohnL.Lewisentersthearenawithapproximately8to10millionvotescontrolledby him.Heisdeterminedtomakeruthlessuseofhisinfluence,andwilldosoinfavorofstrictisolationism. LewisispursuingthatpolicynotindeedbecauseofanyproGermansentiments,butbecausehefears that Americas involvement in a war would mean the establishment of an American dictatorship and the placing of his organization under emergency laws. He is negotiating with Republicans at present andwillsupporttheminthecampaignifWilkiepubliclydeclareshimselfforkeepingAmericaoutofall Europeanconflicts.LewiscanthrowhisstrengthatwilltotheRepublicansortheDemocrats,butthis muchiscertain,thathesurelywillnotuseitforRoosevelt.Hemayeven,ashehasalreadythreatened to do, organize a third party of disgruntled Democrats, the Peace party, and in the person of closely alliedSenatorWheelerputupasuitablecandidate.[99] While $5 million dollars seems a trivial amount today in a Presidential campaign, in 1940 the amount was significant,asthetotalexpendituresbytheRepublicanPartywasslightlylessthan$15million.Regardlessof whethertheNazisspentonly$2millionorthefull$5milliondollars,theywereamajorsourceofcampaign funds for the Republicans in 1940. In short, a major proportion ranging from 15% to over 33% of the Republicancampaignfundsin1940camedirectlyfromtheNazis.Consideringthefactthemajorindustrialists wereactivesupportersoftheNazisandlargedonorstotheRepublicanParty,wellover50%oftheRepublican campaignfundingin1940cameeitherdirectlyfromNazisinBerlinorthosewithintheUnitedStates. FollowingtheNazis,Davislikewisedonatedatleast$48,000toWilkie,bypassingthe$5,000federallimit withseveralmethodssuchasdonatingtoindividualstateparties.Davisalsobankrolledtheradioaddressof LewisonOctober21inwhichLewisannouncedhissupportforWilkie.InlateOctober,Davisforwardedcopies of documents pertaining to his proposed peace plan to leaders of the Republican Party, including Wilkie, former President Hoover, Sam Pryor and Verne Marshall. Wilkie decided not to use the material, fearing it mightbackfire.Intheend,laborchosetoremainloyaltoFDRandRooseveltwontheelectionwith27million votestoWilkies22million.[95] WecanclearlyseefromtheevidenceabovethattheNaziswereinvolvedinthepoliticalprocesswithinthe UnitedStatesfromatleast1932.However,theextentofthatinvolvementisstillshroudedinfog.Somewherein thevaultsoftheUnitedStatesandEngland,incriminatingfilesliehiddenthatwillexposethecollaborationof manymoreindividualsandcorporationswiththeNazis.

Part 3: Fascists and Unions

Inalaterchapter,theconnectionbetweenWallStreetandtheNaziswillbeexposed,fornowitwillsufficeto expose some the effects of the treasonous dealings of corporate America with the Nazis. Many of the deals betweencorporateAmericaandtheNaziswerecarteltypeagreementsthatarenotunliketheestablishmentof monopoliesasestablishedinthepreviouschapter.PriortotheUSentryintothewar,thebiggestscandalwas in aviation. Contracts had been awarded for 4,000 planes in 1940 but by August 9, only 33 planes had been built.ThetruthwasthattheaviationindustrywasdominatedinmanycasesbyGeneralMotorsandunderthe controloftheduPonts.Thepresssuppressedtherealstoryofasitdownstrikebybigbusinessanddistracted thepublicsattentionbyblaminglabor.Thetruthwasitwasastrikeofcapital;untilbigbusinessgotspecialtax

breaks,itrefusedtoproduceplanes.[36]ForsixmonthsfromMaytoOctober1940,noplaneswereproduced. CorporateAmericawasusingtheaviationindustryasafronttobreakPresidentRooseveltsplan. Throughout this sitdown strike by corporate America, the press was busy attacking labor and failed to mentiontherefusalofGeneralMotorstoacceptcontractsalreadyawardedforplanes.Thissitdownstrikeby corporate America had the support of the newspaper chains as well as the support of the War and Navy departments. The reader should also be aware that, during WWI, the auto industry came the closest to committing treason. During 1917, the auto companies refused to cut production by 25% in the second half of the year, denying the defense industry much needed production space and consuming iron and coal that would have beenbetterusedfordefenseproduction.In1941GeneralMotorsannounceditwouldproducenonewmodels until1943.GeneralMotorspromptlybrokethatpledgeandproducednewmodelsin1942. On March 26, 1942, Senator Truman accused Standard Oil of treason; Standard had delivered the new tetraethyl lead gas additive to both Germany and Japan. Standard was the major supplier of oil to both the NazisandJapan.InhisappearancebeforetheSenatecommitteeFarish,thepresidentofStandard,answered thatStandardOilwasaninternationalcompanyinresponsetoaquestionaskingifStandardhaddeliveredthe oil to Japan that made the attack on Pearl Harbor possible. Standards overall response was an advertising campaignpromotingthevirtuesofStandardproducts,helpedalongbythewillingnessofthemajorpapers.[37] Nexttogasoline,steelistheelementneededmostinproducingarmaments.Therecordofbigsteelwasone ofsabotage.AssomeofthefollowingquotesshowpulledfromLabor,aunionpublicationbySeldes.[38] SabotageofwarprogramchargedtoSteelmagnates: LaborJuly7,1942.Subtitle:Moreinterestedin keepingmonopolythanwithbeatingAxisdeclaresSenatorOMahoney. TrumanAccusesSteelCompaniesofSabotage: PM,June6,1942.Subtitle:SenatorBlackchargesthat bigcorporationshamstringproduction. AndfromLaborApril28,1942thefollowingquote: Ithasbecomeclearasthenoondaysunthattheviciousattackwhichhasbeenmadeonthenations workersinrecentweekswasactuallyaredherringdesignedtodivertattentionfromthetreasonable sabotage of the nations war program by Big Business, which is being exposed by congressional committeesanddefenseagencies. Proof of that statement may reasonably be drawn from the sensational and unbelievably shocking disclosuresofacoldbloodedbetrayalofnationalwelfarebymenwhoseonlyflagisthedollarsign. Oneofthemostshamefulchaptersinourhistory. The CarnegieIllinois Steel Corporation subsidiary of US Steel and the Jones and Laughlin Steel CompanywerechargedbytheWarProductionBoardwithhavingrefusedtofillgovernmentarmament orders while diverting iron and steel to favorite civilian customers for nonessential purposes. The resultisthatshipbuildingandotherwarconstructionhavebeenheldup. ThePresidentdirectedtheNavytotakeoverthreeplantsoftheBrewsterAeroCompany,accusedof sabotagingtheaviationprogram. The United States faces a shortage of critical war materials because the outstanding industrial concernshavecontractswithGermanmonopolistsrestrictingproductionhere. One of the war materials needed that was hamstrung by these cartel agreements was carboloy or cemented tungsten carbide. Carboloys abrasive properties were vital in the machining of hardened steel products. Withoutit,partsfortanksandotherinstrumentsofwarwerenexttoimpossibletomachine.GeneralElectric heldthepatentthat,alongwithacartelagreementwithKrupp,limitedtheproductionandrestrictedsales.As soonasGeneralElectriccementeditsdealwithKrupp,thepriceoftungstencarbidejumpedfrom$48apound to$453apound.WithitscartelagreementinplacewithKrupp,GeneralElectricuseditspositiontobuyoutor cripple domestic competition in the abrasive market. General Electric paid royalties on every pound of carboloyproducedtoKrupp.NotonlydidthisinformtheNazisofhowmuchcarboloywasbeingusedduring thebuildupforwar,butineffecttheroyaltiesendedupinHitlerswarchest. InSeptember1940,theagreementcametoahaltwhentwofederalantitrustindictmentswerereturned againstGeneralElectricandKrupp,duetoacomplaintbytheFirthSterlingSteelCo.TheFirthSterlingSteel Co.hadrunafoulofGeneralElectricspricelevelsasitsoughttosellshellturningblankstotheUSArmy.The SenateCommitteeonMilitaryAffairswasoutragedathowthecartelagreementshinderedwarproduction.The

GeneralElectricKruppcartelhadcreatedabottleneckinproduction.Therewasnodomesticproductionsince GeneralElectrichaddriventhemoutofbusiness.Oncesufficientquantitieswereavailable,moretimewouldbe lostinretoolingplantsandtrainingworkmentouseitproperly. OnJanuary26,1947,thetrialofGeneralElectricresumedinNewYorkCity.UnderindictmentwereGEVice President Zay Jeffries; President W.G. Robbins of the Carboloy Co., and Walter M. Stearns, former GE trade managerandGustavKrupp.Kruppwasnotpresent,ashewasbeingheldinGermanyforwarcrimes.Ironically duringthetrialJeffriesaccusedunionleadersashavingunAmericanobjectivesanddenouncedhighwages. Throughout the trial General Electrics lawyers fought bitterly against the introduction of captured Nazi documents.InonesuchdocumentWalterStearnswasquotedastellingtheGermansthatwhileGEintendedto fixprices,thismustneverbeexpressedinthecontractitselforinanycorrespondencewhichmightcomeinto thefilesofGE.OtherdocumentsquotedJeffriesthreateningthepresidentofacompetitor:Welleitherbuy yououtorbreakyou. The trial found that General Electric, its subsidiaries and company officials were guilty on five counts of criminal conspiracy. Ironically no further charges such as sedition or hindering the war effort were leveled againsttheconspirators.DespitepleasfromthedepartmentofJusticeforheavysentences,JudgeJohnC.Knox administered only minor fines. Stearns and Jeffries were fined $2,500 each and Robbins $1,000. GE and Carboloywerefined$20,000eachandInternationalGeneralElectriconly$10,000.ThefineforGeneralElectric was particularly lax considering the firm had made millions on carboloy. In fact, in 1935 and 1936, General Electricssubsidiarythatmanufacturedandsoldcarboloymadeaprofitof$694,000injustthosetwoyears. The newspapers of the time failed to cover the trial and the convictions. Nevertheless the newspapers found plenty of spaces on their front pages at the time to cover General Electrics charges that UE members employed at atomic energy facilities were potential security risks. The unions UE News was the only paper thatreportedthetrialandconvictions.Onceagaintherichandpowerfulescapedfromjusticewithamereslap onthewrist. TheAluminumCorporationhadanagreementwithI.G.Farben,whichrestrictedproductionofaluminum andmagnesiumthathinderedthebuildingoffightersandbombers.Therecordfromthateraisclear,corporate America was doing its damnedest to sabotage the war effort. A recent article in the press now states that at least300corporationsweredoingbusinesswiththeNazisduringthewar.[39] ThefollowingreactionariesamongbigbusinessmenweresupportersofMerwinHartsAmericanUnionfor NationalisticSpain,oneofthemanyprofascistgroupsHartformedandsupported:JamesRandofRemington Rand;LammotduPont;A.W.Erickson,chairmanofaNewYorkadvertisingagency;AlfredSloan,presidentof GeneralMotorsandJ.H.Alstyne,presidentofOtisElevators.Hartsupportedthefascistlinefully.Heopposed the44hourweek,foughtagainsttheUnemploymentAct,foughtagainsttheChildLaborActand,evenmore odiously,demandedthatonlythosepersonsnotonreliefbeallowedtovote.NorwasHartmuchofabeliever indemocracyasthefollowingquoteshows. DemocracyistherallyingcryunderwhichtheAmericansystemofgovernmentisbeingpreparedfor despotism. If you find any organization containing the word democracy it is probably directly or indirectlyaffiliatedwiththeCommunistParty.[40] NexttotheduPontsandtheirfriends,HenryFordwasthemostnotoriousproHitlerbacker.In1919,hefirst announcedhisantiSemiticviewswhenhestated: International financiers are behind all war. They are what is called the International Jew; German Jews,FrenchJews,EnglishJews,AmericanJewstheJewisthethreat.[10] Once again, the reader should look at the familiar rhetoric today among many of the right wing groups, particularlythePosseComitatus.ThequoteaboveisalmostunchangedfromtherhetoricofthePosseinthe 1980s.ThePosseusescodewordssuchasinternationalbankerstomeanJews.Likewisetheyandothersare stillpromotingTheProtocolsoftheEldersofZion,amaliciousantiSemiticbookbasedonnothingmorethan outrageousliesfirstpublishedinthiscountrybyFordinhisDearbornIndependent. FordsinvolvementwentmuchfurtherthanmerelypublishingantiSemitictrash;hewasoneoftheearly financiers of Hitler. Obtaining hard evidence of funding for Hitler is a rarity but in the case of Ford, it is irrefutable.ThemostcredibleevidencecomesfromthetreasontrialofHitlerafterthefailedBeerHallPutsch. OnFebruary7,1924,HerrAuer,vicepresidentoftheBavarianDiettestifiedasfollows: The Bavarian Diet has long had information that the Hitler movement was partly financed by an American antiSemitic chief, who is Henry Ford. Mr. Fords interests in the Bavarian antiSemitic

movemen nt began a year y ago whe en one of Mr r. Fords age ents, seeking g to sell tract tors, came in n contact withDied drichEichart tthenotorio ousPanGerm man.Shortly after,HerrE Eichartasked dMr.Fords agentfor financial aid. The ag gent returned to Americ ca and imme ediately Mr. Fords mon ney began co oming to Munich.[11] C Confirmation nofthisearly ysupportfor rHitlercanb befoundina aninterview wwithHitler sevenmonth hsbeforethe e B Beer Hall Putsch with Ra aymond Fend drick, a foreign correspo ondent for The T Chicago Times T . At the e time, Hitler w wasunknown noutsideofMunich.Ane excerptofthe einterviewf follows. We look k on Heinric ch Ford as th he leader of f the growin ng fascisti mo ovement in America. We W admire particularlytheantiJ Jewishpolicy y,whichist theBavarianFascistiplatform.Wehavejusthad dhisanti rticlestransla atedandpub blished.Itisb beingcircula atedtomillio onsthroughoutGermany.[12] Jewishar F Ford, like Ha art, supporte ed the Nazi agenda, full ly harboring g a rabid hat tred of Jews s and u unions.Oneo ofthemythsthatFordsu uccessfullycr reatedwasth hathepaidh hisworkersm more t than other fi irms did, wh hen in fact he h paid less. The United Autoworker rs printed ta ables s showing the wages for every catego ory of work ker to be low wer than the e wages pai id by C Chrysler and d Briggs (Gen neral Motors), the realit ty was that the maximu um wage pai id by F Fordwasbel lowthemini imumwageo oftheunion. .[13]Fordw wasnotknow wntobegene erous o supportiv or ve of chariti ies; he neve er contributed any larg ge sum to anyone a with one e exception. The exception was the Moral ReAr rmament Movement lea ad by Dr. Frank F B Buchman,an notoriousfas scistandaLu utheranminister.[14] Dr. Frank Buchman Buchman n preached a a philosophy y of pacifica ation of labo or through the t use of force. f F Followers of f Buchman read r like a whos who in the antiunion move ement such as Harry Chandler, C the e r reactionaryp publisherofThe T LosAnglesTimesand dLouisB.Ma ayer.Alongw withhispacifi icationoflab bor,Buchman n w rabidly opposed to communism was m and praise ed Hitlers op pposition to communism m as the foll lowing quote e r reveals. Ithankh heavenfora amanlikeAd dolfHitler,w whobuiltaf frontlineof defenseagai insttheanti Christof Communism.[97] W While many of Buchman ns apologist ts claim Buch hman later said s he was deceived by y Hitler, Buc chman never r renounced fa ascism or changed his fa ascist views towards labor. Although h the Moral ReArmamen R nt Movemen nt h persisted has d, its views have been controversia al. The prim mary reason the Moral ReArmamen R nt group has s p persisted to the present day is the probusiness p and antilab bor stance an nd the support it receive es from such h b businesslead dersasFord.Thereaders shouldalson noteBuchma anwasthefo ounderofAlc coholicsAnon nymous. Fordemp ployedHarry yBennetttodealwithla abor.Bennet tthadoneof fthelargest spyandthu ugservicesin n A Americaatth hattimetobeat,killand otherwisein ntimidatewo orkers.Wher reeveraFord dplantwasl locatedthere e w wasalongre ecordofmurdersandbea atingsofwor rkersattheh handsofBen nnettsthugs. .Fordevenw wentsofaras s t tofireworke erswhotook kpartinthe e1932Ford hungermarch.Bennett employed Fa atherCoughl lin,therabid d f fascistradio priest,toun nderminethe eeffortstou unionizeFord d.Inessence e,Coughlinb bribedHomerMartininto o b betrayingthe eunioninan nefforttoformacompany yunionratherthantojoi intheAFLor rCIO.[15] Thepligh htoftheAme ericanworke erduringthe e30sishard dlyimaginabletoday.Inf factthecond ditionsunder w which labor worked wer re so intoler rable that nu umerous Con ngressional committees c and hearing gs were held d. E Employersro outinelyused dspies,hiredstoolpigeo ons,thugs,g gangstersand dmurders.T Theywerew wellequipped d w witharmsinc cludingThom mpsonmachinegunsand dpoisonousg gas,theterm matthetimeforteargas.Thisviscera al h hatred of lab bor and unio ons by emplo oyers is documented in the many volumes of th he La Follett te reports on n c corporateAm merica.Georg geSeldeslist tsthefollowi ingsevenfac ctsfromtheL LaFollettere eports: 1. thatA Americanbusinessemplo oysavastesp pionagesystemwhosepu urposeistof fightlabor; 2. that2 200agencies semploy40,0 000to50,000spiesinind dustry; 3. that$ $80,000,000 ayearisspentbybigco orporations infightingla abor,employ yingspies,bu uyinggas andguns,hiringgang gs; 4. thata almostallthe egreatcorpo orationsarei inthespyracket,includin ngFord,Gen neralMotors, ,USSteel, Bethlehem mSteel,Cons solidatedEdison,Weir,F FrickCoke,et tc.; 5. that 2500 compa anies compr rising what Senator La Follette call led the Blu ue Book of American A theAmerican nGestapo; Industryarepartoft

6. that the National Association of Manufactures, US Chamber of Commerce, Merchants and Manufactures Association, National Metal Trades Association are the chief organizations engaged in nativefascism; 7. that the American press, which still gives its front page and its approving editorials to smears, exaggerations and falsehoods of the Dies Committee. And similar committees, and which employ reporterstoattacklabor,andespeciallythoselaborunionswhichareprogressiveandmilitantandput up a strong fight for the rights of labor, suppressed almost all the hearings and findings of the La FolletteCommittee,whichconstitutedanexposureofFascisminAmericanindustry.[16] Herewehavetheheartoffascistideologyofthe1930sandofthefarrighttoday:corporaterule.Itisthesource fortheviscerallevelofhateforunions,fueledbythecorporateeliteandtheirpropagandaorganizations.There isnobetterexampletoillustratethepoweroftheprofascistsintheUnitedStates,thantocomparetheplight of the American worker with his counterpart in the rest of the industrial nations. In every category, the American worker comes up short when compared to the workers in other industrial nations. Using the automobile industry as an example, the American worker earns 44% less than his German counterpart and 15%(1994figures)lessthanhisJapanesecounterpart.[18]Yet,theUAWhasbeenoneofthemostsuccessful unionsingainingworkersbenefits,nonunionworkersandmembersofotherunionsinAmericaearnfarless. WhiletheaverageAmericanworkerisluckytoreceiveatwoweekvacation,hisEuropeancounterpartenjoysa fiveweekvacationormoreandalistofbenefitsthattheAmericanworkercanonlydreamabout. Noristheplightoftheworkerseekingtounionizemuchdifferenttodaythanitwasinthe1930sand40s. There is a myriad of companies today in the United States that provide security for corporate America. In reality,thesecompaniesarenothingmorethanhiredthugsandunionbusters.Whilethemuggingsandfactory deathsquadsarenotasgreatathreattoday,theAmericanworkerisstillbeingspiedon.However,corporate America has no qualms about murdering union organizers in other countries. A recent report revealed that CocaCola had hired right wing death squads to murder union organizers in Columbia.[81] The United Steel WorkersUnionhasfiledsuitinMiamiallegingthatCocaColaandPanamericanBeverages,itsprincipalbottler in Latin America, waged what union leaders describe as a campaign of terror, using paramilitaries to kill, tortureandkidnapunionleadersinColombia. Infact,thelevelofspyingtodayisgreaterthanitwasinthe1930sand1940s.Workersandjobapplicants areroutinelyforcedtotakeadrugtest.Theirfinancialandmedicalrecordsareopenbookstotheiremployers. In a recent case that has surfaced, Burlington Northern Santa Fe Railway was found to have ordered genetic testing of an employee as a follow up to his surgery for carpal tunnel syndrome. There is no gene for carpal tunnelsyndrome.Theemployeewasnotinformedofthegenetictesting,norhadhegivenpermissionforsuch testing.Theinformationthencouldbeusedtodenypromotionsortotriggerthefiringoftheemployeebecause hehadapredispositiontocancerorotherinheritabledisease.[77] However, even more onerous are the private blacklists. The American Security Council is a group that formedinthelate 1950swiththeexpressedpurposeofprovidingtoany membercompanyacheckontheir employees or applicants for persons deemed to foster antifree enterprise views.[17] The American Security Council is directly linked with the profascists of the 1930s as will be detailed later. Nor is the American SecurityCounciltheonlysuchgroup;theChurchLeaguefoundedinthe1930sisanother.Indeed,almostevery right wing group maintains some sort of blacklist. The express purpose of such blacklists is to deny employmenttoanyoneholdingnonacceptableviewssuchasunionactivismorleftistpoliticalviews. Insomeregardslaborhasadvanced,butforthelargerpartlaborhaslostgroundfromthehighgroundof the1950scoincidingwithapeakinunionmembership.Todayitiscommonplacetohearofsweatshopsbeing raidedinwhichtheworkerswereheldvirtuallyatgunpoint.Otherworkersareforcedtoworkofftheclockby managers,andchildlaborisnowalargerproblemthanitwasin1900. Such wide differences in worker pay and benefits between the US worker and his European counterpart notonlyreflectthegreaterunionizationinEuropeancountries,butalsoapoliticalsystemthatismoreunion friendly. In a later chapter it will be shown that many of the antiunion laws passed since the close of WWII weretheproductsoffascistgroups.Adirectresultofsuchantilaborsentimentisthewidedisparityinwealth intheUS;thereisnoothermajornationintheworldwithsuchawidedisparitythanthatcurrentintheUnited States. Thesocalledfreeenterprise,aeuphemismforcorporaterule,firstappearedintheAmericanlexiconinthe middleofWWII.Thefollowingchapterwilllookinmoredetailatwrappingfascismupwithasmileyfaceand

labeling it free enterpris se. It can be directly attr ributed to Ir rne du Pont and by th he end of th he war it had d r replacedtwo oofthefreed domsthatFD DRhelddear, ,theFreedom mfromWan ntandtheFre eedomfrom Fear.Unable e t buy and control elections, we on to nce again ca an see du Pont P and the e proNazis changing th heir strategy y. U Unfortunatel A wo orker, they have h been hugely h succe essful in spr reading thei ir antiunion n y for the American p propagandat throughthec corporatemedia. The stand dard tactic of o fascists lik ke the du Po onts was to finance a leg gitimate grou up that wou uld be widely y a accepted,the enuseittofu urthertheir aimsbyfocu usingmedia attentionon nthegroup.A Agoodexam mplefromthe e p previous cha apter was th he American n Legion; ano other examp ple is the Am merican Security Counci il that had a a t tremendousi influenceint theReagana administratio on. Likewise, , the reader should recall the agreem ment reached with Baron Manfred von v Killinger r calling for a a t totalcommit dstheNazicause.Thepo ortionoftheagreementw writtenbyaG GeneralMoto orsexecutive e menttoward w wenton: Wemustjustaswel llrecognizet thatbusiness sleadersof thiscountry ymustgettogetherinthe epresent cy.Bynowt theymustha averealized thattheyca annotexpect muchfrom Washington n.Wewill emergenc havetor resorttoconcreteplanning.Wecana agreethatit isdesirable toconvince ourbusines ssleaders that it is a good inve estment to embark on su ubsidizing ou ur patriotic citizens org ganization an nd secure ionfortheco ommonpurp pose.Unified dleadership withoneco onspicuousle eaderwillbe easound theirfusi policy.W Wewillbegra atefulforany yserviceourGermanfrien ndsmaygive eusinthisre espect.[82] T Thereaders houldnotet thattheduP Pontfamilyc controlledGe eneralMotor rsatthetim me.Theword dswithinthis s a agreementca allingforthe esubversionofdemocrac cyandthetotalcommitm menttowards stheNazisar reessentially y a ablueprintfo orthedestru uctionofdem mocracy.Not tethatthepatrioticorga anizationsthewriterwas sreferringto o w were such groups as the e Silver Shir rts and Black Legion. As s already no oted, many of o the profa ascist groups s r receivedfina ncialsuppor rtfromtheba ackersofthe eplotagainst tFDR.By194 42theplano ofcorporateAmericawas s infullforcea andwillbede etailedinthe efollowingch hapter.

P 4: The Pres Part ss Sells Out to th he Nazis

Besides fund B ding profascists groups like l the Silve er Shirts, cor rporate Ame erica sponsored severalo other groups s w withahinto frespectabil lity.Onesuch horganizatio onthatfigure edprominen ntlyinspread dingthepropagandawas s t National Association of Manufact the turers (NAM M). Such orga anizations as s NAM would d serve as bridge groups s b betweenthe ateownersan ndthepublic c. richcorpora NAM, alo ong with the National Industrial Info ormation Com mmittee, pic cked up the banner of du Ponts free e e enterprisedo ogma.Itwas sFultonLew wis,Jr.,aform meremployeeofNAM,w whobecamet themouthpieceforNAM M. U Usinghisrad dioprogram ontheMutu ualNetwork, ,Lewissprea adtheNAM propaganda atoroughlyt threemillion n p peopledaily. edthetruthp putforthby theLaFollet tteandtheT Trumancomm mitteesand insteadaired d Lewisdenie N NAMs propa aganda unde er the disgui ise as Your Defense Reporter.[21] At the 1942 2 NAM conv vention, NAM M w wentonreco ordofsuppor rtingFreeEn nterprisefull ly.Theconve entionadoptedaplankof ffullsupport tofduPonts s c concept of fr ree enterpris se, even if it t hindered th he war effort. In contras st, the 1942 CIO convent tion went on n r recordforfir rstwinningth hewar.[24]Inotherwor rds,laborwa aswillingtom makethesac crificesneededtowinthe e w war;bigbusi nessontheo otherhandw wasntandpu utprofitsahe eadofthewa ar. as only one group of ma any that wa as used to propagandize e America. There T were many m others s, NAM wa including the e Chamber of o Commerce e. In the pre evious chapt ter it was de etailed how corporate America A used d g groupssuch astheCham mberofComm merceandth heAmerican nLegionasb bridgegroup psbetweenth heleaderso of c corporateAm mericaandth heworkers. Thefollowin ngchapterw willdetailhow wNAMserve edasabridg gegroup.The e r reader shoul ld be fully aware a that th he top offici ials of the Jo ohn Birch So ociety in the e 1950s wer re all former o officialsofNA AM. The med dia of the time was overtly o pro fascist, especially the major chains of n newspapers. andolph Hea arst admired d Mussolini and even paid p him to write William Ra a articlesforth heupstartUn nitedPressW WireService esofHearst. Mussoliniwa aspaid$175 50per a article, an am mount that would be eq quivalent of f about $17,000 today. The T articles were p poorlywritte enbyMarghe eritaSarfatti, ,Mussolinismistress. Hearst al lso sought out o Hitler to o write for him. h Accordi ing to the US U ambassad dor to G Germany,Do odd,Hearstm metwithHan nfstangel andRosenberg g,twoofHitlersmosttr rusted p propagandist ts, in Septem mber 1934 at Baden Ba aden. After leaving Baden Baden, Hearst H W William Randolph
Hearst

trave eledtoBerlin nwherehem metpersonal llywithHitle er.Adealwa assealedbet tweenHearst tandGoebbe elsworth $400 0,000. After receiving the money, He earst promp ptly ordered all of his writers for his Internation nal News Servicetopresen ntallevents inGermany inafriendly ymanner.Fo ollowingthe agreementH Hearstpaper rsprinted ensoredprop pagandafrom mtheNazisth hroughoutth he1930s.[84 4] unce T TheHearstp pressconsistedof25dail lynewspape ers,24weekl lynewspape ers,12radio stationsand d2world news s services. The T other major m newsp paper chain ns owned by y McCormic ck and Scrip ppsHoward likewise presentedaprof fascistview. M Manyofthem membersof theNational lPublishers Association werealsom membersofN NAM.William mWarner, publisher of McC Calls and Re edbook, was the head of f NAM. The Curtis Publishing Compa any, publish her of the g Post and the t Ladies Home H Journal l, was repres sented by P. .S. Collins, a spokesman for W.D. Saturday Evening er, the presid dent of NAM M. The Luce publications p Time, Life an nd Fortune were w also clo osely associa ated with Fulle NAM M. T Thiswriterh hasnodoubt tthatthema ajorityofthe epeoplecan reachinform medandjust tdecisionsif ftheyare prov vided with a balanced vi iew. Howeve er, the media a has always s been biase ed to the righ ht and open nly fascist durin ngthe1930s swhenHear rstamongot thershadhis spaperspub blishedGoeb bbelspropag ganda.Seldes spointed outt thatduringt the1930s,w withonlythre eeorfourex xceptions,all ofthelarge newspaper columnistsa andradio comm mentatorsw wererightwin ngreactionar ries.[22] Intheireffor rttopropaga andizetheAm mericanpeople,whatthepressomit ttedwasmor reimportant tthatthe fascistviews sitexpressed d.NomentionwasmadeoftheSenate ereportinve estigatingair rpower.Thereported prof conc cludedasfollows: is apparen It nt that American aviatio on companie es did their part p to assist t Germanys air armame ent. It s seemsappare entalsothattherewasnotanadequa atecheckontheforeigns shipments. [86] Partoftheeviden nceincluded daletterfrom mthepreside entofCurtiss sWrighttoh hissalesmenasfollows: We have be een nosing around in the e bureau in Washington n and find th hat they hold d as most st trictly c confidentialt theirdivebo ombingtactic csandprocedure,andth heyfrownuponoureven mentioning dive b bombinginc onnectionw withtheHawk ks,oranyoth herairplanes stoforeignp powers. Itisalsounw wiseandune ethicalatthistime,andp probablyfor sometimeto ocome,foru ustoindicate ethat w weknowany ythingaboutthetechniqu ueandtactics sofdivebom mbing. Itmaybealr righttopu utonadiveb bombingsho owtoshowt thestrength oftheairpla anesbutto refer incontractst todivebomb bingorendeavortoteach hdivebomb bingiswhatI Iamcautioningagainstd doing. [87] Curti issWrightdiddemonstratetheirdivebombingp planesinairs showsinEur rope,helping gtheNazisto odevelop theS Stuka.Inthefirstsixmon nthsof1933,Pratt&Whi itneyssalesjumpedtoal lmostamillionandhalfd dollarsas the Nye N report exposed e the company as s one of the largest smugglers of pla anes to Hitle er. Other sup ppliers of aircr raftpartstoH HitlerintheearlyyearsincludedCurt tissWrighta andDouglas. A Another scan ndal left unreported wa as the sale of defective e wire by Anaconda. A On ne notable newscas ster of the ti ime failing to t report the e story was Lowell Thomas. Thoma as adcastwassp ponsoredbythePews,an ndThomasha addonewor rkforNAM. broa T St. Louis StarTimese The exposedthe USCartridge eCo.ofprod ducingdefect tivecartridge es and had submitt ted their find dings to the Office of Cen nsorship, rec ceiving no objections. Th he wirefailedto opickupthe estoryandt thestorywe entunreporte edoutsideo oftheSt.Lou uis APw area. T strike by The y capital to produce p war r munitions was blamed on labor in the press. No N ment tion was ma ade in the pr ress of the Tolan T Commi ittee. Testify ying before th he committe ee, Lowell Thomas theU UnitedAutoW Workerspre esidentstatedthatof157 77machinet tools,337we ereidle.Inh his testim mony,heurg gedcoordina ationoftheu unusedtools s.TheAutow workerssecre etaryreported64%mac chinetool idlen nesswasacr rimeagainstcivilizationa anddemocra acy. N Nordidthep pressreport ontheprofi itmongering gbycorpora ateAmerica. JamesHayes s,generalco ounselfor the ILWU I Dispat tcher, testifie ed before the Congressio onal Mercha ant Marine su ubcommittee e, giving pro oof of the obsceneprofiteeringinshipp ping.Duetot thesitdown nstrikebyco orporateAmerica,thegovernmentw wasforced ease private ships. The American A Fo oreign Steam mship Corp. made m a prof fit of $895,974 on two trips. t The to le AmericanExport tLinemadea aprofitof$1 1,572,144on nshipsworth honly$232,3 350.TheAmericanPresid dentLine $814,242onshipsworth h$307,828in nthreetrips. madeaprofitof$

The situation is unchanged today as we prepare to enter the 21st Century; the columnists and the radio mouthpiecesarealmostfullyhardrightintheirviews.Thenewsfailedtoreportonthehealthriskandcostsof onthejobinjuriesanddisease.Whenevernewregulationsareproposed,themediacoveragecomesfromthe Chamber of Commerce or another probusiness organization. The only costs discussed are the cost to the corporation, no mention is ever heard of the cost to the family or to the breadwinner earnings is ever mentioned. Todaythemediaisevenmoreconsolidatedthanthemediainthe1940s,lessthantencorporationscontrol overeightypercentoftheairwavesandpress.TheRepublicanshaverepeatedtheliethatthemediaisbiased totheleftsomanytimesthatmanypeoplebuyintoit,eventhoughthereverseistrue.Thecorporationsinfact censor the media. Two thirds of the editors when questioned have reported that their advertisers have threatened to withdraw advertising because of the content of news stories. Seventy five percent report that largeadvertisershavetriedtoinfluencethecontentofnewsstoriesina1992survey. AProcter&GambleexecutivetestifiedbeforeaFederalCommunicationsCommissionin1965thatmadeit clearthathiscompanywouldonlysponsorprogramsmeetingthecompanysstrictstandards. There will be no material in any of our programs which could in any way further the concept of businessascold,ruthlessandlackingallsentimentorspiritualmotivation.[23] Thus,theantiunioncoverageofsomeofthemajorstrikesinthelate1990sshouldcomeasnosurprise.The coverage of the UPS strike only focused on how the strike was hurting various businesses. No mention was made of the cause of the strike, the use of excess parttime workers and the attempted money grab of the unionspensionfund.Nomentionwasmadeinthepressofhowcorporationshaveraidedpensionfundsand left retired workers holding an empty bag. During the GM strike, coverage focused on how the strike was hurting car sales. No mention was made of the fact that GM had violated the terms of the union contract by sneakingthestampingdiesoutoftheplantduringthemiddleofthenightovertheMemorialDayholidaylikea thiefinthenight. It was through the profascist press and trade organizations that du Pont was successful in creating the illusionoffreeenterpriseasafreedomtobeupheld.HarryBennetandotherswithintheFordempireopenly boasted to Rimar, a former member of the Fords Gestapo that no newspaper would print his version of the truthduringhistrial.IndeednonedidandnopublisherwouldpublishhisbookHeilHenry!TheConfession ofaFordSpy.Thefollowingisashortquotefromhismanuscript. ForyearsIhavebeenoneofthekeymenintheFordGestapo.WithintheFordsdomainIsoonfound there was no liberty, no free speech, no human dignity the vast power of Ford extended into the courts,schools,prisons,clubs,banks,evenintothenationalcapitol,envelopingusallinablackcloudof suppressionandfear. OurGestapocoveredDearbornwithathickwebofcorruption,intimidationandintrigue.Thespynet wasallembracing.Myownagentsreportedbacktomeconversationsingrocerystores,meatmarkets andrestaurants,gamblingjoints,beergardens,socialgroups,boysclubs,andevenchurches.[20] ThequoteservestopointouttheextentofFordsantiunionactivitiesandthewillingnessofcorporationsto useanymeansavailabletospyonandintimidatetheirworkers.ThepreviouslymentionedAmericanSecurity Councilsprimarymissionwasthatofprovidingablacklistforcorporatemembers.Corporationsarenowprivy to more information than ever about their employees. The information age has allowed new means for corporations to pry into the private lives of their employees. At least in this country, corporations are even allowedtoreadtheprivateemailoftheiremployeesandtosearchemployeelockers.Somecorporationseven maintaintherighttosearchemployeescarsiftheyareparkedinacompanyparkinglot.IneffectinAmerica, workers must give up all of their constitutional rights, including the rights to privacy, free speech and assembly,theminutetheywalkthoughthecorporatedoorseekingajob. Yetitisthemedia,heldsubservienttotheiradvertisersorinsomecaseswithdefensecontractorsowninga mediadivision,whichhashelpedtopromotethisantiunion sentiment.Again,thisisreadilyapparentinthe newscasts.WhenOSHAsoughttosetnewworkplacestandardstopreventrepetitivestressinjuries,themedia airedtheviewsoftheChamberofCommerce.Noinformationfromdoctorsorunionswaspresentedtoreveal theextentoftheproblemorthedebilitatingeffectsofthismenacetoworkersforcedtoworkatungodlyspeed. In the sixty years that have followed WWII, the Republican Party and the far right wing extremists have adopted the philosophy at the heart of fascism: corporate rule. It forms the basis for the intense hatred of unionsandworkingpeople.IntheentireeightyearsoftheReaganadministration(thereadermayfeelfreeto

readthatasreignofterror)theminimumwagewasnotraisedonce,althoughinflationstillragedthroughthe early 80s. Reagan himself sent a signal to corporate America that he would not seek prosecution of union busterswhenhefiredthestrikingPATCOworkers. Perhaps the best way to convey to the reader the plight labor faced in the thirties is to present the data fromtheRobertLaFollettecommittee. The committee found that purchasing and storing arsenals of firearms and tear and sickening gas weapons is a common practice of large employers of labor who refuse to bargain collectively with legitimatelaborunionsandthatthereexistsalargebusinessofsupplyinggasweaponstoindustry. During the years 1933 through June 1937, $1,255,392.55 worth of tear and sickening gas was purchasedbyemployersandlawenforcementagencies,chieflyduringorinanticipationofstrikesall ofthelargestindividualpurchasersarecorporationsandthattheirtotalsfarsurpassthoseoflargelaw enforcement purchases. In fact the largest purchaser of gas equipment in the country, the Republic SteelCorp,boughtfourtimesasmuchasthelargestlawenforcementpurchaser.[61] The reader should note that this was during the depression, when a new car still sold for less than one thousanddollarsandallthematerialsforanewcataloguehomecouldbeboughtforlessthantenthousand,to addsomeperspectivetothatdollaramount. Failingtophysicallybeatlaborintosubmission,thefasciststurnedtolegaltacticssuchasthe antiunion right to work law. The law is still highly regarded in right wing circles today, but few know that the fascist group,ChristianAmerica,firstsponsoreditintheearly1940s.[69]TheforcesbehindtheChristianAmerican groupwerewealthyTexanstiedtotheKirbyfamily.VanceMuseformedChristianAmericaafterthedeathof Kirby.BothKirbyandMusehadalonghistoryofopposingtheNewDealandsupportingracism,Musewasan associate of Gerald Smith. Another member of the Christian America was Lewis Ulrey, who took over the distribution of Gerald Winrods propaganda; he openly advocated a 12hour workday. Ulrey penned the followingquotationforGeraldWinrodsDefender. IntothisbedlamandchaosinGermanyAdolfHitlerinjectedhimselfasanewmessiahtoleadorderly Germansfrompoliticalconfusiontosystematicunity. HitlerputituptotheGermanstodecidebetweentheJewishownershipanddominationofthecountry ordominationandownershipbytheninetyninepercentoftheGermanpopulation. Humannaturebeingwhatitis,itisnotstrangethattheGermansdecidedagainsttheJewsandinfavorof Hitler. Our President has sent two insulting messages to Hitler and a number of his pink cabineteers have most blantantlyandviolentlybroadcastsillyinsultstotheGermangovernment.[70] The Christian America group was the leading lobbyist for the right to work laws throughout the South and Midwest in the early 1940s. Their organization was well funded and prone to use heavy handed lobbying tacticsonmembersofthevariousstatehouses.Perhapsthebestsummaryoftheirtacticscomesfromaremark byArkansasRepresentativeChambersfromColumbia,Arkansas.Onthedayofvotingfortherighttoworklaw in that state, he turned to Val Sherman, the Associate Director of Christian America, and pointed to him remarking. ImnotbrandingMr.ShermanasadiscipleofHitler,buthesagraduateofhisschool.Hitlerwouldbe gladtocharterasubmarinetoTexasandsolicithisservices.[71] The quotes above clearly provide a direct link between fascist and the antiunion right to work laws in this country.OthersassociatedwithChristianAmericawereAlfredSloan,CEOofGM,theduPonts,bankersGeorge andJosephWidener,andWallStreetlawyerOdgenMills. This guttural hatred of unions and support for corporate rule is but one of the common threads linking todays far right wing groups to those of the profascist groups of the 1930s and illustrates the use of destructivedivisionismasafascisttrait.Theremainderofthechapterwillbegintoexploretheothercommon elementsaswellastoexposesomeofthecommonmyths. ItsacommonmisconceptionthatafterthebombingofPearlHarbor,theprofascistsfoldedtheirtentand wenthomequietly.Nothingcouldbefurtherfromthetruth;theysimplywentunderground.Infact,Archibald MacLeish, Librarian of Congress, accused the profascist press represented primarily by Hearst, Scripts Howard,McCormickandPattersonoftreasoninaspeechbeforetheAmericanSocietyofNewspapermen.This speechwasbroadcastatthetime,howeverthenewspapersfailedtocoveritorwhentheydid,theycensoredit

heavily.AlthoughMacLeishdidnotnamenames,hementionedtreasontwice;curiouslyinthefollowupinThe New York Timesthosetwoparagraphsweredeleted,aswasthecaseinmanyoftheotherfollowupsthatwere buriedinthebackpages.[19] Thiswasnottheonlychargeoftreasonthatsomemajornewspapersfaced.The1942AmericanNewspaper Publishers Associations convention voted for a second front now and went on to denounce the fascist appeasement forces in America naming the McCormickPatterson chain, The Chicago Tribune, The New York Daily News, The Washington TimesHeraldandtheHearstchain.ItaccusedtheAmericanpressofanantiunion biasandsuppressingandslantingthenewstofitthepublishersviews.[24]ThefollowingquotefromWilliam Green,presidentoftheAFLconfirmshowdeepthissupportforfascismwas: Recently a bitter campaign of malicious propaganda to poison the publics mind against organized laborhasbeencarriedonbythesubsidizedpresswhichiscomposedofreactionarydailynewspapers controlled, through ownership and advertising, by exploiting profiteers and union haters. Together with the bourbon politicians, idle rich and antilabor columnists, they are the real parasites of our country.Bypeddling falsehoodsaboutlabor,thesubsidizedpressiscreatingfactionalism,disunity and class hatred. If Hitler were not so busy running away from a victorious Russian army, he would taketimetopinmedalsontheeditorsandcolumnistwhoaremisleadingthepublic. ThereactionaryeditorsofthenewspapersaredoingjustwhatHitlerpredictedhecouldaccomplish herethroughhisagents.[25] AgainweseehowtheproNazisuseddestructivedivisionism,butthequotealsoisastruetodayasitwasthen. Thecharacterofthepresshasnotchanged.In1942 The Chicago TribuneandpartoftheMcCormickchainwas ontrialforbetrayingsecretstotheJapaneseinpublishingthenamesandlocationsoftheshipsintheBattleof theMidway.McCormickwasaviciousRoosevelthaterandsoughtoutwaystoembarrassordiscredithim. The ChicagoTribunealsopublishedRainbow5,thetopsecretbattleplanbeforethewarhadbrokenout.Inthecase ofMidway,publishingthenamesandlocationsoftheshipsinvolvedwasclearlytreasonous.The Tribunehad obtainedthatinformationthroughoneofitswarcorrespondents,StanleyJohnson. JohnsonwassailingaboardtheNewOrleansenroutetoHawaiiandhadseenaJN25decrypt(JN25wasa JapaneseNavalcode)onthecaptainsdeskandstolealook.ThedecryptrevealedwhattheUSNavyknewof theJapanesefleetdeploymentandstrategy.TheheadlineinTheChicagoTribunepublishedthreedaysafterthe battlereadNavyHadWordofJapPlantoStrikeatSea.Theywerefoundnotguiltybyclaimingthatpartofthe articlewasfalseandmuchofithadbeenfaked.RooseveltandtheJusticedepartmentwerehamstrunginfully prosecuting the case. In a vigorous trial the government would have had to reveal that it had broken the Japanese Naval code. Protecting that secret was worth far more in protecting the lives of American GIs than bringingtwotraitorstojustice.[112]ThisisthesameChicagoTribunethatafterthewarbeganpropagatingthe liethatRoosevelthadaforewarningoftheattackonPearlHarbor.[27] Congressmen,ElmerHollandofPennsylvaniawentfurtherinchargingthatJosephPatterson,ownerof The NewYorkDailyNews,andEleanorPatterson,ownerofTheWashingtonTimesHerald,wereAmericasnumber1 andnumber2exponentsoftheNazipropagandaline.[26]Perhapsoneofthebiggestmisunderstandingsabout the 1930s and Roosevelt is the lack of knowledge about his opposition. Many Americans believe FDR stood virtuallyunopposed.Nothingcouldbefurtherfromthetruth;whileheenjoyedtremendouspopularityamong theelectorate,hehadmanypowerfulandinfluentialenemiesbothwithinandoutsideofthegovernment.

Part 5: Congressmen and Seditionists

In regard to their enemies, the Roosevelt and Clinton administrations have several similarities. Clinton was plaguedbythevicioussmearsinspiredbyRichardMellonScaife,whileitwasIrneduPonthatchingtheplot against FDR. Both faced a hostile press for the most part. Additionally, both faced bitter opposition from the Republicans. Neither enjoyed bipartisan support in any notable sense of the word. In fact, the Republicans, manyofwhowereopenlyprofascist,opposedeveryeffortofRoosevelttoprepareforthecomingwar. Roosevelt had numerous bitter enemies within Congress, some were openly profascist. The Nazis in Germany sought throughout the 1930s a cause in which they could ignite the native fascists behind and preventtheUSfromenteringthewar.TheAmericanBundwasfirstproposedassuchanelementtowhichall AmericansofGermanextractionwouldrally.TherelationshipoftheAmericanBundwiththeNazisinGermany was more of the lovehate relationship of a jilted lover. Hitlers top priority was to keep the United States neutral and to maintain at least an amicable diplomatic relationship. The Bunds rallies with the bellicose

speechesandstormtrooperswithswastikaarmbandsattackinganyonethatchallengedtheorganizationwas detrimental to the aims of the high officials in Berlin, especially since most Americans regarded the Bund as financedbyandcontrolledbyBerlin. HitlerhadorderedthattheBundshouldreceivenoaidfromGermany.Nevertheless,theBunddidreceive aidfromGermanyasthe Bundeslieter,FritzKuhn,provedtobeadeptatpittingoneNaziorganizationagainst anothertoreceivefunds.HansDieckhoff,theGermanambassador,wasoneoftheNaziswhoviewedtheBund as a hindrance to GermanAmerican relations. Upon instructions from Berlin, Dieckhoff ordered all German citizenstowithdrawfromtheBundasameasuretoimprovediplomaticrelations.Hewasfurioustolearnthat KuhnhadobtainedfundsfromSSLieutenantGeneralWernerLorenzsorganization, Volksdeutsche Mittelstelle. WhiletheBundremainedaforce,itwasenormouslyineffectualasarallyingpointforGermanAmericans.Most GermanAmericans chose to be loyal to their adopted country. Next the Nazis thought the great racial and ethnicdifferencesintheUScouldbeexploitedforthesamepurposeandagainitfailed.AtitspeaktheBund probably consisted of no more than 6500 activists and another 20,000 sympathizers. About 1,500,000 American at the time were German born. The Bund was clearly a failure as a rallying point for German Americans. The one thing the Nazis in Germany did find through which they could unify the opposition was GetRoosevelt.[30] BeforebeginningtolookatthoseCongressmenthatopposedRoosevelt,thewriterwouldliketostatethat hedoesntmeantoimplythatalloppositiontoFDRwasprofascist,butmanyinCongresswereprofascist.Nor will the writer attempt to compose an exhaustive list detailing the fascist connections of all opposing Congressionalmembers,assuchlistsareinvariablyincomplete.Noraresuchlistsneededtorevealtheamount of opposition to FDR or record their sabotaging of the war effort and investigations of the native fascists. However,someCongressmenleftlittledoubtoftheirsupportforfascismbytheirownactions. Perhaps the two greatest enemies that Roosevelt faced in Congress were Republican Senator Gerald Nye from North Dakota and Democratic Congressman Martin Dies from Texas. Both headed Congressional committees vital to preparation for the war that was coming.ThepreviouslymentionedBurtonWheelerofMontanawouldbeaclosethird.All hadtwotraitsincommonwithoneotherandtheotherprofascistmembers.Allofthese Senator Gerald Nye membersofCongresswouldabusetheirfrankingprivileges.Theywouldusetheirfrankto mail out propaganda opposing the war or even propaganda from profascists groups to thousands. The second thing in common was their willful association with profascist groups. NyesrecordintheSenatewasoneofoppositiontoallmajordefensemeasures.Heled the fight against Lend Lease and he openly collaborated with many groups seeking appeasement,regardlessoftheirpoliticalleanings.OntheflooroftheSenatehecharged that the British and not German submarines had sunk the Robin Moor, only later did he Representative withdraw the baseless charge. He initiated a probe of Hollywood, but the investigation Martin Dies failed after he admitted that he had not seen the movies that he had labeled as war propaganda.HearrangedforaBundmemberto airhisdefeatistviewsbeforetheSenateandlaterusedhis Congressionalfranktomailcopiesofthespeechtothousands.AsamemberofCongress,hewasperhapsthe biggestboosterfortheAmericaFirstCommittee.[28]NyealsopraisedthevirulentlyantiSemiticGeraldSmith forpublishingTheCrossandtheFlag.[29] Dies was the first chairman for the new Committee of UnAmerican Activities and set about immediately intosabotagingtheintendeduseofthecommittee,toinvestigatethesubversionactivitiesofprofascistgroups. No betterexample ofthisactofsabotageofthe DiesCommitteecanbe foundthaninthe appointmentofits firstchiefinvestigator,EdwardSullivan.SullivanwasexchangingconfidentialmessageswiththeGermanHigh Command in 1938, the year of his appointment. In fact, Sullivan was high in the ranks of the Ukrainian American fascist groups. He greeted members of the Bund with a Heil Hitler and had denounced FDRs administrationasaJewishCommunistplot.Sullivanhadoneotherendearingtraittotherightwingextremists of the time: he had been a former labor spy for the Railroad Audit and Inspection Company. He was soon replaced with another right wing extremist, J.B. Matthews. Upon leaving the Dies Committee, Sullivan immediatelyrejoinedafascistUkrainiangroup. Instead of investigating proNazis, the committee set about investigating and compiling an extensive blacklist of liberals and antifascists. Throughout the war the committee carried on a vicious attack on the Roosevelt administration, charging that various agencies were replete with Reds and denouncing Americas

fightingallies.Thereadershouldrememberfromearlierinthischapterthe1938electioninMinnesotaandthe requesttoinvestigateCommunistswithintheFarmerLaborParty. Nobetter example oftheopposition Roosevelt facedcanbefoundthaninthe establishment ofthedraft. Nye led the fight against the draft, and greatly reduced what FDR had envisioned. Originally Roosevelt had planned on two years of universal service for all Americans, both men and women. Service would not have beennecessaryinthearmedforcesalone,butthroughacombinationofallgovernmentagencies.Tobefair,the support for the draft was a bipartisan effort, as was the opposition to it. The most opposition came from Congressional members of the Midwest and high plains states. The bill passed on September 16, 1940, authorizing the draft for one year only. The following year the bill to extend the draft passed the House by a onevote margin. There were 182 Democrats and 21 Republicans voting in favor of extending the draft and 65 Democrats and 133 Republicans voting againstthedraft. There is no better way to establish the fascist nature of many of these Congressmen than quoting them in their own words. One such Congressman and Steuben Society memberwasRepublicanHousememberJohnSchafer fromWisconsin.HisCongressional record was one of complete opposition to any defense measure. In speaking with Representative John Schafer investigative reporter, Carlson, posing as a profascist, Schafer was quoted as follows talkingaboutarevolutionagainstdemocracy: TheBloodykind.TherewillbepurgesandRooseveltwillbecleanedrightofftheearth alongwiththeJews.Wellhaveamilitarydictatorshiptosavethecountry.[31] Schaferleaveslittledoubtastohisfeelingsaboutdemocracyinthequoteabove;another Senator,RepublicanRufusHolmanfromOregon,openlypraisedHitleronthefloorofthe Senate. The small excerpt below from the speech leaves no real doubt as to his proNazi views. Idoubtiftherightisallononesideamongthepresentbelligerents.AtleastHitlerhas broken the control of the international bankers and traders over the rewards for the Senator Rufus Holman laborofthecommonpeopleofGermany. Inmyopinionitwouldbeadvantageousifthecontroloftheinternationalbankersand tradersoverthewagesandsavingsandthemanneroflivingofthepeopleofEngland couldbebrokenbytheEnglishpeople,andifthecontroloftheinternationalbankers andtradersoverthewagesandsavingsandthemanneroflivingofthepeopleofthe UnitedStatescouldbebrokenbythepeopleoftheUnitedStates.[32] The reader should note that the code words of international bankers and traders meant Jews.HolmaninsertedseveralproNazipropagandapiecesintotheCongressionalrecord Senator Thomas Schall aswell.NorwasthisthefirsttimeHolmanhadpraisedHitler.AsOregonsStateTreasurer, he had praised Hitlers sterilization program resulting in the amendment of Oregons sodomy law in 1935 to include all moral degenerates and sexual perverts whether they had committed a crime or not. Oregon at the time used castration rather than vasectomy.[33] RepublicanSenatorThomasSchallfromMinnesotaplacedmaterialfromJamesTruein the Congressional record. True was a notorious Jew baiter and inventor of the infamous KikeKiller,anightstick. Republican RepresentativeLouisMcFaddenofPennsylvania was anotherCongressmanthatsupportedTrue.McFaddenbelievedintheinternationalJewish Representative Louis McFadden conspiracy.McFaddenbelievedtheJewswerenotsufferingfrompersecutioninGermany under Hitler. He was virulent in his opposition to Roosevelts plan to allow 200,000 to immigratetotheUS.HebelievedthosethatsupportedsuchaplanwerelikeSecretaryof Labor,FrancesPerkins,andpartoftheconspiracybytheJewishcontrolledadministration. McFaddenbelievedPerkinsrealnamewasthatofaRussianJewess,MatildaWutski.[115] Another of the profascists was Senator Robert Reynolds, a Democrat from North Carolina,whoalsoopenlypraisedHitlerontheflooroftheSenate.Reynoldswasaresident ofAsheville,thehomeof PellysSilverShirts.Reynoldsspokeglowinglyaboutfascismas thefollowingquoteshows.
Senator Robert Rice Reynolds

Thedictatorsaredoingwhatisbestfortheirpeople.Isayitishightimewefoundouthowtheyare doingit,andwhytheyareprogressingsorapidly.Hitlerhassolvedtheunemploymentproblem.There isnounemploymentinItaly.HitlerandMussolinihaveadatewithdestiny.Itisfoolishtoopposethem sowhynotplayballwiththem.[35] ReynoldswasafriendwithGeraldWinrodandAmericanNaziGeorgeDeatherage.Reynolds,withthebacking of Burton Wheeler, rose to become chairman of the Senate Committee on Military Affairs. In April 1940, Reynolds provided the Nazi agent, Simon Koedel with detailed confidential information about Frances ports.[76]ThetransferofsuchinformationtoNaziagentswasnothingshortoftreason. BesidesusingtheSenatefloorasasoundingboardforFalangistpropaganda,heisperhapsbetterknown for his antialien views. Reynolds believed that aliens were at the heart of all of Americas problems and organizedaposseofyouthsfromagetentoeighteencalledtheBorderPatroltocatchaliencrooks. ReynoldsmaintainedhispositionintheSenateuntil1944.BythentheDemocraticPartyhadhadenoughof thefascistinfiltratorandchoseanotherpopularfigureinNorthCarolinatoseekReynoldsseatintheprimary. Ratherthanfacecertaindefeat,Reynoldsretired. Another of the fascist supporters in Congress was the Democrat Senator Rush Holt fromWestVirginia.Holtwastheyoungestpersoneverelectedtothesenate.Hehadwon election in 1934 as a backer of the common man and the New Deal. Shortly after being elected, Holt began criticizing the New Deal, eventually becoming one of the harshest critics of FDR. Before the end of his term, he was an outright advocate of fascism. In the 1940primary,Holtfacedtwootherchallengersforhisseatafterlosingsupportfromthe Senator Rush Holt DemocratNationalCommittee.Hefinishedthirdintheprimary.[88] ThetwoexamplesofHoltandReynoldsprovideastarkdifferencebetweentheDemocratandRepublican parties. The Democrat Party would attempt to purge the fascists from their ranks in the primary, unlike the Republican Party which made no attempt to purge fascists from their ranks, and even encouraged the Nazis withantiSemiticcampaigns. ContrastwiththepopularopinionthatthebombingofPearlHarborunitedthecountry fullycanbefoundintheJudasspeechofClareHoffman,RepublicanCongressmanfrom Michigan.OnJanuary27,1942,withthememoryofPearlHarborfreshineveryonesmind, HoffmandeliveredaviciousattackonRooseveltinanaddresstotheHouseentitledDont HaulDowntheStarsandStripes,betterknownasRooseveltisJudas.Hoffman,longan outspokencriticofRooseveltandamemberoftheImpeachRooseveltCommittee,ordered 145,000 copies of his speech and, using his Congressional frank, mailed out 105,000 copies.[34] The best evidence linking several members of Congress with ties to the Nazis comes Representative fromtheinvestigationbytheDepartmentofJusticethatleadtothemuchbungledsedition Clare Hoffman trial of 1944, stemming from the grand jury investigation. The writer wishes to express there is a fine line betweenfreespeechandsedition.Simpleoppositiontowarisnotsedition,butacceptingfundsfromtheenemy to conduct espionage or to distribute propaganda clearly steps over the line of free speech and becomes sedition. The grand jury investigations conducted in 1940 produced an abundance of evidence that several Congressmen received funds from Nazi sources. Most people today are still unaware that the sedition trial stemmedfromthreeseparategrandjuryinvestigations.ThespecialassistanttotheAttorneyGeneral,William Maloney, convened the first grand jury investigation. That investigation concluded on July 21, 1942, and indicted 28 individuals, and listed thirty publications and twentysix organizations. Under intense pressure fromseveralsides,includingintensepressurefromSenatorBurtonWheeler,Maloneywas eventuallyremovedfromtheinvestigation.Wheelerusedhispositionaschairmanofthe SenateJudiciaryCommitteetoexertextremepressuresonAttorneyGeneralBiddleforthe removalofMaloney. Several of the proNazi Congressmen were called to testify before Maloneys grand jury. One of the suspected Congressmen was Ernest Lundeen, the populist Senator from Minnesota.HooverhadaFBIagenttailingLundeen.OnAugust31,1940Lundeenandthe FBIagenttailinghimdiedinaplanecrash.Lundeenssecretary,HarrietJohnson,reported onthedayofhisdeaththattheCongressmanhadarrivedunusuallyearlyandwasclearly distraught. She had asked the Congressman what was troubling him and he had replied Senator Ernest Lundeen

thathehadgonetoofarandtherewasnoturningback.ShesensedhewasreferringtohisNaziconnections.He alsoinformedherthathehadtoflybacktoMinneapolisatoncetoseehiswife,despitethestorm. JohnsonthendroveLundeentotheairport,andreportedthatseveraltimeshebegantocry.FBIagentJ.J. Pasci had followed the pair to the airport and boarded the same plane. Johnson reported that after Lundeen boardedtheplaneshesawseveralpassengersinastruggle,withLundeenapparentlyalsoengagedinit.The pilotlostcontroloftheplaneinthestormandcrashedjustthirtysixmileswestofthecapitol. ThedayafterhisdeathJohnsonopenedtheCongressmanslockedfilesanddiscoveredmanydocuments, which revealed that Lundeen was in the direct pay of the Nazis. The next day Lundeens widow arrived and asked by name for the Viereck files. Harriet Johnson then reported it to the FBI and the FBI forwarded it to Maloney. MaloneyonlyhadapartialviewoftheNaziconnections.HehaddeterminedthatsomesevenSenatorsand thirteenRepresentativeshadbeenbribed,oractedincollusionwithNaziGermany,aidingandabettingthem, andanadditionalfourthatwereguiltyofcollaboration.TheseCongressmenhadusedtheirfrankingprivileges to distribute isolationist speeches many written or edited by Viereck.[72] Those that Maloney listed as collaborators with Viereck were Stephen Day (Republican from Illinois), Hamilton Fish (Republican, New York), Rush Holt (Democrat, West Virginia) and Ernest Lundeen (FarmerLabor, Minnesota). The remaining twentyarelistedbelow. JohnAlexander Republican Minnesota Republican Missouri PhilipBennett Republican NorthDakota UsherBurdick Idaho WorthClark Democrat CliffClevenger Republican Ohio HenryDworshak Republican Idaho ClareHoffman Republican Michigan Colorado EdwinJohnson Democrat BartellJonlman Republican Michigan HaroldKnutson Republican Minnesota RobertLaFollette Republican Wisconsin GeraldNye Republican NorthDakota North Carolina RobertReynolds Democrat PaulShafer Republican Michigan HenrikShipstead Republican Minnesota WilliamStratton Republican Illinois Ohio MartinSweeney Democrat JacobThorkelson Republican Montana GeorgeTinkham Republican Massachusetts Montana[102] BurtonWheeler Democrat The list of congressmen that Maloney listed as dupes of the Nazis is interesting in several aspects. First, membersoftheRepublicanPartydominatethelist.Thisshouldnotbesurprisingfromtheevidencepresented earlierinthechapterofthenationalandstateleadershipoftheRepublicanPartyemployingknownNazisin election campaigns. The reader should also note that in the case of two of the Democrats listed, Holt and Reynolds,theDemocraticPartylaunchedactivecampaignstodefeatthemintheprimaries.Holtwasdefeated inhisreelectionprimarycampaign,whileReynolds,facingcertaindefeat,chosenottorun. Secondly,mostof these congressmencame fromtheupper midwest,particularlythestatesof Minnesota andMichigan.BothMinnesotaandMichiganhadstrongantiunionmovementsandwerehometoseveralofthe ministriesthatpreachedtheNazilineofantiSemitism.ThereadershouldnotethattheTeutoniaAssociation wasfoundedinDetroitonOctober12,1924.TheTeutoniaAssociationwassomewhat ofaforerunnerofthe AmericanBund. Viereck was the highest Nazi agent arrested during the war and had been arrested as a German agent duringWWI.ViereckwasaVagentor Vertauensleute(confidentialagent)fortheAbwehr.Followingthewar oneoftheAbwehrsVagentsexposedwasWilliamRhodesDavis,theTexasoilman.[100]Verylittleisknown about Viereck and the network of Vagents, as the Nazis destroyed most of their files. Most known Vagents appearedtobeengagedinspreadingpropaganda.

WhatisknownwithcertaintyisViereckreceivedoverahalfmilliondollarsfromthechargedaffairesofthe German embassy, Thomsen, to bribe, corrupt and undermine members of Congress and to distribute propaganda.[98]ViereckreceivedadditionalfundsfromHansenSturm,thechairmanoftheRomanoffCaviar Company,andfromGeneralAnilineandFilm.ThomsenhadvaluablefriendsinhighplacesincludingAssistant SecretaryofState,BreckinridgeLong,andAmbassadortoFrance,WilliamBullitt.Longhadpubliclyendorsed MussolinisinvasionofEthiopia. Lundeen was secretly proNazi and received money not only directly from Viereck, but also from the German Board of Trade and the Steuben Society. Maloney had determined that other Congressmen had acceptedNazimoneyindealstopublishbooksthroughthenotoriousFlandersHall,afascistpublisherclosely associated with Viereck. Among those that had made deals with Flanders Hall were Burton Wheeler of Montana,GeraldNyeofNorthDakota,JenningsRandolphandRushHoltofWestVirginiaandWilliamStratton of Illinois. On June 13, 1940 Thomsen reported to Germany that it was necessary to take literary countermeasuresagainstRoosevelt.InthisplanThomsenmadecontactwithNewYorkliteraryagentWilliam Lengelandproposedaseriesoffivebooks:onebyTheodoreDreiserwarningofthedangersofintervention, anotherbySylviaPorterfromawomanspointofviewastowhatthewarwouldmean.Theotherthreewereto be written by journalist George Creel, novelist Kathleen Norris and publicist Burton Rascoe. Pearl Harbor canceledthedealbeforeanyofthebookswerewritten. In September 1941, Maloney convened a grand jury to investigate the CongressNazi connections. The resultsofthegrandjurywereclassifiedforyearslater.Viereckwasindicted,aswasGeorgeHillthemailroom aide to Hamilton Fish. Maloney was deeply annoyed that he couldnt get indictments against any of the Congressmen.Onceagainitwasthesmallexpendablepeopleprosecutedwhilethepowersonthethronewere protected.[73] Many of the Congressmen that had been subpoenaed managed to avoid testifying until after PearlHarbor;withthenationatwarinterestwasdirectedtowardsthewareffortandprosecutionofthepro fascistssufferedfromneglect. Maloney successfully prosecuted George Hill, the mail room aide to Congressman Fish, and was in the process of preparing for Vierecks trial when he was suddenly summoned to the office of Judge Allen Goldsborough. Goldsborough informed Maloney he would be the presiding judge at the upcoming trial and Maloneywouldonlyhavetwoweekstopreparefortheopeningofthetrial.Maloneywasfuriousandprotested over the lack of preparation time. Maloney also objected to Goldsboroughs handling of the case, as Goldsborough was associated with the extreme elements of the right wing. Maloney was successful in his efforts to remove Goldsborough as the presiding judge after swearing out an affidavit giving details of the meetingandhowVierecksattorney,DanielColahan,hadconstantlydemandedthatGoldsboroughhandlethe case. MaloneysuccessfullyprosecutedViereckscasewithViereckreceivingaprisontermoftwotosixyears.On March 20 Judge Letts cut Hills sentence in half. One year later Vierecks conviction was reversed by the SupremeCourt.BothheandHillwerenowfree. Although no charges were brought against the proNazi Congressmen, their plot had beenexposed.Evenaftertheirexposure,theycontinuedtousetheirfrankingprivilegesto distributeproNazipropaganda.AlthoughafterPearlHarboritwasnotpossibleforthemto dosodirectly,theydidsothroughsuchorganizationsastheRepublicanNationalistRevival CommitteeandtheNationalEconomicCouncil.Anotheroftheirchoicesfordistributionwas Western Voice, edited by a fundamentalist minister, Harvey Springer, from Englewood, Colorado,whopraisedthefascistGeraldSmithasarealmanofChristanddenouncedthe FederalCouncilofChurchesasbeingdominatedbycommunists.Springerwasalsoavicious antiSemitic,butstillishighlyregardedasatheologianinBaptistcircles. OneofthemorestrikingaspectsoffascismintheUnitedStateswastheremovalfrom Harvey Springer office of such people as Maloney. Maloney was relentless in his pursuit of native fascists. After obtaining indictments on July 21, 1942 on 28 individuals, Maloney was depicted as a stooge of the International Jewish bankers by Joe Kamp, a proNazi propagandist. Senator Burton Wheeler demanded that AttorneyGeneralBiddleremoveMaloney.WhenBiddleobjectedtosuchpressurefromtheSenator,Wheeler announced he would blow the whistle on the Department of Justice. Its unknown what Wheeler had on the departmentofJustice;perhapshehadunearthedRooseveltsplantobringthetraitorstojusticeafterthewar usingtheBritishsecretservice.Whateveritwas,BiddleimmediatelydismissedMaloneyandmadeitclearhe couldnotactevenasaconsultanttohissuccessor.[106]

Withoutexceptionthosethatsoughttoexposethefascistsandbringthemtotrialwere forcedfromofficeorotherwisediscredited.GeneralButlerwasmockedandlaughedatin thepressforexposingthefascistplotagainstRooseveltinasuccessfulefforttodiscredit thegoodgeneralandtheplot.Whilethosethatstoodfirmlyopposedtothefascistswere removed, many of the openly profascists continued to rise in power. Maloney was ultimately removed from the case and replaced by O. John Rogge, a capable and able prosecutor.Roggewouldprosecutetheseditiontrialin1944. O. John Rogge What many people even today are unaware of was that there were three separate grand jury indictments. Although the third grand jury indictment listed more organizations and publications forseditionthanthefirsttwoindictments,thesignificantfactorwasthenamesitdropped.Thefollowingisa listoftheorganizationsdroppedinthethirdindictment: TheAmericaFirstCommittee NationalCommitteetoKeepAmericaOutofForeignWars(agroupassociatedwithFish) CitizensCommitteetoKeepAmericaOutofWar MakeEuropePayWarDebts(aViereckCommittee) WarDebtsDefenseCommittee(aViereckCommittee) CoalitionofPatrioticSocieties CrusadingMothersofAmerica CitizensNoForeignWarCoalition ConstitutionalEducationLeague We,theMothersUnited We,theMothers,MobilizeforAmerica[103] Additionally,thoseindictedbythethreedifferentgrandjuriesdifferedsignificantly. Indictmentsreturnedon July21,1942 January4,1943 January3,1944 CourtAsher CourtAsher *** DavidJ.Baxter DavidJ.Baxter DavidJ.Baxter OttoBrennermann OttoBrennermann *** H.V.Broenstrupp H.V.Broenstrupp H.V.Broenstrupp OscarBrumback OscarBrumback *** PrescottF.Dennett PrescottF.Dennett PrescottF.Dennett C.LeonDeAryan C.LeonDeAryan *** HudsondePriest *** HudsondePriest HansDiehel HansDiehel HansDiehel ElizabethDilling ElizabethDilling ElizabethDilling RobertE.Edmondson RobertE.Edmondson RobertE.Edmondson ElmerJ.Garner ElmerJ.Garner ElmerJ.Garner JamesF.Garner JamesF.Garner *** WilliamGriffin WilliamGriffin *** CharlesR.Hudson CharlesR.Hudson CharlesR.Hudson EllisO.Jones EllisO.Jones EllisO.Jones WilliamKullgren WilliamKullgren *** WilliamR.Lyman,Jr. WilliamR.Lyman,Jr. WilliamR.Lyman,Jr. DonaldMcDaniel DonaldMcDaniel *** RobertNoble RobertNoble RobertNoble WilliamD.Pelly WilliamD.Pelly WilliamD.Pelly EugeneSanctuary EugeneSanctuary EugeneSanctuary HermanM.Schwinn HermanM.Schwinn HermanM.Schwinn EdwardJ.Smythe EdwardJ.Smythe EdwardJ.Smythe RalphTownsend RalphTownsend *** JamesC.True JamesC.True JamesC.True GeorgeS.Viereck GeorgeS.Viereck GeorgeS.Viereck GeraldB.Winrod GeraldB.Winrod GeraldB.Winrod *** FrankW.Clark FrankW.Clark

Indictmentsreturnedon July21,1942 January4,1943 January3,1944 *** G.E.Deatherage G.E.Deatherage *** FrankK.Fernenx FrankK.Fernenx *** NewYorkEnquirer *** *** *** P.deShishmareff *** LoisdeLafayetteWashborn Lois deLafayetteWashborn *** *** GarlandAlderman *** *** LawrenceDennis *** *** ErnestF.Elmhurst *** *** AugustKlapprott *** *** JoeE.McWilliams *** *** E.J.ParkerSage *** *** PeterSahrenberg[103] The one common thread among the organizations droppedwas the association of certain Congressmen with the organizations or the publications.[103] Several of the Congressmen listed above, including Fish and Wheeler, along with many prominent business leaders were closely associated with the America First Committee. The National Committee to Keep America Out of Foreign Wars was another group closely associated with Fish. The two groups associated with Viereck would have opened charges to many of the Congressmenlistedabove.WheeleraschairmanontheSenateJudiciarycommitteewasinapositiontobring strongpressureontheAttorneyGeneral,Biddle.Atrialwouldhaveexposedallthoseconnectedtoadditional chargesofsedition.Thebigfascisthadtobeprotectedandasaresult,certainorganizationscloselylinkedto manyoftheCongressmenweredropped. TheendtotheprosecutionoftheseditionistandNazicollaboratorscamewiththedeathofJudgeEicheron November30,1944inthemidstoftheseditiontrial.Thenextmorningthenewjudgedeclaredamistrial.The trialhadbeguninFebruarywiththedefendantsdelayinganddisruptingthetrialfromtheverybeginning. Rogge,likeMaloney,wasrelentlessinhispursuitofNazisupporters.Inthespringof1946,Roggereceived information from US Army Captain Sam Harris, a member of the prosecuting team at Nuremberg, that there wasindisputableevidencelinkingtheformerNazigovernmentandcertainleadingcitizensoftheUnitedStates. On April 4 Attorney General Tom Clark allowed Rogge and four aides to fly to Germany. Over the course of eleven weeks Rogge and his team questioned sixtysix people, including Goring and Ribbentrop. He also interrogateddozensoftopNaziofficials,includingfriendsofWilliamDavis.Roggesfindingswereconclusive andexplosive.Roggesownwordsbestsumuphisfindings. Our investigation showed us that we had completely underestimated the scope and scale of Nazi activities in the United States. When I went to Germany I felt that the biggest threat to American democracyemanatedfromthemachinationsofpersonslikethedefendantsintheseditiontrial(i.e.the littlefascistcrackpots).Ifoundthatafarmoredangerousthreatlayintheinnerconnectionbetween GermanandAmericanindustrialists,andthatsomeofthebestknownnamesinAmericawereinvolved inNaziintrigue.[104] Upon returning to the United States, Rogge started preparing a comprehensive report for Attorney General Clark. In July Rogge submitted to Clark the first draft of his report. Clark was clearly distraught over the references linking business and political leaders with the deposed Nazi government. Clark specifically mentionedthelinktoSenatorBurtonWheeler.WheelerwasafriendofClark.AsRoggecontinuedtoworkon hisreport,hewasapproachedbyanaideofClarkaskingthatheomitallthenamesofAmericanpoliticiansand businessmen.Roggerefused,knowingthereportwouldneverbepublished. On September 17, 1946 Rogge submitted the final draft of his report. The report was explosive and recommended that the Department of Justice open an investigation of collaboration between American and Nazi industrialists before the war. Not surprisingly, Clark refused to publish the report. However, to Rogges surprise,withindaysportionsofhisreportwerereportedinDrewPearsonscolumn. Shortlyaftersubmittinghisfinalreport,Roggewasgrantedatwoweekleaveofabsencetomakealecture touronthefascistmenace.ClarkwasadamantthatRoggeshouldnotmentionhisreport.Speakingbeforean audience at Swarthmore College, Rogge revealed some of his reports discoveries. He stated that Goring and Ribbentrop had told him that Joe L. Lewis, William Rhodes Davis, Senator Burton Wheeler, former Vice

PresidentJamesGarner,formerPostmasterGeneralJamesFarleyandformerPresidentHerbertHooverhadall conspiredwiththeNazistodefeatRooseveltinthe1940electionandtokeeptheUnitedStatesoutofthewar. OnOctober25,RoggedepartedfromNewYorkonaflightboundforSeattle.Duetobadweather,theflight made an unscheduled stop at Spokane. A FBI agent met Rogge there by the name of Mr. Savage. He handed RoggeaterseletterfromTomClarknotifyingRoggethathehadbeendismissed.OnOctober24,thedaybefore Roggewasfired,SenatorWheelerhadmetwithPresidentTrumandemandingthedismissalofRogge.Wheeler wasconcernedRoggeschargeswouldderailhishopesforanappointmenttothefederalbench.[105]Wheeler neverreceivedtheappointmenttothefederalbench. Rogge,likeMaloney,sufferedthesamefateofdismissalbecauseoftheirstaunchoppositiontofascism.The fascists within the government were too strong to allow an investigation into their treasonous actions. Ironically at the time of Rogges dismissal, FBI Director J. Edgar Hoover was stomping around the country givingspeechesthatdenouncedAmericansforbeingcommunistwithlittleornoevidencetobackthecharges. Perhapsthemostbrazenexampleofprofascistsescapingjusticecameaftertheendof the war. Following the war there was little effort in prosecuting traitors or Nazi war criminals as the following example shows. Martin Monti was one of Father Coughlins followers who got drafted. On October 13, 1944, while serving in Italy he stole a P38 aircraft and flew it across German lines, landing in Milan. He gave himself up to the Germansandofferedhisassistancetothem.TheGermanstransferredhimtoBerlinwhere he broadcasted proNazi propaganda, often quoting Father Coughlin or reading articles writtenbyhim.Followingtheendofthewar,hewascourtmartialedfordesertionandtheft Martin Monti of the plane. The normal sentence in such cases would have been death. Monti however, receivedonlya15yearsuspendedsentence.Montireenlistedasaprivateandby1946hehadrisentotherank ofsergeant.[74]ThealliedarmieshadwonthewarinEuropeagainstfascism,buttheUSwaslosingthewarat homeagainstfascism.Intheirrabidhatredofcommunism,thenativefascistswerenowplottingthecoldwar andeveryonewasneededtofightthenewmenaceandjusticecouldbesacrificed.

Part 6: The Pro-Nazis of the 1930s

The remainder of this chapter will look at the actions of a few of the profascist groups today and trace the connections from those groups to many of the present day far right wing groups. After the fall of France, a speech by Lindbergh aroused the fiery Secretary of Interior, Harold Ickes, to form his own investigation committee.IckescoordinatedaprivateinvestigationintoexposingNazipropaganda.Thegroupwasheadedby T.H. Tetens, also the author of two of the books cited in the bibliography. The three man task force soon presentedIckeswithshockingevidence.TheNazisinGermanywerespendingmoneyonthebehalfofthefar right groups within the United States. Recipients of the German funds included the Christian Mobilizers, the Silver Shirts, Father Coughlin and others. Ickes presented the evidence to the Attorney General and the next year such groups found themselves subjects of investigations. FDR knew of Ickes plan and encouraged selectiveleakstothemediaandtotheFBI.[116] GeorgeEgglestonprovidesagoodexampleoffarrightgroupsinAmericareceivingaidfromtheNazis.In 1941, Eggleston began publishing Scribners Commentator, a mass circulated magazine. The magazine was secretlysubsidizedfromtheGermanEmbassy.Egglestonhadaccesstolaunderedfundsfromtheestateofthe Charles Payson, a millionaire admirer of Lindbergh. Eggleston located his publishing headquarters at Lake Geneva,NewYork.TherehereceivedinstructionsfromGermanyviashortwaveradioforasecondpublication he undertook, The Herald. The Herald was even more proNazi and smacked of Goebbelslike propaganda. Thomsen,chargedaffairesoftheGermanEmbassywasimpressedwiththeHeraldandstrivedtoplaceitinthe handsofAmericanservicemen.[118] FollowingthebombingofPearlonDecember12,1941,theAmericaFirstCommitteeofficiallydisbanded. However, on December 17, 1941, meeting in the home of Sibley Webster, a wealthy Wall Street broker, a numberofkeyAmericaFirstmembers,includingCharlesLindbergh,reformedunderthenewnameAmericans for Peace. The following quote from that meeting came from Horace Haase, a former America Firster, and leavesnodoubtaboutthefutureactivitiesofthosegathered. ItisobviouslynecessaryfortheleadersoftheAmericaFirstlikeWoodandWebstertokeepquiet.But theorganizationshouldnotbedestroyed.Ihaveneverbeeninthelimelightandhavenothingtolose.I canremainactiveinaquietway.Ishouldliketooffertokeepthefiles.Wemustgetreadyforthenext attackwhichmustbemadeuponthiscommunisticadministration.[41]

NorwasHaasealoneinhissentiments.FourdaysafterthebombingofPearlHarbor,atameetinginLosAngles of the National Copperheads, a west coast group closely associated with the America First Committee, Ellis Joneswasquoted: TheJapanesehavearighttoHawaii.IwouldratherbeinthiswaronthesideofGermanythanonthe sideoftheBritish.[42] Thus,beganthebattleforthemindsofthepeopleassimilarstatementsalongwiththeoftenrepeatedcryfor the impeachment of Roosevelt were repeated across America. Many of the followers, with their sensibilities firmly offended, deserted the profascist groups in droves. However, the hardcore fascists and their leaders simply began a vicious whispering campaign to destroy the morale of both the soldiers and the public. Such commentsas:Ourarmedforcesareweak;thecostofthewarwillbankruptthenation;theChineseandBritish will make a separate peace with Japan and Germany; Stalin is getting too strong and Bolshevism will sweep overEurope,wereoftenoverheardandrepeatedinthiscampaignforthepeoplesminds. TheprofascistnewspaperchainswentintooverdriveafterthebombingofPearlHarborasthefollowing quotesindicate: This great war seems to be in the hands of inexperienced civilians who have proven uniformly unsuccessful in managing the countrys affairs in time of peace, and are now displaying a more dangerousincompetenceintimeofwar. HearstsNewYorkJournalAmericanMarch17,1942. OfcourseRussiaisnotafullpartneroftheUnitedNations.SheisasemipartneroftheAxis. HearstsNewYorkJournalAmericanMarch17,1942[60] Starting in February 1942, the proNazis had their hopes dashed. There was no panic in America, just anger directed at the Axis nations and their conspirators and fifth column agents inside the country. Beginning in February,severalunregisteredagentsforGermanywerearrestedandsenttoprison,themostnotablebeing Laura Ingalls. By April Father Coughlins Social Justice and William Pellys The Galilean newsletters were bannedfromthemailduetotheirseditiouscontent.SpecialgrandjurieswerebeingconvenedacrossAmerica toinvestigatepropagandaandseditiousacts. The leaders of many of the profascist groups simply went underground and began a nasty whispering campaigninthehopesofdestroyingthemoraleofboththesoldiersandthepublic,awhisperingcampaignnot unlike the one that the Republican leadership unleashed against Senator John McCain in his bid for the presidentialnominationin2000attheurgingoftheGeorgeBush,Jr.campaign.Therumorsviciouslyattacked McCain for a bad temper and suggested that the former war hero was mentally unfit, due to his capture by NorthVietnam.SomeoftheattackswentsofarastoclaimMcCainwasaManchuriancandidateofhisformer captors.ThereadershouldnotethatthoseaccusingMcCainarethechickenhawks,includingGeorgeBush,Jr., whosatouttheVietnamWarintheTexasNationalGuardsguardingtheskiesofTexasthankstohisdaddys politicalinfluence. The opposition to the war came to a climax on July 23, 1942 when the Department of Justice indicted twentyseven men and one woman for sedition.[43] The entire legal process was poorly managed and badly bungled. Some were found guilty and sentenced to jail terms, such as Pelly (in another trial); others such as Dilling were found innocent.[44] Reviewing the list of those indicted reveals that none of the real leaders or financial backers were indicted. Instead, those indicted were rather low level leaders or nothing more than noisygadflies.TheonlytrialthateverchargedanyoftherealleaderswasthepreviouslymentionedtrialofThe Chicago Tribune.Aftersixtyyears,onlyafewofthenamesofthoseindictedwarrantmorethanafootnotein history. One of those indicted, William Dudley Pelly and his Silver Shirts, warrants a closer look in studying the evolutionofnativefascismintheUnitedStates.PellyfoundedtheSilverShirtsonJanuary31,1933inAsheville, NorthCarolina,thedayHitlertookpowerinGermany,describingthegroupasaChristianmilitia.Throughout the30sandupuntilhisindictmentforsedition,theSilverShirtswereoneofthelargestproNazigroupsand oneofthemoreviolent.PellywasthesonofaMethodistministerwhobelievedthatJewswerethechildrenof Satan.[47] Pellys intense hate of Jews came from his time as a missionary traveling with the American ExpeditionForceinRussiaduringthelastphaseoftheWWI.TherehelearnedfromtheWhiteRussiansabitter hate for the Jews. This hatred of Jews was reinforced when Pelly was fired as a screenwriter for Hollywood moguls.

DuetotheirextremeracistandantiSemiticviews,theSilverShirtsbecamepopularinareasofthecountry where the Klan was strong in the 1920s. They were particularly strong in the Pacific Northwest and largely tookoverthevoidleftaftertheKlansplitapartinOregonandWashingtoninthe1920s.TheSilverShirtswere openlyproHitlerandformedallianceswithboththeAmericanBundandtheKlan. IfitwerenotfortheirlingeringinfluenceontheevolutionoffascistgroupsinAmerica, they would be equally as forgettable as any of the other 700 plus fascist groups from the 1930s. However, many of todays far right groups can trace their ancestry directly to the SilverShirts.ThePosseComitatusfounder,HenryLamontBeach,wasaleaderoftheSilver Shirts in Oregon. Likewise, Richard Butler, the founder of the Aryan Nations in Hayden Lake,Idaho,wasalsoaSilverShirteraswellasaformerKlansmen.[45]Herewehavedirect linksbetweentodaysrightwingandthepastfascistgroupsofthe30s.Butlerstillusesthe NazisaluteatHaydenLakeyearsaftertheendofthewar.[55] Richard Butler GeraldL.K.Smith,oneofthefoundersoftodaysChristianIdentityreligion,wasperhaps the most influential former Silver Shirt member as the Identity religion provides the commonbondbetweenmayoftherightwingextremistgroupstoday.[46]Itisthereligion thatiscommontothePosse,theAryannationsandmanyofthemilitiasandKlangroups.It is the intolerant and blinding hatred of minorities of the religious fundamentalists that bindsthefascistsgroupsofthe1930stotodaysrightwingextremistsgroups.Muchofthe hatetodaycanbedirectlytracedbacktothe1930sministriesofhate.Therootsoftodays Gerald L.K. Smith teleevangelistscanbetracedbacktothe1930s.Themediamayhavechangedfromradio totelevision,buttheformatisunchangedfromthestyleFatherCoughlinusedinthe1930s. Hisradiobroadcastsreachedmillions,asdidhisfollowersinhisorganizations.Hissermons were filled with virulent hate of Jews, communism and Roosevelt. Pat Robertsons, Jerry Falwellsoranyoftheotherteleevangelistsprogramsfollowthesameformattoday.Only today they carefully disguise their hate of Jews and substitute hate of gays, welfare (read that as the poor), abortion, unions or any other and liberal program designed to help the poororworkingmanand,ofcourse,ClintonhasreplacedRooseveltasanobjectfortheir Father Charles scorn. Coughlin Coughlin was probably the most influential of all the preachers during the 30s. He certainlycommandedthelargestfollowing,andwassomewhatacentralfigureorunifierof thevariousgroups.OnesuchgroupoffollowerswastheChristianCrusadewhichhadasits goal the establishment of a socalled Christian government modeled upon the corporate clerical state of Franco.[48] Other groups associated with Coughlin were the Christian Front, which was his primary group, many of the various mothers movement groups, as well as the America First Committee. Politically Coughlin opposed any aid to Britain, the draft and any bill that would be a deterrent to Germany and Hitler. Often times his oppositionborderedonsedition,althoughhewasneverchargedwithsedition.Hisministry Dr. Wesley Swift ofhateforthemostpartendedwiththebombingofPearlHarbor. Threeotherministersofhatefromthisperioddeservespecialmentionbeforemoving on: Gerald Smith, Gerald Winrod and Wesley Swift. Swift had direct connections with the Nazis and is another that is credited with leading the Identity movement. He also was a member of the Klan. Billy Hargis, who gained fame in the 1950s and early 60s, was an associateofWinrod. Both Winrod and Smith were disciples of Coughlin. Winrod came close to winning election as a senator from Kansas and at the time was known as the Jayhawk Nazi. Smith Billy James Hargis was closely associated with Huey Long and after his death attempted to take over Longs politicalmachine.SmithwasalsoamemberofPellysSilverShirts. Although Coughlin was the most widely recognized religious figure from the Nazi movement during the 30s,itisthiswritersopinionthatGeraldK.Smithwasthe mostinfluentialinthelongterm.Smithwaswell knowninthe1930s,buthedidnothaveaslargeofafollowingasCoughlin,however,Smithsinfluencecanbe seeninmanyoftherightwinggroupstoday.Thegreatunifieramongtherightwinggroupstodayisreligion, justasitwasinthe30s;manyoftodaysrightwingextremistgroupsbelieveintheIdentityreligion,areligion basedonhateofJews.ThereaderisreferredtoalaterchapterwhichwilldetailtheIdentityreligion.Smithis

largelycreditedinfoundingtheIdentityreligion,thusSmithsinfluenceextendstotoday,whileCoughlinsdied withthebombingofPearlHarbor,eventhoughCoughlinhadmorefollowersatthetime. SmithwasanassistantinCoughlinsChristianFrontandanassociateofHenryFord.Hewasanordained ministerintheDisciplesofChristChurchandwasavirulentantiSemitic,gainingnotorietybystagingaPassion PlayinLouisiana.ButunlikeCoughlin,whodisappearedfromthenationalscenebytheendofthewar,Smith went on to found Christian Defense League (CDL), somewhat of a survivalist offshoot of the Klan. The CDLs publicationTheCrossandtheFlagwasamongthefirstpamphletstousetheIdentityreligion. One of Smiths assistants in his Christian AntiCommunist Crusade was Dr. Wesley Swift, who is widely regarded as one of the icons of the Identity religion today. Swift was one of the first to assert a need for paramilitarygroups,andformedtheracistCaliforniaRangersgroup,acoregroupfromtheMinutemen.Note theMinutemenisoneofthegroupsdetailedinalaterchapter.SwiftalsofoundedtheChurchofJesusChrist Christianin1946.Later,afterButlerandSwifthadafallingout,ButlermovedhisministryofhatetoHayden Lake,Idaho,whereitisformsthebasisofthemanyvariedracistgroupstheresuchastheAryanNationsand theformerOrder. An associate of Swifts was Colonel William Gale. Gale ran for Governor of California in 1958 on a pro segregationticketandwasaformeraidetoMacArthur.HealsofoundedachurchbasedontheIdentityreligion, theMinistryofChrist.Galewasalsoacofounder(theotherfounderwasaleaderintheproNaziSilverShirts) ofthePosseComitatus,anothergroupthatisdetailedinalaterchapter.BothSwiftandGalerecruitedRichard Butler,theheadoftheAryanNations.[49] In the eyes of this writer, the clear line of succession or evolution from Smith to the present day leaves SmithasmoreinfluentialthanCoughlin.Thislineofsuccessionalsoestablishesanirrefutablelinkbetweenthe proNazisofthe1930sandthefarrightgroupsoftoday.OnefaultgenerallywithAmericanswhenitcomesto politics is that their memory is too short; they fail to force candidates to run on their past records with disastrous results. The elections of both Nixon and Reagan to the Oval Office are just two examples of such results.ItishopedthatbyexposingthedirectlineageoftodaysrightwingextremistgroupstoproNazigroups thatthepublicwillbegintotakeseriouslythethreatthesegroupsposeforfreedomandliberty. LestthereaderassumethatitwasonlythefringereligioushacksthatwereinvolvedwiththeNazis,thereis theexampleoftheSouthernBaptistminister,M.E.Dodd.DoddwasaresidentofLouisianaandmadeheadlines forattendingthe1934BaptistWorldConventioninBerlin.Doddwasanextremeracist,evenmoreextremein thatsensethanSmith,andpraisedtheNazis.DoddjustifiedHitlersGestapotacticsagainsttheJewsbylinking Jews with communism.[50] He considered the Jews in Germany to be outside agitators, similar to the racial agitators in the south. To be fair, some Baptists did denounce the Nazis, but the Alabama Baptists followed Doddsviews. DoddwasnotmerelyaministerintheBaptistChurch;hewassomewhataleaderoftheSouthernBaptists. He was also the first Baptist minister to deliver a sermon over the airwaves on January 5, 1941.[51] With peoplelikeDoddholdingleadingpositionsofauthorityinthelargestchurchinthesouth,thereadershouldnot besurprisedbythefactthatuntilthe1960s,thechurcheswerejustanotherinstrumentofsegregation.Norcan onehelpbutwonderhowmuchofDoddsantiSemitismisstillwiththeSouthernBaptists,especiallyinlightof thenumberofBaptiststhatattendedtheFourthAnnualSuperConferenceofChristianIsraelChurchesin1997. PastorEverettRamseyoftheFaithBaptistChurchofHouston,Missourihostedthisconferencepromotingthe Identity religion.[68] This close association of Southern Baptists with the Identity religion, with its roots grounded in fascism, has led to the recent announcement of the Baptists to try and convert Jews to Christianity.[52]JewishleadershavedescribedtheproscribedguidelinesofthisSouthernBaptistconversion asinsultingandcondescending. Manyofthefarrightgroupstodayaretryingtodistancethemselvesfromtheirracistroots,oratleastcloak it from public view, in order to attract followers, however, the common bond between many of the far right groups is the Identity religion. There are other sources as well for todays racism, one being the alliance betweentheKlanandtheAmericanBundinthe1930s.Somehaveattributedthisalliancewiththeincreasein violenceoftheIdentitymovement.Nevertheless,forthemostparttheKlanisamereshadowofitsformerself. The writer doesnt want to dismiss the threat posed by Klansmen, but from a political point of view, they remainineffectual.AGallupPollreleasedonJuly27,1970showedthatonly3%ofthepublicviewedtheKlan inafavorablelight,while75%regardedtheKlaninahighlyunfavorablelight.[53]Thefavorablenumberhas probably risen slightly with the increase in right wing extremist groups during the 1980s, but for most AmericanstheKlanisstillapariah.

A greater source of concern in the opinion of the writer is the Pioneer Fund, a group thathaddirectlinkswithHitlerandtheNazis.WickliffeDraper,anheirtothegianttextile machinery manufacture, the Draper Corporation, established the Pioneer Fund in 1937. DraperwasanextremeracistandastaunchantiunionistasearlyasthedaysoftheSacco and Vanzetti trial. Other objects of his hatred were the United Nations, John Kennedy, anyone on the Nye committee and liberals. His hatred for those on the Nye committee attemptingtochargetheduPontswithwarprofiteeringledtohisdeliberatepersecutionof AlgerHissbetween1948and1951. Draper and his associate, Harry Laughlin, created The Model Eugenics Laws in America,whichHitlerusedtowritetheNurembergLaws.Laughlinreceivedanhonorary Wickliffe Draper degreefromtheUniversityofHeidelbergin1936;bothmenhadotherdirecttiestoHitler andNaziGermany.DraperandLaughlinwerethesourceofthelawsintheUnitedStatesfor the involuntary sterilization of institutionalized Americans in 24 states that adopted such lawsthatleddirectlytothesterilizationofover75,000Americans.[54] However, the real danger of the Pioneer Fund is in the amount of political clout and financialbackingithastopropagateracismeversinceitwasfounded.Amongtheoriginal directors of the Pioneer Fund who endorsed the policies of eugenics was John Marshall Harlan,II,whowasappointedtotheSupremeCourtin1957.[55]OnSeptember12,1963 Harry Laughlin the Mississippi State Sovereignty Commission received a notification from Morgan Guaranty Trust Co. that an anonymous gift of one hundred thousand dollars had been granted with the conditionthatthesourceofthegifthadtobekeptconfidential.Themoneywastobeusedinthefightagainst civilrights.AdditionalmoneywasforthcomingfromthePioneerFundandwasusedinabroadsideattackon civilrights.[55]ThePioneerFundhasalsobeenlinkedasthesourceoffundsforantibussingprograms.[58] ThereadershouldnotethesignificanceofDraperandhisgrantsofmoneytopromoteracisminthe1960s. Afterthirtyyearsitishardtofinddirectlinksinanypoliticalgroup;peopledieandideologyevolves,andat best, one can only show an evolving linkage. However, in this case, the linkage is direct with Draper still expoundinghisracist,Naziviews.Onceagain,weseehowtheelitesupportedthefascistcauseandcanshape public opinion through propaganda. A later chapter will detail an additional connection with fascism and Draper. ThePioneerFundisalsothesourceofmuchofthefundingforbooktitlesthat,likeTheBellCurve,are nothingmorethanracistdrivelcloakedunderthedisguiseofscience.TheBellCurveisinherentlyfalseand usedmuchoftheworkprovidedbythePioneerFund.OneofthechiefbeneficiariesofthePioneerFundhas beenRogerPearson,therebylinkingtheLibertyLobbywiththePioneerFund.ThePioneerFundwasalsoone of the driving forces behind Proposition 187, the antialien ballot measure on the 1994 California ballot. Presently the following noteworthy Republican politicians have been linked with the Pioneer Fund: Jesse Helms[56]andSteveForbes.[57] By using the Pioneer Fund as an example, we have established a direct link between a Nazi group of the thirtiestobothpastandpresentpoliticalconnectionsthathaveresultedinsomedarkmomentsforthenation anditslegalsystem. ThePioneerFundwasestablishedonracialhateanditremainsaninstitutionbasedonhate.Anexampleof the extreme hate of these groups from the 30s comes from a member of the Mothers Movement, Lucinda Benge.BengechargedthatwhitesailorsweregivenbloodtransfusionsfromBlacksandOrientals,makingthem illandlikelytofatherBlackorYellowchildren.[59] Such a statement is ridiculous, but it does reveal the rabid hate of these groups. For those readers that thinkwehavemovedbeyondsuchrabidhate,thewriterwouldliketoinformthereaderofafriendhehadin collegeduringthelate60searly70swhosefatherwasdelayinganoperation.Thereasonforthedelaywasthat hehadapreviousoperationanddidnotrecoverasquicklyashehadthoughtheshouldandheblamediton that nigger blood they had gave him. Such bigotry still remains strong throughout the Midwest. In a later chaptertheantiJewishsentimentwillbedetailedintheriseofthePosseComitatusinthe1980s. Perhaps, the most influential right wing political group today was formed from the remnants of three fascist groups of the 1930s. The American Security Council (ACS) was formed in 1955 from members of the profascist groups: the America First Committee, the American Vigilante Intelligence Federation, and the American Coalition of Patriotic Societies.[62] The American Vigilante organization was the product of the notoriousprofascistHarryJung,whiletheCoalitionofPatrioticSocietieswascloselyassociatedwitheugenics

andthepreviouslymentionedPioneerFund.TheAmericanVigilanteIntelligenceFoundationwasfoundedin 1927. The foundation collected large sums of money from such corporate donors as Sears, A.B. Dick, InternationalHarvester andFirstNationalBank.[114]Thepersonmostresponsible forestablishingboththe AmericaFirstCommitteeandtheACSwasthereactionaryheadofSearsandRoebuck,retiredGeneralRobert Wood. TheAmericaFirstCommitteebeganastheideaofayoungYaleCollegestudent,DouglasStuart,Jr.Stuart was the son of the first vice president of Quaker Oats. The reader should note the case of the nut never dropping far from the tree, as Quaker Oats was a later member of the ACS. Nor was the America First Committee the only group with connections to Quaker Oats. One of the founding members of the Church League was a vice president of Quaker Oats. Stuart attended the 1940 Republican Party Convention and consortedwiththeisolationists.CharlesLindberghhadalreadyshownaninterestinStuartsideaofunitingall opposition to the forthcoming war under one umbrella group. With Lindberghs advice, the young Stuart sought out the aid of General Robert E. Wood. Wood was a strong isolationist and apologist for Hitler. Soon afterwards, the America First Committee was incorporated, with Wood at the helm. William H. Regnery was one of the signers of the incorporation.[63] The America First group was underwritten by business leaders. ThereadershouldrecallfromthepreviouschapterthatJohnFosterDulleswrotethecharter.Eightbusiness leaders supplied over $100,000. Included in this list of business leaders was H. Smith Richardson. Both the Regnery Publishing Company and the Smith Richardson Foundation played prominent roles in the effort to derailtheClintonadministration. WilliamR.Castle,aformerUndersecretaryofStateunderHoover,wasalsoinstrumentalinthelaunchingof the America First Committee. Castle was a scion of a wealthy family from Hawaii. He believed that only the wealthyshouldbeallowedtoserveinthediplomaticcorps.CastleopposedsendinganyaidtoChina,despite JapaneseaggressioninChina.FormerPresidentHooverremainedasecretmemberofthecommittee. The America First Committee was not founded originally to help the Nazis, but under the direction of General Wood the Committee soon allowed admission of any proNazi, including Dudleys Silver Shirts and Klanmembers,andbecamethemouthpieceofproNazipropaganda.EvenLauraIngalls,theNaziagent,wasa member.RalphTownsendwasanothermemberandheldaleadershiproleinSanFrancisco;hewasalsoapaid agent of the Japanese government. Garland Alderman also held a leadership role in Michigan, and was a member of the Naziinspired National Workers League. He was later indicted on sedition charges. Dellmore LessardwastheOregonStateChairmenoftheAmericaFirstCommittee,butwasforcedtoresignafteritwas disclosedhehadacceptedfundsfromtheNazicontrolled Kyffhaeuserbund.[64]TheAmericaFirstCommittee wassuccessfulinbringingmanyoftheprofascistgroupsunderoneumbrellagroup.[89] The America First group grew quickly, thanks in part to the wealthy founders and slick promotion. The group quickly reached around 800,000 members, benefiting from the publicity operations of Quaker Oats, Sears,andHormel.DuetothetiesofHormel,thelargeadvertisingfirmofBatton,Barton,DurstineandOsborn alsocontributedtopromotingthegroup.FormerPresidentHerbertHooverwasasecretmemberofthegroup. FDRhadhisownsourcesofintelligenceabouttheAmericaFirstgroup.OnesuchsourcewasWalterWinchell. FromWinchell,RooseveltlearnedthatThomasDeweywasnegotiatingtotakeoverthegroup.However,with Deweyspresidentialambitions,hebackedoffanddistancedhimselfsomewhat.[117] WiththefollowingbackgroundontheAmericaFirstCommitteeitwouldbesurprisingthatwewouldfind any knowledgeable person defending it as a patriot organization, however, in a venomlaced diatribe as a responsetotheformermayorofNewYork,EdKoch,perennialpresidentialcandidatePatBuchanandidjust that.Buchananhasotherembarrassingtiestofascismaswell.Intheresponse,Buchananlistedfournamesthat hadsignedarecruitingposterforAmericaFirstatYaleLawSchool:BobStuart,EugeneLoche,PotterStewart and Gerald Ford. He also listed three additional members: Senator Peter Dominick, Sargent Shriver and Kingman Brewester.[65] Brewester later became president of Yale, a university that has close ties with employingformerNaziwarcriminals.WhilepresidentofYale,BrewesterappointedTracyBarnesasaspecial assistantin charge ofcommunityrelations.Barneswasanoperations officerforthe OSSduringthewar and resignedahighlevelCIApositiontoaccepttheoffer.BarneswastheCIAofficerthatorganizedtheoverthrow oftheArbenzgovernmentofGuatemalaandselectedE.HowardHuntashispoliticalofficerfortheteam.[66] WilliamRegnerywasalsooneofthefoundersoftheAmericanSecurityCouncil;hewaslaterreplacedby hissonHenry.Regneryandtwootherisolationistsbeganbroadcasting Human Eventsandin1947startedthe Regnerypublishingbusiness.Interestinglyenough,thefirsttwotitlespublishedbyRegnerywerecriticalofthe Nuremberg Trials. The third book Regnery published was another proNazi book attacking the Allies air

campaign.In1954,RegnerypublishedtwobooksfortheJohnBirchSociety.Hewasalsothepublisherbehind BuckleysGodandManatYale.InlightofthepublishingoftheproNazibooks,itisinterestingtonotethat Regnery Publishing was subsidized by the CIA, according to Howard Hunt. The reader is reminded to rememberthispointinalaterchapterconcerningtheCIAanditsinvolvementwithNaziwarcriminals. HenryRegnery,alongwithBunkerHunt,fundedWesternGoals,anorganizationthatisnowdead.Western Goals was another group that reportedly compiled lists of people they deemed subversive. In 1986, Reagan appointedAlfredRegnerytohelpdismantletheJusticeDepartmentsOfficeofJuvenileJustice.[67]Inthe1990s the Regnery publishing house has been the publisher of numerous venomous smears (I would use the word books but that would be a lie by any measure) attacking President Clinton. Once again, a direct linkage betweenthepastproNazigroupsofthe1930sandtodaysrightwinghasbeenfullyestablished. The American Security Council had a large degree of influence on the Reagan administration as well as manyofthemorehotlydebatedissuesbetweenthe1950sandthe1980s.AmoredetailedlookoftheACSwill followinlaterchapters.Inthebriefpassagesinthischapter,ithasbeenestablishedthattheACSrosefromthe remnants of three profascist groups of the thirties and pursued a path of promoting the fascist agenda of extremeantiunionismandantiliberalism,whichwillbemadeclearinthelaterchapters. Itnowhasbeenoverseventyyearssince1930,yetfewAmericansknowabouttheconcertedeffortofthe Nazis to create domestic turmoil within the United States. Fewer Americans know about the fascist plot to overthrowRoosevelt.EvenfewerAmericanshaveanunderstandinghowtheindigenousfascistgroupsofthe 1930sstillexertaconsiderableeffectonourdailylifeandthepoliticalatmosphere. HitlersdreamofunitingallGermanAmericansunderthefascistAmericanBundwasaresoundingfailure asmostGermanAmericanschosetoremainloyaltotheiradoptedcountry.Hitlersgrandioseplanofcreating widespreadracialdiscordmetwithonlylimitedsuccess.BoththeDetroit,MichiganandtheBeaumont,Texas raceriotswereinflamedbytheNaziaffiliatedKlanandotherfascistgroupsandcausedconsiderabledelayin theproductionofwarmaterial.Hitlermusthavebeenoverjoyeduponseeingoneofthemajorpoliticalparties, theRepublicans,toconductviciousantiSemiticcampaignsinseveralstates. In this all too brief look at the fascists in the 1930s, less than twenty of the over 700 fascist groups that wereoperativeduringthe30shavebeencoveredinanydepth.Manyofthesegroupsreceivedmoneydirectly fromNaziGermanyandfromthesamewealthyindustrialiststhatwereknowinglybuildingtheThirdReichs war machine, yet it has been clearly established that these groups exerted a large political influence during theirbriefexistences. Aninfluencethatextendstothisdayintheformofantilaborlawssuchastherighttoworklawsandthe TaftHartleyAct;bothhavedirectconnectionswithfascism.Therighttoworklawswerepassedlargelydueto thelobbyingeffortsofthefascistgroupChristianAmerica.RepublicanHousememberFredHarleywasanopen advocate of Japan and Germany in the halls of Congress, right up to the moment Pearl Harbor was bombed. TodaytheUnitedStatesistheonlymajorwesterngovernmentthatoutlawsageneralstrikeand,assuch,isin violationofUNpolicyonunionsandlabor.GeneralstrikesarecommonplaceinFranceandtherestofEurope. ThisextremeantilaboragendaisstillreadilyapparenttodayintheRepublicanParty. The previous chapter revealed one component of the Nazi battle plan, the economic sabotage of our economythroughtheuseofcartelsandpatents.InthischapterasecondcomponentoftheNazibattleplanwas revealed, the use of agents to foment social unrest in order to prevent or delay the United States entry into WWII. Hitlers greatest success in creating domestic unrest came in the halls of Congress. Many of the conservative members of Congress from both parties, hiding under the banner of isolationism or pacifism, wereopenlyprofascistandwereinfluentialindelayingwarproductionandaidtotheAllies.Severalofthese proNazi congressmen received funds directly from Nazi Germany, others indirectly through Viereck and Flanders Hall, the notorious Nazi publishing house, in the form of royalties for books. Additionally clear evidenceofcollusionbetweenthehighrankingofficialsoftheRepublicanPartyandknownNaziagitatorsin everyelectionyearthroughoutthe1930shasbeenestablished. AsJohnRoggelearnedinEurope,theNaziinfiltrationwas muchmoreextensivethanhehadbelievedas prosecuting attorney for the sedition trial. He learned that an exPresident, Herbert Hoover, a former Vice President of FDR, a United States Senator and other high ranking officials had conspired with the Nazis to preventtheelectionofRooseveltin1940. As Rogge wrote his final report, he knew that the report would never be published. The fascist industrialists and politicians were too powerful to be exposed. They would be protected. Rogge continued writinghisreportnotsuspectingthathisreportwouldendhiscareer.However,Roggewouldsufferthesame

fateasthemanhereplacedintheseditiontrials,WilliamMaloney.Hewouldbedismissedforuncoveringthe truthaboutAmericanfascists.Onlyafewcriesofprotestwereevervoicedinthepressoverthedismissalof Rogge.Evenworse,tofurtherdiscredittherelentlessNazihunter,thefascistelementsoughttobesmirchhis brilliantandhonorablecareerbylabelinghimasacommunist. The good General Smedley Butler suffered the same fate earlier in revealing the fascist plot against Roosevelt.Thegeneralwaslabeledacrackpotinthepressforsavingthecountryfromfascism.Thispatternof dismissalofthosethatopposedfascismstronglywasrepeatedtimeandagain.By1943,withtheNazisclearly defeated on the battlefields of Europe, it would reach epidemic proportions. Meanwhile the careers of those thataidedtheNazissteadilyadvanced.Thefollowingchapterwillrevealhowthiswasanintegralpartofthe changeintacticsofthenativefascistonceitwasclearlytheNaziswerelosingthewar. Afurtherexhaustivereviewofallthefascistgroupsofthe1930sisbeyondthescopeofanysinglebook,let alone a single chapter. Further review of these groups would only confirm the findings so far, exposing additionalconnections,andwillbeleftforotherwriters.Inthisbriefchapter,severalrootsofthefarrightwing groupshavebeentracedbacktothefascistgroupsofthe1930s.MostnotablytheAmericanSecurityCouncil, whichexertedalargeinfluenceontheReaganadministration,wasformedfromtheremnantsofthreeproNazi groups.OthergroupssuchastheAryanNationsandthePosseComitatuslikewisehavetheirrootsgroundedin the fascism of the 1930s. A more detailed look at the connections between todays far right wing extremist groupswithfascismwillbegiveninalaterchapter. Some of the connections that have been exposed in this chapter maybe more embarrassing than an ideologicaltie.SuchmaybethecasewiththelinkbetweenGeraldFordandtheAmericaFirstgroup.Others, such as Regnery, confirmed his fascist ideology by his subsequent actions. Nor does the inclusion of a group implythatallmembersofthatgrouparefascistideologues,itsimplymeansthatasignificantelementofthat groupiseitherfascistorpredisposedtofascistideology. Oneofthegreatestdeterrentstoexposeotherconnectionsliesinthefactthatmuchoftheevidencestilllies in government vaults classified as secret. The efforts of Congresswoman Elizabeth Holtzman to have all documentsfromthateraopentopublicscrutinyshouldbeapplauded.Asmoreandmoreofthosedocuments areavailable,itonlyconfirmshowvastthefascistnetworkwasandhowjusticewassubverted.TheNaziWar Crimes Disclosure Act was passed in 1998. In the three years since passage, some three million pages of previouslyclassifieddocumentshavebeenreleased. Among the documents released in April 2001 were those devoted to Emil Augsburg, a member of the WannseeInstitute,theformerNazithinktankthatplottedthemassacreoftheJews.Augsburgbecamepartof theGehlennetwork,anetworkofformerNazisemployedbytheCIAfollowingthewar.Augsburgshouldhave been tried as a war criminal. With each release of additional files, a clearer picture will emerge of the relationshipbetweentheCIAandtheNazis.[90]Astowhatthesedocumentsmayreveal,thatisbestsummed upbythefollowingquotefromtheNaziWarCriminalsInteragencyWorkingGroup,asitemaintainedbythe UnitedStatesgovernment. Clearly the information contained in these still classified files will prove to be embarrassing to our government. In the name of containing Soviet aggression, many hardcore, high ranking Nazis were welcomedintothecampoftheWesternAllies.MenlikeGeneralAdolfHeusinger,whoservedasDeputy ChiefofOperationsandPlanningfortheentireGermanarmedforces.AmansoclosetoHitlerthathe was literally standing next to him on July 20, 1944 when the room they were in blew up in what ultimatelyprovedtobeafailedassassinationattempt.Nevertheless,Heusingerwaswelcomedbythe western allies after the surrender and rose to new heights in the postwar period when, on April 1, 1961,hisappointmentasChairmanofthePermanentMilitaryCommitteeofNATOwithanofficeinthe PentagonwasannouncedbynoneotherthanPresidentJohnF.Kennedy.[91] Theseconddeterrentcomesfromthemediaitself,boththepopularbroadcastingnetworksandthepublishers, andtheirlackofenthusiasmtooutrightsabotageofeffortstoexposetheconnections.Withtheadventofthe Internet, the propaganda value of the popular media and press has been diminished; however, this is a two edgesword.Thefarrightgroupshavebeenquicktoadapttonewtechnologies.Nevertheless,evennowthere arethosethatadvocate censorshipofthenet.Helpfighttokeepthenetfreeofboth government censorship andthatofprivatecensorship. ThereadershouldalsokeepinmindthatHitlerdidntrisetopowerinarevolution.Thenotoriousfascist HueyLongonceremarkedthattheUSwouldbetheonlycountrythatelectedafascistgovernment.Manyofthe

pointsestablishedinthischapterwillbeexpandedinlaterchaptersdetailingthegraduallossoffreedomsin theeverrelentlessmarchofcreepingfascismandcorporaterule.

Appendix 1: Big Donors to the Pro-Nazi Groups

Thefollowingtablehasbeenreproducedfrom1000Americans,GeorgeSeldes,Boni&Gaer,1947,p292298. ThetablewasoriginallypreparedbySenatorBlackandisknownasthe74thCongress2ndSessionDigest ofData,SpecialCommitteetoInvestigateLobbyActivities.Thereaderisurgedtorememberthatthislistisnot complete.ItonlyrepresentswhatwasknownbytheSenator.Thistableisprovidedtoillustratethesimplefact thatitwasthosefromcorporateAmericathatsponsoredthemanyproNazigroupsduringthe1930s.Itsalso providedinhopesofaidingfutureresearchersintofascismwithintheUnitedStates.Toaddsomeperspective tothedollaramountsgivenbelow;theRepublicanPartyspentroughly$15milliondollarsonthepresidential electionof1940.Thefiguresinthetablebelowtotalnearlyfivepercentofthat.
Name Addinsell,H.M. Allen,E.M. Armour,Lester Ames,Theodore Avery,Sewell Baker,GeorgeD.F. Ball,GeorgeA. Bamberger,Clarence Brown,Donaldson Carpenter,R.R.M. Carpenter,W.S.,Jr. Chadbourne,T.L. Chrysler,Walter Clayton,W.I. Copeland,CharlesC. duPont,A.M.L. duPont,HenryE. duPont,Irne duPont,Lammot duPont,PierreS. duPont,S.Hallock duPont,William,Jr. Erickson,A.W. Positions President,ChaseHarrisForbesCorp. Director,CitiesServices,PhilpsPetroleum; USElectric President,MathiesonAlkaiWorks Director,AustroAmericanMagnesite *** Partner,Broody,McLellanCo. *** FirstNationalBank;AT&T;USSteel *** *** VP,GeneralMotors Director,E.I.duPontNemours VP,E.I.duPontNemours VP,E.I.duPontNemours Director,Zonite Chrylser Partner,AndersonClayton Chairman,ExportInsurance Secretary,E.I.duPontNemours Trustee,WilmingtonTrust Director,WilmingtonTrust ViceChairmanE.I.duPontNemours President,E.I.duPontNemours VP,WilmingtonTrust Director,GeneralMotors *** President,DelawareTrust Chairman,McCannErickson ProNaziGroup AmericanLibertyLeague Crusaders AmericanLibertyLeague Crusaders Crusaders AmericanLibertyLeague Crusaders Crusaders NationalEconomicLeague Crusaders Crusaders AmericanLibertyLeague Crusaders AmericanLibertyLeague AmericanLibertyLeague EconomistsNationalCommittee AmericanLibertyLeague Crusaders AmericanLibertyLobby SouthernCommitteetoUpholdthe Constitution AmericanLibertyLeague AmericanLibertyLeague AmericanLibertyLeague SouthernCommitteetoUpholdthe Constitution AmericanLibertyLeague Crusaders MinuteMenandWomenofToday SentinelsoftheRepublic SouthernCommitteetoUpholdthe Constitution AmericanLibertyLeague Crusaders EconomicNationalCommittee FarmersIndependenceCouncil SouthernCommitteetoUpholdthe Constitution AmericanLibertryLeague SouthernCommitteetoUpholdthe Constitution AmericanLibertyLeague AmericanLibertyLeague AmericanLibertyLeague Amount $200 $100 $200 $100 $2,500 $120 $10 $5,000 $12,500 $5,000 $125 $20,000 $500 $20,000 $4,834 $100 $6,250 $876 $7,750 $100 $15,000 $5,000 $20,000 $500 $86,750 $10,000 $1,400 $100 $100 $15,000 $1,000 $1,000 $5,000 $3,000 $5,300 $5,000 $20,000 $20,000 $875

Name Echols,A.B. Farish,W.S. Greef,Bernard Hawkes,A.W. Heinz,Howard Houston,GeorgeH. Hutton,EdwardF. Kemmerer,ProfE.W. Kent,A.Atwater Knudsen,WilliamS. Kroger,Bernard LaBoyteaus,W.H. Lasker,Albert Lloyd,Horatio McCallS.T.

Positions VP,E.I.duPontNemours Director,WilmingtonTrust,Grasselli Chemical StandardOil Partner,P.Greef&Co CongoleumSenator President,Heinz Director,MellonNationalBank President,BaldwinLocomotive Director,StandardSteel Chariman,GeneralFoods,Zonite Director,ManufacturersTrust,Chrysler Princeton

ProNaziGroup Crusaders AmericanLibertyLeague Crusaders FarmersIndependenceCouncil SentinelsoftheRepublic Crusaders Crusaders AmericanLibertyLeague AmericanLibertyLeague Crusaders AmericanLibertyLeague Crusaders AmericanLibertyLeague Crusaders AmericanLibertyLeague SouthernCommitteetoUpholdthe Constitution SentinelsoftheRepublic AmericanLibertyLeague SentinelsoftheRepublic AmericanLibertyLeague Crusaders Crusaders SentinelsoftheRepublic AmericanLibertyLeague Crusaders AmericanLibertyLeague Crusaders Crusaders AmericanLibertyLeague Crusaders AmericanLibertyLeague Crusaders AmericanLibertyLeague Crusaders AmericanLibertyLeague Crusaders SentinelsoftheRepublic SentinelsoftheRepublic AmericanLibertyLeague Crusaders SentinelsoftheRepublic SentinelsoftheRepublic SentinelsoftheRepublic SentinelsoftheRepublic AmericanLibertyLeague AmericanLibertyLeague SouthernCommitteetoUpholdthe Constitution SentinelsoftheRepublic AmericanLibertyLeague Crusaders AmericanLibertyLeague Crusaders SouthernCommitteetoUpholdthe Constitution

Amount $100 $575 $75 $110 $25 $200 $5 $250 $2,500 $5,876 $500 $100 $20,000 $500 $5 $5 $1,000 $10,000 $500 $100 $100 $5,000 $1,000 $100 $50 $1,000 $876 $200 $10,000 $7,500 $125 $50 $50 $25 $400 $75 $10 $500 $20,000 $4,000 $5,000 $5,000 $3,500 $91,000 $20,000 $20,000 $5,000 $500 $100 $100 $20,000 $10,000 $1,000

*** GeneralMotors *** President,Johnson&Higgins Director,GraceNationalBank *** Partner,Morgan VP,AmericanBrakeShoe,American MangeseSteel Mellon,Andrew HeadofMelloninterests Merrick,F.A. President,Westingtonhouse Milbanks,Jeremiah *** Moffett,GeorgeM. President,CornProducts Montgomery,E.W. Directoroftwocottonmills Morris,E.M. President,AssociatedInvestment Morris,JohnA. Member,Gude,Winmill Pepper,GeorgeWharton exSenator Pew,J.Howard President,SunOil Director,SunShipbuilding Pitcairn,H.F. *** Pitcairn,Rev.Theo *** Pitcairn,Raymond *** Pratt,JohnL. VP,GeneralMotors Raskob,JohnJ. VP,E.I.duPontNemours Director,GeneralMotors,BankersTrust Roosevelt,Nicholas Sanis,E.C. Sloan,AlfredP. *** President,J.C.Pennys President,GeneralMotors Director,E.I.duPontNemours

Name Stotesbury,E.T. Strauus,LionelF. Teagle,W.C. VanAlstyne,J.H. Wier,E.T. Widerner,JosephE. Woodward,William Total

Positions Partner,Morgan Directorof11railroads StandardOil President,OliverElevator Chairman,NationalSteel,WiertonSteel, WiertonCoal Director,Baltimore&OhioRailroad, Reading HonChairman,CentralHanoverBank& Trust

ProNaziGroup SentinelsoftheRepublic Crusaders SentinelsoftheRepublic Crusaders AmericanLibertyLeague Crusaders AmericanLibertyLeague Crusaders AmericanLibertyLeague AmericanLibertyLeague

Amount $1,000 $200 $25 $2,000 $100 $25 $20,000 $10,125 $20,000 $14,000 $643,452

Notes
[1] Thiswriterbelievesthatoneofthereasonsthefarrightwinghasalwaysbeenfracturedinthiscountry is the intense hatred and intolerant views or tunnel vision of these groups and their members. The writer also believes one of the reasons for the greater fracturing during the 30s compared to the presenttimewasaproductofbotheconomicconditionsandthetechnologyofthetimes.Thegroupsin the30shad torelyontheUSPostalsystemtoexchangetheirpamphlets,unlikethegroupsfromthe 1980sthatwerequicktodevelopmailinglistsoverfaxesandtheuseoftheinternettoexchangetheir pamphletsinthe1990s. [2] FactsandFascism,GeorgeSeldes,NewUnionPress,1943,p68. [3] TradingwiththeEnemy,CharlesHigham,Barnes&Noble,1983,p162. [4] TradingwiththeEnemy,p163. [5] TradingwiththeEnemy,p163165. [6] TradingwiththeEnemy,p165167. [7] TradingwiththeEnemy,p167. [8] FactsandFascism,p46. [9] FactsandFascism,p7075. [10] TradingwiththeEnemy,p154155. [11] FactsandFascism,p135136. [12] FactsandFascism,p137. [13] FactsandFascism,p134. [14] FactsandFascism,p134. [15] FactsandFascism,p129131. [16] FactsandFascism,p124125. [17] MenoftheFarRight,RichardDudman,Pyramid,1962,p126128. [18] http://uaw.org/bargaining/barginfo.htm#japan [19] FactsandFascism,p203204. [20] FactsandFascism,p126127. [21] FactsandFascism,p184190. [22] FactsandFascism,p184. [23] http://www.fair.org/extra/9707/adsurvey.html [24] FactsandFascism,p213. [25] FactsandFascism,p215. [26] FactsandFascism,p220. [27] http://www.abbc.com/aaargh/engl/dl/denying2.html [28] Undercover,JohnCarlson,E.P.Dutton,1943,p232234. [29] Undercover,p293. [30] Sabotage,AlbertKahn,Harper&Brothers,1942,p140. [31] Undercover,p235. [32] Undercover,p238.

[33] [34] [35] [36] [37] [38] [39] [40] [41] [42] [43]

[44]

[45] [46] [47] [48] [49] [50] [51] [52] [53] [54] [55] [56] [57] [58] [59] [60] [61] [62] [63] [64] [65] [66] [67] [68] [69] [70] [71] [72] [73] [74] [75] [76] [77] [78]

http://www.teleport.com/~glapn/ar04001.html Sabotage,p247248. http://www.mthololyoke.edu/acad/intrel/nazipol.htm FactsandFascism,p255. FactsandFascism,p258259. FactsandFascism,p261262. http://newsweek.washingtonpost.com/nwsrv/issue/24_98b/printed/int/eur/ovbz0324_2.htm Undercover,p258. Undercover,p241. Undercover,p243. List of those indicted: Elizabeth Dilling, Howard Victor Broenstrupp, William Dudley Pelly, Prescott Freese Dennett, Charles B. Hudson, Court Asher, Eugene Nelson Sanctuary, James C. True, Oscar Brumback,EdwardJamesSmythe,GeraldB.Winrod,ElmerJ.Garner,DavidJ.Baxter,WilliamKullgren, C Leon de Aryan, Robert Edwards Edmondson, Ellis O. Jones, William Robert Lyman, Jr., George Sylvester Viereck, William Griffin, Hans Diebel, Hudson de Priest, Robert Noble, Ralph Townsend, DonaldMcDaniel,JamesF.Garner,OttoBrennermann,HermanMaxSchwinn. Itisthiswritersopinionthatthereisaveryfinelinebetweenthecrimeofseditionandfreespeech. Overallthewriterviewstheseditiontrialsnegatively.Thewriterbelievesthatsomeofthoseindicted wereguiltyofnothingmorethanexercisingtheirrighttofreespeech.Otherswerecertainlyguiltyof seditionorevenmoreseriouscrimes. http://hatewatch.org/who/butler.html http://www.hearnow.org/id.htm http://www.detnet.com/wilke/antisem.htm Undercover,p55. http://www.users.interport.net/~wovoka/aarlong.html http://www.detnet.com/wilke/antisem.htm http://www.uu.edu/unionite/winter99/chlife.htm http://www.seattletimes.com/news/nationworld/html98/bapt_19990909.html PowerontheRight,WilliamTurner,RampartsPress,1971,p15. http://www.hartfordhwp.com/archives/45/022.html http://www.ferris.edu/isar/Institut/pioneer/silent.htm http://www.ferris.edu/isar/Institut/pioneer/helms.htm http://www.ferris.edu/isar/Institut/pioneer/forbes.htm http://www.ferris.edu/isar/Institut/pioneer/kaukas.htm WomenoftheFarRight,GlenJeansonne,UniversityofChicagoPress,1996,p105. Sabotage,p245. FactsandFascism,p281282. OldNazis,theNewRightandtheRepublicanParty,RussBellant,SouthEndPress,1988,p31. Sabotage,p200202. Sabotage,p215216. http://www.theamericancause.org/pjb990108.html CompromisedCampus,SigmundDiamond,OxfordUniversityPress,1992,p335. http://www.weberman.com/monica.htm SoldiersofGod,HowardBushart,JohnCraig,MyraBarnes,PinnacleBooks,1998,p124125. TimeBomb,E.A.Piller,ArcoPublishing,1945,p43. TimeBomb,p52. TimeBomb,p44. AmericanSwastika,CharlesHigham,Doubleday,1985,p3839. AmericaSwastika,p4547. AmericanSwastika,p78. http://www.korpios.org/resurgent/Coup.htm HitlersUndercoverWar,WilliamBreur,St.MartinsPress,1989,pp138139. http://dailynews.yahoo.com/h/wews/20010710/lo/852857_1.html IFindTreason,RichardRollins,WilliamMorrow&Co,1941,p80.

[79] [80] [81] [82] [83] [84] [85] [86] [87] [88] [89]

[90] [91] [92] [93] [94] [95] [96] [97] [98] [99] [100] [101] [102] [103] [104] [105] [106] [107] [108] [109] [110] [111] [112] [113] [114] [115] [116] [117] [118]

IFindTreason,p81. SecretArmies,JohnSpivak,ModernAgeBooks,1939,p7577. http://www.indymedia.org/front.php3?article_id=54014&group=webcast FactsandFascism,p73. http://sites.netscape.net/admin55/openletter3 http://freenet.msp.mn.us/people/fholson/fla3hist.htm FactsandFascism,p257. FactsandFascism,p256. http://www.wvculture.org/history/journal_wvh/wvh511.html The following profascist groups were aligned with the America First Committee: German American Bund,SilverShirts,ChristianFront,KuKluxKlan,AmericanDestinyParty,AmericanGuards,American White Guards, Blackshirts and Italian Fascist Clubs, Christian Mobilizers, EthiopianPacific League, Falangists,GrayShirtsKyffhaeuserBund,NationalCopperheads,NationalWorkersLeague,Patriotsof theRepublic,SaveAmericaFirst,SaveOurAmericanClubs,SocialJusticeClubs,WhiteRussianFascist, andmanyelementsofthemothersmovementincludingDilling.Source:Sabotage,p208. CIAopensitsFilesonThirdReichFigures,MarkFritz,BostonGlobe,April27,2001. http://www.nara.gov/iwg/papers.html TheNaziMovementintheUnitedStates19241941,SanderDiamond,CornellUniversityPress,1974, p89&102. MysteryMan,DaleHarrington,Brassey,1999. http://newsweek.washingtonpost.com/nw srv/issue/24_98b/printed/int/eur/ovbz0324_2.htm MysteryMan,p137161. TradingWiththeEnemy,CharlesHigham,Barnes&Noble,1983,p162166. http://www.bartleby.com/66/96/8996.html AmericanSwastika,p40. TheOfficialGermanReportofJohnRogge,A.S.Burnes,1961,p254255. MysteryMan,p118. AmericaSwastika,p45. TheOfficialGermanReport,p170171. ItsaSecret,HenryHoke,PamphletPress,1946,p1415. MysteryMan,p206. MysteryMan,p205208. AmericanSwastika,p57. ThePlottoSeizetheWhiteHouse,JulesArcher,Hawthorn. ThePlot,p175. ThePlot,p193. ThePlot,p197. ThePlot,p198. RooseveltsSecretWar,JosephPersico,RandomHouse,2001,p189. RooseveltandHitler:PreludetoWar,RobertHerzstein,Paragon,1989,p153. RooseveltandHitler,p154. RooseveltandHitler,p173. RooseveltandHitler,p328. RooseveltandHitler,p386394. RooseveltandHitler,p392393.

CHAPTER 5: THE WAR YEARS

HEDAYHITLERUNLEASHEDhisPanzerforcesagainstPolandmarkstheformalbeginningofWorldWar II,September1,1939.WarwouldlashacrosstheEuropeancontinentforanothersixyears.Anewwarso horrific, millions would perish as a result. It was a brutally savage war with over six million Jews perishingintheHolocaustalone.Forthefirsttimeinhistory,anentirecivilianpopulationcouldbetargetedfor destruction; allmadepossiblebynewtechnology. WarwouldspreadintoNorthAfrica, China andengulfthe SouthPacific. It is this writers considered opinion that no single event of the twentieth century brought more geopoliticalchangesthanWWII.VirtuallyeverycountryofEuropesawachangeingovernmentduringorafter thecloseofthewar.NorwasthechangeingovernmentsconfinedtoEurope;thechangesingovernmentswere worldwide, as the British Empire dissolved away. The United States was propelled from the position of a secondtiernationtothatofoneofthetwosuperpowersandaworldleader. Domesticallyitbroughtaseaofchanges.Forthefirsttimeinitshistory,thenationwouldmaintainalarge standing army. With the United States as the only country of the Allies escaping largescale damage, it catapultedthecountryintoaneconomicpowerhouse.Moreover,withthefearsoftheredmenacereignited, theUnitedStatesbadefarewelltoanisolationistpolicychoosingaproactiveinterventionistpolicyvergingon imperialism. For America the war did not begin until December 7, 1941, a day of infamy. For Americans it was a two frontwar,perhapsbestsymbolizedbytheMarinesraisingtheflagonMountSuribachiandGIswadingashore atNormandy.ForthoseAmericansthatlivedthroughthewar,itmeantrationcards,collectiondrivesforscrap metalandothermaterialsinshortsupplyandimagesofRosietheRiveter. ItisthishomefrontofthewarthatisgrosslymisunderstoodbyAmericanstoday.MostAmericansbelieve incorrectlythatthecountrywastotallyunitedinitswarefforts,yetnothingcouldbefurtherfromthetruth. The native fascists remained active and considerable opposition to war existed in the halls of Congress. The wareffortwashinderedbythenumerouscartelagreementsbetweenAmericancorporationsandI.G.Farben. Although the native fascists were unable to create widespread racial strife, they were successful in creating enoughturmoildomesticallytohinderthewareffort. In order to understand the many events of WWII, both on the battlefront and on the home front, a brief look at the Allies deadliest weapon is needed. The marks of this weapon were behind every headline throughoutthewarandtracesofitspresencecanevenbefoundindomesticeventsonthehomefront.This remarkable weapon fired no weapon; it simply was our ability to break the Japanese code. Nevertheless, wrappedbehindashroudofsecrecy,MagicwasundoubtedlytheAlliesultimateweapon. AlthougheverystudentofWWIIknowsoftheimportanceofMagic,fewknowofthebizarreandchildish manner in which the military branches handled the information it yielded. Frank Rowlett of the Signal IntelligenceServicebroketheJapanesecodeonSeptember20,1940.TherivalrybetweentheArmyandNavy ledtoabizarreroutineinwhichtheinformationwaspassedontoRoosevelt.ThetrafficoverMagicwastoo great for the Army cryptanalysts to handle alone. Thus, the naval code breakers shared in the task of decrypting the messages. Each service had an officer who decided which messages were passed on to the administration.ThistaskfelltotheArmysColonelRufusBrattonandAlwinKrameroftheNavy.Distribution was limited to the President, Secretaries of State, War and Navy, the Army Chief of Staff, the directors of militaryintelligenceandnavalintelligenceandthechiefsofnavaloperationsandwarplans. ThebizarrenatureinwhichthedecryptsweredeliveredtoFDRarosefromtheintenserivalrybetweenthe NavyandArmy.Afteraprolongeddogfightbetweenthetwobranchesofthemilitary,asolutionofsortswas reached.OnoddnumberedmonthsthedecryptswouldbedeliveredtothePresidentbyanArmycourier,on evennumbermonthsanavalcourierwoulddeliverthem. ThelevelofabsurditywouldsoonincreaseinJuly1941.DuringJune,ColonelBrattonnoticedadecryptof Magic in Pa Watsons wastebasket. Watson was FDRs military aide and was in charge of appointments. He alonedeterminedwhowouldseethePresident.Watsonhadindeedbeencarelesswiththedecrypt,however, he was not on the list of those approved to see Magic decrypts. The overzealous colonel reported Watsons carelessnesstohissuperior,GeneralShermanMiles.ThegeneralthendeterminedthattheWhiteHousecould nolongerbeentrustedwiththedecrypts.FortheremainderofJuneFDRreceivedthedecryptsfromthenaval

Part 1: The Failure of the FBI

courier.However,startinginJuly,amonthfortheArmytodeliverthedecrypts,nodecryptsweredeliveredto the White House. In August the Navy had managed to work out a new agreement with the Army. The naval couriercouldreadthedecryptstothePresidentandthensummarizethem,however,hewasprohibitedfrom showingtheactualdecrypttothePresident. AmoreseriousleakaroseinsidetheStateDepartment.AccordingtotheMagicdistributionschemeonlythe Secretary,CordellHull,wastoreceivetheintercepts.Hull,however,distributedcopiestosixofhistopaides, oneofwhomsharedthedecryptswithanadditionalfourmembersintheFarEasternDivision.Withsomany copiestobedistributedinsidetheStateDepartment,multiplecopiesweremimeographed.JosephDuganwas themaninchargeofthemimeographroomandwasastrictisolationist,opposedtoFDR.Duganwoulddiscuss andevenshowthedecryptstoafriendofhisinsidetheStateDepartment.Dugansfriend,however,wasinthe pay of Hans Thomsen, the German charge daffaires in Washington and had conspired to fix the election in 1940.ThomsenreportedtoBerlinthattheAmericanshadbrokentheJapanesecode. RemarkablyonMay6MagiccodebreakersdecryptedamessagefromOshimainBerlinrelayingThomsens report of the broken code to Tokyo. Even more remarkable, after a nonchalant investigation, the Japanese determinedtheircodetobeunbreakable andcontinuedtousethebrokencode.InNovemberRoosevelthad tiredofthepsychoticmannerinwhichtheMagicdecryptsweredeliveredtohim.Hedemandedtoseethefull textofthemessagesandthatfromthenontheyweretobedeliveredtohimbythenavalcourier.[101] ThebreakingoftheMagicandUltracodesleddirectlytooneofthemostcontroversialaspectsofWWII:did RoosevelthaveaforewarningoftheattackonPearlHarbor?Thecontroversyhasragedforover60years.The firsttolevelsuchachargewas The Chicago Tribune:thesameantiRooseveltpaperthatpublishedthesecret Rainbow5warplans,thesamepaperthatwaschargedwithtreasoninrevealingthelocationandnamesofthe ships involved in the battle at Midway and the same paper that scuttled the plans for making the OSS a permanentagencyattheendofthewar.Thebestevidencetodatesuggeststherewasnosuchwarning.Right uptothehourofthebombingofPearlHarbor,theWhiteHouseandthemilitaryplannersexpectedtheattack tooccurelsewhereinthePacific. Writers after the war concocted a similar story on the other side of the Atlantic. According to British writers,theAllieswerewillingtogotoextremeendsinprotectingthesecretofMagicandUltra.TheBritish writers claimed Churchill had foreknowledge of the attack on Coventry. According to the overactive imaginationsofthesewriters,Churchillwaswillingtoallowthedestructionofthecityratherthantotipoffthe Germansthattheircodehadbeenbroken.Ultradidyieldthatamassiveattackwasplanned,buttheintercept wasnottranslateduntilthreedaysaftertheattack,andeventhenthelocationoftheattackwasnotmentioned. ThereadershouldnotethattheJapanesefinalmessagealsofailedtonamethelocationoftheattack. Whilethereismorethanenoughblametogoaround,GeneralShortsandAdmiralKimmelmustsharethe bulkoftheblame.Itwastheircommandandtheyfailedtotakeappropriateactionsfollowingthewarwarning message.Washingtonsharessomeoftheblameinfailingtofollowuponthewarwarningmessagetoinsure appropriateactionshadbeentaken.Additionallyalargeproportionoftheblamecanbeplacedontheinsane rivalrybetweentheArmyandNavyinwhichtheyhandledMagic.December6wasanArmydaytodecryptand timewaswastedbytheNavysendingtheintercepttotheArmy.AdditionaltimewaswastedsincetheArmy decodershadalreadytakenofffortheweekend.Furtherdelaywasaddedastheinterceptwasreturnedtothe Navytobedecoded. Finally, much of the blame can simply be place on oldfashioned American arrogance. No one, from the President on down, believed American soil could be attacked by Japan. No one believed that torpedo bombs couldbeusedatPearlHarbor.Navalexpertssimplydismissedtheideabecausetheybelievedthattheharbor wastooshallow.Nonetswereeverdeployedbeforethebombingtoprotecttheshipsfromtorpedobombs.Yet ofallthebombsdroppedatPearlHarbor,thetorpedobombsprobablywereresponsibleformoredamagethan theconventionalbombs. In November 1941, in an attempt to strengthen security, Roosevelt had dispatched his own man to the West Coast to assess the loyalty of the Japanese residents of the West Coast. Curtis Munson, a Chicago businessman,wasselectedbyJohnCarterforthisassignment.CarterwasanewsreporterthatRoosevelthad employedasessentiallyaspyandhadsetupasmallspecialintelligenceunitunderhim.Munsonreportedthat 90to98percentoftheJapanesewereloyal.However,MunsonsreportalarmedFDRtothedangersofdams, bridges,powerstationsandothersuchtargetsthatwereunguarded.Rooseveltspentalargeamountoftime worryingoverthepossibilityofespionagesuchashadoccurredduringthefirstwar.Hecouldnotshakethe imageofanotherBlackTomsabotagingthewareffort.

IntheperiodimmediatelyfollowingthebombingofPearlHarbor,DonovancontributedtoRooseveltsfears of a fifth column. He reported to the President that German saboteurs were about to descend on Americas shores,supportedandaidedbyUSbandsofstormtroopers.DonovanalsoforwardedareporttoFDRclaiming Japanese soldiers disguised as civilians were mobilizing to attack San Diego. Additionally Donovan reported that Los Angles was in danger of an imminent Japanese air strike. Perhaps, the most damning statement of JapaneseloyaltycamefromNavalSecretaryFrankKnox.OnDecember15,Knoxwasquotedclaiming:Ithink themosteffectivefifthcolumnworkoftheentirewarwasdoneinHawaii.[102] Immediately following the bombing of Pearl Harbor, the West Coast was gripped in panic. Local civilians formed coast watcher groups up and down the coast, from San Diego to Seattle. The Army also put in place armed coast watchers. Both the Army and civilian coast watchers were prone to shoot first. The worsening newscontributedfurthertothenearhystericalconditionsalongthecoast.OnDecember23,anoiltankerwas sunk by a Japanese submarine just six miles offshore after leaving the port of San Luis. The Philippines had fallenandtheJapanesewerenowinfirmcontroloftheSouthPacific.AdditionalJapanesesubmarinesightings were made, particularly off the Oregon Coast. On February 23, 1942 a Japanese submarine surfaced a mile offshoreandshelledtheRichfieldOilCompany.ThefollowingnighttheskiesofLosAnglesresembledaFourth ofJulycelebration astheywerelitupwithsearchlights,tracebulletsandantiaircraftfire as an uncontrolled feargrippedthecityfearingitwasunderattack.Therewasnoattack. FurthernorthinWashingtonState,apowerlinefromoneofthedamssuddenlywentdead.Thegunshops andhardwarestoresinthetownsaffectedbythepoweroutagehadabonanzadayinsellingammunition.Their streetsweresoonemptyofadultmalesaseveryonewasinthebackwoodshuntingJaps.Withthepowersoon restored, these patriotic Jap hunters came straggling back home. Miraculously none of them suffered any injuriesgreaterthanaseverelybruisedego.Thepowercompanyhadsoonlocatedtheproblemandrepaired the damage. The power line ran through a rather boggy area, which was used as pasture by the landowner. Apparently, the cows had found one of the power poles to be a convenient scratching post. In the soft wet groundthepolesoonstartedtoleanandfinallytoppledover. As pressure continued to mount on the West Coast, Roosevelt was soon under intense pressure to do somethingabouttheperceivedproblemoftheJapaneselivingontheWestCoast.Thecallforinternmentwas led by General DeWitt, the West Coast Army Chief; Culbert Olson, Californias governor and Earl Warren, Californias attorney general. The governors of Washington and Oregon were squarely behind internment. RememberbothofthesestateswerehotbedsofsupportfortheKlanduringthe1920s.Onlyasinglestatewest oftheMississippi,Colorado,wouldaccepttheJapanesefreely.Withpoliticalpressurereachingafeverishpitch, Roosevelt signed executive order 9066 on February 19, 1942 starting one of Americas grievous sagas, the internmentofJapanesecitizens. WhilemanypeopleliketoplacetheblamesolelyonRooseveltinanefforttodiscredithim,hehardlyacted inavacuum.Thepoliticalpressureswereimmense,buttherealrootsforthissadsagaliedeeperintherootsof American racism. The roots of Japanese racism can be traced to a 1924 report, prepared by the Labor departmentduringtheCoolidgeadministration,whichhadremainedsecretuntiltheoutbreakofwar.Atthe time,theOrientalExclusionActwaspendinginCongressandthereportwassuppressed.TennesseeDemocrat Senator Thomas Stewart, the prosecutor in the Scopes trial, released the report. The report was a study conducted into the strike against the sugar planters in Hawaii. The report noted that the Japanese in Hawaii were settling near strategic military areas and otherwise imperiling national defense. Senators Stewart MaybankofSouthCarolinaandRufusHolmanofOregonstatedthereportshouldhavebeenpublicizedatthe timeandthenationputonguardofthecompromiseddefenseofHawaii. The roots of Asian racism can be traced back further than the 1924 Exclusion Act to 1882. In that year, President Chester Arthur signed the Chinese Exclusion Act, which barred the immigration of Chinese for ten years.In1892,thelawwasextendedanothertenyearsandin1902,itwasmadepermanent.In1907,theUS struck a deal with Japan to limit Japanese immigration which prevented Japanese immigrants from ever gainingcitizenship.Withoutcitizenship,theimmigrantscouldnotlegallyownland. While ultimately the burden for issuing the executive order must be placed squarely on Roosevelts shoulders, the roots for such action come from Americas sordid past of racism. After sixty years one would thinkthatthesocalledleaderofthefreeworldwouldhavelearnedbetterthantodenyitscitizenstherights granted in the Constitution. While its true that the government has formally apologized to the Japanese internedandsomeprogressinmakingamendstothatsadsagahasbeenmade,theadministrationofGeorgeW. BushhasimplementedtyrannicalGestapolikemeasuresfollowingtheSeptember11terroristattack.Whileso

fartheBushadministrationhasonlyillegallyimprisonedasmallfractionofthoseinternedduringWWII,the measures enacted are much harsher and effectively do away with the entire Bill of Rights. For instance the Japanese were allowed access to lawyers; under Bushs measures no one imprisoned has such a right and prisonershavebeenheldformonthswithouteventheirfamiliesbeingnotifiedoftheirstatus.Afullaccounting ofthe911incidentisreservedforalaterchapter. Politicallythewaryearswerethebeginningofthetransformationofbothmajorpoliticalpartiesandthe polarizationofboth.Priortothewar,bothpartieshadconservativeandliberalwings.Bytheendofthe1960s bothpartieshadbeenfullypolarized;oneapartyofconservatives,theotherapartyofliberals.Inaddition,just asbothmajorpartiesstartedevolvingduringthistime,sodidthefascists. By1943,itwasapparenttoeveryonethatGermanyhadlostthewar.Theturningtidesofthewarbrought withitaprodigiouschangeoftacticsofthenativefascists.Thetruenativefascistswouldnotjustmeltaway, givinguptheirfailedideology.Rooseveltwasadamant,aswasTreasurySecretaryMorgenthau,aboutbringing all war criminals to trial following the conclusion of the war, including the businessmen that supported and builttheThirdReich. Thelineofdemarcation markingthebeginningofthe evolutionof thenativefascistsisreadilyapparent. For protection from trial and disgrace, the native fascists had to cover up their crimes. To preserve their ideologytheyhadtocloakfascismunderafalsebanner. InadesperateattempttocovertheirdealingswiththeNazisandtheimpendingdefeatofNaziGermany, thenativefascistswouldproposeseveralsocalledpeaceplans.Centraltoalloftheseplanswasthedeposalof Hitler as chancellor in exchange for an end to hostilities between the United States and Nazi Germany. However, all of the plans would have allowed the Nazis to remain in power, usually with Himmler as chancellor.Likewise,alloftheseplanssoughttodriveawedgebetweentheAlliesandallowNaziGermanyto pursueitswarwiththeSoviets.ThereisevensomeevidencetosuggestthattheattemptonHitlerslifewasa productofoneoftheeffortsofthenativefasciststonegotiateapeace. Failing attheirfeebleattemptstowardpeace,thenativefascistswouldlaunchanewattackonthe home frontforthemindsofthepublic.Itwouldbeanalloutpropagandawar.Thefascistagendawouldbecloaked under a false banner of patriotism with a new goddess for America to worship. Lady Liberty, the symbol of Americanfreedomsincecolonialtimes,wouldbesavagelybrutalizedintheprocess. Before looking at this transformation of fascism, one needs an understanding of the extent of the fascist infiltrationintotheAmericansocietyofthetime.Toconveyasenseoftheextentoftheprofascistinfiltration, thefollowingexamplewillsuffice.InNovember1940,FDRsetasideaweekdeclaringittobeNationalBible Week.TheNationalBibleAssociationorganizedthecelebrationsandtheeventhascontinuedeversince.Sucha groupwouldappeartoberatherinnocuousandwholesome,butallisnotwhatitappears.TheNationalBible AssociationhadanelitistagendaandwasrootedintheNationalCommitteeforReligiousRecoveryfoundedin 1940byNewYorkbusinessinterests. NewsweekdescribedtheNationalCommitteeasagroupofafewWall Streeters.In1941,theNationalCommitteechangeditsnametothatofTheLaymensNationalCommittee. ThefirstchairmanoftheNationalCommitteeforReligiousRecoverywasLambertFairchild.Hisfollowing wordscanbestdescribetheagendaoftheNationalCommittee. For God and Country youre going to see religion and business formed into a solid phalanx. Let no rabblerousing communist tell you anything else, you securityholders who want security for your holdings.[15] The reader should note the fusion of business interests with religion in those words. It provides a common theme with the conversion of nativist groups to groups that adopted fascism at the heart of their ideology. AlthoughsimilartotheparticipationofreligiousgroupsintheRedScareof1919,itismuchbroader.During the Red Scare the nativist religious elements remained largely independent from corporate funding. This conversionfromnativismtofascisminvolvedadirectlinkwithbusinessfundingandfascists. Fairchild had close ties with several fascist organizations including the American Bund, the Christian MobilizersandtheChristianFront.After NewsweekexposedFairchildsproNaziassociations,hewasreplaced with Howard Kiroack, who also had several ties with profascist groups. The full extent of both individuals involvementcanbefoundinCarlsonsbook.[16]In1945,thegrouppresentedanAnnualAwardofMerittothe profascistnewspapermanWilliamRandolphHearst. The National Bible Association has maintained close ties with the elite as evidenced from its list of chairmen over the years. Past chairmen have included: William Grede (Grede Foundation), Charles Hook

(Armco Steel), Edward Werle (New York Stock Exchange), J. Peter Grace (W.R. Grace & Co) C. Fred Fetterolf (Alcoa) and Richard DeVos (Amway) among others. In other words, most of the past directors were CEOs of largecorporationsratherthanprominentreligiousleaders. Thisexampleoffascistfoundingareligiousgroupisindicativeoftheextentofthefascistinfluencewithin the United States at the time. No organization or institution was free from fascist infiltration. After the Klan formedanalliancewiththeAmericanBund,theKlanurgeditsmemberstojoinunionsinanefforttoinstigate strikesthatwouldstopwarproduction.ThepressandevenCongresshadtheirshareofnativefascists. WiththerealpowerofthefascistmovementintheUnitedStatesbeingtheleadersofcorporateAmerica andtheirWallStreetcronies,theevolutionoffascismtooktwopredictableforms.Inone,itbecamevirulently antiunionandintheother,itbecamefanaticallyanticommunist.Thistransformationoffascismcameabout largelythroughvariousgroupsfinancedbytheleadersofcorporateAmerica.Financialsupportfromcorporate America was provided to all types of fascist groups ranging from the extremely violent Black Legion to the moresubduedAmericaFirstgroup. Mostofthevariousfascistgroupsremainedactiveduringthewarandcontinuedtoreceivefundingfrom theleadersofcorporateAmerica.AllwouldfindaidesinhelpingtofurtherthefascistcausewithinAmericain thepress,inCongressandinvariousgovernmentagencies,includingHooversFBI. To understand this transformation of fascism into the mainstream of America society, a brief look at the backgroundofantiunionismisneeded.BothantiunionismandanticommunismgobacktotheendofWWI andareprobablyuniquelyAmericanastheyaregroundedinnativismandemigration.Donnerdescribesthis transformationoftheantiunionmovementasfollows: The root of the antisubversive impulse was fed by the menace. Its power strengthened with the passageoftime,bythelatetwentiesitsinfluencehadbecomepervasiveandfolkish.Bolshevismcame over wide areas of the country by Godfearing Americans as the Antichrist come to do eschatological battlewiththechildrenoflight.Aslightlysecularizedversion,widelysharedinruralandsmalltown America, postulated a doomsday conflict between decent upright folk and radicalismalien, satanic, immoralityincarnate.Theenemywasperceivedwiththekindofretchinghorrorevokedbythebiblical cryUnclean.[2] Unionismcametoberegardedinthesameform.Itwasanalienconceptimportedbylazyanduncleanaliens. ThetrialofSaccoandVanzetticamein1920.DespitestrongalibisfromwitnessesplacingVanzettiatanother locationotherthantherobberylocation,bothmenwerefoundguiltyandsentencedtodeath.Oneoverriding factorthejurycouldnotoverlookwasthepoliticalviewsofVanzetti.[3]Itwasduringthe1930sthatboththe fundamentalreligiousandtheantiCommunistgroupstookonafascistflavor. The roots of antiunionism can be traced back to the Civil War and the Pinkerton Agency. Following the CivilWar,employersusedtheagencyasaweaponagainstthelaborunions.[1]Pinkertonhadthemostsuccess in the 1870s when it smashed the Molly Maguires for the Reading Railroad. It was a short step from labor interventiontolaborespionage.AgenciessuchasPinkertonweretransformedintoaninstitutionalizedtoolfor classwarfare.Withunionismbeinginfluencedbythepoliticalcurrentsoftheday,surveillanceofunionactivity would invariably embrace political targets as well. It became fashionable and politically expedient for pro businesspoliticianstoassociatelaborwithviolence,conspiracyandthecommunistrevolution. Yet,ashasbeenshowninpreviouschapters,muchoftheviolencewasnottheresultoftheunions,butthat of the employers. It was the employers that stockpiled tear gas and Thompson submachine guns; it was employersthaturgedthelocalsheriffintomurderingtheIWWmembersinEverett,Washingtonanditwasthe employersthatinstigatedtheviolenceinLawrence,Massachusetts. Beforelookingfurtherattheevolutionoffascisminthe1940s,oneneedstofirstlookatthosethataided the fascists either knowingly or unwittingly. There were powerful forces at work behind the scenes that protected the fascists. Like Germany where the leaders of the large corporations in a backroom deal placed Hitlerinthechancelleryoffice,itwastheleadersofcorporateAmericawhowieldedsuchunbridledpowerthat theycouldattemptaplotagainstFDRandinstallafascistgovernment.Althoughtheparticipantswereknown andtheevidencedamning,Rooseveltwasleftvirtuallypowerlesstobringtheplotterstojusticeandintheend noarrestsweremade. InthepreviouschaptertherolesofvariousmembersofCongresswereexposed.Thefollowingchapterwill lookattheroleofWallStreetinaidingNaziwarcriminals.Thischapterwillfocusontheevolutionoffascism

and the roles of others in aiding the fascists to escape from charges of sedition and treason. Martin Dies, as showninthepreviouschapter,effectivelysabotagedthecongressionalinvestigationsoffascists. The only other government agency with a role in domestic investigations was the FBI, led by the patron saint of the right wing, J. Edgar Hoover. Enough ink has been used already in detailing the racist and anti SemiticviewsofHooversohisracismwillnotbediscussedfurther;nevertheless,muchmysterystillsurrounds the Hoover mystique and his role in fascism during the war years. Hoover was always known to be overly ambitiousinseekingpowerandcontrol.Hisfirstrealexperiencecamewiththeforerunnerofthepresentday FBI in the repressive Palmer Raids of the early 1920s. From all evidence, Hoover was an overly enthusiastic participantandperceivedanticommunismandantiunionismasameanstofurtherhiscareerandpositionof power.DonnersumsupHooverstruelegacyasfollows: Outofnativism,anticommunism,superpatriotism,religionandpoliticalconservatism,heforgedan ideologyofcapitalismintheAmericangrain,ablueprintforAmericanfascism.[4] Once again, the reader should note the connection of religion, business and fascism. There is an abundant supplyofevidenceofHooverssympathyforfascism.Hooversmostopenpoliticaltieswaswithrespectable super patriotic conservative groups including various veteran organizations, the Daughters of the American Revolution,theAmericanSecurityCouncil(agroupformedinthemid1950sfrommembersofthreeproNazi groups of the 1930s) and the Freedom Foundation. Hoover also maintained links with various right wing or conservativechurches.[5] Up until the 1940 election Hoover spent more time spying on British agents and communists than on spyingonNaziagents.Asearlyas1939,RoosevelthadallowedBritishagentstowiretapAmericansthatwere believedtobeaidingtheNazicause.MasterspySirWilliamStephenson,betterknownasIntrepid,headedthe Britishoperation.BythetimetheUnitedStateshadenteredthewar,StephensonhaduncoveredawebofNazi Americans financial ties. The wiretaps were, of course, illegal and evidence gathered from the wiretaps was not admissible in court, but they provided the British with a means to stop the flow of American support to Hitler.Roosevelt,however,plannedonreleasingthisinformationtothemediaafterthewar.Asaresultofthe public uproar at finding out many Americans had armed and aided Hitler, full investigations then could be launched. As part of this secret scheme between Roosevelt and British intelligence, Roosevelt would deliberately place suspected individuals in positions in which they could easily be monitored. It was no accidentthat,afterhisappointmenttotheOSS,AllenDullesofficeinNewYorkwasonefloordirectlybelow theBritishwiretappingoffice. WhileRooseveltsrelationshipwithJ.EdgarHooverwasreportedlyharmonious,Rooseveltsschemewith British intelligence betrays a telltale hint that Roosevelt did not trust the G man fully and may have even suspectedhisloyalties. Inthebook,TheLastHero,authorAnthonyCaveBrownrevealsaportionofRooseveltsplantoentrap nativeNazis.InadditiontotheBritishimportexportofficein30RockefellerPlazaweretheofficesofWestern ContinentsCorporation.WesternContinentshadbeenestablishedbyGeorgeMuhleonAugust14,1941.The firm described itself as a research and analysis work and export and import. The Dun and Bradstreet report carriedabriefsynopsisofMuhleslife.ItalsolistedCouncilofForeignRelationsmember,WilliamDiebold,Jr., astreasurer. What the Dun and Bradstreet reported failed to report was that George Muhle was a fictitious name; George Muhle was in fact George Muhle Mertens. A significant part of Mertens life had been omitted in the otherwisecorrectsynopsisofDunandBradstreet.Mertensfrom1926to1927hadbeenheadoftheBureauof Investigations for AntiDemocratic Activities in Germany. The bureau was a government intelligence organizationformedtocounterleftistandrightistorganizationsinGermany.Mertenshadbeendismissedfrom allofhispostsintheNazigovernmentbyGoringandchargedwithhightreason.Forawhilein1936hehad workedfortheCommerzBankinBerlin.MertensentryintotheUnitedStateshadbeenaidedbythecounselor oftheAmericanEmbassyinBerlin,PrentissGilbert.GilberthadjoinedtheScheringCorporationbelievingthat theNazishadsoldittolegitimateowners,onlytofindthatitwasmerelyafrontforcontinuedNaziactivity. MertenshadcontactedtheRooseveltadministrationthroughAdolfBerle,whopassedhimalongtoFrancis McNamara of the Alien Property division of the department of Justice. McNamara, feeling he was bound by legalities, finally put Mertens in contact with Donovan and William Stephenson. It was Stephensons organizationthatputupthefrontmoneytoformWesternContinents.In1942,controlofWesternContinents waspassedfromStephensontoDonovan.

However,bythattimeMertenshadbeenabletomapouttheNazicommercialstructurewithintheUnited States and its relationship with the Sichereitsdienst (SD). Additionally Mertens exposed the Nazi front companiesinSouthAmericaandhowtheyinteractedwiththeirNorthAmericancousins.Moreover,Mertens presenteda detailedexposureofthe SDandthe personalfinancialarrangementsofthefascistFrenchprime ministerPierreLavalandhisassociates,includingtheBankofWorms.[103] ArthurGoldbergconfirmedbeforehisdeaththatRoosevelthadAllenDullesundersurveillance.Duringthe war, Goldberg served in the labor division of the OSS. Thus it seems likely that the OSS or at least one of its branches was involved with Roosevelts secret plan of placing suspicious people that were aiding the Nazi causeundersurveillance.TheinvolvementoftheOSSintheplotwouldhavebeenillegal,asitscharterbanned theOSSfromspyingwithintheUnitedStates.Theevidencewouldhavebeenbannedincourts,butRoosevelt was planning to leak the information to the press and use the public uproar to call for a full investigation. However, the involvement of the OSS would indicate that the plot was much more far reaching and a much greaternumberofNazisympathizerswereunderacarefulwatch. However,theschemewiththeBritishwasoneofmanyinwhichRooseveltreliedonothersforintelligence. OftentimesRooseveltaskedhisfriendstotakeonaspecialmissionforhim.Manyofthesemissionsbyfriends ended in failure, such as Vincent Astors voyage in the South Pacific. Another recruit into FDRs private spy networkwasJohnCarter,awriterforthenewTimemagazine. Joseph Kennedy was another individual, like Dulles, that was placed in a position where he could be watched carefully. Roosevelt had dispatched the Irishman to England as an ambassador. Churchills son, Randolph,confirmedKennedywasunderelectronicsurveillance.Thesurveillancerevealedthatalowlycode clerk named Tyler Kent had passed secret documents to Anna Wolkoff. Wolkoff would then pass the information on to the Italian foreign minister who would forward it on to the Nazi foreign office. Kent, an American citizen, was tried in secret in the Old Bailey on October 23, 1940. He was sentenced to seven years.[100] HooversspyingontheBritishwasmoreofafencesittingmaneuveronhispart.Itwasapositionthatleft him largely neutral in favor of the Nazis. This fencesitting by Hoover was due to his overly ambitious aspirations.LoftusreportsthatthefascistforceswithintheRepublicanPartyhadofferedHoovertheposition of Attorney General, a position he coveted once Roosevelt had been defeated in the 1940 election.[71] With Roosevelts reelection Hoover had to hurry to mend fences with the White House by offering files on Nazi sympathizers. However, Hoover had spent so much time spying on the British and chasing suspected communists that he had no central index of suspected proNazis. Hoover then went begging to the Anti DefamationLeagueforitsrecords.TheBritishofcoursehadbetterfiles,butrefusedtosharethemwithHoover and the FBI fearing that the right wing elements within the bureau would leak information of their wiretap operation.Thus,thetopintelligenceserviceoftheworldatthetime,MI6believedtheFBIwasinfestedwith NazisorNazisympathizers. Many have attributed Hoovers opposition and refusal to cooperate with the OSS to his overly ambitious aims for the FBI. In reality, it was the thin skin of Hoover and his cunning ability to hold a grudge. Rather HooversoppositiontotheOSSstemsfromthe1920s.Duringthe1920s,CoolidgeappointedWilliamDonovan tothepositionofAssistantAttorneyGeneral.DuringhistenureintheDepartmentofJustice,Donovanbecame awareofHooverswiretappingofpoliticianstelephonesandhauledtheyoungHooverbeforeAttorneyGeneral Stone.Hooverwasnearlyfiredovertheincident.Hooverneverforgotwhoembarrassedhim.[85] However,evenmoredamagingwasHooverssabotageandobstructionofthefledgingintelligencenetwork priortoandduringthewar,muchofwhichwascorroboratedbyDuskoPopov,aBritishmasterspy,whohad earnedtheconfidenceoftheNazisandwasplayingtheroleofadoubleagent.In1941theGermansdispatched himtotheUnitedStatestoreorganizeandruntheirspynetwork.Beingadoubleagent,itwasachanceof a lifetimetodeceivetheNazisonagrandscale.However,HooverdisapprovedofPopovsplayboylifestyleand refusedtocooperateinhelpingtomaintainPopovscover. Evenmoredamning,PopovhadbroughtwithhimimportantintelligencefromGermany,intelligencethat includedtheJapaneseinterestinthedefensesandfortificationsofPearlHarbor.Thisinformationwasreceived just four months before the bombing of Pearl Harbor. Hoover was hardly equipped to understand the importanceoftheinformation,norcouldhefindapublicityuseforit.Withnopersonalusefortheinformation, hepromptlyburiedthereportwithoutforwardingittotheWarDepartmentortheWhiteHouse.[6] IncludedwithinthedocumentswasinformationabouttheGermanmicrodot.Thisinformationwasuseful forpublicityandinApril1946,Hooverpublishedanarticlein TheReadersDigestclaimingcreditforcapturing

thesecretofthemicrodotfromanenemyspy.Noticethelie,aBritishagentgaveittohim.Moreegregiously, thearticlecontainedadiagramthatexposedPopovssource,aBraziliandiplomat. The reader should note that The Readers Digesthas always held an extreme right wing bias, so much so thatGeorgeSeldesinFactsandFascismdevotedanentirechapterto The Readers Digest.[7]Seldescharged DewittWallace,theownerofTheReadersDigest,withtellinghisstaffthathedidnotwantHitlerdefeated,that theeditorwasaproHitleritefromtheHearstpapersandthat The Readers Digesthasconsistentlypublished antiunionandfascistpropaganda.[8]ThefollowingquotefromFactsandFascismsumsupSeldesopinionof TheReadersDigestanditsowner. Itpretendstobeanimpartialreprintmagazine,selectingthebestitemsfromallothers,butitisinfact a skillfully manipulated publication spreading the reactionary views of a powerful nobody named DeWittWallace.DeWittWallaceiseitheraknaveorafool.Eitherheissostupidthathedoesntknow thatheisspreadingfascism,orheisaMachiavellianknavewhohasdevisedawonderfulandsinister method,farsuperiortoanyknowntoHerrGoebbels.[9] Hoover apparently saw nothing wrong with the Nazis, either politically or morally. He cooperated with top NaziofficialsalmosttothedayofthebombingofPearlHarbor.HoovercooperatedupuntilDecember4,1941, threedaysbeforethebombingofPearlHarborwithInterpol,anagencythatwascontrolledatthetimebythe Nazisandthen,onlyattheurgingofothertopFBIexecutives,broketheassociation.AdditionallytheFBIstop intelligenceofficerduringthewarandupuntil1954wasD.MiltonLadd,whoinallseriousnessclaimedFDR wasaCominternagent.[10] In short the top echelon of the FBI saw no danger from fascism but maintained a visceral hatred of communism and Russia as well as of FDR, the New Deal and liberalism. Thus, the FBIs policy under Hoover duringthewaryearswasopenlyantagonisticoftheRussianally,andliberalismingeneral,includingtheNew Deal.NoattemptwasmadebytheAttorneyGeneraloranyoneelsefromtheDepartmentofJusticetomuzzle Hoover.HooverspropensityformaintainingfilesonhisenemiesinCongressandthroughouttheentirefederal bureaucracywaswellknown.ItseemscertainthatHooverwastapinghisenemiesandpotentialenemiestoa far greater extent than is known. As an example, Hoover maintained a file on Frank Murphy over a tenyear periodthatcontainedderogatoryitemsfromhisprivatelife.MurphywasappointedAttorneyGeneralin1938. Thuswithhisvastsecretfiles,HooverwasabletotransformtheFBIintoahugepropagandamachine.Even more demonic, Hoover was solely responsible for transforming the crimefighting agency into a domestic intelligenceoperationwithagutlevelhateoftheleft.From1940to1945,Hoovergavesomefiftyspeecheson thedangersofcommunism,manyofthemopenlycriticalofhissuperiorsandtheirvalues.Ineffect,hewasable totransformtheFBIintoavastsystemofpublicopinionformation.[11] Thereadershouldrecallthatthroughouthislifetime,Hooversfavoritewhippingboywascommunists.He supportedJoeMcCarthyswitchhuntsoftheearly1950s.Likewise,Hooverdesperatelytriedtoassociatethe civilrightsleadersofthe1960sandtheVietnamWarprotestorswithcommunism.TheFBIspersecutionofthe leftinthe60sthroughitsCOINTELPROoperationwillbedetailedinalaterchapter.ButjustlikethePalmer Raids, the effect of such operations depleted the left of leadership and left a vacuum of moderating forces, allowingfascismtoriseupinthe1930sandagaininthe1980s.InanyothercountryoftheworldthePalmer Raids,theMcCarthywitchhuntsandCOINTELPROwouldbecondemnedaspurges. Nor can the role of the media be ignored in any of these purges. As already noted the media fanned the flames of red baiting in the 1920s and in the 60s, the media killed the story of COINTELPRO by a lack of reporting.Eventoday,themediaisstillcontentoncastingMcCarthyinaroleofapatriotinsteadofpowermad tyrant.Theendresultsofallhaveledtoawasteddecadeofpoliticalrepressionandthegrowthofcorporate power. With such antagonistic views from the director as well as from the top echelon of the FBI, the pursuit of fascistsandseditionistssufferedimmensely.WiththeDepartmentofJusticehandicappedbytheFBIslackof interestinfascists,mostofthosebroughttotrialforseditionwentfree.Inaddition,thosewerejustthelittle guys;thepowerandmoneybehindthemwasneverexposed,nordidtheFBIhaveanyinterestininvestigating theleadersandmoneyusedtosupportthefascistgroups.Therewouldbenomassarrestoffascistsduringthe war,unlikethemassarrestsofthePalmerRaidsfollowingWWIorinthefollowingMcCarthyera. Hoovers efforts to spread propaganda to the nation extended beyond the FBI. In the 1940s Hoover fed informationtoFatherJohnF.Cronin.Duringthe1940sCroninwastheassistantdirectoroftheSocialAction Department of the National Catholic Welfare Conference. With Hoovers aid, he became an expert on

communism. Cronin later became a close associate of Richard Nixon. Cronin was secretly retained by the Chamber of Commerce to write and distribute pamphlets critical of unions, communism and more generally liberalism. The 1947 pamphlet, Communism Within the Labor Movement led to the drive requiring union leaders to execute a noncommunist affidavit.[12] The reader should not harbor the mistaken belief that the FBIisacrimefightingagency.Itisnotnorhasiteverbeensuch.IthasalwaysbeenAmericasGestapowitha missiontodestroytheleft.ThatrecordextendsfromthePalmerRaidstoCOINTELPROofthe1960sandeven uptothepresentday. Another individual that was instrumental in aiding the fascists was H. Ralph Burton, chief counsel to the HousesMilitaryAffairsCommittee.BurtonwasaracistandanantiSemiticwithalonghistoryofassociations withfascists.AtonepointhewasthelawyerforWilliamLudecke,who braggedhe wasHitlers numbertwo Nazi in the United States. He was special counsel to the DAR during their flagrant red baiting days, a close associateofWalterSteele,editorofthefascistNationalRepublic. In the mid 1930s Burton was general counsel for Father Coughlins National Union of Social Justice in Maryland.Burtonssonlikewisehadcloseassociationswithfascists.HissonRobertwasaguestfrequentlyat theJapaneseEmbassyandwasobservedfrequentlyinthecompanyofotherNazisundersurveillance.In1939 Burton was an investigator for the WPA subcommittee and was determined to show that the WPA was controlledbyandrunforthebenefitoftheJews.ThereaderneedstoaskhimselfhowapersonsuchasBurton withsomanyconnectionstoknownfascistsgottobethechiefcounselfortheMilitaryAffairsCommitteewhen thecountrywasatwaragainsttheNazis. WhileheservedintheMilitaryAffairsCommittee,Burtonproceededtomakehimselfathorninthesideof Army officials. He would scan lists of draft deferments skipping over ethnic surnames of Irish and other EuropeansurnameslookingforJewishsurnames.Burtonwouldthencallthelocaldraftboarddemandingthat Jewsbedrafted. BurtonsrealdamagewasinthewreckingoftheArmysOrientationCourseaftertheissueofProgram#64. TheOrientationCoursewassetuptoteachrecruitswhattheywerefightingforandtocounteractthefascist propaganda circulating at the time. At first, the Orientation Course was general in nature, but as more and more recruits demanded more definitive information, it became specialized. Program #64 contained the followingdefinitionoffascism. Ifwedontunderstandfascismandrecognizewhenweseeit,itmightcropupagainunderanother labelandcauseanotherwar.FascismisawaytorunacountryitsthewayItalywasrun,andtheway GermanyandJapanarerun.Fascismisthepreciseoppositeofdemocracy.Thepeoplerundemocratic governments,butfascistgovernmentrunthepeople. Fascism is government by the few and for the few. The objective is seizure and control of the economic,political,social,andculturallifeofthestate.Why?Thedemocraticwayoflifeinterfereswith their methods and desires for: 1. Conducting business; 2. Living with their fellowmen; 3 Having the finalsayinmattersconcerningothersaswellasthemselves. The basic principles of democracy stand in the way of their desires; hencedemocracy must go! Anyonewhoisnotamemberoftheirinnerganghastodowhathestold.Theypermitnocivilliberties, noequalitybeforethelaw.Theymaketheirownrulesandchangethemwhentheychoose.Ifyoudont likeit,itsT.S. They maintain themselves in power by use of force combined with propaganda based on primitive ideasofbloodandracebyskillfulmanipulationoffearandhate,andbyfalsepromisesofsecurity.The propagandaglorifieswarandinsistsitissmartandrealistictobepitilessandviolent.[41] It is hard to imagine that such a statement caused an outburst of protest on Capitol Hill. Indignant speeches weremadeontheflooroftheHouse.ClareHoffmanofMichiganandJohnRankinofMississippiwereoutraged overProgram#64,aswereotherprofascistmembers.Theendeffectofsuchoutburstsofindignationfromthe pompous asses aligned with the fascists on Capitol Hill was the destruction of the top rated Orientation Courses.Ineffect,theprofascistsinCongressdidnotwanttheGIstoknowthetruthofwhattheywerefighting anddyingfor. Thereadershouldbeawareofonecontributingfactorduringthistime;thelackofeducationasitstresses the need for such programs as the Armys Orientation Courses at the time. In 1947, the average level of education was only 8.6 years, 75% had not completed high school. In 1947, only 19% of the voters had a

generallycorrectviewoftheWagneractaccordingtoaGalluppoll.Another69%simplydidntknowandthe remaindergavewronganswers. Evenby1951,onlyeightpercentoftheadultscouldproperlydefinethemeaningsofmonopoly,antitrust suit, the Sherman Act and interlocking directories.[27] The low level of education left 80% highly subject to anyonespropaganda.Inshort,themajorityofthevotersweredupesforwhoevercouldshouttheloudest.The same profascist block in Congress would soon replace the Orientation Course with an anticommunism program.Onceagain,wecanseehowtheroleoftheopenlyproNazipressanddemagogueslikeJoeMcCarthy couldrisetosuchlevelsofsuccess.

Part 2: Rainbow 5 and the Great Sit Down Strike

Justasthesupportforfascismcrystallizedamongthenativistgroupsduringthewaryears,sodidthesupport for fascism among the isolationist members of Congress. In the previous chapter it was discussed how the removalofMaloneyasprosecutoroftheseditionistsbyWheelerandtheprofascistCongressmencontributed tothefailingofthetrialsofeventheminorfascists.FatherCoughlinwasnotevenindicted,alongwithmany others.However,itwasontheeveofwarwithGermanythatWheelerrevealedhimselfasatraitorandafascist. ForitwasonDecember4,1941thattheprofascist Chicago Tribuneanditssisterpublication, The Washington TimesHerald,printedtheplansforthetopsecretRainbow5Plan. Rainbow 5 was the battle plan developed by the military in case war broke out. Publishing the plan or leaking information of the plan would be the equivalent of publishing or leaking the battle order of the Pentagon during the Cold War. Unquestionably, the leaking of such a plan was an act of treason. In Hitlers speechdeclaringwaragainsttheUnitedStatesonDecember11,1941thefinalstrawhelistedwasasfollows: With no attempt at an official denial, there has now been revealed in America President Roosevelts plan by which, at the latest in 1943, Germany and Italy are to be attacked in Europe by military means.[43] Amazingasitmayseem,despiteanFBIinvestigation,noonewaschargedwithtreasonorseditionnot The ChicagoTribune,notWheelerandnottheArmyofficerthatdeliveredthepaperstoWheeler.Thereadershould rememberthiswasthebattleplanincasewarbrokeout;itwastopsecretandlessthanadozencopiesofthe reportwereeverproduced. The author of the report was Colonel Albert Wedemeyer. Wedemeyer had been educated at the German War College. While in Berlin, he rented an apartment with a memberoftheNaziParty.WedemeyerbecameclosefriendsinBerlinwithGeneralLudwig Beck,chiefoftheGermanGeneralStaff.WedemeyerwasfriendswithLindberghandacted ashisinterpreterwhileLindberghtouredGermany.LikewiseWedemeyerwasclosefriends withGeneralRobertWoods,thepresidentoftheAmericaFirstgroup.[44]Wedemeyerhad evenattendedseveralmeetingsoftheAmericaFirstgroup,despiteitsprofascistandanti Albert Wedemeyer waragenda. Hoover was convinced that it was Wedemeyer who leaked the plans to Wheeler. The reader should also notethatReaganresurrectedWedemeyerscareerasaspecialmilitaryadviserinthe1980s.Thisisanotherof the many seemingly innocent connections between Reagan and the Nazis. Taken singularly, one could easily dismissitasanerrorinjudgment.However,takencollectively,itleavesReaganaseitherthedumbestsonofa bitchtoeverwalktheearthoradamnedNazi.[45] OneclueastohowthefileswereleakedcomesinthebookAManCalledIntrepid.InthatbookSirWilliam impliesthathewasauthorizedtoleaktheplan.[46]Asalreadymentionedabove,FDRwasallowingtheBritish to keep watch of certain characters who were known to be friendly with the Nazis, particularly those associatedwithWallStreet.Inhisplantotrapthefascists,Rooseveltwouldappointindividualsfriendlywith theNazistopositionsofpowersotheycouldbemonitored.Followingthewar,Rooseveltplannedonleaking the information to the press. With the resulting public outrage over their actions, trials could then be conductedforthoseguiltyofsabotagingthewareffortandaidingtheNazis. Two of the individuals that were appointed so they could be monitored were Allen Dulles and Nelson Rockefeller. FDRs plan was to charge them with treason and sedition following the war. Wheeler may very wellhavebeenanotherbeingwatched.WithWheelerstiestotheRockefellersthroughAnaconda,acompany thatdeliveredsubstandardcopperwiretobothouralliesandourownmilitary,itseemscertainthatRoosevelt mayhavehadsomebigfishtofryifhehadlivedpasttheendofthewar.

By leaking the files to The Chicago Tribune, Wheeler assured they would be published. The Tribune was openly profascist before the bombing of Pearl Harbor and rabidly opposed to Roosevelt. The reader should recall from the previous chapter that The Chicago Tribune was later charged with treason for publishing the namesoftheshipsinvolvedinthebattleoftheCoralSea. Wedemeyerscareer,however,deservesmorescrutiny.Wedemeyerwaspartofamilitarycirclethatwas rabidlyantiSemitic.AfewyearsfollowingthewarWedemeyer,inalettertohisclosefriend,retiredcolonel TrumanSmith,wrotethattheBritish,Zionists,andCommunistsmadeAmericasentryintothewarinevitable. LaterWedemeyerstatedthatmostofthepeopleassociatedwithcommunismintheearlydayswereJews. HemadethefurtherclaimthatRooseveltsJewishadvisersdideverythingpossibletospreadvenomand hatred against the Nazis. Wedemeyer stated that it was during his attendance at the German War College in 1936 that his eyes were opened to the number of Jews in the American government by reading the Die FrankfurterZietungandDieBerliner.TheNaziscontrolledbothpapers.[72] In 1937, Wedemeyer tied the shortage of food in Germany to the Jewish question. Using the embassys attachstationery,Wedemeyerwrotefriendsdismissingthe ideathatthefoodshortagewascausedbypoor weatherandcropfailures.HeclaimedthatJewsinothercountrieshadboughtuptheenormousquantitiesof foodstuffsandhadintentionallydivertedtheshipmentsfromGermany. As late as 1958, Wedemeyer was still voicing proNazi opinions. He completely ignored the Nazis racial ideology. He described lebensraum as merely a national movement to win living space. In his arguments, Wedemeyer used the same historical analogies that the Nazi propagandists used. He compared the German invasionsandexpansionseastwardwiththeAmericanexpansionwestward. ThetwopeoplewiththelargestinfluenceonWedemeyerscareerwereSmithandWedemeyersfatherin law,deputychiefofstaffStanleyEmbrick.Embrickwasthemostoutspokenisolationistgeneralin1939. A brief look at Wedemeyers circle of friends within the military provides a worthwhile effort as to the opinions of many of the top military officers before the war. Many of those officers harbored profascist leaningsandarabidhateofJews.Suchviewshadbeenengrainedintotheofficerssincethe1920sandwould affecthowthewarwasconductedaswellasthepostwarperiod. In1939,SmithwastheattachinBerlinandwarnedagainstallowingtheJewishquestiontointerferewith GermanAmerican relations. After returning to Washington in 1939, Smith became General George C. MarsahllsGermanspecialist.SmithconferredextensivelywithLindbergh,asdidColonelHamilton,theheadof G2sGermansection.LindberghsisolationistviewswerewellknownatthetimeandLindberghcontinuedhis isolationistradiobroadcasts.TwoweeksaftertheGermaninvasionofPoland,Smithdelivereda confidential message from Roosevelt offering Lindbergh a cabinet position in aviation if he would cease his radio broadcasts.BothSmithandLindberghscoffedatRooseveltsoffer. InNovemberof1939,SmithsassistantattachinBerlin,MajorPercyBlack,returnedtoWashington.Black had accompanied the German army into Poland. Black, like Smith, talked glowingly of the prospect for a negotiatedsettlement.EvenmoredisturbingwasBlacksdiscountingtheNazibrutality.InMay1940theNazi invasionofFranceprovedBlackwrong. Wedemeyer opposed the creation of the state of Israel, as did Black and other members of his circle of friends. After retiring, Wedemeyer was a writer for the John Birch Society and a member of the American SecurityCouncil,agroupformedinthe1950sfromtheremnantsofthreeprofascistgroupsofthe1930s. ThemostastonishingaspectofthepublishingoftheRainbowPlanswasthelackofchargesoftreason,even after the end of the war. Most Americans are unaware of the plans ever having been leaked. However, once againoneseesthatthehighlevelfascistswithintheUnitedStateswereimmunefromprosecution.Thebrief look at Wedemeyer and his circle of friends reveal that even within the Army there was a group of officers sympathetictothefascistcause. However, the majority of the support for fascism and opposition to the war came from the leaders of corporateAmerica.ItwastheleadersofcorporateAmericathatwerebehindtheplottoseizetheWhiteHouse andinstallafascistgovernment.ItwastheleadersofcorporateAmericathatwerebuildingtheThirdReichs warmachineasthestatementfromtheUSAmbassadortoGermany,WilliamDodd,noted.Anditwouldbethe leadersofcorporateAmericathatwentonasitdownstriketopreventtheproductionofwarmunitions,first fortheLendLeaseprogram,andthenforourowntroopsoncewarwasdeclared. Lookingcloselyattheyearsfrom1940to1945,therewasadramaticevolutioninthetacticsemployedby thenativefascistswithinAmerica.Thefirstphaseofthisevolutionwasmarkedbythesitdownstrikeduring thesummerof1940.Priortothistimeandthroughouttheremainderof1940,corporateAmericaopposedthe

entryoftheUnitedStatesintheEuropeanwar.ConsiderableoppositionwasraisedagainstRooseveltsLend LeaseprogramandseveralcontractstosupplyBritainwithwarmunitionswererejectedoutrightbycorporate America.OnesuchexamplebeingtherejectionofacontracttobuildRollsRoyceenginesfortheRAFbyFord MotorCompany.OthercorporationshidbehindthetermsofthecartelagreementswithI.G.Farbenandother German corporations. Such was the case of du Pont furnishing the British with inferior cartridges lacking tetrazine.However,byfarthemostdamagingaspectofthisphasewasthesitdownstrikeof1940.Abrieflook atthesitdownstrikerevealsthecomplacencyofcorporateAmericatowardsNaziGermany. One of the most pressing needs with the ominous clouds of war on the horizon was for aircraft. Aircraft productionrequiredmassiveamountsofaluminum.However,aluminumproductionintheUnitedStateswas controlledbyavirtualmonopolyheldbyAlcoa.ThereadershouldrecallthatAlcoasignedacartelagreement throughasleightofhandwithGermaninterestsinthelate1920s.AlcoawascontrolledandownedbyAndrew Mellon,oneoftheparticipantsintheplotagainstFDR.Alcoasteadfastlydelayedincreasingproduction.George SeldeshadthistosayaboutAlcoa: If America loses the war it can thank the Aluminum Corporation of America.Secretary of Interior HaroldIckes,June26,1941. ByitscartelagreementwithI.G.Farben,controlledbyHitler,Alcoasabotagedthealuminumprogram oftheUSairforce.TheTrumanCommitteeheardtestimonythatAlcoasrepresentative,A.H.Bunker,a dollarayearheadofthealuminumsectionoftheOPM,preventedworkonour$600,000,000aluminum expansionprogram.CongressmanPierceofOregonsaidinMay1941:Todate137daysor37%ofa years production has been wasted in the effort to protect Alcoas monopolistic position. This delay translatedintoplanesmeans10,000fightersor1,665bombers. This of course is the answer to the boys on Guadalcanal and in Tunisia and not absenteeism, the 48 hourweekorwageincreasestomeetthecostofliving.[99] NotonlydidAlcoaownalmostalloftheplantsthatproducedaluminum,butitalsocontrolledmostofthehigh grade bauxite ore. Aluminum production requires massive amounts of electric power and again Alcoa controlledmuchofthehydropower.InaradiobroadcastonMarch22,1941theAssistantSecretaryofState, AdolfBerledeclared: The Lord Almighty so built the continent of North America that most of the water in the northeast quarterofthecontinentformsstreamsandriverswhichflowintothathugecollectionofreservoirswe call the Great Lakes. This is an enormous amount of water. All of it funnels out to the sea through a singlegreatmillrace,whichistheSt.LawrenceRiver.Ifthatwateriseverharnessed,itwillmakethe largestandcheapestsupplyofelectricityavailableanywhereintheworld.[74] However,theSt.Lawrencewasunharnessedandwouldremainso.AndrewMellonownedallofthelandonthe AmericansideandmuchofthelandontheCanadiansideoftheInternationalRapidsstretch.Alongthiscourse of49milestheriverfell92feetandcouldbeusedtogenerateelectricityatacostofonetenthofacentper kilowatthour. Only last minute fights by New York governors, Charles Hughes in 1907 and Alfred Smith in 1926 prevented Alcoa from exercising absolute control over it. By 1940 Roosevelt had still failed to gain passage in Congress of a treaty negotiated by Herbert Hoover for the joint development of the St. Lawrence. TheAlcoalobbywastoostrongtobreak.BothOntarioandNewYorkdrewelectricalpowerfromNiagara.The Canadian power was generated by a publicly owned system and charged $0.85 a kilowatthour. On the New York side the power was produced by the private Niagara Hudson combine and the cost was $1.59 for a kilowatthour.[75] TheexampleaboveofthecombinegougingNewYorkersatalmosttwicetherateofcostoftheCanadian public utility should serve to remind us that some services and materials are far too valuable to ever be entrusted to private hands and should remain in the hands of local public utilities, especially in light of the contrived energy shortage in California during the winter months of 2001. This price gouging was miniscule compared to the profits that Alcoa would generate during the war. In a long antitrust suit in 1940, a government brief stated that Alcoas highest profits came from the production of sheets of 24S and XA24S alloys,bothofwhichwereusedextensivelyinaircraft.AccordingtotheJusticeDepartment,asthesolesupplier ofthesealloys,Alcoawasrealizingaprofitof181%overcosts.[76]ItshouldbenotedthatAlcoasignedacartel agreement with a German corporation in the 1920s that allowed Germany to produce 165,600 tons of aluminum in 1938 while the total United States production was only 103,129 tons. Additionally, Alcoa had invested heavily in plants in Norway, Hungary, Italy and Spain, two of which were outright fascist countries

and two of which had fallen under the boot of the Third Reich. No investigation of Alcoas dealings with the Naziswasevermade. Not only did Mellon, through Alcoa, control the production of aluminum, he sought to prevent all others from entering production through his cronies in the Office of Production and Management (OPM). E.R. Stettinius,chairmanoftheboardofUSSteel,headedtheOPMandwasinchargeofIndustrialMaterialsSection. Stettiniusissuedglowingreportsassuringthatanadequatesupplyofrawmaterialswereavailable.Manyofthe materialssuchasantimony,manganese,mercury,tungsten,nickel,chromiumandtincamefromSouthPacific IslandsandMalayaandwouldbevulnerabletoacutoffofsupply.Norwerethestocksonhandadequatefora twoyearsupply,aspurchasingofthematerialsdidntbeginuntil1940. In May of 1941, the truth of the shortages was brought to light in a report from the Metals Reserve Corporation.Thereportdetailedtheamountpurchased,theamountintransitandtheamountdelivered.Inthe caseofmica,thereportshowedapurchaseof500tonsfromIndia,butasofthedateofthereportnonehad beenshipped.Inthecaseofzinc,avitalmaterialinproducingthebrasscartridges,thereportwasdismal.The onlyamountorderedwasfromNewfoundlandfor50,000tonsorlessthanamonthssupply.Zincwasbeing consumed at 70,000 tons a month or 7,000 tons more than domestic production. A thousand rounds of 30 caliber shells would consume 16 pounds of zinc, for 75mm shells a thousand rounds would consume 3800 poundsofzinc.Duringthewar,productionofsmallarmsammunitionreachedfourbillionroundsamonth.[77] Perhaps,thebestexampleofhowthedollarayearmenlikeStettiniushinderedthewareffortisthecaseof aluminum.Attheonsetofthewar,therewasonlyonealuminumrefiner,Alcoa.In1941,Alcoacouldproduce, under the best set of circumstances, 642 million pounds of aluminum in a year. With Roosevelts plan to producebombers,thenationrequired1.6billionpoundsayear. At the time, Reynolds Aluminum was a small upstart company in comparison to Alcoa. Reynolds was merely a fabricator of aluminum products and had never produced a single ingot of virgin aluminum. Foreseeing the shortage in aluminum and unable to obtain a full supply of aluminum from Alcoa, Reynolds agreedtomortgageallofhispropertytostartrefininginhisownplantsifthegovernmentwouldlendhimthe money.TheReconstructionFinanceCorporation(RFC)approvedhisloanwithin30daysforfifteenmillionand laterincreasedittotwentymillion.[78] Although, Reynolds soon had a plant at Lister, Alabama that produced forty million pounds and another plant in Longview, Washington of sixty million, considerable pressure was brought against Reynolds loan application. W. Averill Harriman and a delegation of War Department Officials pressured Secretary Ickes to deny Reynolds an allocation of electrical power from Bonneville. Stettinius and his consultant, Grenville Holden,opposedtheentryofReynoldsintotherefiningofaluminumvigorouslybehindthescenes.[79] Although Reynolds persevered over the objections and backroom dealings of Stettinius and Holden with the help of Ickes, others failed. To protect Alcoa, Stettinius and Holden blocked others from producing aluminum and from using new methods. In March 1941 the Bohn Aluminum Company, seeking a loan to produce aluminum, was denied by Holden. Although OPM had been ladling out millions of dollars to help businessexpandforthewareffort,HoldenrepliedtoBohn:theArmyisnotdisposedtofinanceexpansionof industrialcapacitywithgovernmentfundsaslongasanycompanyispreparedtoexpandwithprivatefunds. However,Holdenwaslikewiseuninterestedinexpandingaluminumproductionevenwhenaprivatecompany fromSwitzerlandsoughttoenterthemarket.[80]Holden,inanefforttoprotectAlcoa,alsoopposedtheuseof lowgradeore.Alcoacontrolledallofthehighgradeore.However,withtheincreaseddemandonaluminum productionforbombers,theonlyNorthAmericansourcewouldbeexhaustedintwoyears. From May 1940 until October, corporate America was engaged in a sitdown strike. Led by the aviation industry, defense contracts were left unsigned until the corporations were granted special tax privileges. Unlikelaborstrikes,thesitdownstrikesofcorporateAmericahadthesupportofthenewsmediaoftheWar and Navy Departments and the new Defense Commission. Strikes by labor were immediately greeted with chargesoftreason.Nostrikeshoweverwerelaunchedagainstanyaviationcorporation,yethardlyanyplanes wereproducedasalreadydiscussedinthepreviouschapter. A look at the figures of ships in service on January 31, 1941 only confirms the serious lack of navy war ships.Inthreeofthefivecategorieslisted,thetotaltonnagefallswoefullyshortofthetonnageCongresshad authorizedin1934.[81] Tonsauthorized1934 Tonsinservice Battleships 525,000 464,300 AircraftCarriers 135,000 134,800

Cruisers 343,770 328,973 Destroyers 190,000 217,390 Submarines 68,298 107,960 Evenmorerevealingastotheinadequacyofthenavysprocurementofwarshipsisadirectcomparisonofour fleetwiththefleetsoftheAxispowers.[82] January1,1941 January1,1943 US Axis US Axis Battleships 15 20 18 28 AircraftCarriers 6 8 7 8 Cruisers 37 75 45 101 Destroyers 159 271 219 325 Submarines 105 284 133 500 Withtheexceptionofdestroyersinthetwoyearperiodof19411943,theUnitedStatesshipbuildingindustry hadbarelyoutpacedthelossessustainedinthefirstyearofthewar.Fortunately,EnglandsRoyalNavywasup tothetaskofrulingtheseas. InMay1940,thefinancialeditorof The New York SunwasastonishedbytheBritish100percentexcess profitstax.CorporateAmericawhichbuiltHitlerswarmachineinviolationoftheTreatyofVersailleswasin nohurrytoarmtheUnitedStatesoritsallies.TheJuly29,1940issueof Barrons Financial Weeklyreported: The attitude of some defense industries that they must be assured of a profit is souring many Washington dispositions, even in the probusiness War and Navy Departments. Unlike the GIs who were drafted and compelled to serve and defend their country for the paltry sumof $21 a month, the aviation industry would reapmillions. In June 1940, Congress revised the VinsonTrammell Act of 1934 to limit profits on competitively bid contractstoeightpercentandtosevenpercentonothercontracts.RooseveltsignedthebillonJune28,1940, butbyJuly10hehadtosurrendertocorporateAmericaanditssitdownstrike. In addition to dropping the limits on profits, corporate America demanded and received legislation that wouldenablecompaniesbuildingnewplantsorequipmenttoamortizethepurchasesinfiveyears.Assistant Secretary of War, Louis Johnson sent out a letter to all plane manufactures asking for work to begin immediately,pointingoutthatworkwouldbedelayedforsixtydaysforthenewbilltopassthroughCongress. Theplanemanufacturerswaited. Evenwiththespecialtaxbreaksgrantedtoindustry,corporateAmericachosetoinvestlittleoftheirown moneyintonewplantsandequipment,choosinginsteadtoletthegovernmentdirectlyfinancetheexpansion. By April 13, 1941, the total amount of private funds invested in the expansion of various defense industries wasminisculeasseeninthetablebelow. TankandVehicles 24% 16% Aircraft GunsandParts 12% Ammunition 6% ShipConstruction 3% Of the 2.8 billion dollars in planned expansion of defense facilities, private capital only accounted for $773,000,000. The average government expenditure for plant expansion was six million dollars, while the average expenditure of private capital under the fiveyear amortization was $60,000. In short corporate America was holding the free world hostage to its whims. The figures in the table above are enough of a testament to bury the myth that private enterprise built America into a Fortress of Democracy. The fact remainsitwasalldonewiththetaxpayersmoneyundertheguidanceoftheRooseveltadministration. Inindustryafterindustry,thestorywasmuchthesameasitwasforaluminum.Inthecriticalmachinetool industry,corporateAmericacontinuedtodragitsfeet,delayingwarproduction.About15millionmanhoursof machine tooling could have been made available by General Motors if it had foregone a model change. If the entire auto industry would have foregone model changes in 1942, over 30 million manhours of machine toolingcouldhavebeenfreedupforthewareffort.However,asstatedinapreviouschapter,GeneralMotors promisedtogiveupamodelchangeandthenpromptlywentaheadwithamodelchangeanyway. AgainstRooseveltscallforfullproduction,surveyaftersurveyfoundmachinetoolssittingidle.According to the March issue of Monthly Labor Review, a publication of the Department of Labor, weekend shutdowns were commonplace. A survey of 45 machine tool plants found only 14 running three shifts and another 19

running two shifts. However, the number of employees working on the second shift was less than twenty percentoftheworkersonthenormaldayshift.Inplantswiththreeshiftsoperating,only25%oftheworkers were employed on the second and third shifts. Officials of the AFL Machinists Union attributed the major obstacletothestrongantiunionismoftheMetalTradeAssociationandtheirfearofhiringnewworkersthat wereprounion.InMay1941aBureauofLaborStatisticsstudyrevealedahighratioofworkersthathadquit in the machine tool industry, reflecting repressive working conditions. In eleven categories of skilled machinists, there were only prospective shortages of labor in four. Further complicating the shortage in machinetoolswasthereluctanceoftheindustrytosubcontractworktosmallshops. Indeed the reluctance of corporate America to subcontract work out to small shops was widespread and protected by the dollar a year men. No better example exists of the Defense Commission ignoring small business existence than the case of Beaver County, Pennsylvania. Community and labor leaders in Beaver County, concerned with the war effort, prepared a sixty page booklet detailing the production facilities available along with the available labor supply and delivered the booklet to Sidney Hillmans division of the Defense Commission that was in charge of labor. This was the only division that was actively interested in farmingoutdefensecontractstosmallfirms. The booklet from Beaver County was ignored. The facilities of Beaver Countys small businesses went unused.TheidlefacilitiesinBeaverCountywerenotunsubstantialinanyregardoftheword.Therewerefive modern machine shops that, combined, could handle large contracts, seven additional plants with partially availableproductionforalloyiron,steel,brassandaluminumcastings.Alsoavailableweresevenpipeandtube mills; two plants which could produce machine tools parts; two plants which could handle metal stampings; fourplantsthatcouldhandlelightsteelfabrication;twoadditionalplantsthatcouldproducerivets,boltsand nuts;fiveplantsthatcouldhandleallkindsofwoodpackagingcratesandmore.ItwasnotuntilMay1941that BeaverCountyreceiveditsfirstsubcontract.Thenthecontractwasforamere$1500fornutsandbolts,despite thepleasfromRoosevelttouseallavailableproductionfacilities. The dollar a year men staffing the Defense Commission and the OPM were not interested in farming out worktosmallfirms.Instead,theysoughttoprotecttheirformerfirms,manyofwhichheldcartelagreements withI.G.Farben.Withastrangleholdonwartimeproduction,thenationwasheldhostagetotheirwhims.By the end of the war only 150 large corporations had operated 80% of the government built war plants. Fifty percentofthegovernmentbuiltplantswereoperatedbyonly31corporations.The100largesthadoperated 75%ofthoseplants.[28] Laborstatisticsconfirmhowthelargestcorporationsusedthewartothedisadvantageofsmallerfirms.In 1939,firmswithlessthan500employeesemployed52percentoftheallmanufacturingworkers.Fiveyears latertheyemployedonly38percent.Corporationsemployingmorethan10,000employeesaccountedforless than13percentofallworkersin1939,butby1944theyaccountedfor31percentoftheworkforce. OnlyinthecaseofaluminumdidtheRFCfinanceacompetitortobreakaproductionmonopolyandthen onlyatthebeginningofthetransformationtowardsawareconomy.By1940withwarraginginEurope,the largecorporationswereinthecatbirdseat.Rooseveltwaspowerlesstoassertcontroloverwarproductionas therepealoftherevisedVinsonTrammellActprovidestestament.Mencouldbedraftedtoservetheircountry; capitalwasexemptfromthedraft.Anyattempttodraftcapitalwouldhavebeenmetwithimmediateclaimsof communismfromtherightwingandproNazigroups.Ineffect,thenationssecuritywasheldhostagebythe samecorporationsthatbuiltHitlerswarmachineandwhoseseniormanagementandownerssupportedmany oftheprofascistsgroups.

Part 3: The Battle for the Home Front

While the bombing of Pearl Harbor caused many of the profascist groups such as America First to go underground or change their tactics, corporate America continued to drag its feet in gearing up for full war timeproduction.Bymid1942thenewswastrulydark.RommelsPanzershadracedacrossNorthAfricaand were within sixty miles of the Nile. On the eastern front, Hitlers forces were at the gates of Stalingrad. The Luftwaffe was pounding London into rubble. Ships from the United States bound for England were disappearingunderthewavesoftheAtlanticatanalarmingrate.ThePhilippineshadfallentotheJapanese. It was at this time, our darkest moment of the war, that the most devastating blow was struck. No ships weresunkinthisassault,noplaneslostandnosoldierwaskilledfromthisblow.Thiswasadifferenttypeof assault.Itwouldopenthethirdfrontofthewaronthehomeshores.ItwasabattleforthemindsofAmericans.

Itwouldbeabattlethatfreepeoplecouldhardlyaffordtolose,forwrappedupinanelectioneeringjingle andcloakedbehindafalseflagofpatriotism,LammotduPonthadconcealedtheveryheartoffascism.Hidden behindthisthinveiloffalsepatriotismoffreeenterprisewastherootoffascism,corporaterule.Thusbegan themostblatantfraudeverperpetratedagainsttheAmericanpeople.IneffectduPonthaddressedupfascism withasmileyfacetoappealtotheAmericanpeople. To accomplish this horrific swindle of freedom and liberty, all resources were to be deployed. It would becomeafullscaleassaultontherightsoftheAmericanpeoplefortheremainderofthecentury.Thiswasthe forgottenthirdfrontofthewar,thebattleforthemindsoftheAmericacitizen.Underthebannerofthisnew feckless goddess of free enterprise, a multiprong attack was launched against our freedoms. One prong would question the patriotism of anyone not subscribing to unbridled corporatism, another prong would attackunionismandthethirdprongwouldbelaunchedagainstcommunism. Itisthiswritersopinionthatthisoftenforgottenevent,launchedbyoneofthemostnotoriousfascistsof histime,isimperativetotheunderstandingoffascisminAmericafollowingthewar,foritclearlymarksthe beginningoftheadoptionofthefascistideologybytherightwinginthecountry.BeforeEisenhowerstroops everstartedtomarchacrossNorthAfricaandbeforetheMarineseverstartedislandhoppingonebloodyatoll afteranothertowardstheJapanesehomeland,athirdfrontofthewarwasragingintheAmericanhomeland forthemindsandcontrolofthepeople.Tragically,theheroic effortsofthewar againstfascismwerelostas quicklyastheThirdReichcrumbledintoashes.WhileourarmieswerevictoriousonthebattlefieldsofEurope andtheSouthPacific,thebattleforthehomelandwouldbelost.Thenewfecklessgoddessoffreeenterprise wouldreplacedemocracyinAmerica.Thewaragainstfascismwouldbelost.Insteadofcorporationsserving thegeneralinterestofsociety,societywouldnowbeforcedtoservethegeneralinterestofcorporations. TheAmericanlexiconwasexpandedin1942,neverbeforehadthetermfreeenterprisebeenused.There isnosuchrightlistedintheConstitution,nordoestheConstitutiongrantanyrightstocorporations.Whilethe foundingfathersbelievedinaneconomybasedoncapitalism,theywerehardlyfoolsenoughtoallowtradeto goonunregulated.Withathirdofthepopulaceatthetimeoftherevolutionbeingformerindenturedservants toBritishcorporations,corporationswerecloselyregulatedasthechapteroncorporatelawdetailed.However, unregulated corporatism was precisely what Du Pont envisioned in his call for free enterprise. The best summary of free enterprise as envisioned by Lammot du Pont comes from his speech before a secretive meeting of the resolution committee for the National Manufacturers Association (NAM) on September 17, 1942. Thewaytoviewtheissueisthis:aretherecommondenominatorsforwinningthewarandthepeace? Ifthereare,then,weshoulddealwithbothin1943.Whatarethey?Wewillwinthewarbyreducing taxes on corporations, high income brackets, and increasing taxes on lower incomes, by removing unionsfromanypowertotellindustryhowtoproduce,howtodealwiththeiremployeesoranything else,bydestroyinganyandallgovernmentagenciesthatstandinthewayoffreeenterprise.[18] Hiswordsareclearlytreasonousashecallsforthedestructionofanygovernmentagencythatmaystandinhis way.ItisthesameagendafollowedbyHitleronassumingpower.Inaddition,asweenterthe21stcentury,itis thesameagendabeingputforwardbytheRepublicansandtherightwingers. Themediaimmediatelybeganextollingthevirtuesoffreeenterpriseandsingingitspraises.Nomention was ever made of the du Pont funding of the proNazi Liberty League or the Black Legion. No mention was madeoftheduPontinvolvementinthefascistplotagainsttheWhiteHouseadecadebefore.Thiswasafull scale assault against the New Deal and responsible government. The timing of this campaign for free enterprise coincided with the upcoming election. The election would reduce the majority of Democrats considerably.Ineffect,itleftCongressunderthecontroloftheRepublicansandconservativeDixiecrats. Throughout the 1920s and into the 1930s the du Ponts and other munitions makers were embroiled in Congressional investigations into war profiteering. Thus as the battle for Midway raged, the du Ponts were already covering up their crimes of war profiteering and their dealings with the Nazis during the war. Once again,nomentionofwarprofiteeringwasevermadeinthemedia.Norwasthereanymentionoftherepressive natureoffreeenterpriseasenvisionedbyduPont. Instead,themajormediachainsflauntedfreeenterpriseasthenewfecklessgoddesstobeworshipped. However, it should be clear after the previous chapter and the beginning of this chapter that the major newspaper chains and media outlets were openly profascist, with the Hearst papers the most notorious, publishing Nazi propaganda unedited. Likewise, the Chamber of Commerce, the American Legion and the

NationalAssociationofManufacturesquicklyadoptedthefalsegoddessoffreeenterprise,particularlyNAM withitsmouthpiece,FultonLewis,broadcastingovertheairwaves.LewiswasoneofHooversmediaalliesand oftentherecipientofleakedinformationfromtheFBIandHoover.Thisbecameastandardformofanattackby Hooverand theFBIagainstagrouporanindividual.Lackinginformationtoconvictaperson,Hooverwould seektodestroytheindividualbyleakingrumorstohispressallies,[20]atacticquicklyadoptedbythelikesof NixonandJoeMcCarthy. Central to propagandizing this message was the National Association of Manufacturers (NAM). Seldes devotestwochaptersinexposingNAManditsmouthpiece,FultonLewis.[17]NAMwasheadedbyFrederickC. Crawford, who during the 1930s was director in Associated Industries, a strikebreaking agency. NAM was investigatedbyatleastthreeCongressionalcommittees.TheGarrettCommitteeexposeditslobbyassecretive and reprehensible. The lobby functioned to defeat Congressmen who opposed its policies of illegal strikebreaking and other activities. The findings of the La Follette Committee were already presented in the previouschapterandwillnotbediscussedfurther.TheOMahoneyInvestigationshowedthat200industrial firmsand50financialfamiliesowned,controlledandruledtheUnitedStates.Ofthesefamilies,thirteenwere themostpowerful. At the same secret meeting of the resolution committee in which du Pont was quoted above, NAM hammered out its agenda for the future. The platform included a fight against any managementlabor committees,whichwereaprominentpartofgettingthewarproductiongoingintherightdirection.Freeing WallStreetfromallrestrictionsanddrivingwomenoutofindustryafterthewarbothfiguredprominentlyin theNAMplatform.ThereadershouldnotetheeeriesimilarityofduPontscallforforcingwomenoutofthe workplacetoHitlersoppositiontowomenintheworkplace. Moredisturbingwasthecallforalaunchingofapropagandaprograminhighschoolsandcollegesandthe elimination of all social programs of the New Deal. Even more ominous was a threat to sabotage war productionandtoundermineRooseveltsprestigeunlessNAMsdemandsfortaxesthatmakethepoorpayfor thewarweremet. AquicklookattheofficersoftheNationalIndustrialInformationCommittee,thepropagandaarmofNAM readslikeawhoswholistoffascists.J.H.Rand,PresidentofRemingtonRand,usednewspaperstopropagate liesaboutbiglaborduringstrikes.WalterD.Fuller,presidentofCurtisPublishing,wasthemanresponsiblefor theprofascistattitudeof The Saturday Evening Post.TheproFrancoandprofascistH.W.Pretis,presidentof ArmstrongCork,waslistedbyAttorneyGeneralJacksonasanunAmerican.HowardPewofSunOil,exposed bySenatorGilletteasthemainsubsidizerofthe Republican PartyinPennsylvania,wasalsoalargefinancial contributortotheSentinels,Crusadersandotherprofascistgroups.Withhisthreattopullabigadcontract, Pew was responsible for the Times going Republican in 1940. Colby Chester and William Warner, respective heads of General Foods and McCalls, headed NAM during the period in which the La Follette investigation foundNAMguiltyofemployingspies. InCongressionalhearingsheldonMarch2,1938,evidencewasenteredshowingthatNAMwascontrolled andfinancedby207firms.LeadingthelistoffirmswereGeneralMotors,duPont,Chrysler,NationalSteeland thePennsylvaniaRailroad.TheleadingcontributorstoNAMwerealsotheleadingcontributorstoanumberof proNazi groups such as the American Liberty League, the Crusaders, the Sentinels of the Republic, and the National Economy League. In the Senate report produced by Senator Black entitled Special Committee to Investigate Lobbying Activities, letters from members of the Sentinels stating: the old line Americans of $1200ayearwantaHitler,theNewDealiscommunist,andtheJewishthreatisarealone.[70]Thereader should consult the appendix in the previous chapter for the list prepared by Senator Black of leaders of corporateAmericaandtheirdonationstovariousfascistgroups. ThepowerbehindNAMwastheSpecialConferenceCommittee.TwelvecorporationsmadeuptheSpecial Conference Committee, a secretive business organization dedicated to destroying unions and promoting the agenda of NAM. They met in the offices of Standard Oil, 30 Rockefeller Plaza. The twelve firms are listed as follows: ATT, Bethlehem Steel, E.I. du Pont de Nemours, General Electric, General Motors, Goodyear Tire, InternationalHarvester,IrvingTrust,StandardOilofNJ,USRubber,UnitedSteal,Westinghouse.[68]Withone possibleexception,allofthecorporationslistedsuppliedtheNaziswitharms. In 1943, Colombian University Professor Robert Brady described the Special Conference Committee as follows: ThemostimportantlineofpolicieswithinNAM,inshort,seemstobetraceabledirectlyorindirectlyto thisinsidecliquewithintheinnercouncilsoftheorganization.Nowhereelseisshownsoclearlythe

dominating positions in the NAM of concerns such as those which are members of the Special ConferenceCommittee.Publicrelationstechniqueswereborn,nurturedandbroughttoflowerwithin theseranks.[69] TheCivilLibertiesreportproducedbyaSenatecommitteeledbyLaFolletteandThomasdescribedtheSpecial Conference Committee as a secret coalition in direct furtherance of the specific forms of company union by ColoradoFuelandIron,theRockefellercorporationinvolvedintheLudlowmassacre. ThethirteenmostpowerfulfamiliesintheUnitedStatesand members of NAMaslistedbySeldes are as follows: Ford, du Pont, Rockefeller, Mellon, McCormick, Hartford, Harkness, Duke, Pew, Pitcairn, Clark, ReynoldsandKress.Ofthese,fivewereinvolvedintheplotofagainstRoosevelt:duPont,Mellon,Pew,Pitcairn andClark.[67]Withthepossibleexceptionofthreeofthesefamilies,allhadcloseconnectionswithfascismand thearmingofHitler. ThereadershouldunderstandthatNAMwasmorethanjustamouthpieceforthefascistelite.Itwasalsoa bridge group between classes. Just as in Germany the real power behind the Nazi movement was the rich financialbackers,butthemassesofbrownshirtscamefromthelowerclasses,thesamewastrueofthefascist movementintheUnitedStates.ThefollowingexampleofhowNAMbridgedthisgapbetweenclasseswiththe BlackLegionandevenmoreimportantlybetweenthenativistgroupsandfascism. ThemembershipoftheBlackLegioninMichigansOaklandCountywaremostlyunskilledandsemiskilled workerswhohadmigratedtotheDetroitareafromthehillcountryofthesouth.Theywereunusedtoanurban environment,theinsecurityandmonotonyoffactorywork,whichrenderedthemeagertojoinanorganization thatpromisedpowerandadventure.ThefollowingquotecharacterizestheaverageBlackLegionmember. He came from a small farm in the south. He had gone through grammar school, though he had not received a high school diploma. Married, the father of two children, working on construction or as unskilledlaborinasteelplantorautoassemblyline,henevercametoreconcilehimselftocitylifeor industrial work. His greatest concern was obtaining and holding a job for his familys sake. To the general insecurity of the times was added the fear that alien labor might displace him. Detroit had a largeimmigrantlaborpopulationandthisofferedfurtherjustificationforthetraditionalnativistdislike ofaliengroups.[30] TheupperlevelsofNAMmadereferencestothealiennatureofunions.CallingunionsunAmericanandanti American,thusplayingontheveryfearsforemostinthemindoftheaveragememberoftheBlackLegion.In thiswayNAMbecameagatewaybetweenclassesandbetweenvariousnativistgroups,withfascismplayingon the fears of the unorganized worker. Nor is this the only example of NAM being a bridge group. The reader should be aware that many of the top John Birch officials, including Robert Welch himself, were officers of NAM.Thisassociationwillberevealedinmoredetailinalaterchapter,inthiscasesettingupagroupoffar rightwingextremistscontrolledbyformerNAMofficialsthatappealedtothepoorandmiddleclass.TheJohn BirchSocietyschainofbookstoresinthelate1950sandearly1960sweredirectedspecificallyattheseclasses ofpeopleandservedaspropagandacentersforthehardright.AgainweseehowNAMfunctionsasabridging groupbetweentheeliteandthelowerandmiddleclasses. With almost unlimited power, corporations were able to create and fund numerous fronts to hide their supportforfascism.Oftentimesthesefrontgroupswouldhaveaclaimtorespectabilitysuchaswesawinthe chapter on the 1920s and the American Legion. While NAM was at the forefront of propagandizing the new feckless goddess of free enterprise, other groups figured prominently as well, particularly the Chamber of Commerce.Thereadershouldrecallfromthechapteronthe1920sthatunderthedirectionofThomasWatson ofIBM,theChamberofCommercetookonafascistcharacterandwassupportiveofbothHitlerandMussolini. TheChamberofCommercewastheauthorofthe1934report,CombatingSubversionActivitiesintheUnited States.Areportthatbecametheblueprintfortherepressionoftheleftinthe1950sandtheMcCarthyera.[13] Thereportdemandedthepassageofanantisubversivelegislation,includingaseditionlawandurgedthata special agency within the Justice Department be created to investigate subversive activities with special attentiontocommunists. In1948theChamberofCommercepublishedapamphletentitled Program for Community AntiCommunist Action.Thispamphletcontaineddetailedinstructionfordevelopingandmaintainingafilesystemwhichwas nothingmorethanablacklist.[14]Suchfilesystemshavetheirrootsinnativismandserveasavitalideological resourceforthepromotersofcorporateAmerica.Suchblacklistsarecommonamongthevariousgroupsthat comprisethefarrightsincetheendofthewar.TheChurchLeagueandtheAmericanSecurityCouncilweretwo

ofthelargestcompilersofsuchblacklists.Thereadershouldrefertothelaterchapteronthevariousrightwing groupstoseeamoredetailedaccountingofsuchblacklists. Bymostregards,duPontscampaignforfreeenterprisewasanoverallsuccess.Evenmoreremarkableis the relativity short time in which it was accomplished. The press suppressed all efforts opposing this fascist campaign. One such example was the suppression of Roosevelts State of the Union Address on January 11, 1944inwhichFDRproposed,sotospeak,aneconomicbillofrights,asgivenbelow: Therightofausefulandremunerativejobintheindustries,orshopsorfarmsorminesofthenation. Therighttoearnenoughtoprovideadequatefoodandclothingandrecreation; Therightofeveryfarmertoraiseandsellhisproductsatareturnwhichwillgivehimandhisfamilya decentliving; The right of every business man, large and small, to trade in an atmosphere of freedom from unfair competitionanddominationbymonopoliesathomeorabroad; Therightofeveryfamilytoadecenthome; Therighttoadequatemedicalcareandtheopportunitytoachieveandenjoygoodhealth; The right to adequate protection from the economic fears of old age, sickness, accident and unemployment; Therighttoagoodeducation.[42] Nevertheless, the media suppressed this speech just as they did the Century of the Common Man Speech by Rooseveltsvicepresident,Wallace.ThereadershouldnotehowsuccessfultheRepublicansandthehardright havebeenindenyingthesebasicfreedomstotheAmericanpeople.SixtyyearslatertheAmericanpeoplestill havenotgainedasingleoneofthosefreedoms.Theyactivelyopposeincreasesintheminimumwagelaw;the family farmer is rapidly being replaced with the corporate farmer; social welfare has been reduced to inadequate levels. We still have no national health care plan that insures everyones basic right to adequate medicaltreatment. ThecurrentMayorofNewYorkCity,RudyGiulianihasevenadoptedaprograminwhich,ifthehomeless refusetowork,theywillbedeniedshelterandtheirchildrenwillbetakenfromthemandmadewardsofthe fasciststate.Theeconomyisdominatedbybigbusiness;largecorporationscollectivelycontroltheeconomy.In addition, the Republicans and right wingers are feverishly trying to destroy one of the most successful programscreatedunderFDR,SocialSecurity.ThisisthesadstateofAmericatoday,wheretheRepublicanscan grant billions in corporate welfare to corporations, but are unable to spare a red cent for a poor man, condemningmillionstoalifeofpovertywithnohopeofeverbetteringthemselves. In the 1946 election, the Republicans gained a majority in both the Senate and the House. They immediatelysetouttoattacklaborandunionsonallfronts;atonetime,therewerenolessthan200antiunion billsintheHouse.TheTaftHartleyActemergedoutofthefrayandwaspassedoverPresidentTrumansveto. RepublicanFredHartleyfromNewJerseyproposedthebillintheHouse.Hartleyhadbeenmorethanfriendly withtheHitlerregimeandJapan,ifnotanoutrightfascistrightuptothedayPearlHarborwasbombed.[26] Theactseverelyrestrictedtheactivitiesofunionsandalsogavecorporationstherighttointerfereinunion organizingdrivesandtopropagandizetheiremployees.Thebillwaswrittenbylobbyistsforlargecorporations such as General Electric, AllisChalmers, Inland Steel, J.I. Case, and other large industrials. Additionally numerous amendments favoring small businesses were added to insurepassage over Trumans veto. It soon becameknownastheslavelaboract.Thusinfourshortyears,thefascistagendaoftheduPontswasmarching swiftly forward obliterating the rights of labor and setting a course for corporate rule. Additionally the pro fascist group Christian America was successful in obtaining right to work laws in several midwestern and southernstatesinthesecondhalfofthe1940s. ThepassageoftheTaftHartleyActwascloselyassociatedwiththeAllisChalmersstrikeof19461947.The localCIO248hadsucceededinunitingitsworkersthroughtoughtimesandhadsolidifiedthesupportoflabor. Members of the local could look forward to increasing wages and better working conditions. AllisChalmers hadanticipatedtheendofthewarandwasspoilingforaconfrontationwiththeuniontobreakunionismin Wisconsin. JustasthemediaplayedamajorroleintheunionbustingduringtheRedScareof1919,themediawould once again fan the flames of another red scare. The Milwaukee Sentinel, a Hearst newspaper, would play a criticalrole.OnSeptember23,1946 The Sentinellaunchedaseriesofarticleswithanexposofcommunistsin

Local248.AnAllisChalmersspeechwritersecretlywrotethearticle.Companymanagementsoongotanother boostfromCharlesWilson,theheadofGeneralElectricandformervicechairmenoftheWarProductionBoard stated. TheproblemoftheUnitedStatescanbecaptiouslysummedupintwowords:RussiaabroadandLabor athome. AllisChalmerswouldcombineelementsofcommunismandlabortobreakoneofthenationsmostimportant post war strikes. The extremely right wing Maz Babb and Walter Geist headed AllisChalmers management; successive presidents were leaders of the proNazi America First group. Harold Story was head of labor relations at AllisChalmers and was instrumental in writing several of the provisions of the TaftHartley Act. After leaving the company, Story was elected to the Milwaukee School Board and led the antiintegration forces. Thepostwarperiodwasmarkedbyaspateofantiunionismfromtheprofascists.Severalstatespassed righttoworklawsfromintenselobbyingpressurefromthefascistgroup,ChristianAmericacenteredaboutthe KirbyfamilyofTexas.By1950,laborhadclearlylost,althoughitwouldbeanothereightyearsbeforeunion membershippeaked. BythetimetheFreedomTrainbegantorollacrossAmericain1947,oneofthefreedomsittoutedinan exhibitwastherighttofreeenterprise;twoofthefreedomsthatFDRhelddearwerereplacedwiththisnon existentfreedom.BeforetheFreedomTrainhadcompleteditsjourneyacrossthecountry,therightofunions to assemble had been severely curtailed with the passage of the TaftHartley Act. No mention was made of FDRseconomicbillofrights.Ironicallyoneoftheotherfreedoms,thatoffreespeech,wouldbetrampledthe mostinthefollowingyearsatthehandsofJoeMcCarthy.Theremainingfreedomofreligiousfreedomwouldbe employedinthewaron thehomefrontforfreeenterprise andfascism.Theinclusionofthis exhibitinthe Freedom Train, which carried the important documents of our government, such as the Declaration of IndependenceandtheConstitution,couldservenootherpurposeotherthantospreadthepropaganda. Thesecondprongattackoncommunismwasevenmoreofasuccess.Theadoptionofthebasictenetsof fascismin1942bytherightwinginAmericawouldpropeltheworldtothebrinkofanuclearholocaustduring theColdWar.Itwouldleadtooneofthemostrepressivedecadesinthehistoryofthecountry,the1950sand theMcCarthyera.Thisembracingoffascismbytherightwasledbytwofactions,therichindustrialistswithin thiscountryandtheCIAsrelianceonNaziwarcriminalsinthepostwarera.Thefollowingchapterwilldetail theroleofWallStreet,theCIAandtheNaziwarcriminals;theremainderofthischapterwillconcentrateon theroleofthedomesticfascists. This plot against freedom by du Pont would not have succeeded without the aid of the proNazi Congressmen.Asnotedpreviously,itwasaprofascistHousememberFredHartleythatwasoneoftheauthors oftheantiunionTaftHartleyAct.Inaddition,itwouldbeanotherprofascistCongressmanthatwouldheadup theattackoncommunism.Thereadershouldbeawarethattheattackoncommunismwasreallyanattackon anyideologytotheleftoffascism,justasthecasewasintheGreatRedScareof1919.

Part 4: The Nazis Run for Cover

PerhapsthemostinfluentialCongressmaninaidingtheduPontsfreeenterprisewasMartinDies.Asalready coveredinthepreviouschapter,DiessetaboutsabotagingthesearchforfascistsbytheHousecommitteeand insteadstartedawitchhuntforreds.ThereadershouldrememberthatitwasaRepublicancommitteefrom MinnesotaledbysomeoftheleadingindustrialistsofthestatethataskedDiestoinvestigatethecommunist influencein theFarmerLaborParty.BoththeFBIandtheDiescommitteewere guiltyofpursuingredsover fascists.Bothdidinvestigateafewfascists,buttheemphasisofbothwastheinvestigationofcommunists. Ironically,thecommunistsposedaveryminorthreatcomparedtothefascists.Theresultsfromthe1936 electioncanreadilyattesttothatfact.In1936theprofascistcandidate,Lemke,polled8,882,479votes,eleven times the vote total of the communist candidate.[83] In fact the Communist Party vote in 1936 had declined twentypercentfromthepreviouselectionin1934.Otherpollsfromtheeraconfirmthethreatwasfromthe right and fascism and not the communism or left. Polls of college professors of the time reveal a deep intolerance bytheconservativefaculty.Onepoll revealedthat35percentoftheprofessorswouldomitfacts fromtextbooksthatmightleadtocriticismofthesocialorder.Anotherpollfound48percentoftheprofessors favoreddeportationofalienswhocriticizedtheConstitution.[84]

HooverwasestrangedfromDiesafterDiesleveledchargesthattheFBIhadbungledthe en massearrestof the veterans of the Spanish Civil War and the subsequent dismissal of their indictments. The arrest of these veteranswhovolunteeredtofightfascismwhiletherightwingstillwasapologetictothecauseofHitlerstands asoneofthegreatestinjusticesofthetwentiethcentury.Theirarrestwasbasedsolelyontheirpoliticalviews, as most members of the Abraham Lincoln Brigade were either socialists or communists.[21] In effect, their onlycrimewastheirpoliticalviews.TheseveteransoftheAbrahamLincolnbrigadesufferedthroughouttheir lifetimes at the hands of Hoover and the FBI; as late as the 1990s, the FBI was still keeping them under surveillance.DiesevenwentsofarastoredbaitAttorneyGeneralJackson,citinghissupportforsuchgroupsas theAmericanLeagueforPeaceandDemocracyandtheLeagueofAmericanWritersascommunistfronts. Thus to further the du Ponts free enterprise, the same whipping boy that was used following WWI to protecttheinterestoftherichelitewasinvoked,themenacinghordesofgodlessreds.Withfascismfanatically opposed to communism, socialism and liberalism, this could only magnify and encourage the fascist groups. Oneofthefirstgroupsclaimedtobeinfiltratedwithcommunistswerelaborunions,justasthecasehadbeen afterWWI.OneofDiesfirstandprimarytargetswithinthelabormovementwasHarryBridges.Bridgeswas finallydeportedin1945aftertenyearsofharassmentbytheDiesCommitteeandtheFBI.Diesextendedthe attackonBridgescasetoasweepingattackagainsttheLaborSecretary,FrancesPerkins.[22] Dies extended the scope of his committee to attacking the New Deal as well as communists. One target withintheNewDealwasthePresidentswife,Eleanor.InthecaseofMrs.Roosevelt,theFBI,workingcovertly, wouldleakderogatoryinformationabouthertorightwingpublicists.[23] AnotherofDiestargetswasCaliforniaDemocraticnomineeforgovernor,CulbertOlson,andUnitedStates Senator Sheridan Downey. In this case Harper Knowles brought the charges before the committee from the private sector. Knowles claimed to be a representative from the Radical Research division of the American Legion,inrealityherepresentedafascistconnectedorganization,AssociatedFarmers,Inc.Thereadershould notetheformationoftheRadicalResearchdivisionwithintheAmericanLegion.TheRadicalResearchdivision targetedunionorganizersandanygroupfromtheleftthatwasperceivedasathreattobusiness.Mostofthese radicalresearchgroupswithintheLegionwerefirstformedfollowingWWIandwerepartiallyresponsiblefor fanningtheflamesoftheGreatRedScareof1919. DowneysRepublicanopponentintheupcomingelectionwasamillionairelandownerandmemberofthe AssociatedFarmers.OneagendaoftheAssociatedFarmerswastobanJohnSteinbecksTheGrapesofWrath from the California public libraries. Knowles went on to found the Western Research Foundation, a blacklist operationthatfiguredprominentlyinthe1970s1980s.[24] One final example will establish just how nuts Dies was and the extent of the red hysteria. The case centeredonJ.B.Mathewsandchargesofcommunistinfluenceintheconsumermovement.MathewsandFred SchlinkhadbeenconsumeradvocatesuntilSchlinksemployeesunionizedandformedarivalConsumerUnion. Mathewstimedhisreleasetocoincidewitha1939FederalTradeCommissiondecisiontociteHearsts Good House Keepingforfraudulentadvertising.Atleastonemanufactureclaimedthesealcouldbeobtainedsimply by placing ads in Good Housekeeping. Other manufacturers claimed the seal would be withdrawn if their ads were canceled. The FTC decided to act due to the complaints from retailers and manufacturers. Hearst launched a massive anticommunist advertising blitz and Dies threatened to open an investigation into the consumer groups.[25] Since these housewives and other manufactures were threatening corporate America, theywerebrandedascommunistandhadtobediscredited. Withthenationinvolvedinaglobalwar,withallresourcesdirectedtowinningit,theeffortsexpendedby the FBI and the Dies committee chasing communists were squandered. As each focused primarily on communists,thefascistswereleftunmolestedforthemostpart.Onlyafewminorfascistswereeverindicted onseditionandevenfewerfoundguilty.Norwasthereanyefforttoinvestigatecorporationstradingwiththe NazisaftertheTrumanCommittee.Resourcesthatwereinshortsupplyandthatweredirectedatredbaiting couldhavebeenbetterutilizedagainstthesourceoffundingforthefascistgroupsandthosecorporationsthat continuedtosupplyHitlerswarmachine. In1944,Diesvoluntarilychosenottoseekreelection.ThishoweverwouldnotbetheendofMartinDies radical right wing activities. During the late 1950s and early 1960s Martin Dies was one of the contributing editorsof American Opinion,thetabloidragpublishedbytheJohnBirchSociety.Anotherofthe contributing editorswasHansSennholz,aformerLuftwaffepilotteachingeconomicsatGroveCityCollege.Thisinstitution was heavily subsidized by J. Howard Pew, Sun Oil executive, and a huge benefactor of far right groups throughoutthe40sandupuntilhisdeath.[36]

On convening the new Congress on January 3, 1945, racist Mississippian John Rankin offered an amendmenttotherulesoftheoldCongressmakingtheDiescommitteeastandingcommitteeandincreasing its membership to nine. Thus was born the most notorious Congressional committee of all time. The House CommitteeforUnAmericanActivitieswouldspananotherthirtyyearsbeforefinallybeingdismantledinthe mid1970s,followingtheWatergateandCOINTELPROscandals.UnliketheDiescommittee,HooverandtheFBI would cooperate fully with the new committee, using it to launder illegally obtained information from wiretaps,blackjobsandotherdubiousandunconstitutionalmethods.Alaterchapterwilldealwiththeabuses oftheHUACandMcCarthyism.FornowitwillsufficeforthereaderthatHUAC,liketheDiesCommittee,was only interested in destroying the left; the right wing extremists and fascists would be protected along with corporateAmerica. Although du Ponts fascist campaign for free enterprise was an overall success in wresting control of Congress from the liberals in the 1942 election, the new year brought forth a change in the fortunes of war. Hitlers troops were trapped at Stalingrad. Montgomerys troops had defeated Rommel at El Alamein. In the SouthPacific,theUSNavyhaddealttheJapanesefleetdefeatsatMidwayandintheCoralSea.Germanyandits Axispartnerswereclearlydefeated;itwouldonlybeamatteroftimebeforetheywereforcedtosurrenderto theAllies. WiththeimminentdefeatofNaziGermanypending,in1943corporateAmericahadtocoveritstracks.The same corporations that were guilty of delaying war production in the sitdown strike and sponsoring pro fascistgroupsathomewerealsoguiltyofknowinglytradingwiththeNazisduringthewar.Amassivechange intacticswasrequiredtoprotectthemselvesfromseditionortreasonchargesfollowingtheconclusionofthe war. The change in tactics is clearly marked by three notable aspects. In one, it marked the beginning of targetingthosewithinthegovernmentthatwerefullyopposedtofascism.ManyofthosewithintheRoosevelt administrationorinthehallsofCongressthatcalledforthecompletedestructionoffascismwerediscredited, forcedtoresignortargetedfordefeatinelectionsbycorporateAmerica.Intheshortspanofthischapterand the previous chapter, several dedicated public servants that fought against fascism passionately were dismissedorotherwisediscreditedatthehandsofthenativefascists. Below is a list of these individuals and the date of their dismissal. The list is by no means complete; hundredsofotherssufferedthesamefate. YearRemoved Individual WilliamMaloney 1942 O.JohnRogge 1946 SummerWells 1943 JerryVoorhis 1946 NormanLittell 1944 HarryDexterWhite 1948 SecondlyitmarkedadistinctchangeintoanopenlyandaggressivelyantagonisticattitudetowardsourRussian allybytherightwingwithinAmerica,ledbyJ.EdgarHoover.Hooverwouldcrisscrossthecountrydelivering speeches against the evils of communism. As already noted previously, Hoover gave many speeches against communismfrom1941to1945.Eachspeechwasmoreinflammatoryandthethreatmoreurgentthaninhis previous speech. The House unAmerican Activities Committee would step up its attacks on communists leading to the McCarthy era. Finally, many of the Nazis recruited by the CIA would intensify the fear. A full accountingofthesecondredscareisreservedforthefollowingchapters. Finally,itwouldmarkafranticeffortforanegotiatedpeace. Whilethere were efforts foranegotiatedpeaceinthepast,mostnotablytheeffortbyTexasoilmanWilliamRhodes Davis in 1940, the new efforts clearly marked the beginning of the cover up of the treasonous behavior of corporate America. The most notable peace plan during this time was initiated between Allen Dulles and Prince Hohenlohe. The role of Dulles and his associationwithNaziswillbeexposedinmoredetailinthefollowingchapter,butfornow to convey the treachery of Dulles the following will suffice for the reader. In 1943, Dulles Prince Hohenlohe began meeting with the Nazi, Prince Hohenlohe. Dulles falsely claimed to speak for RooseveltandagreedwithHohenlohethatpostwarGermanyshouldbetheleaderofindustrialproductionto maintainabulkheadagainstRussia.ThiswasaliebyDulles,asRooseveltwasleaningtowardstheMorgenthau PlancallingforthecompletedismantlingofGermanindustry.

DullesagreedwiththePrincethatitwouldbeunbearableforanyEuropeantothinkthatJewsmightreturn andthattheremustbenotolerationofareturnofJewstopowerpositions.Dullesalsomadethestatementthat AmericanswereonlycontinuingthewartogetridoftheJewsandthattherewerepeopleinAmericawhowere intentonsendingtheJewstoAfrica. InthecourseofhistalkswithHohenlohe,DullesgaveawaytheentirebattleplanforEurope.Heinformed theNaziPrincethattheAllieswouldnotlandinSpain,butinstead,afterconqueringTunisia,wouldadvanced towardsthePloestioilfieldstocutofftheGermansupplyofoil.HeinformedtheprincethattheAllieswould invadeSicilytocutRommeloff.[47] In other meetings, Dulles spoke of Papal action in the area of negotiations. The reader should remember this obscure point while reading the next chapter, as the Vatican played an eminent role in the surrender of Wolff as well as in helping Nazi war criminals escape from Europe and justice. In the reconstruction of Germany, Dulles spoke of giving preferences to Bavaria and described a speech by Goebbels as a work of genius. Noting that he was speaking for himself and other right wing elements in America, Dulles spoke disparaginglyaboutChurchillandtheBritishintheirtalkswiththeRussiansovertheBalkans.Onconcluding thetalks,DullesinformedtheAmericanEmbassyinMadridtobeofassistancetoHohenloheatanytime. Dulles spent more time giving away the Allies battle plan than in discussing the proposed German peace treaty.Ineffect,Dullesmayhavebeenstallingfortime,hopingtodelaytheendofthewar.Hewaswellaware of the many American corporations that were currently doing business with the Nazis and may have been buying time, hoping for a negotiated peace or at least enough time to ferry the Nazis illgotten assets out of Germany. Dulles had several Americans in Switzerland who were willing collaborators with the Nazis. Alexander KreuterwastheAmericanNazicollaboratorwhoAryanizedtheFrenchWormsbankwhentheNazismarched intoParis.KreuterwaslikewiseconnectedtoDillonReed,theWallStreetfirmthathelpedfinanceHitleruntil 1934. AnotherDullesaccomplicewasGerhardtWestrick,apartnerintheGermanlawfirmassociatedwithboth Dulles brothers. Westrick secured the assets of many American corporations throughout the war from nationalization. His partner was Heinrich Albert, the head of the Ford operation in Germany. In protecting Fordsassets,AlbertreceivedordersdirectlyfromEdselFordinDearborn,Michigan,afterthebombingofPearl Harbor, to build trucks for the German Army.[47] Also included in the list of Dulles collaborators was the AmericanministerinBerne,LelandHarrison,whoauthorizedshipmentsofenemyoilthroughSwitzerlandas wellasAmericanoiltofueltheGermanarmy. WhilethetalksbetweenDullesandtheNaziPrincewereinitiatedbytheGermansastheysawtheThird Reichcollapsingintoashesaroundthem,thetalkswereremarkablysimilartotheearlierpeaceplanofDavisin 1940. The only major difference was that Himmler instead of Goring would replace Hitler. In both cases the NaziswouldremaininpowerandreceiveUnitedStatesaidtomaintainabulkheadagainstRussia.Itisnotclear ifDulleseverpresentedhispeaceplantotheWhiteHouse,butsuchplansreceivedacoldshoulderfromthe WhiteHouse,asRooseveltwasadamantinremovingtheNazisfromanypositionofpowerwithinGermany. Norwasthistheonlypeaceeffortadvancedin1943bythoseclaimingtorepresentRoosevelt.Theheadof theOSS,BillDonovan,advancedanothereffortcalledtheMProject.InJuly,DonovanorderedTheodoreMorde, aformerjournalistfor The Readers Digest,tomeetthelocalOSSchiefinCairo.Fromthere,Mordetraveledto Turkey to meet with another OSS agent and to make contact with von Pappen through von Pappens agent, Posth.FalselyclaimingtobearepresentativeofRoosevelt,vonPappenagreedtomeetwithMordeandreview hispeaceplan.TheonlyconditionforpeaceinMordesplanwasthearrestofHitler.Theplanwasthesameas the plan that Dulles had advanced earlier. It would terminate all lend lease aid to the Soviet Union and set Germanyupasthedominatingforcemilitarilyandindustrially. ReturningtoWashington,MordewrangledameetingwithRooseveltsspeechwriter,claiminghehadbeen authorizedbyGeneralHurleytoadvancetheproposedpeaceplan.Thegoodgeneralimmediatelydenounced Mordesclaims.ThegeneralwentontostatethatMordesactionsweremerelyathinlydisguisedattemptto promote The Readers Digest. In a memo dated October 29, 1943, Donovan urged FDR to give Mordes plan seriousconsideration.Rooseveltcanceledtheplanpromptly.[48] George Earle in Spain advanced a similar plan during the summer. Earle was a wealthy anticommunist. AftertheMordeplancollapsed,BaronKurtvonLersnerproposedanewplantoEarle.Inthisnewplan,Lersner claimedtohavethebackingandapprovalofagroupofGermanofficers.Thisgroupofofficerswiththebacking

of the officer o r in charge of Hitlers cavalry c division in East Prussia wou uld kidnap Hitler H and make m a peace e p proposalwith honlyonecondition:tha attheSoviet tUnionbepr recludedfrom menteringG Germany.Rooseveltagain n t turneddown ntheproposa al. Otherpea aceplanswe ereadvanced din1943thr roughNewY Yorkattorne eyAbramSte evensHewitt t.LikeMorde e a andEarle,He ewittfalselyclaimedtobeaRoosevel ltrepresenta ative.Thepla anwasonceagainsimilar rtotheplans s a advanced by y Dulles and d Morde. Ear rly in 1944 another pla an was adva anced through Gabrielle e Chanel, the e p perfumemag gnate.ChanelwasdenouncedasaGe ermanagent byherfriend dLombardi. Chanelhad attemptedto o u useLombard disconnectio onstotheBri itishroyalfa amilytoadva anceherpeac ceplan. Thesesec cretandunau uthorizedne egotiationsre evealthelen ngththatDull lesandother rswouldgoi insabotaging g t war effo the ort. One thin ng was comm mon to all of o these neg gotiations: th he Nazis wo ould remain in power in n G Germany. By y 1943 Nazi Germany was w clearly defeated on the t battlefiel ld. The battl les for Stalin ngrad and E El A Alamein wer re the turnin ng points for r the war. Al llen Dulles and a the others revealed their desper rate plight in n t tryingtocove erupforcor rporateAmer ricaandtherichindustri ialistscollab borationwith hNaziGerma any.Noother r reasoncanex xplaintheirw willingnesst toriskchargesoftreason norsedition.Asnoneoft thesetalksc calledforfree e e electionsinG Germany,ine effecttheyce enteredonfi findingamor repalatable replacement tforHitleran ndinsuringa a g governmentt thatwouldb befriendlyto othecorpora ateAmericac collaborators s. Evenmor reodiously, thesetalksm markthebeg ginningofth hecoldwar. Notonlywe eretheNazis stobeleftin n p power, but they were to o be rearmed d to provide a bulkhead against Rus ssia. Corpora ate America and the rich h industrialists s had to be protected p at all costs aga ainst its perceived enem mies, real and d imagined. The war had d b been very profitable p for r corporate America an nd a new war w against the t Soviets would likew wise be very y p profitable. Th he benefits and a profits of trade wit th Russia wo ould be small in compar rison. In effe ect corporate e A Americawas swillingtori iskanotherm majorwarth hattheneith hertheAmer ricannorthe eRussianpeoplewanted d, e evenifitmea antpushingt theworldtothebrinkofanuclearholocausttoin nflatetheirbo ottomlines. Both Don novan and Dulles D came from f Wall St treet. Donov van was a pr rominent Wa all Street law wyer and the e r reader shoul ld recall from m the chapt ter on the 1920s that Donovan was s involved with w the Drug g, Inc. cartel l. D Dullesrolein nthecartelswasmoreex xtensiveandwillbedetailedinthefo ollowingchap pter.Bothha adknowledge e o oftheextens mentofUSco orporationsw withtheNazi isandbothw wereinidealpositionstocoverupthe e iveinvolvem c crimesofcor rporateAmer rica. During19 943warpro oductionpeak kedandther reafterdeclin neduntilthe eendofthew war.Thecrit ticalphasein n w warproducti ionhadbeen nmetandpa assed.Howev ver,withthe edeclineinm militaryorde ers,anewpr roblemarose e: r reconversion ntoaconsum mereconomy y.Orderstos smallfirmsw werebeingca anceled.Onc cetheirmilita arycontracts s h hadbeencan nceled,thesm mallfirmsw wantedtorev vertbackto producingg goodsforthe econsumer.T Thissetoffa a f firestorm of protest amo ong the dolla ar a year me en with the War W Production Board (WPB). ( They y argued tha at a allowingthe smallfirmst toreenterin ntotheconsu umermarketimmediately ywasunfairandwouldt takebusiness s a awayfromth helargerfirm mswhilethey yfulfilledtheirmilitaryc contracts.In effect,bigbusinessdem mandedthati if t theyhadatw wentypercen ntshareofth hemarketbe eforethewar r,theyshould dhaveatwe entypercent shareduring g r reconversion n. The same e firms that t had engag ged in the sitdown s str rike were now n demand ding that no o r reconversion ntakeplaceu untilafterthe ewarwasov ver. Donald Nelson N was the chairma an of the WPB. W In early y 1943 the War Depart tment a attemptedto nfired.Secre etariesofWa arandNavy,Stimsonand dKnox,along gwith haveNelson t theirunders ecretaries,P Pattersonand dForrestal,h hadschedule edameetingwithRoosev veltto d demandthed dismissalof Nelsonandh hisreplacem mentwithBernardBaruch.Baruchwa asthe c choice of big g business. His H wartime e plan rested d on the assumption th hat industry itself s shouldhavet therighttod determinewh hatcontrolswereneeded dandadministerthemas sthey s sawfit.Theu ultimateendofsuchfolly ywasbigbus sinesswould dendupwith hallcontrolofthe e economy.Inc cludedinthe eBaruchplan nwasspecia allegislation thatwouldp preventtheu useof B Bernard Baruch a antitrust law ws to penaliz ze an over en nthusiastic exercise e of th hat power. In I effect, it would w g grant big bu usinesses powers over the t economy y that excee eded governm ment regula ation of indu ustry.[54] By y p publiclyfirin eWarDepart tmenttoBar ruch,Nelsonavoidedbein ngdismissed d. gEberstadt,theproposedaidebythe H Helaterbrou ughtinCharle esWilsonthepresidento ofGEascoch hairmanofth heWPB. Atthecenterofthec controversyw wereDonald dNelsonand dCharlesWi ilson,cochai irmenofthe eWPB.Inthe e f fallof1943,W Wilsonmade easpeechwa arningagains stfascistthin nkingamong gthehigherr ranksofbigb business.[53] T TheWarDep partmentbac ckedtherank ksofthebigb businessmen n.OnJuly7,N Nelsonreceiv vedaletterf fromAdmira al W WilliamLeah hyasfollows:

We are disturbed over the existing lag in war production which, if it continues, may necessitate revisioninstrategicplanswhichcouldprolongthewar. In view of the major offensive operations under way on every front, it is essential at this time that there be no relaxation in war production and that deficits in deliveries be made up at the earliest possibledate. The issuance of orders at this time which will affect our ability to produce war materials is not consistentwiththealloutprosecutionofthewar.[87] Inanunusualmove,theletterwaspublishedonJuly9.Ofcoursetheletterwasanappealtothepublicandnot to Nelson, as contracts were already being canceled by the War Department and others not being renewed. LeahywashopingtopanicthepublicintooppositionoftheWPBspoliciesonreconversion. By 1944, those that supported the fascist line of corporate rule had clearly gained the upper hand. In January 1944 Charles Wilson proposed the wedding of the military to corporate America. Wilson suggested thateverylargecorporationappointaliaisonmanwiththearmedforceswithacommissionofacolonelinthe reserve.Excerptsfromhisproposedweddingfollowbelow. First of all such a [preparedness] program must be the responsibility of the federal government. It mustbeinitiatedandadministratedbytheexecutivebranchbythePresidentasCommanderinChief andbytheWarandNavyDepartments.Ofequalimportanceisthefactthatthismustbe,onceandfor all, a continuing program and not the creature of an emergency. In fact one of its objects will be to eliminateemergenciessofaraspossible.TheroleofCongressislimitedtovotingtheneededfunds. Industrysroleinthisprogramistorespondandcooperateintheexecutionofthepartallottedtoit; industrymustnotbehamperedbypoliticalwitchhunts,orthrowntothefanaticalisolationistfringe taggedwithamerchantsofdeathlabel.[88] Thewarhadbeengoodforthelargestcorporationsasshownpreviouslybytheincreaseinemploymentfigures of large corporations. Profits for these same corporations had skyrocketed to dizzy heights and the largest firmswereofthemindtoinsurethatcontinued. However, even more ominous is the fact that before Eisenhowers troops stormed the beaches of Omaha andNormandy,thewaragainstfascismwaslostonthehomefront.AsWilsonswordsembracedtheveryheart of fascism and the power that ruled Germany, the militaryindustrial alliance of Nazi Germany. In effect, WilsonsproposalwasthesameasGermanysEconomicHighCommandthat,aswesawinChapter4,allowed Germanytowagetotalwar. Wilsons proposed wedding formed the very basis of what so alarmed Eisenhower a decade later, the militaryindustrial complex. It would become the nerve center from which the Cold War could be waged. WilsonsproposalwantedtoremovealloversightofcorporationsfromCongress.Congresswouldberemoved fromapprovingnewweaponsystems,removedfrominvestigatingthemisappropriationoffunds,andremoved from investigating profitmongering. Such words render the elegant debates of Hamilton, Madison, Jefferson and others of the founding fathers, granting Congress the sole ability to wage war and appropriate funding, moot. Therewasalsoanothercrisisfacingtheselargecorporations.As1944continuedtopass,itbecameclearer andclearerthattheAxispowersweredefeatedanditwouldonlybeamatteroftimebeforetheysurrendered. Ordersforwarmunitionscontinuedtodecrease.Oncethewarwasover,therewouldbeanenormoussupply ofgovernmentbuiltfactoriesandmanufacturingfacilitiesupforgrabs.Thesamelargecorporationsthathad engagedinthesitdownstrikeandhadfrozenoutsmallerfirmsfromengagingindefenseproductionwanted to retain the ownership of these facilities. However, these facilities had been built solely with government funds,asthelargecorporationshadrefusedtoinvestinexpandingtheirfacilitiesforthewareffort.Thevalue ofthewarsurplusthatwouldbeupforgrabswasimmense,$60billion.Infact,thefederalgovernmentatthe endofthewarownedtenpercentoftheindustrialcapacity. Theagendaofthelargecorporationswasthentoforcethegovernmenttogiveupcontrolontheseplantsor otherwisefaceaformidablecompetitor.Likewise,thebigcorporationsdidnotwanttheseplantstofallintothe hands of smaller firms. It would be a fire sale for the large corporations as the large corporations had successfully rigged the bidding process to exclude the smaller firms. Competitive bids from firms other than those who had run the plants during the war were only rarely allowed. With competing firms successfully eliminated from the bidding process, the lowball bids of the large corporations were accepted. The government received pennies on the dollar. In the case of governmentbuilt integrated steel plants, one

company, US Steel, got 71%. Only four corporations received the synthetic rubber and polymer plants. Eventuallytwothirdsofthetotalofallgovernmentbuiltplantswenttojust87largecorporations.[28]

Part 5: Corporate Traitors

Thelargecorporationsfacedotherproblemswiththeendofthewar.Manyofthesecorporationsattainedtheir largesizebecausethecartelagreementswithGermanfirmsgavethemexclusiveproductionrightswithinthe United States while the German firms held the patents. Center to the Trumans plan to remove Germanys abilitytowagewarandtobreakupI.G.FarbenwastheremovalofpatentsfromGermanhands.Oneexecutive ofUSSteelCorporation withextensivetiestoSchmitz andKruppattemptedtoreverseTrumanspolicy.The executivecalledforanimmediateopeningoftheGermanPatentOfficeandfortheprohibitionofinspections. The opening of the patent office along with a ban on searches would have been disastrous for the decartelizationanddenazificationprograms.[86] TheendofthewarwouldalsorevealthemanycrimesofcorporateAmericawillinglysupplyingtheNazis with war munitions. The reader should reread the previous sentence as carefully as the words were chosen. ThepointbeingthedealingsbetweencorporateAmericaandtheNazisduringthewarwasdonewithdirect knowledge of the American corporate headquarters. Forget the rubbish that these poor corporations were forced to cooperate with the Nazis. Generally, nothing could be further from the truth. Many of these corporationswenttoextraordinarymeasurestoremainincontroloftheirassetsinGermany,fullycooperating withtheNazis,evenifitwasaviolationofthelawandallmoralprinciples. Once again, the media would play a central role in concealing from the American people the truth about corporate America. Perpetrating another red scare on the country would conceal the truth. The words of Charles Wilson during the AllisChalmers strike of only two problems, unions and communism, would frame the issues in the news media. Union members would be forced to sign loyalty oaths, as would government employeesandeventeachers.RussiawasanewmenaceandtherewouldbenoreportsinthemediaofFord buildingtrucksfortheNazisorofanyotherAmericancorporationaidingtheNazis.Thefollowingchapterwill lookcloseratthecoverupofcorporateAmericastradingwiththeNazis. MuchoftheremainderofthischapterwillnowfocusonthecrimesofcorporateAmericasdealingwiththe Nazisduringthewar.Upuntilrecently,themediahasledtheAmericanpeopletobelievethatonlyahandfulof AmericancorporationseverinvestedinGermanyordealtdirectlywiththeNazis.Butarecentarticleputsthe number of American corporations involved with supplying the Nazis at over 300.[55] But even this article, whileparticularlydamagingforChaseBankaswellastoFordandGeneralMotors,isshamefullyapologeticto corporate America and outright inaccurate on other counts. It shamefully tries to exonerate one of the most notoriousfascistsinAmericaduringthewar,theduPonts,bysuggestingtheydidnotinvestinNaziGermany afterthe1930s.TherealityistheduPontshadseveralcartelagreementswiththeNazisandopenlywerepro fascistsupportersinthiscountry. AnotherrecentarticlecomingfromGermaninvestigatorsstatesthat26ofthetop100firmsintheUSwere guiltyofseriouswarcrimes.AreportparticularlydamagingforFordandGeneralMotorsisoneinwhichUS lawyers now have direct evidence of both companies knowingly using slave labor and having closely collaboratedwiththeNazis.Theycurrentlyareconsideringfilingapossibleclassactionsuit.[56]Additionally thisnewswiresubstantiatesthat manyofthelinksofcorporate America totheNazis beganinthe1920sas presentedinanearlierchapter. The first article mentioned above details the actions of John Foster Dulles and Sullivan & Cromwell in helpingconcealtheNaziownershipoftheUSsubsidiaryofBoschbydraftingavotingtrustagreementmaking the Wallenbergs Enskilda Bank a dummy owner. The reader should refer back to the I.G. Farben practice of tarn. The fraud worked throughout the war, but in 1948, Boschs American subsidiary was forced onto the auctionblock.ThisisbutoneofmanysuchfraudsinvolvingtheactionsofSullivan&Cromwellaswellasboth of the Dulles brothers. The actions of the Dulles brothers and Sullivan & Cromwell will be detailed in more depthinthefollowingchapter. BoththesearticlesprovidegoodexamplesofunlawfulconductonthepartoftheAmericancorporations: theuseofslavelaborbyFordandGeneral MotorsandtheseizureofJewishaccountsbytheParisbranchof ChaseBank.Tounderstandfullyhowsuchcrimesagainsthumanityhavegoneunpunishedforhalfacentury, oneneedstofollowthemoneytrailbeginningwiththeBankforInternationalSettlements(BIS).Suchalookat internationalfinancialintriguewillprovidethereaderwithaglimpseofthedangersofhowtheWorldTrade Organizationcurrentlyimperilsfreedomglobally.

The BIS was originally created in 1930 by the worlds central banks including the Federal Reserve, originallyinspiredbyHjalmarHoraceGreeleySchacht,wholaterbecametheNaziMinisterofEconomicsand presidentoftheReichsbank.Inhischildhood,SchachtwasraisedinBrooklynandheretainedpowerfulWall Streetconnections.SchachtforesawtheriseofHitlerandtheadventofacomingwar.EvenbeforeHitlerrose to power, Schacht pushed for an institution that would retain communications and collusion between the worlds financial leaders in the event of war. Thus it was written into the BIS charter was that it would be immune from seizure, regardless of whether its owners were at war. One of the owners was the Morgan affiliated First National Bank of New York. The Morgans had extensive connections with BIS. First, BIS established purpose upon its founding was to provide the Allies with reparations from WWI as part of the YoungPlan.OwenYoungwasaMorganbanker.ThereadershouldalsorecallthattheMorganswereinvolved in the fascist plot against FDR in the 1930s. In addition, Wendel Wilkie was on the board of director of BIS. WilkiewasthecandidateofchoiceamongthenativefascistgroupstounseatRoosevelt. Here is the crux of its power: being immune from seizure, the bank was free to act as it wished under whoeverretainedcontrolofit.Citizensofothercountriesandindeedeventhegovernmentsofothercountries werepowerlessinopposingthebankoritsactions.Instead,thebankwasfreetoholdtheworldatthemercyof itsknightedfinancialautocrats. Grantingsuchpowerstoanyinstitutionisfoolhardyatbestandamistakethatshouldneverberepeated. However,afteroverfiftyyearstheworldhasnotlearnedonegoddamnedthing.Currentlytheworldsfinancial knightsareonceagainreengineeringtheBISintheformoftheMultilateralAgreementonInvestment(MAI), GATSandotherfreetradeagreements.Ineffectallofthesesocalledfreetradeagreementswouldoverridethe bill of rights and hold a country responsible for any losses a corporation would receive by any legal action initiated by the country or its citizens. Further, it would prevent a country from withdrawing from it by assessingpenaltiesforlostincomeforuptotwentyyearsafterthenationwithdrew.Again,themediaisplaying the role of an obedient lap dog for its corporate masters. The media has done such a good job in killing the storyonMAIanditsramificationsthatmostAmericanshavenotheardofit.Thereaderisurgedtofullyinform himself of the negative consequences of the MAI and the other free trade agreements and oppose it before anotherfascistinstitutioncanunleashitshorrorsonanunsuspectingworld. ThedangerofNAFTAandothersocalledfreetradeagreementscanbestbeconveyedbytheexampleof theMetalcladsuitagainstMexico.Metalclad,aUSwastedisposalcompany,hadboughtacloseddumpsitein the northcentral state of San Luis Potos that had been plagued in the past with problems. The purchase included an agreement for the cleanup of the past problems and leaks. The site sat atop an underground aquifer that provided water from a good deal of this arid region. The governor of San Luis Potos had an environmental audit conducted on the site. The audit concluded that the site would contaminate the undergroundwatersupplyandthereforerefusedtoletMetalcladreopenthesite.[52] Metalclad then filed suit against Mexico for $90 million under Chapter 11 of NAFTA. The tribunal set up under NAFTA awarded Metalclad $16.7 million. The crux of the ruling is that under these free trade agreements,thecostsofenvironmentalregulationsareshiftedfromthecorporationstothegovernments,as well as to bypass the legal system in the signature countries. In other words, the cost of environmental regulationsandcleanupwassocialized,freeingcorporationsfromtheircosts. By the outbreak of war the BIS was under the control of Hitler. Directors of the BIS included Thomas McKittrick,anassociateoftheMorgans;HermanSchmitz,headofI.G.Farben;KurtvonSchroder,headofthe J.H.SteinBankofCologneandleadingfinancieroftheGestapo;WaltherFunk,presidentoftheReichsbank,and Emil Puhl. In May 1946, at the Nuremberg Trials, Walther Funk testified that Puhl had been offered a major postatChaseinNewYorkshortlybeforePearlHarbor. ThefirstpresidentoftheBISwasGatesMcGarrah,formerlyofChaseNationalBank.Duringthefirsttwo yearsafterHitlersassumptionofpower,hewasinstrumentalinfinancingtheNazisthroughtheBIS.In1940, McKittrick held a meeting at the Reichsbank with Kurt von Schroder and the Gestapo discussing means to continuedoingbusinessifwarwastobreakout.OnFebruary5,1942,twomonthsafterthebombingofPearl Harbor,theReichsbankandtheGermanandItaliangovernmentsapprovedordersthatpermittedMcKittrickto remain in charge of the BIS. One of the documents of authorization simply stated McKittricks opinions are safelyknownbyus.Inresponse,McKittrickgratefullyarrangedaloanofseveralmillionSwissfrancstothe Nazi puppet governments of Poland and Hungary. On September 7, 1942, McKittrick issued the first annual reportafterPearlHarbor,readingittoanemptyroom.IndoingsohecouldreporttoWashingtonthatnoNazi directors were present. The report was purely Nazi propaganda, assuming an immediate peace in favor of

Germany wit G th a sizable distribution of American n gold to sta abilize the German G mark k. In the spr ring of 1943 3, M McKittricktr tionofUSlaw w,aftermeet tingwithLeo onFraseroft theFirstNationalBanko of aveledtoBerlin,inviolat N NewYorkan ndtheheads oftheFeder ralReserve.H Hismission wastoprovi ideEmilPuh hlwithsecretintelligence e o onfinancialp problemsand dhighlevela attitudesintheUnitedSta ates.[57] OnMarch h26,1943,l liberalCalifo orniaCongre essmanJerry y Voorhisent teredaresol lution in the House e of Represen ntatives calli ing for an in nvestigation of the BIS. Congress C fail led to c considerthe matter.Voorhiswasali iberalCalifor rnianRepres sentativeand dsupporter ofthe N NewDeal.Lik kewise,hew wasarelentle essopponent toffascism. In1945,Voo orhisattacke edthe p policyofplac cingmenint theOMG(Of fficeofMilita aryGovernm ment)thatha adbeenofficersof A Americancom mpaniestied dtoI.GFarbe en.OMGwastaskedwiththedestruct tionofI.G.Fa arben. O such per One rson assigne ed to OMG was w Colonel Frederick F Po ope. Before the t war Pope had b been a director or top official o of mo ore than one e of I.G. Farb bens Americ can affiliates s. The f following cha apter will ex xpose the sa abotaging of f Trumans denazificatio d n program in i the Jerry Voorhis p postwarper riod.[50] Obviously yif eitherth heBISorI.G.wasopened dtoinvestig gationsinCo ongress,the riskwasma anyAmerican n c corporations would be exposed to tr rading with the t Nazis. Th hose supportive of the Nazis N had bu ut one choice e, V Voorhishadt tobeelimina ated.Thecab balofNazisu upporterssel lectedRichar rdNixontor runagainstV Voorhisinthe e 1 1946election n. Atthetim meNixonwasunknowno outsideofCa aliforniaandonlyabitpl layerinCalif fornia.YetNi ixonreceived d f financial sup pport from th he Wall Stre eet firm Sull livan & Crom mwell.[65] With W a large financial ba acking, Nixon n e easilydefeate edtheCongr ressmenbrandinghimasacommunist.Nixonlat terofferedth hefollowing gtoaVoorhis s s supporter. Of cours se I knew Je erry Voorhis s wasnt a communist, but b I had to win. Thats s the thing you y dont understand.Theimpo ortantthingi istowin.[51 1] T Theearlyfin ancialbackin ngofNixona andNixons coverupof Naziwarcri iminalswillb bedetailedf furtherinthe e f followingcha apter.InJanu uary,ofthef followingyea arWashingto onCongressmanJohnCo offeeintrodu ucedasimilar r resolution.D espitetheco ontinuedpro otestscallingforthedisso olutionofthe eBIS,itsurv vived.AstoM McKittrick,he e w wasamplyre ewardedfor histreasono ousbehavior rfollowingt thewarwith hanappointm mentasvice epresidento of C ChaseNation nalBank. Twoofth helargestUS Sbankshade extensivedealingswithN NaziGerman ny,theRocke efellerowned dChaseBank k a and the Mor rgancontroll led National City Bank of o New York k. Both bank ks handled accounts a for many of the e A Americancor rporationsth hattradedw withNaziGer rmanyduring gthewarsuchasStanda ardOil,Sterli ingProducts s, G GeneralAnili ineandFilmandITT. Incharge eofEuropeanaffairsfor ChasewasJ JosephLarkin n,amember roftheKnightsofMalta andafascist s sympathizer. ormalnumbe erofNazisan ndtheirsupp porterswere ememberso of Thereadershouldnotethatanabno t theKnightso ofMalta.Lark kin,likeMcK Kittrick,hada alonghistory yofaidingth heNazis.Per rhaps,thefirs stexampleo of L Larkin aiding g the fascists s comes from m 1936 whe en he refused d a $4 millio on account fo or the Loyalists of Spain n. W When a simi ilar account was opened in the Par ris branch, he h had the Paris branch h withdraw the deposit t. H However,Lar rkingladlyac cceptedacco ountsbyFran ncoandtheR Reichsbank. Withthe approachof fwar,theties sbetweenth heRockefelle ersandtheN Nazigovernm mentsolidifie edevenmore e t tightly.In19 936theSchro oderBankof fNewYorke enteredinto apartnersh hipwiththeR Rockefellers,formingthe e S Schroder, Ro ockefeller an nd Company y Investmen nt Bank. Tim me magazine e described the partnership as the e e economicboo osteroftheR RomeBerlinAxis.BothA AllenandJohnFosterDul lleswerethe elawyersfortheresulting g f firm.AllenDu ulleswasalsoontheboardofSchrod der. Sixmonth hsafterthes startofthew warinEurope e,Larkinsec cured$25mi illionAmeric canfortheus seoftheNaz zi g government. Accompanyi ingthemone eywasadeta ailedaccount tingoftheas ssetsandbac ckgroundoft tenthousand d N Nazi sympathizers in the United Sta ates. In esse ence, the Nazi governme ent was offe ering the sym mpathizers a a c chancetobu hdollarsata adiscounted dratethroug ghtheChase Bank.Thiss schemewas onlyopento o ymarkswith t those willing g to return to o Germany; a rush on th he German mark m resulted. Chases su upport of the e Nazis wen nt e evenfurther tooutrightd defianceofth heUSgovern nmentandtre easoninthefullestexten ntoftheword d. 940aNewY Yorkdiamond dmerchant, LeonardSm mit,begansm mugglingindu ustrialgrade diamondsto o InMay19 N NaziGerman nythroughPanama.Roos sevelthadissuedafreezeonallmon niesbeingse enttoEurope e.Afewdays s later,atSmit tsrequest,C Chaseunbloc ckedhisacco ountandallo owedthefun ndstoflowto oPanamaan ndthenonto o

Nazi Germany. In another instance on June 17, 1940, as France was collapsing, the head of the Treasury Department,Morgenthau,issuedanorderwithFDRsapprovaltoblocktheFrenchaccountsinthiscountryto preventtheNazisfromlootingthosefunds.WithinhoursChaseofficialsunblockedtheaccountandallowedthe fundstoflowtoSouthAmericaandthenontoNaziGermany. On June 23, 1941, the FBI reported to Morgenthau that its monitoring of funds through Chase banks showed several payments to American oil companies from the Nazis. There was overwhelming evidence of Standard Oil receiving money from the Nazi government. The proNazi publications from The German AmericanCommerceAssociationdisclosedconnectionsbetweenChaseBankandEmilPuhlandtheReichsbank throughout 1940. Additionally, it revealed that the Reichsbank maintained accounts with both Chase and NationalCitybanks. LarkinwenttoextremeeffortstoinsurethattheParisbranchstayedopen,evenafterthebombingofPearl Harbor.Throughoutthewar,LarkinallowedtheknownNazicollaborator,CarlosNiedermanntomanagethe Parisbranch.ByMay1942,HarryDexterWhitehaduncoveredevidencethatNiedermannwasenforcingNazi restrictionsonthewithdrawalofJewishfunds. Whiteisarguablyoneofthegovernmentsmostimportantpostwareconomists.Whitewasthearchitectof theInternationalMonetaryFund(IMF).However,duetohisliberaleconomicpolicies,aswellashisrelentless pursuit of the financial dealings of large corporations with the Nazis, he had to be removed. By 1948, White unjustlywasbrandedasanagentoftheSovietUnion.OneofhischiefaccuserswasWhittakerChambers,who may have been a Nazi agent. Even with the recently released Venona tapes, no conclusive evidence exists of WhitebeingaSovietagentasclaimedinseveralbooks.Whitediedofaheartattackthreedaysaftertestifying beforetheHUACcommittee.[89] Additional evidence shows that Larkin was directing the actions of the Paris branch at least six months afterthebombingofPearlHarbor.Infact,theParisbranch,whilemaintainingNaziaccounts,hadtheAmerican accountsblocked.ATreasuryreportdatedDecember20,1944revealedthatNiedermannwasanoutrightNazi collaboratorandthatthefactwasknownbyLarkin.ThereportfurtherrevealedthatLarkinwasawareofthe NazisplantousetheseaccountsfollowingthewarasaninstrumentofGermanpolicyintheUnitedStates. Evenmoredamning,withLarkinsfullknowledge,theParisbranchofChasehandledtheaccountofOtto Abetz,theNaziambassadortoParis.Abetzsaccountwasusedasafunneltopourvastamountsofmoneyinto several French companies that were collaborating with the Nazis. The money, in some cases, was used to supportthetortureoftheFrenchpeople.ConstantcommunicationsweremaintainedbetweentheParisbranch andtheNewYorkoffice.ThefollowingquotefromaletterfromAlbertBertrandoftheChaseVichybranchto Larkinin1942atteststothecommunicationsandmore,revealingtheshamelesscollaborationbetweenChase andtheNazis.[58] ThepresentbasisofourrelationshipwiththeauthoritiesinGermanyisassatisfactoryasthe modus vivendi worked out with the German authorities by the Morgans. We anxiously sought and actually obtainedsubstantialdepositofGermanfundswhichfundswereinvestedbyChaseinFrenchtreasury bankstoproduceadditionalincome.[59] After the war Morgenthaus investigators in Paris found further shocking evidence of Chases collaborations withtheNazis.TheyfoundthatatthetimeofthefallofParisinJune1940,S.P.Bailey,aUScitizenandmanager oftheParisoffice,offeredtoimmediatelyliquidatethebranchinapatrioticgesturetoLarkin.Larkinpromptly firedMr.BaileyandappointedaknownNazicollaborator.In1946,LarkinappointedthecollaborationistAlbert BertrandtotheboardofChaseinParis. In addition, to the already mentioned dealings of Standard Oil with the Nazis, Major Charles Burrows of Military Intelligence reported to the War department on July 15, 1941 that Standard was shipping oil from ArubaintheDutchWestIndiestotheCanaryIslands.Partofhisreportfollows. Standardisdivertingabout20percentofthefueloiltothepresentGermanGovernment.Aboutsix shipsoperatingonthisroutearereputedtobemannedmainlybyNaziofficers.Seamenhavereported to the informant that they have seen submarines in the immediate vicinity of the Canary Islands and have learned that the submarines are refueling there. The Informant also stated that Standard Oil Companyhasnotlostanyshipstodatebytorpedoing,ashaveotherAmericancompanieswhoseships operatetootherports.[60] By1941,itwaswellknownthatStandardwassupplyingtheNaziswithvitalfuel.TheBritishblockaderanthe entirelengthofNorthandSouthAmericastoppingshipsboundforGermanywhereverpossible.Toeludethe

British blockade, Farish sent the fuel to Russia and then transported it across Asia via the TransSiberian RailroadtoHitlerswaitingPanzers.AnotherrouteFarishdevisedtoeludetheblockadewastoshiptheoilto VichyNorthAfricaonceHitlerinvadedRussia. William La Varne, a dedicated employee of the Department of Commerce, uncovered the details of Standards dealings with the Nazi airline, LATI. LATI was not subject to boarding searches by the British blockadeandwasusedtoferryspiesintotheAmericas,aswellastotransportlargequantitiesofpropaganda and drugs into Latin America, all addressed to Sterling Products. Only Standard could make these flights possible,asthetripfromEuropetoSouthAmericawasnotpossibletomakewithoutrefueling,unlesstheyhad thehighoctanefuelcontrolledbyStandard.Tosupplytheairline,Farishchangedtheregistrationofmanyof his ships from German to Panamanian registry. Under Secretary of the Navy and vice president of General AnilineandFilm(anothercompanywithextensivedealingwiththeNazis),JamesForrestal,promptlygranted themimmunity. SummerWelles,aStateDepartmentemployee,onMarch31,1941presentedadetailedreportofrefueling stations for Nazi vessels in South and Central America. Chief among the suppliers was Standard Oil of New Jersey and California. On May 5, 1941, the US Legation in Managua, Nicaragua reported Standard Oil subsidiaries were distributing Nazi propaganda. Further investigations by John Muccio of the US Consulate revealed that Standard was distributing Nazi propaganda around the world.[61] Such were the dealings of Standard Oil at a time when Nelson Rockefeller was at his post of Coordinator of InterAmerican Affairs, an intelligenceagencywiththemissiontostoptheNaziinfluenceinSouthAmerica. By1944Americawasseriouslyshortonoil.TheupcomingDDayinvasionwouldrequireanevengreater amountandastablesupply.Lackofoilwouldcanceltheplannedinvasionorimperilthetroopsashoreifitwas notforthcoming.Atthetimeitcosttencentsabarreltobringtheoilup,anotherfifteencentsforroyaltiesto theSheikhofBahrainor20centsfordrillinginArabiaandanothertwentyonecentsfortheroyaltiestoIbn Saud. However, prior to the invasion, W.S.S. Rodgers of Texas Company and Henry Collier of Standard Oil of CaliforniainformedIckesthatthepriceforthegovernmentwouldbe$1.05abarrel.Thiswasalmostdouble the current price. The offer was to take it or leave it; Ickes was forced to accept.[62] The threat of an interruption of supply if the US government should intervene was explicit. Even more grievous was the fact thatRodgersandCollierpaidnoincometaxontheirillgottenprofits,astheyhadregisteredintheBahamas. Theirprofitof$120millionwasmadeona$1milliondollarinvestment. Suchbehaviorisnotonlycriminal,itistreasonous.Standardwasputtingitsownselfinterestaheadofthe country.TheywerewillingtoputthelivesofGIsindangerandevenruntheriskofadefeatinEurope.Ineffect, StandardblackmailedFDRsadministrationforprivategain.Nochargesofwarprofiteeringorotherwisewere everfiled.LikeSeldessaid,thebigboysareimmunefromprosecution. Such deals were made possible by the large faction within the State Department of antiSemitics and outright Nazi sympathizers. One of the Nazi sympathizers with a large degree of influence within the State DepartmentwasWilliamBullitt.HeconductedapersonalvendettaagainstthepreviouslymentionedSummer Welles. Welles was the most powerful force within the department against fascism and unrelenting in his pursuit of Nazis. Welles, however, had one weakness that Bullitt would exploit. He was bisexual. Bullitt conspiredwithHooverin1940toinvestigateWelles. InSeptemberHooverhiredtwoPullmanporterstoflirtwithWellesoncehewasdrunkaboardatrainback to Washington after attending the funeral of William Bankhead. Hoovers agents then noted his drunken conversations and sexual acts. It would take until 1943 before FDR would call for his resignation under pressurefromBullitt.WellesdismissalallowedtheNazisympathizersfreereinintheStateDepartmentand derailedhispromisingcareer.Onceagainastaunchopponentoffascismwasremovedfrompower.However, fittinglyenough,FDRwassooutragedatBullittthathisinfluencewasrenderedimpotent. Earlyin1942,theStandardOilrepresentativeinBerlin,KarlLindermann,heldaseriesofurgentmeetings with the two directors of American ITT in Germany, Walter Schellenberg, head of the Gestapos counterintelligence,andBaronKurtvonSchroderoftheBIS.Asaresultofthesemeetings,GerhardtWestrick, theCEOofITTinNaziGermany,flewtoMadridtomeetwithSosthenesBehn,thefounderofITT.Themeeting centeredonhowlinkswiththeGestapoandITTcouldbeimprovedandhowITTcouldimprovetheentireNazi telephone system and a host of war munitions. Westrick was also an associate of John Foster Dulles. He not only represented ITT, but also served as an agent for Ford, GM, Standard Oil, the Texas Company, Sterling ProductsandtheDavisOilCompany,allofwhichwereguiltyoftradingwiththeNazis.

The fascist government aided Behn because of his system of assuring politicians promising plums on his boards of directors. One such example was his Spanish chairman, the Duke of Alba, a major support of both FrancoandHitler.BehnwascloselyconnectedwiththeCircleofFriendsoftheGestapothroughHenryMannof the National City Bank. Behn increased his donations to the Circle of Friends after Pearl Harbor. Besides owning ITT, Behn acquired a 28 percent share of FockeWulf Company. With the aid of ITT, FockeWulf was abletoimprovetheaccuracyoftheGermanbombersquadronsandlaterhadahandintheV2thatmenaced England. After the bombing of Pearl Harbor, Behn enter into an agreement with the Nazi government which was essentiallyapartnershipofanAmericancorporationwiththeNazis.TheagreementprohibitedtheNazisfrom acquiring the shares of ITT, but placed the Nazis as administrators of those shares. Behn and his directors made repeated requests for licenses to allow his companies in neutral countries to trade with the Nazis. Morgenthaurefusedallattempts,butinopendefiancetotheUSgovernmentBehnproceededanyway. Besidesprovidingasmanyas50,000fusesamonthforartilleryshellsandbombsforNaziGermany,Behn operated a worldwide communications network that continued to serve as a conduit for Nazi propaganda throughout the war. ITTs operations in South America were infested with Nazis, who oftentimes were in charge. However, perhaps the most grievous act of ITT during the war was providing the Nazis with highly sophisticatedcommunicationsequipment.ThisequipmentallowedtheNazistobreaktheUSdiplomaticcode. In1945,aspecialSenatecommitteewassetuponinternationalcommunicationswithBurtonWheeleras chairman. In the appendix to the report, an extensive dossier revealed the coownership with Germany and JapanofRCAandITT.Noonenotedthesignificanceofthereport.Likealways,thebigboyssupportingNazis were immune from prosecution. In fact, shortly after the war Behn receive millions in payment for his war damagedplantsinNaziGermany.Theverysameplantsthatmanufacturedartilleryshellsthatraineddownon theGIsatNormandyandthroughoutthewar.[63] OnecannotdiscussNaziGermanywithoutmentioningI.G.Farben,thegiantchemicalfirmresponsiblefor themanufactureofZyklongasusedintheconcentrationcamps.In1929HermannSchmitzandjointchairman ofI.G.Farben,MaxIlgner,alongwithWalterTeagle,EdselFordandCharlesMitchellofNationalCityBankset uptheAmericanFarbenorganization.In1931,HerbertHooverhostedSchmitzintheWhiteHousesharinghis viewthatRussiamustbecrushed.HooverhadlosthisextensiveoilholdingsintheRussianrevolution.Schmitz wasabletosell$13milliondollarsofdebenturesthroughNationalCityBankinonemorning,alargefeatinthe middleofthedepression. In1932SchmitzjoinedforceswithKurtvonSchroderoftheBIS.SchroderwasafanaticalNazianddirector oftheprivatebankJ.H.Stein.SchroderwasalsoanSSmanlinkedcloselywithWinthropAldrichofChaseBank, WalterTeagleofStandardOilandBehnofITT.Schroderwasalsothepersonthatsetupthemeetingbetween HitlerandvonPapenthatledtoHitlersappointmentaschancellor.Schroderwasalsoinstrumentalinsetting up the Circle of Friends of the Economy, a fund for the Gestapo under Himmlers control. Representatives of ITTandStandardOilwerealsomembers. American I.G. owned General Aniline and Film and Ozalid, a blueprint firm. General Aniline supplied the ArmywiththekhakidyeandthebluedyetheNavyused.ThisgaveSchmitzssalesmentheperfectcoverfor spyingonUSmilitarybases.AlsoconnectedthroughGeneralAnilinewereAgfaAnsco,ahugefilmcorporation. This latter concern provided the Army and Navy with their private training films and photographs of secret installations.EveryblueprintfromOzalidwassenttoBerlin.In1939withwarraginginEurope,allreferences to I.G. were dropped and the company was transposed into I.G. Chemie, a Swiss corporation controlled by SchmitzsbrotherinlawwiththeaidoftheNationalCityBankofNewYorkandChaseBank.Theboardofthe new corporation still included William Weiss of Sterling Products and Edsel Ford and in the place of Teagle, JamesForrestal,whowassoontobecometheUnderSecretaryoftheNavy.Anotherboardmemberwasformer Attorney General Homer Cummings, the leading defense lawyer for the newly transformed corporation. CummingssuppliedThomsen,theNazigovernmentschargedaffaireswithRooseveltsplansforGermany.Ina telegraphmarkedtopsecrettoGermanyfromThomsen,CummingshadrevealedtheplansofFDRtodealwith Germany. Eventually the firm was placed under government control for the duration of the war. GAF was placedunderthedirectorshipofLeoCrowley,afriendofbigbusinessandbigmoney. NormanLittell,anantitrustlawyerintheattorneygeneralsoffice,pursuedSterlingProductsrelentlessly. ItparticularlygalledhimthatSterlingwithheldtheBayerpatentforAtabrine,aquininesubstitute.Thousands ofGIsdiedneedlesslyfrommalariaforthelackofquinineoratabrine.Quininehadbecomeespeciallyscarce

aftertheJapaneseseizureoftheDutchEastIndies.However,atabrinewasfreelyavailabletothoseonthelistof proclaimedcustomersinSouthAmerica,butCrowleyrefusedtoreleaseitforusebyAmericansoldiers. LikemanystridentantiNazis,LittellsenemieseventuallyforcedFDRtodismisshim.However,justprior toRooseveltsdeath,heaskedtomeetwithLittellintheOvalOffice.FDRtoldLittellthathewouldliketosee Biddleimpeachedfortreason,butinhispresentweakenedphysicalconditionthetaskwouldbetoodifficult.In 1945LittellfoundsupportforaninvestigationofSterlingDruginCongress.AlSmithofWisconsinandJerry Voorhis of California entered Littells charges into the Congressional Record, demanding a fullscale investigation.Theinvestigationnevertookplace.WithinafewdaysoftheresolutionBiddlequietlyresigned andironicallytookthepostofprosecutoratNuremberg.[64] Thus,LittellfacedthesamefateasmanyoftheotherantiNaziswithintheRooseveltadministrationforced toresignwiththeircareersendedinashipwreckduetopressurefromunseenforces.Theprocessofpurging thestridentantifascistsfromgovernmentcontinuedintothe1950s,climaxingperhapswiththetrialofAlger Hiss. Yet, most of the proNazis successfully managed to rehabilitate themselves thanks to the same unseen forces with more power than the President. As already noted in this chapter, many of the proNazi bankers receivedchoicepromotionsfollowingtheendofthewar.ManyoftheproNaziCongressmenremainedinoffice foryearsafterthewar.EventheproNazipublisherDewittWallacewasrewardedwithanovernightstayinthe Lincoln Bedroom during Nixons administration for his proNixon slant in The Readers Digest, as well as his large campaign donations. (The reader should note the Republicans silence on this matter during Clintons term.)WallacepersonallygaveNixonoverahundredthousanddollars.MeanwhileWallacesragmanagedto contributeevenmorebysmugglingthemoneyinthroughtheBahamas.[66] Not a single American corporation or American businessman guilty of supplying Hitlers war machine duringthewarhaseverfacedtrialinoverfiftyyearssincetheendofthewar.Thefollowingchapterwilllook closelyatthebetrayalofRooseveltspledgetobringtojusticethosethataidedtheNazis,includingthosewithin corporateAmericathatbuiltHitlerswarmachine.

Part 6: Nativists Adopt Fascism

Besides a wellfunded propaganda campaign by the profascist forces within the United States and the decidedly proNazi slant of many of the nations leading newspaper chains, the lack of education was a contributingfactortothepublicrehabilitationofproNazielements.Duringthe1930s,mostAmericanslacked a high school education. Even the typical GI was equipped with only an eightgrade education, thereby justifying the need for the previously mentioned Army Orientation Program. The table below from a 1964 studydetailstheassociationofracismwitheducationandreligion.[29] PERCENTAGE EDUCATION PREJUDICED 8thGrade 60 HighSchool 50 SomeCollege 32 CollegeGraduate 27 INCOME Under$5000 53 $5000$9999 44 $10,000$14,999 44 $15,000and over 40 RELIGION Catholic 39 46 LiberalProtestant 53 Fundamentalist RELIGIOUSCOMMITMENT Low 38 Middle 38 High 62 AGE Under35 44

3554 45 54andolder 55 Other polls have shown that antiSemitism and intolerance mirrors the results in the table above. Before lookingatthedetailsoftheresultsinthetable,oneshouldfirstnotethatthemodestgainsmadebythecivil rights movement up until the time of the study reduced the level of prejudice. This is readily apparent by looking at the level of prejudice by age. Again, we see that lower income earners were more likely to hold prejudicedviews,aviewconsistentwiththeprofilegivenearlierforthetypicalmemberoftheBlackLegion. ThetypicalBlackLegionmemberwaspoorlyeducatedandcamefromthehillcountryofthesouth.Likewise, theBlackLegionwascomposedmainlyofmemberswithahighlevelofcommitmenttotheirfundamentalist religion. The three largest effects on the rising level of prejudice were lower education levels and the amount of religiouscommitmentaswellastothetypeofreligion,matchingtheprofileoftheBlackLegionmembers.Not onlydoesthereligiousgroupaffectthelevelofprejudice,butalsowitharisinglevelofcommitment,thelevel of prejudice increases, implying that religion itself was inherently racist. Considering the close relationship betweentheKlanandreligionpresentedinanearlierchapter,thisshouldnotbesurprising.Againlookingat thelevelofprejudice,onecanseethatthefundamentalistexhibitsthehigherdegreeofprejudiceinlinewith the heavy concentration of such religions in the south. The reader should not be surprised by such an implication,aschurchesandreligionwereusedasagentstoenforcesegregationinthesouth,alongwiththe riseoftheIdentityreligionatthehandsoftheproNazipreachersGeraldL.K.Smithandothers. Norshouldthereaderbesurprisedbytheriseofracisminthe1980saftertheriseoffundamentalismin the 1970s. An abundant supply of evidence exists to solidify the rising levels of racism in the 1980s and the increasednumbersoffundamentalists.OnesuchpieceofevidencewasthebanoninterracialdatingattheBob Jones University, an issue that arose in the 2000 primary election. Its no accident that the right wing is engagedinfranticeffortstodoawaywithAffirmativeActionandeffortstopasshatecrimelegislation. Evenasweenterthe21stCentury,evidencestillaboundsoftheracisminreligion;oneonlyneedlookat theministriesofhatebysuchpeopleasPatRobertsonorJerryFalwell.AnotherindicatoristherecentBaptist positionadoptedattheirnationalconventionofconvertingandsavingJews.Thewriterdoesnotmeantoimply that the vast number of churchgoers are bigots, but rather the writer wishes to point out the bigotry of the leadersandthefanaticalfollowersofwhathasbecomeknowasthereligiousright. Thisgroupoffundamentalistshascarriedoutatwentyyearcampaignofterroragainstabortionclinicsina lowintensityurbanwarfare,bombingtheclinicsthemselvesandmurderingthestaffmembersatothers.Ifthis twentyyearcampaignofterrorwerecompressedintoonenight,itwouldbenodifferentthantheKrystallnacht terrorizationoftheJewsatthehandsoftheNazis,andthevoterswouldbedemandingjustice.Theuseofsuch lowintensityurbanwarfarespreadoveryearshaslulledAmericansintoafalsesenseoftheinherentdanger posedbythesegroups.Agreatmanypeoplehavesettledintoadangerousstateofacceptingtheviolenceand actionsoftheseterrorists,shruggingoffthenewsofanotherabortionclinicbombing. Thisacceptanceoftheviolencedirectedtowardsabortionclinicswasreadilyapparentafterthedestruction oftheWorldTradeCentersonSeptember11,2001.IntheaftermathoftheattacksontheTradeCenterandthe Pentagon,letterscontaininganthraxsporesweredeliveredtoseveralmediasourcesandliberalCongressmen. However, abortion clinics and Planned Parenthood centers received a deluge of such threatening letters. Although none proved to contain anthrax spores, the FBI showed little interest in investigating the perpetrators.Infact,abortioncentershavebeenreceivingsuchthreatsthroughthemailforseveralyearswith noresponsefromtheFBI. Noteveninthemediadoesonefindthesamesenseofoutragebeingventedasthatwhichwasventedover thebombingsconnectedwiththeWeathermeninthe1960sand1970s.However,asingleactionbyELF(Earth Liberation Front) will expend volumes of ink in the press. The media is guilty of conditioning the American publictobelievethattheonlythreatisfromtheleft.YettheOklahomaCitybombingstandsastestamentthat therealthreatisfromtheright. Asagroupthefundamentalistsexhibitallofthemajortraitsoffascism:antiliberalism,antisocialism,anti communism,antilabor,extremelynationalistic,andultimatestatism.Ifthereaderhasanyfurtherdoubts,then notethefollowingquotebyafundamentalistministervisitingtheWhiteHouseafterreturningfromGuatemala inthe1980s.

TheArmydoesntmassacretheIndians.Itmassacresdemons,andtheIndiansaredemonpossessed; theyarecommunist.WeholdBrotherEfrainRiosMottliketheKingofDavidoftheOldTestament.Heis thekingoftheNewTestament.[31] ThequoteaboveisamirroroftheNaziswarontheJews.ThefirststepintheNazisfinalsolutionwastofirst demonize the Jews followed laterby open attacks on Jewish businesses, homes and synagogues, followed by seizureofproperty;onlythendidthecampsensue.Itispreciselythisprocessthatmakessuchstatementsas thequoteabovesodangerous.Racismisalearnedtrait;itsearlystepsservetodesensitizesociety.Moreover, leftuncheckedoncetheprocessofdesensitizingisover,openattacksontheminoritygroupsproceed,followed by genocide as the final result. If the reader has any doubt of what would happen if the religious right ever cametopowerinthiscountry,heshouldrereadthequoteaboveonemoretime. ThepreviousexampleoftheconversionoftheBlackLegionfromessentiallyanativistgroupintoafascist groupisequallyvalidforwhatpassestodayasthereligiousright.Forthereaderthatquestionsthisstatement, heshouldcomparethedatainthetablewiththedescriptionoftheaveragememberoftheBlackLegion. In fact, the association of various nativist religious groups with the right wing of American politics goes backtothefoundingoftherepublicandthisshouldnotsurprisethereaderuponalittlereflection.Liberalism in this country has always been associated with progress and change, while conservatism has always been associatedwithmaintainingthestatusquo,andthereisnoothergroupthatismorestatistthanthevarious fundamental religious groups. At the first sign of change, they invoke a bloody crusade against what they perceivetobeanonslaughtofgodlessbehaviorandtheworkofthedevil. The history oftheUnitedStatesisrepletewith examplesof nativistreligiousgroups aligningthemselves withtherightwingpoliticalspectrum.PerhapsthebestexamplewouldbetheantiCatholicmovementstarting inabout1820andextendingthroughthe1850sendingwiththeKnowNothings.Thevariousfactionsofthis antiCatholic movement aligned with the conservative Whigs before eventually forming their own party. In essence,itwasaunionofconveniencebetweentheconservativeeliteandthebigoted,aswellasafearthatthe CatholicimmigrantswerealigningthemselveswiththeliberalDemocratsofthetime.NorwastheantiCatholic movement simply a battle at the ballot box. At various times violence broke out, such as the riot in 1844 in Philadelphia in which a Catholic Church was burnt. Once again, the members of the antiCatholic movement duringthistimecamefromthelowerclasses.[32]Theireffectuponelectionsandvariousactsoflegislationis simplybeyondthescopeofthisbookandthereadershouldrefertothehistoryoftheKnowNothings. AstestimonytothezealofreligiousbigotryintheUnitedStates,theKnowNothingswerethelargestthird party ever assembled. They succeeded in electing numerous officials to Washington as well as many to the state houses as well. The demise of the KnowNothings only came about through their success as the RepublicanPartyabsorbedtheKnowNothings.TheantiCatholicmovementcontinuedwellafterthedemiseof theKnowNothings,continuingrightintothe20thCenturyandtheelectionofJFK.Infact,thecauseoftheCivil War was blamed on the Catholics by many members of the Republican Party and far right groups into the 1880s,eventheassassinationofLincolnwasdescribedforawhileasaCatholicplotbysome. The present day infiltration of the Republican Party by the religious right is nothing more than a repeat performanceandadangerousoneatthat.Thepasthistoryislitteredwithexamplesofreligiousbigotrybeing usedasanagentofrepressioninthiscountry.WiththeRepublicansfocusedondestroyingthesocialwelfare and safety net, as well as to allow churches to dispense federal aid, the future looks extremely bleak if the countryeverentersanotherextendedeconomicdownturnasitdidinthe1980s.Infact,asgovernor,George W. Bush allowed Texas to support faithbased treatment centers for drug addiction, child care and welfare services. Such connections between religion and government are strictly forbidden by the Constitution. However, in his efforts to pander to the religious right, Bush has taken it one step further; he has exempted suchfaithbasedservicesfromallregulation.Theyarefreetooperateanywaytheychoose.[49]Theyarefree tooperateinunsafebuildings,freefromhiringqualifiedstaff,andfreetoabusetherightsofthosethatthey pretendtohelp. Even more ominous was the secret deal cut between the Salvation Army and the George W. Bush administrationin2001.InthatdealtheSalvationArmyagreedtoprovideupto$110,000amonthtolobbyfor Bushsfaithbasedinitiative.Inexchange,theBushadministrationagreedtoexempttheSalvationArmyfrom allfederalandstateantidiscriminationlawsonthehiringofgays.[90] Suchsecretnegotiationsareshamefulenough,however,theSalvationArmyisamemberofalargergroup of fundamentalists seeking to undermine the rights of gays. The Salvation Armys web site is hosted by the ChristianWebportal,Christianity.com.ThiswebportalhostssuchotherantgaysitesasExodusInternational

and Pat Robertsons Christian Broadcast Network. Nor does this web portal simply serve as a web host, but thereisinfactacomminglingbetweentheChristianity.compartners.[91]Although,themediadidreportthe secret negotiations, the media quickly dropped the story or relegated it to the back pages. No mention was madeinthenews,however,oftheSalvationArmyalliancewiththeantigayChristianity.com.Moredisturbingis thefactthatBushhaschosenforhisinitiativetwomenconnectedwiththeCIAsManhattanInstitute,JohnJ. DiIulio,Jr.andStephenGoldsmith. Such actions can only further the connection between fundamentalists and hard right ministries and the CIA. Both men are also connected with Charles Murray, author of the racist The Bell Curve. Additionally MurraywasaconsultantonTommyThompsonsWisconsinWelfareReformprogram.[92] The mixing of religion with government as Bush proposes has never succeeded without catastrophic consequencesasthefollowingquotesservetoremindus. ThusinwardlyarmedwithconfidenceinGodandtheunshakablestupidityofthevotingcitizenry,the politicians can begin the fight for the remaking of the Reich as they call it.Adolf Hitler, Mein Kampf,Vol.2,Chapter1 Secular schools can never be tolerated because such schools have no religious instruction, and a general moral instruction without a religious foundation is built on air; consequently, all character trainingandreligionmustbederivedfromfaithweneedbelievingpeople.AdolfHitler,April26, 1933,fromaspeechmadeduringnegotiationsleadingtotheNaziVaticanConcordantof1933. The KnowNothings were not the first group promoting religious bigotry to penetrate American politics. PerhapsthefirstwastheIlluminatiinthe1790s.ThismythofasecretgrouporiginatinginGermanywiththe goal of the destruction of all religion has been disproved many times in the past. Yet, it is still popular and makingsomewhatofacomebackinrightwingcirclestoday,particularlyamongtheIdentityreligionandthe hardrightgroupsthathaveadoptedtheIdentityreligion.Anothergroupthathasbeenthevictimofreligious bigotrythroughoutthehistoryofthiscountryistheMasons. AntiSemitic bigotry only began in earnest in the latter part of the 1800s as more and more Jewish immigrants from Eastern Europe entered the country. This roughly coincides with the beginnings of the IdentityreligionintheUnitedStates,areligionbasedsolelyonracismthatwouldemergefromtheministries of hate of Gerald L.K. Smith and Gerald Swift in the 1930s. These two ministers of hate and Father Coughlin preached of the dangers of International Bankers, a code word for Jews. Both Smith and Swift were fundamentalinthedevelopmentofwhathasbecometheIdentityreligion. Asestablishedinthepreviouschapter,SmithwasbothamemberoftheSilverShirtsandcloselyassociated with Huey Long. It is not surprising then that the Identity religion espouses the traits of fascism today. The fascistnatureofthosethatfollowtheIdentityreligioncanbeseenclearlyintherightwingextremistgroups thathaveadoptedit.ItsclearlyvisibleinthePosseComitatus,theAryanNationsandothers.Thefascisttraits ofthesegroupswillbemadeclearerinalaterchapter.Fornowitwillsufficethereadertounderstandthatall of those groups are fanatically opposed to communism, socialism and anything liberal; they are racists and opposedtounions. More interesting is how the more mainstream elements of the religious right became indoctrinated with the fascist agenda and adopted a wildly probusiness, antiunion view. As already shown in this chapter, the fundamentalistsinthepastwerealignedwiththerightandwerestatist.Inthepastthefundamentalistswere alignedsometimeswithbigbusinessandatothertimesagainst.Asgroups,fundamentalismandbusinessare statist by nature; its only natural for the two to align themselves together more often than to oppose one another. Otherwritershaveattributedthiscloseassociationtotwofactors,therabidfearoftheredatheistandlarge financialdonations.TheredhysteriafollowingWWIwaspushedintofrenzybyusingthefundamentalistsfear oftheredatheist.Unionsatthetimewereportrayedascollectivist,socialistandfinallycommunistinnature. Likewise, demagogues labeled unions as foreign and unAmerican. Moreover, the locating of reds within the earlylabormovementfollowingWWIonlyfannedtheflamesthatmuchmore.Thereadershouldbeawarethat thePalmerRaidsarrestedover6,000individuals,butintheenddeportedlessthan600,astheevidencewas simply not enough to warrant deportation or any other charges. During the 1920s, the IWW became more associatedwithsocialismandcommunismthanwithunionactivities. Duringthelate1930s,thenativistandfundamentalistreligiousgroupsadoptedthefascistideology.Prior to adopting fascism, the ideology of these groups was centered about bigotry and isolationism. The seed for

racismandbigotryhasalwaysbeenahallmarkofnativistgroupsintheUnitedStates.Betweenthewars,the twolargestnativistgroupsweretheKlanandtheprohibitionists.TheKlananditsrelationshiptobothracism and religion have already been covered and doesnt need to be expanded on here. Moreover, there was an elementofantiCatholicbigotryintheprohibitionmovement. However, after the war the nativist fundamentalist groups all took on a global view with many openly calling for a new war with the USSR. Besides a global view, these same fundamentalist groups became fanaticallyantiunion,antiliberalwithaprocorporateview.Mostwriterssimplysubscribethisconversionto largefinancialdonationsfromcorporationsandarabidfearofatheisticcommunism. Althoughlargecashdonationsfromcorporationsandtherabidfearofatheisticcommunismcertainlywere large factors in this conversion, this writer believes several other factors were equally important. The abandonmentofisolationisminfavorofdirectconfrontationofcommunismcanserveassortof aguidepost marking the division between a traditionally fundamental group and one that exposes the fascist ideology. EvenduringtheRedScareof1919,thefundamentalistgroups,althoughrabidlyopposedtocommunism,failed to call for a direct confrontation. Instead they believed in the fortress of America as a bulkhead against the atheisticredhorde. Instudyingtheadoptionoffascismbythefundamentalistgroups,theimportanceoftheministersofhate during the 1930s cannot be underestimated. The influence of Gerald Winrod and Gerald L.K. Smith is still readilyapparentinthereligiousright.ManycreditthepresentfundamentalistmovementtotheworkofBilly Hargis.Indeed,HargisChristianCrusadeofthe1950sandearly1960shashadanenormousimpactonshaping the fundamentalist or religious right movement. Hargis career in many ways served as a bridge between fascism and todays fundamentalist groups. Moreover, a quick look at Hargiss career clearly establishes the linkbetweenfascismandfundamentalism. PoliticallyHargisisbestknownforhisrabidanticommunistviews.However,hiscareerispunctuatedwith linkstofascistgroupsfromthe1930sand1940s.In1956,HargisdistributedtwopamphletsoneentitledOur 1956PoliticalCrisisandtheotherStevensonandKefauver.Bothwerekeyedtotheelection;thelatterone attemptedtolabelStevensonandKefauverascommunists. IntheOctober1959 Christian Crusade,HargisstatesunequivocallythathecalleduponGeraldWinrodfor helpinstartinghisradioprogram.IntheDecember1956issueof Christian Crusade,heinformshisreaderofa meetinghehadwiththepublisherofthenotoriouslyfascist American Mercury.The Mercurywasfinancedina large part by the founder of the Pioneer Fund, Wickliffe Draper. Draper was an extreme racist. The reader shouldnotethatin1967theDraperfamilybecamethelargestshareholderinRockwellInternational,aprime defensecontractor.LikeDraper,Hargiswasaracist,althoughheloudlydenouncedthosethatlabeledhimas suchasliars. However,Hargisracistviewswerereadilyapparentathis1962AntiCommunistLeadershipSchool.Oneof theinvitedspeakers,R.CarterPittmanstatedthatthechiefdifferencebetweenNegroesinAmericaandinthe CongoisthatintheCongotheyeatmorewhitepeople. Moreover,Hargisdescribedtheearlycivilrightsmovementofthe1950sasfollowssegregationandracism isanartificeinstigatedbytheCommunists.DuringtheLittleRockschooldesegregation,Hargisdistributeda pamphletwrittenbythefascistJoeKamp.Hargiswasalsoamemberof theracistLibertyLobbyandseveral otherrightwingextremistgroups.In1961,HargisboughtthefilesofAllenZoll.Zollhadbeenanassociateof Gerald L.K. Smith and had founded the American Patriots, Inc., a fascist group that was on the Attorney Generalswatchlist.[93] ThelingeringinfluencesofWinrodandSmitharereadilyapparentinthecareerofHargis.BothWinrodand Smith cast a long shadow of influence over the fundamentalist movement. Both were close associates of the previously mentioned Harvey Springer of Englewood, Colorado. Springer was far from being just a poor countrypreacher;hewasoneofthemoreinfluentialvoicesinthefundamentalistmovement.Hewasoneofthe founding members of the International Council of Christian Churches (ICCC) and served on its executive committeeuntilhisdeath.TheICCCopposedtheliberalWorldCouncilofChurchesderidingitascommunist infiltrated. Another associate of both Smith and Winrod was Kenneth Goff, head of the National Organization of ChristianYouth.ApreviouschapterdetailedtheassociationbetweenRiley,thefounderofNorthwestern,and Winrod. Winrod was also closely associated with Harry Hodge, a leading member of the fascist Christian American Association. Hodge used his friendship with Martin Dies to intercede on the behalf of Winrod to preventtheDiesCommitteefrominvestigatingWinrod.[94]

There were many other fundamentalist ministers putting forth the Nazi line throughout the 1940s. For example, William D. Herrstrom of Minneapolis and publisher of the Bible News Flashes was extremely anti Semitic,antiBritish,andprofascist.Followingthewar,HerrstrombecameoneofthefirstHolocaustdeniers. Other fundamentalists preaching the Nazi ideology in the 1930s and 1940s include Harry Grube, Mobile, Alabama;R.M.Parr,Detroit,Michigan;GlenSmith,PalmerLake,Colorado;S.J.GrearofDenver,Colorado;C.K. Peterson,Phoenix,Arizona;andW.C.Love,HazelPark,Michigan. Whileseveraloftheleadingtheologiansofthefundamentalmovementinthe1930sand1940sweretrue fascists, many others were embedded with the seed of fascism, antiSemitism. However, there are additional factorsfortheadoptionoffascismbythefundamentalmovement. 1. FearofatheisticcommunismastypifiedbytheRedScare. 2. Largefinancialdonationsbybusinessleaders. 3. FoundingofreligiousgroupsbyfascistssuchastheAmericanBibleAssociation. 4. ThefoundingofreligiousgroupsbybusinessleaderssuchastheChurchLeague. 5. Alustforpowerfromwithin. 6. TheCIA/FBIuseofreligiousgroups. NotethesixthfactorismostlyapplicabletotheperiodfollowingWWIIandwillbecoveredinlaterchapters, althoughtheassociationofsomeofthereligiousgroupswithHooverandtheFBIhasalreadybeenalludedto. The first factor has already been fully covered both in this chapter and the chapter on the 1920s; further comment is unnecessary. The purge of liberal and leftist leaders in the 1920s had one additional factor that mustbeconsidered:itdepletedanyliberalinfluencethatmayhavebeenpresent,leavingthesegroupsinthe hands of the hard right wing extremists. Depleted of any moderating forces, these fundamental groups were moresusceptibletofascistideology. Thepastislitteredwithvariousexamplesofbusinessleadersmakinglargefinancialdonationstovarious church groups. Perhaps one of the largest contemporary donors to various right wing religious groups is BunkerHunt.Additionally,theCoorsfamilyfiguresprominentlyindonationstovariousconservativereligious organizations. Numerous examples in the past could be cited as well. The following example will suffice concerning these grants and the agenda that comes attached. The example is the fifty thousand dollar grant madetoHowardKershnersChristianFreedomFoundationbyHowardPew,theSunOilexecutivein1950.The ChristianFoundationsconsultingeconomistwasnoneotherthanPercyGreaves.Greaveswasaresearcherfor NewJerseyrepresentativeFredHartleyofTaftHartleyfameandlaterbecameaboardmemberoftheLiberty Lobby.Kershners foundationsprimary aiminthe 1950swasto indoctrinateclergy withananticommunist and libertarian viewpoint.[34] The reader should understand that radical libertarian views are essentially nothingmorethanSocialDarwinism,theveryphilosophythatHitlersubscribedto. Another example of corporate sponsorship of religion would be the case of Harding College in Searcy, Arkansas. After returning from missionary work in China in 1936, Dr. George S. Benson assumed the presidency of Harding. Harding is operated by the Church of Christ, which opposes most modern doctrine, includingDarwinstheoryofevolution.Bensonbeganwritingandspeakingaboutfundamentalism,attracting aneverwideraudience. ItwasntuntilafterthewarwhenBensonbeganpromotingthefreeenterpriseagendaofduPontsthathe hitthebigtime.HismainthemewasthatthefreeenterprisesystemwouldbelostunlesscorporateAmerica could succeed in propagandizing citizens on the fundamentals of our way of life. Benson hit paydirt the day AlfredSloan,presidentofGeneralMotors,heardoneofhisfundamentalistantilabordiatribes.Sloandecided to bankroll Benson that day. In 1949, Sloan made a gift of $300,000 to Harding. Shortly other industrialists followedwithmoremoney.AmongthosewereCharlesHook,chairmanofAcmeSteel,andtheFalkFoundation. By 1961 Hardings endowment fund totaled $6 million, virtually all of it from corporate donors. Benson opposed all welfare legislation, was virulently antiunion and attacked anything he thought smelled of socialism, which he equated with liberalism. After the grant from Sloan, Benson established the propaganda affiliateofHardingknownastheNationalEducationProgram.[40]Itssolepurposewastoproducepropaganda filmssupportinghisfascistviews.ThelargestconsumersofthesefilmscamefromindustrialgiantssuchasGE, US Steel, Olin Mathieson Chemical Company and Lone Star Cement.[33] GE has made extensive use of these films,showingthemtotheiremployeesandpromotingthemthroughoutcorporateAmerica. No better example exists of fascists founding religious groups than the example of the American Bible Associationgivenintheopeningpartsofthischapter.Noristhistheonlyexample.Inthepreviouschapterthe group Christian America was shown to have been founded by fascists surrounding the Kirby family of Texas

and was responsible for the passage of the antiunion right to work laws in the midwest and south. Other exampleswouldbeFatherCoughlin,GeraldL.K.Smith,andGeraldSwift,theministersofhateduringthe1930s andtheprofascistgroupsthateachhadfoundedsuchastheCrusaders.TheIdentityreligionasithasevolved sincethe1930shasitsrootsgroundedinfascism. Businessmen founded other religious groups such as the Church League formed in 1937. The Church Leaguewascofoundedbythefollowingthreeindividuals:G.W.Robnett,betterknownasanultrarightist,F.L. Loesch, chairman of the Chicago Crime Commission and Henry P. Crowell, chairman of the board at Quaker Oats. It was based in Wheaton, Illinois. For two decades the operating director was G.W. Robnett, an advertising man, whos Institute for Special Research compiled files on suspected communists and sympathizers.TheothertwofoundersfearedRooseveltscourtpackingandanythingelserelatedtotheNew Deal.[35] The Church Leagues financial supporters included the Hearst Foundation, the Coors Foundation, HowardPhillipsaswellastheformerGeneralRobertWoods. Finally,thereisthegroupofreligiousleadersthathadalustforpower.Religioninthiscountryhasalways beenabigbusinessinitself.Theextentofthewealthofchurchesorreligioninthiscountryhasbeenanasty little secret that few people are aware of. Churches are the largest landowners after the government in this country. The extent of their wealth is mind boggling. In 1928, the contributions to just twentyfive denominations exceeded $400 million. In addition to this income, churches drew an additional $132 million frompermanentfundsandlegacies.Thetablebelowrevealsaportionofthatwealthandhencethepowerthat goesalongwithmoney.[39] Denomination Valuationin1926 Baptist $469,835,000 Congregational $164,212,000 $654,736,000 Methodist Presbyterian $443,572,000 Episcopal $314,596,000 Aquicklookatthetableputsthetotalvalueofthosedenominationsatroughlytwobilliondollars.Obviously thevalueofthedollarin1926boughtconsiderablymorethanitdoestoday.Toputthefiguresfromthetablein perspectiveforthereader,the1926federalbudgetwasonly$2.9billion. Withsuchwealthcomespowerandalustformorepower.Perhapsthebestexampleofalustforpower todayfromalargelyreligiousgroupistheCouncilforNationalPolicy(CNP).Anothergoodexampleoftoday wouldbethatofPatRobertsonintimatelytiedtotheCNP.Robertsonsoldpartofhisbroadcastingempire,the Family Channel, to Rupert Murdoch for $1.9 billion dollars. In his quest for power Robertson has run for PresidentintheRepublicanprimariesof1988andhasvowedtocontroltheRepublicanPresidentialnominee in2000.Hehasusedhisministryofhateandhisbroadcastingempiretoadvancehisviewsandtheviewsofthe CouncilforNationalPolicy,ashadowysecretivegroupofrightwingextremistshellbentongainingcontrolof thecountryandimposingatheocracy. Robertsonscounterpartfromthe1940scanbestbetypifiedbyCarlMcIntire.McIntire wasexpelledfromthePresbyterianChurchforhisoppositiontoliberalizingtrendsin1936. In1941,heformedtheAmericanCouncilofChurchestounitevariousfundamentalgroups toopposeanyliberalizationinbothreligionandpolitics.Hisviewswereessentiallythose that are expressed in the present day by the religious right: extreme anticommunism, socialism and liberalism, antiCatholicism, antiunion, antiSemitic, a racist and pro business.Bythemid1960s,McIntirehadbeensurpassedbyotherleadersinthereligious right.However,itwasduringthe1940sand1950sthatMcIntirehelpedtoshapeandmold thereligiousrightintotheforminwhichithasnowevolved. Carl McIntire McIntirebeganpetitioningtheFederalCommunicationsCommissionin1941todivide the radio air time allotted for Protestants between the fundamentalists and the mainline Federal Council of Churches.[37]Although,hewassoonsurpassedbythebroaderNationalAssociationofEvangelicals,McIntire playedapivotalroleinobtainingandexploitingairtime.McIntires 20th Century Reformation Hourairedfor yearsbeforebeingsurpassedbythenewfundamentalistsofthe60s.PerhapsMcIntiresgreatesthourwasin theearly1950swithhiscloseassociationbetweenMcCarthyandHooveroftheFBI.However,McIntiresmore lasting impact was that in furthering the careers of three other fundamentalists, Billy James Hargis, Dr. Fred SchwartzandMajorEdgarBundy.[38]

Althoughthischapter andtheprecedingchaptershaveshownthatthefascistinfluencewaspervasivein the fundamental religious movement, the fascist influence extended into the halls of Congress and even into elementsoftheUnitedStatesmilitary.Itshouldhowever,bereadilyapparenttothereaderthattheleadersof corporateAmericaheadedthefascistmovementwithintheUnitedStates. Thetwoprecedingchaptersrevealedthateconomicsabotageandthecreationofcivilunrestwereintegral partsoftheNazibattleplanfromtheearliestdays,neitherofwhichwouldhavebeensuccessfulwithoutthe willingparticipationofcorporateAmerica.ItwastheleadersofcorporateAmericawillinglyenteringintothe cartelagreementswithI.G.Farbenthathinderedtheearlywareffort.Likewise,itwastheleadersofcorporate Americathatfundedmanyoftheprofascistgroupsprevalentinthe1930s. ItwasthesesameAmericancorporationsthatbuiltmuchoftheThirdReichswarmachine.GMandFord built nearly 90% of all the three ton vehicles and nearly 70% of all medium and heavyduty trucks for the Reich.[97] GM also built thousands of bombers for the Luftwaffe. When American forces liberated the Ford plantsinCologneandBerlin,theyfounddestituteforeignworkersconfinedbehindbarbedwire.Recordsshow thatnearlyhalfthelaborforceofFordsCologneplantwasslavelabor.Shamelesslyafterthewar,bothGMand ForddemandedreparationsfordamagesbyAlliedbombingtotheirplants.In1967,GMreceived$33million fordamagessustainedtoitsRusselshiemplant. However, unlike the corporations, those that were forced into slave labor for Ford have yet to be compensated.Theissuewillbelefttodiequietlyasthevictimsofslavelaborpassaway,asmostarenowin their 80s. The corporations will continue to hide behind the false claim that they lacked control over their investmentsinGermany.Butsuchclaimsarefrauds.AlmostallAmericancorporationswenttogreatlengthsto remainincontroloftheirfacilitiesinGermany.BothEdselFordandRobertSorenson,ahighrankingofficialat Dearborn,servedasdirectorsofFordWerkeA.G.throughoutthewaryears.[98]FurtherEdselFordhadsent directorderstoFrancethatFordwastobuildtrucksfortheNazisoncewarbrokeout. ThesameistrueofalmostallotherAmericancorporationsthathadinvestmentsinGermany.Manytook extraordinarymeanstoremainincontrol,oftentimesthroughshellcorporationsinSwitzerland.Atthesame time these same American corporations sought out the help of the Dulles brothers in concealing their treacherous dealings from our own government. With the first step towards remaining in control or in concealingtheirdealingwiththeNazis,thesecorporationsbecametraitorstotheircountry,warcriminalsand morallyresponsiblefortheresultingHolocaustandthedeathsofthousandsofGIs. Thusfarthisbookhaspresentedanabundanceofevidenceoftreasonousbehavioronthepartofcorporate America. With the clouds of war looming on the horizon, corporate America sought to delay the day of reckoning by delaying war production in the great sitdown strike of 1941. Following the attack on Pearl Harbor, the native fascists did not fold their tent and go home. Corporate America still sought out means to delayproductionofwarmunitions.Thelargefirmsessentiallyeliminatedanysmallormidsizefirmsfromthe productionofmunitions.Likewise,theyfailedtousetheirproductionfacilitiestofulladvantageandshutdown weekends and only ran skeleton crews on the second and graveyard shifts. Many jobs went unfilled not becauseofthelackofqualifiedworkersbutbecauseofcorporatepolicy.Onesuchpolicywasbarringthehiring ofBlacksuntilRooseveltorderedfirmswithdefensecontracttohireBlacks. Atthedarkesthourduringthewar,1942,thenativefascistsunleashedafullscaleassaultonthehomeland. Oneofthecountrysmostnotoriousfamilieshaddressedfascismupwithasmileyfaceandlabeleditwithan electioneeringjingleoffreeenterprise.By1943,thefortunesofwarhadshifted,thedefeatofNaziGermany wasonlyamatteroftime.FacingexposurewiththedefeatofNaziGermany,corporateAmericaandthenative fascists once again switched tactics. A blizzard of peace proposals were put forth. Common to all such proposalswasthefacttheNaziswouldbeleftinpower,onlyHitlerwouldbedisplaced.Also,startingatthis timethenativefascistsbeganacampaigntoremovethosethatwereadamantlyopposedtofascism. By1944,thesamepapersthatwereprofascistbeforePearlHarborunleashedamediablitzforanearlyor easy peace with Germany. The papers were full of articles and editorials proposing peace terms leaving the Nazis in control. To further obscure their past support for the Nazis, native fascists increased attacks on communism.Manyofthosededicatedtothewaragainstfascismwerelabeledascommunistandremovedfrom their positions. By the end of the war, the anticommunist sentiment was once again reaching fevered proportions.PerhapstheperfectexampletoillustratethispointisthedefeatofJerryVoorhisbyRichardNixon in the 1946 election. A more detailed look at Voorhis and Nixon, including Nixon covering up for Nazi war criminalsisleftforthefollowingchapter.

However,Rooseveltremainedadamant.TherewouldbenoeasypeacewiththeNazis.Theonlyacceptable peacewasunconditionalsurrender.Likewise,FDRwasfirminhispledgetobringallofthosethatsupported theNazicausetojustice.Inthisregard,asalludedtoearlierinthischapter,RoosevelthadallowedtheBritish IntelligencetosecretlyspyonAmericans.Theinformationgainedwasnotadmissibleincourts,buttheBritish coulduseittostopshipmentsofwarmunitionsandmoneyflowingtotheNazis. TheoperationheadedbymasterBritishspyIntrepid,BillStephenson,uncovereddamningevidencefrom the very first day of operation of American fascists aiding the Nazi cause. One of the first organizations penetrated by the British spies was the America First organization. The British infiltrators learned that the AmericaFirstgrouphadreceiveddirectfundingfromUlrichvonGienanthoftheGermanEmbassyandGunther HansenStrum.ThelatterhadpaidCongressmenHamiltonFishacheck,ofwhichStephensonhadmanagedto getacopy.AtanAmericaFirstrally,Stephensonthenarrangedforagroupofantifascistinfiltratorstohand FishacardwiththewordsDerFuehrerthanksyouforyourloyaltyascamerascapturedthemoment.[96] TheBritishagentssoonhadawealthofinformationofthosesupplyingtheNazis.Besidesunearthingthe many tenancies of I.G. Farben, British agents had information implicating Chase National Bank of New York dealing with the Nazis. Stephenson had gained information that Dr. Kurt Heinrich Rieth was staying in New YorksWaldorfAstoriahoteltonegotiatethesaleofStandardOilsHungarianoilsubsidytotheNazis.Rieths father was Standards representative in Antwerp. Stephenson leaked the information to the press and soon Riethwasdeportedforlyingonhisvisa.StephensonsgroupalsolinkedWilliamRhodesDavistosupplyingthe Naziswiththeoil.ThereissomespeculationthattheBritishagentsmayhavepoisonedDavis. In 1941, Stephenson expanded his group special operations section with a particular emphasis on South America.ShortlytheyuncoveredaplottoestablishafascistregimeinUruguayledbyArnulfFuhrmann.InMay 1941,asimilarplotinBoliviawasuncovered.Bothplotswerefoiled. Inshort,StephensonsgrouphaduncoveredvolumesofinformationonthosetradingwiththeNazis.Many prominent Americans within the government and industry were implicated. None of the information gained wouldbeadmissibleincourt.However,Rooseveltplannedtoreleasethe informationfollowingthewar.The resultingoutragewouldthenbeusedtopressureCongressforafullinvestigation. Inacrueltwistoffate,RooseveltwoulddieamonthbeforeNaziGermanysurrendered.Tragically,thisplan diedwiththedeathofRoosevelt.TherewouldbenotrialsofbusinessmenfortradingwiththeNazis.OnMay8, 1945, in a bulletin broadcast to the Nation President Truman announced to the nation the unconditional surrenderofGermany. Thisisasolemnbutaglorioushour.GeneralEisenhowerinformsmethattheforcesofGermanyhave surrenderedtotheUnitedNations.TheflagsoffreedomflyoverallEurope. Forthisvictory,wejoininofferingourthankstotheProvidencewhichhasguidedandsustainedus throughthedarkdaysofadversity. Ourrejoicingissoberedandsubduedbyasupremeconsciousnessoftheterriblepricewehavepaidto rid the world of Hitler and his evil band. Let us not forget, my fellow Americans, the sorrow and the heartbreak which today abide in the homes of so many of our neighborsneighbors whose most pricelesspossessionhasbeenrenderedasasacrificetoredeemourliberty. WecanrepaythedebtwhichweowetoourGod,toourdead,andtoourchildrenonlybyworkby ceaselessdevotiontotheresponsibilitieswhichlieaheadofus. IfIcouldgiveyouasinglewatchwordforthecomingmonths,thatwordiswork,work,work. Wemustworktofinishthewar.Ourvictoryisbuthalfwon.TheWestisfree,buttheEastisstillin bondagetothetreacheroustyrannyoftheJapanese.WhenthelastJapanesedivisionhassurrendered unconditionally,thenonlywillourfightingjobbedone. Wemustworktobindupthewoundsofasufferingworldtobuildanabidingpeace,apeacerooted in justice and in law. We can build such a peace only by hard, toilsome, painstaking workby understandingandworkingwithourAlliesinpeaceaswehaveinwar. Thejobaheadisnolessimportant,nolessurgent,nolessdifficultthanthetaskwhichnowhappilyis done. Icallupon every Americantostick tohispostuntilthelast battleiswon.Untilthat day,letno man abandonhispostorslackenhisefforts.[95]

People filled Times Square, despite the pleas of Truman, with the news that the Nazi menace had been eliminated in Europe. It would be another four months before the Pacific would be liberated. Ticker tape paradesforthereturningGIswouldfillthestreets. AlthoughtheAlliedforceswerevictoriousonthebattlefieldsofEuropeandtheSouthPacific,tragicallythe waragainstfascismwaslostonthehomefront.Inthe1946election,theRepublicansgainedcontrolofboth chambersofCongress.Truetotheirprobigbusinessagendaandtheirpastsupportoffascism,over200anti unionbills wouldflood Congress.TherehabilitatedFredHartley,who hadsupportedJapan andGermany up until the moment Pearl Harbor was bombed, would coauthor the antiunion TaftHartley act. The fascist group,ChristianAmericawouldsuccessfullylobbyseveralsouthernandmidwesternstatestopassantiunion righttoworklaws. Onecouldarguethatsuchmeasuresarenotfullblownfascism,butthatisthedangerofcreepingfascism. Fascismisaninherentproblemofanyeconomybasedoncapitalism.Itsinsidiousascorporationsgrowand becomemorepowerfulmoreandmorelawsarepassedfavoringthelargecorporationsandtherightsofthe people can be damned. Fascism has never appeared first in its fullblown totalitarian state. It took Hitler six years to consolidate his power into a fully fascist state. Fascism always assumes power in gradual steps. It destroys our rights one at a time until suddenly it blossoms into fullblown fascism, a totalitarian society controlledbythecorporateelite. The following chapter will look at the betrayal of Roosevelts pledge and the myth of denazification of Germany andtheCIAsimportation ofNaziwar criminals.Thousandsof warcriminalsandprofascistswere allowedtoimmigratetotheUSdespiteTrumansban.TheCIAsrelianceonNaziwarcriminalsalongwiththe native fascists hatred of communism and anything liberal would propel the world towards the brink of a nuclear holocaust. For the fascist leaders of corporate America, the resulting Cold War would serve to cover their past dealings with the Nazis. For the Nazis collaborators, it was much more than just a chance to save their miserable hides; if they could induce a war between the two superpowers, the US and USSR, the Nazis couldthenreestablishaNazistateinGermany.

Notes
[1] [2] [3] [4] [5] [6] [7] [8] TheAgeofSurveillance,FrankDonner,VintageBooks,1981,p30. TheAgeofSurveillance,p4746. http://www.english.upenn.edu/~afilreis/88/sacvan.html TheAgeofSurveillance,p125. TheAgeofSurveillance,p118. TheAgeofSurveillance,p86. FactsandFascism,GeorgeSeldes,InFact,Inc.,1943,p158184. Thereadershouldbeawarethat The Readers Digest isstillahotbedofreactionaryrightwingers.The present editor, Eugene Lyons, has been an officer of both right wing extremist groups the Christian AntiCommunism Crusade, American Enterprise Institute and Accuracy in the Media. In addition the WallacefoundationhasmadenumerousgrantstotheAmericanEnterpriseInstitute.Thepointforthe readerhereistoshowhowtheprofascistofthe1930sarestillexertinganinfluencetoday. FactsandFascism,p158. TheAgeofSurveillance,p8687. TheAgeofSurveillance,p9899. TheAgeofSurveillance,p174. TheAgeofSurveillance,p50. TheAgeofSurveillance,p417. http://atheists.org/flashline/bibwk9.htm ThePlotters,JohnRoyCarlson,E.P.Dutton,1946. FactsandFascism,GeorgeSeldes,InFact,1943. FactsandFascism,p99. RoadstoDominion,SaraDiamond,GuilfordPress,1995,p315316. HooverandtheUnAmericans,KennethOReilly,TempleUniversityPress,1983,p141. Hoover,p70. Hoover,p5051. Hoover,p52.

[9] [10] [11] [12] [13] [14] [15] [16] [17] [18] [19] [20] [21] [22] [23]

[24] [25] [26] [27] [28] [29] [30] [31] [32] [33] [34] [35] [36] [37] [38] [39] [40] [41] [42] [43] [44] [45]

[46] [47] [48] [49] [50] [51] [52] [53] [54] [55] [56] [57] [58] [59] [60] [61] [62] [63] [64] [65] [66] [67] [68]

Hoover,p53. Hoover,p5455. http://www.igc.org/lpa/lpv26/lp05.htm Uneasy Partners: Big Business in American Politics 19451990, Kim McQuid, John Hopkins Press, 1994,p3637. UneasyPartners,p2324. ThePoliticsofUnreason,SeymourLipset&EarlRaab,Harper&Row,1970,p435. ThePoliticsofUnreason,p158159. RoadstoDominion,p238. ThePoliticsofUnreason,p4761. MenoftheFarRight,RichardDudman,Pyramid,1962,p132. RoadstoDominion,p9899. PowerontheRight,WilliamTurner,Ramparts,1971,p134. TheRadicalRight,BenjaminEpstein&ArnoldFoster,Vintage,1967,p207208. RoadstoDominion,p9597. SpiritualWarfare,SaraDiamond,SouthEndPress,1989,p4647. http://www.infidels.org/library/historicadreiser/church_and_wealth_in_america.html TheWarfareState,FredCook,Collier,1964,p297298. ItsaSecret,HenryHoke,PamphletPress,1946,p7073. http://www.ssa.gov/history/fdrstmts.html#billofrights AmericanSwastika,CharlesHigham,Doubleday,1985,p135. AmericanSwastika,p136138. Another association and feigned innocence between fascism and Reagan was his refusal to grant an extradition request from Jim Garrison for Edgar Eugene Bradley, a right wing preacher from North Hollywood, California and parttime assistant to Carl McIntire, the fundamentalist minister who had foundedtheAmericanCounselofChristianChurches.ThisistheonlytimeinthehistoryofCalifornia that a governor refused an extradition request. In one theory of the assassination of JFK, McIntires groupplayedapivotalrole.WhatisknownwasBradleyidentifiedhimselfasaSecretServiceagentto DeputySheriffRogerCraiginDallasthedayoftheassassinationshortlyafterthefatalbulletshadbeen fired. Likewise it should be noted that Bradley filed and won a libel suit over this incident. http://www.ratical.org/ratville/JFK/WTKaP.html AmericanSwastika,p147. AmericanSwastika,p191193. AmericanSwastika,p194195. http://washingtonpost.com/wpdyn/politics/news/postseries/texasrecord/A85052000May4.html TreasonsPeace,HowardAmruster,Crossroads,1947,p494495. http://www.time.com/time/magazine/archive/1994/940502/940502.cover.obituary.html http://www.igc.org/solidarity/atc/90Greenfield.html TheWarLordsOfWashington,BruceCatton,Harcourt,BraceandCo,1948,p244. TheWarLords,p102. http://newsweek.washingtonpost.com/nwsrv/issue/24_98b/printed/int/eur/ovbz0324_2.htm Reutersnewswire,USFirmsConnectiontoNazisDetailed,1/14/99. TradingwiththeEnemy,CharlesHigham,Barnes&Noble,1995,p119. TradingwiththeEnemy,p2031. TradingwiththeEnemy,p27. TradingwiththeEnemy,p4041. TradingwiththeEnemy,p3839. TradingwiththeEnemy,p84. TradingwiththeEnemy,p93115. TradingwiththeEnemy,p130153. TheArroganceofPower,AnthonySummers,Viking,2000,p63. TheArroganceofPower,p401. OneThousandAmericans,GeorgeSeldes,Boni&Gaer,1947,p252. OneThousand,p252.

[69] [70] [71] [72] [73] [74] [75] [76] [77] [78] [79] [80] [81] [82] [83] [84] [85] [86] [87] [88] [89] [90] [91] [92] [93] [94] [95] [96] [97] [98] [99] [100] [101] [102] [103]

OneThousand,p253. OneThousand,p292. TheSecretWarAgainsttheJews,JohnLoftus,MarkAarons,St.Martins,1994,p74. TheJewishThreat,JosephBendersky,PerseusBooks,2000,p232,238,274279. FactsandFascism,p262. BusinessasUsual,I.F.Stone,ModernAgeBooks,1941,p63. BusinessasUsual,p64. BusinessasUsual,p73. BusinessasUsual,p3034. BusinessasUsual,p84. BusinessasUsual,p89. BusinessasUsual,p98102. BusinessasUsual,p20. BusinessasUsual,p21. IFindTreason,RichardRollins,WilliamMorrow,1941,p81. http://newdeal.feri.org/students/end.htm TheOldBoys,BurtonHersh,CharlesScribner,1992,p35. TradingwiththeEnemy,p222. WarLords,p264. TheWarfareState,FredCook,Collier,1962,p7677. http://www.imf.org/external/pubs/ft/wp/2000/wp00149.pdf http://www.au.org/press/pr71001.htm http://uspolitics.about.com/library/weekly/aa071001a.htm New Bush Office Seeks Closer Ties to Church Groups,FrankBruniandLaurieGoodstein, New York Times, January29,2001 TheStrangeTacticsofExtremism,Harry&BonardoOverstreet.,W.W.Norton,1964,p196201. TheNazisGoUnderground,CurtRiess,Doubleday,1944,p126127. http://www.ibiblio.org/pha/policy/1945/450508c.html Room3603,H.MontgomeryHyde,Ballantine,1962,p8081. http://www.ranknfileue.org/uen_nastybiz.html http://www.religioustolerance.org/fin_nazi.htm FactsandFascism,p262. RooseveltsSecretWar,JosephPersico,RandomHouse,2001,p2731. RooseveltsSecretWar,p103107. RooseveltsSecretWar,p167. TheLastHero,AnthonyCaveBrown,VintageBooks,1982,p207211.

CHAPTER 6: A PLEDGE BETRAYED

Part 1: What went wrong at Aachen?

AWNONOCTOBER21,1944wascoolandcrispasthelasttracesofsummergavewaytoautumn.The forests around Aachen, Germany were a profusion of autumn colors. At noon, Colonel Gerhard Wilck surrendered what remained of the town to the American First Army. It was the first major city of Germanytobecaptured.Ofits160,000inhabitants,onlyfivethousandremained.Therestwereeitherdeador hadbeenforcedbytheNazistoevacuatethecity. TheAmericanforceshopedtouseAachenasamodelforits4Dsprogram,demilitarization,denazification, decartelizationanddemocratization.OnNovember10,TheStarsandStripesreflectedtheupbeatoutlookofUS forcesinthefollowingeditorial. The Americans have come to Germany not to pat childslayers on the head or to feed SS scoundrels withSpam.TheAmericanshavecometothislandofgangstersinordertobringvillainstojustice. ItisnotonlyAmericandivisionsthathaveenteredGermany.JusticehasenteredGermanyandnota singleGermanwillventuretocrywelcome.Forjusticecarriesasword.[8] Thetownsrecordshadbeendestroyed.Nevertheless,atemporaryGermanadministration had to be organized. Lacking any records, it seemed only natural for FIG2, the Military Government detachment, to ask the advice of an upstanding citizen of the community, hencetheysoughtouttheadviceofthelocalCatholicbishop,JohannvanderVelte,whohad remained behind. The bishop recommended a devout Catholic and upstanding citizen, FranzOppenhoff. Accordingtothebishop,Oppenhoffhad neverjoinedthe NaziParty. He further informed the Military Government detachment that party membership was an irrelevantencumbrance. Franz Oppenhoff The Americans found Oppenhoff to be clean, intelligent, well dressed and apparently respectable.OppenhoffacceptedtheAmericanoffertomanagethecity.Atfirst,theAmericansdidnotquestion Oppenhoffs authoritarian and antidemocratic views. Nor did they question the fact that he and his fellow businessmenhadprosperedduringtheNazisreign.Atthelocalcoalmines,HerrAschkewasplacedincharge. Again,Aschkeseemedcompetent.NoAmericansintheoccupationforcesbothertoquestionAschkeabouthis use of slave labor under the Nazis or had even bothered to ask if he had been a Nazi. A few eyebrows were raisedwhenAschkecutwagesinanefforttoproducemorecoal.However,winterwascomingandthecoalwas needed, so the American forces allowed Aschke to continue as manager. However, Aschke had been a rabid Nazi. OppenhoffandhisleadingassistantshadbeenformerofficialsattheVeltrupArmamentsWorksandwere suspected of making substantial contributions to the Nazis by local inhabitants. Oppenhoff appointed 22 known Nazis to 72 essential positions in the city. In total, the mayor had assembled 750 bureaucrats to administer the city, or one for every fifteen inhabitants. The mayors bureaucrats were exempt from compulsoryworkofclearingdebrisandharvestinglocalcrops. It wasnt until two months after the capture of Aachen before Saul Padover, a member of the SHAEF PsychologicalWarfareDivisionarrivedintown.Hehadheardthatthetradeunionistswereextremelycritical oftheappointmentsofOppenhoffandAschke. Padovers report caused reverberations throughout the Allied occupation forces. He reported that the MilitaryGovernmentofficerswerepoliticallyignorantandmorallyindifferentandhadmadeathroughpolitical messbytheappointmentsofOppenhoffandAschke,whowereascompactacliqueofultrareactionariesand fascistsascouldbefoundanywhereinGermany.[1] Whathadgoneterriblywrong?WhatwasthewaroveriftheoccupationforcesplacedtheNazisrightback intopositionsofpower?Therewerenoeasyanswers.TheMilitaryGovernmenthadbeenbriefedtoappointa mayor and then leave everything to the Germans. The officers of the Military Government had relied on technical competency, respectability and the ability to speak English in choosing their appointments. In addition,theyhadbroughtwiththemtheirownprejudices.Notchoosingsocialists,communists,unionleaders ormenthatwerelesswelldressedwereonlysomeoftheprejudicestheAmericanforcesbroughtwiththem. Relying on the Catholic bishop was another. All would be a contributing factor in the failure of the 4Ds program.OnNovember11,1944theJointChiefsofStaffsinWashingtonissuedthefollowingdirective:

The entire Nazi leadership will be removed from posts of authority and no member of the German General Staff or Nazi hierarchy should occupy any important governmental or civil position. You will notappointtheemploymentofactiveNazisorardentsympathizers,andnoexceptionwillbemadeto thispolicyongroundsofadministrativeconvenienceorexpediency.Youwillremoveandexcludefrom office any persons who act, or whom you deem likely to act contrary to Allied interests and principles.[2] The order was followed a month later by another directive which forbade the use of dissolved Nazi organizationsforreliefandalittlelaterbytheinclusionofadditionalcategoriesofofficialswhoweresubjectto automatic arrest. Every school, university, courthouse and newspaper was to be closed. The British were horrifiedattheAmericanpolicies.ConONeiloftheUnitedNationsWarcrimesCommissioncommented: Is it really necessary that we seize monuments? It is a disastrous policy to lead to total chaos. It meanswedowhatwecan,butacceptnoresponsibilityfortheresults,itismerelyaclumsyattemptto escapecriticismalthoughwecannotescapecontrol.[3] However, the sharp differences were to get worse. In February, a directive was issued allowing Nazis to be retained if military necessity so required. The justification for the new directive was that the Allied army dependeduponcivilianwaterandelectricalsupplies.However,theastutereadershouldnotethatitwasnot untilamonthlaterbeforetheAlliesbreachedtheRhine.OnlyasmallsliverofNaziGermanylaidtotheeastof theRhine.ColonelBernardBernsteinimmediatelyobjected,claimingthattoomanydetachmentsweretaking advantageoftheexceptionclause.HeblamedtheBritishforweakeningthedirectives. InMarch,theTwelfthArmyunderBernsteinsinfluenceissueditsowndirectiveoverridingtheexceptions. Additionally the new directive banned the employment of Nazi sympathizers. A sympathizer was defined as anywhohadprofitedundertheNazis.OnMarch23,theTwelfthArmysdirectivewasmodifiedbyadirective from the White House that allowed the employment of nominal Nazis. Once again, Bernstein blamed the Britishforsofteningthedenazificationprogram. When Aachen was handed over to the British, chief of SHAEFs G5, Brigadier General Frank McSherry, suggested to the British commanding officer that he should remove Aschke from managing the mines. The minershadprovenAschketobeafanaticalNazisupporter.TheBritishrefused,thecoalwasmoreimportant.It wasnt until January 1946 that the British removed Oppenhoff for being a member of the VDA (League of Germans in Foreign Countries). The VDA was an organization that funded fifth column groups such as the AmericanBund.[5] ThemistakesmadeatAachenwouldberepeatedthroughoutGermanyastheAlliedforcesadvanced.There were no less than four directives on the employment of Nazis and over forty subsidiary regulations. Such a bureaucraticmazewasaperfectprescriptionforchaosandthecompletefailureofthedenazificationprogram. ThefailureleftbehindinAachenstandsinstarkcontrasttotheliberationofNordhausenandthesuccessof the American T Force. The T Force was known by the distinctive red T on their helmets and was part of OperationPaperclip.Theyhadpriorityclassificationandtheauthoritytocommandeeranyneededequipment, evenincludingentiremilitaryunitsifneeded. Nordhausen was a small town in the Harz Mountains and the site of the V2 program after Peenemunde cameunderAlliedbombingin1943.Toinsureagainstfuturebombing,theNazishadimportedthousandsof concentration camp inmates to dig out a vast underground network of tunnels. On April 11 Pattons Third ArmyliberatedNordhausen.ThereweretwentythreethousandsurvivorsintheassociatedDoraconcentration camp, three thousand bodies rotting and unburied. Over thirty thousand others had already perished of disease,brutalityorstarvation. Within hours of liberation, the T Force accompanying the Third Army had commandeered the healthier inmates to clear a mile of the main tunnel that had been damaged in recent bombings. Meanwhile, a fleet of trucks had been requisitioned, some from as far away as Cherbourg, France. A US combat engineer group rapidlyrebuiltadamagedbridge.Withineightdays,fourhundredtonsofequipmentwasmovedtoAntwerp forshipmenttoNewOrleans. Sadly, there was no war crimes unit attached to the Third Army, although, it was well known before liberationthatNordhausendependeduponslavelaborfromthenearbyDoraconcentrationcamp.Noonegave adamnabouttheSSguardsandofficersfromDora.Nonewerearrestedimmediately.Theywerelefttogotheir ownway.Itwasonlyafterseveralyearsthatthirtynineofthemweretrackeddownandbroughttotrial.[4] ThelackofarrestsatDoraoftheSSguardsdidnotreflectpublicopinion.Theresponsesina1943British pollaregivenbelow.

AttheendofthewarwhatdoyouthinkshouldbedonewiththeAxisleaders?[9] Letthemgo,ignorethem 1% Theywontbefound 1% Leavethemtotheirownpeoples 1% Theyshouldbeputontrial 18% 11% Exile,them,imprisonthem,puttheminsolitaryconfinement HandthemovertotheJews,thePolesandotherswhohavesuffered 4% Shootthem 40% Nothingishorribleenough,torturethem 15% Miscellaneous,noopinion 9% AmericanopinionwasmuchthesameastheBritish.Atonepointinthenegotiationsoverwarcrimesbetween the Big Three, Churchill supported summary executions. Stalin objected and insisted upon trials. Later when PattonsforcesliberatedDachau,someelementsofhisforcebecamesooutragedoverwhattheyhadseen,they startedtoexecuteSSguardsbeforebeingstoppedbythecommandingofficer.Pattondidtherightthingand stoodbyhismen.PattonwasnotconcernedwithafewdeadNaziSSguardsexecutedbyhistroops.Hetoreup theinvestigation,endingitforalltime. The tragic mistakes made at Aachen and Dora were repeated across Germany as the Allied armies advanced.Althoughthereisaplethoraofreasonsforthefailureofthe4Dsprogram,therootcausewassimple sabotagefromwithintheprogram.TheliberationofGermanywouldexposemanypowerfulindustrialists,both inAmericaandinEngland,ascollaboratorswiththeNazi.Theyhadtobeprotected. In the last year of the war, the United States and London put together an ultrasecret organization that planted the first seed of the Cold War. The organization was so secret that in 1992 the National Security Administration extended the classification of all its missions and operation until 2012. The classification is higher than the top secret bracket, thus only a handful of people are allowed access to the files. The British governmentisequallysecretive.ColonelGeorgeBucher,thedirectorofUSSignalIntelligence,conceivedthis groupinthesummerof1944.TheTICOMgroupwastocaptureallcodemakingequipmentandcodebreaking equipmenttheycouldfind.Tothisend,itseemsfromwhatisknownthattheydidoperatebehindenemylines attimes,butforthemostpartfollowedtheadvancingarmyliketheTForce. NotonlyweretheylookingforthenewGermanFISHcodemakingequipment,theywerealsolookingfor anyRussiancodeequipmenttheGermansmayhavedeveloped.LiketheTForce,TICOMquicklysnatchedup anypeople,papersorequipmentandreturnedittosafety.Fromwhatinformationthereis,TICOMwasequally successfulastheTForce.TheydidcaptureaFISHcodingmachineandamachinecapableofdecipheringthe highest level Russian code. Due to all documents from TICOM being still classified, it is unknown if the Nazi code breakers were given asylum in England or the United States or if any war criminals were given new identities.ItisknownthatDr.ErichHuettenhainwasbroughttotheUnitedStates. OnebenefitfromtheTICOMoperationswastheUnitedStateswasabletoreadthemessagesoftheSoviet police, military, KGB and diplomats. Thus, we knew without a doubt the condition of the Soviet Union. However,thatperiodwasrelativelybriefandlastedonlyuntil1948whentheRussiansdiscoveredtheircode hadbeencompromised.[112] Thereis,however,averysinistersidetothestoryoftheTForcesandTICOM.Boththosegroupscounted oncapturingtheequipmentintact.InmanycasestheAmericanarmyracedaheadtocapturethesitebeforethe Russianforcesgotthere.Itleavesopenthequestionofwhywerentthesesitesbombed.Ofcoursesomeofthe equipment was captured fortuitously as it was being moved. Other equipment was captured in place and unharmedbythebombingcampaign.Weretheselatersitesdeliberatelyomittedfromthebombingcampaign sotheequipmentcouldbecapturedintactevenifitmeantagreaterlossofGIs? Whiletheworldstoodaghastinthe springof1941atthenewterrorandhorrorunleashedbytheNazis againstYugoslavia,HitlerwasenragedthatthepeopleofYugoslaviahadoverthrownhisquislinggovernment andhadissuedMilitaryDirective25foranimmediateinvasion.Belgradehadbeenreducedtorubblebythe Nazi dive bombers and anything left moving was subject to strafing. The Yugoslavian government in exile immediatelypetitionedtheUnitedNationswarcrimescommissiontoincludethebombingofciviliancenters as a war crime, to no avail. The war crimes commission was mute on the matter, for the Allies would use similartacticsinevenmoredestructiveraidsaimedatciviliancenters. Bytheendofthewar,mostofEuropehadbeenreducedtorubble.Thiswholesaledestructioncamenotat the hands of the Nazis, but at the hands of the Allied air command. Yes, the Nazi war machine had been

destr royedonthe ebattlefield,b butatwhatc cost?Estima atesinGerma anyrangeda ashighas80% %ofallhous singunits hadb beendestroy yed.Dresden nwassimply yerasedinamassivefirestormbythe ebombingca ampaign.Est timatesof civili iandeathsin nDresdenra angeashigh as70,000.H However,the eeffectofth heaircampaignagainsti industrial cente ersandmunitionsmaker rspresentsa adifferentvie ew. T TheNaziwar rmachinew wasproducin ngmoreplan nes,tanks,tru ucks,etc.at theendoft thewarthan nin1941. Over rall, producti ion of munit tions at the end e of the war w was estim mated to be at roughly 80% 8 of capa acity. The Ford d plant at Co ologne stood untouched at the outsk kirts of a city y that lay in ruins. It wa as running at a 70% of capa acity when the t city fell to Allied ha ands. Ironica ally the redu uced capacit ty of the Ford plant wa as due to secondaryeffects softhebom mbingcampaign,ashorta ageofmaterialscausedb bythebomb bingoftransp portation ers,andnot fromanybo ombdamage totheplant t.Thereader rshouldrem memberthatt theRAFhad dtargeted cente Cologneinamas ssivebombin ngraidinvolv vingathousa andbombers sin1943and dhadbombe edthecityre epeatedly rthat. after T Throughout Europe and in Germany y particularly y, the scene was much the t same. La arge industri ial plants stood dunscathed amidafield dofrubble,especiallytho oseplantstha athadconne ectionstoAm mericanfirm mslikethe Ford dandI.G.Far rbenplantsa atCologne.In nfacttheI.G.FarbenbuildinginBerlinwasuntou uchedandusedbythe Allies as a comm mand center. In order to understand such a discrepancy, a brief b look at how the Allies chose T reader needs n to be reminded th hat during WWII W there were w no lase erguided bombing targets is needed. The ld be dropped through exhaust ven nts. Precision n bombing was w still in its infancy. The RAF bombs that coul ndoned any attempt a at precision p bom mbing when n they switch hed to night time bombi ing because of heavy aban loose esintheday.Weatherals sopresented daproblem. T definitio The on of precisio on bombing used by the e US air forc ce during WW WII reveals how crude precision bombingwasthe en.TheUSad doptedthest tandardofse eventypercentofthebom mbsfallingw withinathous sandfoot e as precisio on bombing. Even with such s a crude e standard, the t US was only o to achie eve it during g a single circle week kthroughout tthewar.Of ftentimeswe eathercondit tionsorther requirement ttoflyinform mationpreve entedthe bombsfromsom meaircraftev verreaching theintended dtarget.The edefinitiono ofprecisionb bombinguse edduring IIandthewa ayitwasimp plementedin nmassivebo ombingraids sismoreakintowhatis termedsatu urationor WWI carpetbombingt today. T reader should The s note that during WWII there was no form mal US air force. f The air force as a separate bran nchoftheUS Smilitarycom mmandwas notestablish heduntilafterthewar.T Theauthoris susingthetermhere tode escribeAmer ricanairpow werunderth heArmysco ommand.At thecabinetl level,theair rforcewasu underthe contr rolofSecret taryofWarS Stimpson.Th heSkulland Bonesmemb berwasone ofleadersfo oraneasype eacewith Germ manyatthee endofthewa ar.Roosevelt tallowedStim mpsontocho oosehisown nstaff. H chose Joh He hn J. McCloy to act as ass sistant Secre etary in char rge of intellig gence, civilia an affair rsandgener raltroublesh hooter.Stimp psonplacedR RobertLovet ttasassistan ntsecretary of war forair.Both hMcCloyand dLovetthad backgroundsfromWall Street.McCloyhadbeen na merWallStre eetlawyeran ndLovettap partnerandc closefriendo ofPrescottB BushatBrow wn form Brothers and Ha arriman. It was w Prescott that selecte ed Lovett for r membershi ip in the Sku ull Bones.Lovet ttwasawide erangingad dvocateofter rrorbombingofpopulationcentersa all andB ofhislife,includingduringth heVietnamW War.McCloy yhadbeenin ntegralinsel lectingtarge ets nondestructi ion,whichm meantotherta argetsweres selectedford destruction.[ [113] forn A Anotherindiv vidualfitting gthepattern nofclosecon ntactswithW WallStreetin nvolvedinth he John J. J McCloy airfo orcecomman ndandtarget tselectionw wasTrubeeD Davison.Davisonhadbeen ntheassistan nt secre etaryofwarforairbetwe eenthewars s,however,D Davisonsfirs stassociation nwiththeair rforcewasd duringhis yearsatYaledur ringWWI.At tYale,Trube eeformedthe especialYal leUnitofthe eNavalReser rveFlyingCo orps.The y associated with the Sk kull and Bon nes. The Yal le unit was often referr red to snidely as the unit was closely lionaire squa adron. Whi ile training in i Florida, the t pilots of ftentimes wh here wheele ed to their planes p in mill whee elchairspush hedbyBlack kporters.Tw woothermem mbersoftheYaleunitare eworthnotin ng:RonertLo ovettand Artem musGates. A Atthetime t theUnitedSt tateswasno otyetatwar r,sotheunit tservedBrit tain.The Yale unitwas underthe u comm mand of Rob bert Lovett. Trubees father, Henry Davison, D a se enior partne er at J.P. Mor rgan and Co. ., lavishly finan ncedtheunit t.Theunitdistinguishedi itselfduringWWI. D During WWII Trubee served directly y under Lov vett. From Ju une 1941 un ntil December 1941 Tru ubee was depu utychiefofstaffintheairforcecomb batcommand d,holdingth herankofcolonel.From December1941until hisd dischargein1 1946,Trubee ewasassista antchiefofst taffatA1.He ewasdischa argedasabri igadiergener ral.

ItisfittingheretotakeacloselookatthemembersoftheYaleUnitandtheconductoftheairwarduring WWII. Robert Lovett, as already alluded to, was assistant secretary of war for air. Directly under him was Trubee Davison. Additionally Artemus Gates served as Assistant Secretary of the Navy for air during WWII, thusduringWIItheuseofairpowerwasdirectedlargelybymembersoftheYaleUnit. ThemoreinterestingaspectofthisleagueistheirclosefamilytiestoWallStreetandtherichelite.Robert Lovett married Adele Quarterly Brown. Miss Brown was the daughter of James Brown, a partner of Brown BrothersandHarrimanandgrandsonofthefounder.ArtemusGatesmarriedTrubeessister. Asalreadymentioned,TrubeesfatherwasapartnerwiththeMorgans,however,thisisonlythebeginning of the Davison familys connections. Trubees wife was Dorothy Peabody, the sister to Malcolm Endicott Peabody, a former Governor of Massachusetts and the grandchild of Marianne Cabot Lee. Additionally the DavisonfamilyisconnectedtotheRockefellersasinJohnDavisonRockefeller. Davison had one other connection worthy of note: Benjamin Strong may have been Trubees brotherin law. The author has found two conflicting reports, in one case there was a marriage of Henry Davisons daughter with Strong. The other report does not emphatically indicate a marriage, but does note that after StrongsfirstwifediedtheDavisonfamilyraisedthechildren.Nevertheless,therewasastrongbondbetween HenryDavisonandBenjaminStrong.ItwasDavison,whomadehimasecretaryofBankersTrustandbrought him in as J.P. Morgans personal auditor. Strong however, was better known as the first director of the New YorkFederalReserveBank. One other name of note served in the air force command, James Stillman Rockefeller. Rockefeller served withtheAirborneCommandandAirborneCenterasassistantchiefofstaff.HewasaLieutenantColonelinthe General Staff Corps at the time of his discharge in 1945. The reader should note that these connections are carried through time. A good example of this is the connection of Prescott Bush with this circle of elites. PrescottBush,asamemberoftheSkullandBones,stoletheskullofGeronimo.In1986,theApachesconducted negotiations with George Bush concerning the return of the skull. Representing Bush was Endicott Peabody Davison,Trubeesson. Thus at the very top level of military planning, there were several people with detailed knowledge of American investments in Germany. In fact, Lovett was in charge of the entire air campaign and McCloy was deeply involved in removing targets from the selection list. Both individuals certainly were well aware of AmericaninvestmentsinNaziGermanyandmayhaveevenhadfamilymemberswithsuchinvestments.Under their direct command there was another layer of individuals with family ties to the Wall Street firms that investedheavilyinNaziGermany. Withoutadditionalrecordswhicharestillsealedinsecrecybythegovernment,itisimpossibletoassessif thisgroupofWallStreetelitesteeredthebombingcampaignawayfromAmericanownedtargetsinGermany. Itisinterestingtonote,however,thattheonlymassivebombingraiddirectedataspecificindustrialtargetwas the bombing of the S&K bearing plant deep inside Germany. Of course, S&K was Swedish owned. The raid incurred a terrible loss of both planes and life. Many of the planes were lost before even reaching the destinationandmorewerelostonthereturnflightafterreceivingheavydamageoverthetarget. Nevertheless,choiceindustrialtargetswerepresentatmuchshorterrangessuchastheRuhrsteeldistrict. DamagetoanyofthecoalminesorsteelplantsinthedistrictwouldhavelimitedtheNazisabilitytoproduce tanksandotherheavyarmaments.Moreover,raidsontheRuhrdistrictwouldhavebeenshortenoughthatthe bomberswouldhavehadfullfighterprotectionatallpointsoftheraid.However,manyoftheplantsandmines intheRuhrdistrictwereconnectedwithAmericaninvestments.ItshouldbenotedthattheS&Kbombingraid was based solely on the basis that the S&K facility was the only major producer of bearings within Nazi Germany. In July 1941, the Department of War developed a plan for target selection that wouldbe in line with the ABCagreementwithBritainandwiththegeneralbattleplanforpotentialwarknownasRainbow5.TheABC agreementcalledforasustainedairwaragainstGermany.TheplandevelopedwasAirWarPlansDivision Plan 1 or simply AWPD1. The primary military objective of AWPD1 was to defeat Germany by air power alone. If the plan failed in its primary objective, then the plan called for preparing the way for a European invasion. AWPD1 identified three vital targets within the Germany economy: electric power, transportation andoil.Itincludedafourthintermediatetargetarea,thedestructionoftheLuftwaffe.AWPD1thenincluded 154targetstobedestroyedinthefirstsixmonths.[114] AWPD1wasneverimplemented;itwasleakedtothepressinthefallof1941alongwiththeRainbow5 battle plan by Burton Wheeler, a proNazi Senator. Both Rainbow 5 and AWPD1 appeared in The Chicago

Tribune and Washington TimesHerald. The Nazis quickly realized the importance of both documents. On December 12, 1941, Hitler issued Directive 39, which called for massing air defenses around key industrial centers.FourdayslaterHitlerrescindedthedirective. Early in 1942, AWPD42 replaced AWPD1. Central to the AWPD42 was round the clock bombing of Germany.TheRAFwouldcontinue withnighttime area bombingwhiletheUSairforcewoulduseprecision daytime bombing as defined in this document. AWPD42 focused on tactical targets or targets producing equipmentthatthemilitarycannotdowithoutratherthanstrategictargetswhichanationrequirestoproduce warmunitions.Whileverymuchsimilartotheprecedingplan,AWPD42placedthedisruptionoftheelectrical grid as thirteenth on the list. Such a reduction conforms to the emphasis on tactical targets versus strategic targets.WipingouttheGermanelectricgridwouldhaveseverelylimitedGermanysabilitytomanufacturewar munitions.Thisreductioninpriorityofelectricgeneratingfacilitieswasperhapsthelargestfailureoftheair campaign.TheanalystsresponsibleforthereductionhadconcludedincorrectlythattheGermanelectricalgrid hadtheabilitytorapidlyreroutepowerfromoneregiontoanother,wheninfactGermanylackedthisability. Anystrikeagainstpowerplantssupplyingindustrialcenterswouldhaveleftthoseindustrialcentersidlefor months. AWPD42 was hammered out by the Committee of Operations Analysts (COA). COA was composed of industrialists, lawyers and various economists. The reader should note here the inclusion of industrialists. Almost all of Americas major corporations had investments in Nazi Germany. In addition, most of these corporationswenttoextraordinarymeanstoremainincontactandtocontinuedoingbusinesswiththeNazis after war was declared. The committee used several criteria in determining the suitability of the target. EssentiallythecommitteelookedforbottlenecksandweaknessesintheNazieconomythatcouldbeexploited. ThemakeupoftheCOAisinterestinginlightofthetragicmistakeofthedowngradingofelectricaltargets. TheGermanelectricalindustrywascloselyaffiliatedwithtwoAmericanfirmsthroughcartelagreements,GE and ITT. Plants owned by GE through its AEG subsidiary and ITT were only hit incidentally in air raids. The electrical plants that were bombed as targets were Brown Boveri and Siemenssatadt, which were not connected with either GE or ITT, although plants owned by GE, such as the plant at Koppelsdorf which manufacturedradar,wouldhavebeenaprimetarget.[115] At the end of the war, a team known as FIAT was sent to examine the electrical industry plants to determine the extent of bombing damage. The team consisted of Alexander Sanders of ITT, Whitworth Ferguson of Ferguson Electric and Erich Borgman of Westinghouse. While the stated objective of the FIAT groupwastosurveythebombdamage,theiractionsrevealedthattherealobjectwastogetGermanelectrical equipmentbackintoproductionassoonaspossible. Along with the change to AWPD42 came a new bombing offensive launched in 1942. In early 1943, the Point Blank Directive was approved. It called for around the clock bombing of Germany. The RAF was to continuetobombcitiesatnightwhiletheUSAFwastousedaytimeprecisionbombingontargets.ThePoint Blank included a permissive clause that allowed Bomber Command to continue with operations aimed at civilianmoraleandthegeneraldislocationoftheGermaneconomy. Shortly after the implementation of AWPD42, the RAF launched a thousand bomber attack against Cologne. The meat grinder was now fully operational and civilian centers would be reduced to rubble. The 1943 Point Blank Directive would ease selecting civilian centers as targets. When the RAF bombed the Ford plant at Poissy in March 1942, photographs of the burning plant were published in American newspapers, however,themediachainsowningthemajorityofAmericannewspapers,eagertoprotectoneoftheirlargest advertisers, failed to mention that the plant was owned by Ford. The truth could be withheld from the Americanpublictoprotectatraitor.TheVichygovernmentpaidFord38millionfrancsincompensation.Once againthenewspaperswerediscreteandfailedtoreportthepayment.[116] OnememberoftheCOAteamwasGuidoR.Perera.PererawasapartnerinHutchins&Wheelerlawfirmin Bostonbeforethewar.HealsoservedastrusteeoftheMassachusettsInvestorsTrust.Duringthewar,Perera firstworkedonthelegislativeandadministrativereorganizationoftheArmyAirCorps,afterwhichheserved as deputy chairman of the Advisory Committee on Bombardment and as vice chairman of the Committee of Operations Analysts. In these positions he oversaw the development of plans and target systems for the bombingofstrategicindustrialtargetsinGermanyandJapan.[121] OfinteresthereisPererasconnectionwithMassachusettsInvestorsTrust.Thetrustwasthefirstmutual fund in America. It was founded by Paul Mellon in the 1920s. One of the largest holdings of the trust was BostonInsuranceCompany.ThepresentownersoftheBankofBoston,FleetFinancial,aredesperatelytrying

to distance and deny any connections between Boston Insurance and the Bank of Boston, as information linkingthebanktotheNazishassurfaced.ItappearsthatBostonInsurancewasaproductofthebankorthe directors.OneofthedirectorsofBostonInsuranceCo.wasErwinPallavicini.HeisdescribedintheOSSfileas anUSblacklistedNazicollaboratorwhoalsoservedontheboardofaGermaninsurancefirminArgentina.The OSS documents list another director of Boston Insurance, Benjamin Nazar Anchorena as a Nazi collaborator. NewlydeclassifiedfilesoutlinetheconvolutedfinancialrelationshipsthatlinkedFirstNationalBankofBoston interests with Hitlers financiers, including Spanish and Mexican companies in business with Germanys Munich Re. The entire network involved around 230 German firms. Even as late as 1997, the identity of the ownersofBostonInsuranceremainsunknown. QuotingfromanOSSreportcompiledin1943:TheBostonInsuranceCompanyisstillwritingallkindsof insurance of blacklisted names, and they are placing this business in the London market. That meant the Boston, as the document referred to the insurance firm, was spreading cash and information within and between both the Allies and the Axis. The Boston is known to have American board members and stockholders,havingbeenformedbyinterestsaffiliatedwiththeFirstNationalBankofBoston.[122] The Bank of Boston was controlled by the Mellon and Rockefeller families. Both families were deeply involved in arming and supplying Hitler. The Mellon family, through Alcoa, had concluded several cartel agreementswithI.G.Farben.Withthenecessityofvastamountsofelectricityfortheproductionofaluminum, could Perera been one of those responsible for downgrading the importance of eliminating the electrical companies in Germany? He certainly must have been aware of the Mellonaluminum link and was closely associatedwithMellonsthroughMassachusettsInvestorsTrust.Pereraalsohadmorethantheusualamount ofknowledgeofelectricutilities.In1947afterreturningfromthewarPererawaselectedpresidentandlater chairmanofEasternUtilitiesAssociates.WithoutthecompleterecordsoftheCOA,nosolidconclusionscanbe reached. However, Perera is not the only one from the COA with connections to the Wall Street money that built Hitlerswarmachine.ArthurRoseborough,aformerSullivan&CromwellemployeefromthefirmsParisoffice, wasassignedtotheAirForceIntelligenceinLondonduring1943.TheAirForceIntelligenceunitwascreated specificallytoevaluatebombingdamageandtorecommendtargets.[123] Perera and Roseborough fall into the group of people employed by COA, so we can conclude they were fairlytypicalofthegroup.WithoutadditionalfilesofCOA,itisimpossibletoconcludetheguiltorinnocenceof either Perera, Roseborough or of the entire staff of COA in protecting the investments of American industrialistsandelites.However,theundisputedfactremains80%ofthehomesinGermanyweredestroyed whileindustrialproductionwasonlyreducedby20%.Infactmuchofthereducedproductioncapacitycame fromthesecondaryeffectsofthebombingcampaign,suchaslackofgasolineandashortageofpartsduetothe disruptionofthetransportationsystem. After the war, the bombing survey concluded that overall the bombing was ineffectual in destroying German munitions production. The massive bombing of the S&K ball bearing plant at best only delayed production temporarily, at a horrible loss of Allied airmen and aircraft. A greater success of the bombing campaignwasinthebombingoftheRomanianoilfields.TheshortageofgasolineintheThirdReichwasacute and even limited the advance of Germans in the Battle of the Bulge. However, Germanys oil supplies were always limited and restricted. The survey concluded that the bombing was most successful in delaying deploying troops by bombing rail centers. Although the rail centers were quickly repaired, the delay was enoughtogivetheedgetotheAlliesonthebattlefield. WithoutadditionalfilesitisimpossibletodetermineifindustrialtargetsassociatedwithAmericanfirms wereselectivelyremovedfromthetargetlist.Thereisstrongevidenceforbothsidesoftheargument.Ifthese industrial plants were systematically removed from the bombing list, then the total destruction of German industryandmeanstowagewar, as favoredbyRoosevelt,wasbeingsabotaged.Thereisevidence thatsuch mayhavebeenthecase.However,thereaderwillneedtocontinueuntilthatevidenceispresentedattheend ofthechapter. The massive area bombings of cities, particularly the fire bombing of Dresden, bring up another critical point.Inessencesuchbombingsofciviliancenterswerenothinglessthananactofterrorism.Estimatesrange from 40,000 to over 130,000 thousand killed in the resulting firestorm in Dresden. When the Nazis bombed and strafed Belgrade, Yugoslavia demanded that it be included on the list of war crimes. While much of the worldconsidersbombingofciviliancenterswarcrimes,theUSstillmaintainsthatitisnot.Thereadershould alsonotethatDresdenwasanancientcityandcontainedmanyuniquearchitecturalwonders.However,itwas

inthepathoftheadvancingSovietarmy.ThereadershouldponderwhyJohnMcCloysavedRothenburgfrom bombingandnotDresdenwhenhereachesthatpartofthischapter. Unfortunately the 4Ds program was sabotaged from the very beginning. It only reached epidemic proportions after the Morgenthau plan had been revealed to the public, following the Quebec meeting. Morgenthau was one of the few within the Roosevelt administration pushing for a hard peace following the war.AftertheQuebecmeetingMorgenthauwasviewedasthemosthatedmaninAmericalargelyduetoNazi propaganda and the proNazi leaders of American industry. Key to sabotaging the 4Ds program was the removalormarginalizationofMorgenthau. Following the success of the Normandy invasion, Morgenthau had lunch with General Eisenhower in Portsmouth. Morgenthau and his aides Dexter White and Fred Smith were eager to sound out Eisenhowers opinionsonpostwarGermany.Eisenhowersreplyfollowsbelow. ImnotinterestedintheGermaneconomyandpersonallywouldnotliketobolsterit,ifthatwillmake it easier for the Germans. As far as he was concerned the German General Staff should be utterly eliminatedandtheNaziringleadersgiventhedeathpenalty.IkefeltthatGermanpeoplebysupporting Hitlerhadbeenaccomplicestoeverythingdoneintheirname.They mustnotbeallowedtoescapea senseofguilt,ofcomplicity,inthetragedythatengulfedtheworld.[135] While Eisenhower realized that Morgenthau had been his severest critic after he arranged a pragmatic deal with Vichy Admiral Darlan, Eisenhower was indeed truthful in expressing his views on Germany. He often wrote of how he hated Germans in letters to his wife. His views were only further solidified after the first concentrationcampwasliberated. Eisenhower also expressed his opinions on the Soviets to Morgenthau. He felt that a hard peace would cause the Soviets to redouble their efforts to win the European war. Ike staunchly felt that the Russians deserved the right to capture Berlin after suffering horrendous losses. Moreover, Eisenhower was optimistic aboutpostwarrelationshipswiththeSovietUnion.HeexpressedtoMorgenthauthatRussiahadproblemsof itsownthatwouldkeepherbusylongaftertheyweredead.[136] OnJanuary5,1945,withtheBattleoftheBulgeraging,Rooseveltspolicyofunconditionalsurrendercame underbrutalassaultbySenatorBurtonWheeler.WheelersdemagogueryinsistedthatamajorityofAmericans were unwilling to sanction a peace of vengeance against Germany. Nor would they accept America acting as Europespolicemen.TheBritishembassyinWashingtonnotedthatWheelersassaultmadehimantiSovietand antiSemitic. On March 3, 1945 Secretary of War Stimson met with FDR and reminded him that EisenhowerhadagreedtoserveonlyforafewmonthsasmilitarygovernorofGermany after the surrender. Stimson was troubled by the recent fire bombing of Dresden. He noted in his diary that Dresden was the capital of Saxony, the least Prussianized part of Germany.StimsonopposedahardpeacewithGermanyandhadatonetimesuggestedhis UnderSecretary,RobertPatterson.BothRooseveltandMorgenthauapprovedoftheidea. However, in March 1945 Stimson informed FDR that after the Battle of the Bulge the Pentagon needed to revise its war production and Patterson was needed to oversee the revision.However,StimsontooktheopportunitytosuggestthatGeneralLuciusClayfrom General Lucius Clay theWarMobilizationboardwouldbetherightman. Duringthesummerof1944MorgenthauheardthatJohnMcCloywasinterestedinthejob.Heindignantly hadaskedHopkinshowwithpreviousclientslikeGeneralElectricandWestinghouseMcCloycoulddealwith such big companies claims against postwar Germany. Both companies had substantial investments in Germany. McCloyhadestablishedinadvancedthatClaywaswillingtomakeampleuse,ifnecessary,oftheloophole inJCS1067toallowmilitarycommanderstocircumventthe4Dsprogram.[138] OnMarch10,JamesDunnpresentedStettiniuswithadocumententitledDraftDirectiveoftheTreatment of Germany. Dunn had assured the Secretary of State that he had merely put the Yalta decisions down on paperwith nochangesinpolicy.FourdayslaterStettiniuspresentedthepapertoRoosevelt falselyclaiming thatStimsonhadendorsedit.FDRinitialedthedocumentonthatrecommendation. StettiniushadaskedRoosevelttopromoteDunninDecember.RoosevelthadatfirstworriedaboutDunns reputationforlegerdemainandhisconservativeviews,butconsentedtothepromotion.Eleanorwasoutraged

overthepromotion.DunnhadbeenabackerofFrancoandwantedtouseGermanindustrialiststorehabilitate Germany. Stettinius was unaware that Dunn had played him for a fool. The document had switched Allied control from a decentralized power to a centralized power concentrated in the Control Council.[137] The document had upset everyone, Stimson, McCloy, Morgenthau. The next day Stimson asked the President why he had signedsuchaterribledocument.Rooseveltrepliedthathecouldntrememberifhehadsigneditornot.Atthis timeRooseveltshealthwasdecliningrapidlyandraisesaseriousquestioninhisabilitytocontinuetofunction asPresident.Hewasconstantlytiredandreportedtobeinattentive;withinamonthhewouldbedead. OnMarch20,MorgenthauhadlunchwithRooseveltandpresentedhimwithamemoopposingthedraftby Dunn.RooseveltinformedMorgenthauthatifheandStimsoncouldcomeupwithanagreementwithStettinius, hewouldrevokethedraft.Beforeleaving,thePresidentagreedwithMorgenthauthatheshouldfireDunnand severalotherswithintheStateDepartment. OnMarch23,MorgenthauandGrewpresentedFDRwithanewdocumenttoreplacetheDraftDirective.It was written mainly by McCloy and reflected FDRs current view of changing German industry and not to destroyit.McCloysMachiavelliancharacterinsabotagingthe4Dsprogramextendedevenfurtherthanhaving a hand in the selection of the military governor and writing the control document. He made sure that the PentagonwouldhavetheupperhandandClay wouldnotbehamstrungbyaMorgenthau man.GeneralClay was likewise shrewdly political and had asked Morgenthau his recommendation for an economic aide. MorgenthauhadrecommendedBernardBernstein.Claydisapprovedofhisrecommendation.McCloythensaw toitthathisbrotherinlaw,LouisDouglas,wouldreceivethepost. Douglas was the heir to the PhelpsDodge copper fortune. He had served as Roosevelts first budget director before resigning over the Presidents liberal policies. Privately Douglas complained that most of the badthingsimplementedintheNewDealcouldbetracedtoJewishinfluence.HisextremeantiSemitismcomes directly with the Douglass family close business association with the Dodge family. The Dodge family was active in the eugenics movement. The reader should note that the PhelpsDodge Corporation was extremely antiunionaswellandhaddriventheirminersintothedesertratherthannegotiatewiththeiruniondemands. There are enough gaps in Louis Douglas military files to suggest he was probably a member of the OSS. FollowinghisappointmentaseconomicaidetoGeneralClay,DouglasservedasambassadortoEngland.[139] AseconomicadvisortoClay,DouglassupportedrevitalizingGermanindustry. ClearlyMcCloysmachinationscrippledthe4Dsprogramfromthestart.Hehadhishandintheselectionof twoofthemostpowerfulpositionsinpostwarGermany,themilitarygovernorandhiseconomicaide.McCloy carefullychoseboth,knowingthattheywereopposedtodismantlingGermanindustryandlargelyopposedto the 4Ds program. Moreover, he was chiefly responsible for rewriting the directive to insure that German industrywouldnotbeheldresponsibleforsomeoftheworstcrimesoftheThirdReich.Later,McCloywould takeoverasthemilitarygovernorandfreemostofthewarcriminals.

Part 2: United Nations War Crimes Commission

TheAlliedforcesonthegroundwerelikewisehinderedfromcompletingthedenazificationprogrambytheir own officers. In a meeting of the Finance Division (fuller details will follow later in the chapter), Captain Norbert Bogdan argued furiously against investigations of the Stein Bank on grounds it was small potatoes. BogdanwasaformervicepresidentoftheSchroderBankingCorporationofNewYork.ShortlyafterBogdans successfuleffortinblockingtheinvestigation,twoofhisstaffappliedforpermissiontoinvestigatethebank. TheIntelligenceDivisionblockedthatrequest.ITTwascloselyassociatedwithKurtvonSchroderandwanted to conceal for all time its past in helping the Nazis. Once investigation of the Stein Bank was started, the connectionwouldbesoonexposed.[117] Unfortunately officers loyal to their former employer and not their country were the general rule rather than the exception. As IBMs requests for Treasury licenses to transact business with Germany and Italy increased,HaroldCarter,anemployeeoftheEconomicWarfareSection,tooknotice.Cartercarefullyprepared hiscaseagainstIBM,butwasdeniedasubpoena.TofurthercomplicateCarterscaseagainstIBM,theDehomag machines were only leased to the Nazis. Therefore, by a quirk in the law, they were American property and weretobeprotected. Further,WatsonhadanticipatedthewarandonMarch31,1941incorporatedanewsubsidiary,Munitions ManufacturingCorporation.Twosmallcanningfactorieswerepurchasedtohousethenewunit.Withinsixty daysofPearlHarbor,Watsonunveiledafullyequippedmanufacturingfacilitystaffedby250employees.The

firstproductwasa20mmantiaircraftcannon.Eventuallythesubsidiarygrewtoproduceawholerangeofwar munitionsincluding90mmantiaircraftgundirectories,M1rifles,gasmasks,bombingsightsandotheritems. Morethanjustamanufacturer,IBMtookupahostofresearchprojectsforthemilitary. IBM was on the beaches of Normandy soon after the beachhead was established. Their mobile MRUs or militaryunitsspecializedindeployingIBM made equipment. TheseMRUsadvancedwiththe frontandwere indispensable.TheseMRUs,IBMemployeesandthosetrainedbyIBM,becamethebackboneoftheMRUforces. Their loyalty laid more with IBM than with their country. Watson received hundreds of letters from IBM soldiers,manytellingofcapturingDehomagmachines.Nonehowever,causedmoreofastirthanaletterfrom a Lt. Lawrence Flick written on September 2, 1945. Flick had told of enlisting a Captain from the Property Control Division to support Fellinger, a former Nazi IBM partner. Fellinger had been one of those in the Dehomagrevolt,whichtriedtooverthrowtheirongripofWatsononDehomag.Watsonhadnointentionofre empoweringFellinger.[118] IBMandITTwerenottheonlycorporationsthathademployeeswhoseloyaltytotheircompanyexceeded theirloyaltytotheircountry.Thearmywasfullofsuchofficers. Asearlyas1942,therewereclearindicationsofcorporateAmericasconnivancetocontinuetodobusiness withtheGermancartelsafterthewarasifthewarhadnevertakenplace.InaspeechonJune3,1942,before theIllinoisBarAssociationAssistantAttorneyGeneralThurmondArnoldwarned: Thesecretinfluenceoftheinternationalcartelisgoingtobethrowninfavorofpeacewithoutvictory whenthefirstopportunityarisesjustasitwasthrowninthatdirectionatMunich. The small group of American businessmen who are parties to these international rings are not unpatriotic, but they still think of war as a temporary recess from business as usual with a strong Germany.Theyexpecttobeginthegamealloveragainafterthewar. Itissignificantthatallthesecartelleadersstilltalkandthinkasifthewarwouldendinastalemate, andthattherefore,theymustbeinapositiontocontinuetheirarrangementswithastrongGermany after the war. This is not shown by their speeches, but by actual documents and memoranda of businesspolicywhichwefindintheirfiles.[6] Arnoldswordsconfirmthefindingsinthepreviouschapter.AsofJune1942corporateAmericahadyetgiven uphopeofnegotiatingapeacewiththeNazis.HiswordswerepropheticinpredictingtheoutbreakoftheCold War.PerhapstheonlymistakeArnoldmadeinhisspeechwasinlabelingthesetreasonouscorporateleaders aspatriotic.Theywerenot. Norwasthistheonlywarningoftheconnivance.OnJune4,1943,HomerBoone,ChairmanoftheSenate PatentsCommitteeinformedtheSenateMilitaryAffairsCommittee: The Standard Oil Company of New Jersey directors were asked by certain stockholders to cut off all relationswithFarbenafterthewar,butitrefused.Oneofficialsaidsucharequestwasanaffront.There is clear indication that after this unpleasant interlude of war they will hold hands again and resume theirveryharmoniousandbeautifularrangementswithcartels.[7] The success of the T Forces at Nordhausen compared with the failure of the 4Ds program along with the quotesaboveshouldserveasagrimremindertothepoweroftheNazielementsamongus. Tofullyunderstandhowthe4Dsprogramwassabotagedfromwithin,abrieflookatthedevelopmentof theNurembergTribunalandtheelementsassignedtothe4Dsprogramisneeded.Mostworksonlycoverthe Nuremberg trials, however, there were several other trials as well. The Nuremberg Trials were actually the culmination of a long and complicated process steeped in geopolitics. Since the agreement leading to the NurembergTrialswasnotreacheduntilmid1945,therewasnoofficialpolicyinhandlingoftheNazisasthe AlliedforcessweptoverGermany,asalreadynotedabove. FromtheverybeginningthedebatebetweenWashingtonandLondononwhatconstitutedawarcrimewas haunted by the failure of the war crime trials following WWI in Leipzig. The reader should recall from the chapteronthe1920sJohnFosterDulleseffortstosabotagethepeaceagreementandinparticularhisdefense oftheKaiser. The question of punishing war criminals in WWII was first raised in 1940 by the exiled government of Poland. The British Foreign Office opposed the Polish call. Itlaiddormantuntil after theGerman invasionof Russia,whichsawahorrendousincreaseinNazi brutality.Existinginternationallawwasinadequateforthe crimes committed during WWII and necessitated an agreement between the big three powers to adjust internationallawtothehorrorsofthenewwar.

PeriodicallytheBritishwouldissuestatementstofortifythe moraleoftheoccupiedpeoples.OnOctober 21,1940,ChurchillstatedthatallcrimesofHitlerwouldbeuponhimanduponallwhobelongedtohissystem. InMay1941,ForeignSecretaryAnthonyEdenspokeofareckoningthatwouldbewideandfierce.OnJune12, 1941,followingtheNaziinvasionofRussia,Churchillwasquotedasfollows: These quislings, like Nazi leaders, if not disposed of by their fellow countrymenwhich would save troublewillbedeliveredbyusonthemorrowofvictorytothejusticeofAlliedtribunals.[23] GermanysinvasionofRussiamarkedaturningpointintherelationsbetweenPolandandBritain.Britainwas now intent upon improving relations with the Soviet Union as an ally against the Nazis. The exiled Polish governmentwasintentonpreservingits1939borderswhileMoscowwasadamantaboutretainingthePolish territorycapturedfollowingtheRibbentropMolotovagreement. Byautumn1941,theForeignOfficehadtocontendwithgrowingunrestintheCabinetandParliamentwith reportsofGermanatrocities.InSeptember1941,HughDalton,LabourMPandministerofeconomicwarfare calledEdensattentiontotheGermanpracticeofexecutinghostageswheneverGermanforceswereattacked. DaltonproposedtellingthepeopleofEuropetokeepalistofnamesofallthoseconnectedtotheexecutionof hostages,includingthecommandingofficer.Afterliberation,thenamesonthelistswouldbehunteddownand summarilyexecuted.TheForeignOfficeremainedcoldtoDaltonsproposalandwarnedofarepetitionofthe HangtheKaisercampaignafterWWI. RecognizingthegrowingconcernoverNaziatrocities,EdenonOctober1,1941askedtheWarCabinetto approve of a statement along the lines of the AngloFrancoPolish declaration of April 1940. The draft declarationendedinavaguestatementunacceptabletotheWarCabinet.TheForeignOfficequicklyrevisedthe declarationtoreadasfollows: We therefore publicly declare that brutalities which are being committed in occupied countries are contrarytothedictatesofhumanity;areareversiontobarbarism;andwillmeetwithsureretribution. To this end, we are united in our resolve to win freedom of the oppressed peoples and to execute justice. The methods of oppression and terror used by Hitler are such that many people, including GermansandItalians, areignorantofthefull facts.Whenthesethings areknown,worldopinion will notallowthecriminalstoescapejustpunishmentfortheircrimes.Thefactsarebeingputonrecordso thatinduetimetheworldmaypronounceitsjudgment.Withvictorywillcomeretribution.[24] Meanwhile leaders in the Parliament called for a stronger declaration. The Foreign Office did not deliver the declarationtotheUnitedStatesandSovietUnionuntilOctober21,confirmingthelowimportanceitattached to the war crime issue. Four days later, in an unexpected move on October 25, Roosevelt issued a statement condemningtheexecutionof50hostagesinNantesforreprisaloftheshootingofthemilitarycommanderof the region. Roosevelts statement compelled the Foreign Office to make several quick decisions. Churchill respondedimmediatelytoRooseveltsstatementandconcluded: Retributionforthesecrimesmusthenceforthtakeitsplaceamongthemajorpurposesofthewar.[25] Anotherofthethingsplaguingtheestablishmentofaunifiedwarcrimesdeclarationwasthetendencyofboth LondonandWashingtontodismissthereportsfromtheSovietsasexaggerationsorworse,asimaginary.Yet, someofthemostbrutalwarcrimessuchastheBariYarmassacrewereoccurringontheeasternfront. Following Churchills remarks on October 25, various allies weighed in with their own comments. The Australiansthoughtthestatementtobecouchedininappropriatelanguageandshouldbemadesimpleandall remarks about retributions be dropped. Governments in exile disagreed with the statement. The Greeks acceptedinprincipletheBritishstatement,butinsistedonaddingBulgariabesideGermanyinthedeclaration. The Yugoslavia government wanted to include all forms of atrocities, dive bombing, burning of villages, and others.TheyalsowantedtoincludetheNaziquislinggovernmentsincludingthesocalledIndependentCroatia. The War Cabinet, however, approved the Foreign Office stand that the statements by Roosevelt and ChurchillhadmadeajointresolutionbytheAlliesunnecessary.FrankRobertsthefirstactingsecretaryinthe Central Department of the Foreign Office argued that such a move by keeping Britain from signing a joint declaration would not commit Britain to whatever the Allies may decide at wars end. The Foreign Office in generalwantedtogofurtherandfreeBritainofanycommitmenttomakingalistofwarcriminalsorengaging inanypreparationofanyregistryofatrocities. UltimatelyBritainchosenottoassociateitselfwiththeproposeddeclaration.Tofurthermuddythewaters, adisputebrokeoutamongtheAlliesastotheinclusionoftheSovietUnioninsuchadeclaration.ThePoles, Czechs and Yugoslavs, along with England, were in favor of the inclusion; however, most other governments

were opposed to the inclusion. The United States, not yet at war, declined to attend any joint signing of the declaration. EventuallythemeetingoftheAlliestookplaceonJanuary13,1942.Representativesfromninenationstook part: Belgium, Czechoslovakia, Greece, Luxembourg, the Netherlands, Norway, Poland, Yugoslavia and the FrenchNationalCommittee.AlsopresentasobserversweretheUnitedStates,Britain,theSovietUnion,China, theDominionsandIndia.Edenaddressedthegroupwithcautionconcludingthatthegovernmentsofoccupied territoriestaketheinitiativeindeclaringtheprinciplesbywhichtheywillbeguidedonceliberated. While the atrocities increased in Poland, the Polish exile government began demanding more than just declarations. It first asked that the British bombing of central and western Germany be in retaliation for the executionof100hostagesinWarsaw.TheForeignOfficerefusedtherequest.AnotherPolishdemandcalledfor theexecutionoffiveGermansafterthewarforeachPole,YugoslavorCzechkilled.ThePolishexilegovernment furtherdemandedthataspecialairforceunitbecreatedforthedailybombingofaGermantownthathadno militaryvalueasareprisalfortheatrocitiesbeingcommittedinPoland. ThePoleswerenottheonlyoccupiedterritorythatdemandedstrongermeasuresfromBritain.Afterthe destruction of Lidice, the Czechs demanded that the RAF raze a German village. Like the Polish request, the ForeignOfficeturnedtheCzechdemanddown.InresponsetoBritishinaction,theCzechsannouncedunilateral action to judge and punish the culprits responsible. The Czech list included Hitler, the members of his government,allrepresentativesofGermanystationedinCzechoslovakia,aswellastheirsubordinates,andany German or Czech that aided them, even indirectly. The Foreign Office condemned the Czech action as inexcusable since the Foreign Office was not consulted in advance. Britains rejection of the demands of the PolesandCzechswasnottotallywithoutreason.Uptothistime,Britainhadfaredbadlyinthewarandthere wasalegitimateconcernoverGermanreprisalsagainstcapturedBritishPOWs.Additionallythedoubtsofthe claimscomingfromEasternEuropecontributedtotherejections. It wasnt until October 1943 that the United Nations War Crimes Commission (UNWCC) was established. ThecommissionwasplaguedwithdifferencesbetweenBritainandtheSovietUnionastowhatconstituteda war crime as well as differences in how to conduct the war. As already stated above, a faction of the British ForeignOfficewasopposedtoanywarcrimetrials;therewasasimilarfactionwithintheUnitedStatesState Department.ThelowregardoftheBritishForeignOffice and theUSStateDepartmentfortheneedofawar crimescommissionisreflectedbytheeighteenmonthsittookfortheUNWCCtotakeshape. PerhapstwoofthelargeststumblingblocksbetweenBritainandtheSovietswerethecaseofRudolfHess and the inclusion of the Dominions. The Soviets desire was for immediate trials, including that of Hess; the British, on the other hand, wanted to wait until after the war before beginning any trials. The British also wantedtoincludetheDominionssuchasNewZealandandSouthAfricainthecommission.TheSovietswere opposedtosuchinclusionsunlesseachoftheSovietstateswasgrantedequalstatus.

Part 3: What is a War Crime?

In forming the UNWCC, the British selected Sir Cecil Hurst as their representative. Hurst had served as legal advisortotheForeignOfficeandsatonthePermanentCourtofInternationalJustice.TheBritishaskedboth WashingtonandMoscowtoselecttheirrepresentativesandproposedtheAmericanrepresentativeshouldbe thechairmanofthecommission. TheStateDepartmentlegaladvisor,GreenHackwood,thoughtthecandidateshouldnotbeselectedsolely on the basis of criminal law but also on the basis of understanding of international geopolitics. Secretary of State, Cordell Hull wanted Francis Biddle, the US Attorney General to fill the spot. Biddle on the other hand rejected the position. After four months of internal wrangling inside the State Department, Roosevelt named hisfriendHerbertPelltofilltheposition.PellhadservedinthesixtysixthCongressasaRepresentativefrom NewYorkandasAmericasministerinPortugalandHungary.Hullacceptedthenomination,despitePellslack ofanylegalbackground.However,otherswithintheStateDepartmentimmediatelysetouttosabotagePelland hismission. Pell was unknown in England, despite his earlier diplomatic service. An initial impression of him was forwardedtoLondonbyJ.ForesteroftheBritishEmbassyinWashington.Foresterhadgainedhisinformation from Ham Armstrong, a State Department official. Armstrong charged that Pell was a disappointing political appointmentandthemanwouldcontributelittletothecommission.ForesteralsometPellandconcludedthat heisnotunintelligent,butseemssetinhisways.TheBritishembassyofficialbelievedPellsknowledgeofwar crimes was slight, although he had already seemed to have formulated certain fixed views on policy. He

concludedthatPellbelievedthatwarcriminalsshouldbebroughtbeforeaninternationaltribunal,butthatthe tribunalshouldnotbeboundbyAngloSaxonrulesofevidence.FurtherForesterstatedthatPellbelievedthere shouldbenoappealofsentencesandthatexecutionsofthosesentencedtodeathbecarriedoutimmediately afterpronouncementoftheverdict. Following his appointment, Pells relationship with the State Department grew more tense. The State Department actively sought steps to constrain whatever policies Pell wanted to undertake. By the time Pell departedforLondon,hehadconcludedthattheStateDepartmentdidnotregardwarcrimesasanearnestor legitimateconcern.PellwassurprisedthatnotasingleofficialwithintheStateDepartmentwasresponsiblefor dealingwithwarcrimeissues. OnOctober20,1943representativesfromseventeennationsmetinLondontoinauguratetheUNWCC.The Soviets were absent. The Dutch representative offered a view differing from the British view that the commission should be limited to investigating and recording evidence of war crimes. The Dutch favored a proposalthatthecommissionshouldbeactivelyinvolvedinpreparingthetrials.TheChineserepresentative raisedanothertroublesomepointfortheBritish;theChinesewantedtoincludeallwarcrimesdatingbackto theJapaneseinvasionofManchuriain1931.TheBritishfearedgrantingthisrequestwouldopenthedoorfor theCzechstodemandinvestigationsbacktothetimeoftheMunichagreement,inwhichtheBritishrolewas less than exemplary. Beyond the vote to establish the commission and choosing the location of the headquarters,nothingsubstantialwasaccomplished. TheSovietsrefusaltoparticipateintheopeningmeetingdidnotpreventStalinfromjoiningtheAlliesina jointstatementcondemningGermanatrocities.OnNovember1,thebigthreesignedtheMoscowDeclaration dealingwiththepunishmentofwarcriminals.Thedocumentendedwiththefollowingwords: Let those who have hitherto not imbued their hands with innocent blood beware lest they join the ranksoftheguilty,formostassuredlythethreeAlliedPowerswillpursuethemtotheuttermostends of the earth and will deliver them to their accusers in order that justice may be done. The above declaration is without prejudice to the case of major criminals, whose offences have no particular geographical localization and who will be punished by the joint decision of the Governments of the Allies.[26] ThisstatementwastheonlysubstantialagreementbetweentheAlliesconcerningpunishmentofwarcriminals among the big three. Although its principles served as a guide for the Allies, it did nothing to bridge the differences to bring the Soviets into the UNWCC. The Soviets and the British would remain at odds over the BritishdemandtoincludetheDominionsandnotthevariousSovietRepublics.Therewereotherobstaclesfor Sovietparticipation,particularlythefailureoftheAlliestoopenasecondfrontin1942. In midJuly 1943, the Soviet Union put eleven Soviet citizens on trial for high treason for assisting the German forces around the town of Krasnodar and the liquidation of 7,000 people. Eight were sentenced to hang;theremainingdefendantsweredeportedorsentencedtotwentyyearsofhardlabor.ApparentlyMoscow wishedtodemonstrateitscommitmenttothepunishmentofwarcriminalsanditsdesireforajointpolicy,as theSovietsheldnumerousGermanPOWs,includingmanyknowntobeguiltyofwarcrimes. Severalweeksafterthehangings,theSovietscholarProfessorA.FarrinpublishedinEnglish,Warandthe WorkingClass.ThepublicationhintedatbeingtheofficialviewpointoftheSovietUnion.Thearticledivided war criminals into four classes. The first class included Hitler and his cabinet ministers. The second class included party leaders and the German Army Command. The third class was composed of the financial and industrialleaders.TheforthgroupwasdefinedasthosethathadbenefitedfromtheNaziplundering,suchas thosereceivingstolengoodsorthosewhoexploitedslavelabor. At Teheran, Stalin attempted to translate Farrins principles into numbers. Only two weeks after the Teheran conference, the Soviets put on trial three Germans and a Russian collaborator in Kharkov. The defendantswereaccusedofusinggascars,shootingofPOWsandtheexecutionofthousandsofSovietcitizens. Onceagain,thetrialalsobroughtchargesagainsttheheadsoftheNazigovernment.OnDecember19,thefour defendantswerehanged.Americanreportersthatfollowedthetrialwereconvincedofguiltofthedefendants andofthe genuineness ofthecharges.TheyalsothoughttheSovietshadbeenpunctiliousinobservinglegal proprieties. TheKharkovtrialopenedanoldwoundbetweentheSovietsandLondon.TheSovietshadalwaysbeenin favorofimmediatetrials,whilebothLondonandWashingtonwantedtowaituntiltheendofthewarbefore beginning trials. The desire to wait until the end of the war by Britain and the US was not unjustified. Both

feared that such trials could provoke retaliations by the Nazis against British and American POWs. The Nazi governmentwithindayssoughttodriveawedgebetweenthebigthreebythreateningtoputPOWsontrialfor seriousbreachesofinternationallaw.InJanuary1944,informationreachedWashingtonofaprotestbyhigh militaryofficersinGermanyagainstanytrialsofAmericanorBritishPOWsinreprisaltotheRussiantrials.At the end of March, Germany published a statement saying that the preparations for trials of POWs for war crimeswerewelladvanced.BritainandtheUSaskedtheSovietstorefrainfromholdinganymoretrialsuntil afterthewarsend.Russiacomplied. Just prior to the Teheran Conference, Churchill proposed a radical plan of summary executions of high ranking Nazis guilty of war crimes that were not limited to a particular geographic location. Churchills plan was that the nearest officer of rank of major general would convene a court of inquiry not for the determination of guilt, but solely to establish identity. Once identified, the officer would order his execution withinsixhours. Churchillenvisionedashortlistofwarcriminalsthatwouldbesubjecttohisproposal.TheForeignOffice opposedhisplan,asdidtheSoviets. The Roosevelt administration was equally divided on the terms of postwar Germany and war crimes. Morgenthauurgedforahardpeaceandbroadwarcrimeinvestigations.Ontheotherhand,therewasafaction sympathetictoGermanyledbySecretaryofWarStimson.ThemilitaryhadpreparedthebookletHandbookof Military Government, which reflected the views of the top officials within the military for an immediate restoration of Germany. The reader should be aware that many of the military officers thought we were fightingthe wrongenemyandshouldbeatwarwiththeSovietsratherthantheNazis.Underpressurefrom Morgenthau,RooseveltorderedStimsontohavethebookletrewrittenafteraskinghowsuchadocumentcame tobewrittenandwhoapprovedit.Rooseveltscommentsfollow: ItgivesmetheimpressionthatGermanyistoberestoredjustasmuchastheNetherlandsorBelgium, andthepeopleofGermanybroughtbackasquicklyaspossibletotheirprewarstate.Idonotwantto starvethemtodeath,but,asanexample,iftheyshouldbefedthreetimesadaywithsoupfromarmy soupkitchens,thatwillkeepthemperfectlyhealthyandtheywillrememberthatexperiencealltheir lives. The fact that they are a defeated nation, collectively and individually, must be so impressed on themthattheywillhesitatetostartanewwar.[27] RooseveltfurthercriticizedthedocumentduringtheAugust28cabinetmeeting.DuringthemeetingRoosevelt namedMorgenthau,Hull,StimsonandHopkinstoacommitteefordeterminingthetreatmentofGermanyafter the war. Stimson was strongly opposed to the harsh treatment Roosevelt wanted for Germany. He passed Rooseveltsrequesttorewritethehandbookontohisaide,JohnMcCloy,whointurnpasseditontoMurray Bernays.[64]Bernayswasopposedtoanyactiononwarcrimesuntilafterthewarended.Hefearedanyaction would lead to reprisals against American POWs. Nevertheless, in November 1944 Bernays ideas on prosecution of war criminals were presented to FDR in a memo from Secretary of War Henry Stimson, and SecretaryofStateCordellHull,entitledTheTrialandPunishmentofEuropeanWarCriminals.ItwasBernays workthatprovidedtheframeworkandlegaltheorybehindtheNurembergtrials.AlthoughJewish,Bernayshad trouble keeping track of wartime atrocities. His own doubt over the reports and the inability to grasp the realityoftheHolocaustplayedaroleinhisviews. OnSeptember5MorgenthaupresentedRooseveltwithacomprehensivememorandumtitledProgramto PreventGermanyfromStartingaWorldWarIII.ThememorandumsoonbecameknownastheMorgenthau PlanandcalledforcompletedismantlingofGermanysindustrialmightandseverepunishmentforwarcrimes. Roosevelt indeed had reasons to reject an easy peace with Germany as the State Department was already in possessionofdocumentsindicatingtheNaziswerepreparedtogoundergroundandstartanewwar. Stimson was vigorously opposed to the Morgenthau Plan and was soon joined by George Marshall and GeneralMyronCramerinopposition.ThusatthetimewhenRooseveltdepartedfortheQuebecconference,his administrationhadnosetpolicyonthecourseofactionforpostwarGermany.RoosevelthadleftforQuebec withoutanysenioraides.InQuebec,itsoonbecameobvioustoRooseveltthatChurchillsmainfocuswason postwar aid to Britain. Consequently Roosevelt placed a call to his Treasury Secretary. Morgenthau then rushed to the conference with the end result of the Quebec conference concluding with agreement on the MorgenthauPlanforpostwarGermany. Before September had ended, the press had been leaked the contents of the Morgenthau Plan. It came under heavy fire in the press. With only six weeks to the election, Dewey saw his chance for victory over

Roosevelt improved. Dewey charged that with such a heavyhanded plan, Roosevelt was prolonging the war andwewerepayingforitinblood.RooseveltsuspectedpersonswithintheStateDepartmentoftheleakstothe press. Leaks such as this one could have been nothing more than someone with a big mouth. The timing of the leakshedssuspicionthattheleakmayhavebeenpoliticallymotivated;however,followingthewarcaptured NazidocumentsindicatethatitmayhavebeenanintegralpartofNaziplanning.AdirectiveissuedbytheChief of Intelligence Division of the German High Command, Admiral Canaris of March 15, 1944, part of which followshere,castsasuspiciouseyetowardsNaziintrigue. There is great fear in the USA of Bolshevism. The opposition against Roosevelts alliance with Stalin growsconstantly.Ourchancesforsuccessaregood,ifwesucceedtostirupinfluentialcirclesagainst Roosevelts policy. This can be done through clever pieces of information, or by references to unsuspiciousneutralecclesiasticalcontactmen. We have at our command in the United States efficient contacts, which have been carefully kept up evenduringthewar.ThecampaignofhatredstirredupbyRooseveltandtheJewsagainsteverything German has temporarily silencedthe proGerman bloc in the USA. However, there is every hope that thissituationwillbecompletelychangedwithinafewmonths.IftheRepublicanssucceedindefeating Rooseveltinthecomingelection,itwillgreatlyinfluenceAmericanconductofthewartowardsus. The KOleaders abroad and their staffs have innumerable opportunities of constantly referring to Rooseveltshatepolicy.Theymustuseinthiscampaignalltheexistingcontactsandtheyshouldtryto opennewchannels.WemustpointtothedangerGermanymaybeforcedtocooperatewithRussia.The greatestcautionhastobeobservedinalltalksandnegotiationsbythosewho,asantiNazismaintain contactwiththeenemy.Whenfulfillingmissions,theyhavetocomplystrictlywithinstructions.[28] Theabovedocumentnowcastsallsuchleaksandreportsinthepressappearinginthelaterstagesofthewar as Nazi intrigue or propaganda. As shown in the previous chapters, the Nazis had willing accomplices in Congress,themilitary,thepressandindustrialleaders.Thereaderalsoshouldbealertedtothereferenceto thatshouldtheRepublicanPartycouldwintheelection,theywouldaltertheAmericanconductofthewar.The previous chapters have detailed the collaboration between the Nazis and the Republican Party. In the 1940 election, Herbert Hoover had collaborated with top Nazis in Berlin in an effort to unseat FDR. Did the Republicans again collaborate with the Nazis in 1944 and offer them an easy peace for their support in the 1944 elections? The question for now must remain unanswered. However, lying in a vault and probably markedtopsecret,thereisadocumentthatcananswerthequestioneitheryesornodefinitively.Thereisno question,however,thatstartingin1944orso,themediaintheUnitedStatesstartedtoprintmanyeditorials and articles for an easy peace with Germany. No doubt, that many of these were the direct result of the directiveabove. InmidDecember1943theCzechrepresentativetoUNWCCproposedthattheUNWCCwasfullycompetent tohandleallaspectsofthewarcrimestribunalandshouldnotbelimitedtojustexaminationofdossiersand thecompilationofalistofwarcriminals.Theresolutionsucceeded. Up until the end of the war, there was no accepted definition of war crimes. In the absence of an official definitionofwarcrimes,BritishtreasurysolicitorTomBarnes,whoheadedtheBritishNationalOfficeforWar Crimes, informed Hurst that he was unable to submit any cases of war crimes or names of war criminals becauseofthelackofadefinition. By midMay, the committee suggested four categories of war crimes. The first was crimes committed for thepreparationofwar.Thesecond,crimescommittedinAlliedcountriesagainstarmedforcesorcivilians.The third included crimes committed against persons without regard to nationality, race, religion or political beliefs. The last category was reserved for those crimes perpetrated in order to prevent the restoration of peace.Thecommitteefailed,however,insupplyingadefinitionofwarcrimesordrawingupanexhaustivelist ofwarcrimes. Oneoftheissuesthecommitteefailedtoreachagreementonbeforetheendofthewarwaswhetherawar ofaggressionamountedtoawarcrime.Novotewasevertakenonthisquestionbythecommittee.Itwasnt until after the London conference of June 26August 8, 1945 at the insistence of the United States that the UNWCCincludedwaginganaggressivewarasawarcrime. Inthefirstfivemonthsofoperation,theUNWCClistedonly70casesofwarcrimes.Halfofthesewereso incompletethatthecommissioncouldnotmakeadetermination;othersweretrivial.Notasinglecaseatthe

timewaslodgedagainstanyprominentNazileader.Themainreasonforthesmallnumberofcaseswasdueto the difficulty of obtaining precise information from occupied territories while the POWs and deported labor campsremainedinNazihands. AtthebeginningofJune1944,committeechairmanHurstmetunofficiallywithEisenhowersheadquarters. Based on the conclusion of this meeting, Hurst recommended an establishment of a war crimes agency attachedtoSHAEF.TheForeignOfficesabotagedsuchaproposalandSHAEFformallyrejectedit. In November 1944 the Czech government decided to list Hitler as a war criminal. The British representative was opposed to such a listing until the German constitution could be examined. In December 1944thecommissionpresentedalistof712namesofGermanandItalianwarcriminals,includingthenames oftopNazissuchasHitler,Himmlerand17generals.Inall49,topNaziswerelisted. PerhapsthemostcontentiousissuethatcamebeforetheUNWCCwastheJewishissue. In August 1942 the Foreign Office and the State Department received a report from Dr. GerhartM.Riegner,arepresentative oftheWorldJewishCongressinGeneva,statingthat plans were under consideration in Berlin to which all Jews in Europe would be deported and concentrated in the East and with one blow be exterminated. Both the Foreign Office andtheStateDepartmentdisbelievedthereportandfailedtopassiton.Reportsoffurther atrocitiesagainsttheJewscontinuedtopileup.TheBritishForeignOfficebelievedthatthe massacres of the Jews could not be considered a war crime and sought to limit all war crimes to crimes committed against the citizens of Allied nations and then only after the Dr. Gerhart M. Reigner dateofthePolishinvasion. AlmostimmediatelyafterbeginningworkintheUNWCC,Pell,onhisowninitiative,raisedthequestionof crimes perpetrated by the Nazis against citizens of the Reich. His assistant from the State Department, Laurence Preuss, opposed the proposal. Preuss, in an effort to undermine Pell, reported in an unofficial and confidentiallettertotheStateDepartmentPellsactions.InfactitwasPellsactionsthatservedasacatalystfor the commission to include this issue. Preuss had also informed the Foreign Office the Pell was making dangerousmistakes.Thisissueofincludingcrimesbefore1939againstcitizensofGermanywasneveradopted by the commission, due to the actions of the British Foreign Office and the US State Department. In fact, the issuewouldleadshortlytotheremovalofPell. Anotherproblemthatplaguedthecommissionwasthetypeofcourttousetoprosecutewarcriminals.Pell informedtheStateDepartmentthatunanimousagreementhadbeenreachedonthetreatmentofwarcrimes conducted within a single country. In crimes involving more than a single country, Pell proposed that international authority should handle such cases. Pell also urged FDR to establish some machinery of justice thatcouldactfirmlyandquickly. Pells proposal and initiative irritated Hull, who believed the commission should restrict itself to the collectionofevidence.RooseveltpreferredamilitarycourtandconveyedhisopiniontoPell.InFebruary1944 a subcommittee chaired by Pell began examining the question of an international court. On September 22, Pells subcommittee formally issued the final draft on the Convention for Establishment of a United Nations JointCourt.ThefullUNWCCapprovedthedraftonSeptember26,1944. In January 1945, Hurst submitted his resignation as a result of a dispute with the Foreign Office. The Foreign Office was well aware of the tireless and relentless efforts of Pell to bring the Nazis to justice. They feared Pell would be elected chairman as a replacement for Hurst. The State Department was likewise upset withPellscriticismofinactioninState. Pells appointment had been a thorn in the side of Hackworth, the State Departments legal advisor from theverybeginning.InDecember1944HackworthinformedPellthattheissueofaninternationalcourtwasan issue being considered by several departments: State, War and Navy. Hackworth emphatically refused Pells requesttoattendmeetingatwhichthesequestionsweredebated. Hackworth already knew Pell would be removed as a result of Congresss refusal to approve the State Departmentsrequestfor$30,000tocontinuePellsactivitiesuntilJune30,1945.TheStateDepartment,now headed by Stettinius following Hulls resignation, proposed to FDR that Americas representative on the UNWCCbecarriedoutbyanArmyofficer.OnJanuary9,1945HackworthandStettiniusignominiouslysacked Pellbyinforminghimtherewerenofundsforhimtocontinue.OnJanuary29,1945theundersecretary,Joseph Grew, came under attack by the press over Pells dismissal. One reporter questioned the State Departments record in the Senate hearings on appropriations for Pells office. The Senates records indicated that Hackworths assistant, Katherine Fate, made a presentation before the Senate committee for funding Pells

positionlastinglessthanthreeminutes.Onceagain,adedicatedantiNaziwasremovedbytheinvisiblehands oftheprofascistswithinCongressandtheDepartmentofState. The removal of both Hurst and Pell in January 1945 from the UNWCC brought about strong press commentaryofthecollapseofthecommittee.However,thecommitteecontinuedoperationsuntilMarch31, 1948.Infourandhalfyears,thecommissionhadpresented80listscontainingthenamesof36,529suspected warcriminalsofwhich34,270wereGerman.TheUNWCCeagernesstoadvancepreparationsindealingwith war crimes was opposed vigorously by both the British Foreign Office and the US State Department. Both regarded the UNWCC as a political necessity to be exploited in neutralizing demands for reprisal by governmentsinexile.WhiletheUNWCCcommitteewascreatedwiththenoblestintentionsinreality,itserved no greater purpose than to talk to death the crimes of the Holocaust. Certainly, it faced obstructionists from boththeUnitedStatesandBritain.

Part 4: The OSS: Friend or Foe

InApril1945,FDRdispatchedanAmericandelegationtoEnglandatLondonsrequesttoovercomedifferences and formulate a common war criminals policy. The delegation was headed by Judge Samuel Rosenman. The BritishsidewasheadedbyViscountSimon.Rosenmanproposalsincludedcrimescommittedbefore1939and against Germans citizens. To please the Americans, Simon in his proposal included a reference to crimes againstJews.Sadly,noresolutionwasreachedduetothedeathofRoosevelt. Shortly after advancing to the Oval Office, President Truman adopted the recommendations contained in the memorandum on trial and punishment of Nazi war criminals presented to Roosevelt in January 1945. TrumanusedtheSanFranciscoconferencetopromoteanddiscussthislistwiththeAllies.Nodecisionswere reached since the Soviets and French had received no authorization to negotiate the American proposal. On June14,1945,theBritishissuedaroyalwarrantsettingthestageforarrestsofwarcriminalsbyBritishforces. The warrant, however, was limited to only crimes occurring after September 1939. It was further limited to excludecrimesagainsttheJews. ItwasnotuntilafterintensenegotiationsfromJune26untilAugust8betweentheAlliesthatajointaccord was reached. Under Article 6 paragraph c, the charter established crimes against humanity which included murder, extermination, enslavement, deportation and other inhuman acts committed against any civilian population before or during the war. Before this time the crimes involved in the Holocaust were merely violencedirectedatJews. OnDecember20,1945inordertoestablishacommonbasisfortrialstobeconductedinthefourzones,the AlliedControlCouncilforGermanypublishedLawNo.10PunishmentofPersonsGuiltyofWarCrimes,Crimes against Peace and Humanity. The law empowered the Allied commanders of the four occupied zones to conductcriminaltrialsonchargesofwarcrimes,crimesagainsthumanityormembershipinanorganization thatplannedsuchcrimes.IncaseofcrimescommittedbyGermansagainstGermansorstatelesspersons,the militarycommanderswereauthorizedtopermitthecourttobeaGermancourt. Between December 1946 and April 1949 there were twelve trials involving 185 defendants in the Americanzone.ThesetrialsbecameknownastheSubsequentNurembergProceedings.Innoneofthesetrials wasthemassmurderofJewsconsideredasaseparatecriminaloffense.[29] In the end, the Americans brought to trial 1,857 defendants. The military courts tried 1,672 of these, of whom1,416wereconvicted.Oftheconvicted,450weresentencedtodeath,219weregivenlifeimprisonment andthereaming 889tovariousprisontermsof fiveyearsorless.TheBritishtried1,085;sentencing240to death; acquitting 348; sentencing 24 to life, and the remaining 473 received varying prison sentences. The Frenchtried2,107;acquitting404;sentencing104todeath;sentencing44tolifeimprisonment;theremaining 1,475 received various prison sentences. The Soviets charged 14,240 with crimes; 138 were sentenced to death;142wereacquittedandtheremaindersentencedtovariousprisonsentences.[30] However,thesestatisticsfailtotellthecompletestory.Manyofthedeathsentenceswerecommutedand manyofthosesentencedtoprisonforlongtermswerefreeby1951.However,theyareusefulinascertaining the lack of the desire by the United States and Britain in pursuing war crimes when compared to the total brought to trial under the Soviets, especially when many of the Nazi forces went to extraordinary means to surrenderinthewestratherthantotheSoviets. Togainfurtherinsightintothefailureofthe4Dsprogramandthefailureofthe4Dsprogramtodenazify Germany,abrieflookattheOSSisrequired.In1941,RooseveltcreatedtheCOIortheOfficeofCoordinatorof Information with Bill Donovan at the helm. The COI evolved into the OSS, the forerunner of the CIA. In

assembling his team, Donovan hired many recruits from Wall Street and the top echelons of major corporations.TheOSSofficersinSpainandSwitzerlandcamefromStandardOil.[10]Followingtheinvasionof NorthAfrica,StandardOilwasnolongerabletosupplyNaziGermanywithoilthroughthisroute.Tocontinue to supply Nazi Germany with oil, Standard began shipping oil through the neutral countries of Spain and Switzerland. ItwasntuntilJanuary28,1944thattheBritishcutoffoilshipmentstoSpain.Thenonlyafterthreeshort monthsonMay2,1944,allowedtheshipmentstoSpaintoresumeaftervigorousprotestsbyFranco.[11] AtthebeginningofNovember1942,HenriHengglerandDavidDuvoisin,theStandardOilbossesinBerne, asked Leland Hansen and Daniel Reagan respectively, minister and commercial attach of the United States, permissiontocontinueshippingNaziOilfromRomaniathroughSwitzerland.Therequestwasmadeunderthe disguise that it was used by the Hungarian and German embassies. The American embassy depended upon Germancoal.[12] Hereisthecruxofthesabotagingofthe4Dsprogram.ManyofthepersonnelwithintheOSSandtheOffice ofMilitaryGovernment(OMG)hadpreviouslybeenconnectedwithcorporationsthattradedwiththeNazisor hadsignedcartelagreementswithGermancompanies.TheproblemwassystematicthroughouttheUSforces inpostwarGermanyandthroughouttheintelligenceforcesduringthewar. ThewriterdoesnotwanttoconveytheimpressionthatallofthecorporateorWallStreetexecutivesthat servedintheOSSoroccupationforcesweredisloyaltotheircountryandusedtheirpositionstotheadvantage oftheircorporation.WhethertheformerStandardexecutivesstationedinSpainandSwitzerlandwiththeOSS playedanyroleintheshipmentofoiltoNaziGermanybyStandardisnotknownwithanydegreeofcertainty andmayneverbeknown.However,inmanycasestherearenodoubtsthatmanyputtheirloyaltytotheirfirm aheadoftheirloyaltytotheircountry.Thesabotageofthe4Dsprogramwaswidespreadandinsomecases canbetracedbacktoCongress,elementswithintheDepartmentofStateorthetopechelonofthemilitary. Even Bill Donovan as head of the OSS and former Wall Street lawyer had ties to I.G. Farben. The reader shouldrecallfromthechapteronthe1920s,thatfilesofTedClark,vicepresidentofDrug,Inc.werewithdrawn fromthepublicshortlyafterDonovanwasappointedtoheadtheCOI.Donovanhadalsoexpressedanopinion thatthecartelagreementswerenotrestrictingthemarket. A brief look at the formation of the OSS reveals much of the nature of the OSS. Perhaps one of the more striking features of the personnel from the OSS was how many of them rose to later positions within the political system (see appendix). The reader should bear in mind that the list in the appendix should not be considered complete. It was complied from a single resource.[13] However, scanning the list reveals that an extraordinary number of exOSS agents obtained positions as ambassadors or within the State Department. Throughout the 1950s and 60s, these exOSS agents had an inordinate influence on foreign policy. Likewise, theyundoubtedlycontributedtotheimagethatourembassiesweremerelyhavensfortheCIA. TheOSShadaroleinforeignpolicyfromtheverybeginningsoftheagency.Sometimesthatrolewasthrust upon the OSS officers. The State Department jealously guarded their domain while abdicating responsibility. One example was in Cairo where the American ambassador to Greece and Yugoslavia exile governments refused to represent the American view at an AngloAmerican planning committee. The American view was thenputforthbyTurnerMcBaine,aCaliforniaattorneyandOSSofficer.Followingthewar,McBainebecamea seniorpartnerinaSanFranciscolawfirmandcounseltoStandardOilofCalifornia.McBainealsoservedonthe AsiaFoundation.In1967,theAsiaFoundationwasrevealedashavingreceivedfundingfromtheCIAandacting asafrontfortheCIA. Inamoresignificantmatter,theOSSofficerswrotetheforeignpolicytowardsThailandduringthewar.At the time, Thailands Minister of Defense was Pibul Songgram, an admirer of Mussolini and Hitler. His main opposition in the Thailand cabinet was Phanomyoung Pridi, an admirer of the New Deal. Pibul soon became Premier of the government and purchased large quantities of arms from Italy and Japan. Pibul created a political and social model based on fascism and when the Japanese invaded Thailand, Pibul ordered the military to offer no resistance and agreed to form a military defensive agreement with Japan. The British regardedThailandasafasciststateandwastechnicallyatwarwithThailand.TheStateDepartmentremained indifferent towards Thailand, not wishing to ruffle English feathers. It was the OSS backing of Pridi and his underground army that led to the creation of the free and independent state of Thailand following the war, despiteBritishobjectionsanddesirestoretaincontroloveraformercolony. Donovanchosehisagentsfromboththeleftandtherightofthepoliticalspectrum.Forinstance,hehired JamesMurphy,formerorganizerfortheIWW,forthelaborunit.InothercaseshehiredmembersoftheLincoln

Brigade that had fought in Spain, knowing they were communist beforehand. These veterans of guerilla warfarewereassignedtoItalywheretheysetupanetworkwiththeirformercomrades.Thegroupprovided some of the best intelligence in the Mediterranean Theater. They also were assigned to France where they couldworkeffectivelywiththelargecommunistfactionoftheresistancemovement.OthermembersoftheOSS refusedtoworkwiththecommunist factionin France orat bestcouldonlygatherhalfheartedsupport.[14] MostoftheleftwingintellectualshiredbyDonovanwereassignedtooperationalorresearchroles,whilethe majority of corporate attorneys and executives were assigned administrative roles. Nevertheless by hiring someagentsfromtheleft,DonovanhadslatedtheOSSfordissolutionfollowingthewar.Additionallybyhiring membersoftheLincolnBrigade,DonovanprovidedfuelforthelaterMcCarthyera. While academia and corporations provided the bulk of the OSS recruits, many members of Americas wealthiestfamiliesprovidedanothersource.AndrewMellonssonPaulservedasadministrativeofficerofthe Special Operations Branch in London. William Mellon, the son of the president of Gulf Oil, served in the SI BranchinMadrid.ThereadershouldonceagainnotetheconnectionofoilandSpain.AnotherOSSagentfrom the Mellon family was David Bruce, whose wife was the daughter of Andrew Mellon. Allan Scale whose wife wasacousintoBruceswifealsoservedintheOSS. TheMellonfamilywasnottheonlyfamilythatwasconnectedwiththeNazisthathadmembersservingin theOSS.MorganstwosonswerebothOSSofficersstationedinLondon.TheduPontfamilyalsohadtwofamily members serving in the OSS. Alfred was one of the top OSS officials in Washington at the French desk. The RockefellerfamilywastheonlyrichfamilywithoutafamilymemberservingintheOSS. Justasthecorporateattorneysandexecutiveswereassignedadministrativerolesandwereinpositionsto make policy, so were the offspring of Americas wealthiest families. For instance, Junius Morgan was OSS Treasurer. WhilethesefamilymembersofsomeofAmericasrichestfamiliesundoubtedlycontributedtowinningthe war,thereisnoquestionthattheyandmanyofthoserecruitedfromWallStreetandthecorporateboardrooms acrossAmericawereresponsibleforsabotagingthe4Dsprogram.Despiteoverwhelmingevidencebytheend ofthewarofcorporateAmericawillinglytradingwiththeNazisduringthewar,notasinglechargewasever broughtagainstanAmericancorporation,norwereanytopNaziindustrialistseverconvictedofwarcrimesat Nuremberg.TheOSSmembersrecruitedfromWallStreetandcorporateboardroomshadintimateknowledge of the cartel agreements and were in the ideal positions to squash any investigations that might lead to the truthaboutcorporateAmericaanditsleadingindustrialfamilies.Theelitewouldbeprotected. While Donovan chose his recruits without regard to their political views, he was not averse to party politics.HisnonpartisanfriendshipwithRooseveltprotectedtheOSS,however,hehadforeseencorrectlythat Thomas Dewey would be the Republican candidate to face Roosevelt in the 1944 election. In anticipation of this,DonovanhadsuddenlyrecruitedalargenumberofformerassistantsofDewey.DeweywasaRepublican andaconservativethatlaterdevelopedahatredofcommunism.Infact,insomecirclestheOSSwasreferredto asthatRepublicanagency. Several of Donovans recruits from the hard right were unable to fit in. Hilaire du Berrier, a hard right journalist,wasinternedbytheJapaneseandlaterrescuedbytheOSS.Afterhisrescue,Donovanrecruiteddu BerrierasanexpertonIndochineseaffairs.Inamatterofmonths,duBerrierlefttheOSScomplainingthatthe leftistswithintheOSShadsqueezedtherightwingoutoftheorganization.DuBerrierlaterbecameawriterfor theJohnBirchSociety. AnotherhardrightrecruitthatwasdroppedwasRalphdeTokdano.DeTokdanohadbeenselectedfora parachute drop behind enemy lines in Italy and was training for the mission at a Virginia mansion. While trainingfortheupcomingmission,deTokdanolabeledhisrepresentative,VitoMarcantonio,asacommunist. TobefairMarcantoniohadstartedpoliticsasaRepublicanwithveryliberalviewsandwaselectedtoCongress in 1935 from East Harlems 20th District. In 1938, Marcantonio defended his seat, running as an American LaborPartycandidate.MarcantonioviewedtheCommunistPartyasanAmericanparty.Hewasalsoastrong supporterofcivilrightsandavigorousopponentofJosephMcCarthy.In1944,hisdistrictwasgerrymandered toincludeYorkville,anareasouthofEastHarlemwhosemajorethicgroupsexpressedhostilitytoleftpolitics and had been a hotbed of support for the Nazis in the 1930s. The WilsonPakula Act of 1947 prevented him fromenteringthemajorpartyprimaries,therebynecessitatinghisrunningsolelyontheAmericanLaborParty lineatatimewhenitwasalmostuniversallyidentifiedasCommunistcontrolled.Marcantoniowasdefeatedin 1950asanothervictimofthespreadingMcCarthyism.RalphdeTokdanolaterbecameacontributingeditorof WilliamBuckleysNationalReview.[15]

Donovanswarriorsoftenexperiencedneedlessdelays.TheStateDepartmentobjectedtoissuingtheOSS officers passports. Mrs. Ruth Shipley ran the State Departments passport division and insisted on issuing passports with the OSS officer clearly identified as OSS.[16] The British Psychological Assessment Board rejectedahighproportionofOSSofficersassignedtowriteantiNazipropaganda.Manyofthoserejectedwere wellknown screenwriters and New York advertising men. The sole reason for their rejection was that they wereJews.[17] WhileDonovanallowedhisagentsafreereigntoconducttheiroperations,theresultofsuchapolicywas manyembarrassingmomentsfortheOSS.Inonecase,OSSofficersinPortugalbrokeintotheJapaneseembassy andstoleacopyoftheenemyscodebook,unawarethatanavalintelligenceteamhadalreadybrokenthecode. TheJapanesepromptlychangedtheircodeafterdiscoveringthemissingcodebook.WashingtonandtheJoint Chiefswerethenleftwithoutavitalsourceofinformationforseveralmonthsuntilthenewcodewasbroken.In anotherhighlevelflap,OSSofficersarmedTitosguerillaswithoutfirstobtainingthepermissionoftheBritish Theater commander. Additionally, OSS officers sent communist agents into Spain without first notifying the American embassy in Madrid. Thus the agents had been left with no contact and had to fend for themselves.[18] InanotherincidentfollowingtheestablishmentofabeachheadatSalerno,agroupofOSSofficersheaded by a young Republican, John Shaheen, hatched a wild plot to reach the Italian Naval Command in hopes of convincingtheItalianadmiralstosurrendertheirfleettotheAllies.Shaheenhadntbotheredtocheckthatthe mainbodyoftheItalianfleethadalreadysetsailforMaltatosurrendertotheBritish.Shaheenlaterbecame presidentofseveralinternationaloilcompaniesandisalargedonortotheRepublicanParty.[19]Shaheenlater becameembroiledintheOctoberSurpriseconspiracyinwhichtheReaganBushteamconspiredwithIranto hold the American captives until after the election. Shaheen was also involved in the Iran/Contra conspiracy.[20]ShaheenhadservedwithBillCaseyintheOSSandhadremainedcloseassociatesthroughout theirlives. Inothercases,theembarrassmentwasmorehumoroussuchasthecaseofanelderlyformerexecutiveof General Electric briefing an OSS agent on his mission. The former GE executive, now a colonel in the OSS, incorrectly pronounced the name of the drop zone, but spent ten minutes searching the map to find the location before an aide indicated that it was several hundred miles north of the area he was searching. In anothercase,theOSSparachutedateamintoBrittanyinasupposedsafezone.Exceptthezoneturnedoutto beinthecenteroftheGermanSecondParachuteDivisionandtheOSSteamspentafewfranticdaysinavoiding theGermans.[21] Oftentimes the OSS engaged in truly ludicrous operations. One OSS operation involved a Hungarian astrologer. The Hungarian was sent to the United States to shake American public confidence of the invincibilityofHitler.AfterreadingtheFuehrersstarstheastrologerpredictedimmediatedoomforHitler.The astrologersreportwascarriedfromcoasttocoastinthemedia. AlthoughtheHungarianastrologersoperationwasborderingontheinane,anotherOSSoperationstands outaboveallothersastrulyridiculous.AnOSSgroupbasedinLondonhadcometotheconclusionthattheNazi State would implode if only its leader could be demoralized. After conducting a long psychological profile of Hitler,thegroupconcludedthatHitlercouldbeunhingedbyexposuretovastquantitiesofpornography.The OSSgroups thenproceededtoassemblythefinestcollectionof pornography everputtogether. The material wastobedroppedbyplaneintheareaaroundtheFuehrersbunkerintheassumptionthatHitlerwouldstep outsideandpickoneupandimmediatelybethrownintoastateofmadness.Theeffortwasinvain,however,as theairforceliaisonstormedoutofthefirstmeetingwiththeOSScursingthemaniacsandswearinghewould notriskasinglelifeforsuchaninsaneplan.[22] In another incident, OSS agent Jane Foster obtained a large supply of condoms from a doctor in Ceylon (nowknownasSriLanka).Fosterandherteamthenstuffedthecondomswithamessageurgingtheresidents ofIndonesiatoresisttheJapaneseinvaders.Theythenblewthecondomsupandtiedtheendshut;submarines thenreleasedhundredsofthesecondomsofftheIndonesiancoast. One of the first hints of sabotaging the efforts to bring Nazis and their supporters to justice occurred shortlyaftertheinvasionofNorthAfrica.CharlesBedeauxwasborna Frenchman andbecamea naturalized American citizen. He accumulated a small fortune in America by devising an antiunion efficiency system. Known as the speed king and hostile to unions, Bedeaux returned to France before the outbreak of war. BedeauxopenlysupportedtheNazisandcultivatedcloserelationshipsbetweenmanyleadingNazis.Afterthe

fall of France to the Nazis, Bedeaux became the Vichy representative of a number of French industrialists in theirdealingswiththeNazis. AspartofhiscollaborationwiththeNazis,BedeauxtraveledtoNorthAfricawithaplantolayapipeline acrosstheSaharafromWestAfricatobringcheapvegetableoilfromDakartoHitlersEurope.Unfortunately fortheenterprisingBedeaux,hebecametrappedinNorthAfricafollowingtheAlliedlandingsinAlgiers.Asan Americancitizen,hecouldhavebeenarrestedfortreasonimmediately,however,Alliedheadquarterstookno actionagainsttheNazicollaborator.EdmondTaylor,anOSSofficer,finallyhadtheFrencharrestM.Bedeaux. Evenafterhisarrest,theAmericanauthoritiesrefusedtochargehimwithtreason. FollowinghisarrestanOSSagent,ArthurRoseborough,aformerSullivanandCromwellattorneyworking with the Gaullists, prepared a case against Bedeaux. Allied headquarters refused to act on the case. The OSS thentookthecasetoWashington.Bedeauxwasfinallyindictedfortreasonbutnotbeforeanoddattemptby theFBItodestroytheevidence.BedeauxwastakenintocustodyandputaboardaplanetotheUnitedStates.In Miami,Bedeauxcommittedsuicidebytakingpoisonundertheveryeyesofhisguards.ManyoftheOSSagents inNorthAfricasuspectedthatagroupofinfluentialAmericansdidnotwantBedeauxtostandtrial.[31]How Bedeaux obtained poison after being held prisoner for months first by the French and then the Americans remainsamystery.

Part 5: The OSS in Europe

In late 1942, Washington received an improbable offer from the Vatican. A high Papal SecretariatofferedtofurnishfirsthandinformationonstrategicbombingtargetsinJapan. The roundabout transfer of documents took only days and became known as the Vessell project.InRome,theprojectwasheadedbyCardinalMonsignorGiovanniBattistaMontini, wholaterbecamePopePaulVI.OntheOSSsidetheprojectwasheadedbyEarlBrennan,a State Department veteran and Republican member of the New Hampshire legislator. Brennan had befriended the leaders of the powerful Italian Masonic Order when he was assignedtotheAmericanembassyinItalyduringthefirstyearofMussolinisrule. Giovanni Battista Brennan had also befriended some of the leaders of the Italian Mafia that had been Montini exiled in Canada. David Bruce, the OSS chief in London and the husband of Paul Mellons (Pope Paul VI) sister,Ailsa,thoughtBrennansconnectionswouldbeusefulandwastheonethatrecruited BrennanintotheOSS. FollowingtheTorchlandingsinNorthAfrica,BrennandecidedtosendsomeofhisagentsintoAlgiersto beginningplanningfortheinfiltrationoperationsofItaly.OneofhisagentswasdeniedapassportbytheState Departmentbecauseofhispastsubversiveactivities.BrennanthencheckedwithMartinDies,thechairmanof the House UnAmerican Activities Committee, as to why the passport was rejected. On investigation, it was determinedthattheagenthadbeenlabeledasasubversivebecausehehadprovidedlegalcounselforaunion strikeinwhichthemanagementhadlabeledascommunistinspired.Oncetheoffendingremarkwasremoved, BrennansagentsthendepartedforNorthAfricainearly1943. Following their departure for North Africa, Brennans remaining staff became occupied with the Vessel project.However,OSSresponsibilitiesforItalianespionagewerepreemptedbytheOfficeofNavalIntelligence. A mysterious deal had been reached with the American Mafia, in which the Mafia agreed to use its criminal syndicateinSicilyinexchangefortheparolingofLuckyLuciano.ThedealwasarrangedbyAssistantNewYork District Attorney, Murray Gurfein. Gurfein would later become an OSS colonel in Europe. Brennan was kept only partially informed of the developments at the insistence of Major George White, director of counterespionagetrainingandaveteranofficialofthefederalNarcoticsBureau.[32]WastheOSSsettingupa drugsmugglingoperationhereastheydidinSoutheastAsia?TheCIAdrugconnectionwillbeexploredinlater chapters. WhilemuchinterestwasputforthontheVesselProject,thesourcewasnevercheckedoutthoroughlyand was proven later to be false with much embarrassment to the OSS. On March 13, 1945 the House military affairs committee announced it was investigating the loyalty of fourteen soldiers who were labeled as communists.AmongthefourteenwasLt.IrvingGoff.Goffhadleftwingsympathiesandhadbeenorderedto make contact with the communist cells after the fall of Naples in late 1943. Once the contact was made, he turneditovertohiscommandingofficer,followinghisorders.TheGoffmissionwastosetupcontactswiththe communist cells in northern Italy and to obtain OSS safe houses. By all standards, the Goff mission was an outstanding success. Some concerns arose in 1945 in military circles that Goffs agents were using the

cland destinenetw worktopass communistp propaganda,althoughno oevidenceof fitsurfaced.Chargesand dcounter chargesflowedb backandfort thbetweent themilitary andtheOSS.Intheend Donovanwa asforcedtoh haveGoff nt back to the United States in June, although no evidence e ever existe ed that they y allowed and his men sen munistpropa agandatoflo owonthenet tworktheyh hadsetup.[130] comm B Byallaccoun ntsofbehindthelinesmissionsinnor rthernItaly,thecommun nistcellswer rethemosta activeand fiercest. Network ks in norther rn Italy align ned under ot ther politica al lines were less effectiv ve and at ma any times tive.Asanex xample,Mussoliniwasca apturedbya acommunist cell.Thepar rticipationofthecommu unistcells inact was crucial for the t success of the last offensive o launched in no orthern Italy on April 1, 1945. This offensive invol lved first a massive m bom mbardment followed f by an assault by b the Fifth Army. A Critica al to the pla ans was a mass siveinsurrec ctionbypartisanforces,m manyofthem marmedand dfirstcontactedbyGoffs sgroup.Over r180,000 parti isanshadbeentrainedb byAlliedforc cestoattack therearofG Germanforce esoncetheo offensivesta arted.The succe ess of the offensive o allo owed Allied forces to drive d into Au ustria ahead d of Soviet forces. f In its s actions, Cong gressriskedt thesuccesso oftheinvasio onandtheliv vesofthousa andsandpro olongingthew warinnorth hernItaly. Dono ovanhaddon nethehonor rablethingin ntheGoffaff fairbystandingbyhismenandseein ngtoitthattheywere awar rdedthemet talstheydese erved. In France Ge eneral de Ga aulles Burea au Central de d Renseigne ements et dA Action (BCRA A) S of schemin ng to weaken n and divide e the underground forces, all for th he accused the OSS efitofGiraud d.TheBCRA tracedthep plottoSwitze erlandandA AllenDulles. Earlyin194 43, bene Dulle es had made e contact wit th Pierre Gu uillain de Ben nouville, a conservative c Catholic onc ce activ ve in right wing w circles. De D Benouville declared himself h a Ga aullist, howev ver, the BCR RA rema ainedsuspici iousduetoh hispreviousm membership pinaGiraudorganization n. H However, on ne additional l hurdle had d to be overcome before e the Norma andy invasio on. Pierre Guillain G de Whil letherewere efactionsinboththeUni itedStatesan ndEnglandt thatpreferre edGiraudover Ben nouville deGaulle,deGau ullehademer rgedasthele eaderoftheFrenchunde erground.Ho owever,befor re l of f Operation Overlord, O ag gents had to be placed inside of Fra ance. In May y 1943, Chur rchill and the launching Roos sevelthadco ommittedthemselves to the 1944 in nvasionplan.However,o onethornrem mainedinth hesideof theO OSS,theBriti ishMI6intel lligenceunit regardedtheOSSasanu upstartjunio orpartner.It twasntuntilMay29, 1943 3,attheurgi ingofDavid BruceandS SIchiefWilli iamMaddox, ,thattheOS SSwasgrant tedequalpar rtnership withMI6. 944theAllie edforceshad dovertakent theJedburghandSUSSEX Xgroupsimp plantedintoF Franceby InOctober19 t Siegfreid d line, Allied d headquart ters was de emanding the OSS and MI6. With Allied forces stalled at the ortsfrominsi ideGermany y.Amazingas sitmayseem m,theOSShadonlyfourmeninside Germany intelligencerepo hetimeofthe eBattleofth heBulge.Th heOSSthenh hadtorelyo onthework ofArthurGo oldbergand hislabor atth bran nch.Asanem mergencymea asure,WilliamCasey,afo ormerWallS Streetattorne ey,wasgiven noverallcon ntrolofall Germ manprojects.Bythe spri ingof 1945, theOSS had dmanagedtoplace150 meninside Germany at suchrail cente ersasLeipzig.[33] W WhileDulles primarymi issioninBernewasGerm manespionag ge,heworke edcloselywithforcesinI Italy.The Alliedarmywoul ldhavebeen ndevoidofan nyGermanin ntelligenceh haditnotbee enfortheSIb branchinIta alyranby Alfre edUlmer,afo ormerFlorid danewspapercorrespond dentandadv vertisingexec cutive.InItal ly,Ulmerhad dsetupa specialsectionto ohandleGerm manAustrianintelligenc ce. D Dulleshadtr aveledtoWa ashingtoninOctober194 44foratopl levelconfere ence.InWash hingtonDulle esmetan attra active Swiss born OSS an nalyst, Mrs. Emmy E Rado, , the wife of a Hungarian n psychiatris st. The reade er should note Dulleswas somewhato ofaladysma anandhads severalaffair rsthroughou uthiscareer. .Mrs.Radop proposed c and Protes stant churches could be used as a base b for Germ man politica al reconstruc ction. She that the Catholic ught the OSS could work k effectively through the e World Cou uncil of Chur rches to aid antiNazi clergymen. thou Dulle esthoughtth heideahadm meritandinv vitedMrs.Ra adotojoinhi iminBerne.[ [34]Aswillb beshownlat terinthis chap pter,reliance eontheGerm manclergyp provedtobeacatastroph hicfailureas swellasem mbarrassingf forDulles andM Mrs.Rado. O his return On n to Berne, Goldbergs G la abor unit wa as being disb banded and absorbed a by y the SI bran nch of the OSS. Dullesentir restaff had beenreplace edduringhistriptoWa ashington.Ru usselldOenc ch,scionoft theGrace ping Line, had h left Lond don and was s now poste ed to Zurich. William Me ellon had be een transferred from Shipp Madr rid to Genev va. Russian migr Valer rian LadaMocarski was now servin ng as liaison officer to th he Italian resis stance. The Russian R mig gr also serv ved on the board b of dir rectors of the e Naziaffilia ated Schroed der Bank, along gwithAllenDulles.[34]

OnVEDay,J.Russell lForgan,theNewYorkfi inancierwho ohadreplace edDavidBru uceasOSSco ommanderin n Europe, subm E mitted his re esignation to o Donovan and a suggeste ed that Allen n Dulles be named n inste ead. Donovan n r refused,decl aringDullesapooradm ministrator.F Forganando otherscontin nuedpressin ngfortheapp pointmento of D Dulles.Instea ad,Donovan dividedthe OSSoperatio onsintosing glecountryo operationsra atherthana centraloffice e a andcontrol.D Dulleswasap ppointedtoh headtheGer rmanoffice. Unliketh heBritish,Wa ashingtonha adfailedtoin ntegratetheO OSSintoplan nsforpostw warGermany y.Manyofthe e O agents were OSS w appoint ted as high level l advisor rs to the mil litary govern nment. More eover Dulles detachmen nt f facedformida ablecompetitionasthere ewerenoles ssthanasco oreofAmeric canintelligen nceteams,re epresentinga a d dozen milita ary and civil lian agencies s, all workin ng at cross purposes an nd searching g for the sa ame strategic c information.TofurtherhindertheOS SSoperation,manyoftheagentswere ebeingsipho onedofftoth hePacific. ing personnel lacked integrity. In th he fall of 19 945, Army investigators s exposed an n Some of the remaini ackmarketo operationinBerlin.The investigationrivaledthe eM&MEnterprisesof Ca atch 22fame e. incrediblebla E Everythingco ouldbefoun ndforaprice,oil,finepor rcelain,cigarettes,etc.Th heoperationwasrunbya anOSSmajor a and captain. None of th he operation nal officers was involve ed; it had been b organiz zed strictly by top leve el a administrativ vepersonnel loftheOSS. In postw war Germany y, the OSS was w burdened d with the denazification d n program. The T military y governmen nt a authoritiesw wantedlistso ofNazioffici ialsthatshou uldbearrest tedorbarre edfromofficeandlistsofrespectable e G Germansthat tcouldbeem mployedinad dministrativepositiondu uringtheocc cupation. Heading the Counter r Intelligenc ce Branch ta asked with interrogating i g Gestapo and Abwehr officers was s A Andrew Berd ding, who la ater served as Assistan nt Secretary of State un nder Eisenho ower. Berdin ng had been n s stationed in London thro ough most of o the war. More M recently, Berdings s name surfa aced in an article a in The e G Guardian ent titledBritain ncouldhave esavedItalia anJews. The e Guardianar rticledetaile edthatMI6h hadadvanced d k knowledge o the Holoca of aust as it ha as broken th he German code c and wa as decoding German rad dio messages s t throughoutth hewar.Inpa articularThe eGuardianlookedatthec caseof8,000 0Jewsdepor rtedfromRom metothegas s c chambers.Th heessential documentw wasinterceptedfromGermanheadqu uartersinIta alytoBerlin onOctober6 6 a andfollowsb below. Orders have h been received r from m Berlin by Obersturmb bannfuehrer Kappler to seize and to o take to northernItalythe8,0 000Jewslivin nginRome.T Theyaretob beliquidated d.[35] A Accordingto thearticle, MI6hadinte erceptedaG Germanmess sageconcern ningthedeportationand dwouldhave e c circulated it to Whiteha all and Was shington by October 11 1. The roun ndup occurr red on Octo ober 16. The e information would have been passed through Andrew A Berd ding before reaching r Wa ashington. It t is unknown n w whentheme essagereachedWashingt tonorwhom mayhaverec ceivedit.Cer rtainlytherewasamplet timethatthe e A Alliescouldh havewarnedtheJewsinRomeofwha atwasinstoreforthem.However,th herewerefac ctionsinboth h W Whitehalland dWashingto onthatignore edmanyofth heatrocitiesoftheHoloc caustlabeling gthemasexaggerated. Eli Rose enbaum, the e director of o the US Justice Dep partment Office of Special Investigation ns, has stated d that a num mber of Nazi officers cou uld have been prosecuted on t thestrength oftheinterc ceptsalone andinpartic a cularSSObe ergruppenfue ehrerKarlW Wolff. D Dulleswasin nstrumental inWolffssu urrenderof Germanforc cesinItaly andinprotec a cting h himfrompro osecutionasawarcrimin nal. Perhaps, the best sum mmation of the t problem ms facing the denazification program was s summed up by the OSS officer, Ster rling Hayden n. Hayden ob bserved that t as allied fo orces Obe ergruppenfuehrer a advancedacr rossGermany y: Karl Wolff There ca ame squirmi ing into the light million ns of antiNa azis. It was tough, t they said, wavingh handkerchiefs sandwringi ingtheirhan ndswithjoy, tohavelived dunderHitle er.But,onlythenight beforeth heyhadheate edwaterthat twouldquicklyyieldthis sdemocratic cdouche.The erealantiNa aziswere deadorinexile,orin nBesden,Aus schwitz,Buc chenwald.Na ameswethoughtatthet timethatwouldteach onwedneve erforget.[36 6] usalesso P Pressed with h incessant demands d fro om the milit tary governm ment for ant tiNazis, Dulles and Han ns Gaevernitz z s seizedtheop pportunityto opromoteth hepoliticalfu uturesoftho osewithwho omtheyhad worked.Gae evrnitzwasa a c collaborator ofDullesin Switzerland andinvolved dwiththem manysocalle edpeaceoffersthatwere ediscussedin n t previous chapter. Du the ulles had on nly one criterion for pro omoting anyo one, extreme anticomm munist views s; f formerNazis werenotex xcluded.

On June 6, Mrs. Rado drove Dr. Wilhelm Hoegner, Dulles handpicked choice, from SwitzerlandtoGermany.WiththesupportofDulles,Hoegnersoonwasinstalledasthe ministerpresidentofBavaria.Hoegnerwasanextremeanticommunistandwouldsoon provetobeanembarrassmenttoAmericanofficials. To continue Mrs. Rados church project, Dulles granted OSS favors to Dr. Stewart Herman,aLutheranministerthathadbeentheministeroftheAmericanChurchinBerlin before the war. Herman had joined the OSS in 1943 as an advisor on German propaganda. After VE Day Herman left the OSS and joined the staff of the World Churches in Geneva. Herman was given the task of rebuilding the Protestant church in Dr. Wilhelm Hoegner Germany. Dulles believed that the church could be used as a bulkhead against communism.Mrs.RadosoonexpandedheractivitiestoincludeaprojectcodenamedCrownJewels.TheCrown Jewels was a project designed to counter the Soviets return to Germany of Walter Ulbrichts, a German communist.RadosobjectwastoreturntoGermanyasquicklyaspossibleotherpoliticalleadersopposedto communism. AsAlliedforcesadvancedbeyondthehedgerowsofNormandyandstartedracingacrossFrancetowards theRhine,DonovanbeganplanningarolefortheOSSafterthewar.Although,theagentsfirstobjectivewas spying on the Axis, he advised them to also begin spying on both Britain and the Soviets. In August 1944 DonovanbeganplanninganoperationthatevolvedintoCaseyJonesandtheassociatedGroundHogoperation. OneofthelargestproblemsAlliedforcesfacedintheirquestforvictorywasthelackofgoodmaps.TheCasey Jones and Ground Hog projects were a joint venture with the British. The operations were ambitious in proposing to photomap approximately 2,000,000 square miles of Eastern Europe, including Albania, Yugoslavia,BulgariaandallofRussianoccupiedGermany. SixteensquadronsofAmericanandBritishheavybombersweremodifiedforthephotomappingoperation. The project did not get underway until the spring of 1945. The American planes carried markings, however, there is evidence that many British planes were without any markings identifying the craft. The purpose of CaseyJonesdidnotescapetheattentionofRussiaandisbelievedtohavebeenbetrayedbytheirspieswithin BritishorAmericanintelligence.TheRussianswerequitesensitiveaboutviolationsoftheirairspace.OnApril 2,1945,GeneralNathanTwining,commandergeneraloftheMediterraneanAlliedStrategicAirForce,reported sixengagementsofRussiansattackingthemodifiedbombersonthatday.InoneencounteraMustangwasshot down,thepilotwasbelievedtobesafe.OnthesamedaytheSovietsgroundedallAlliedaircraftinRussiaand refusedanytoenterorlandwithinitsborders.ThebanwasliftedonlytoallowasingleDC3flighttoshuttle diplomatsandfreightbetweentheUSAAFbaseinPoltavaandtheUkraineandTeheran. InallCaseyJonessucceededinphotographingalltwomillionsquaremilesofEuropeandNorthAfricawest oftheline20degreeslongitude.TherecouldbelittledoubtthattheRussiansknewwhatwasafloatconsidering thesizeandscopeofthemission.Additionally,theSovietswereaskedforpermissionbytheStateDepartment on three occasions to photomap Berlin, Vienna and Prague. The operation certainly increased the tensions betweentheeastandwestinthewaningdaysofthewar.[131] Moreover,neartheendofthewarwhenthenegotiationsweretakingplaceinSanFranciscotoestablish theUnitedNations,Donovanorderedhisagentstoinfiltratethetalksinalowkeyedmanner.Suchanaction wastechnicallyagainsttheOSScharter,astheOSSwasbannedfromoperationinsidetheUnitedStates.Those recruitedforthisjobreliedprimarilyonhostingpartiesafterhours,judgingfromtheliquorbillssubmittedby theagents.HeadinguptheoperationwasEdwardBuxton,alongtimeassociateofDonovansandtheOSS.On April26,1945BuxtonwroteinalettertoDonovanofafrankdiscussionofaconversationbetweenShepherd andStalinandMolotovconcerningYugoslavia.Ashortpassagefromthatletterfollowsbelow:[132] ShepherdrelatedtomethathetoldthemfranklythatheishavingdifficultiesinYugoslaviawherethe prevailing sentiment is that all the brains are in Moscow and all the power in the Red Army, that furthermore, there is a tendency to rely on Soviet only disregarding completely America and Great Britain. MolotovtoldShepherdthattheapproachiswrongandthatalthoughRussiawilltrytohelpasmuchas shecanafterthewarisover,she,Russiaherself,willhavetoseekassistancefromtheUnitedStatesto rebuildthedevastatedcitiesandruinedeconomy,thattheythemselveswillseekloansupto10billions toassistinherpostwarrehabilitation.

Stalin told Shepherd explicitly not to try to imitate Soviet Russia. Yugoslavia is a small country in comparison to Russia and not to carry on experimentation by establishing a Soviet regime, that they will have to get along with western democracies and to arrange a democratic regime where the representativesarenotappointedbutelectedby.[133] Twobitsofsubstantialintelligencelieburiedinthepassageabove.Firstandmostsignificantwasthecondition ofRussia.SuchanadmissionshouldhavebecomeakeytopostwarrelationshipsbetweentheUSandtheUSSR. Unfortunately,themessagefellondeafears.Thefascistrighthadgainedpowerandwasachingforanewwar. ItshouldhavealertedtheUSthatGeneralClayswarwarningmessagetwoyearslaterwasfoolsfolly.Instead the message was lost in the propaganda coming from right wing voices and Clays message was taken as a seriousthreat. ThesecondbitofintelligenceexplainsthegeopoliticalpostwarpoliticsintheBalkans.Yugoslaviadidgo communist under Tito. However, Yugoslavia always remained alienated and independent of Russia. The CIA failedtorecognizethesignificanceofthepowerTitohelduntilafterhisdeathandthecountrycrumbledinto variouswarringfactionsthatpresentathreattothepeaceintheareatoday. ThewriterdoesnotwishtoconveytheimpressionthatDonovanwasabovesuspicion.Hewasnotabove suspicion. It is well known that when Donovan thought the Republicans would have a good chance in the election,hepackedtheOSSwithRepublicanrecruits,earningtheOSSthederisivemonikeroftheRepublican Club.DonovanhadhisowntieswithWallStreetandbigmoney.WhilestillinBuffalo,DonovanrepresentedJ.P. MorganandduringtheNyeSenateinvestigationsofthe30sonwarprofiteeringduringWWI,Donovanwasthe attorneyfortheduPonts.Duringthewarandinitsaftermath,Donovancouldhaveoverlookedtheconnections of his former clients with the Nazis, perhaps in the belief of his former clients innocence. However, the one factor that sets Donovan apart from others in the OSS hierarchy that were connected with Wall Street, like AllenDulles,isthatDonovancertainlydidnotoverlookanythingforpersonalgain.UnlikeDullesandtherestof the OSS hierarchy from Wall Street, Donovan died with only modest means. After his estate was settled, his wifereceivedacheckfortheremainingbalanceofthirtyeightthousanddollars. The academicians within Dulles detachment of Research and Analysis were held suspect by Dulles and theirsuperiors.DonovansuseofthoseonthelefthadalwaysinfuriatedtheFBIandfactionswithintheState Department,aswellassomemembersofCongress.TheFBIfrequentlydemandedthedismissalofmembersof theResearchandAnalysisunit.Astheendofthewarapproached,moreagentswithleftistviewswerepurged. Only weeks before the end of the war in Europe, the House UnAmerican Activities Committee found a red herringintheRussianborneconomist,PaulBaran.OncetheleftistshadbeenpurgedfromtheResearchand Analysisunit,thefocusshiftedtothepreparationforthewar crimestrials.Donovanwasassigned asthe US DeputyProsecutorintheNurembergtrialsuntilheresignedinadisputeoverpolicywiththeChiefProsecutor, formerSupremeCourtJusticeRobertJackson.RalphAlbrecht,aformerNewYorkinternationallawyerandthe OSSassistantDirector,wasalsoontheprosecutorteam. WhilethepurgingofanyonefromtheleftintheOSShinderedtheinvestigationsandprosecutionofNazi warcriminals,itwassettingthestageforthedisbandingoftheOSS.In1944,Donovansubmittedamemoto FDRoutliningthecreationofapermanentAmericanintelligenceagency.Thetopsecretmemosomehowwas leakedtoTheChicagoTribune.TheTribuneprintedaseriesofarticles,writtenbyWalterTrohan,criticalofthe establishmentofapermanentintelligenceagency.TrohanwasaWashingtonreporterclosetoJ.EdgarHoover. Trohan had presented the draft proposal verbatim, even though the document was classified as top secret. Onceagain,nochargesorinvestigationwouldfollow;somefascistsweretoolargetobeprosecuted. ThereadershouldnotethatonceagainTheChicagoTribunewastherecipientoftopsecretdocumentsand publishing any part of the content would be an act of subversion. The Tribune benefactor that provided Donovansmemotothemisknownwithcertainty.ItwasleakedbyJ.EdgarHoover.ACongressionaluproar soon followed led by the same profascist faction that sought to keep America out of the war. At the time Roosevelttabledthewholematter,onlytoreviveitinApril1945;aweeklaterRooseveltdied. No other agency had so much ridicule, embarrassment and criticism heaped on it during the war as the OSS.ThefateoftheOSShadbeenpredeterminedasifithadbeencreatedunderadarkstar.Theembarrassing incidents,criticismandCongressionalinvestigationsallservedasfuelforitsfinaldemise,noneofwhichlayat the heart of the controversy of maintaining an intelligence agency. At the center of this controversy was Bill Donovan,anintenselyloyalandhonestman.Truman,facingincreasingwrathfromtheRepublicanPartyand anuphillelectionfortheDemocratsin1946,hadlittleuseforanagencythathadbeenreferredtoderisivelyas

theRepublicanClubthroughoutthewar.DonovanwasaRepublican,wasnotimmunetoplayingpolitics,and recruitedRepublicansheavilybeforeanelectioninthefirstdaysoftheOSS. On the other hand, Donovan had angered conservatives and Republicans by hiring liberals, socialist and evensomecommunists.FromthedayDonovanwasappointedtothepositionasheadoftheOSS,hehadbut onejob,todestroytheAxiswarmachine,andhewouldhireanyoneabletoaidhiminthatcause.Eveninthe caseofaCongressionalinvestigationlabelingsomeofhisagentsascommunistsintheGoffaffair,Donovandid thehonorablething and stoodbyhismen.They haddoneanadmirablejobinhelpingtodefeattheNazisin northernItalyandDonovanhadseentoitthattheyreceivedappropriatecitationsandmedalsfortheirwork, despitetheCongressionalaccusations.Lessermenwouldhavestoodidlyby.Thereinlaytherootcauseforthe shortlivedfateoftheOSS. Donovan had come with too much political baggage. The reader should recall from the previous chapter thatastheAssistantAttorneyGeneralinthe1920s,DonovanhadalmostcostJ.EdgarHooverhisjob.However Hoover was not the only heavyweight enemy Donovan had made. During the same time, Donovan had approvedacasetogototrialinvolvingSenatorBurtonWheeler.Wheelerwasacquittedofthechargesalleging thathehadusedhisinfluencetoobtainoilandgasleasesforafriendandclient.WhenWheelerreturnedto Washington,hewasembitteredandneverceasedtoattackDonovan.[127] OneofthefactorsinRooseveltsselectionofDonovantoheaduptheOSSwasthatFDRbelievedHerbert HooverhadtreatedDonovanbadlyinpassinghimbyforacabinetposition.HooverhadinformedDonovanthat hewouldhaveacabinetposition,butnotastheAttorneyGeneral.Hoover,however,wouldonlyofferDonovan thepositionofGovernorGeneralofthePhilippines.WhilethepositionwasconsideredthesteppingstoneTaft usedonhiswaytotheWhiteHouse,[128]Donovanrefusedtheposition.Although,amyriadofreasonshave beengivenforHooverpassingDonovanoverforacabinetposition,itseemsmostlikelyduetoDonovansfirst handknowledgeoftheBelgianReliefFund.Thereadershouldrecallfromthechapteronthe1920s,thatthis fund was merely a front to supply Germany with food and prolong the war. Donovan had been one of the investigatorstheUShadsenttoBelgiumtoinvestigatethefund. Donovanslackofadministrationexperience(Donovanwasapooradministrator,ashepreferredbeingin the field) and his opposition to Prohibition were advanced as reasons for being passed over. However, DonovansrecordonupholdingProhibitionwaswellknownfromhisdaysascityprosecutorinBuffalo.There hehadraidedaneliteclubofwhichhewasamember.Thecityfatherswerelessthanpleased,buttoDonovan ifanIrishrailroadworkercouldbearrestedforProhibition,socouldthecityfathers.Thelawwasthelawand tohellwiththecommotion;itappliedequallytotherichwasDonovansview. It is more likely this view of Donovans that caused Hoover to pass him over. Not only did Hoover pass Donovan over for a cabinet position, he wanted to isolate him outside of the United States in case any of Hoovers past dealings with the Belgian Relief Fund or stock swindles surfaced. Donovan would have been a relentlessinvestigator,evenifhewasinvestigatinghisboss. Donovanalso,hadincurredthewrathofHowardTaftby1928.TheformerPresidentandChiefJusticeat that time had written a letter to his son that found its way to Hoovers hand that Donovan would be an unsuitable candidate for Attorney General.[129] Besides these heavy weight enemies, Donovan and the OSS also faced opposition from the State Department and military intelligence units that viewed the OSS as infringingontheirterritory.Facingabundantpoliticalfoes,theOSSwouldbedisbandedshortly. ThefinalblowtoDonovansaspirationstoheadupapeacetimeintelligenceservicecamefromthepenof DrewPearson,thewellknowncolumnist.AttorneyGeneralFrancisBiddlewasengaginginadangerousgame ofpassingsecretdocumentstoPearsoninanefforttodiscreditbothDonovanandtheOSS.OnApril27,1945 Pearsonwrote: By the thread of one mans life hung personal relationships which affected nations. Prime Ministers andpotentates,onceclosetoFranklinRoosevelt,nowmustlearnhowtoget alongwithanunknown gentleman in the White House. Certain ArmyNavy officials, who always knew how Roosevelt would react on this and that, now must do business with a man they once criticized. To illustrate how the pendulumoffatehasswung,herearesomeofthosewhowillmissFranklinRooseveltmost.Gen.Wild BillDonovanoftheOfficeofStrategicServices,sometimescalledtheCloakandDaggerClub,orOhSo Social,willmissRooseveltterribly.Donovanranthegiantespionageoutfitwhichtriedtofindoutwhat wasgoingonbehindenemylines,andhehadaccumulatedthemostbizarreassortmentoffemalespies, socialregisterbluebloodsandantiRoosevelthaterseverseeninWashington.Asanoldpersonalfriend,

Rooseveltgavehimfreereign[sic],includinggrandioseplansforapostwarespionageservice.Truman doesnotlikepeacetimeespionageandwillnotbesolenient.[134] AfewdayslaterPearsonwrote: theRussiansareprobablymostsuspiciousofthemysteriousUnitedStatesespionageorganization called OSS. The OSS, or Office of Strategic Services, has, strangely, distributed some of the most powerful bankers representatives in the USA at key points where they can influence United States policyinoccupiedGermany. TherosterofOSSmenwhohavebeenorareoperatinginEuropereadslikeabluestockinglistofthe first60families.Itincludes:PaulMellon,sonofAndrewMellon;JuniusandHenryMorganoftheHouse of Morgan; Alfred du Pont, Lester Armour of the Chicago Armours, Gordon Auchincloss, John Auchincloss, Warwick Potter, Harold Coolidge, William Van Allen of the Astor family, and Allan [sic] Dulles,attorneyforvariousinternationalbankerswithpreviousconnectionsinGermany. Someofthesemaynotdeservethesuspicionfocuseduponthem.Butothersmorethanmakeupforit. Andanyonelisteningformorethan30minutestotheirconversationaboutthenextwarandbuilding upGermanyasapartnerinthatwarcanunderstandwhytheRussianswronglyaccusedusofadealto permittheAmericanArmytoenterBerlinfirst. This is the kind of underlying suspicion which must be killed immediately and permanently if the machineryofSanFranciscoistobringaboutpermanentpeace.[134] AstheworlddiplomatsweregatheringinSanFranciscotoformtheUnitedNations,PearsonchargedDonovan withplanningawaragainstRussia.InrealitynoplansforwarwiththeSovietswasmadeuntilMarch1946. EventhenthePincherserieswerenotrealwarplans.ThefirstformalwarplanagainstRussiawasfirststarted onJuly29,1947.Pearsonwasnotconcernedwiththetruthofthesituation.However,hisbroadcastconfirmed theworstfearsoftheSovietsandonlyfannedtheirdistrustoftheAlliesfurther.Excerptsfromthebroadcast followbelow: Washington: General William J. Donovan, Office of Strategic Services, has just received from his overzealousaidesadetailedplanforAmericanwaronRussia.IamsurethatGeneralDonovanhimself andthemoreresponsiblemembersofhissuperspyorganizationhadnothingtodowiththeseplans, but I suggest that stupidity like this which, if it leaks to me, will also leak to others, including the Russians,causesdistrustbetweentheAlliesjustaswearetryingtoendthiswarandbuildupaplanto endallwars. A series of secret cables sent by General William Donovan, of the Office of Strategic Services (nicknamedOhsoSecret),toRussellForgan,formerChicagobanker,nowinParis,isintriguingother US officials. Donovan wired Forgan to interrogate directors of the giant Nazi cartel I.G. Farben, now seizedbytheUnitedStatesArmy. This is the company which collaborated with Standard Oil of New Jersey and the Aluminum Corporation of America to keep vitally important patents for synthetic rubber, magnesium, and high octanegasolinefromtheAmericanpublicatatimewhenitwasessentialtousethosepatentsforwar. OnecablefromDonovantoForganinParisreads: IhavealreadyaskedyoutosendnamesofI.G.Farbennowincustody.Fromnowonthesemenshould be kept from one another, particularly when the interrogation begins. Files of I.G. Farben should be seizedandsenttoParisatonceinourcustody.Thisismostimportant.Essentialthatwekeepcontrolof thesemen. WhatintriguesotherUSofficialsisthatDonovansOSSisdominatedbyactionsoftheMellons,theJ.P. Morgansandbigbankingandindustrialhouses,someoftheminterestedinGermanpatents.Other Government officials are also puzzled as to why the OSS, rather than the Justice Department, should pounceuponI.G.Farbenexecutives.Theremightbequietprobingofthis. NoteAttorney General Biddle recently told senators: Many cartel arrangements necessarily disrupted during the European phase of the war are now being resumed. Meetings have been held, planshavebeenheld,planshavebeenlaid[sic],andinsomecasesagreementsalreadyenteredinto.As to some of these agreements, my department will have something to say before long. Reaction of Senatorsisthatbigbusinessneverlearns.[134]

ThequotedtelegramwasalmosttheexacttextofasecretsignalsenttoDonovan.IthadbeensenttoDonovan onApril30,1945overtheultrasecureTelekryptioncircuit.DonovanonceagainsignedDoeringtoinvestigate the leak. All evidence pointed towards Biddle, however, no charges were ever filed. The reader however, shouldnotewithinteresthowsoonafterRooseveltsdeaththatBiddlepassedthisinformationtoPearson. On September 20, 1945, President Truman issued an executive order disbanding the OSS. The OSS organization was then dispersed among other agencies. The Secret Intelligence and Special Operations branchesweretransferredtotheWarDepartmentandplacedunderthecommandofformerOSSGeneralJohn Magruder. This was nothing more than a caretaker body to dismember the unit. Magruder resigned in February1946,protestingthewholesaledismemberingofhisunit. TheResearchandAnalysisbranchwastransferredtotheStateDepartment,headedbyAldredMcCormack, aNewYorkcorporationlawyer.CongressionalcriticsoftheOSSsimplydecimatedMcCormacksbudgetwith the help of current State Department officials. The Assistant Secretary of State for Latin America, Spruille Bradenledthechargetodisbandthegroup.InfrontofaCongressionalcommittee,Bradenstated: We resisted this invasion of all these swarms of people mostly collectivists and do gooders and whatnots.[37] Thereadershouldbeawarethatlaterinthe1950sBradenbecameadevoteeoftheJohnBirchSociety. InMarch1946whileMcCormackstruggledforfundingfromCongress,thechairmanoftheHouseMilitary Affairs Committee charged that persons with strong Soviet leanings had joined the State Department. McCormackdemandedaretraction.Instead,Congresscuttheentireappropriationforhisunit.Theprofascist factionwithintheStateDepartmenthadconvincedenoughinfluentialCongressmenthatexOSSofficerswere fartotheleftandcommittedtoasocializationofAmericaandtheredistributionofwealthonaglobalbasis. By mid 1946, Donovans OSS had been completely dismantled. The United States would be without an intelligence service. At first, it was suggested that private enterprise could provide the government with intelligence.AformerOSSDeputyDirectorproposedtoWatsonofIBMtheformationofaprivateintelligence service. The two men raised the initial venture capital. The venture was in vain as President Truman and CongresscreatedtheCIAin1947. In the short space of two years, the government had dissolved the OSS only to recreate it under a new name. This wasnt a case of a government that didnt know which way to go. If President Truman had not signedtheexecutiveorderdissolvingtheOSS,Congresswouldsimplyhaveeliminatedanyfundingforitasit didtotheremnantsofitintheStateDepartment. ThedisbandingoftheOSShadanexpresspurpose.TheleftistswithintheOSSwouldserveasthesacrificial lambs to atone du Ponts new feckless goddess on the altar of free enterprise. Those that had served their country gallantly during war and that were dedicated to stamping out the last vestige of fascism would now become victims of the fascists within the United States. The American industrialists that willingly supported Hitlerduringthewarhadtobeprotected. Thepoliticalclimatebythewarsendhadundergoneatremendousshifttotheright.Thechangewasnot abrupt.ThroughouttheRooseveltadministrations,eachsuccessiveadministrationwasmoreconservativethan the preceding one. In 1944, Truman replaced Wallace as the vice president. In 1946, the Republicans gained control of both chambers of Congress. The stage was now set for a wholesale purging of the government of leftiststhatwerededicatedtowipingoutfascism. ThenewCIAwasamixtureofoldOSSagentsandmilitaryofficers.TheoldOSSveteranssoonbecamethe dominating force within the new agency. The CIA was created with two principal divisions: Office of Policy Coordination(OPC)andtheOfficeofSpecialOperations.FrankWisnerandAllenDullesheadedupOPCbranch. TheSpecialOperationsdivisionwasheadedupbyJamesAngletonandWilliamHarvey.ThenewCIAhadbut oneagenda,anticommunism.ThefourthdirectoroftheCIAappointedbyTrumanwasGeneralWalterBeddle Smith.SmithinallseriousnessoncewarnedPresidentEisenhowerthatNelsonRockefellerwasacommunist. The new CIA was being led by three individuals that harbored no qualms about working with Nazi war criminals.Angleton,DullesandWisnerallworkedwithandhelpedNaziwarcriminalstoescapefromEurope. Many immigrated to the US after having their records sanitized by Dulles and others within the intelligence community.AmoredetailedlookattheuseofNaziwarcriminalswillbethefocusofthefollowingchapter. Inaddition,theCIAwasgiventheexclusiveresponsibilityforintelligenceinSouthAmerica;beforetheFBI held this responsibility. Given Hoovers propensity and ambitions to protect and expand his domain, the FBI

remainedcoolifnotfrigidinitsdealingswiththenewagency.InfactinsomeSouthAmericaembassies,theFBI agentstheredestroyedtheirrecordsratherthangivethemtotheCIA. AlthoughtheCIAhadbeencreatedinapurgetoeliminateallleftistsfromtheintelligenceagency,itwould soonfeelthewrathofMcCarthyism.Loyaltyoathswouldsoonfollow.Onceagainafterawar,Americawould embarkonaredscare.TheresultingColdWarwouldserveasasmokescreentocoverupthecrimesoffascists withintheUnitedStates.NoAmericancorporationwouldfacechargesoftradingwiththeNazis.Nonewould be even charged. Dulles was adamant on that point. He had used his post in Switzerland to protect his own dealings with the Nazis and those of his clients. He was now in a position to further protect those American corporations that had willingly supported and traded with the Nazis during the war. Roosevelts pledge to bringallwarcriminalstojusticehaddiedwithhim.

Part 6: The Nazis Plot a Comeback

IntheprecedinghistorypresentedthusfaroftheUNWCCandOSS,onlyafewexamplesofoutrightsabotage weredetailed.Theremainderofthischapterandthefollowingchapterwillnowfocusonspecificexamplesof activebetrayalandsabotageofRooseveltspledgetothecountryofbringingallwarcriminalstojustice. ThepreviouschaptershaveexposedanactiveongoingeffortbyfactionswithintheUStosabotageFDRs policiestowardGermany.WithRooseveltsdeath,thoseeffortstosabotagehispledgetobringallwarcriminals tojusticewouldaccomplishthatgoalinthespaceoflessthanayear.Thefirsteffortcamealmostimmediately afterFDRsdeath.OnApril25,1945,DrewPearsonreportedinhiscolumnthatRooseveltsplanforpostwar GermanyhadbeendroppedinfavorofasoftpeaceforGermanybyaninsidegroupofmilitaryplanners.This small circle of military planners included representatives of big business who had served in the military planninggroupsduringthewar.[38] Instead of Roosevelts plans for postwar Germany, the group had adopted former President Herbert Hooversplanforacoolingoffperiodandasoftpeace.Thereadershouldrecallfromthechapteronthe1920s thattheHooveradministrationwasinstrumentalinhelpingI.G.Farbeninreestablishingitscartels. On May 16, 1945 Stimson warned President Truman about the likely pestilence and famine in Central Europe, which would be followed by a communist uprising. Stimson hoped Truman would appoint Herbert Hoovertoreviewthereliefsituation.StimsonwassureHooverwoulddemandtherevitalizationoftheGerman economyandindustrialbase.WritinginhisdiaryaboutHoover,StimsondeprecatedFDRandMorgenthauand referredtoHooverasamasterofthesubjectandFDRandhisadministrationasamateurs.[140] StimsonsdiaryrevealshowdeeptheoppositiontoRooseveltandahardpeaceforGermanyran.Truman didappointHoovertotourEuropetoseekoutasolutionforrelief.However,asweshallseeinthenextchapter, HooverusedthetourtoenrichhimselfmuchasheusedhispositionduringWWItoenrichhimself.Moreover, onecanbecertainHoovervacuumedEuropeforanyincriminatingevidenceofhiseffortstoprolongtheFirst WorldWarandhisinvolvementwiththeNazis. Withinafewmonths,thisgrouphadfoundapoliticalplatforminthevoiceofayoung StateDepartmentofficial,GeorgeKennan.Inearly1946,KennansmemorandumonSoviet foreignpolicyhadattractedthegroupsattentionandwasconsideredsohighlythathewas recalled to Washington to act as the State Departments deputy in the newly formed War College. Kennans formula for rebuilding Germany as a bulwark against the East was soon adopted.AllsubsequentdecisionsbyleaderswithinthePentagonandtheStateDepartment George Kennan were based on Kennans premise. The last ditch attempt to compromise between a one sidedproGermanypolicyandourrelationwiththeSovietswasmadebySecretaryofStateByrnes.OnOctober 3,1946,heproposedaprogramofAlliedcontroloverallofGermanyforaperiodof40years. Byrnes plan for a peaceful relationship with the Soviets was opposed by the policy shapers inside the Pentagonas wellasby a large factionwithinthe StateDepartment.In1947,Byrnes wasreplacedbyGeorge Marshall. Under Marshall the policy shaping apparatus of the State Department was placed in the hands of Kennan. With the top echelon within the State Department and the Pentagon now in the hands of proGermany adherents,theUSwaspoisedtorushheadlong atfullthrottle intotheColdWar.Ourformer allyagainstthe Nazis was now our enemy. Denazification of Germany was dead; there would be no more trials of Nazi war criminals,noinvestigationsofcorporateAmericaanditssupportoftheNaziregime.ThenativeNaziswithin Americahadwon;theircrimeswouldbesweptundertherug.

KennanwasaGermanophile,havingstudiedatHeidelbergandatthe Hochschule fuer PolitikinBerlin.He hadbeentaughtandbelievedintheteachingsoftheHochschulethatGermanywasabulkheadagainsttheEast. KennanhadpostedgraduateworkinfourGermanuniversities:UniversityofHeidelberg,UniversityofBerlin, OrientalSeminaryandthe Hochschule fuer Politik.Alloftheseinstitutionswerewellknownfortheirextreme panGermanviews. KennanhadbeeninternedwithotherdiplomatsintheGrandHotelinBadNauheim,GermanywhentheUS entered the war. During his internment at the Grand Hotel, he gave lectures in which he expounded on the thesisthatGermanysdefeatwouldextinguishthe2000yearoldhistoryofEuropeancivilization.Thereader should ask themselves what kind of US diplomat would deplore the defeat of the Nazis in 1942 after the ruthlessattackonPearlHarbor.BeinginBerlin,Kennansurelywasprivytothegenocidebeingconductedin Poland,yethedeploredthedefeatoftheveryregimethatwasgivingnewmeaningtobarbarianbehavior.The Germannewspaper,DerSpiegelconfirmedthatKennandidlecturehisfellowinmatesattheGrandHotelabout theundesirabilityofthedefeatoftheNazisin1942.[39] There were many officials inside the State Department and highranking military officials that shared Kennans geopolitical theories of General Haushofer that led to anointing Kennan as the leading Cold war theorist. Unfortunately Kennans premise was a house of cards built on lies and deceit. By 1945 the State DepartmenthadampleevidencethattheGermanHighCommandhadmadeextensiveplansforacontinuation of political warfare against the Allies after a military defeat. The State Department had files detailing how GermanauthoritieshadlaidthegroundworkforcontinuingtheactivitiesoftheNazisinforeigncountriesand thepreservationoftheGermancartels.TheStateDepartmentalsohadfilesdetailingthecontinuationofNazi scientificresearchinforeigncountries. Aswehaveseeninpreviouschaptersandsofarinthischapter,theStateDepartmentwasdividedbetween thosethatfavoredaharshpeaceandtheprofascistfactionthatpromotedaneasypeace.Bytheendofthewar, manyofthosethatopposedfascismvigorouslyhadbeenremoved.TheStateDepartmentwasnowinthehands of the fascist sympathizers. The State Department was bursting at the seams with incriminating documents detailingtheNazisplanstocontinuethewaroncehostilitiesended.Excerptsfromtwooftheannouncements by the State Department and one from a captured Nazi document confirms it was well aware of the danger posed by the Nazis following the end of hostilities follow. The reader should view the full text of these announcements;additionalcapturedNazidocumentsaregivenintheappendix. Nazi party members, German industrialists and the German military, realizing that victory can no longer be attained, are now developing postwar commercial projects, are endeavoring to renew and cement friendships in foreign commercial circles and are planning for renewals of prewar cartel agreements. An appeal to the courts of various countries will be made early in the postwar period throughdummiesforunlawfulseizureofindustrialplantsandotherpropertiestakenoverbyAllied governments at the outbreak of war, In cases where this method fails, German repurchase will be attempted through cloaks who meet the necessary citizenship requirements. The object in every instance will be to reestablish German control at the earliest possible date. German attempts to continue to share in the control and development of technological change in the immediate postwar period are reflected in the phenomenal increase in German patent registrations in foreign countries duringthepasttwoyears.Theseregistrationsreachedanalltimehighin1944.Theprohibitionagainst exportingcapitalfromGermanywaswithdrawnseveralmonthsagoandasubstantialoutflowofcapital hasfollowedtoforeigncountries. Our investigations have yielded a considerable amount of information which indicates the schemes anddeviceswhichtheGermansplannedtouseinordertosafeguardtheirforeignholdingsandtransfer additional property abroad. In many cases, they have concealed their interests in foreign properties through holding companies as cloaks. In other cases they have abandoned formal voting control, but retainedafirmgriponmanufacturingconcernsthroughdominationoftechnicalprocesses.Theyhave transformedtheirholdingsintobearersharesinordertotakeadvantageofthefactthatthetitletosuch sharescanbetracedonlywithextremedifficulty.Moreover,theGermanshavealsotakenadvantagein somecountriesofadministrativeinefficiencyandcorruption.Theextenttowhichthisreachescanbe saidineveryneutralcountrytohavebeenthefaultofprivateindividualsaloneisproblematical. OnJuly27,1943,theGermanForeignOfficeexpertontheUSA,thegeopoliticianDr.ColinRoss,suggestedina fifteen page memorandum a Plan for an Ideological Campaign in the United States. Recognizing Germanys

inability to bring the war to a victorious end, Dr. Colin Ross proposed the immediate implementation of a carefully planned psychological warfare to undermine the anticipated US military victory. Dr. Ross regarded American public opinion as the weakest link because the American people seemed especially susceptible to scare propaganda hinting that a defeated Germany would join the ranks of Bolshevism. The memorandum, which was addressed to the German Secretary of State in the Foreign Office, von Steengracht, became the guidepostforGermanyshighlysuccessfulblackmaildiplomacyinpostwarAmerica.[40] ThereadershouldnoteinparticularthepassagesreferringtoGermancorporations.Thesepassagesonly confirm the German concept of total warfare outlined in the chapter of the 1920s and the success and quickness with which the cartels were reestablished following the end of WWI. Moreover, as confirmed in thesedocuments,planswereafootatanearlydatetoreestablisheconomiccontroloncethewarended. Thereadershouldpayparticularattentiontothedateofthethirdexcerptabove;itcoincidesexactlywith thedesperatethreeprongattackofnativefascistswithintheUnitedStates,asdetailedinthepreviouschapter. Further,thedocumentsintheappendixconfirmthatNaziagentswerewellplacedwithintheUnitedStatesto affectthepoliticaldoctrineandpolicy. TheintentoftheNaziscanbestbesummarizedbyanexcerptfroma1944Frenchweekly Combatwritten byGeneralvonStuepnagelinanalyzingthecausesforGermanmilitarysetbacksinWWII. In the next war, which should take place within 25 years, the same mistake must not be made. The principal adversary will be the United States, and the entire effort must be concentrated against this country from the beginning. Our defeat in the present war need not be considered except as an incidentinthetriumphalmarchofGermanytowardstheconquestoftheworld,andfromnowonwe mustgiveadefeatedGermanythespiritofafutureconqueror.Whatdoesatemporarydefeatmatterif, through the destruction of people and material wealth in enemy countries, we are able to secure a marginofeconomicanddemographicsuperiorityevengreaterthanbefore1939?Ifwecansucceedin doing this, this war will have been useful, since it will enable us, within the next 25 years, to wage anotherwarunderbetterconditions.Ourenemieswillgrowwearybeforewedo.Weshallhaveto organizeacampaignofpitydesignedtoinducethemtosendusneededsuppliesattheearliestpossible moment.Aboveallwemustholdontotheassetswehavedepositedinneutralcountries.Thepresent warwillthushavebeenvictorious,inspiteofourtemporarymilitarydefeat,becauseitwillhavebeena marchforwardtowardsoursupremacy.Wehavenottofearconditionsofpeaceanalogoustothosewe haveimposed,becauseouradversarieswillalwaysbedividedanddisunited.[41] ThereisnomoredramaticevidencethattheStateDepartmentsplanofaGermanbulkheadagainsttheSoviets and the resulting Marshall Plan were written in effect by the Nazis. The writer is not implying here that MarshalloranyparticularindividualwasaNazi.However,theStateDepartmenthadreamsofcapturedNazi documentsandwaswellawareofthepostwarplansoftheNazileadershiptocontinuethewareconomically and psychologically. Yet the State Department embarked on a course that could not have please the Nazi leadership more. The Nazi psychological warfare campaign had been extraordinary successful in playing the UnitedStatesforabunchofsaps. While the State Department was right in opposing the Soviet Union or any other totalitarian form of government,pushingtheworldtowardsthebrinkofanuclearholocaustwasfoolhardyatbest.Moreover,as welearnedlaterinthe1960sand1970s,detenteandtradeweremoreeffectiveweaponsagainsttheSoviets. By pursuing a path of belligerence rather than peaceful coexistence, the US forced the Soviets to arm themselvesandtheirEasternEuropeansatellitestothenthdegree.TheMarshallPlanwaseffectivelythefirst programthatwouldpropeltheworldtowardsnuclearbrinkmanship. Evidence of the Nazis trying to split the Allies was abundant. In fact, captured Nazi documents prove it. ThosedocumentsrevealthattheGermanHighCommandchanneledproofabouttheirsecretnegotiationswith Americans to Stalin through agents who were in contact with von Papen. The reader should recall from the previous chapter the number of these secret negotiations and the similarity of the terms in all of them. The Americansthathadengagedinthesesecrettalkshadbeenplayedaseitherabunchoffoolsorwerepartofthe Naziruse,includingAllenDulles.[45] Besides the reams of documents that the State Department had acquired, the press reported additional proofontheestablishmentofaNaziundergroundnetwork.OnDecember13,1944,anAssociatedPressarticle reportedthatHimmlerhadstartedplansforanundergroundnetwork.Thearticlefurtherclaimedthatmany party members had established double identities and that the aim of the propaganda was to drive a wedge

betweentheAllies.TheevidenceofaNaziundergroundnetworkandescaperouteswasextensivebylate1944. Evidenceforsuchanetworkbeganemergingasearlyas1943.TheNazismadegooduseoftheiroccupationof FrancebysendingcarloadsoffilesandsecretformulasoverthePyreneestoneutralSpain.BurnetHershey,the foreigncorrespondentoftheHearstpressfirstreportedtheGermanescaperoutethroughSpainonJanuary25, 1943.Anexcerptofhisstatementfollows: Every talk I had with the Germans in Lisbon made that fact clear. They may be defeated on the battlefield,astheywerein1918,buttheyexpecttowinagainatthepeacetableasin1919.Ofcourse, theywillsacrificeHitlerastheysacrificedtheKaiser;buttheoldgangthegenerals,bigindustrialists, phonyprofessorsofmiseducationaboutGermanracesuperioritywilltrytogoundergroundagainto laytheeggsforanotherwarofGermanconquest.[42] A year later, on January 17, 1944 Harold Denny, of the Times confirmed the early report in the following dispatchfromMadrid. Heavynew increments ofGerman agentshave beenpouring intoSpaininrecentdaysin an obvious effortbyGermanytosavewhatshecanofasituationthathasgonebadlyagainsther. AthousandGestapoagentsandotherGermanrepresentativeshaveappearedinMadridaloneinthe pastfortnight.SignificantadditionstotheGermanpopulationhavebeennotedinotherpartsofSpain. Theyarenoteasytodealwith,forGermanyhasextensivecommercialinterestsinSpainandmanyof these agents are here in the plausible guise of executives, technicians and lesser employees of these interestsaswellascogsinGermanysvastdiplomatic,consularandpropagandamachinery.[43] OnApril13,1944,TheNewYorkHeraldTimescarriedadetailedreportofrecordsfromtheBritishIntelligence Service and the American Alien Property Custodian of the huge sums placed by high Nazi officials and industrialists in neutral and American banks. On July 19, 1944 the Office of War Information reported that Swiss officials were alarmed about the huge sums recently transferred by Germans to Swiss and Portuguese banks. They were concerned that the sums would be used one day to finance the resurrection of the Third Reich. On October 19, 1944, Newsweek reported that according to diplomatic sources from Buenos Aires, German technicians and military experts were believed to be reaching Argentina incognito. On January 15, 1945,Newsweekdeclaredthefollowing: Many of the men Himmler sent to Spain and Argentina to carry out Nazi plans for postwar survival, carriedpassportsunderfalsenamesandlatterwerereporteddeadinGermany.Allhavehadtrainingin Nazipoliticalmethodsandexperienceabroadincommercialandotherposts.[44] Infact,thenamesofmanyofthosedeposedasplottersinthefailedattemptonHitlerslifewerelaterusedas false identities for escaping Nazis. The previously quoted documents about the Nazis planning a comeback wereconfirmedbyaReutersNewsWireofSeptember14,2000.Thenewdocumentwasreleasedunderthe Freedom of Information Act from an inquiry by the World Jewish Congress concerning looted money and property. The document confirms a meeting took place at the Maison Rouge (Red House) in Strasbourg, occupied France, on August 10, 1944. During the meeting an SS general and a representative of the German armaments ministry told such companies as Krupp and Roehling that they must be prepared to finance the Nazipartyafterthewarwhenitwentunderground.ADr.Scheid,anSSgeneralanddirectorofHermsdorff& Schonburg Company presided over the meeting. Seven German companies including Krupp, Roehling, Messerschmidt,andVolkswagenwerkandofficialsoftheministriesofarmamentsand thenavyattendedthe meeting. The SS general informed them they must prepare themselves to finance the Nazi party when it went underground.AdditionallyGermanindustrymustmakecontactsandallianceswith foreignfirmsandlaythe groundwork for borrowing considerable sums in foreign countries. The SS general cited Krupps sharing of patentswithUScompaniessothattheywouldhavetoworkwithKrupp.Thethreepagedocumentwassent from Supreme Headquarters of the Allied Expeditionary Force to the US Secretary of State in November 1944.[79] ItisclearfromtheabovethattheStateDepartmenthadaclearideaastotheintentoftheNazisfollowinga cease in hostilities. Even the press was full of articles reporting on Nazi escape plans. Likewise the papers, particularlythosethatalignedthemselvesbeforethebreakoutofwarasprofascist,beganapropagandablitz ofaneasypeacewithGermany.ThepressclaimedRooseveltscallforanunconditionalsurrenderwasdelaying the end of the war and in fact worked itself into the election campaign of 1944. Despite this barrage of

propaganda, which may very well have been instigated by the Nazis, as previous documents above suggest, therewerethousandsofarticlesandeditorialsagainstanyappeasementofGermanyandtheNazis.Atthepeak ofthissympathycampaignforaneasypeaceMajorGeorgeFieldingEliotwroteinthe Herald TribuneonJune 27,1945: WhyshouldnttheGermanstandardoflivingbelowerthanthatofGermanysneighbors?Sincewhen hasitbeenconsideredanobligationofcivilizedsocietytoseetoitthatacriminal,inthecustodyofthe law,mustenjoyeveryprivilege,everyluxuryandeveryarticleofLucullandietwhichmaybeavailable tothelawabidingmembersofthecommunity?[46] Later when Roosevelts Occupational Directive 1067 was published, it had the full support of the American people.Thisdirectivehadbeenkeptsecretbythemilitarycommandformonthsbecauseitrancountertotheir program.TheessentialobjectivesoftheAllieswerestatedasfollowsinDirective1067: TheprincipalalliedobjectiveistopreventGermanyfromeveragainbecomingathreattothepeaceof the world. Essential steps in the accomplishment of this objective are elimination of Nazism and militarism in all their forms, the immediate apprehension of war criminals for punishment, the industrial disarmament and demilitarization of Germany, with continuing control over Germanys capacity to make war and preparation for eventual reconstruction of German political life on a democraticbasis.[46] Duringthe war,theAlliessolemnly agreedtoremove alltracesofmilitarismandNazismtoinsureGermany wouldneveragainwagewarontheworld.AtPotsdam,theAlliesagreedtoabolishallveteransorganizations andallothermilitaryclubsandorganizations.Thefailuretopursuethe4Dsprogramvigorouslyandtofollow the Potsdam agreement led to additional problems for the occupying forces. The ink was hardly dry on the Potsdam agreement before SS and Wehrmacht officers began setting up a close knit society under their American captors eyes in the prison camps. The Bruderschaft (Brotherhood) organization flourished behind theprisongatesandwassoonlayingplansforaNazicomeback. Duringthefirsttwoyears,the Bruderschaftoperatedintotalsecrecy.Theinnercirclewasmadeupoftop SSofficersandimportantofficersfromtheGeneralStaff.AmongtheleaderswereLt.Gen.HutvonManteuffell, formercommanderofthePanzerGrossDeutschlanddivision,AlfredFrankeGrieksch,ahighrankingSSofficer, andGottriedGriessmayer,theformerheadoftheHitlerYouth.Theorganizationwaswellfinanced,reaching acrossGermanyandextendingintoItaly,SpainandArgentina.

Part 7: The Control Council of Germany

The question of German remilitarization first came up in a suggestion by Adenauer for a united Europe defendedbyanintegratedEuropeanArmy.In1948,AdenauersubmittedarequesttoUSauthoritiesinsecret torearmtwentyfivedivisions.TherequestwasexposedonJuly30,1948inanarticlein US News and World Report.[105] TheoutbreakoftheKoreanWarinJune1950broughtaboutatotalchange.Allprovisionsbanningmilitary groups were no longer enforced. West Germany was allowed to set up its own General Staff, camouflaged under the name Blank Office. Supported by Bonn and the United States, a network of exNazi officers was created to reactivate Germanys militarization. The man behind the plan for remilitarization was Dr. Werner Naumann. With his old party connections from the Propaganda Ministry, the SS, the Wehrmacht and the Bruderschaft,Naumannemergedinapositionofpower.Naumann,however,wasstilladevotedNaziandcan be credited with the directing spirit behind almost every Nazi organization and publication that arose in the 19501951period. One of the outgrowths of this rush to rearm Germany was the creation of the Bund Deutscher Jugend (Association of German Youth). Membership in the group rose to 22,000. However, behind this group lay a sinistersecretdivisionoftrainedsaboteursandassassinationsquadslabeledtheTechnicalEmergencyService. This guerrilla army was staffed by several thousand Wehrmacht and SS officers. They had been trained and equippedbyUSagencies,theBonngovernmentandafewGermanbusinesses. ThisNazigroupwouldhaveremainedlostinhistoryamongthehundredsofotherNazigroupsinpostwar GermanyifithadnotbeenforPresidentoftheStateofHesse,AugustZinn.In1952hepubliclychargedthatthe grouphaddrawnupablacklistofprominentpoliticianstobeassassinatedinanemergency.Enoughevidence wasproducedtothedismayoftheUSHighCommissionertoshowthatalargescalepoliticalassassinationplot hadbeenhatchedinthestyleofthefreecorps.TheOctober10,1952editionofTheNewYorkTimescarriedthe

story.SimilarplotsandillegalactivitywasfoundbehindotherNazigroupssuchasthe Freikorps Deutschland, theBewegungReichandscoresofothersmallergroups.[106] In 1952 five members of a secret Hitler Action group were sentenced for unconstitutional activities. The leaderofthegroup,Schroer,hadbeenaprominentofficerinHitlersMunichheadquarters.Itwasknownatthe timethatSchroerhadgiventheorderActinconspicuously!Infiltrateallrightistorganizationandmakethem readyforthefinalassault.[107] Directive1067wassystematicallysabotagedbyAmericanOccupationofficials.EvenEisenhowersawthe systematicwayinwhichtheDirectivewasbeingviolatedandissuedstrongwarningsagainsttheofficersguilty ofsuchviolations.PerhapsthebestsummationofthesystematicsabotageofDirective 1067canbefoundin theTrumanLibrary.ThefollowingquotecomesfromGeneralLuciusD.Clay,whobecameMilitaryGovernorof Germany: JCS1067wouldhavebeenextremelydifficulttooperateunder.Ifyoufolloweditliterally,youcouldnt havedoneanythingtorestoretheGermaneconomy.IfyoucouldntrestoretheGermaneconomy,you couldneverhopetogetpaidforthefoodthattheyhadtohave.Byvirtueofthesesortsofthings,itwas modifiedconstantly;notofficially,butbyallowingthisdeviationandthatdeviation,etcetera.Webegan to slowly wipe out JCS1067. When we were ordered to put in a currency reform, this was in direct violation of a provision of JCS1067 that prohibited us from doing anything to improve the German economy.Itwasanunworkablepolicyanditwasntchangedjustwithoutanydiscussionoranythingby those of us who were in Germany. It was done by gradual changes in its provision and changes of cablegrams,conferences,andsoon.[47] The words of General Clay above are damning. They leave no doubt that the general was willing to ignore RooseveltsDirectiveandtotwistthemeaningoftheDirectiveintowhateverwasthemostconvenientforhim at the time. Further, the Generals words clearly verify that he knowingly chipped away gradually at the directiveuntilallofitsprovisionswerevoided.ThisgradualerodingoftheDirectiveisconfirmedbyanotherof the good generals deeds. In 1948, General Clay commuted the life sentence of Ilse Koch to three years. Ilse Koch was known as the Bitch of Buchenwald and had lampshades made from the skin of inmates with distinctive tattoos. Forensics had proven there was no doubt that the various items were made from human skin.However,in1976GeneralClayinavideotapedinterviewpreparedfortheGeorgeC.MarshallResearch FoundationinVirginiamadethefollowingcomments: WetriedIlseKoch.Shewassentencedtolifeimprisonment,andIcommutedittothreeyears.And ourpressreallydidntlikethat.Shehadbeendestroyedbythefactthatanenterprisingreporterwho firstwentintoherhousehadgivenherthebeautifulname,theBitchofBuchenwald,andhehadfound somewhitelampshadesintherewhichhewroteupasbeingmadeoutofhumanflesh. Well,itturnedoutactuallythatitwasgoatflesh.Butatthetrialitwasstillhumanflesh.Itwasalmost impossibleforhertohavegottenafairtrial.[48] TheGeneralslatercommentsonFrauKochrevealmuchaboutwherethesympathiesofthegeneralwere.The reader should note that Ilse Koch and her lawyers never challenged the fact that the lampshades and other items had been made from human skin. Such irresponsible comments have become labeled as Holocaust Denials. Further, the Koch case shows that while the general first started out circumventing Roosevelts Directivebychippingawayattheeconomicalprovisions,hesoonescalatedhissympathiestopardoningNazi warcriminals.ThereadershouldnotethatwhileGeneralClaypubliclystatedthatKochcouldnotbetriedinan AmericanMilitarycourt,acivilianGermancourtlatertriedFrauKochandsentencedhertolifein prison.In 1976,whilestillinternedinprison,theBitchofBuchenwaldcommittedsuicide. OncehostilitiesceasedinEurope,GeneralClaywasappointedasEisenhowersdeputymilitarygovernorin chargeoftheControlCouncil.FollowingEisenhowersretirementonMarch15,1947,Claybecamethemilitary governorofGermany.Eisenhowerwasreportedlydisturbedtoseehisorderscountermandedandexpressed concernoverseeingNazishistroopshadarrestedsetfree.Eisenhowerdidntneedtolookanyfurtherthanhis deputygovernor. BeforelookingattheControlCouncil,itshouldbenotedthatKennethRoyall,SecretaryoftheArmy,was opposedtothedenazificationanddecartelizationplans.Royallwasopeninhissupportforrebuildingastrong Germanyandavigorousopponentofthe4Dsprogram.InsecrettestimonybeforetheHouseAppropriations CommitteeinApril1948,hetoldCongressmenthathehadwantedtoendthewarcrimestrialsmuchearlier. HeclaimedhismajorobstaclewasGeneralClay.Royallwastheofficialresponsibleforhaltingallexecutionsof

war criminals after a false story of torture of prisoners arose in the Malmedy Massacre trial. Royall also opposedtheintegrationofthemilitaryafterthewar. As deputy governor in charge of the Control Council, Clay was free to hire and staff the council as he pleased.TheControlCouncilwasdividedintothreegeneraldivisions:apolitical,afinancialandaneconomic division. GeneralMotorswasparticularlywellrepresentedontheControlCouncil.BesidesLouisDouglas,heading up the Finance Division, Edwar Zdunke, a prewar head of General Motors Antwerp, was appointed to supervisetheEngineeringSection.ColonelGrameHoward,formerGeneralMotorsrepresentativeinGermany and the author of a book that praised totalitarian practices and justified German aggression, was placed in chargeofpersonnelselection. ThestackingoftheControlCouncilwithWallStreetandcorporateexecutivesdeeplydisturbedTreasury Secretary Morgenthau. Many of the firms were guilty of willingly trading with the Nazis during the war and supported profascist groups at home. General Motors Opel division had been one of the largest tank manufacturersforHitler.DillonandReedwasoneoftheWallStreetfirmsthathelpfinanceandbuildtheThird Reich. Perhaps, the best summary of how the Control Council was sabotaged comes from Morgenthaus memorandumofMay29,1945.Itisreproducedbelow. MEMORANDUM May29,1945 LieutenantGeneral Lucius D. Clay, as Deputy to General Eisenhower, actively runs the American element of the Control council for Germany. General Clays three principal advisers on the Control Councilstaffare: 1. AmbassadorRobertD.Murphy,whoisinchargeofthePoliticalDivision. 2. LouisDouglas,whomGeneralClaydescribesasmypersonaladviseroneconomical,financialand governmentalmatters.DouglasresignedasDirectoroftheBudgetin1934;andforthefollowingeight years he attacked the governments fiscal policies. Since 1940, Douglas has been president of the MutualLifeInsuranceCompany,andsinceDecember1944,heasbeenadirectoroftheGeneralMotors Corporation. 3. BrigadierGeneral William Draper, who is the director of the Economics Division of the Control Council.GeneralDraperisapartnerofthebankingfirmofDillon,ReadandCompany. Sundays New York Times contained the announcement of personnel who have been appointed by General Clay and General Draper to the Economic Division of the Control Council. The appointments includethefollowing: 1. R.J.Wysoristobeinchargeofthemetallurgicalmatters.WysorwaspresidentoftheRepublicSteel Corporation from 1937 until a recent date, and prior thereto, he was associated with the Bethlehem Steel,JonesandLaughlinSteelcorporationandtheRepublicSteelCorporation. 2. EdwardX.Zdunkeistosupervisetheengineeringsection.Priortothewar,Mr.Zdunkewasheadof GeneralMotorsatAntwerp. 3. Philip Gaethke is to be in charge of mining operations. Gaethke was formerly connected with AnacondaCopperandasmanagerofitssmeltersandminesinUpperSilesiabeforethewar. 4. PhilipP.Cloveristobeinchargeofhandlingoilmatters.Hewasformerlyarepresentativeofthe SoconyVacuumOilCompanyinGermany. 5. Peter Hoglund is to deal with industrial production problems. Hoglund is on leave from General MotorsandissaidtobeanexpertonGermanproduction. 6. CalvinB.HooveristobeinchargeoftheIntelligenceGroupontheControlCouncilandisalsotobe aspecialadvisortoGeneralDraper.InalettertotheEditorof The New York TimesonOctober9,1944, Hooverwroteasfollows: ThepublicationofSecretaryMorgenthausplanfordealingwithGermanyhasdisturbedmedeeply suchaCarthaginianpeacewouldleavealegacyofhatetopoisoninternationalrelationsforgenerations tocomethevoidintheeconomyofEuropewhichwouldexistthroughthedestructionofallGerman industryissomethingwhichisdifficulttocontemplate.

7. LairdBellistobeChiefCounseloftheEconomicDivision.HeisawellknownChicagolawyerandin May1944,waselectedthepresidentofTheChicagoDailyNews,afterthedeathofFrankKnox. OneofthemenwhohelpedGeneralDraperintheselectionofpersonnelfortheEconomicsDivision wasColonelGraemeHoward,avicepresidentofGeneralMotors,whowasinchargeoftheiroverseas businessandwhowasaleadingrepresentativeofGeneralMotorsinGermanypriortothewar.Howard istheauthorofabookinwhichhepraisestotalitarianpractices,justifiesGermanaggressionandthe Munichpolicyofappeasement,andblamesRooseveltforprecipitatingthewar.[49] Morgenthaus concerns expressed in the memorandum above shed light on how the denazification program wasbeingsystematicallysabotagedbythemilitaryfromthetopdown.Thereadershouldnotethatallofthe firms mentioned above willingly continued to trade with the Nazis during the war. Almost all of these firms took extraordinary measures to conceal their efforts from the United States government and to have their stateside office remain in charge. In the previous chapter, similar concerns were voiced in Congress. The sabotage occurred despite clear directives for the Control Council. The relevant extracts from the Control Councilfollowsbelow: You will search out, arrest and hold, pending receipt by you of further instructions as to their disposition, Adolph Hitler, his chief Nazi associates, other war criminals and all persons who have participated in planning or carrying out Nazi enterprises involving or resulting in atrocities or war crimes. 8. NazisandNazisympathizersholdingimportantandkeypositionsin(a)NationalandGauCivicand economicorganizations:(b)corporationsandotherorganizationsinwhichthegovernmenthasamajor financialinterest:(c)industry,commerce,agricultureandfinance:(d)education:(e)thejudiciaryand (f)thepress,publishinghousesandotheragenciesdisseminatingnewsandpropaganda.[50] The excerpt from the directive from the Control Council is specific. It leaves no doubt as to who was to be arrested and detained. Further, the directive was explicit in that they did not have an authority to release anyonedetainedpendingfurtherinstructionsfromWashington.GeneralClayswordsaboverevealthatatthe very least he was guilty of not following orders. The reader should note that under the directive above, Americanbusinessmenwouldbeincluded. While there were members like Morgenthau in the Truman administration that carried on the fight for justice, the Nazis had powerful friends in the halls of Congress to protect them. One such Congressman was JohnRankin.AnexcerptfromhisspeechtotheHouseofRepresentativesonNovember27,1947followsbelow: WhatistakingplaceatNuremberg,Germany,isadisgracetotheUnitedStates.Everyothercountry has now washed its hands and withdrawn from this Saturnalia of persecution. But a racial minority, twoandhalfyearsafterthewarclosed,areinNurembergnotonlyhangingGermansoldiers,buttrying GermanbusinessmeninthenameoftheUnitedStates.[81] Note Rankin used the words racial minority to refer to Jews in the above quote. Rankins racism and pro fascistallegiancewasalreadypresentedinpreviouschapters.Rankinwasnot aloneinCongressinopposing the trials. George Dondero, Republican representative from Michigan, was another. Dondero, before being elected to the House, was a former mayor of Royal Oak, Michigan, the home of the proNazi priest Father CoughlinandahotbedforproNazigroups.DonderodescribedthetrialsasaresultofJewishandcommunist treachery. He singled out ten lawyers from the I.G. Farben case, including the leading prosecutor, Josiah Du Bios, whom he called a known leftwinger from the Treasury Department who had been a student of the CommunistParty.Donderointhelate1940sand1950sbecamesomewhatofanartcriticindismissingmodern artascommunistinspiredandworkedtocensortheworkedofabstractartists. Also,basedinDonderosdistrictwasDowChemical.DowhadseveralcartelarrangementswithI.G.Farben andfearedthatthetrialcouldleadtoexposingitsfullcollaborationwithI.GandtheNazis.TheBritishICI,Ltd firmwasalsoimplicatedintheFarbentrial.However,theBritishForeignOfficebreathedasighofreliefwhen theTimesdiscreetlyomittedanyreferencetoICIinitsreportingoftheI.G.Farbencase. The choice of Clay and Murphy heading up their respective positions in the Control Council was largely engineeredbytheStateDepartment.Theirappointmentwasmoreofapoliticaldecisionandatestamenttothe powerofthefactionwithintheStateDepartmentsympathetictofascism.ThereadershouldnotethatClaywas theonlyfourstargeneralnevertohaveconductedacombatcommand.WhileClayservedinEuropeduringthe war,hewasarearechelongeneralinchargeofsupply.

BothClayandMurphy,onceappointedtotheirposts,werelargelyresponsibleforconvincingTrumanthat a punitive peace was unwise and immediately set about sabotaging the denazification program. Once the Kennandoctrineemergedin1946,ClayandMurphybothembracedit.Earlyin1946,GeneralClaybannedthe dismantling of German industrial plants for reparations. Both men had a large influence in escalating the emergingColdWar.EspeciallyGeneralClaywhoin1948issuedawarningtoWashingtonthatmaycomewith dramaticsuddenness.ClaysfranticwarwarningmessagewasbasedonexaggeratedthreatsfromGehlenthat the Soviets were mobilizing large numbers of troops in Eastern Europe. Gehlen was a former Nazi officer in chargeofintelligenceontheeasternfront,recruitedbytheOSS/CIA.GehlenandtheCIAsrecruitmentofNazis willbediscussedfullyinthefollowingchapter. The rehabilitation of Hermann Abs by General Clay could be considered as the most damning act of sabotagingthedenazificationprogram.WhileAbswasneverassociatedwiththeconcentrationcampsorthe horrorsoftheHolocaust,hewasthesinglefigurewithintheNaziempirethatmadeitallpossible.Abswasthe Nazibanker.WithoutthefinancialmagicofAbs,theNaziswouldhavefacedafinancialcrisisthatwouldhave brought the Third Reich crumbling down. In his own words, Clay was never able to make Abs the financial minister of the new German government due to American public opinion. However, Clay was successful in placing Abs as head of the Reconstruction Finance Corporation (RFC). The RFC was somewhat outside the realm of the government, but was the sole instrument in the distribution of funds for Germany from the MarshallPlan.

Part 8: Generals Clay and Draper

On July 30, 1947, General Clay announced that extradition from the American zone would cease after November 1.ThreeweeksearliertheGeneralhadorderedJAGtoend allwarcrimestrialsbythe endofthe year.AtthattimethereremainedatleastsevenhundredmurdersofAmericanairmenstilluninvestigated.The reasongivenlaterfortheclosingofwarcrimetrialswasthatbymid1947theAmericanwarcrimesprogram had became entirely discredited, a victim of a vicious political campaign.[53] Both The Chicago Tribune and SenatorJosephMcCarthywereinvolvedinthecampaigntodiscredittheMalmedymassacretrialandwillbe leftforalaterchapter. The first to benefit from Clays decision to end extradition were seven Wehrmacht and SS generals. The readershouldnotethatalmostnoGermangeneralswereeverbroughttotrialbyeithertheUnitedStatesor Britain.ThatdoesnotincludefieldmarshalssuchasGoring.ThisgroupofGermanofficerswaswantedforthe destructionofWarsawin1944andthemurderofthousandsofPolesduringtheGermanretreat.Polandhad requested their extradition at the beginning of 1946. Unlike other Eastern European countries, the trials in Polandhadbeenasfairasanyinthewest.Atotalof1,172menandwomenhadbeenextraditedtoPolandto standtrial.Fortytwohadbeenreturnedafteracquittal.Oneofthegeneralsnamedintheextraditionrequest wasGeneralHeinzReinefarth,theButcherofWarsaw. Before looking at how the trials were sabotaged, it is revealing to look at why some Nazi criminals were neverchargedwithcrimesandactuallypromotedtonewpositionsofpower.Atypicalexampleisthecaseof Theodor Ganzenmuller. Ganzenmuller had taken part in the Beer Hall Putsch in 1923. During the war as Staatssekretar in the ministry of transportation, Ganzenmuller organized the train services for Auschwitz, Treblinka and other concentration camps. Himmler would personally telephone Ganzenmuller to work out transportationproblemsoftheJewstothedeathcamps. Seeking someone to rebuild the railways in the American zone, the US Transport Division shamefully proposed Ganzenmuller. Seven of the other members proposed were also in the automatic arrest category. Ganzenmullersnamewasonlywithdrawnafteranurgentletterfromthe State Department. Dr.Dorpmuller, Hitlersministeroftransportwasappointed. SuchappointmentsofhighformerNazistopositionsofpowerinthepostwaroccupationgovernmentand the later German government were rampant. Over fifty percent of those nominated by the American Legal DivisionwereformerNazisintheautomaticarrestcategory. The only American reporting having problems finding suitable personnel to fill the new positions was Bernard Berstein, head of the Finance Division. General Bickelhaupt of the American forces appointed Hermann Geitz to head up the communications division. Bickelhaupt was a former ATT vicepresident. BickelhauptinsistedthatGeitzwasindispensable.GeitzhadbeenheadoftheGermantelephonecompanyand before and during the war had bought equipment from ATT. At the last moment, however, General Clay steppedinandblockedGeitzsnomination.[82]

ColonelClioStraighthadbeenselectedtoruntheprosecutionofwarcriminals.Straightwasalawyerfrom Waterloo, Iowa with no experience in criminal cases. Straight had been drafted and, even after career JAG officers were dispatched to Germany, remained in charge. Straight had been given the order to wind up the trialsbyColonelClaudeMickewaite;hehadpresumedthetrialswouldlastthrough1948.Straightsofficewas handicappedbyaconstantdemobilizationeffortthathadreducedhisstaffbyfiftypercent.Straightadmitted thathisstaffwasilltrainedandnotwellqualified.Additionally,thegroupsworkwasconstantlyinterrupted by repeated moves of headquarters. According to Straight, Mickewaite saw no glory in continuing the trials and, because of the unpopular nature of the trials with top army brass, refused to request additional manpower. Mickewaitefacedonlyoneobstacleinhisrushtoclosedownthetrails,DamonGunn.Gunnhadsubmitteda reporttoWashingtononJune24,1946complainingthatthereweremorethanfifteenthousandswarcrimes suspectsheldatDachaualone,butonlysixtythreetrialsinvolvingroughlyfivehundredpeoplehadbeenheld. In his report, Gunn had recommended an additional fifteen hundred trials involving at the minimum three thousandpeople.GunnsrecommendationwasdeadthedayitarrivedinGermany.OnMickewaitessuggestion, Clayturneddowntherequestpersonally.[54] Straight remained ambivalent about the release of prisoners from Dachau. As late as 1982 Straight commentonthereleaseofprisonersfromDachauasfollows: Iwasambivalentwhetherweshouldcarryonorquit.Wehadestablishedtheprincipleandtocarryon andtrythousandswouldhavebeenexpensive.SowhenIgottheorders,Igottheproductionlinegoing. Nospecialeffortsweremade.Therewasnomethod,nodiscussionabouthandlingcasesorbodiesover totheGermans.Wejustplainturnedthemloose.[54] Justice had died with Roosevelt. Establishing a principle was of greater value than bringing war criminals to justice, so we just turned them loose. May those last words haunt those responsible for unleashing war criminalstotheirlastdays.Theresultofthelackofprosecutionofwarcriminalshadtheeffectofturningthe Americanzoneintoasanctuaryforwarcriminals.Threeexampleswillsuffice.OnMarch23,1948Lieutenant General Dratvin, the deputy commander of the Soviet military mission, requested in writing from Major General G.P. Hays, Clays deputy, the extradition of seventeen Russian collaborators. The collaborators were charged with shooting partisans and burning whole families alive in their homes. Dratvin supplied the addresseswithintheAmericanzoneofeachcollaborator.Haysrejectedtherequest.OnMarch31,1948,theUS LegalDivisionhadapprovedtheextraditionoffourGermanofficerstoYugoslaviaforaseriesofmurders.Their extradition was canceled on political grounds by the director of intelligence. Finally on June 15, Army Headquarters received a letter from a Lett refugee naming five former Lett SS and SD officers living in a displacedpersonscamp.Thereplyfollowsbelow: WiththeexceptionofatrocitiescommittedinconcentrationcampswhichwerelocatedintheUSarea ofcontroloroverrunbyUStroops,thewarcrimesactivitiesofheadquartersdonotentailprosecutions ofcriminalswhocommittedoffencesagainstthecivilianpopulationofothercountries.Wethankyou forbringingthemattertotheattentionofthisheadquarters.[55] Inshort,noonegaveadamn.However,Claydidnotactinavacuuminsabotagingthedenazificationprogram. Asdetailedevidencegivenearlierinthischapterproves,theNaziscountedonsupportfromtheiragentsand friends.IntheUnitedStatesthoseagentsandfriendswerethesameleadersofcorporationsthathadcontinued to supply the Third Reich with munitions after the war broke out. The opposition in the America to the denazification and decartelization of Germany was led almost exclusively by the elite from corporations and StateDepartmentthathadbeenthemostactiveinfinancingGermanyinthe1920sand1930s. Thisgrouphadthemeanstoemployeffectivelobbyingtechniquesandtocontrolthefocusofthemedia. OnetacticusedwasthesponsoringofjunketsforbusinessmenandpoliticianstoEuropeinordertostudythe problem of German recovery. Most of these junkets were financed by American multinational corporations. Draperpaidcloseattentiontothesevisitorsandprovidedthemwithprivilegedinformation.Thereportsfrom these junkets would mention the proven impossibility of decartelization and the need to reverse the MorgenthauPlanbeforeithadevenbeenimplemented. AgoodexampleofthesereportsthathadalargeinfluenceonshapingpolicywasAReportonGermany writtenbyLewisBrown,chairmanofJohnsManvilleCorporation.Thereportwasextremelypopular,makingit onto the best seller list and is still quoted today. The report was written in 1947 after Brown had toured Germany.TheexpertsBrownconsultedinhisreportreadlikeaguestlistfortheCouncilonForeignRelations:

ATTsFrederickDevereux;JohnFosterDulles;HerbertHoover;SearsRoebuckspresident,A.S.Barrows,then serving as US Comptroller in Germany; a host of British and Swiss banking authorities and 25 German industrialists. Browns lists of experts omitted any labor leader, any small businessman, any leader of a resistancemovementandanyleadersofdenazificationanddecartelization. Inhisreport,BrownattackedtheFrenchandUSSRpunishmentofNazisasbrutalandindiscriminate.He claimed the denazification program was depriving Germany of the leaders it needed in rehabilitation and reconstruction of Germany. Browns trip was underwritten primarily by General Electrics chairman, Philip Reed.ReedwasregardedasoneofthemostinfluentialindustrialleadersonpostwarGermany.Inadditionto sponsoringBrown,Reedandtheorganizationheledorganizedseveralconferencesin1946and1947.Typical of the delegates were the chairman of the National Association of Manufactures, chairman of National City Bank, the head of the International Chamber of Commerce and executives of Chase Bank. The one common denominator among the delegates was all had extensive dealings with Nazi Germany, including General Electric.[52] AtthetimeGeneralElectricownedabout25%ofAEGandhadextensiveholdingsinGermany.WhileReed wasarguingwiththegovernmentagainstantitrustlawsinGermany,GEfacedthirteencriminalantitrustcases intheUnitedStates. Beforemovingon,thereadershouldnoteonefinalaspectofGeneralClaythatforevercastssuspicionon his actions in Germany as military commander. Following the war, Clay accepted a trustee position for the Alfred P. Sloan Foundation. Before accepting the position, Clay surely must have known that the Sloan Foundation was connected to those that invested in Nazi Germany. Such an appointment immediately raises questionsthatitwasapayoffforhelpinconcealingAmericaninvestmentsinNaziGermany.Thequestion,like many others raised in this chapter, cannot be answered with any degree of certainty without further documentation that is either sealed in government vaults or hidden in the archives of the companies that armedHitler. While General Clays record on denazification is dismal at best, it would be considered exemplary in comparison with the record of General William Draper. Drapers appointment had been engineered by SecretaryofWarStimsonandSecretaryoftheNavyForrestal.ForrestalhadbeenaformerpresidentofDillon andReed.HewasalsooneindividualthatRoosevelthadundersurveillance.[56]Draperwasselectedtohead the economic division and the anticartel section within the division. In fact, Clay oftentimes found him opposedtoDrapersviewsandactions. Theoretically, the anticartel section should have found easy going in breaking up German cartels. The American policy document, JCS 1067 directive and the three power Potsdam agreement were all uncompromisingthattheconcentrationofGermanindustrialstrengthbedestroyedforever.Unlikethedebate overwhatconstitutedawarcrime,therewaslittledisagreementoverthefateofcartels.Simply,theywereto bedestroyed. ThecartelsectionalsoemployedCaptainNorbertBogdan,avicepresidentofSchroederBanksNewYork branch.SchroederhadclosetieswiththeI.S.SteinbankownedbyBaronKurtvonSchroder.VonSchroderhad channeledfundstotheNazisbeforetheirseizureofpowerandwasinstrumentalinintroducingHitlertovon PapeninameetingthatpavedthewayforHitlersappointmenttochancellor.Thereadershouldbereminded thatAllenDulleswasalsoadirectorofSchroederandhadbeenemployedbySullivanandCromwell,another WallStreetfirmthatfundedtheNazis. Draper surrounded himself with likeminded aides. His electronic specialist was Frederick Devereux, as already mentioned, a senior official from ATT. His steel expert was Rufus Wysor, the president of Republic Steel,whichhadalonghistoryofcartelagreements.IndeedWysoroncequestionedarivalwithWhatswrong withcartelsanyhow? WilliamDraperwasaformerinvestmentbankerwithDillonandReedwithalonghistoryofdoingbusiness withGermanyandtheNazis.WhileatDillonandReed,Draperwasappointedasdirector,vicepresident,and assistant treasurer of the German Credit and Investment Corp (GCI). GCI served as a shortterm banker for ThyssenandtheGermanSteelTrust.Inhisownwords,DraperdidnotintendtoeverimplementRoosevelts directive calling for the dismantling of German cartels and industry. In one case, Draper ordered the dismantlingofanI.G.Farbenpoisongasplanttocease. However,withinDraperscartelsection,therewerethreededicatedindividualswhoworkeddiligentlyto dismantletheNazicartels.BothRussellNixonandBernardBersteinresignedbyDecember1945asaprotest forthefailureofDrapertoimplementdecartelizationmeasures.Bersteinworkedwithinthebankingsection

and had reported to General Clay in September 1945 that his team had removed ninetyfive hundred employeeswhowereprovenNazisfromthebankingsystem.However,Bersteindemandedstrictermeasures and the removal of US officials that refused to implement the denazification program. Additionally, Berstein claimedtoomanyNazisremainedincontrolofthebanks.ClayrefusedtotaketoughermeasuresandBerstein resignedonceitwasclearnothingwasgoingtobedone. JamesMartinchosetoremainandfightfordecartelization.Martinspositionwasundoubtedlyweakened bytheresignationsofNixonandBerstein.WhatMartinhadfailedtoaccountforwasthestrengthofopposition fromhisownside.BritishandAmericanbankersandindustrialistshadworkedwiththeirNazipartnersopenly until the war broke out. The majority of this clique of businessmen continued working with the Nazis clandestinely after war broke out. These businessmen saw little reason why they should not pick up where they left off. The amounts of investment by American corporations in Germany were staggering. In 1939, AmericancorporationsheldcontrollinginterestinGermancorporationsworthfourhundredmilliondollarsat aminimum. Up until mid1946 Martin could have defeated Draper if two conditions had been satisfied. First Martin wouldhaveneededtheinformationaboutGermancorporationsnecessarytoorganizeabreakup.Secondly,the AmericanswouldhavehadtohavecontrolovertheRuhrdistrictinwhichthelargesteelandcoaltrustswere located.Instead,theRuhrdistrictwasunderBritishcontrol. Drapers British counterpart was Sir Percy Mills. British industry indeed had their man in control of the Economic Division in Mills. Mills arrived in Germany with no formal directive to remove Nazi businessmen. IndeedMillswasunrepentantinappointingformerNazistocontrolindustries.Millsselectedindustrialistshe hadlastmetin1939tofulfillthesepositions.AccordingtoSHAEF(SupremeHeadquartersAlliedExpeditionary Force)Millsselectedindustrialistsshouldhavebeenunderarrest. Typical of Mills appointments was Wilhelm Zangen, a Nazi Party member since 1927. Zangen was an employerofslavelaboratMannesmann.ErnstPonsgenwasselectedtodirectthesteelindustry.Hehadbeen awardedin1941byHitlerwiththeEagleShield,theNazishighesteconomicaward.Thecitationforhisaward quoteshisextraordinaryservicesinarmingGermany. Martin feared the very essence of fascism, that of the corporate state. The AntiTrust division estimated that one hundred industrialists and six major banks controlled two thirds of the German economy. This concentrated power made it easy for the Nazis to mobilize for war. Martins assessment was controversial. BritishandAmericanpoliticiansandmilitaryofficialsweredividedaboutthenatureofthecorporationsand theNazigovernment. Martin and Nixon arrived in Frankfurt at the end of April 1945. They discovered that while I.G. Farbens headquartershadescapedanybombingdamage,therecordsstoredtherewerebeingdumpedoutofwindows and burnt in the courtyard. SHAEF had decided to use the building as a headquarters and had ordered it clearedofrefuse.BeforetheycoulddismantleI.G.theyneededdocumentaryevidence,therecordswerevital fortheirtask.However,whatrecordshadsurvivedthewartooktwoyearstoassemble. From the beginning, the investigations into I.G centered about two directors, Herman Schmitz and von Schnitzler.VonSchnitzlerwaslocatedbyNixonandeventuallyfacedtrialaftermakingseveralconfessionsand conflictingstatements.JudgeCurtisShakeruledtoignorethosestatementsinvonSchnitzlerstrialclaimingthe accusedwastryingtohelptheAlliesbywhathethoughttheywantedtohear.[57]Thetribunalofjudgesofthe I.G. Farben case in which twentythree directors of I.G Farben faced trial consisted of Curtis Shake, Supreme CourtjusticeofIndiana;JamesMorris,SupremeCourtjusticeofNorthDakotaandHerbert,LawSchoolDeanat LouisianaStateUniversity. Theprosecutorwasirateoverthedecision.Alltwentythreewereacquittedofwaginganaggressivewar; tenwereacquittedofallcharges;theremainderwasfoundguiltyoflessercharges.Onlyfourwerefoundguilty of employing slave labor. Herbert wrote a dissenting opinion. The prosecutor, Josiah E. Du Bois, Jr., was particularlyiratewithMorris,whoquestionedthepaceoftheprosecutorspresentationsandtherelevanceof muchoftheirevidence.JudgeMerrell,anIndianalawyer,wasthealternatejudgeandconcurredwithHerbert. The sentences were extremely light, with some sentence only a year and a half long. Herberts dissenting opinionran114pages.Excerptsfromitfollow: Iconcurintheacquittalsonchargesofplanningandpreparationofaggressivewar.Iconcur,though realizingthatonthevastvolumeofcredibleevidence,acontraryresultmightaseasilybereachedby other triers of the facts who would be more inclined to draw the inferences usually warranted in

criminalcases.Theissuesoffactaretrulysocloseastocausegenuineconcernwhetherornotjustice hasactuallybeendone. Whileconcurringintheacquittals,IcannotagreewiththefactualconclusionsoftheTribunal.Idonot agreewiththemajoritysconclusionthattheevidencefallsfarshort. Utilization of [slave] labor [by Farben] was approved as a matter of corporate policy. To permit the corporate instrumentality to be used as a cloak to insulate the principal corporate officers who approvedandauthorizedthiscourseofactionfromanycriminalresponsibilitythereforeisaleniency in the application of principles of criminal responsibility which, in my opinion, is without any sound precedentunderthemostelementaryconceptsofcriminallaw.TheevidenceshowsFarbenswilling cooperation in the utilization of forced foreign workers, prisoners of war and concentration camp inmatesasamatterofconsciouscorporatepolicy.[58] In his criticisms of Morris, Du Bois charged the judge was more preoccupied with the threat of Russian communismthaninjustice. In June 1956 Draper returned to Germany from Washington with a new economic team. All the new memberswereharshcriticsofthepunitivepolicies.ThereadershouldnotethatDrapersEconomicDivision had not broken apart a single cartel. Among them was Lawrence Wilkinson, the new head of the industry branch.Wilkinsonwassharplycriticalofdecartelization,claimingitwouldhinderGermaneconomicrecovery. He claimed that, like denazification, it achieved nothing and only built resentment. With his strong views against decartelization, Wilkinson aligned himself with Britains Percy Mills. According to Martin, Wilkinson and Draper conspired with Mills to raise certain issues in the FourPower discussions, which would give DraperasuitablepretextforseekingWashingtonsagreementtochangeAmericanpolicy.[59] In September 1946, General Clay reprimanded Draper for telling visitors that denazification and decartelization were responsible for the dire economic conditions. Clays reprimand had no effect. On November13,SirCecilWeircabledtheAmericanembassyinWashingtonthatDraperhadpromisedhimthatit wasjusta matteroftimebefore Americanpolicy fellintolinewithBritishpolicy.Weirwassoontotakethe placeofMills.AmonthlaterWillardThorp,anAssistantSecretaryofState,promisedtheBritishthattheState Departmentwasdoingitsbesttokeepthewildmenincheck.Inaddition,inNovembertheRepublicanswon control of both houses of Congress, tilting American policy in favor of big business and cartels. The Four PowerslawagainstcartelsapprovedinJanuary1947fitthelaxBritishpolicytowardscartels. MartinheldoffresigninguntilMay1947.DraperappointedPhilipHawkins,hissoninlawandarelativeof the du Ponts, as Martins successor. Upon his return to Washington, Martin continued to fight for decartelization. He and some of the remaining members of the decartelization branch testified before the FergussonCommittee.Arrayedagainsthimwerethosethatproducedfalsefiguresofinnumerablestatisticsto prove that German industry was unused and any further breakups would force the American taxpayer to subsidizeGermany.Fergussonsreport,however,ignoredtheeasyoptionandblamedHawkinsandWilkinson for deliberately sabotaging the decartelization policy. The report recommended their firing. In retaliation, WilkinsonfiredMartin. Wilkinsoninturnfiredtwomembersoftheremainingdecartelizationteamthathadtestifiedagainsthim. Alexander Sacks, one of those fired, stated; They have done what ever they could by innuendo and misstatement,todiscreditaprogram,whichtheydidnotunderstandorlike.[60]AtthesametimeWilkinson dismissed 120 of the sections staff, leaving just twentyfive remaining in Germany. Draper was promoted to assistant secretary of war. As assistant secretary, Draper proceeded to dismantle the antitrust campaign againsttheJapanesemultinationalcorporationsinstitutedbyMacArthur.

Part 9: John McCloy

Before looking further at the evolution of the Control Council, a closer look at General Drapers career is needed. As previously mentioned, Draper while employed at Dillon and Reed, was in charge of the Thyssen account.HeworkedcloselywiththemaninchargeofThyssensaccountwithBrownBrothersandHarriman, Prescott Bush. Draper had a very dark side that extends to the present day. Draper was an advocate of eugenics. The reader should not confuse General William Draper with Wickliffe Draper, the founder of the Pioneer Fund, although they were related. In 1932, William Draper financed the International Eugenics Congress. Doubts remain whether Draper was using his own money or money from the Thyssen account or

othercorporateaccounts.DraperhelpedselectErnstRuaudinaschiefoftheworldeugenicsmovement,who usedhisofficetopromotewhathecalledAdolfHitlersholy,nationalandinternationalracialhygienicmission. PrescottBushsharedDrapersviewoneugenics.Infact,lateinPrescottsfirstrunforofficein1950,hewas exposedasanactivistinthatsectionoftheoldfascisteugenicsmovement.Duetotheexposure,Prescottlost hisfirstbidforoffice. In1958,EisenhowerappointedDraperasheadofacommitteetostudythepropercourseforUSmilitary aidtoothercountries.AyearlaterDraperchangedthefocusofthecommitteeandrecommendedthattheUS governmentreacttothesupposedthreatofthepopulationexplosionbyformulatingplanstodepopulatethe poorer countries. The growth of the worlds nonwhite population, he proposed, should be regarded as dangeroustothenationalsecurityoftheUnitedStates.Eisenhowerrejectedtherecommendation. In the 1960s, Draper founded the Population Crisis Committee and the Draper Fund, joining with the RockefellerandduPontfamiliestopromoteeugenicsaspopulationcontrol.TheRockefellerfamilyhasbeen associatedwitheugenicssincetheturnofthecentury.In1950and1951,JohnFosterDulles,thenchairmanof theRockefellerFoundation,ledJohnD.Rockefeller,IIIonaseriesofworldtours,focusingontheneedtostop theexpansionofthenonwhitepopulations.InNovember1952,DullesandRockefellersetupthePopulation Council,withtensofmillionsofdollarsfromtheRockefellerfamily. GeneralDraperservedasGeorgeBushs(thefather)populationexpert.WhileservinginCongress,George Bush chaired the Republican Task Force on Earth Resources and Population. As chairman of the Task Force, Bush invited Professors William Shockley and Arthur Jensen to explain to the committee how allegedly runawaybirthratesforAfricanAmericansweredownbreedingtheAmericanpopulation.OnAugust5,1969, BushsummedupthetestimonyhisblackinferiorityadvocateshadgiventotheTaskForcebeforeCongress. GeorgeBushwasUSambassadortotheUnitedNationsin1972;BushandhisfriendsurgedtheUSAgency for International Development to make an official contract with the old Sterilization League of America. The League had changed its name twice again, and was now called the Association for Voluntary Surgical Contraception. The US government began paying the old fascist group to sterilize nonwhites in foreign countries. InBushs1988campaignforPresident,GeneralDrapersson,WilliamDraper,III,servedascochairmanfor finance. The younger Draper also is involved in the United Nations depopulation efforts. George Bushs TreasurySecretarywasNicholasBrady.BradywasFredericBrandispartnerfrom1954untilreplacingBrandi in 1971. Brandi was the German who was Drapers codirector for the Nazi investments and his personal contactmanwiththeNaziGermanSteelTrust. In 1958, General Draper founded the first West Coast venture capital firm. His son continued in venture capital,foundingadditionalfirmsinthe1960s.In1981DraperssonwasappointedChairmanoftheUSExport Import Bank. In 1985, he was selected to be Administrator and CEO of the United Nations Development Program. PerhapsthewordsofWalterLippmannbestsumsupthesabotagingofthedenazificationplan.OnJuly19, 1948,Lippmannwrotethewordsbelow: Though our German policy is in fact the determinant of our whole European policy, and will be decisive for peace or war, it is notorious that it has not been made by the President, or by Secretary Marshall,orbythesocalledpolicymakersbutGeneralClayandGeneralDraper,andinthePentagon. [51] In 1949, John McCloy was appointed High Commissioner of Germany. McCloy had not been the first choice. LouisDouglas,theheadoftheFinanceDivisionoftheControlCouncilwasthefirstchoice;however,Douglas had agreed to step aside in favor of McCloy. It appears that nothing was being left to chance in postwar Germany.ThegoverningofpostwarGermanywouldbeafamilyaffair.Thethreemostpowerfulmeninpost war Germany: High Commissioner McCloy; Douglas, Head of the Finance Division of the Control Council and Chancellor Konrad Adenauer were all brothersinlaw. All three men had married daughters of the wealthy FredrickZinsser,apartnerofJ.P.Morgan.TheMorganempirewouldcontrolthefateofGermany. What little justice that was achieved under the Control Council and General Clay would now be rapidly undone. Up until 1940 McCloy had been a member of the law firm Cravath, de Gersdorff, Swaine and Wood. ThislawfirmhadrepresentedI.G.Farbenanditsaffiliates.In1940,McCloywasappointedAssistantSecretary of War. At least three other individuals from the same law firm turned up in the War Department. Alfred

McCormick and Howard Peterson both served as assistants to the Secretary. Richard Wilmer was commissionedasacolonelafterthewarstartedandservedinasimilarvein.[61] The career of McCloy is literally one of sympathies to fascism and warrants a closer look. McCloy was appointedasAssistantSecretaryofWarbyHenryStimson.RoosevelthadselectedStimsontoheaduptheWar Departmentin1940tobluntanycriticismoftheupcomingwarbytheRepublicansinanattempttomakethe war effort a bipartisan effort. One of the first acts of Stimson after taking over the War Department was to appointMcCloyasSpecialConsultanttoWarDepartmentonGermanSabotage.Before1940ended,McCloywas appointed as Assistant Secretary. The reader should note that as Secretary of State under Hoover, Stimson would surely have been aware of the cartels of I.G. Farben and how the Hoover administration aided their formation.McCloyspentmostofthe1930sinParisworkingonasabotagecasestemmingfromWWI.In1936, hesharedaboxwithHitlerattheOlympics. In one of his first acts as Assistant Secretary of War, McCloy helped plan the internment of Japanese Americans.Oncethewarbegan,McCloyfollowedtheAmericantroopsacrossNorthAfrica.Suchtravelbyan assistant cabinet secretary is highly unusual. However, McCloys actions at the time partially reveal his motivation.WhileinNorthAfrica,McCloyhelpedforgeanalliancewiththeVichyFranceandAdmiralDarlan. McCloy continued to follow the advancing Allied troops across Europe and into Germany. In the closing days of the war in Europe, McCloy made one of his most noted decisions. After sixteen planes bombed RothenburgonMarch31,McCloyorderedahalttoanyfurtherbombingofthecity.AccordingtoMcCloy,his reasonforstoppingthebombingofRothenburgwastopreservethehistoricalmedievalwalledcity.Inaddition, McCloy ordered MajorGeneral Jacob L. Devers that he could not use artillery in taking Rothenburg. The city wouldhavetobeliberatedbyinfantryaloneregardlessofthecostinlivesofGIs. However,thereareafewfactsthatMcCloyandotherssincehaveconvenientlyleftout.Forinstance,just two days before the bombing, a German general and his troops left battered Nuremberg for Rothenburg. TogetherwiththeNaziforcesalreadystationedthere,thegeneralgavetheordertodefendthecitytothelast man. Also located in Rothenburg was Fa Mansfeld AG, a munitions maker that employed slave labor from Buchenwald. Bylate1943,theslaughterofJewswasreachingafeverishpace.TheAlliesweretheninapositiontobomb the concentration camps to stop the slaughter. John McCloy was almost solely responsible for blocking the bombing of the death camps. Allied planes were already bombing the industrial plants associated with Auschwitz. However, in written memos McCloy advanced a bankers argument that the cost would be prohibitive.SuchmissionswouldriskmenandplaneswithlittlereductionintheNaziswareffort.McCloyeven bannedthebombingoftheraillinesleadingtothedeathcamps. TheaverageAmericanatthetimewouldprobablyhavegrantedtheJewssanctuaryintheUnitedStatesif hewasawareofthetruth.ThefactisthatevidenceoftheHolocaustwaskeptfromtheaveragecitizenandeven from Roosevelt himself. The State Department would often wait for months before forwarding memos of evidenceoftheslaughterontoRoosevelt.Bythetime,Rooseveltwouldreadthememositwastoolatetoact ontheintelligenceinthememo.Theprominentnewspapersofthetimeseitherdidnotprintasinglelineabout theHolocaustoratbestrelegatedafewlinesinthebackpages.In1943,aneyewitnessdescribedAuschwitzto SupremeCourtJusticeFelixFrankfurter.FrankfurterwasJewish,butrefusedtobelievethereport. WesternpoliticianswerewellawareofthemassacretakingplacingontheEuropeancontinent.Asearlyas 1941, military attachs were filing weekly body counts. The British were equally aware and adamantly opposed to aiding the Jews. Britains Foreign Office had a greater fear of the Nazis allowing the Jews to emigrate to the west. Undoubtedly the fears in the Foreign Office could not be separated from British ruled Palestine.BothBritainandtheUnitedStateswerealsowellawareoftheviewsintheArabworldtowardsJews andtheinseparablenatureofaJewishhomelandandMideastoil. In a response to the Archbishop of Canterbury, William Temple, before the House of Lords on March 23, 1943pleadingforhelpfortheJews,theBritishgovernmentproposedaconferencewiththeUnitedStateson therefugeequestion.TheBritishForeignOfficehadorganizedtheBermudaconferenceinsuchawaythatno resultswouldbeproduced.TheStateDepartmentrefusedtoallowanyJewishorganizationtoattend.Jewish leaders then sent a list of proposals.[62] Adolf Berle, Assistant Secretary of State, proposed establishing a temporarysafehavenforupto100,000JewsinanareaofEasternLibya.ThePresidentsAdvisoryCommittee onPoliticalRefugeesalsosentalistofproposals,includingusingBritishHondurasasasanctuaryforJews.The conferenceconcludedwithnodecisionsbeingreached.

RooseveltdesperatelywantedtohelptheJews,butwasdeceivedbyhisownintelligenceadvisors,blocked bytheBritishandSovietsandblackmailedbytheDullesbrothers.ThepictureemergingofRooseveltisaman undersecretsiegetryingtoavoidariftamongtheAllies,arifttheNaziswouldgladlyexploit. As early as 1939 the ability of the same shadow government of bigots in corporate America and their croniesinCongressledtothedefeatoftheWagnerRogersbill.ThebillwassponsoredbyNewYorkSenator DemocratRobertWagner,thesameSenatorthatfirstintroducedtheSocialSecuritybill.OntheHousesidethe bill was sponsored by Edith Rogers, a Massachusetts Republican. Under the proposed bill, 20,000 Jewish childrenwouldbeallowedtoimmigratetotheUnitedStates.InCongress,thebillwasamendedrequiringthat other Jewish immigration would have to be reduced by the same amount. Out of frustration, both sponsors wereforcedtodropsupportforthebill. Likewise, President Truman would encounter the same shadow government in the postwar years, who blockedanyattempttoallowJewishrefugeestoimmigratetotheUnitedStatesandnearlyblockedtheUnited NationscreationofIsrael.LeadingthechargetoblockpostwarJewishimmigrationwasnoneotherthanJohn McCloy. WhilestillinEuropeasAssistantSecretaryofWar,McCloyhelpedblocktheexecutionsofseveralNaziwar criminals. McCloy returned to the United States and on November 8, 1945 delivered a speech before the AcademyofPoliticalScienceinNewYork.McCloyblastedtheinfamousJCS1067directiveandtheMorgenthau Plan in an effort to prevent the decartelization of I.G. Farben and decartelization in general. He belittled the operating capacity of Germanys industrial plants. The reader should be aware that the Allied bombing of GermanyonlydestroyedatmosttwentypercentofGermanysindustrialproduction. AtthesametimeCongresswasbeingbombardedwithalobbyingefforttogoeasyonGermany.Theagents oftheNaziswereproceedingaccordingtotheplanthatwaspresentedearlierinthischapter.Unfortunately, too many members of Congress were sympathetic to the Nazis; with no exceptions they were all either conservative Dixiecrats or Republicans. Nebraskas Senator Kenneth Wherry, Mississippis Democrat James EastlandandIndianasRepublicanHomerCapehartwerejustsomeofthemanyCongresscrittersthatstoodup anddenouncedthedecartelizationofGermany.Capehartwasperhapsoneofthemorevicious;inhisspeech beforetheSenate,heblamedMorgenthauforthemassstarvationoftheGermanpeopleratherthantheNazis. HecontinuebyclaimingthatthetechniqueofhatehadearnedMorgenthauandBernardBersteinthetitlesof AmericasHimmler.[63] WhileGeneralClayhadreducedthesentencesofnumerouswarcriminals,itwaswiththearrivalofJohn McCloy as the High commissioner of Germany that threw open the doors of Landsberg prison. Even before arrivinginGermanyasHighCommissioner,McCloyhadblockedsomeexecutionsofwarcriminals.BothClay andMcCloyactedwiththeirrespectiveadvisorycommittees. General Clay was advised by the Simpson Committee. Sitting on the Simpson Committee were Judge Edward Leroy van Roden, of Delaware County, Pennsylvania, and Justice Gordon Simpson, of the Texas Supreme Court. The Simpson committee was appointed after Lieutenant Colonel Willis N. Everett, Jr., the defense counsel for the seventyfour defendants charged in the Malmedy massacre, petitioned the United StatesSupremeCourtthatthatthedefendantshadnotreceivedafairtrial.TheSupremeCourtruledthatitdid nothavejurisdiction,butEverettspetitionforcedtheSecretaryoftheWar,Royall,toappointthecommission. The sole sources of evidence that the Simpson Committee relied on were the defendants and German clergy workingtofreeallwarcriminals. TheevidencethattheSimpsonCommitteegatheredregardingtortureoftheprisonerswasdubiousatbest. Moretimesthannot,theevidencecouldnotbearuptoexamination.Inonecase,thewitnesssaidhehadsaw fromthewindowthetorturingofanotherprisonerinaroomacrossthecourtyard.However,thewindowtothe roominwhichthetorturingwassupposedtohavetakenplacewasnotvisiblefromwheretheprisonersaidhe was. Van Rodens ludicrous claims of torture were the beginning of the revisionist movement about the Holocaust. To be fair, there were minor incidents of abuse of the prisoners, but nothing bordering on van Rodens bombastic claims. The whole incident of the trials of Malmedy massacre and its relationship to the revivaloffascisminthe1950swillbecoveredinalaterchapter.ThechargesraisedbytheSimpsonCommittee were wholly without merit. Perhaps the best summation of the Simpson Committee to derail justice comes fromthewordsofvanRodenasfollowsbelow: My conclusion is that the entire program of War Crimes Trials, either by International Courts, the members of which comprise those of the victorious nations, or by Military Courts of a single victor nationisbasicallywithoutlegalormoralauthority.ThefactremainsthatthevictornationsinWorld

WarII,whilestillatfeverheatofhatredforanenemynation,foundpatriotsoftheenemynationguilty for doing their patriotic duty. This is patently unlawful and immoral. One of the most shameful incidentsconnectedwiththeWarCrimesTrialsprosecutionshastodowiththeinvestigationsandthe preparationofthecasesfortrial.TherecordsoftrialswhichourCommissionexamineddisclosedthata great majority of the official investigators, employed by the United States Government to secure evidence and to locate defendants, were persons with a preconceived dislike for these enemy aliens, and their conduct was such that they resorted to a number of illegal, unfair, and cruel methods and duresstosecureconfessionsofguiltandtosecureaccusationsbydefendantsagainstotherdefendants. In fact, in the Malmedy case, the only evidence before the court, upon which the convictions and sentences were based, consisted of the statements and testimony of the defendants themselves. The testimony of one defendant against another was secured by subterfuge, false promises of immunity, andbymocktrialsandthreats.[65] ThewordsaboveofJudgevanRodenbetrayhisobjectivity.Hedisagreedfullywiththepremiseofinternational andthewarcrimestrials.Likewise,thejudgesoughttoconferuponthedefendantsthelegalrightspresentin civilcases.NeitherChurchillnorRoosevelthadintendedthetrialstobeanythingmorethanatrialbyamilitary tribunalinwhichcivilianrightsneednotapplyfully.UponreturningtoTexas,Simpsonwasofferedthejobof vicepresidentandgeneralcounseloftheGeneralAmericanOilCompany. One of the obstacles to justice at Nuremberg was the quality of the judges and their own political motivations.OneofthejudgesatNurembergwasRobertMaguirefromOregon,inanefforttoappeasetheright wing of the Republican Party. In the fall of 1949, Maquire decided to run for Oregons Supreme Court. In November1949, The American Bar Association JournalpublishedaspeechdeliveredbyMaguireentitledThe Unknown Art of Making Peace: Are We Sowing the Seeds of WW III? In the speech Maguire argued against furthertrials.[120] Likewise,McCloyhadthePeckcommissiontoadvisehim.ThePeckCommissionconsistedofDavidPeck,a judge in the New York Appellate Division, Fredrick Moran, chairman of New York Board of Parole and BrigadierGeneral Conrad Snow. The Peck commission was only authorized to reduce sentences and not to challengethelegaldecisionofguilt.WhiletheSimpsonCommitteewaslimitedtoreviewingthetrialsheldat Dachau,thePeckcommissionwaslimitedtothetrialsatNuremberg. While McCloy did block the executions of some war criminals before his appointment as High Commissioner of Germany, it wasnt until after his appointment as High Commissioner that he opened the doorstoLandsbergPrison.McCloyinsisteduntilhisdeaththatreleasingthewarcriminalswasnotpolitically motivated,however,nothingcouldbefurtherfromthetruth. Theindustrialiststrial,onceconsideredtobeofequalimportancetothemainNurembergTrial,concluded astheSovietsblockadedBerlin.EvenastheconvicteddirectorsofKruppandI.G.Farbenwerebeingtakento Landsberg,theyknewtherewaslittleprospectthattheywouldhavetoserveouttheirsentences.Germansand thefascistswithinAmericabelievedthattheywerejusttheinnocentvictimsofleftwingfanatics.TheNazis allies within the United States had been successful in smearing the trial as such. In Landsberg, the prisoners settled in a comfortable routine. Flick maintained control over his empire by weekly visits from his lawyer, accompaniedbywhicheverbusinessassociatewasneeded.FlickhadalsochosenHermannAbsashisfinancial advisor. Abs had been rehabilitated already with the aid of General Clay and was heading up the ReconstructionLoanCorporation. BythetimeMcCloyarrivedasHighCommissioner,therewasaconcerteddrivetorebuildGermanindustry asabulkheadagainsttheSoviets.AbsinformedMcCloythatthekeytoGermanysrecoveringandcooperation wasthereleaseoftheindustrialistsfromLandsberg.McCloywasalsoinformedofthesamebyKarlBlessing,a warcriminalthatAllenDullessaved.Infact,McCloywastoldthatbyanyGermanhecaredtolistento.[66] OnAugust28,1950,McCloyreceivedtherecommendationsofthePeckCommission.Thecommissionhad beenappointedonMarch20,1950andwascontroversialfromthebeginning.Infact,underthevariousstate laws it would have been illegal. Some of the cases that the commission was to examine had already been reviewed three times. Under most state laws, it would be illegal to appoint a second appellate court to reexaminethefindingsofanotherappellatecourt.Norwouldanappellatecourthavetheauthoritytopardon criminals, they would be limited to reducing the sentence or commuting death sentences to life in prison. Nevertheless,thePeckCommissionwasgivensuchauthority. OnthemorningthePeckCommissionreportedtheirfindings,theystatedtheyhadexaminedthejudgments ofandinterviewedalloftheprisonersalongwithinterviewingtheirlawyers.Whilethatsoundedreasonable

enou ughtotheine experienced, ,itwasnt.Ev venbeforea aclemencyhearinginfro ontofagover rnor,theviewsofthe distr rict attorney and trial ju udge are presented. Yet not a single prosecutor or judge fro om the tribu unals was consulted.Norha adthePeckC Commissionopenedasin nglepageofthetranscrip ptsanddocu umentaryevi idence.In ftranscriptsandevidenc cemadeavai ilabletoitwereneverop pened.Theonlymaterial fromthe fact, thecratesof s that was re eviewed was s the verdict ts, which alo one spanned 3000 pages s. The task of reviewing all of the trials mate erial from th he trials wo ould have been b an imp possible task k in the tim me McCloy allotted a for the Peck Commission. The e transcripts s, exclusive of the briefs s and docum ments filed, spanned som me 330,000 pages. A adingtheatt therateof12 200wordsa aminutewou uldneedseve enteenmont thstogetthr roughthe speedreaderrea Nure embergtrans scripts.[67] In reality, th he Peck Com mmission ser rved as noth hing more th han a blue ribbon r panel l that was politically p ivated. McCloy could fal ll back and use the com mmissions recommendat tions as an excuse to ju ustify his moti actio onsinfreeing gwarcrimina als. B BoththeSim mpsonandPe eckcommissi ionswerepo oliticallymot tivated.Asre evealedearli ierinthischapterthe Nazis were coun nting on thei ir agents and d sympathize ers in other countries, in ncluding the e United Stat tes, to do rbiddingafte erthecloseo ofthewar.Th heconservat tivefactiono ofCongressw wouldnotdis sappointthe eNazis.In their fact, the conserv vative Republicans by the e end of the 1940s had succeeding s i perpetrati in ing the myth h that the embergwar criminalswe erenotcriminals,butins steadthevic ctimsofRoos sevelt.Bythedecadesend,many Nure had cometoacce eptthatmyt th.Thiscons servativefact tionwasaro ousedtoactionbytheM MalmedyTria alandthe e charges ma ade by Nazis s within Ger rmany of torture and brutality. Incl luded in this fraction were w John false Rank kinandHaro oldKnutsen,w whoseproN Nazisentimen ntshavebee enpresentedinearlierch hapters.Alsoincluded were eFrancisCas se,Republica anrepresent tativefromS SouthDakota a,andJohnT Taber,Republicanrepresentative from mNewYork.

Part 10: 1 Freeing Krupp p

Perh haps the Con ngressional politics p behi ind the Simp pson and Pe eck commiss sions are be est illust trated with the example e of Republi ican Senator r William La anger from North N Dakot ta. Lang gerselection ntotheSenatein1940re eflectsthebe eginningofa ashifttoconservatisman nd the end e of the New Deal li iberalism. However, Lan ngers seatin ng in the Se enate was not smoo oth. B Beforerunni ngfortheSe enate,Langer rhadbeenelectedtwice tothegover rnorsofficein Nort th Dakota. In n his first term t as governor, Langer had run as the cand didate for th he Nonp partisan Lea ague. He had d been a mem mber of the Progressive Republicans s. He also ha ad enem mies within the Republic can Party, particularly p f from Gerald Nye and William W Lemk ke. Lang ger received the nomination and wa as swept into o the govern nors mansion in the 193 32 Senato or William La anger elect tion. His op pponents de efense of th he policies of the failed Hoover administratio a on contr ributedtoLa angerseasy yvictory.Lan ngercleaned doutmostex xecutivedep partmentsan ndappointed dpersons loyal ltohim.Hea alsoopenlys solicitedane ewspaper,Th heLeader.As subscriptiontoTheLeade ercostthesu ubscriber fivep percentofhi isstatepay.L Langerviewe edthisasale egitimatewa aytoraisecampaignfund ds. In 1934, Lan nger was in ndicted for soliciting s and collecting money for political pu urposes from m federal loyeesando ofconspiring gtoobstruct theorderly operationof fanactofCo ongress.OnJ June17,193 34Langer empl wasfoundguiltyandsentenc cedtoeighteenmonthsin nprisonand dsubjecttoa$10,000fine e.Onemonth hlateron tremovedLa angerfromo officeforhisconvictiono ofafelony.O OnMay7, July 17,theNorthDakotaSupremeCourt 5,theFedera alCircuitCou urtofAppea alsreversedt theoriginal conviction,a andordered anewtrial. Thefirst 1935 conspiracy trial resulted in a hung jury. A perjury y trial in De ecember fou und Langer not guilty. A A second December,se ettledtheiss suebyfindin ngLangernot tguilty.In19 936,failingtowinthe conspiracytrial,alsoheldinD Nonp partisanLeag gueendorsem ment,Langer rranasanin ndependenta andonceaga ainregainedthegovernorsoffice. L Langers seco ond term wa as again mar rked by cons spiracies and d corruption n. As an exam mple, Langer r directed theS StateMilland dElevatortopay35cent tsperbusheloverthema arketprice,w whilealsoapp propriatingn nearlysix milliondollarsfo orgeneralre elief.Ontheo otherhand,t threeofLangersclosefr riendswere foundtobe profiting ounty bonds at a discoun nted price and selling th hem back to the Bank of f North Dako ota at full by purchasing co e. In 1938, the State Bo oard of Equalization red duced the as ssessment on o property owned by the t Great value Nort thern Railroa ad by three million dollars. It was revealed r tha at an attorne ey of the rai ilroad had purchased $25,0 000ofworth hlessstocksf fromLanger,andthenne everaskedfo orthedeliveryofthestocks.Theconstantrun

of conspiracies and corruption stories during Langers second term contributed largely to his defeat in the RepublicanprimaryagainstGeraldNye. However,LangerwassuccessfulathisbidfortheSenatein1940.AlthoughLangerhadwontheelection, hisenemiesweredeterminedtonotallowhimtotakehisseat.WhenLangerwaspresentedtotaketheoathof officeonJanuary3,1941,apetitionwaspresentedtothesecretaryoftheSenatearguingthathenotbeseated. The matter was turned over to the Senate Committee on Privileges and Elections. The committee listened to muchtestimony,someofitverydamaging,regardingLangersconduct.Duringthehearings,Langerwasforced to admit that he had paid the son of the judge who presided at his second and third trials in 1935. The committeerecommended,byavoteof133,thatLangernotbeseated.[68] However,reflectingtheshifttowardsconservatism,thefullSenatevotedtoseatLangerbyavoteof52to 30. While the Democrats controlled the 77th Congress by a margin of 66 to 28, the vote seating Langer reflectedthatthecontroloftheSenatewaslargelyinthehandsofanallianceofRepublicansandconservative Dixiecrats.EmbarkingonhiscareerintheSenate,Langeradoptedastrictisolationistpolicy.HeopposedLend Lease,heopposedtheextensionofthedraft,andheopposedtheNATOallianceandtheformationoftheUnited Nations.Langerdid,however,voteforthedeclarationofwarfollowingPearlHarbor.WinstonChurchillwasa frequentobjectofLangersscorn.InMarch1949whileChurchillwastouringtheUnitedStates,Langercharged that Churchill had fought against the United States in the SpanishAmerican War. He was rebuked by his colleaguesintheSenatewhenTomConnallyof TexasstatedthatthehistoricalrecordshowedChurchillwas never in Cuba. In 1951, Langer telegraphed the pastor of Bostons Old North Church requesting that two lanternsbeplacedinthebelfrytowarnAmericansthattheBritishwerecomingpriortoavisitbyChurchill. While serving in the Senate Langer served on the Judiciary committee in one of Americas darkest hours 19531955 at the height of McCarthyism. Langer was one of only 22 Senators that voted against censuring McCarthy. On December 18, 1950, Langer delivered a speech a speech before the Senate blasting the Nuremberg Trials.Abriefexcerptfollowsbelow: ThesewartrialsweredecidedoninMoscowandtheyarecarriedonunderMoscowprinciples.These trials were essentially the same as the mass trials held in the 1930s by Stalin when Vyshinsky used treasontrialstoliquidatehisinternalenemies.AtNurembergtheCommunistsusedwarcrimestrialsto liquidatetheirexternalenemies.ItistheCommunistsavowedpurposetodestroytheWesternWorld whichisbasedonpropertyrights.[111] Langers speech opened a new dimension in the opposition to the war crimes by claiming the trials were a communist plot against property rights. Whether Langer was sympathetic to the Nazi movement or just a useful stooge duped by the Nazis, his actions certainly were in line with those outlined in the captured documentsofpromotingstrifebetweentheUSandtheUSSR. Followingthewar,oneofthemostinfluentialNaziagitatorsintheUnitedStateswasDr.WalterBecher,an antiCommunistrefugeeleaderfromtheHitlerregime.BecherhadjoinedtheNaziPartyin1931andbecame an editor of Die Zeit, a Nazi propaganda sheet in 1937. During the war, Becher worked for Goebbels propagandaministryasawarcorrespondent. Soon after the war Becher founded a proNazi newspaper in Germany and sought out influence in Washington. Two of Bechers early contacts in the Senate were McCarthy and William Jenner. Other early supporters of Becher in Congress were Francis Walter, B. Carroll Reece, Albert Bosch and Walter Judd. His scheme was simple; as a staunch leader in the anticommunist movement in Germany, if he could gain the supportofleadingpoliticiansintheUnitedStates,hisprestigeandstaturewouldgrowenormouslyathome. Among those that sent letters of support to Becher were William Langer, Prescott Bush, Strom Thurmond, ThomasDodd,RobertByrd,andStuartSymington.OthernotablesthathavesentlettersofsupporttoBecher are Herbert Hoover and retired US generals del Valle, Willoughby and Wedemeyer. In all Becher claimed supportfrommorethan150Congressmen. ThelistofBecherssupportersisavirtuallistofthehardrightofthe1950s.RepublicanSenatorWilliam Jennerfrom IndianachairedtheSenatesInternal SecurityCommittee,theSenatescounterparttotheHouse UnAmerican Activities Committee. In the 1952 presidential campaign, he led the attack on the Truman administration charging George Marshall as soft on communism. Francis Walter, Democratic Representative fromPennsylvania,wasamemberoftheHouseUnAmericanActivities.WalteracceptedmoneyfromDraper, thefounderofthePioneerFundandnottobeconfusedwithGeneralDraper.RepublicanB.CarrollReecefrom

Tennessee headed a committee investigating the Ford and Rockefeller foundations as agents spreading communism. Walter Judd, Republican Representative from Minnesota, was a principal in the Christian Anti CommunismCrusade.JuddwasalsoamemberoftheCommitteeforOneMillionandamemberofthefirstUS branch of World AntiCommunist League, a group that is infested with former Nazis and maintains a close relationshipwiththeReverendMoon. In1955,BecherdecidedtoinstallapermanentexpelleeinWashington.HischoicewasDr.RichardSallet,a former Nazi diplomat. Sallet was the Nazis expert on America. Captured Nazi documents reveal Sallets expertise.SeveralhundredpagesattesttohissuccessinlaunchinganantiSemiticcampaigninthe1930s.The readershouldnowrecallfromanearlierchapterthatSallethadhelpfromtheRepublicanPartyinpayingfor broadcastsbyknownNazisinNewYorkState.AnotherprograminwhichSallethadamorelimitedsuccesswas inunderminingtheconfidenceoftheAmericanpeopleinRoosevelt.[104] Another Naziinfested organization with close ties to this same group was headed by John Grombach. Grombach, a former G2 officer, recruited former Nazi SS officers, Hungarian Axis quislings, and Russian nationalists. His network of former Nazis produced intelligence offered to the State Department, CIA and corporations. Grombachs operation originally began as a G2 operation to rival the CIA, but soon evolved beyondthat.Although muchofGrombachsfundingdidcomefromtheUnitedStates government,Grombach receivedalargeamountoffundingfromN.V.PhilipsGloeilampenfabriekenCorporationoftheNetherlandsand its American affiliate, Philips North America. One of Grombachs prized assets was Karl Wolff, a major war criminal. GrombachhadvisionsofgrandeurwithhiseyesontheholdingthepositionofDirectoroftheCIA.Highon his list of political targets were those that implemented President Trumans containment policy. Grombach viewedsuchpeopleasGeorgeKennanandCharlesBohlenastoosoftoncommunism.Hefoundreadyalliesin McCarthyandJenner.Bythe1950s,GrombachandhisnetworkofNazisspecializedingatheringdirt.Hewould thenleakthesmearstohispoliticalallies,thechiefbeneficiarybeingJoeMcCarthy. ThisverybrieflookattheCongressionalpoliticsoftheconservativesandRepublicansbehindtheSimpson and Peck committees establishes three significant conclusions. The first being the release of the Nazi war criminals was politically motivated by those that held sympathetic views towards the Nazis previously. Secondly,andmoreimportantly,itconfirmstheNaziplantocarryonthewarafterthehostilitieshadceasedon thebattlefieldthatwerepresentedearlierinthischapter.ThosecaptureddocumentsrevealedthattheNazis wereplanningtousetheirsympathizersafterthewartoprotectthemandreestablishfascism.TheNazismust havebeenverypleasedbytheactionsoftheRepublicanconservativesinCongress. Finally,itfullyestablishesthattheemergenceoftheColdWarwaslargelyduetoNaziintrigues.Likewise,it confirms the Nazi plans in the captured documents were well thought out in using communism as a ploy to ease the burden on Germany and the terms of peace. The same faction of conservatives that were the most vocalNazisympathizersinCongresswasalsothemostvocalcoldwarriors.TheintertwiningoftheColdWar withNaziintrigueswillbeleftforthechapteronthe1950s. Originally, there were two trials planned for Nuremberg. The second trial was to be the trial of the industrialists. The industrialist trial at Nuremberg was canceled and instead of being held by the military tribunal at Nuremberg was held separately in the American zone. By the end of the first trial at Nuremberg, chief American Prosecutor Robert Jackson had succumbed to the American disease of an irrational fear of communism and became an outspoken critic of holding the second trial. There is no better summary of the halfheartedeffortputforthintryingtheNaziindustrialistsandtheeffectivenessoftheNaziplantoprovokea warbetweentheSovietsandtheUnitedStatesthanthewordsofJacksoninMaynearthecloseofthefirsttrial. Atrialinwhichindustrialistsaresingledoutmaygivetheimpressionthattheyarebeingprosecuted merelybecausetheyareindustrialists.Thisismorelikelysincewewouldbeassociatedinprosecuting themwiththeSovietcommunistandtheFrenchleftists.Ihavesomemisgivingsastowhetheralong public attack concentrated on private industry would not tend to discourage industrial cooperation with our government in maintaining its defense in the future while not at all weakening the Soviet position,sincetheydonotrelyonprivateenterprise.[81] JacksonswordswerethefinalnailinthecoffinofRooseveltspledgetobringtheNazisandthosethataided them to justice. American corporations could now breathe easily. There would be no extended trial of Nazi industrialiststoexposetheirtreasonoustradewiththeNazis.

Returning gtothewarcrimestrials sandclemen ncy,General Clayhadbee enforcedto stoptheexe ecutionsofal ll thedeathsen t ntencesdue toSenatorL Langerscom mmittee.Whil letheconser rvativeswith hintheUnite edStateshad d s succeededin nswayingAm mericanopinionthatthe warcriminalswerevictimsofRoosevelt,itwasc clearby1950 0 t thattheWes stGermansr rejectedthev validityofth hetrials.Lea adingthecau useofwarcr riminalsinG Germanywas s t theleadershi ipoftheGerm manCatholic candProtestantchurche es.BishopFa argoMuenchhadgoneas sfarastocal ll f forageneral amnesty.[69 9] ementpresen ntedearlier inwhichLan ngercompar redtheNure embergTrials Thereadershouldrecallthestate s t tothepurges sbyStalin.In nthespeech, ,Langerclaim medthatthe eindustrialis ststrialwas partofacom mmunistplot a aimeddirectl lyatpropert tyrights.The eindustrialis stswouldbe someofthefirstbenefic ciariesofMcCloysaction n. M McCloy had arrived in Germany G in 1949; 1 by mid1950 the Peck Comm mission had completed c it ts review. On n January31,1 1951,Landsberg:ADocu umentaryRe eportwasm madepublicco ontainingsta atementsbythePeckand d S Simpsoncom mmissionsan ndMcCloy.Fo ollowingthe commission nsrecommen ndationMcCloyfreedonethirdofthe e inmates at Landsberg. L In I one stroke of the pen, p McCloy had freed all of the lawyers, exe ecutives and d s convicted in i the Farben, Flick and Krupp trials s. Those tha at had been the t most res sponsible for industrialists b buildingtheT ThirdReicho onthebacksofslavelabo orwerenowfree. McCloyw washardlyin napositionin nwhichheco ouldgrantageneralamn nestyafterPr residentTrum manspokein n January1951 1.TheStateD Department slegaladvis sorJohnRaym monddrafte edamemoon nwarcrimes sforTruman n t thatwasaw holesalereaffirmationof ftheoriginalNuremberg gandDachau utrialsanda anunequivoc calargumen nt a againstamne esty. Therelea aseofKrupp pprovedtob bethemostc controversia al.However, onceagainb background eventsareo of importance in i understan nding the eve ent. The United States was w already embroiled e in n the Korean n War. A new w w warscarewa asspreadinglikewildfire eacrosstheA Americanhom meland.Fear rsofaSoviet tinvasionofEuropewere e e extravagant. s to the vuln nerability of Europe had d opened in Congress. Se enator Taft charged tha at A debate as P President Tr ruman had already usurped his au uthority by defending Korea K and had h no right t to increase e A Americantro oopstrength inEurope.F FormerPresi identHerber rtHooverarg guedthatitw wouldbepo ointlesstotry y a anddefendE Europe.Newsfromthew warwasdark k.UNforcesw weretaking aterriblebe eatingatthe handsofthe e R Chinese. MacArthur Red r asked whet ther Washin ngton had co onsidered th he possibility y of being driven d out o of K Korea.Onthe edayMcCloy ysignedther release,Fran nkfurtradiow wasreportin ngtheplightofaUnitedS StatesFrance e c combatregim menttrapped dtwelvemile esbehindene emynorthof fYoju.[71] InthetrialofKrupp, adecisionw wasmadeto tryAlfrieda andnothisf fatherGustav v.The later was dee emed too sic ck to suffer the t rigors of f a trial. Afte er the trial and his convi iction, A Alfried retained the ser rvices of an American attorney, a Ea arl Carroll. Carrolls C term ms of e employment were simpl le, to free Krupp K and ge et his prope erty restored d to him. Ru umors r reported Car rroll was to get five per rcent of everything he could c recove er or roughly y $25 m million. Some dispute th hat Carrolls fee was tha at high, but needless to o say, it was s very h handsome.In ndeed,somu uchsothaton nceKruppwasfreed,Car rrollreported dlyretired. Alfried Krupp Carrolls argumentfo orKruppsre eleasewasba asedfalselyo onthreemainpremises.First, C Carroll argue ed that Alfried held a ra ather junior position at the Krupp firm. f Second dly, Carroll argued a under A American law w assets cou uld only be fo orfeited if th hey had been n acquired il llegally and this t wasnt the t case with h K Kruppsprew warassets.F Finally,Carrollarguedth hatKruppw wasavictimo ofdiscrimina ationbecaus sehewasthe e o onlywarcrim minalwhoseassetswere econfiscated d.Theanswe eringbriefre espondedto allthreeclai ims.Thefirst c claimwaspr rovenfalsebyaninterfirmcircularof1943,whic chdeclaredA Alfriedhadt thefullrespo onsibilityand d d directionoft theentireen nterprise.Thesecondclaimpointedo outthattheN Nurembergt trialsoperat tedunderthe e lawofthefou urpowercoa alitionandnotAmericanlaw.Undert thefourpow weragreemen nt,theforfeit tureofassets s w wasspecified d.Finally,Kru uppwasnottheonlyind dustrialistwh hoseassetsw wereconfisca ated.Thebriefmadenote e o ofthefactth hatFarbenw wasacorpora ationandnot tsolelyownedliketheK Kruppfirma andinthatin nsuchacase e, f forfeiturewo ouldpenalize ethestockho oldersforthe ecrimesofth hemanageme ent.[72] Neverthe eless,infreei ingKruppan ndreturning tohimthea assetsseized,McCloyjust tifiedhispos sitionbyfirst c claiming that t Alfried was s a playboy with no real authority in i the firm. Secondly, S Mc cCloy portra ayed Alfrieds s N Nazi connect tions as indiscriminate youthful y distractions. However, the record r is qui ite clear that t Alfried was s m morethanay youthfulplay yboythathun ngaroundw withabadcro owd. The record of Krupp is clear. Kru upp was the e largest emp ployer of sla ave labor in Nazi Germa any. By 1941 1, G Germanywa evereshortag geoflabor.T Theshortage ewascompo oundedbyH Hitlersvetoo ofemploying g sfacingase w women.Both hBritainand dtheUnited Statesfilled manyofthe ejobsindefe ensefactorieswithwome en.American n

housewives turned out in droves to work in West Coast aircraft plants in response to the famed Rosie the Riveter posters. Over three million American women, many in their teens, were filling jobs in war related industries.InEngland,overtwomillionwomenwerehiredtoworkinmunitionsfactories.DuetoHitlersveto, less than two hundred thousand women were employedas cooks and maids primarily. It wasnt until July 1944beforeHitlerreversedhisbanontheemploymentofwomen.Bythen,itwastoolateandAlliedbombing disruptedtheregistration. It wasnt until Albert Speer turned over his labor responsibilities to Fritz Sauckel that manhunts became coordinated and routine in the occupied territories. Men and women would be rounded up and transported backtothefatherlandasslavelaborers.Kruppwasoneofthemostpersistentcustomersofthenewlaborczar. At Nuremberg Brigadier General Walter Schieber conceded that Krupp negotiated directly with the SS for concentrationcampinmates.[73] KruppsattorneysarguedthatAlfriedhadnoroleintheimpressmentofforeigncivilians.Whileintheory theroundupswereofficialactsoftheNazigovernment,onceconcludedtheindustrialistswereinvitedtotake theirshare.Somerefused;however,thereisnorecordofKruppeverrefusingtotakehisshare.Alfriedsfiles are full of incriminating evidence. In the third year of the war, his files revealed that the slave labor was reaching Essen two and sometimes three months after they had been requisitioned. Krupp immediately dispatched three executives to formally lodge protests with the Wehrmacht, the Gestapo and the SS. Alfried appointed Heinrich Lehmann as his liaison man with the German Labor Front and director of labor procurementandrecruiting.Withthecooperationofauthorities,LehmanndraftedentirefactoriesinFrance.In Holland Lehmann drafted 30,000 ironworkers and shipwrights, many sent to Germany in chains when they showedsignsofreluctance. Oftentimes Alfried would complain as to the quality of workers he received. In a file note from 1942 he noted: IamundertheimpressionthatthebetterRussianworkersareatthistimebeingchosenforworksin centraland easternGermany.Wereallygetthe rejectsonly.Justnow600Russiansconsistingof 450 womenand150juvenilesarrived.[74] AnycomplaintfromKruppdrewinstantattentioninBerlin.OnJuly8,afranticsubordinatesubmittedareport toSpeerdenyingthatKruppwasgettingpoorgradeSlavs.Excerptsfromthereportreadasfollows: TherequirementsofthefirmFried.KruppA.G.forreplacementforGermanworkersdraftedintothe armed forceshavebeen metcurrentlyandintime.Thecomplaintsofthe Kruppfirm aboutallegedly insufficient labor allocations are unfounded. I have once again asked Sauckel to send Krupp 3,000 to 4,000moreworkersinentireconvoysfromtheRussiancivilianworkerspresentlyarrivinginService CommandVI.[74] TheabovequotesclearlyprovetheguiltofKruppinemployingslavelaborfromtheoccupiedlands.Theastute readershouldalsonotethattheprogramwasdrivenfromthesideoftheindustrialists.Infact,thequotesshow that Krupp was somewhat of an antagonist of the Nazis in demanding more and better quality slaves. Thus onceagaindestroyingthemyththattheNaziPartywasallpowerful;itwasntthepartythatheldthepower,it wasthemoneyedindustrialistsbehindthepartythatwasallpowerful. Perhaps the best example of the industrialists being the real power in Nazi Germany comes with the Jewishproblem.TheNaziPartyandtopNaziofficialswerecommittedtotheEndlosungorFinalSolutionand vehementlyopposedtotheenslavementofJews. Itwasntuntil1942thattheSSbeganquestioningthepolicy. Endlosungwasworking,butthecostofthe ammunitionwasshockingandhurtingthewareffort.ItwasthenthatHimmlerbeganexperimentingwithgas vans.AnApril25,1942memorandumfromtheKruppheadquartersnotedthattoproduce80newSIGs(heavy infantryguns)anewexpansionwasneeded.Alfriedrecommendedmanufacturingintheconcentrationcampin Sudetenland. Four weeks later Alfried put the question to Hitler. In his appeal to Hitler, Krupp affirmed his belief that every party member was in favor of the liquidation of Jews, Gypsies, antiNazis, criminals and antisocials. However, Krupp believed they should contribute something to the fatherland before being exterminated. Properly driven, each could contribute a lifetime of work in months. Hitler hesitated. Krupp persisted. Soon Krupphadthetrickinhand.Theanswerwasmerelyeconomicsorbribery.KruppproposedpayingtheSSfour marksperdiemperinmate,fromwhichsevententhsofamarkwouldbedeductedforfeeding.Oppositionto

hisnewproposalvanishedovernight.InSeptember,HitlersignedtheorderauthorizingtheuseofJewishslave labor. Krupp had anticipated Hitlers order of September 18 and teletyped a message to Sauckels Berlin office notifying the labor director that Krupp was ready to employ between 10501100 Jewish workers. In his teletype,Krupprequestedworkerswithspecificskillsinmetalworking.Krupphadanimmediateobjective,the productionoffuses.TheSudetenlandcampwastoosmallformassproduction,soKruppwasproposingtostart production at Auschwitz. Assured that Auschwitz would have ample labor supplies, the Krupp executives approved two million marks for the project. While Krupps project was delayed, largely due to the commandantsviewthattheworkshouldbedonebyGermans,KruppcontactedOberstrumfuehrerSommer,a juniorSSofficerstationedinSpeersoffice.Krupphadmettheofficerbeforeandrequestedfromhimarecord ofallskilledJewspickedupinthecapitalandshippedtotheeast.Withhislist,Kruppsubmittedarequestfor 500prizedJewsanddemandedimmediateaction.[75] WiththeextensionofthewarandAlfriedsriseinpower,theuseofslavelaboratKruppincreased.Bythe endofthewar,Krupphademployednearlyahundredthousandslavesinoveronehundredfactories.Slaves werebeatenandtorturedregularlyinKruppsfactories.Theslightestinfractionbyaslavecouldbringonalife threateningbeating.BothshelterandfoodfortheinmatesemployedbyKruppwasinadequateatbest.Many inmates were forced to sleep on the ground unprotected from the elements. While the cruelty and barbaric treatmentoftheslavelaborersinKruppscampswasunsurpassedanywhereinGermany,spacesimplydoesnt permit an adequate description. However, to give the reader some insight into the conditions, the reader should be aware that conditions were so bad at Krupp that General Adolf Westhoff of the OKW stated that KruppstreatmentofRussianprisonersdidnotmeetwiththeWehrmachtsapproval. While there is no evidence of Krupp ordering his slaves beaten or tortured, there is also no evidence of Kruppeverdiscouragingthebeatingsandtorture.ThereisevidencethatKruppwithheldtheprisonersfood allotment. Additionally there is evidence that Krupp was aware of the beatings and torture of slaves making himafullaccomplice. Drexel Sprecher, a prominent Washington attorney, observed the Nuremberg Trials and concluded that Kruppstreatmentofslavelaborwasfarworsethananyotherfirm,includingI.G.Farben.Sprecherreasoned thatcauselayinKruppsonemanrule.Hispowerwasabsolute. The charge of slavery was the most serious charge lodged against Krupp. Krupp was equally guilty of plunder.BeforethealliedinvasionofNorthAfrica,KruppruledavastempirestretchingfromtheUkraineto the Atlantic and from the Mediterranean to the North Sea, the bulk of which had been procured from their originalownersintheoccupiedlands.KrupptouredEuropeinaLuftwaffefighterlookingforplantstoaddto hisempire. Usingsubterfuge,theplantshad beentechnicallypurchased; therealitywastheplantshad been signedovertoKruppunderduressandthreatsofdeathfromtheNazis. One such plant, actually three separate plants, was the Elmag factories in Alsace. The plants had been seizedandtransferredtoKruppundertheregulationscoveringenemyproperty.WhatsettheElmagfactories apart from the hundreds of other plants Krupp looted were the actions taken by the workers following the Allied invasion of Normandy. Once the Allies had established beachheads at Normandy, workers started to disappearatanalarmingrate,disappearingintothehillstoawaitliberation.Kruppthendispatchedroughly60 slavelaborerstoconstructacampfor1250more.TheworkersatElmagweresoalarmedoverthetreatmentof theslavesthattheyopenlyprotestedandthreatenedtostrikeaslongastheconcentrationcampinmateswere treatedsobadly.AtNuremberg,ErnstWirtz,theheadoftheconcentrationcamp,wassentencedtoeightyears. As the Allies closed in on the Alsace, Krupp removed the slavelaborers and simply removed the factories to Bavaria.[76] ThereadershouldnotetheactionsofthoseworkmenatElmag.EvenunderthebarbaricruleoftheNazis, some men stood up and refused to be crushed by the yoke of fascist despots. Their defiance should be remembered and praised. Their actions points to the guilt of those that simply turned their backs to Nazi atrocities.Cowardsshouldhavenopeace. WhileAlfriedsfather,Gustav,initiallyopposedHitler,AlfriedwasanearlysupporterofHitlerandtheNazi Party.AlfriedjoinedthepartyandtheSSin1931.Throughoutthe1930s,Alfriedremainedaloyalcontributor to Himmler and the party. In the SS, Alfried rose to the rank of colonel. McCloys portrayal of Alfried as an indiscriminate youth was nothing more than a smoke screen. In fact, Alfried was born a year after Adolf Eichmann. Alfried in fact was part of the generation that included Martin Bormann, Heinrich Himmler and ReinhardHeydrich.

This brief look at Krupp totally destroys McCloys argument that Krupp was just an irresponsible youth withnorealauthority.Infact,KruppwieldedanextremelylargeamountofpowerwithintheThirdReich.He wasinstrumentalinstartingtheNaziprogramofexterminationthroughwork.Thisbrieflookatthecrimesof Krupp only scratches the surface; space simply does not permit a more detailed look. However, there is an abundanceofliteraturefortheinterestedreadertoexplore.ThusitshouldhavebeennosurprisethatMcCloys pardons were met with considerable controversy in the United States and Great Britain. McCloys fabricated viewofKruppwasatotallie.Nevertheless,thisNaziwarcriminalwouldreceiveanevengreaterrewardinthe span of ten short years after walking out of the doors of Landsberg Prison. By the end of those ten years, Kruppsindustrialempirewasthetwelfthlargestfirmintheworldandtheonlyonesolelyowned. GoodNazislikeKruppcouldcountonbeingrewarded.However,theJewishvictimsofNaziwarcriminals couldcountonreceivingnothingoratbestameagersettlementfortheirslavelabor.In1959,underthethreat of a lawsuit by an American lawyer representing Jewish survivors of the Krupp camps, Krupp announced a voluntarysettlement.Afundsettingasidefourmillionmarkswouldpayeachsurvivor$750fortheirordealin Krupps camps. The payment figure was soon cut to $500 when more survivors were found than Krupp had anticipated.[77]Thefundranoutofmoneybeforeallsurvivorshadreceivedtheirmeagerpayment.

Part 11: Cover Up

AnotherthatwalkedoutthedoorsofLandsbergPrisonwithKruppwasFriedrichFlick.Flickwasfoundguilty of one account of using slave labor at Nuremberg. For the most part, the judges at Nuremberg were poorly qualifiedandhostiletotheprosecution.Thehostilityofthejudgestotheprosecutionwasreadilyapparentin the trial of the industrialists. Three judges ruled that the director and owner of a corporation should not be held accountable for slavery and looting by his companies, unless the prosecution could prove that he personally ordered each particular crime to be carried out. Such an erroneous ruling set up a defense of necessity,thecorporateequivalentofactingunderorders. Amazingly,thelegalprecedentleftbythisrulingisthatanineteenyearoldsoldiercanbefoundguiltyof warcrimesforfollowingorders,buttheheadofacorporationemployingthousandsofslavescannotbe.The readershouldbewellawareof acoupleof factorsbesidesunqualifiedjudgesthatcontributedto sucha bad decision.First,thejudgesbroughttheirownprejudiceswiththemtoGermany.ThesadstateofUnitedStates corporate law has left corporate directors and owners virtually immune from prosecution, regardless of the severityofthecrime.NocorporateexecutiveintheUnitedStateswasevertriedforthedeathofanemployee or consumer of the product, regardless of the severity of the crime or the complicity of the executive. The judgeshadobviouslybroughtalongsuchbeliefs. Secondly, a panic state was already emerging over the evils of communism and the prosecution was constrained to frame their prosecution as the crimes of individuals and not an attack on capitalism, to avoid chargesofsocialismandcommunism. Flick,likeKrupp,wasanothersteelandcoalbaronthathademployedroughly48,000slavelaborersfrom the concentration camps. An estimated eighty percent of these workers died. Between 1929 and 1932 Flick donatedmoneytoseveralrightwingpartiesincluding50,000ReichsmarkstotheNazis.In1935,Flickjoined Himmlers Circle and in 1937 joined the Nazi Party. Between 1936 and 1944, Flick contributed 100,000 ReichsmarksannuallytoHimmlersCircle. Upon his release, Flick immediately set about rebuilding his empire. By 1955, Flick owned over 100 corporations, including a forty percent share of DaimlerBenz AG. He was reportedly the richest man in Germanyandthefifthrichestmanintheworld.Uponhisdeathin1972,Flickleftoverabilliondollarstohis son.TheslavelaborershaveyettoreceiveanycompensationfromFlick. ThestoryofFlickdoesnotendwithhisdeathorunpaidslavelaborers,besidesrebuildinghisempireFlick cultivatedandrebuilthispoliticalconnectionsfollowinghisreleasefromprison.Suchinfluenceextendstothe present.In1975,hissonsolda29percentshareinDaimlerBenz,incurringahugecapitalgaintaxableunder Germanlawunlesstheprofitwasreinvestedbeforetheendof1978inprojectsjudgedbythegovernmenttobe especially beneficial to the national economy. Although the son invested over half the money in the United States,acquiringa29percentshareinGraceChemical,hewasgrantedtaxexemptstatus. OneofthebeneficiariesofFlickswastheChristianDemocraticPartyandGermanChancellorHelmutKohl. FormerNazis,includingFlick,contributedhandsomelytotheChristianDemocratsfollowingthewar.Itisquite possiblethatiftheAllieshadnotrelentedinthe4Dsprogram,Kohlmayneverhaverisentopower.In1972 the old leader of the Christian Democrats, Rainer Barzel, stepped down. Leaving politics, Barzel accepted a

lucrativepostataFrankfurtlawfirm.Barzelmanagedtoearn$700,000inlegalfeesfromtheFlickGroupfor what Der Spiegel depicted as phantom services. Barzels choice for a successor was none other than Helmut Kohl.Kohlhasadmittedtoacceptingpaymentstotaling$53,000fromtheFlickgroupduringtheyears197779. TheGermanpress,however,reportsthatthesumswerefourtimeslarger. InthecaseofFlick,thereisadirectlinkofaNaziwarcriminalthatexertedhispowersoonafterleaving prisonininfluencingtheshapeandpoliciesofthepostwargovernmentofGermany.Thereisnoquestionof Flicksguiltofemployingslavelabor.ThereisnoquestionthatFlickrefusedtopayrestitutiontothevictimsin hisslavelaborcamps.Yet,withinthespaceoflessthantenyearsfollowingthewar,hewasaforcebehindthe scenesinGermanyspolitics.Onecanonlywonderwhowonthewar. Flicks connections went far beyond the new German government, extending as far as the White House, through the Bush family. On March 19, 1934 The New York Times reported that the Polish government was fightingagainstAmericanandGermanstockholderswhocontrolledtheUpperSilesianCoalandSteelCompany. The Times reported further that the company had been accused of mismanagement, excessive borrowing, fictitiousbookkeepingandgamblinginsecurities.InDecember,warrantshadbeenissuedforseveraldirectors accused of tax evasion. They were German and fled to Germany for sanctuary. They had been replaced with Poles. Flick retaliated by restricting credits until the new Polish directors were unable to pay the workmen regularly. The Times noted that twothirds of companys stock was owned by Flick and the other third was ownedbyUSinterests. The owner of the US interest was none other than the Harriman Fifteen Corporation (HFC). President of this American corporation was George Walker, Prescott Bushs fatherinlaw. The sole directors of Harriman FifteenwerePrescottBushandAverellHarriman.HarrimanalsoservedaschairmanofConsolidatedSilesian SteelCorporation.TheholdingsofBrownBrothersandHarrimanofConsolidatedSilesianwereasmallpartof a larger partnership between Brown Brothers and Harriman and the German Steel Trust. The relationship between Brown Brothers and Harriman and the German Steel Trust was established through Thyssen in the 1920s. Flick was a major coowner of the trust. The German Steel Trust was also one of the most generous donors to Hitler and his SS and SA before 1932. Additionally, the Steel Trust figured prominently in the appointment of Hitler as chancellor. The partnership between the Trust and Brown Brothers and Harriman wassupervisedbyPrescottBushandGeorgeWalker.TherelationshipextendedtoUnionBanking,whichmade PrescottandWalkerbankersfortheTrust.UnionBankingwasseizedfromPrescottBushduringthewarfor tradingwiththeNazis. TherelationshipofBrownBrothersandHarrimanwiththeGermanSteelTrustextendedacrosstheseato England. Brown Brothers was an English firm that had merged with Harrimans firm after the stock market crashof1929.InEngland,itcontinuedtooperateunderitstraditionalnameofBrownShipley.BrownBrothers hadatraditionthatserveditwellinsupportingHitler.DuringtheCivilWar,BrownBrotherswererenowned fortheirshipsrunningtheblockadeandtransportingcottonfromthesouthtoEngland. In1931,theGovernoroftheBankofEnglandwasMontaguColletNorman,grandsonofthebossofBrown BrothersduringtheCivilWar.NormanwasknownasthemostavidofHitlerssupporterswithinBritishruling circles.WhentheheadoftheBankofEnglandvisitedNewYork,healwaysstayedatthehomeofPrescottBush. WhilethefulldetailsoftheBushfamilytiestotheNaziswillbeexploredinalaterchapter,thisbrieflookhas establishedthatmuchoftheBushwealthwasderivedfromtheconcentrationcampsinNaziGermany. Thyssen was never charged at Nuremberg; however, a German court later found him guilty and seized fifteen percent of his empire for reparations to the slave labors he employed during the war. By the 1970s, Thyssen had reassembled a considerable empire spanning the globe. In the United States, Thyssen, Inc. was headquarteredat1114intheW.R.Grace&Co.AnotherholdingofThyssenwasIndianHead,locatedat1200 AvenueoftheAmericas,NewYorkCity.IndianHeadwasawiderangingconglomerate,with42plantsinthe UnitedStatesandannualsalesof$604million.OneholdingofIndianHeadwasPeerlessPumps,purchasedin 1970.AnotherholdingwasBuddManufacturing,purchasedfor$275millionincash.Bybuyingincashthere were no SEC reports to file. Indeed both Thyssen, Inc. and Indian Head are not required to file SEC reports becausetheyareprivatelyheld.IndianHeadhassincechangeditsnametoThyssenBorrnemiza. Following the war, the government of Germany denied vehemently the guilt of the war criminals, particularly the guilt of the industrialists. The government was not alone in denial; German business leaders were atthe forefrontin proclaiming Germanbusinessesinnocent ofcollaboratingwiththeNazis.Duringthe Cold War only a few pamphlets and publications condemned the return of the Nazi industrialists. The corporationshiredjournalistsandhistorianstofloodthemarketsworldwidewithmaterialexoneratingtheir

corporationsandplacingthefullblameontheNazileadership.Thebulkofthematerialproducedwasnothing shortofawhitewash.ThereaderisremindedofhowthispropagandablitzfitstheNazisplanonuseofforeign agentstoregainpowerinthecaptureddocumentspresentedearlierinthischapter. ThecontrolexertedoverthepressbyformerNazibusinessmenfollowedthewaralmostimmediately.In 1949,theautobiographywrittenbyRichardWillstatter,aJewishNobelPrizewinningchemistwaspublished posthumously.WillstatterhadfledNaziGermanyin1939andwrotehisautobiographyinexileinSwitzerland. In his autobiography, Willstatter included a short passage critical of the antiSemitic remarks made by Carl Duisberg,thefounderofI.G.FarbenwhenWillstatterresignedfromtheUniversityofMunichin1924. Theshortpassagewasunremarkableandwouldhavepassedthroughhistoryunnoticedbyallexceptfora few scholars, if executives from Bayer had not intervened. Bayer was part of I.G. Farben. Heinrich Horlein, a Bayerdirectorandretiredexecutivelaunchedanalloutattack,besmirchingthereputationofWillstatterand promotingthereputationsofCarlDuisbergandBayer.HorleinhadfoundhimselfinthedockatNurembergbut was acquitted. For a short term, an open debate persisted in Germany over the culpability of the German chemical industry and war crimes. Bayer and Horlein soon prevailed. Pressing the publisher of Willstatters autobiography, the publisher agreed to delete the short passage in all future editions and the English translation. German corporations still protect their image in the most ruthless fashion. Twentythree years after the publishing of Willstatters autobiography, another controversy arose. In 1972, F.C. Delius, a German satirist, published a mock history of Siemens, coinciding with the 125th anniversary of the companys founding. Deliuss book was not immediately recognized as a satire. Within a month, Siemens took action against the publisher.Afterthreeyearsoflegalprocedures,aprovincialappealscourtinStuttgartruledthatseveralofthe books claims, including the Auschwitz assertion, were false, and ruled that Deliuss ideas, despite being presentedassatire,weredamagingtoSiemens.Inthesettlementreached,bothpartiesagreedtohavethelines indisputeblackedoutinallfutureeditions.Thelatestedition,publishedin1995,stillhasthelinesblackedout. While some Americans may feel smug and claim such censorship occurred in Germany, the English translation of Willstatters book does not contain the passage that was offensive to Bayer. The effort in censorshipwasnotjustcenteredinGermany;itwasglobalasalreadyalludedto.Perhaps,thebestexampleof historical revisionism and whitewashing was published within the United States. In several chapters, the relationshipbetweentheproNaziAmericaFirstgroupwiththeAmericanSecurityCouncilismentioned.One member of both fascist groups was the founder of Regency Press, publisher of many of the smears made against President Clinton. The first two books published by Regency are prime examples of proNazi sympathizerswhitewashingtheNazicrimes.OneofthebookswascriticaloftheAlliedbombingofGermany. The other book was critical of the Nuremberg Trials, in an effort to whitewash the Nazi crimes. Both books containnumerousfactualerrorsandpresentarevisionistviewofhistorythatinnowayconformstothetruth. The censorship and whitewashing of Nazi atrocities and collusion of German business with the Nazis continues to the present day in the United States. One of the largest publishers in the United States is the former Nazi publisher Bertelsmann. Bertelsmanns publishing empire includes Random House and Bantam DoubledayDell,anditisapartnerwithBarnes&NobleinanewInternetbookstore.Bertelsmannalsoretainsa largeshareofAmericaOnline,andownsbookclubs,magazines,newspapersandmusiclabelssuchasRCA;co owns CLTUFA, Europes biggest TV and radio company. Bertelsmann also owns Brown Printing Company, although that information is conspicuously missing from the web pages of Brown Printing. Brown Printing prints many of the popular magazines, including such titles as Byte and Seventeen and a host of scientific journalssuchasScienceandTheNewEnglandMedicalJournal.Bertelsmannistheworldsthirdlargestmedia empireandthelargestpublisherofEnglishlanguagetradebooksintheworld. BertelsmannmakesaconcertedeffortathidingitsNazipast.Initsofficialcorporatehistory,Bertelsmann propagatesthemyththatitwasclosedbytheNazisforrefusingtotoethepartyline.Thatsimplyisamythand a lie. Bertelsmann was not closed by the Nazis, and Bertelsmann willingly cooperated with the Nazis. When investigative reports inquired to Bertelsmann to verify their false claim of being closed by the Nazis, all referencestotheNazierawereremovedfromtheirwebpages. Throughout the 1930s, Bertelsmann published books favored by Goebbels. Some of the titles published werePeopleWithoutSpace(VolkohneRaum)andBetweentheVistulaandtheVolga.Thelattertitlewasan extremelyantiSemiticdiatribeclaimingtheJewsmassacredUkrainianwomenandchildren. FollowingthewarBertelsmannsapplicationforapublishinglicensewasturneddown.HeinrichMohn,a member of the founding fathers and principal owner and chief executive, had conveniently omitted his

membershipinSSandhissupportforHitlerYouth.In1949,Heinrichsteppeddownaschiefexecutiveandwas replaced by his son, Reinhard. Bertelsmann then reapplied for a publishing license. According to the denazificationfiles,ReinhardservedintheLuftwaffeandintheeliteHermannGoringDivision.[78]Withthe ColdWaralreadyemergingandthefailureofthe4Dsprogram,thelicensewaspromptlygranted.Itishardly surprising that one cannot find an honest accounting of the Nazis and their collaborating industrialists published by the Bertelsmann empire, when the company still tries to hide their own involvement with the Nazis. BesidesfreeingtheNaziindustrialists,McCloyannounceddrasticreductionsinthesentencesofseventy fouroftheremaining104cases,includingcommutingtendeathsentences.Thereadershouldbe awarethat evenMcCloyswhitewashingcommittee,thePeckCommission,hadrecommendedthatalldeathsentencesfor members of the Einzatzgruppen were justified. Only four of the Einzatzgruppen prisoners and Oswald Pohl deathsentenceswereupheld.[80]ThecoldbloodedmurderersofMalmedywouldgofree. Not only did McCloy empty Landsberg of war criminals, as high commissioner he also helped to protect some of the most notorious war criminals escape from justice and Europe. One benefactor of McCloys generous protection was the Butcher of Lyons, Klaus Barbie. The French were aware that Barbie was in the American Zone and requested that the United States hand him over. McCloys reply was brutally cold and refused the request because the allegations of the citizens of Lyons can be disregarded as being hearsay only.[83]McCloywaswellawarethathisreplywasalie,asBarbiewasidentifiedontheCROWCASSlistofwar criminals for immediate arrest. Others benefiting from American protection were Eichmann and Baron Otto vonBolshwing.ThelatterdirectedthemurderofJewsinBucharest.In1954,vonBolshwingwasbroughttothe UnitedStatesbytheCIA.FormerCIAdirectorRichardHelmsjustifiedsuchactionsbysaying:Werenotinthe BoyScouts.IfwedwantedtobeintheBoyScoutswewouldhavejoinedtheBoyScouts.[84]Theprotection renderedtoNaziwarcriminalsandtheiruseintheintelligenceapparatusoftheUnitedStateswillbetakenup inthefollowingchapterinmuchgreaterdetail. ThroughouthisreigninGermany,McCloywasplaguedwithoneofthesameproblemsthattheAlliedarmy faced in their march across Germany. He was bedeviled throughout his time as High Commissioner with requestfrompriestsandpastorsdemandingclemencyfortheconvictedwarcriminals. Cardinal Faulhaber, the head of the Catholic Church in Bavaria, was a vigorous opponent of the denazification program and would readily offer help and protection to anyone whose employment was threatenedbytheirNazipast.TheCardinalfoundasympatheticearinColonelCharlesKeegan.Keeganwasa soldierandnotanadministratorandwelcomedanyhelpandsuggestionstoorganizeapostwargovernment. Keeganhadonlyonepoliticaladvisorandlikehiscommander,GeorgePatton,wasindifferenttopolitics. AtanewsconferenceathisheadquartersinBadTolz,Pattonmadetheoffhandremark:ThisNazithingis just like a Democratic and Republican election fight.[85] Pattons remark brought a stern reprimand from Eisenhower. Patton was removed three days later. Nevertheless, Pattons remark symbolized the general apathyoftheAmericanArmyaboutGermanhistoryandNazipolicies. CardinalFaulhaberwasnotaloneinhisoppositiontodenazification.TheCatholicandProtestantchurches openlysupportedHitlersince1933.DespitetheirexactknowledgeofNazicrimes,theyneverwithdrewtheir support.InMay1945,theGermancardinalsrefusedtoacceptthesharedguiltofallGermansforthewarand unfoldingstoryoftheHolocaustandshamefullyreaffirmedthe1934concordat.InJune1945,inthefirstjoint pastoralmessage,thebishopspraisedtheclergyforhavingresistedtheNazis.MaintainingtheCatholicschools wasanact,accordingtothebishops,ofsupremeresistanceandachievementpraisedbyPopePiusXII,whohad extensive dealings with the Nazis and now usedthe church as a ratline to help Nazi war criminals to escape fromEuropeandjustice. Bishop von Galen told his flock: If anyone says that the entire German population and each of us is implicated in the crimes committed in foreign countries and especially in the concentration camps, that is untrueandunjustaccusationagainstmanyofus.[86] Theologicalsupportforpoliticalsurvivalwasathand. TheCatholicChurchdeniedthepossibilityofcollectiveguilt,becauseguiltwasanindividualmatter. TheProtestantChurchwasslowerincomingtosuchaselfservingconclusion.OfalltheProtestantleaders, PastorNiemollerwastheonlyProtestantleader toacceptthecollective guilt.BishopWurmatfirstaccepted the collective guilt. Wurms initial acceptance of the denazification program soon turned to total opposition largelyduetoLawNo.8.LawNo.8originatedfromGeneralClaysangerinhearingthatabutcherinAugsburg whowasaformerNaziandstillgavepreferencestoformerpartymembersforthesupplieshehadavailable. Claywasoutragedatlearningofthebutcherspractice.OnSeptember26,1945,ClayissuedLawNo.8,which

requiredthedismissalofanypartymemberorsympathizerfromanyemploymentotherthancommonlabor. Ironically,thebutcherwasselfemployed. WhileLawNo.8followedtheguidelinesfordenazification,itwaslargelyunenforceable.Oncethelawwas issued, Bishop Wurm from Wurremberg led the campaign against the law. In the political vacuum left by Germanysdefeat,theclergyheldenormouspower.Nootherbodyhadtheorganizationorselfconfidence.As thechurchsoppositiontothe4Dsprogramintensified,theirinfluenceoverthepeoplealsoincreased.Wurms initialprotestagainstLawNo.8waswhathetermedthedismissalofthousandsofinnocentcivilservantswho had been members of the Nazi Party. Wurm claimed many were politically indifferent to the Nazis and had simplyjoinedthepartytoretaintheirjob.Therewassometruthinthebishopscharges. Nevertheless,WurmhadadmittedtoGeneralClaythatmanyclergy,includinghimself,hadjoinedtheNazi Party and supported Hitler, believing it might produce a religious revival. Wurm even referred to Mein Kampf,whereHitlerhadwrittenthatNationalSocialismandChristianitycouldworktogether.Wurmjustified hisbeliefsinthesigning oftheconcordatandtheagreementsbetweenNaziGermany andBritain beforethe war. The American Religious Affairs Division listed 351 Protestant clergy as active Nazis. While the Catholic ChurchhidtheirNazipriestsinmonasteries,theProtestantchurchrefusedtoremoveitsNaziclergyfromtheir churches.ByOctober1946,onlythreeofthe351activeNaziclergyhadbeenremoved.[88] Bishop Wurm was also a principal member of the Committee for Christian Aid to War Prisoners, formed illegallyin1948.ThecommitteewasformedinMunichbyagroupofNazijurists,whohadservedascounsel formajorwarcriminals.Dr.RudolfAschenauerandErnstAchenbachweretwoprominentleadersbehindthe group.Thegroupspurposewastospreadpropagandadenouncingthewarcrimetrials.TheNazisusedWurm andotherleadingclericstocamouflagetheiractivities.Otherprominentreligiousleaderswithinthecommittee wereCardinalJosefFrings,BishopJohannNeuhaeussler,fromtheCatholicChurch,andBishopMeiser,fromthe Protestantchurch.CardnialFringsdemandedahaltintheexecutions. UnderthesponsorshipofFringsandWurm,thegroupdevelopedawidenetworktosavethewarcriminals from the hangman. They were supported by the Roman Catholic Church and the Protestant Evangelisches Hilfswerk.ThelatterorganizationhadgivenshelterandjobstohundredsofexNazis,especiallyRibbentrops diplomats. FringsandWurmalsoheadedanothergroup,TheCommitteeforJusticeandTrade.Thisgroupconsistedof exofficers,highgovernmentofficials,jurists,educators,industrialistsandchurchleaders.Itspurposewasto raise money to assist all war criminals. The organization had a mysterious bank account (Konto Gustav) to whichmorethansixtyindustrialistsdepositedlargesumsregularly.[108]

Part 12: The New German Government and Old Nazis

InJanuary1946,asecretreportissuedbythePublicSafetyBranchrevealedthetrueextentofoppositionthat General Clay and the occupying army faced. The report estimated that only one percent of the German populationwascommittedantiNazis.InthesamemonthDavidRobinson,anAmericannegotiatorforGeneral Clay, reported that German political leaders admitted that a free election then would bring a modified Nazi governmenttopower. BishopWurmwasrelentlessinhisoppositiontothe4DsprogramandpushedGeneralClayintosettingup tribunals with two of the members German citizens to review and remove known Nazis from positions of power. Under pressure, Clay relented to the bishops demands. The resulting tribunals made a mockery of justice. SpecialAgentCharlesHickvisitedthevillagesofMarktheidenfeldandAschaffenburgafterhearingrumors thatthelocaldenazificationpanelsweredubbedNaziWelfareOrganizationsbythelocals.Hereportedthatthe conditions were far worse than could be imagined. The case against the Nazi wartime mayor, Wilhelm Siebenlist,hadcollapsed.SiebenlisthadmadeafortunebyexploitinghisofficeundertheNazisandhadbeena longtimepartymember.InthecaseagainstthisNaziprofiteer,hehadfourteenwitnesseswillingtospeakinhis favor,includingtenemployees,andonlyonewitnessfortheprosecution,whowassuspectedofbeingaNazi. Hick first believed the case collapsed by the failure of Horst Schutze, the prosecutor. Schutze had been jailedthreetimesinthreemonthsforembezzlementandwasaformerNaziPartymember.Hickalsothought thatHeinrichMuller,thesecondprosecutor,mightalsohavebeentoblame.Mullerhadbeenalongtimeparty memberandhadninechargesoffraudleviedagainsthim.However,JuliusListmannpubliclyclaimedcreditfor Siebenlistsacquittal.ListmannwastheproudownerofanewcargiventohimbytheformerNazimayor.[87]

The Siebenlist case was not the exception; rather it was typical of the findings of the tribunals across Germany.MuchoftheblameforthefailureofthetribunalscouldbelaidtotheCatholicChurch.Localpriests hadmadeitasintogivedamagingtestimonyandtestifyingthattheyweregoodchurchgoersand notNazis. Suchtestimoniessoonbecameknownasfragenogen,orapledgethattheaccusedwaswhiterthanwhite.The CatholicChurchevenwentsofarasorderingitsmembersnottoworkinanyofthetribunals. TheCatholicpriestinSteinachwentevenfarther;heconvincedapracticallyilliteratepanelthateventhe most rabid Nazis were just mere followers. The panel then ranked these rabid Nazis in the lowest threat categories.ThepriesthadjoinedtheNazisin1925.InUffenheim,thelocalpriestwarnedhisfollowersnotto speaktotheprosecutor,aJewthathadjustreturnedfromAuschwitz.InUnterfrankenandMittelfranken,Nazi profiteers such as Hans Glas, a former SS member, was fined only two thousand marks. Glas had an annual incomeofovertwothousandmarks.XavierLanganotherNaziprofiteerwasalsofinedthesamepaltrysum. Langhadanincomeofoversevenhundredthousandmarksannually.[89] Evenmoreominously,theAmericanforcesfailedtoprotectthefewtribunalmembersandprosecutorsthat wereantiNazi.ThosemembersweresubjecttointimidationandassaultfromformerNazis.Somewereeven murdered by the werewolves, an underground Nazi organization that continued a guerilla war after the surrenderofGermany. Theprimaryreasonforsuchoppositiontothe4DsprogrambytheGermanclericswassimplyafearofthe leftand,inparticular,communism.Thechurches,seekingtheirownrevitalization,wereveryconcernedover thegrowingmenaceofthehordesofgodlessreds.FormerNaziswereinpositionstoexploitthisfear.Infact, that was precisely the plan revealed in the captured documents presented earlier in this chapter. A quote belowfromtheJuly28,1946editionof The New York TimesbyBishopWurmprovideslittledoubtofhisfears. Extreme leftwing elements are using denazification laws to destroy Germanys leading classes of educated men.ThereissomethingBolshevisticaboutit.[90] ThereadershouldnotethatthiswasthesameargumentthatrightwingelementsintheUnitedStateswere promoting. Many of those that were advancing such ideas in Americas homeland had been supporters and sympathizers of the Nazis before the war, thus confirming the Nazi plan to regain power in the captured documents. The state of Germany after the failure of the 4Ds program was perhaps best summed up by Strang and Steele,twoBritishpoliticalofficersthattouredGermany.TheyreportedthattheNazisremainedaprivileged class. The failure to remove Nazi foremen and shopkeepers left the Nazis in control of the daily lives of the Germanpopulation.TheantiNazisdidnothavethestrengthtochallengetheformerorder.ThebestantiNazis had already perished in the concentration camps or were executed by Nazi courts. The views of Strang and Steele confirmed the British lack of interest in pursuing denazification further; only American criticism preventedthemfromfullyremovingthemselvesfromthedenazificationprogram. In1952,McCloyreturnedtotheUnitedStatesandbecameaconsultantfortheRockefellerfinancedFord Foundation, a foundation that has close ties with the CIA and closely associated with the Council of Foreign Relations. In 1953, McCloy became chairman of Chase National Bank, which soon merged into the Chase ManhattanBank.AftertheassassinationofJohnF.Kennedy,McCloyservedontheWarrenCommission.From then to his death, he was involved in many dealings between the US government and other governments, privateindustryandbanks. McCloys departure from Germany marked the beginning of a new phase of postwar Germany. Germany fromnowonwasselfgoverned,withlittleinterferencefromtheoccupyingarmies.Adenauerhadbeenelected as chancellor and his government was loudly proclaimed to be a democracy that had rid itself of the Nazi menace. Such assessments were overly optimistic. The Adenauer government was riddled with exNazis. Adenauer himself was compromised with his past associations with Nazis as well as being a benefactor of money from Nazis that were intent on reestablishing National Socialism. The reader should recall Flicks generositytoAdenauersparty. The state of Adenauers government can best be examined by looking at the records of two of the most influential men in the chancellery, Dr. Hans Globke and Dr. Herbert Blankenhorn. Both men, despite their loathsomerecords,wereentrustedbyAdenauertothebeginningoftherebuildingofthegovernment. GlobkeservedtheNazisasthetopofficialintheOfficeforJewishAffairsintheMinistryofInterior.Globke wasdirectlyinvolvedintheformationoftheraciallawsanddraftedthetextofHitlersracelaws.Globkewas also the author of the notorious Commentary that interpreted the Nuremberg law, paving the way for the Holocaust.WhentheNazisdecidedonmassexterminationoftheJews,Globkessuperiorresignedasamatter

ofconscience.Globkefilledhisposition.AschieflegaladvisorandheadofJewishAffairs,Globkewasadirect participantintheHolocaust. OnSeptember28,1960,DerSpiegelreportedGlobkehaddirectdealingswithEichmann.Thearticlequoted testimony from Max Marten, who had been convicted of war crimes in that with Eichmann the two had requested in 1943 to send 20,000 Jews in Macedonia to Palestine. Globkes permission was needed for the release, however, Globke refused to release the Jews, insisting on a strict adherence to Hitlers order for liquidation.[92] OnOctober30,1955,DerWeltdescribedGlobkeasthesecondincommandincontroloftheGermanshipof state. The paper reported that Globke alone had access to Adenauer at all times. Globke used his power to appointmanyNazistoimportantpositionswithinthegovernment.SomesuggestedthatGlobkehaddonemore torenazifyWestGermanythananyoneelse.[93] McCloy and the Military Occupation Government had to have known of Globkes record, as there was criticismofhisrecordfromalmostthebeginning.OnJuly12,1950,thelegalexpertoftheSocialDemocratic Party,Dr.AdolfArndt,spokeinfrontoftheBundestagdescribingGlobkesrecordindetail.HeaccusedGlobke of committing mass murder with legal paragraphs. On October 16, 1951, Dr. Gerhard Luetkens, the Social Democratsdeputy,chargedGlobkebeforetheBundestagwithpackingtheForeignOfficewithexNazis.[94] OnJune11,1958, Deutsche Zeitung,inafullpagearticle,explainedhowGlobkewasabletomaintainrigid controlovereveryministry.AsSecretaryofState,Globkeconvenedallcabinetmeetingsaswellasdetermining theagenda.AllappointmentshadtocrossGlobkesdesk;thereforeGlobkewasabletoinstallloyalfriendsin everyministry.[95]GlobkewasalsoanoldfriendwithReinhardGehlenandprovidedGehlenwithhisaccessto Adenauer.In1955,whenthefederalRepublicbecameasovereignstate,Gehlensnetworkofspieswasopenly recognizedasanarmoftheBonngovernment.GehlensnetworkwashometoexSSandotherNazis.Gehlens network will be covered in more detail in the following chapter. In effect, once West Germany became a sovereignstate,GehlensnetworkwasunderthedirectcommandofGlobke. Another organization under the control of Globke was the Federal Press Department. Throughout the 1950s, the department was involved in several scandals in connection with the use of multimillion dollar reptile funds. Globke was charged with paying journalists 1,000 or 2,000 marks for political analysis. Such payments were obviously bribes to play along with Globkes agenda. Other funds were spent on friendly publishers. Additionally, over 40,000,000 marks in secret funds must be added to these sums that were earmarkedfordiscretionaryuseoftheChancellorandSecretaryofState.[91]OnceagainweseehowNazislike Globkeadheredtotheplaninthecaptureddocumentspresentedearlier. Dr. Blakenhorns record is as dark as Globkes record. Nevertheless, Adenauer was allowed to appoint BlankenhorntorebuildtheForeignOfficeandheservedaschiefoftheofficeformanyyears.Theoccupation government had been warned about Blankenhorn in a letter from Stettinius, Secretary of State, to Robert Murphy,onApril20,1945.Anexcerptfromtheletterfollowsbelow. While in Washington, Blankenhorn is known to have been active and aggressive as a propagandist workingthroughmainlysocialcontacts,fortheNazipartyandHitler.Racialismwasoneofhisfavorite subjects. While professing great sympathy for the United States, he was yet an ardent and convinced memberoftheNazipartyandwasalsoamemberoftheSS.[109] Stettinius had sent his warning letter after receiving from Murphy an OSS report that had summed Blankenhorn up as truly and actually strongly proNazi. Three weeks after the Stettinius letter, Grew sent anotherwarningtoMurphy. Long before the surrender of Nazi Germany in 1945, Nazi diplomats made extensive plans for a quick comeback. They had organized a Niederlage (defeat) section tasked with working out detailed plans to overcome any surrender. Many of the Nazi diplomats disappeared into harmless and previously prepared emergencyshelterssuchasdirectorsoforphanagesorwereemployedbytheEvangelicalReliefSociety.[96] Many of the Nazi diplomats were fully implicated in war crimes. However, only a few were ever investigatedbytheAlliesintheWilhelmstrasseTrialof1949.Asearlyas1949,the Neue Zeitung,theofficial American newspaper in Germany, warned that preparations were underway for the Ribbentrop clique to recapture the Foreign Office. In 1950, when Adenauer asked Blankenhorn to establish a new Foreign Office, BlankenhornpresentedAdenauerwiththenucleusoftheRibbentropgroup.Adenauermusthaveknownthat Blankenhorn was implicated in war crimes of deportation and mass murder. On April 22, 1952, the Swiss newspaper Die TatreportedthatinthetrialofRademacher,certaindocumentsimplicatingBlankenhornhad

neverbeenintroducedasevidence,despitetheirpresenceintheprosecutorsfiles.Thearticlestressedthatthe BonnForeignOfficehadpressuredthecourtnottointroducetheincriminatingfiles.[97] ThepersistentattacksbyafewdemocraticpapersoverthereactivationoftheRibbentropgroupweresoon echoedbytheSocialDemocraticoppositionintheBundestag.AftertwobroadcastsonBavarianRadioNetwork byWilhelmvonCube,afightingdemocrat,publicangerwasaroused.VonCubehadproventhat85percentof theleadingofficialsoftheForeignOfficehadbeenNaziPartymembersandhadservedHitler.TheBundestag thentookuptheinvestigationbyinvestigatingtwentyofficials.TheBundestagreportconfirmed that former Ribbentrop diplomats held domineering positions in the Foreign Office. The report noted they had done the utmost to whitewash their past records by exchanging affidavitsPerilshiene. The report called for the immediate ouster of Dr. Werner von Grundherr, Dr. Werner von Bargen, Dr. Kurt Heinburg and Dr. Herbert Dittmann. The report also recommended that seven other former Nazis be prevented from assuming diplomaticmissionsabroad.[98] Additionallythereportestablishedthatthe ForeignOfficehadconspiredtoprotectDr.Rademacher.The report had clearly established Rademachers guilt in the murder of 1500 Jews in Belgrade. Rademacher was sentencedtoonlythree yearsandeightmonthsinprison.Thecourtallowedhimtoremainfree pendinghis appeal. Rademacher promptly escaped to Argentina where he was greeted as a hero that had escaped the clutchesofJewishjackals.[99] On October 23, 1952, in a debate before the Bundestag, Adenauer admitted that 66 percent of the diplomatsinhigherpositionswereformerNazis.HelamentedthathecouldnotbuildaForeignOfficewithout their skills and promptly ignored the Bundestags report. After the 1953 election, Adenauer presented his second cabinet as staunch democrats. However, the truth was the second cabinet was full of Nazi Party members and the SS. Few of the Nazis were ever removed from office. One exception was the Minister for Expellees,Dr.TheodorOverlaender.OverlaenderwastheReichsfuehreroftheGermanAllianceintheEast.He hadpackedhisministrywithexNazis.However,hebecamethecenterofastormwhenitwasrevealedthathe wasresponsiblefortheliquidationofthousandsofJewsandPolishintellectualsinJuly1941.AspecialSStask forceunderhiscommandhadcommittedthemassmurderwhenitoccupiedthePolishcityofLvov.In1960, Overlaenderwasforcedtoresign.[100] Intheearly1960s,morethansixtyWestGermanyambassadorsandforeigndiplomatswereformerNazi party members who had worked with Radermacher in organizing the Final Solution. Hans Albers, formerly assignedtoWarsawbyRibbentrop,becameambassadortoNicaragua.GeorgeVogel,aformerSSofficer,was appointedambassadortoVenezuela.TheSouthAmericanappointmentsareparticularlynoteworthy,asSouth AmericabecameafavoritedestinationofwarcriminalsescapingfromEurope.[110] The Nazi penetration of the Bonn government was not confined to top key positions of the federal government, but was an even greater problem in local government. All across Germany, various city governments, schools and the police were rife with former Nazis. Nazi penetration of the police was particularlyacuteinGermanyslargerstatessuchasNorthRhineWestphalia,ScheswigHolsteinandBavaria. OnOctober16,1959,theSocialDemocratsexposedthattwentySSofficersheldthetoppolicepositionsinthe state of North RhineWestphalia. The Social Democrats specifically charged that the chiefs of the criminal divisionsinsuchcitiesasCologne,DortmundandEssenwereheldbyformerSSofficers.TheSocialdemocrats charged that the whole police organization is dominated by former Nazis and that promotion and appointmentsareawardedtoreliableSSmen.[101] In March 1959, the government of BadenWuerttemberg reported to the Diet that 152 former Gestapo officials were employed as state police. The chief of the criminal division in Stuttgart was Dobritz, a former GestapoofficersentencedtodeathbyaFrenchcourtinabsentiafortortureandmanslaughter.[102] In the late 1950s, an avalanche of reports, investigations and charges surfaced charging current police officialswithwarcrimes.InApril1959,theStateProsecutorlaunchedaninvestigationof23policeofficersin Berlin.Allweresuspectedofthemassmurderof97,000JewsinBialystok,Poland.InJuly1959,thechiefofthe criminaldivisioninthestateofPalatinate,Dr.GeorgHeuser,wasarrestedfortheliquidationofJewsinMinsk. The head of the criminal division in the city of Saarbruecken, Klemmer was arrested in 1959. Klemmer, a former Gestapo officer, admitted to ordering mass executions in the East. In January 1960, Georg Lothar Hoffmann,chiefofthecriminaldivisioninthestateofHesse,wasarrested.Hewaschargedwithmassmurder inMaidanekconcentrationcamp. WhileotheragenciesofstateandlocalgovernmentwerejustasinfestedwithformerNazis,theinfestation ofthepolicewasparticularlyonerous.Nocitizencouldreportawarcriminalwithoutfearofreprisal,especially

whenthecriminaldivisionsofthepolicewereunderthecontrolofformerGestapoandSSofficers.Withformer Nazisinchargeofthepolice,citizensriskedtheirlivesandfreedomiftheysteppedoutsideoftheNaziline. OnceagainthereisabundantevidencethatthisinfestationofthepoliceafterthewarbyformerNaziswas preplanedbeforethewarsend,lendingfurtherweighttothevalidityoftheplaninthecaptureddocuments presented earlier. The November 1957 issue of The Frankfurter Hefte exposed the number of the news and publishingmediathatwaswillingtopromotetheNaziline.Theexcerptfollows: In the Federal Republic there exist today 46 political associations of this character. The Nazi militaristic wing is served by 30 newspapers, 68 Rightist book and magazine publishers, and 120 formerNazipublicists.Inadditionthereareapproximately50nationalisticyouthorganizations.[103] The failure to denazify Germany was largely due to a deliberate sabotaging of the 4Ds program by those seeking to protect the US corporations that had traded with Hitler throughout the war. Nevertheless, one cannot overlook the planning of the Nazis to regain power after the end of the war and their determination. GeneralOttoRemerfoundedtheSocialistReichs Party.RemerdeniedthattheHolocausteverhappened and further claimed that the Allies had the ovens built after the war. In 1952, the Socialist Reichs Party was outlawed.Withinthespanofafewmonths,authoritiesfoundthattheNazishadreorganizedmorethansixty tarn(camouflaged)groupsinthestateofLowerSaxony. Perhaps one of the largest factors in the failing of the 4Ds program was the tragic death of Roosevelt a monthbeforethesurrenderoftheNazis.TheburdenonTrumaninhisfirstyearinofficewasimmense;inthe first month he had to deal with the surrender, before the summer was out the use of the atomic bomb and Japans surrender. Truman had no idea of Roosevelts Safehaven plan or the details of the atomic bomb. He thereforeputhistrustinhisadvisors. OneoftheadvisorsTrumancametorelyonwasindependentoilmanEdwinPauley.Pauley,likeForrestal, were spies for Allen Dulles within the Roosevelt administration and the Democratic Party. Pauley had been partofRooseveltsPetroleumAdministrationfortheWar.PauleyalsoplayedaroleintheselectionofTruman asthevicepresidentialcandidateinthe1944election.LargelyduetoTrumansgratitudeforPauleysrolein the convention, Truman appointed Pauley to be the US representative in the Allied Reparations Committee, despitehisobviousconflictsofinterest.Pauleywassimultaneouslymadeindustrialandcommercialadvisorto thePotsdamConferenceandgiventherankofambassador. Usinghisposition,PauleywasabletohelptheDullesbrothersinshiftingNaziassetsoutofEurope.Pauley playedamajorroleinhelpingtheDullesbrothersandtheirclients.HeknewthatthebulkoftheNaziassets werelocatedinsidethewesternzone,butdeceivedtheSovietslongenoughthatAllenDulleshadenoughtime tospiritmuchoftheremainingNaziassetsoutofEurope. After losing his nominations as Naval Secretary to replace Forrestal, Pauley returned to the oil business. Pauley was soon embroiled in another controversy over Mexico and oil. In short, Pauley had been caught runningaCIAshakedownofMexicanpoliticians.Atonepoint,theCIAwasusingPermexasabusinesscover whileatthesametimeusingPermexasamoneylaundryforPauleyspoliticalcontributions.TheCIAPermex connectionlastedformanyyears;onenotableemployeeofPermexduringtheseyearswasWilliamF.Buckley, Jr.PauleywasknowntoplaybothsidesofthestreetsandwasacommittedNixonsupporter. GeorgeBushestablishedZapataPetroleumduringthistimeandleasedoilrigstoPauley.Pauleyinfactwas Bushsbestcustomer.In1959,Mexicochangeditslawsconcerningoilcompaniesrequiringthemtobeowned byMexicannationals.Bushstoodtolosehismostlucrativeaccount.Withasleightofhand,BushsoldtheNola1 rig,concealingahiddenAmericanshareoffiftypercent.Theonlylosersinthedealweretheshareholdersof Zapata,accordingto Barrons.Unfortunately,thedetailsofthedealcannolongerbescrutinizedsincetheSEC destroyedallrecordsforZapatafortheperiod19601966.ThedestructionoccurredshortlyafterGeorgeBush wassworninasVicePresidentin1981.[119] Hundreds of other cases of Nazi war criminals in positions of power within the Adenauer government could be cited. A full disclosure of all Nazis within the new German government would literally fill volumes. Nevertheless,itisobviousfromtheexamplesalreadycitedthattheNaziswerestillinpositionsofpowerinthe postwargovernmentofGermany.Whathadgonewrongwasnotaseriesoferrorsormistakes,ratheritwas anwellorganizedandfinancedplot,theunderstandingofwhichiscriticalinunderstandingtheriseoffascism lateinthe20thCenturyandtheattemptstotakecorporatefascismglobalintheformofsocalledfreetrade andglobalizationoftheworldseconomy.Perhaps,thebestsummaryofwhatwentwrongisgiveninaquote

byJamesStewartMartinoftheDepartmentofJusticesinvestigationteaminEuropeinhisbookAllHonorable Men. We had not been stopped in Germany by German business, we had been stopped in Germany by American business. The forces that stopped us had operated from the United States, but had not operated in the open. We were not stopped by a law of Congress, by an Executive Order of the President,orevenbyachangeofpolicyapprovedbythePresidentinshort,whateveritwasthathad stopped us was not the government. But it clearly had command of channels through which the government normally operates. The relative powerlessness of governments in the growing economic power is of course not new national governments stood on the sidelines while bigger operators arrangedtheworldsaffairs. In our view, the restoration of economic balance in Europe is fundamentally a problem of industrial and agriculture production. The purposes to be served by such development are the maintenance of population andthecreationofinternationallyexchangeablevalues,whichareessentialinsupporting thecontinuanceofproductiveoperations.Therestorationofproductionandthecontinuingprocesses which involve the international exchange of goods and the fields of primary interests to World Commerce Corporation. In these directions we are prepared to cooperate with private industry and withofficialbodies.[125] RyanadvisedClaythatWCChaditsheadofficeinNewYorkCityandcloseconnectioninallothermajorcenters intheUnitedStatesandalsorepresentativesin47othercountries.RyanslettertoClaywasmorespecificin regardstoGermanyasfollowsbelow: WCC is prepared to provide its full cooperation to the Joint Occupying Authority toward the restoration of production in Germany. World market and price reports, industrial investigations looking toward the development and submission of specific proposals and a general commercial informationservicearecontemplatedasproperelementsofcooperativeactivitybyWCCinGermany. WCCwillsubmitofferingsofrawmaterials,suppliesorequipmentwhicharerequiredinGermanyfor thepurposesofproduction. WCC will submit bids for products of general commercial usage which may become available for exportoutofGermanproduction. WCCwilldevelopandsubmitforcoordinatingthepurchases,productionandexportsalesofspecific plant,ofagroupofplantsorofanindustry.Theseproposalswilllooktowardaspecificallyintegrated andselfsupportingoperationinwhichthefacilitiesoftheGermanproducersontheonehandandthe WCContheotherwillbejoinedtoaccomplishtherequiredresult.[126] Hereinanutshellwehavethereasonfortheexistenceofthisstrangeandshortlivedcorporationstaffedby formerintelligenceoperativesconnectedwiththewealthiestgroupsoftheEnglishspeakingworld.Inshortthe British, Canadian and United States intelligence services were running a corporation to rebuild Germany, in directviolationofRooseveltsorders. Consideringthiscorporationwasformedonlydaysafterthewarended,byamanthatwasatthetopofthe Britishintelligenceservices,suggeststhattheBritishneverintendedtodestroyNaziGermany.Theinclusionof members of the OSS followed naturally, as the OSS recruited heavily from Wall Street and families of the Americanindustrialelite.Itisalsoindicativethattheworldsfinancialelite,ledbytheBritish,hadaplanfrom the beginning not to destroy Germany totally and to reduce the cost of rebuilding after the war to protect Germanindustryfrombombing.ItcannotbestatedwithanycertaintythattherelianceoftheRAFontheterror bombing of civilian centers throughout the war was part of this plan until further classified government documentsaremadeavailable. Such a plan would fit with the British policy towards Europe for the previous century. Up until the First World War, England was the dominant power in Europe and the British were determined to maintain it. Englands strategic geographical location allowed it to block the sea lanes of any European challenger to its power.TheonlyseriousthreatstoBritishpowerbeforeWWIwereFranceandGermany.Besidesthethreatofa blockade,Britainwouldfosterwarsbetweencontinentalrivals,therebyweakeningthedominantpoweronthe continent. Using such tactics, the cost to England to maintain their hegemony in Europe was minimal. Throughout the later half of the 1700s and the 1800s, England faced no serious threat to its position. Any potentialthreatwasquicklydealtwith.

However, towards the end of WWI a new threat to Britain rose. The Bolshevik Revolution in Russia presenteda newthreattoBritishimperialismifitshouldspreadbeyond theborders ofRussia.Betweenthe wars,BritainregardedtheSovietsastheirprimeenemyonthecontinent.HitlersThirdReichhadcomewithin sightofMoscowataheavypricetoboththeSovietsandtheNazis.ChurchilldelayedanyinvasionofEuropeas long as possible. He was following the long English tradition of allowing Britains enemies to kill each other. Ratherthanacrosschannelinvasion,hetalkedRooseveltintoaninvasionofNorthAfricaprimarilytoprotect theSuezCanalandBritishshippinglanesthroughit.HefurtherdelayedtheNormandyinvasionbypromoting the invasion of Italy. Churchill then argued for an invasion through the Balkans, or Europes soft underbelly, andtherebycuttheadvancingSovietsofffromcentralEurope. ItwasonlywithRooseveltssterndemandforacrosschannelinvasionafterthemeetingoftheBigThree that Churchill relented. Churchill favored an easy peace with Germany and only reluctantly accepted the MorgenthauPlanatMontreal.However,bythistimeBritainwasreducedtobeggarstatusandwasdesperateto hangontoitsremainingempireandinnopositiontodisagreeifpostwaraidwasatstake.Thus,theformation of the World Commerce Corporation by one of Englands top intelligence officers dovetails with the British conductofthewar.CertainlythoseinthetopranksoftheOSSthatcamefromWallStreetorfamiliesofleading American industrialists did not wish to see their assets in Germany destroyed and climbed aboard the WCC readily. The only question remaining unanswered is whether the WCC was part of a larger formal policy of England,orwasitmerelyaplotbytheeliteinEnglandtosavethemselvesfromfinancialruin. PreviouschaptershavepresentedawealthofinformationoftheNazielementwithintheUnitedStatesin armingHitler,insabotagingourwareffortandeventheirparticipationinUSelectionsduringthe1930s.The evidenceimplicatedindividualsinCongress,themilitary,businessandWallStreet.Thischapterhaspresented strong evidence from captured Nazi documents that the sabotaging of the 4Ds program was part of an elaborate and well planned plot by the Nazis to regain power. The captured document confirms that the distincttrendsstartingaround1943,theremovalofofficialsthatweresteadfastlyopposedtofascism,therise inanticommunismandthefranticpeaceefforts,wereallpartsoftheNaziplottoregainpower. The Nazis recognized that the people of the United States harbored an abhorrent phobia towards communism and were wildly successful in exploiting it. General Clays war warning from Berlin was the product of the Gehlen organization, a group of former Nazi intelligence officers and SS recruited by the OSS/CIA. Clays message and the Gehlen group will be more fully discussed in the following chapter. Clays message could be regarded as the first shot of the Cold War. The Nazis knew their best chance of regaining powerwasduringawarbetweentheSovietsandtheUS.Furthermore,theywerewillinglytoprovokeawar, even if it meant propelling the world to the brink of a nuclear holocaust. There was a Nazi element in such clashesbetweenthetwosuperpowersinIran,Egyptandindeedinalmostallclashesinthe1950sbetweenthe USandtheSoviets.TheColdWarwasmoreapartofNaziintriguethananyothercause. TheColdWarwoulddragontospanfourdecades.Itwastheearly1960swhentheColdWarreachedits feverishpeakofhysteriaastheworldstoodonthebrinkofanuclearwarduringtheCubanMissileCrisis.It alsomarkedtheturningpointintheColdWar.PresidentJohnF.Kennedy,againsttheadviceofhisadvisors, choseapathofdetentewithKhruschev.However,therewasnogreaterthreattotheNazisplotthanpeaceful negotiations between the Soviets and the United States. Once, detente was established between the two superpowers, the Nazi plot to regain power was dead. A later chapter will look at more detail in the Nazi connectionstotheassassinationofKennedy.Indeedfollowingthecrisis,testbantreatieswerecompletedand the Cold War was reduced to a series of small brush fires in the third world. However, the full extent of the NazisinfomentingtheColdWarwillneverberealizeduntilalloftheclassifieddocumentsfromWorldWarII andthepostwarperiodarereleased. Secondly, this chapter has shown there was a great deal of coordination of the Nazi efforts in the United StatesandpostwarGermanyespecially,intheMalmedyTrials.ThereadershouldbeawarethatJoeMcCarthy received campaign funding from known Nazis before he became a leading figure in the witchhunts of the 1950s. Thischapterhaspresentedenoughevidencetoshowthatthesabotagingofthedenazificationprogramwas systematicandproceededatthehighestlevelsoftheoccupationarmyaswellasthelowerranks.Theyoung lieutenant that wrote Pa Watson of his efforts to place a former Dehomag in a position of power probably thought he was doing his best for his country, while putting a feather in his cap for his return to IBM; nevertheless,hisactions,andtheactionsofhundredofotheryoungofficersactinginasimilarvein,protected IBMandWatsonfrombeingchargedwithaidingtheNazis.

However, the real rot and corruption came at the top ranks of the occupation army and the military government.ThetopechelonofthemilitarygovernmentwasfilledwithAmericanbusinessleaderswithtiesto theNazis.TheKilgoreCongressionalcommitteequestionedthewisdomofappointingsuchbusinessleadersto the control board. Both Rufus Wysor, president of Republic Steel, and Fred Devereux, vice president of ATT, weresingledoutinthecommittees1946report.BothservedassectionchiefsunderGeneralDraper.Wysor had signed several cartel agreements with Nazi steel companies was particularly aggressive in defending cartels.However,thecommitteewaspowerlesstopreventtheappointmentofsuchindividualsorreversetheir decisions.Therefore,thecontrolboardwasabletoactwithimpunity.GeneralDraperhadnothingtofearwhen heorderedthedismantlingofanI.G.Farbenplanttocease.JohnMcCloywasabletofreethewarcriminalson theflimsiestexcuseswithnothingtofearexceptalittlebadpublicity. The sabotage conducted at the higher levels of the ranks revealed a larger plot on the part of the Nazi elementwithintheUnitedStatestoprotectitself.Furthermore,thesabotagebyNaziswithintheUnitedStates wasconnectedwithandwasanintegralpartoftheNazisplanstoregainpower,asrevealedinthecaptured documents.ThecaptureddocumentsstressthattheiragentsandfriendswithintheUnitedStateswouldhelp protectthem.Theywerenotdisappointed,especiallywhenMcCloyopenedthegatestoLandsbergprison.Once freed, Flick proceeded to fund Nazis within the new political system in Germany. The result was a German governmentcomposedlargelyofformerNazis. At the center of the sabotaging of the denazification program within the United States were three Wall Streetfirms:BrownBrothersandHarriman,DillonandReed,andSullivanandCromwell.Attheveryeyeofthis corruption were Prescott Bush, John Foster Dulles and Allen Dulles: three men that would rise in power. All weretraitorstotheircountryandallworkedfeverishlytocoveruptheirowncrimesandthoseofothers.None gaveuptheirNaziconnections;infacttheBushfamilysconnectiontoknownNazisbecameacampaignissue inthe1988election.ThefollowingchapterwilllookathowAllenDullesandtheCIAsanitizedtherecordsof warcriminalssotheycouldimmigratetotheUnitedStates.

Notes
[1] [2] [3] [4] [5] [6] [7] [8] [9] [10] [11] [12] [13] [14] [15] [16] [17] [18] [19] [20] [21] [22] [23] [24] [25] [26] [27] [28] ThePledgeBetrayed,TomBower,Doubleday,1982,p125127. ThePledgeBetrayed,p127. ThePledgeBetrayed,p127128. ThePledgeBetrayed,p9798. Betrayal,ArthurKahn,KsiazkaIWiedza,1950,p23. ThePlotAgainstthePeace,MichaelSayers,AlbertKahn,DialPress,1945,p31. ThePlot,p30. Betrayal,p20. TheSplendidBlondeBeast,ChristopherSimpson,GrovePress,1993,p356. OSS:TheSecretHistory,R.HarrisSmith,UniversityofCaliforniaPress,1972,p15. TradingwiththeEnemy,CharlesHigham,BarnesandNoble,1983,p61. TradingwiththeEnemy,p5456. OSS:TheSecretHistory. OSS:TheSecretHistory,p1013. OSS:TheSecretHistory,p18. OSS:TheSecretHistory,p24. OSS:TheSecretHistory,p33. OSS:TheSecretHistory,p6. OSS:TheSecretHistory,p88. http://www.consortiumnews.com/archive/xfile3.html OSS:TheSecretHistory,p186. OSS:TheSecretHistory,p222223. PreludetoNuremberg,AriehKochavi,UniversityofNorthCarolina,1998,p10. Prelude,p13. Prelude,p15. Prelude,p57. Prelude,p82. GermanyPlotswiththeKremlin,T.H.Tetens,HenrySchuman,1953,p234235.

Prelude,p169. Prelude,p244247. OSS:TheSecretHistory,p7273. OSS:TheSecretHistory,p8586. OSS:TheSecretHistory,p224225. OSS:TheSecretHistory,p223. http://www.guardian.co.uk/Print/0,3858,4034066,00.html OSS:TheSecretHistory,p235236. OSS:TheSecretHistory,p364. GermanyPlotswiththeKremlin,T.H.Tetens,HenrySchuman,1953,p183. GermanyPlots,p187. GermanyPlots,p233238,259262,266270. GermanyPlots,p3940. GermanyPlots,p69. GermanyPlots,p70. GermanyPlots,p7071. GermanyPlots,p84. GermanyPlots,p88. http://www.trumanlibrary.org/oralhist/clayl.htm http://www.nizkor.org/features/techniquesofdenial/claykoch03.html WallStreetandtheRiseofHitler,AnthonySutton,76Press,1976,p157158. WallStreet,p159. GermanyPlots,p107. TheSplendidBlondBeast,ChristopherSimpson,GrovePress,1993,p263265. Betrayed,p217. Betrayed,p219220. Betrayed,p221. TheSecretWarAgainsttheJews,JohnLoftus,StMartins,1994,p77. Betrayed,p291. http://www.court.state.nd.us/court/history/century/II.J.htm#N_244_ Betrayed,p306. Betrayed,p308. TreasonsPeace,HowardAmbuster,BeechhurstPress,1947,p386. TheSecretWaragainsttheJews,p128132. TreasonsPeace,p388. TheSecretWar,p178179. http://www.codoh.com/trials/trirecon.html Betrayed,p340342. TheArmsofKrupp,WilliamManchester,LittleBrown,1968,p647648. http://www.und.edu/dept/library/Collections/Langer/og19.html LawandWar,PeterMaguire,ColumbiaUniversityPress,2001,p213. LawandWar,p219. TheArmsofKrupp,p651. TheArmsofKrupp,p650. TheArmsofKrupp,p463. TheArmsofKrupp,p465. TheArmsofKrupp,p466469. TheArmsofKrupp,p407408. TheArmsofKrupp,p752756. http://past.thenation.com/issue/981228/1228fisch.htm http://www.yahoo.com/text/headlines/960510/news/stories/RuetersNazisPlottedPostWWII Return9/14/200 [79] ThePledgeBetrayed,p348349. [80] ThePledgeBetrayed,p321.

[29] [30] [31] [32] [33] [34] [35] [36] [37] [38] [39] [40] [41] [42] [43] [44] [45] [46] [47] [48] [49] [50] [51] [52] [53] [54] [55] [56] [57] [58] [59] [60] [61] [62] [63] [64] [65] [66] [67] [68] [69] [70] [71] [72] [73] [74] [75] [76] [77] [78] [79]

[81] [82] [83] [84] [85] [86] [87] [88] [89] [90] [91] [92] [93] [94] [95] [96] [97] [98] [99] [100] [101] [102] [103] [104] [105] [106] [107] [108] [109] [110] [111] [112] [113] [114] [115] [116] [117] [118] [119] [120] [121] [122] [123] [124] [125] [126] [127] [128] [129] [130] [131] [132] [133] [134]

ThePledgeBetrayed,p321. ThePledgeBetrayed,p134135. Whiteout,AlexanderCockburn,JefferyStClair,Verso,1998,p170. Whiteout,p171. ThePledgeBetrayed,p136. ThePledgeBetrayed,p137138. ThePledgeBetrayed,p154. ThePledgeBetrayed,p151. ThePledgeBetrayed,p155. ThePledgeBetrayed,p162. TheNewGermanyandtheOldNazis,T.H.Tetens,RandomHouse,1961,p44. TheNewGermany,p38. TheNewGermany,p3940. TheNewGermany,p40. TheNewGermany,p41. TheNewGermany,p45. TheNewGermany,p46. TheNewGermany,p47. TheNewGermany,p48. TheNewGermany,p52. TheNewGermany,p176. TheNewGermany,p177. TheNewGermany,p76. TheNewGermany,p136. TheNewGermany,p112. TheNewGermany,p7677. TheNewGermany,p79. TheNewGermany,p201203. ThePledgeBetrayed,p357. ThePledgeBetrayed,p358. LawandWar,p219. BodyofSecrets,JamesBamford,AnchorBooks,2002,p723. KillZone,CraigRoberts,ConsolidatedPressInternational,1997,p154. http://www.airpower.maxwell.af.mil/airchronicles/apj/apj89/parker.html WallStreetandtheRiseofHitler,AnthonySutton,76Press,1976,p6266. WallStreetandtheRiseofHitler,p98. WallStreetandtheRiseofHitler,p85. IBMandtheHolocaust,EdwinBlack,Crown,2001,p409410. TheSecretWar,p356369. Law,p208209. http://www.capecodonline.com/obit http://www.boston.com/globe/nation/packages/secret_history/index7_bar1.shtml TheLastHero,AnthonyCaveBrown,VintageBooks,1982,p324. TheLastHero,p795797. TheLastHero,p798. TheLastHero,p800801. TheLastHero,p94. TheLastHero,p111115. TheLastHero,p110. TheLastHero,p706719. TheLastHero,p638644. TheLastHero,p634639. TheLastHero,p639. TheLastHero,p775777.

[135] [136] [137] [138] [139] [140]

TheConquerors,MichaelBeschloss,Simon&Schuster,2002,p72. TheConquerors,p73. TheConquerors,p192193. TheConquerors,p190191. TheConquerors,p208. TheConquerors,p236237. Unsuccessful Republican candidate for Governor of Connecticut in 1962; later RepublicanNationalCommitteeman Democratic Congressman from Brookyln 195062; Justice of New Yorks Supreme Court Chief of Russian Branch of the US Information Agency during Eisenhower administration. Jamaicaambassador19651968 PersonalpressaideforJohnFosterDulles Minnesotacongressman AmbassadortoEngland,France,Germany;RepresentativetoParisPeaceTalks UnderSecretaryGeneralofUnitedNationsuntil1971 AssistantCommissioneroftheUSOfficeofEducationduringKennedyAdministration DeputyAttorneyGeneralduringEisenhoweradministration Presidentialadvisor DeputyDirectorCIA196265;DirectorNSAcodebreaking196569 ChairmanUSSecuritiesandExchangeduringKennedyadministration CIADirector CIADeputyDirector19621969;DirectorofStateDepartmentIntelligence1969 CIADirector AssistantSecretaryofStateduringKennedyadministration AmbassadortoCeylon,UnionofSouthAfrica,Norway DemocraticcongressmanfromConnecticutelected1958 TreasurySecretary CIADirector AmbassadorSaudiArabia194446 StateDepartmentIntelligence194759 AssistantSecretaryofTreasuryduringEisenhoweradministration SecretaryofHealthEducationandWelfare196568 AmbassadortoIreland19471953 Secretary of Labor 19611962; Supreme Court Justice 19621965; Unsuccessful DemocraticGovernorCandidateforNewYorkin1970 AmbassadortoPoland,Egypt,Argentina,Spain FederaljudgethatruledonthePentagonPaperscase USdefenseadvisortoNATO195560 CIADirector DeputyAssistantSecretaryofDefenseduringEisenhoweradministration SpecialassistanttoCIAExecutiveOfficerduringtheKennedyadministration StatedepartmentsForeignServiceInstitute195561 GeneralCounseloftheCIA StateDepartment19481958 AmbassadortoNATO195355;FreeEuropeCommittee1958 CIADirectorforPlans1967 StateDepartmentrecommendedtotaldisengagementfromVietnam Presidentialadvisor UNESCO195661 ExecutiveDirectorCIAuntil1965

Appendix 1: OSS Personnel Jobs Following the War.

JosephAlsop VictorAnfuso AlexanderBarmine ThomasBeale AndrewBerding JohnBlatnik DavidBruce RalphBunche OliverCaldwell JohnCalhoun DouglasCarter MarshallCarter WilliamCary WilliamCasey RayCline WilliamColby PhilipCombs PhilipCrowe EmilloDaddario DouglasDillon AllenDulles WilliamEddy AlanEvans GilmoreFlues JohnGardener GeorgeGarrett ArthurGoldberg StantonGriffs MurrayGurfein JohnHaskell RichardHelms RichardHeppner RogerHilsman HaroldHoskins LawrenceHouston FisherHowe JohnHughes ThomasKaramessines PaulKattenburg CarlKaysen HenryKellerman LymanKirkpatrick

AmbassadortoSyria,Belgium,Portugal DirectorofCIAsBoardofNationalEstimates1950;PresidentsIntelligenceAdvisory Board1961 WilliamMacomber StateDepartmentspecialassistanttoJohnFosterDulles WilliamMaddox ForeignServiceuntilretirement WalterMansfield FederaljudgeNewYorkCity EdwinMartin Argentinaambassador19641968 LeonardMeeker StateDepartmentlegaladvisor19651969;Romaniaambassador1969 ClarkMcGregor Minnesota congressmen elected in 1960; Assistant to Nixon for Congressional relations1970 FrancisPickensMiller UnsuccessfulDemocraticfor VirginiaGovernor1949 RobertMurphy AmbassadorBelgium,Japan;UnderSecretaryofState19591960 JosephRendon Unsuccessful Republican congressional candidate from New Mexico 1954; Part in Guatemalacoupin1954 WaltRostow Presidentialadvisor196669 SidneyRubenstein SecurityadvisortoUSmissiontoNATO TheodoreRyan RepublicanMinorityleaderandpresidentprotemofConnecticutStateSenate1953 57 RobertSchow AssistantDirectorCIA194951;ChiefofArmyIntelligence195658 WalterBedellSmith CIADirector195053 CharlesStelle StateDepartment195156,DelegatetoNuclearTestBanConference CharlesThayer StateDepartmentResigned1953afterbeingattackedbyMcCarthy MargetTibbets AmbassadortoNorway PaulVanderStrict SpecialassistanttoCIADirectoruntil1971 StuyvesantWainwright RepublicanCongressmanNewYork195260 GeorgeWhite InvestigatorforKefauverCommittee JohnWiley AmbassadortoColombia,Portugal,Iran,Panama HubertWill FederaljudgeChicago HughWilson DirectorofForeignAffairsSectionofRepublicanNationalCommittee FrankWisner ToplevelCIAagent19481962 J.EvelleYounger DistrictAttorneyofLosAngles196468;AttorneyGeneralStateofCalifornia JohnZuckerman Deputy Director of Bureau of International Business Operations; Department of CommerceduringKennedyadministration

RidgewayKnight WilliamLanger

Appendix 2: Captured Documents

CapturedNaziDocuments: DirectiveoftheGermanHighCommandonPoliticalWarfareintheUSA ThefollowingdirectivewasissuedbytheChiefoftheIntelligenceDivisionoftheGermanHighCommand, Admiral Walter Wilhelm Canaris, in 1944. The document lays bare the basic German strategy of scaring the USA with Bolshevism, butat the same timerecommends a longrange policy of RussoGerman collaboration. SECRETSTATEMATTER OKWAbwehr March15,1944 At a meeting of the representatives of the Foreign Office, the Security Division, (SD) and the DepartmentofDefense,(Abwehr),thefollowingresolutionswereadoptedforunifiedactionbyallour agentsinforeigncountries: 1. Utilize to the fullest extent all available possibilities in neutral and enemy countries, in order to supportourmilitaryeffortswithpoliticalandpropagandacampaigns. 2. Our goal is to crush the enemys plan whose object it is to destroy forever the German Reich militarily,economically,andculturally.

Thenewregulationsputintoeffectbythepoliticalleadersforthedissolutionanddisintegrationofthe enemyblocshouldbecarriedoutmoreintensely.Wemustdoourutmosttocreateastateofconfusion anddistrustamongourenemies.Suchastateofdisunitywouldenableustosueforaquickseparate peacewitheitherside.Whileitistruethattheeffortsmadeinthatdirectionhavefailedsofardueto theimplacablehatepolicyofRooseveltandChurchill,itdoesnotmeanthatsomeday,underdifferent conditions, the unnatural front of our enemies could not be broken. Roosevelts electoral defeat this yearcouldhaveimmeasurablepoliticalconsequences. ThepoliticalandmilitaryleadersareoftheopinionthatGermanycannotexpectanymercyfromthe Soviets;onthecontrary,shouldthewartakeaturnfortheworse,wemustassumethattheSlavswill doeverythinginordertoretaliateagainsttheharshtreatmentwehaveinflicteduponthem.Inspiteof everything, no effort should be spared to stir up, through carefully directed propaganda, political animosityinsidetheAngloSaxoncountrieswhichwouldenragetheSovietstosuchadegreethat,asa consequence,theywouldwelcomeachancetoconcludeaseparatepeacewithGermany. In the event of a negotiated peace, or should we be defeated, Germany would have everything to gaininthelongrunbyjoiningtheEast. Rightnow,thechancesforaseparatepeacewiththeWestarealittlebetter,especiallyifwesucceed, through our propaganda campaign and our confidential channels, to convince the enemy that RooseveltspolicyofunconditionalsurrenderdrivestheGermanpeopletowardsCommunism. There is great fear in the USA of Bolshevism. The opposition against Roosevelts alliance with Stalin growsconstantly.Ourchancesforsuccessaregood,ifwesucceedtostirupinfluentialcirclesagainst Roosevelts policy. This can be done through clever pieces of information, or by references to unsuspiciousneutralecclesiasticalcontactmen. We have at our command in the United States efficient contacts which have been carefully kept up evenduringthewar.ThecampaignofhatredstirredupbyRooseveltandtheJewsagainsteverything German has temporarily silencedthe proGerman bloc in the USA. However, there is every hope that thissituationwillbecompletelychangedwithinafewmonths.IftheRepublicanssucceedindefeating Rooseveltinthecomingpresidentialelection,itwouldgreatlyinfluencetheAmericanconductofwar towardsus. The KOleaders abroad and their staffs have innumerable opportunities of constantly referring to Rooseveltshatepolicy.Theymustuseinthiscampaignalltheexistingcontactsandtheyshouldtryto open up new channels. We must point to the danger that Germany may be forced to cooperate with Russia. The greatest caution has to be observed in all talks and negotiations by those who, as anti Nazis, maintain contact with the enemy. When fulfilling missions, they have to comply strictly with instructions. (Sgd.)Canaris GermanPlanforPsychologicalWarfareintheUSA (MemorandumfromDr.ColinRosstotheGermanForeignOffice,1943.) On July 27, 1943, the German Foreign Office expert on the USA, the geopolitician Dr. Colin Ross, suggestedinafifteenpagememorandumaPlanforanIdeologicalCampaignintheUnitedStates. Recognizing Germanys inability to bring the war to a victorious end, Dr. Colin Ross proposed the immediateimplementationofacarefullyplannedpsychologicalwarfaretounderminetheanticipated US military victory. Dr. Ross regarded American public opinion as the weakest link because the AmericanpeopleseemedespeciallysusceptibletoscarepropagandahintingthatadefeatedGermany wouldjointheranksofBolshevism.Thememorandum,whichwasaddressedtotheGermanSecretary ofStateintheForeign Office,vonSteengracht, becamethe guidepost forGermanyshighlysuccessful blackmaildiplomacyinpostwarAmerica.Herefollowsomesignificantpartsofthememorandum. PLANFORANIDEOLOGICALCAMPAIGNINTHEUNITEDSTATES ThePrerequisitesforpsychologicalwarfareare: Analyzethespiritualtemperofworldpublicopinion. Evaluatecorrectlytheideologicalweaponsavailable.

Putbeforetheeyesoftheworldastrategicconceptwhichwillimpressnotonlyourownpeople,but alsotheneutralsandourenemies. Selectthemosteffectivetacticalmethodsfortheaccomplishmentoftheaim. Coordinatetheideologicalcampaigninsupportofourmilitaryandeconomicwarfare. Themoretheprospectsforoutrightmilitaryvictorydiminish,themoreurgentbecomesthenecessity foralloutpsychologicalwarfare. Inanalyzingthisproblem,wecandisregardcompletelythepossibilityoftotalvictorythroughmilitary mightalone,becauseinsuchacasepsychologicalwarfareissuperfluous.However,inthecaseoftotal militarycollapse,wemustcontinuethestrugglebymeansofpsychologicalwarfareuntilthedayarrives when weapons can speak again. In my opinion it is important to point to this ultima ratio now and emphasizeitmorethaneverbefore.PsychologicalwarfarewillproveespeciallysuccessfulintheUSA wheremanygroups(weiteKreise)arefedupwiththewar. Underallcircumstancesweshouldprepareourselvesfortheworst,notinaspiritofdefeatism,butin ordertocopemoreeffectivelywithdefeatisminthehourofcollapse.Itisimportantthatweseetoit that our enemies, especially the Americans, should not bask themselves in the sun of victory or that they enjoy the role of being the liberators of Europe. Therefore, it is necessary to set up a far flung organization in every country which, under enemy occupation, must carry on the task from the underground.WemustdoeverythingpossibletoimpressuponAmericanpublicopinionthatafterthe liberationofEuropetheywillbecomeinvolvedinanendlessmazeofinsolublecontradictions.However great their sacrifices may be, they will end up in a blind alley, exactly as it happened in 1918 under Wilsonsgrandioseplanning. WehavetousetheargumentthatiftheenemysucceedsinstampingoutFascismorNazism,there will remain only Bolshevism. Thus, a Germany threatened by the AngloAmericans with dismemberment,willthrowherselfcompletelyintothearmsoftheSoviets,andinthatwaywillmake Bolshevismunconquerable. Thisisthetimetomakeupthebalancesheetandtostartwithlargescalepreparationinordertomeet thecominginvasion.Ourdefensemustnotremainlimitedtomilitarymeasuresalonebutmustemploy everyavailableweaponofpsychologicalwarfare.Theideologicaloffensiveistheorderoftheday. AmericanDocuments: GermanysPreparationforaComeback I OnMarch30,1945theUSStateDepartmentannouncedthatreliableinformationcollectedbyAllied GovernmentsclearlyindicatesthattheNaziregimeinGermanyhasdevelopedwellarrangedpostwar plansfortheperpetuationofNazidoctrinesanddomination.Someoftheseplanshavealreadybeenput into operation and others are ready to be launched on a widespread scale immediately upon terminationofhostilitiesinEurope: Fromtheofficialrelease,thefollowingpartsarequoted: Nazi Party members, German industrialists and the German military, realizing that victory can no longer be attained, are now developing postwar commercial projects, are endeavoring to renew and cement friendships in foreign commercial circles and are planning for renewals of prewar cartel agreements. An appeal to the courts of various countries will be made early in the postwar period throughdummiesforunlawfulseizureofindustrialplantsandotherpropertiestakenoverbyAllied governments at the outbreak of war. In cases where this method fails, German repurchase will be attempted through cloaks who meet the necessary citizenship requirements. The object in every instance will be to reestablish German control at the earliest possible date. German attempts to continue to share in the control and development of technological change in the immediate postwar period is reflected in the phenomenal increase in German patent registrations in foreign countries duringthepasttwoyears.Theseregistrationsreachedanalltimehighin1944.Theprohibitionagainst exporting capital from Germany was withdrawn several months ago, and a substantial outflow of capitalhasfollowedtoforeigncountries.

Germantechnicians,culturalexperts,andundercoveragentshavewelllaidplanstoinfiltrateforeign countries with the object of developing economic, cultural and political ties. German technicians and scientificresearchexpertswillbemadeavailableatlowcosttoindustrialfirmsandtechnicalschoolsin foreigncountries.Germancapitalandplansfortheconstructionofultramoderntechnicalschoolsand researchlaboratorieswillbeofferedatextremelyfavorableterms,sincetheywillaffordtheGermans anexcellentopportunitytodesignandperfectnewweapons.ThisGovernmentisnowinpossessionof photostatic copies of several volumes of German plans on this subject. The German propaganda program is to be an integral part of the overall postwar program. The immediate aim of the propagandaprogramwillbedirectedatremovingAlliedControlmeasuresbysofteninguptheAllies through a subtle plea for fair treatment of Germans and later the program will be expanded and intensifiedwiththeobjectofgivingrebirthtoallNazidoctrinesandfurtheringGermanambitionsfor world domination. Unless these plans are checked, they will present a constant menace to postwar peaceandsecurity. II ExcerptsofstatementbyWilliamL.Clayton,formerAssistantSecretaryofState,tothesubcommittee oftheCommitteeonMilitaryAffairs,USSenate. June25,1945 The second matter I should like to discuss relates to the current and urgent problem of frustrating Germanattemptstohideabroadastakeforanothergambleatworlddomination. TheDepartmentofStatehasabundantevidencethattheNazis,inanticipationofmilitarydefeat,made careful plans to carry on in Foreign countries a wide range of activities necessary to support an eventualresurgenceofGermanpower.Forthispurposeplanswere made,andcarriedoutinpart,to transferabroadsufficientfundsandspeciallytrainedpersonneltocarryonpanGermanactivities,even whiletheAlliedarmieswereinoccupationofGermany. ThesuccessofGermaneffortstocarryoninforeigncountriesactivitiesinimicaltotheUnitedNations must depend on their ability to mobilize funds to support the execution of their plans. Consequently, theyhavemadestrenuouseffortstomoveabroadassetsofallkinds,whichcanbeconvertedintofunds forthefinancingofhostileactivities. OursafehavenprogramisacombinedeffortoftheDepartmentofState,theTreasuryDepartment,and theForeignEconomicAdministrationtodenytoGermany,intheinterestsofjusticeandfuturesecurity, the economic power arising from (a) the organized looting of occupied countries, (b) the flight of Germancapitalinanticipationofdefeat,and(c)theGermancapitalinvestmentalreadylocatedabroad whenthewarbegan. Our investigations have yielded a considerable amount of information which indicates the schemes and devices which the Germans planned to use in order to safeguard their foreign holdings and transfer additional property abroad. In many cases, they have concealed their interests in foreign properties through holding companies as cloaks. In other cases they have abandoned formal voting control,butretainedafirmgriponmanufacturingconcernsthroughdominationoftechnicalprocesses. Theyhavetransformedtheirholdingsintobearersharesinordertotakeadvantageofthefactthatthe titletosuchsharescanbetracedonlywithextremedifficulty.Moreover,theGermanshavealsotaken advantageinsomecountriesofadministrativeinefficiencyandcorruption.Theextenttowhichthiscan besaidineveryneutralcountrytohavebeenthefaultofprivateindividualsaloneisproblematical. The Germans systematically looted all manner of valuable property, not only to satisfy the esthetic sensibilities of such celebrated collectors as Goering, but to acquire wealth cheaply for concealment abroad. Lootingreacheditsalltimelowwhengoldwaspickedfromtheteethofgaschambervictims.Amore subtleformofoutrightlootingwasoutrightpurchasewithoccupationcurrencyfromfearfulsellers. ReportonGermanysWarPotential OnJuly10,1945,SenatorKilgoreoftheSubcommitteeonWarMobilization,submittedthefollowingreport totheSenateMilitaryAffairsCommittee,apartofwhichisbelowsetforth:

Mr. Chairman, we have the honor to submit to you a preliminary report on the subcommittees studies of German resources for a third world war. In its report of November 1944 on Cartels and National Security, your subcommittee found that the Germans systematically engaged in economic warfare as a prelude to military conquest. Our investigations even at that date supported the conclusionthattheGermanaggressorshavebeguntopursueastrategywhichtheyfoundsuccessfula quarter century ago; they are already deploying their economic reserves throughout the world in preparationforathirdattemptatworlddomination. I Germany in defeat remains a major threat to the peace of the world. The Germans, who have twice within the century launched the most devastating wars, have already set in motion plans for a third attempttoenslavetheworld.Nopeacemakingcanbesuccessfulwhichdoesnotattheoutsetthwart these plans and destroy Germanys potential for war making. This is the indispensable condition to peaceinEurope.LastingworldpeacerequiresalsotheunconditionaldefeatofJapanandthesmashing ofherwarpotential. II Germanytodayisbetterpreparedtoimplementherplotforworldconquestthanshewasattheendof World War I. Her major resources include (1) the worlds third strongest industrial economy; (2) tremendous industrial recuperative power; (3) a worldwide network of economic and political reserves and a system of commercial interrelationships penetrating the economies of other nations; and(4)thescienceofaggressionperfectedbyherleadingindustrialists,militarists,andpoliticiansto reversethedecisionsofthebattlefield. TheGermanWarEconomy Germany is an industrial giant whose economy for half a century was developed by the Junker industrialistcliqueasanengineofwar.ThestrengthofGermanyswarmachineliesnotonlyinher over expanded metallurgical and chemical industries, but in her enormous industrial flexibility and recuperativepower,displayedbeforeandthroughoutthewar.ItappearsthatifGermanyhadheld out6monthslonger,shewouldhavebeensendingmoredestructiveV2bombstosmashtheheartof New York. Germanys recuperative power rests on her greatly expanded machinetool industry, her reserves of skilled scientists and technicians. Except for the United States, Germany remains the outstandingmachineshopintheworld.Germanscienceprovidedthesyntheticfuelsandrubberwhich enabledherarmiestodriverelentlesslyoverEurope.Germanscientistsandtechnologistscreatednew anddiabolicalweapons. In the period between World War I and World War II, Germany created economic, political, and espionage outposts throughout the world. In the United States, Germany retrieved many of the properties which had been seized during the First World War. She penetrated so deeply into key industries of Latin American countries that a State Department official testified before the subcommittee that liquidation of the Germancontrolled enterprises would have crippled the economiesofanumberofthesecountries.TheGermansalsomadestronginroadsintotheeconomies ofSpain,Sweden,Switzerland,Turkey,Portugal,Finland,Bulgaria,andRomania. Germanowned or dominated firms not only served to procure raw materials, increase German trade,andobtainmuchneededforeignexchangeforGermany,buttheyactedascentersofespionage andasintermediariesforthefinancingofNazipoliticalactivities. During the war, in an endeavor to maintain intact its assets in enemy countries, it used the neutral countriesasacloakforGermanownershiporcontrol. Despite the strenuous efforts of the United States and the cooperation of a number of the Latin Americancountries,theevidenceisunmistakablethatGermaninfluenceisstillstronglyentrenchedin thishemisphere,particularlyinArgentina.TheUnitedStatesitselfmaybeoneofthemostimportant safe havens for German assets. There is over a halfbillion dollars of seized assets held in unnamed Swissaccounts,whicharenowblockedbytheUnitedStatesonreasonablesuspicionthattheseassets mayinfactbeGerman. TheScienceofAggression

LeadingGermanindustrialists,militarists,andpoliticianshaveattheirdisposalalongandcarefully developedscienceofaggression.Thissciencerestsonaseriesofmajordeceptions:(a)thatthewarof aggression is the product of a few Nazi fanatics; (b) that the German economy is a normal civilian economy and should be maintained as such; (c) that the entire network of relationships between Germancartelsandmonopoliesofothercountriesisessentialtotheconductofinternationaltradeand industrial progress; (d) that German science and German scientists are an instrument of human progress; and (e) that the Allies have less to fear from Germany than they have to fear from one another. TheevidenceshowsthatGermanindustryhasbeendominatedbyanumberofcombinesanddomestic monopolies, chiefly in the basic industries, and that the leaders of these combines, together with the JunkersandNazis,wereGermanysprincipalwarmakers.Constitutingakindofeconomicgeneralstaff, immediatelyafterVersaillesandwiththeassistanceoftheWeimarRepublicwhichtheyinfiltrated,they begantoconsolidatetheirpositionwithinthecountryandsecretlytorearmGermany.Bymanipulating reparations,byplanned bankruptcy,byGovernmentsubsidiesandtariff protection,andby masterful use of international cartel relationships, they disarmed their prospective victims and with the assistance of those prospective victims, perfected their own war machine. Hitler and the Nazis were latecomersinthesepreparations.Itwasthecartelandmonopolypowerstheleadersofthecoal,iron andsteel,chemical,andarmamentcombineswhoatfirstsecretlyandthenopenlysupportedHitlerin order to accelerate their ruthless plans for world conquest. By 1931 the coal cartel, one of the most powerfulindustrialcombinesinGermany,openlyplaced aroyaltyoneverytonofcoalsold,whether domesticallyorabroad,inordertofinancetheNaziParty. Awitnessbeforethesubcommittee,whoonlyrecentlyinterrogatedsomeofGermanyskeyindustrial leaders,nowjailed,pointedoutthattheseleadersconfidentlyexpecttoberescuedfromtheirpresent plight by powerful British and American friends who were their former cartel affiliates. These industrialistsremaintheprincipalcustodiansofGermanysplansforfuturewar. III YoursubcommitteefindsthattheGermaneconomywasdevelopedasawareconomy,andthatits vast industrial potential remains largely undamaged by the war; that Germany has a worldwide networkincludingeventheUnitedStatesofcommercialrelationshipsandeconomic,political,and espionage outposts which she could mobilize for another war; that the leading German industrialists arenotonlyasresponsibleforwarcrimesastheGermanGeneralStaffandtheNaziParty,butthatthey wereamongtheearliestandmostactivesupportersoftheNazis,whomtheyusedtoacceleratetheir plans for world conquest, and that these industrialists remain the principal custodians of Germanys plansforrenewedaggression. The experience of the years following World War I demonstrates conclusively that without the active understanding,support,andparticipationofthepeopleasawhole,theeffortsofafewcommissionersandeven anarmycorpscanavailnothingagainstthedesperateschemesofadeterminedandskillfulgroupofGerman leaderswhohavethoroughlyindoctrinatedtheirownpeopleandsystematicallydeceivedtherestoftheworld. TheNazisextractedthefillingsofitsvictimsafterbeinginformedbyDegussathatthecompanycouldrefine it into marketable gold bullion. Degussa was awarded an exclusive contract with the Nazis to refine all gold. ThecompanywasalsojointownerswithI.G.FarbenofDegesch,afirmthatproducedZyklonBcyanidetablets usedinthegaschambers.DuetothehoardofgoldfillingsstackingupatAuschwitz,Degussabuiltasmelter there. The bullion was then shipped back to Berlin and commingled with the Nazis gold stash. Undoubtedly someofitmadeitswaybacktothebankerinchargeofUnitedSteelWorks,PrescottBush.

Appendix 3: Gold Fillings, Auschwitz & George Bush

FromtheStreetsofLittleBeirut January16,2003 ByGlenYeadon Therewerelittlewarningsigns,butfewwerepayingattentionwhenGeorgeBushthepoppyranforpresident in1988and1992.Firstduringthecampaignitsurfacedthatoneofhiscampaignstafferswasadistributorof proNazipropaganda.Beforetheinkwasdryontheindividualsresignation,furtherrevelationsshowedthere

wereinfactanumberofexNazisonBushscampaignstaffincludingLaszloPastorandYaroslavStetsko.Pastor was a member of the Hungarian Arrow Cross during WWII and served as an envoy to Germany. The Arrow Crosswasknowntobeexcessivelybrutal,eventotheirNaziallies.Stetskoservedastheprimeministerofthe short lived Ukrainian puppet government. During the short reign of this puppet regime, over 100,000 Jews were slaughtered in Lvov. George Bushs insensitivity towards victims of the holocaust is underlined by his employmentofFredMalek,awellknownNazicollaborator,inbothhispresidentialcampaigns. Uponwinningthepresidentialrace,GeorgeBush,thepoppy,placedhisassetsinablindtrustheadedbyhis close friend William Stamps Farish, III. That appointment should have triggered alarm bells that something very dark and sinister is buried in the Bush familys past. His grandfather, William Stamps Farish, sold the Japanese the gasoline used in the attack on Pearl Harbor. Likewise, the elder Farish supplied Hitlers war machinewithoilandtetraethyllead.GeorgeBushsfather,PrescottwasclosefriendswiththeelderFarishand remained so, even after the elders testimony before Congress provoked Harry Truman to cry out, This is treason. In fact, during the war, Prescott had three companies seized from him for trading with the Nazis. To understandthewebofintrigueandfollowthemoneyfromtheHolocausttotheBushfamily,weneedtostart withtheperiodimmediatelysurroundingWWI.By1916AugustThyssencouldseethatGermanyhadalready lost the Great War and he needed to protect his fortune. His eldest son had been groomed to run the family steel business in the Ruhr. His second son, Heinrich, discreetly changed his citizenship from German to HungarianandmarriedtheHungarianaristocratBaronessMargritBornemiszadeKaszon.Neartheendofthe war, August Thyssen opened the Bank voor Handel en Scheepvaart in Rotterdam. Holland was a neutral country during the war and the new bank would serve as the perfect location to launder funds from the ThyssenBankinBerlinandprotecthisfortunefromalliedfinancialdemands.AttheendofthewarHeinrich, now going by the name of Baron Thyssen Bornemisza de Kaszon, moved to Rotterdam and became the principal owner of the Bank voor Handel en Scheepvaart. All that remained to be done in August Thyseens planwastosetupanAmericanBank. In 1922, Averell Harriman traveled to Germany to set up a branch of W.A. Harriman in Berlin. Harriman hadhiredGeorgeHerbertWalker,GeorgeBushsgrandfather,torunboththeNewYorkandBerlinbranchesof hisexpandinginvestmentfirm.DuringhisstayinGermany,HarrimanhadmettheThyssenfamilyandagreed tohelptheThyssenssetupanAmericanbank. In 1923, Germany was in economic shambles and Thyssen met with his friend, General Ludendorff, who advisedhimthatGermanyshopeliedwithHitlerandtheNaziParty.Thyssensoonbecameafinancialbacker oftheNazisandHitler. Early in 1924, Hendrick J. Kouwenhoven, the managing director of Bank voor Handel en Scheepvaart, traveled to New York. Meeting with Walker and the Harriman brothers, they founded the Union Banking Corporation. In 1926, August Thyssen died; the eldest son, Fritz, expanded the Thyssen empire by creating United Steel Works. Thyssen also brought Fredich Flick on board. The ThyssenFlick union was designed to suppresstheunionmovement.AsaresultofthemergerofThyssenandFlick,GeorgeWalkerhiredhissonin law,PrescottBush,tomanagetheUnitedSteelWorksaccount.OnedivisionofUnitedSteelWorksconsistedof bothConsolidatedSilesianSteelCorporationandtheUpperSilesianCoalandSteelCompany.Bothwerelocated in the mineral rich Silesian area of Poland. The arrangement was extremely profitable for all four men: Thyssen, Flick, Walker and Bush, until the depression started in 1929. Congressional investigations after the war showed that United Steel had supplied 50.8 percent of the pig iron in Nazi Germany and likewise was a major supplier of all other ferrous based metal products needed by Hitlers war machine. Hence, one of the largest munitions makers in Nazi Germany was funded by Prescott Bush, the father and grandfather of two futureUSPresidents. Due to the depression, Harriman merged with Brown, forming the Brown Brothers and Harriman firm. InternallythestockofConsolidatedSilesianSteelCompanywasheldbytheHarriman15Corporation,formed by Harriman and Bush. Two thirds of the stock was owned by Flick. By 1934, with Hitler in solid control of Germany,theprofitsfromtheThyssenFlickunionsoaredtooverahundredmillion.BothUnionBankandthe Bank voor Handel en Scheepvaart were overflowing with money. Prescott Bush became managing director of UnionBankandtookoverthedaytodayoperationsoftheGermanplan. In 1939, the Nazis invaded Poland, ending a dispute over taxes between Consolidated and the Polish government. The Nazis original plan was to replace the workers in Polish factories with Soviet prisoners. However, that portion of the HitlerStalin agreement was never implemented. Consolidated Silesian Steel

Corporation was located near the Polish town of Oswiecim. When the plan to use Soviet prisoners as forced laborfellthrough,theNazisbeganshippingJews,communists,gypsiesandotherminoritypopulationstothe camptheNazishadsetup.ThiswasthebeginningofAuschwitz.ThereasonAuschwitzwaslocatedtherewas becauseoftheabundantsuppliesofcoalwhichcouldbeprocessedintoaviationfuel.I.G.Farbensoonbuilta plant near Auschwitz to take advantage of not only the nearby coal deposits but also the slave labor supply availableatAuschwitz.AccordingtoaDutchintelligenceagent,PrescottBushmanagedaportionoftheslave laborforceinPoland. Thyssen and Flick sold Consolidated Steel to UBC. Under the complete control of Harriman and Bushs management,thecompanybecameSilesianAmericanCorporation,whichbecamepartofUBCandHarrimans portfolioof15corporations.Asthe1930sprogressedanditbecameclearerthatwarwasimminent,Bushand HarrimanhiredtheDullesbrotherstoconcealtheNazimoneyandownershipinUnionBank.Inconcealingthe involvementoftheNazisinUnionBank,PrescottBushandHarrimanundoubtedlyknewthattheywerealready engagedinanactivitythatwasprobablyillegalandcertainlynotinthebestofinterestsoftheircountry.Once warbrokeout,however,BushsactivitiesonthebehalfoftheNazisthroughUnionBankingbecametantamount totreason. The reader should understand that the concealing of Nazis assets located in the United States through a mazeofcorporateshellsoftenbasedinSwitzerlandwasanintegralpartoftheGermanbattleplan.Infact,the Nazishadawordforit,tarnungortocamouflage.TheprimaryaimoftheseconcealedNazicorporationswasto wage economic warfare by creating production bottlenecks for their adversary. The reader should also be awarethattwoAmericanswerepresentduringthesecretmeetingoftheGermanelitethatbroughtHitlerto power.ThosetwoAmericanswereJohnFosterandAllenDulles. TwoofthedirectorsofUnionBanking,GroningerandKouwenhoven,wereNazidirectorsoftheBankvoor HandelenScheepvaart,formerlythevonHeydtBank.VonHeydtwasalsoaNaziandhasbeenidentifiedasthe intermediary between the Guaranty Trust and Adolf Hitler. Both Groninger and Kouwenhoven contributed lavishlytoHimmlersCircleofFriends.TherewereoverfortyfirmsaroundAuschwitzusingslavelaborfrom thedeathcamp.SoontheNazishadamassivestoreofgoldfromdentalfillings,glassesandjewelry.TheNazis extracted the fillings of its victims after being informed by Degussa that the company could refine it into marketable gold bullion. Degussa was awarded an exclusive contract with the Nazis to refine all gold. The companywasalsojointownerswithI.G.FarbenofDegesch,afirmthatproducedZyklonBcyanidetabletsused inthegaschambers.DuetothehoardofgoldfillingsstackingupatAuschwitz,Degussabuiltasmelterthere. ThebullionwasthenshippedbacktoBerlinandcommingledwiththeNazisgoldstash.Undoubtedlysomeofit madeitswaybacktothebankerinchargeofUnitedSteelWorks,PrescottBush. On October 20, 1942 the United States government seized Union Banking under the Trading with the EnemyAct.Duringthatsummer,TheNewYorkTribunehadexposedBushandThyssen,whomitcalledHitlers Angel.UnionBanksbooksrevealedamyriadofNazimoneyandholdingcompanies.Officialsrealizedtheyhad only scratched the tip of the iceberg. On November 17, 1942, the government seized Silesian American CorporationandplaceditsoperationundertheGovernmentAlienPropertycustodianoffice. Followingthewar,authoritiesseekingtolocatetheDutchRoyalfamilysjewelrydiscoveredthetransaction papers of the Silesian American Corporation in the books of Bank voor Handel en Scheepvaart. The bank manager, H.J. Kounhoven came under intense scrutiny and was shocked by the discovery. Soon Kounhoven traveled to New York to inform Prescott Bush. Dutch authorities date the meeting as soon after Christmas 1947.Twoweekslater,theotherwisehealthyDutchbankerdiedofaheartattack.Coincidentally,thiswasthe methodofchoiceoftheGehlennetworkforliquidatingpeople.TheNazishadperfectedamethodofinducing heartattacksthatautopsiescouldnotdetect. OnFebruary8,1951,ThyssendiedinArgentina.Followinghisdeath,theAlienPropertyCustodianreleased theassetsoftheUnionBankingCorporationtoBrownBrothersHarriman.Theremainingshareholdersquietly cashed in their remaining shares. Prescott Bush received $1.5 million for his share in Union Bankings blood money. ThisbriefarticlehasonlyscratchedthesurfaceofthesordidassociationofPrescottBushwiththeNazis,as hehadyetathirdcompanyseizedfromhimduringthewar.Inhisfirstrunforsenator,Prescottwasdefeated afterhispositionwithintheeugenicsmovementwasdisclosed.Georgethepoppyhasfollowedinhisfathers footstepsandretainedmanyofthe samefamily connectionswiththeNazis.Forinstance,aschairmanofthe RepublicanParty,hepresidedovertheformationoftheEthnicHeritagegroupsoftheRepublicanParty.This was a reward for the Nazi quislings from Eastern Europe for helping in the election of Nixon as president.

When two or more ethnic groups were vying for control over a particular group, invariably the group with closetiestotheNaziswonout.Georgealsoshowsthesameintenseinterestinpopulationcontrol.Perhapsit wasforhisbeliefsineugenics,GeorgeappointedDraperashisexpertonpopulation.Orperhapsitwasmoreof a reward for past services rendered by Draper to the Bush family. Draper was the former general placed in controlofthemilitarygovernmentseconomicdivisionafterthewar.Draperwasarabidracistandmemberof theEugenicsSociety.HewasalsoaformeremployeeofDillonandReed,thelargeWallStreetbrokeragehouse that floated the largest German bond offerings, including one for United Steel Works. In his position as economic czar of Germany, he stopped the dismantling of an I.G. Farben plant and was in the ideal slot to protecthisformerclientsthatarmedHitler,includingBush. The same close associations are apparent with Bush junior. One interesting pattern in international relationsisreadyobservedthattheIsraeligovernmentmovestothehardrightwheneveraBushisintheOval Office.ConsideringIsraelhasoneofthebestintelligenceagenciesintheworldandperhapsthemostextensive databaseontheholocaust,couldtheIsraelihardlinersbeblackmailingtheBushes?Dotheyhaveasmoking gunthatwouldatonceendthepoliticalaspirationsoftheentireBushclanaswellasplacethefamilywealthat riskfordamagessufferedduringtheHolocaust?Oneresearcheralreadysaysthefamilywealthisatriskinsuch suits;thetiesarethatstrong. Anyreasonablepersonunderstandsthatthetragedyof911wasallowedtohappen.OnlytheWhiteHouse canordertheinterceptorstostanddown,onceanaircraftdeviatesfromitsflightplanorcontactislost.Within 30minutesofthetimethegolfersplanethatdecompressedfailedtofollowdirectionsfromthecontroltower, afighterwasalongsideandshadowedtheplaneuntilitranoutoffuelandcrashedinthemidwest.Thestory that no fighters were available is simply a lot of bullshit. There are probably no less than a dozen or more airportswithinrangeofNewYorkandWashington,DCwithfightersquadronsonstandby.YetBushwantsus tobelievethattheentireEastCoast wasleftunprotectedwithnofighterstoprovide aircover,includingthe restrictedairspaceovertheWhiteHouse.The911tragedywastheReichstagfireandthesocalledPatriotAct, theenablingactforanotherfascistgovernment. WithAmericanbloodabouttostainthesandsoftheMideastwhyhasntthemediafocusedonthemerchant of death, who armed Saddam? They would need to look no further than George Bush, the poppy and Vice President Dick Cheney. Poppy Bush is rubbing his hands with glee, counting potential profits for his Carlyle Group.ThegroupholdsstocksindefenseindustriesthatarmedSaddamduringtheReaganyearsandprovided armsfortheUSmilitary.ThisisthewaytheBushfamilymakesitmoney.JustaskPrescott.ItdidnttakeDick long to learn that secret. After the first Bush administration in which Cheney was the head of defense, he became headofHalliburton.While atHalliburton,Dicksold hundredof millionsofdollarsworthofdualuse equipmenttoIraq. Standbehindtheyoungsoldiersandwaveaflagforthem,astheyaremerecannonfodderforthisfascist clique.Dontwaveaflagforthemostcorruptadministrationinthehistoryofthecountrythatshellbenton installingafascistregimebeholdentonooneotherthancorporateinterests. Yourfreedomdependsonit.

Appendix 4: Timeline of Treason: The Bush Family Connections to the Nazis

1833: SkullandBonesSocietyformedatYale. 1897: UnionPacificRailroad(UPR)bankrupted. 1898: UnionPacificRailroadsoldtoEdwardHenryHarriman&partner,JudgeRobertScottLovett.Thedeal wasmanagedbyKuhnLoebbrokerageofwhichFelixWarburgwasapartner. 1902: PaulandFelixWarburgimmigratetotheUnitedStates. 1904: GermanAlfredPloetzfoundsTheArchiveforRacialandSocialBiology,whichbecomesthechiefjournal oftheGermaneugenicsorracehygienemovement.ErnstHaeckelpopularizedeugenicsinGermany. JohnD.RockefellerissuesOccasionalLetterNo.1detailingplanstomoldthepeople,reducenational intelligencetothelowestcommondenominator,destroyparentalinfluence,traditionandcustoms,and eliminatescienceandreallearning,inordertoperfecthumannature. Eugenics laboratory established at Cold Springs Harbor on Long Island constructed by Charles B. Davenport. Cold Springs Harbor was also the location of the estates of both Dulles brothers. Cold Springsfacilityisfundedinexcessof$11millionbytheHarrimansandtheRockefellers. 1907: SamuelBushelectedPresidentofBuckeyeSteelCastingsCo.inColumbus,Ohio.Forhisentirecareer, Samuel Bush supplied Wall Street railroads with castings. Later Bush became a close advisor of

 1909: 1911: 1913: 1914: 1915:

1917: 1918: 1919: 1920:

1922:

1923: 1924:

1925:

President Hoover and was the first president of the National Manufactures Association (NAM). NAM has a history of supporting fascism and later in the 1950s, members of NAM led by Robert Welch formedtheJohnBirchSociety. Indianapassesthefirsteugenicslaw. The Rockefeller Foundation was established. The Rockefellers supported the eugenics movement, includingtheKaiserWilhelmInstituteinGermany. JohnFosterDullesjoinsSullivanandCromwell. Federal Reserve Bank created. Paul Warburg served as a governor of the bank during WWI. At the sametime,hisbrotherMaxwastheheadoftheGermanSecretService. Withwarcloseathand,PercyRockefellertookcontrolofRemingtonArms&appointsSamuelF.Pryor asCEO. Dullesuncle,RobertLansing,wasappointedSecretaryofState.Lansingrecruitedhisnephewtogoto Nicaragua,CostaRicaandPanamaonthepretextofcompanybusiness,butinrealitytosoundoutthe LatinAmericansonaidingtheUSwareffort.CostaRicawasledbytheviciousdictatorFedericoTinoco. DullesadvisedWashingtontosupportthedictator,ashewasantiGerman.Dullesalsoencouragedthe NicaraguadictatorEmianianoCamorrotoissueaproclamationsuspendingdiplomaticrelationswith Germany. In Panama, Dulles offered to let Panama waive the tax on its annual canal fee as long as PanamawoulddeclarewaronGermany. Prescott Bush joins the Skull and Bones. Both his son and grandson George and George W. likewise wereSkullandBonesmembers.BrownBrothers&Harrimanhadanexceptionalnumberofmembers duringthe1930s. RobertScottLovettelectedpresidentofUnionPacific.SamuelBushappointedtofacilitiesdivisionof theUSWarIndustriesBoardchairedbyBernardBaruch&hisassistant,ClarenceDillon. GeorgeHerbertWalkerformsW.A.Harriman&Co.WalkerispresidentandCEO. Averell Harriman, son of Edward Harriman, is the chairman. Averell would later serve as US AmbassadortotheUSSR19431946andasUSSecretaryofCommerce19461948. Dullesbrothersinvolvedinthetreatynegotiationsafterthewar. Averell Harriman and George Walker gain control of German HamburgAmerika Line. The deal was arrangedthroughthechiefexecutiveGermanHamburgAmerika,WilliamCuno,andMaxWarburg of the shipping lines bankers, M.M. Warburg. The name of the firm was changed to American Ship & CommerceCorp.SamuelF.PryorofRemingtonArmshadbeeninvolvedinthedealandnowservedon theboardoftherenamedcorporation.CunowaslateraheavycontributortoNaziPartyfunds. Averell Harriman opened a Berlin branch of W.A. Harriman. A US government memorandum dated October51942totheExecutiveCommitteeoftheofficeoftheAlienPropertyCustodianindicatesthat sometimepriorto1924,HarrimanwasinEuropeandmetwithThyssen.Theyagreedtosetupabank forThysseninNewYork.Additionally,thememorandumindicatesThyssensagent,H.J.Kouwenhoven, traveledtoNewYorkbefore1924inregardtothisconnection. TheModelEugenicSterilizationLawwaspublishedbyHarryLaughlin.Thelawledtothesterilization ofover20,000AmericansandserviceasthebasisoftheNuremberglawsadoptedbytheNazis. FritzThyssenbeginstocontributetotheNaziparty. W.A.Harriman&Co.invests$400,000insettingupUnionBankingCorptoactinpartnershipwiththe Thyssenowned Bank voor Handel en Scheepvart in Holland. Prescott Bush brought into the firm to manageUnionBank.PrescottwasthesoninlawofGeorgeWalkerandsonofSamuelBush.Unionbank isnowinthepositiontotransferfundsbackandforthforThyssensUnitedSteel. Coinciding with the Dawes Plan, which is discussed elsewhere in this chapter, John Foster Dulles arrangedalargeloanforKrupp.FortheloanDulleshadcalledLelandHarrison,assistantsecretaryof state,onaSaturdaytosoftpedaltheiteminthenews.Harrisonwasinfuriatedbecausethedepartment hadissuedacircularaskingtosee foreignloans beforeAmericanfundswereexported.Dullesknew, however, that Harrison had no authority to stop the loan. Dulles wanted to avoid the State DepartmentsscrutinyastowhetherGermanfactorieswereproducingmilitaryhardware.Sullivanand Cromwell at Dulles behest accepted the assurances of Krupp that all military hardware had been destroyed. EthylCorporationformedjointlybyStandardOilandGeneralMotors. I.G.hasestablishedpowerfulalliesinsidetheRepublicanadministration.ThethenSecretaryof

1926:

1927: 1929: 1930:

1931:

1933:

Commerce,HerbertHoover,appointsaninememberboard,HooversChemicalAdvisoryCommittee. SeatedonthecommitteewereWalterTeagle(StandardOilofNewJersey),LammotduPont,Frank Blair(PresidentofSterling)andHenryHoward(VicepresidentofGrasselli).Despitetheextensiveties thefourhadwithI.G.,theysatonacommitteewhoserolewastohelpAmericaschemicalindustry fightofftheI.G.cartel. PrescottBushpromotedtovicepresidentofW.A.Harriman&Co.ClarenceDillonofDillonRead,setup theGermanSteelTrustwithThyssenandpartner,FredrickFlick.Accordingtotheterms,DillonRead wouldhandletheTrustscorporatebankinginreturnfortwoDillonReadrepresentativesbeingonthe boardoftheGermanSteelTrust.AlbertVoeglerwasthechiefexecutiveoftheGermanSteeltrustwas. Voegler was another industrialist that was instrumental in bringing Hitler to power. He also held directorships in Thyssens Dutch bank and the HamburgAmerika Line. Union Bank was not in partnership with Flicks empire, Silesian Holding Co. Walker, Bush and Harriman owned a third of FlicksholdingcompanyandcalledtheirshareConsolidatedSilesianSteelCorp. AmericanI.G.foundedasaholdingcompanycontrollingI.G.FarbenassetsintheUnitedStates.Some board members were Edsel Ford, Charles Mitchell (President of Rockefellers National City Bank of New York), Walt Teagle (President of Standard Oil), Paul Warburg (Federal Reserve chairman and brother of Max Warbug, financier of Nazi Germanys war effort and Director of American I.G.) and HermanMetz,adirectoroftheBankofManhattan,controlledbytheWarburgs.Threeothermembers oftheBoardofGovernorsforAmericanI.G.weretriedandconvictedasGermanwarcriminals. AllenDullesjoinsSullivan&Cromwell. JohnFosterDullesdirectorofGAFCompany(AmericanI.G.)until1934. StandardOilandI.G.Farbenbegincartelnegotiations. Harriman bank bought Dresser Industries, supplier of oilpipeline couplers to Standard and other companies.PrescottBushbecameadirectorandfinancialczarofDresser,installinghisYaleclassmate NeilMallonaschairman. Dulles arranged for a wealthy Czech family, the Petscheks, to sell their interest in Silesian Coal to GeorgeMernane.MernanewasusedmerelytohidethePetscheksinterest.Dullesthensoldtheshares to his friend Schacht, the Nazi economic minister. After the sale, Dulles became director of ConsolidatedSilesianSteelCompany.ItssoleassetwasaonethirdinterestinUpperSilesianCoaland SteelCompany.TheremainderoftheshareswascontrolledbyFredrickFlick. W.A.HarrimanmergeswiththeBritishfirmBrownBrothers.ThatcherBrown,PrescottBushandthe two Harriman brothers were the senior partners in the new firm of Brown Brothers and Harriman. RobertLovettsonofRobertScottLovettandaclosefriendofPrescottBushbecameapartnerinthe new firm. Lovett would later serve as Asst. Sec. for Air during the war, as Under Sec. Of State 1947 1949, as Deputy Secretary of Defense 19501951 and as Secretary of Defense 19511953. Prescott Bush ran the New York office while the London office of the new firm was ran by Thatcher Brown. Montagu Collet Norman, governor of the Bank of England and close friend of Prescott Bush often stayingwiththeBushfamilyonhisvisitstoNewYorkwasapartnerofBrownBrothers.Healsowasa wellknownNazisympathizer.HisgrandfatherhadbeenbossofBrownBrothersduringtheCivilwar whenBrownBrothersweredirectlyresponsibleforshippingseventyfivepercentofthecottonfrom thesouthtoEngland. PrescottBushandGeorgeWalkerhostedtheThirdInternationalCongressofEugenics.Thepurposeof theeventwastocallforthesterilizationoffourteenmillionAmericans. BankofInternationalSettlementsformed. On January 4, 1933, Hitler was invited to the Schroeder Bank by a group of industrialists. The industrialistsgaveHitlerthemoneytoovercomehisfinancialproblemsinturnforapledgetobreak thetradeunions.PresentatthismeetingweretwoAmericans:JohnFosterDullesandAllenDulles. Hitlerassumespower. Max Warburg selected by Prescott Bush to be the American Ship & Commerce Line official representative on the board of the Hamburg Amerika Line. Warburg was a long time advisor of HjalmarSchacht,theNazisEconomicMinisterandanexecutiveintheReichsbank.Warburgwasalsoa closefriendwithMontaguColletNorman. An agreement to coordinate all trade between Germany & America was reached in Berlin after negotiations between Hitlers Economics Minister, Hjalmar Schacht & John Foster Dulles. As a result

Oliver Harriman, Averells cousin formed a syndicate of 150 firms to conduct all business between GermanyandtheUnitedStates. NorthGermanLloydCo.mergedwithHamburgAmerikaLineinHamburg.ChristianBeckalongtime Harrimanexecutivewasplacedasmanageroffreight&operationsinNorthAmericaforthisnewly mergedcompany.EmilHelfferich,anardentNaziwasappointedchairmanofthisnewcompanycalled HapagLloyd.Nazisecurityguardswerenowonallshipsofthecompany. William S. Farish was appointed chairman of Standard Oil by John D. Rockefeller. Farish was close friendswithHermannSchmitz,chairmanofI.G.Farben.FarishhiredIvyLee,towriteproI.G.Farben and proNazi propaganda and get it into the US press. He hired Nazi German crews for Standard Oil tankers.Inaddition,hehiredEmilHelfferich,chairmanoftheHamburgAmerikaLine,aschairman alsooftheStandardOilCompanysubsidiaryinGermany.KarlLindemann,boardmemberofHamburg Amerika, also became a top FarishStandard executive in Germany. The interlock placed Farish and Prescott Bush in a small group of Hitler supporters. Both Emil Helfferich and Karl Lindemann were authorizedtowritecheckstoHeinrichHimmler,chiefoftheNaziSS,onaspecialStandardOilaccount. ThisaccountwasmanagedbytheGermanBritishAmericanbanker,KurtvonSchroeder.Accordingto USintelligencedocumentsreviewedbyauthorAntonySutton,Helfferichcontinuedhispaymentstothe SSinto1944,whentheSSwassupervisingthemassmurderattheStandardI.G.FarbenAuschwitzand otherdeathcamps.HelfferichtoldAlliedinterrogatorsafterthewarthatthesewerenothispersonal contributionstheywerecorporateStandardOilfunds. 1934: The US Senate Nye Committee hearings revealed Samuel Pryor, chairman of Remington Arms and founding director of both the UBC and the American Ship & Commerce Corp. had joined in a cartel agreement with I.G. Farben. The committee also uncovered that the Nazis were armed with mostly Americanarms. E.W.Webb,presidentofEthylCorporation,wasadvisedthatWashingtonhadlearnedoftheintention of forming a German company with the I.G. to manufacture ethyl lead in Germany. The War Department indicated that there was considerable criticism of this technological transfer. The Ethyl CompanywasthenadvisedbytheArmyAirCorpsthatundernoconditionsshouldyouortheBoard ofDirectorsoftheEthyl GasolineCorporationdiscloseanysecretsorknowhowinconnectionwith themanufactureoftetraethylleadtoGermany. With Hitler in solid control of Germany, the profits from the ThyssenFlick union soared to over a hundred million. Both Union Bank and the Bank voor Handel en Scheepvaart were overflowing with money. Prescott Bush became managing director of Union Bank and took over the daytoday operationsoftheGermanplan. JohnFosterDulleswaspubliclysupportingtheNaziphilosophy.In1935,hewrotealongarticleforThe Atlantic MonthlyentitledTheRoadtoPeace.HeexcusedGermanyssecretrearmamentasanaction takingbacktheirfreedom.KnowingwhathedidaboutIncoandGermanysmunitionsindustry,Dulles wasmisleadinginassertingGermanys,Italys,andJapansdesiresforpeace.Laterinthe1930s,Dulles helpedorganizetheAmericaFirstgroup.AmonthbeforePearlHarborhedonated$500tothegroup. Laterhewouldclaimnoassociationwiththegroup.DullescontinuedhissupportoftheNazilineright uptothetimeGermanyinvadedPoland.DullesexcuseforthePolandinvasionwasmuchlikeblaming thevictimforthecrime. 1935: Ethyl Corporation signed a joint production agreement with I.G. Farben in Germany to form Ethyl GmbHandwithMontecatiniinfascistItalyfortheproductionoftetraethyllead.ThedirectorsofEthyl GasolineCorporationatthetimeofthistransfer:E.W.Webb,presidentanddirector;C.F.Kettering;R.P. Russell; W.C. Teagle, Standard Oil of New Jersey and trustee of FDRs Georgia Warm Springs Foundation; F.A.Howard;E.M.Clark,StandardOilofNewJersey;A.P.Sloan,Jr.;D.Brown;J.T.Smith; andW.S.ParishofStandardOilofNewJersey. JohnFosterDullesnarrowlymissedbeingindictedinacaseofUnionElectricCompanyofMissouri,a subsidiaryoftheNorthAmericaCompany.TheSEChaddiscoveredthecompanyoperatedaslushfund tobribelegislators.Thefundreceivedkickbacksfromitslocallawyersandaninsurancecompany.The firmhadbribedtheentireMissourilegislator.SECgeneralcounselTravisLanecynicallyattributedthe failuretothegrandjurytoindictDulleswasduetohischarm. NurembergLawspassedinGermanypavingthewayfortheHolocaust. 1936: The Schroeder Bank in New York merges with the Rockefellers to form Schroeder, Rockefeller &

1937:

1939:

1940: 1941: 1942:

1945:

1946:

Company, Inc. Carlton P. Fuller of Schroeder Banking Corporation became president and Avery Rockefeller,becamevicepresident. BytheendofJanuary1937,Dulleshadmergedallhis cloakingactivitiesintooneclientaccount,Brown Brothers HarrimanSchroeder Rock. Schroeder, of course, was the Nazi bank on whose board Dulles sat.TheRockwastheRockefellersofStandardOil,whowerealreadycomingunderscrutinyfortheir Nazi deals. At the request of Prescott Bush, Dulles had cloaked the BushHarriman dealings with the Nazis. HitlerinvadesPoland;thewarstartsinEurope. FarishsdaughterMarthamarriedAverellHarrimansnephew,EdwardHarrimanGerry. ConsolidatedSilesianSteelCorporationwaslocatednearthePolishtownofOswiecim.Whentheplan to use Soviet prisoners as forced labor fell through, the Nazis began shipping Jews, communists, gypsies and other minority populations to the camp the Nazis had set up. This was the beginning of Auschwitz. The reason Auschwitz was located there was because of the abundant supplies of coal which could be processed into aviation fuel. I.G. Farben soon built a plant near Auschwitz to take advantage of not only of the nearby coal deposits but also of the slave labor supply available at Auschwitz.AccordingtoaDutchintelligenceagent,PrescottBushmanagedaportionoftheslavelabor forceinPoland. AllenDullesservedontheboardoftheSchroederbank.JohnsFosterDullesservedasthelegalcounsel forSchroederBank.SchroederBankactedasafinancialarmoftheNazis. PearlHarborbombedandwarisdeclared. Leo Crowley, the US Alien Property Custodian, ordered the seizure of all property of HapagLloyd in August.InOctober,USAlienPropertyCustodianseizedthestocksharesoftheUnionBankingCorp.of New York, whose shareholders were: Chairman/Director E. Rowland Harriman; President/Director Cornelis Lievense (banking functionary for the Nazis); Treasurer/Director Harold D. Pennington (of Brown Brothers Harriman); Director Ray Morris (of Brown Brothers Harriman); Director Prescott S. Bush; Director H.J. Kouwenhoven (Director/Chief foreign financial executive of German Steel Trust); DirectorJohannG.Groeninger(IndustrialExecutiveinNaziGermany). In the same month, the United States government seized two additional companies: Seamless Steel EquipmentCorp.&HollandAmericanTradingCorpbothrunbyUnionBank. InNovember,theNaziassetsofSilesianAmericanCorpwereseizedleavingtheAmericanpartnersto carryonwithbusiness.Seizureofthewholecompanywouldhavebeendetrimentaltothewareffort. On March 25, 1942, US Assistant Attorney General Thurman Arnold announced that William Stamps Farish had pleaded no contest to charges of criminal conspiracy with the Nazis. Farish was the principal manager of a cartel agreement between Standard Oil and I.G. Farben. The cartel built an industrialplanttoproduceartificialrubberandgasolinefromcoalatAuschwitztotakeadvantageof theslavelabor. The DeutscheAmerikanische Petroleum A.G. (DAPAG), the Standard Oil subsidiary in Germany, was 94percentownedbyStandardOilofNewJersey.StandardOilofNewJerseywasrepresentedinthe inner circles of Nazism by Karl Lindemann, director of DAPAG and member of Himmlers Circle of FriendsandbyboardmemberEmilHelfrich,whowasanoriginalmemberoftheKepplerCircle.Karl Lindemann connections extended into the international banking area as director of several banks, including the Dresdner Bank, the Deutsche Reichsbank, and the private Nazioriented bank of C. Melchior&Company. TheTreasuryDepartmentrevealedtocongressthatUnitedSteelproducedthefollowingpercentages ofwarmunitionsfortheNazis:Pigiron50.8%;Pipe&tubes45.5%;Universalplate41.4%;Galvanized sheet38.5%;Heavyplate36%;Explosives35%;Wire22.1%.ThisisthesamefirmPrescottBushacted, asbankerfor.Ineffect,PrescottwasHitlersAmericanbanker. Allen Dulles sought out a young Naval Officer that had been put in charge of some captured Nazi documents.IfthedocumentssurfaceditwouldhaverevealedDullesasatraitor.Inadealtoburythe documents,Dullesagreedtofinancetheyoungmansfirstpoliticalrace.Thiswasthebeginningofthe politicalcareerofRichardNixon. ProjectPaperclipbeginstoimportNazisintotheUnitedStates. NixondefeatedJerryVoohrisforcongresswiththehelpofaninfluxofmoneyfromNewYorkcentered banks.

1947: Following the war, authorities seeking to locate the Dutch Royal familys jewelry discovered the transaction papers of the Silesian American Corporation in the books of Bank voor Handel en Scheepvaart.Thebankmanager,H.J.Kounhovencameunderintensescrutinyandwasshockedbythe discovery. Soon Kounhoven traveled to New York to inform Prescott Bush. Two weeks later, the otherwisehealthyDutchbankerdiedofaheartattack. 1950: Prescott Bush defeated in his political race due to his background association with the American eugenicsmovement. 1951: UnionBankliquidated.TheBushfamilyreceived$1.5millionfromitsinterestinUnionBank. 1952: PrescottBushelectedtoSenate. PrescottBushinstrumentalintheselectionofNixonasvicepresidentialcandidate. 1953: JohnFosterDullesappointedSecretaryofState. AllenDullesappointedDirectoroftheCIA. WithmoneyfromBrownBrothersandHarriman,GeorgeBushformsZapata,afrontfortheCIA. 1954: CIA,underthedirectionofAllenDulles,helpsspawnacoupagainstJacoboArbenzinGuatemalatoaid UnitedFruit.SchroederBankwaspartneredwithUnitedFruitinthebananabusiness.AllenDulleswas asittingboardmemberofSchroederBank.BothJohnFosterDullesandAllenDulleshadinvestments infirmswithheavyinvestmentsinUnitedFruit.Inaddition,theAmericanambassadorattheUNwasa stockholder of United Fruit and President Eisenhowers personal secretary was the wife of United Fruitspublicrelationsdirector.TheDullesbrothersconvincedEisenhowerthatArbenzwasathreatto American national security and got his approval to develop a plan to get rid of the Guatemalan President. 1961: C.DillonappointedSecretaryofTreasury. TheBayofPigsfiasco.TwooftheshipswerenamedHoustonandBarbara.TheCIAcodenameforthe BayofPigswasOperationZapata,tyingGeorgeBushtotheoperation.Additionallyin1981,theyear afterGeorgeBushwaselectedVicePresident,alloftheSECrecordsofZapatabetween1960and1966 disappeared. JohnKennedyfiresAllenDullesaftertheBayofPigs. 1963: JohnKennedyassassinated. 1964: GeorgeBushcampaignsagainsttheCivilRightsActinhisbidforelection.Helosttheelection. 1966: GeorgeBushelectedtocongress. 1968: NixonelectedPresident. 1969: ZapataattemptsbuyoutofUnitedFruit,anothercompanywithstrongtiestotheCIAandinvolvedin theoverthrowofreformedmindedCentralAmericancountries. 1971: GeorgeBushappointedasambassadortotheUnitedNations. 1972: WatergatescandaleruptsduringNixonsreelectioncampaign. GeorgeBushappointedchairmanoftheRepublicanParty.Bushproceedstosetuptheethnicheritage groups in the party. In short, these groups are nothing more than a haven for Nazi migrs from EasternEurope.MembersoftheRepublicanHeritageGroupsCouncilincludedLazloPaszor,Hungary Arrow Cross member, Radi Slavoff, Bulgarian fascist, Nicolas Nazarenko former SS officer in the CossackDivision,FlorianGaddu,RomanianIronGuardmember,MethodBalcoSlovakianfascist.Both AllenDullesandNixonbelievedthesemigrswereusefulingettingoutthevote. 1975: ColbyrevealsinformationaboutsecretdomesticoperationsbytheCIA:Mockingbird,MKUltra.Dick CheneyseeksColbysremoval. 1976: GeorgeBushappointedCIAdirectorbyPresidentGeraldFord,aformermemberoftheproNazigroup, AmericaFirst. George Bush allowed the execution of Chilean dissident Orlando Letelier by the fascist regime of Pinochet. Bush was fully informed of the operation of the Chilean Operation Condor program to executedissidents.OperationCondorwasanextensiveoperationbyseveralSouthAmericancountries ledbyChiletoconductassassinationsworldwideofdissidentstothefascistmilitaryregimesinSouth America. 1984: ArbustoEnergy,Inc.,foundedbyGeorgeW.Bush,issoldafterprovingtobeafailure. 1988: Silverado Banking Savings & Loan shut down by regulators.Neil Bush, son of the Vice President and candidateforPresident,wasadirector.Theseizureandinvestigationhadbeendelayeduntilafterthe election.

 1989: 1990: 1992: 1996: 2000: 2001:

FredMalek,awellknownNazicollaborator,waspartofBushscampaignforPresident.Malekwould againserveBushinhis1992raceforreelection.SeveralBushcampaignstaffersforcedtoresignafterit wasdisclosedtheywereexNaziwarcriminalsincludingLaszloPastorandYaroslavStetsko. William Draper served as head of Bushs campaign funding. Drapers grandfather had founded the PioneerFundtopromoteeugenics. George Bush takes oath of office as President. Places his assets in blind trust managed by William Farish,grandsonoftheWilliamFarishthatsuppliedHitlerwithgas. FollowingtheGulfWar,BahrainawardedanoffshoredrillingcontracttoHarkenOil;afirmaffiliated withGeorgeW.BushthesonofthePresident.GeorgeW.sellshisstakeinHarkenandoneweeklater thesharepricecollapses. GeorgeBushpardonsalloftheprincipalplayersintheIranContrascandal. GeorgeBush,thepoppy,praisesSunMyungMooninBuenosAires.TheMoonorganizationisfullofex NazisandcloselyaffiliatedwiththeWorldAntiCommunistLeaguewhichisalsofullofexNazis. GeorgeW.BushappointedPresidentby54voteoftheSupremeCourt. PatrioticActpassesrestrictingourConstitutionalfreedomsattheurgingofGeorgeW.Bush.

CHAPTER 7: NAZI GOLD

AZIGOLD,thewordscracklewithanelectrifyingterrorlikeaboltoflighteningslicingthroughthesky. NotwowordsaremoreliabletotriggerimagesofNaziintrigueandbrutality.Unfortunately,thereare probablyasmanyfalsetalesofNazilootastherearetrue.NosingleaspectofWWIIhascausedmore controversy,moremythsandmorebewilderment.Evenafteroverfiftyyearssincetheendofthewar,aseaof controversy still remains. Equally important, but seldom mentioned, is the hoard of loot collected for the EmperorofJapan.Bothhoardscontainedtremendousquantitiesofgold,silver,platinum,jewels,artandother valuableslootedfromagoodthirdoftheworld. Theotherfactoraddingtothecontroversyistheextremecomplexityofthesubject.Anallencompassing viewoftheNazigoldisnearlyimpossible,asitinvolvestheVatican,theSwissbanks,SouthAmericanbanks, theBankofEngland,theFederalReserve,theNaziplansforarebirthandindividualhoardsoftopNaziofficials skimmed from the top, along with skimming from the victorious Allies. How much of the treasure has been recoveredanddisbursedislargelyagameofguessing,asestimatesvarywidelyandarebitterlydisputed.The onlycertaintysurroundingthehoardisthatmuchofitasyetremainsunaccountedfor.Moreover,muchofthe wealth was most likely spent in rebuilding Germany after the war. The socalled European miracle in rebuildingEuropefollowingthewarappearstohavebeenfundedatleastpartiallybythewealthseizedfrom thevictimsoftheNazis. TheNazishadpreciseplansforacomeback,asalreadydetailedinearlierchapters.Theseplansrestedon theirabilitytoconcealtheirillgottenlootfromtheAllies.Someofthehoardhadbeensquirreledawaysafely in secret Swiss bank accounts. Other portions were shipped to South America, primarily to Argentina, for safekeeping.OneoftheconduitstoArgentinawasunderthecontrolanddirectionofMartinBormann. Probably no other Nazi has more words written about him than Martin Bormann. His fate has only recently been determined, however, the valuables that he shipped to ArgentinainhisprojectActionFeuerlandarestillcloudedinafogofmysteryandintrigue. ThereareseveralaccountsastothefateofBormann,someplausible,othersborderingon the preposterous. The more common and plausible account had Bormann reaching South Americaandlivingouthislifethere.AnequallyplausibleaccounthasBormanndyinginthe last days of the Third Reich, trying to escape from Berlin. A third account had Bormann escaping to the Soviet Union and living out his life there. This account was started by GeneralGehlen,whoclaimedtohaverecognizedBormanninacrowdatasoccergameas Martin Bormann thetelevisioncamerapannedthespectators. Latelytwopreposterousaccountshavecomeforward,onenamingBormannasaSovietmoleinsideHitlers innercircle.TheotherclaimsthataBritishcommandounitrescuedBormannfromBerlininordertorecover the Nazi treasure. He then lived out his life in the English countryside. Obviously, it would have been advantageousforBormanntobedeclaredkilledinBerlinifhehadsurvived.Nevertheless,recentDNAtaken from one of the skulls found in Berlin matched closely to an uncle of Bormann. The skull still retained glass shardsbetweentheteeth,thusifthisevidenceisindeedcorrectthenBormannunabletoescapefromBerlin committed suicide. Before DNA testing was available considerable controversy over the identity of the skull existed.Nevertheless,thegovernmentturnedtheremainsovertothefamilywhichhadtheremainscremated and the ashes scattered at sea,settling the controversy for all time. Unless DNA evidence can be obtained in SouthAmericathatcallsintoquestionthetestingdoneinGermany,itshouldbeassumedthatBormannindeed diedinthefinaldaysbeforeBerlinfell. However, the ultimate fate of Bormann is of only secondary importance to this chapter. What is of more concern is the fate of the assets he spirited out of Germany to Argentina. Two of the best books covering BormannandSouthAmericaareAftermath,byGladiolasFargoandMartinBormann:NaziinExile,byPaul Manning.Bothhavebeendiscreditedtosomedegree.ManningadmitstohavingbeendeceivedbyAllenDulles inregardtoSouthAmerica.ManningwasareporterduringWWIIandhaswrittentwobooksonWWIIthatare regardedasclassics.ThequestionthenremainswhyDulleswoulddeliberatelydeceivetheauthor.Asweshall seelaterinthischapterandinthefollowingchapter,AllenDulleshadalottohide. WhiletheNazishadconcreteplanstoshipmuchoftheirgoldandvaluablestoothercountries,theUnited States had plans to recover these valuables. A good deal of the American effort to recover the Nazi gold fell

Part 1: The Merkers Treasure

underOperationSafehaven.However,theenormoussizeandthecomplexityofthetaskwerenotrealizeduntil early April 1945. Late in the evening of March 22, 1945, elements of Lt. Gen. George Pattons Third Army crossedtheRhine.WhatatfirstwasatrickleoftroopscrossingtheRhinesoonturnedintoaragingfloodof troops.BynoononApril4,theThirdArmyhadcapturedthevillageofMerkers.Duringthe4thand5thofApril, a detachment of CIC (counter intelligence unit) questioned displaced persons in the vicinity. The CIC was informed by these displaced persons that unusual activity had been observed around the Winters Hal AGs Kaiseroda potassium mine at Merkers. Further, these rumors suggested that the Reichsbank had hidden its goldreservesthere.TheinformationwaspasseduptoG2andanorderwasissuedtoexcludeciviliansfromthe area. Thefollowingmorningataroadblock,twofemaledisplacedpersonsapproachedandwerequestioned.One waspregnantandonthewaytoKeiselbachtoseeamidwife.TheyweredrivenbacktoMerkers.Onentering Merkersthejeepdriver askedthewomenwhat sortofmineKaiseroda was.Theytoldhimitwaswherethe Nazis had hidden their gold and other valuables. By noon on April 6, this information had reached Lt. Col. WilliamA.Russell.HeproceededtoMerkersandquestionedanumberofdisplacedcivilianswhoconfirmedthe story. Additionally Russell was informed that Dr. Paul Ortwin Rave, curator of the German State Museum in Berlin as well an assistant director of the National Galleries in Berlin, was present to care for the paintings. Russell then confronted the mine officials with the information. He also questioned Werner Veick, the head cashieroftheReichsbanksForeignNotesDepartment,whowasalsoatthemine.Raveadmittedtohisroleof caringforthepaintings.VeickinformedRussellthattheentiregoldreserveoftheReichsbankwashiddenin themine. Themilitarywireswerenowblazingwithrequestsforreinforcementstoguardthemine.AtfirstRussell requestedthatthe712thTankBattalionbeorderedtoproceedtoMerkerstoguardtheentrancestothemine. AdditionalforceswereprovidedfromtheNinetiethDivisionMilitaryPolice.Byeveningfiveadditionalpossible entrancestotheminewerediscoveredandonetankbattalionwouldnotbesufficienttoguardallentrances. Maj. Gen. Herbert L. Earnest then ordered the First Battalion of the 357th Infantry Regiment to proceed to Merkersandreinforcethe712th.RussellalsoinformedaXIIcorpsG5officerofwhatwasgoingonatthemine. On the morning of April 7th additional entrances to the mine had been located and guards placed at the additionalentrances.At10AM,RussellandtwootherofficersalongwithRaveandmineofficialsenteredthe mainentrance.Themainshafttookthem2200feetbelowthesurface.Inthemaintunneltheyfound550sacks ofReichsmarks.Further downthetunneltheyfoundthemainvault.The vaultwasbehindathreefootthick brickwallandenclosedanareaatleast100feetwide,inthecenterwasaheavybankvaultdoor.Pattonwas informedthattheminehadbeenenteredandalargequantityofReichsmarksfound,butnogold.AsPattons forcescontinuedtheirlighteningadvanceintoGermany,Pattonorderedthe357thInfantryRegimentwiththe exceptionoftheFirstBattaliontomoveoutandjointheNinetiethInfantryDivision.Pattonalsoorderedthat thedoortothevaultbeblownopen. Early on April 8th, Russell, a public affairs officer, photographers, reporters, and elements of the 282nd Engineer Combat Battalion reentered the mine. The door was easily blown open. They entered what was termedroom8.Thesizeofthehoardwassimplystunning.Stretchedbeforethemwasaroomabout75feet wideand150feetlong.Itwaslighted,butnotventilated.Lyingbeforethemwereoverseventhousandbags, stretchingallthewaytothebackoftheroom.Thebagswerelaidoutintwentyneatrowsaboutkneehighand separatedbyabouttwoandahalffeet.Allthebagsweremarked.Alongonesideoftheroomtheyfoundbailed currency stacked. At the back of the room were 18 bags and 189 suitcases, trunks and boxes each carefully marked.EachlabelwasmarkedwiththenameMelmer.ItwasobviousthatthesecontainersbelongedtotheSS. ItwasalsothefirstclueastothecomplexityandscopeoftheNazilootingofEurope. Someofthesealsonthebagwerebrokensothestashcouldbeinventoried.Theinventoryrevealedthere were8,198barsofgoldbullion;55boxesofcratedgoldbullion;hundredsofbagsofgolditems;over1300bags of gold Reichsmarks, British gold pounds, and French gold francs; 711 bags of American twentydollar gold pieces; hundreds of bags of gold and silver coins; hundreds of bags of foreign currency; 9 bags of valuable coins;2380bagsand1300boxesofReichsmarks(2.76billionReichsmarks);20silverbars;40bagscontaining silverbars;63boxesand55bagsofsilverplate;1bagcontainingsixplatinumbars;and110bagsfromvarious countries.[1]Inothertunnelsalargequantityofartworkwasfound.Thehoardalsorevealedthebrutalityof theNaziregime;includedintheinventorywerebagsofgoldfillingsinteethextractedfromthevictimsofthe concentrationcamps.

Onceawareofthetremendoussizeofthehoard,Pattondeemedthemattertobepoliticalandimmediately requestedthatitbeturnedovertoSHAEFandtosendsomeonetotakeitover.EisenhowerappointedColonel Bernard D. Bernstein, deputy chief, Financial Branch, G5 Division of SHAEF. On April 15, the treasure was movedina convoywithconstant overhead fighterprotectiontotheReichsbankinFrankfurt.In midAugust, thegoldhadbeenweightedandappraised.Thegoldwasvaluedat262,213,000dollars.Thesilverwasvalued at270,469dollars.Additionallyatonofplatinumandeightbagsofrarecoinshadnotbeenappraised.Earlyin 1946,thegoldwasturnedovertoInterAlliedReparationAgencyandeventuallyturnedovertotheTripartite CommissionfortheRestitutionofMonetaryGold.TheTripartiteCommissionreturnedthegoldtothecentral banksofthecountriesitwaslootedfromassoonaspossible.However,duetothecoldwar,someofthegold wasnotdistributeduntil1996. Thedistributionofthe Merkers gold,however, isnotwithoutcontroversy.Noaccountwastakenofhow muchofthegoldrecoveredwasfromthesmeltingofdentalgold.Interestingenough,thearmymicrofilmedthe records of the Reichsbanks Precious Metals Department in 1948. These records were turned over to Albert Thoms,whowasworkingforthesuccessorbanktotheReichsbank.Theserecordshavesincedisappearedin Germany.Itwasntuntilthe1990sthattheserecordswerelocatedagain. NoothercacheofgoldandvaluableswasfoundinEuropetorivalthesizeoftheMerkersfind.Although oneofthecachesoftheGoldenLily,theJapaneseEmperorslootedtreasurereportedlyunearthedbyMarcosin thePhilippineswaslarger.TheonlyotherpossiblecachefromEuropethatcouldrivaltheMerkersfindwould betheUstashis.However,thegoldandvaluableslootedbytheUstashishasneverbeenlocatedandthebest evidence indicates that it was smuggled out of Europe through the VaticanCIA ratline. How much of the UstashiscachemadeitintotheVaticanvaultsisstillshroudedinsecrecyandmystery.Severalothersmaller cacheswerelocated,particularlyinthealpineregionofAustriawheretheNazistriedtostageafinallaststand. There is no controversy about what the Merkers treasure contained. That is known with certainty. The controversy stems from where the gold came from and how it was distributed. Moreover, additional controversyaboundsastowhatextenttheMerkershoardwasofthetotalNazitreasure. In order to reach an estimate as to the extent of the Nazi looting, the gold reserves of the Nazis trading partnerscanbeusedtosetanupperbound.Onlyahandfulofcountrieshidingundertheumbrellaofneutrality continued to trade with the Nazis during the war. The table below reflects the amount of change in gold reservesofNaziGermanysprimarytradingpartners.[2]Thefiguresareinmillionsofdollars. 1939Reserves 1943Reserves Increase Country Spain 42.0 104.0 62.0 Sweden 160.0 456.0 294.0 Turkey 88.0 221.0 234.0 Portugal 79.5 447.1 (1945) 367.6 Switzerland 503.0 1,040.0 537.0 Obviously not all of the increase can be attributed to the Nazis, however, the figures do set an upper limit. Further,sincetheonlycurrenciesnotacceptedgloballyweretheGermanMark,ItalianLiraandJapaneseYen, theneutralcountriescontinuedtoaccepttheUSdollarandBritishpound.Additionalevidencecomesfromthe declareddepositsofSwissbankswhichhadsoaredfromSwissFranc(SF)332millionin1941toSF846million in1945.AgainalloftheincreaseindepositscannotbeattributedtotheNazis,butitdoessetanupperlimitofa halfabilliondollars. The figures above compare favorably with the latest estimates available. The latest evidence stemming fromPresidentClintonsinitiativereportsthattheSwissreceived$440millioningoldfromtheNazisofwhich $316millionwaslooted.[4]AdditionallythereportfromClintonsinitiativeshowsthatonemilliondollarsof goldwastransferredtotheDresdnerBankandtheDeutschBank;bothbankswereprivatecommercialbanks. ThesebanksthensoldthegoldinTurkeyforforeigncurrency.Thereportcontinuesthatover$300millionin NazigoldreachedPortugal,Sweden,SpainandTurkey. ThereadershouldbeawarethattheForeignOfficewasconductingavigorouscampaignwarningneutral countriesaboutacceptinggoldfromtheNazis.TheUnitedStatesDepartmentrefusedtosupportthemeasure untilJuly1943whenthealarmingincreaseofgoldreservesoftheneutralcountrieswasseen.Eventhenthe supportfromtheStateDepartmentwasatbestcool. The reader should also note that the countries listed above are not mere accidents. Without the raw materialssuppliedbySweden,Spain,PortugalandTurkeytheNaziswouldnothavebeenabletoconductwar. Swedensuppliedvitallyneededhighgradeironore.TurkeysuppliedHitlerwithchromate.PortugalandSpain

suppliedwolfram.Allthreemetalswereneededtoproducewarmunitionsandheavyarmor.Chromateswere usedtohardensteelforarmorwhilewolframortungstenwasusedprimaryinmachinetools.Nazisourcesfor both metals were extremely limited and they were forced to rely almost one hundred percent on these countries. Considering South America was a prime refuge for the Nazis after the war, it is instructive to look at changes of the gold reserves of South American countries, particularly Argentina. Argentinas gold reserves increased from 313.83 metric tons in 1940 to 1,064 tons in 1945.[3] The increase in the gold reserves of Argentinaintermsofdollarswasawhopping$635,000,000.Brazillikewisesawanincreaseingoldreserves from45metrictonsin1940to314tonsin1945oranincreaseofabout$228,000,000. The abovereserve figuresshedsomelightonthedestinationofsomeoftheNaziloot.Howmuchofthis unaccountedforgoldwastransportedoutofGermanyneartheendofthewarto financetheNazisplanned comebackisstillanopenquestion.However,goldwasonlyonesmallpartoftheNaziscomebackplan.Even more valuable to the Nazis plan were the amounts of bearer stocks, bonds and the number of Nazi front corporationsthatwereestablishedworldwide.Thesecorporationsheldvaluablepatentsandwouldgeneratea steadyincomestreamtofinancetheNaziunderground.

Part 2: Safehaven Operations

Before looking at the recovery of other hoards and the Nazis that made it to South America, a look at the various methods and programs the Allies took to recover Nazi gold is in order. Poland took the first action takentopreventtheNazisfromlooting.PolishauthoritieshadmovedtheirgoldreservestoRomaniapriorto the Nazi invasion of Poland. Unfortunately for the Polish government, the Nazis soon overran Romania and seizedthePolishgoldreserves.SeveralotherEuropeancountrieslikewisefollowedthestepsofPoland.French officialsattheNationalBankshippedtheirtreasuretotheUnitedStates.Attheendof1939,Belgianauthorities entrustedtheFrenchwith$223millionforsafekeeping.SoonaftertheGermaninvasionoftheLowCountries, BelgiumurgedFrancetoshiptheirgoldtoLondonaboardmilitarycruisers.However,theFrenchtransferred thegoldtoDakarinitsWestAfricacolonyofSenegal. AfterthefallofFranceandnegotiationswithVichyFrance,theNazisreceivedtheBelgiangold.Withinthe firsthouroftheNaziinvasionofHolland,DutchauthoritieshadshippedtheirgoldreservesinAmsterdamto England.ThesecondboatcontainingtheDutchgoldreservesstoredinRotterdam,carrying11,012kilograms ofgold,struckaminenearthecoastlineandwasmarooned.By1942,theNazishadrecoveredmostofthegold aboard.OtherEuropeancountriesfailedtotakeanyprecautionsandtheirgoldreserveswereseizedassoonas theNazisoverranthecountry.ThusthebulkofthegoldreservesinthecentralbanksofEuropefelltotheNazis withtheexceptionofFrancesandaportionofHollands. ThefirstactiontakenbytheUnitedStateswasExecutiveorder8389signedbyRooseveltonApril10,1940, freezingtheNorwegianandDanishassetsintheUS.EventuallyeverycountryofEuropewasincluded,withthe exceptionofEngland.AlsoincludedinthesefreezingofassetswereChinaandJapan.Byfreezingtheassetsofa countryoncetheNazisoverranit,theNaziswerepreventedfromusingtheassetswithintheUnitedStatesto furthertheirgain. InJuly1942,theUnitedStatesissuedtheblacklistofindividualsandcompanies.ThislistofProclaimedList ofBlockedNationalsprohibitedtradeintheAmericaswithanynameappearingonthelist.Namesappearing onthelistweredeemedhostiletothedefenseoftheAmericas.Throughoutthewar,nameswerecontinually addedtothelistwiththelistreachingseveralthousandsnamesbythewarsend. OnJanuary5,1943,InterAlliedDeclarationAgainstActsofDispossessionCommittedinTerritoriesUnder EnemyOccupationorControl,betterknownastheLondonDeclarationwasannounced.Themeasuredeclared that the Allies would no longer recognize the transfer of property in occupied countries, even if it appeared legal.TheAllieswereawarethattheNaziswereforcingpeopleinoccupiedcountriestosellortransfertheir property to them under force. Up until this date the Nazis had painstakingly created the illusion that such transferswerelegal. OnFebruary22,1944,theDeclarationonGoldPurchaseswasannounced.TheUnitedStatesdeclaredthat itwouldnolongerrecognizethetransferoflootedgoldfromtheAxis.TheUnitedStatesfurtherdeclaredthatit wouldnotbuygoldfromanycountrythathadnotbrokenrelationswiththeAxis.EnglandandtheSovietUnion madesimilardeclarations. In July and August of 1944, the Bretton Woods agreement was reached. The agreement called on the neutralcountriestopreventdispositionortransferofassetsintheoccupiedcountries.OnAugust14,1944the

US,UK,SwissWarTradeAgreementwasreached.TheagreementrequiredtheSwisstoreducetradewiththe Nazis. OnDecember6,1944,OperationSafehavenwasorganized. OnDecember10,1944,aStateDepartmentpaperwasreleasedurgingasoftlinetowardsSwitzerland.The reader should note this date. It marks the first step in sabotaging the efforts of returning the assets to the victimsoftheHolocaust.InessenceitwasacontinuanceofthefeudbetweentheTreasuryDepartmentandthe StateDepartmentonthetermsofpeaceandthe4Dsprogramofthepreviouschapter. In February 1945, the Yalta Conference agreed that reparations would be exacted from Germany. The conferencealsolaidthegroundworkinestablishingtheAlliedReparationsCommission. OperationSafehavenbyfaristhebestknownandthelargestoperationthattheAllieslaunchedtorecover assets looted by the Nazis. The need for a Safehaven organization was first proposed in a letter by Leo T. Crowley, Director of the Foreign Economic Administration (FEA), to the Secretary of the Treasury on May 5, 1944.Moreover,asecondletterfromWilliamT.Stone,DirectorofFEAsSpecialAreasBranch,toLivingstonT. Merchant in the State Department on May 15, 1944, called for the inclusion of the British as well as various otherUSagencies.SinceSafehaveninvolvedelementsfromboththeStateDepartmentandtheTreasury,itwas plaguedfromtheverybeginningbytheintenserivalrybetweenthetwodepartments.Safehavenwouldsuffer the same fate as the 4Ds program that led to the hindrance the prosecution of war criminals and the denazificationofGermany. InMay1944,SamuelKlaus,SpecialAssistanttotheGeneralCounseloftheTreasuryDepartmentproposed aplanforafactfindingmissiontoneutralcountriesdealingwiththeproblemofhiddenNaziassets.Theinitial planning for the trip included just Klaus and Herbert J. Cummings, a State department official. Once the Treasury Department was aware of the trip, the Treasury department sent a number of officials to catch up withtheKlausdelegation.FromAugusttoOctoberKlausvisitedLondon,Stockholm,Lisbon,Madrid,Barcelona, and Bilbao to encourage the implementation of the Safehaven program. The mission canceled plans to visit Switzerland and Portugal. The mission was only marginally successful. In his final report, Klaus outlined his currentthinkingofbroadareasofconcernastheexcerptbelowshows: It[Safehaven]isonlyinitsnarrowest,andrelativelylessimportant,aspectsflightofenemycapital.In itsmostimportantaspects,itistheuseofneutralcountriesasbasesformaintainingtheassets,skills andresearchnecessaryfortheconversionofGermanytoawarbasisatanappropriatefuturedate.The hidingoutofstolenjewelsorpictures,evenifitexists,istrulyimportantfromthepointofviewofwar crimes retribution. But the presence of I.G. Farben personnel in Spain, the expansion of Siemens production in Sweden or the presence of German military technicians in Argentina are of more far reachingsignificance,andconstituteaswellthemostdifficultSafehavenactivities.[5] KlaushadfoundthesituationinSpainthemosttroubling.TheretheUSAmbassador,CarltonHayes,was entirely unsympathetic with the Safehaven programs investigations, although Spain was the country most damaging to Safehavens objectives. In fact, the OSS had to operate in Spain out of Portugal due to the ambassador, who would identify to the Spanish police the undercover agents as intelligence agents. Hayes insisted on censoring all incoming and outgoing messages from the OSS. The transmission of Safehaven materialwasblockedforaperiodbyHayes.[6]HayeswasdefinitelyfriendlytoafaultwiththeFrancoregime, however,heiscreditedatkeepingSpainfromjoiningtheAxis.Suchanallianceprobablywasneverpartofthe Nazis plans. Just as Hitler recognized that he needed a neutral Switzerland to obtain foreign currency and launder gold through, the Nazis most likely recognized the need for a neutral port on the Atlantic to receive suppliesthrough.AgoodexampleofthedependenceoftheNazisonaneutralAtlanticport,wasthatforawhile theNazisimportedgasolinethroughSpain. Hayes was aware of the importation of oil into Spain. On February 26, 1943, he commented that the oil products available in Spain were considerably higher than on the East Coast of the United States. Hayes revealed that the gasoline and petroleum products available equaled the full capacity of Spains tanker fleet.[43]ThisgasolinewassuppliedbynoneotherthanStandardOilfromitsoilfieldsinSouthAmerica.Italso presented the Roosevelt administration with a Pandoras Box of dilemmas. Forcing Standard to stop the shipmentsmostlikelywouldhaveresultedinStandardinterruptingthesupplyofoiltotheUnitedStates.At onepointinthewarStandardhadthreatenedtointerruptthesupply.Secondly,themostlikelyresponseofUS citizens suffering through the limited supply of gasoline available through ration cards would have been to rebelagainsttherationingsystemonlearningthatanAmericancompanywassupplyingtheNaziswithoil.A

similar commotion could be expected of the troops, many of which were drafted into service. With the Presidentshandseffectivelytied,theoilshipmentstoSpaincontinued.Ifyouarerichenough,eventreasonis notconsideredacrime. As originally proposed, Safehaven was to be entirely operated by FEA with guidance from the Treasury Department on financial and informational side and guidance from the department of State on the policy setting side. However, with the intense rivalry between the State Department and the Treasury Department, along with differences with Britain, the role of the FEA was weakened. Resolution VI of the Breton Woods conference put Safehaven on firm legal footing. The resolution stemmed from Polish and French proposals concerning the blocking of funds in neutral countries to prevent the Nazis from using looted assets. On December2,Treasury,State,andFEAagreedtotherolesoftheparticipatingagencies.Eachagencywasgiven somemeasureofindividualoperationalfreedom.AllthedataandintelligencewastobecentralizedinLondon. Inthefallof1944,thelongstandingdebateovertreatmentofneutralsarosebetweentheFEAandState Department. The FEA wanted to keep the controls in place while State wanted to lift the economic blockade after the end of hostilities. By this time, the State Department had the stronger voice in the operation of Safehaven.InOctober1944,Morgenthau,TreasurySecretary,JosephOConnell,GeneralCounselforTreasury and Harry Dexter White, Director of Monetary Research for the Treasury Department, agreed that Treasury trainedagentsshouldbedispatchedtosupplementthestaffofEmbassiesinneutralcountries. OnDecember6,1944,theStatedepartmentreleaseditslongawaitedCircularInstructiontoUSMissions concerningSafehavenmatters.ThereleaseoftheCircularmarkedthebeginningofthepoliticalanddiplomatic phasesofSafehavenundertheDepartmentofState. The collection of data and the evaluation of the data were largely confined to the OSS. Within the OSS, SafehavenwasconfinedtotheSI,SecretIntelligence,andX2counterintelligencedivisions.X2oftenplayedthe dominantrolewithintheOSS,especiallywiththemoreimportantneutralsofSwitzerland,PortugalandSpain. X2wasparticularlyinvolvedintheGermanefforttotransferlootedassetstoforeigncountries.FortheOSSthis meant little more than a redirection of its intelligence operations directed at obtaining economic data. CooperationbetweentheOSSandSafehavenwasonaninformalbasisuntilNovember30,1944.Attheendof November,instructionsweresentouttoallOSSstationsdetailingtheintelligencerequirementexpectedtobe generated by the Safehaven program. In actuality, Safehaven was piggybacking on already active OSS operations. Under such conditions it is hardly surprising the Safehaven was dependent upon the personalities of the variousOSSstationchiefs.Asalreadymentioned,theOSSoperationinSpainwascompromisedbecauseofthe ambassador.InSwitzerland,AllenDulleswasthestationchief.Dulleshadalreadybeenexposedbyanearlier operationinajointprogramwiththeBritishofspyingonAmericansandwassuspectedofbeingsympathetic with the Nazi cause. Dulles had deliberately been sent to Switzerland where he would have the most temptationtohelphisclients.BythetimeDulleshadreachedBerne,hewasawarethathewasbeingwatched. ThusDulleswasunabletouseofficialchannelstohelphisclientsintheUnitedStatesinsteadusinghisVatican connections to help the Nazis and Vatican couriers to help his clients in America, as the Vatican couriers possessed diplomatic immunity. The Vatican readily agreed to help Dulles in their zeal to regain their own assetsinGermanyandfurthertheirfanaticalanticommunistphilosophy. Declassified files show that the Slovenian bishop, Gregory Rozman, was trying to arrange the transfer of hugequantitiesofNazicontrolledgoldandWesterncurrencythathadbeendiscreetlysecretedinSwissbanks during the war. The bishop had been sent to Berne with the aid of Dulles friends within the intelligence service. For a few months, the Allies were successful in preventing Rozman from receiving the funds. Then suddenlyRozmanhadthefundsforhisNazifriendsresidinginArgentina.Dulleshadfixedit.Thisactionmay be only the tip of the iceberg. In 1945, the US Treasury Department accused Dulles of laundering the funds fromthe Nazi Bank of Hungary to Switzerland. Similar charges were made against Dulles agent Hans Bernd Gisevius,whohadworkedasanOSSagentwhileservingattheReichsbank.TheStateDepartmentquicklytook overthecasefromtheTreasury,afterwhichtheinvestigationwassilencedandquicklydropped.[7]Gisevius mayhavealsobeeninvolvedintheratlines. Infact,DullescareerinBerneduringWWIIismarkedbyanumberofmoneylaunderingcases.Afterthe Nazis tipped Dulles off that the Swiss codes had been broken, Dulles shifted his operation to the banks of Belgium,LuxembourgandLiechtensteinusingaroundaboutroutethroughJapanutilizingVaticancouriers.[8] Aftertheendofthewar,allthebanksinthesecountriesrefusedtoallowAlliedinvestigatorstolookattheir books. One of Dulles dirtiest tricks may have been an effort to buy more time to move Nazi gold through

Switzerland. A former East Bloc intelligence officer has confirmed that Dulles warned the Nazis that the Japanesecodehadbeenbrokenatacrucialtime.ShortlyafterwarningtheNazis,theSSsuddenlytoldtheHigh Command to use tighter code security and to stop using the radio. They suddenly stopped using Ultra and switched to couriers. For once, the Allies had no information on the German battle plan. This most likely explainshowtheGermanswereabletolaunchtheBattleoftheBulgeasacompletesurprise.[13] Dulles and his cronies certainly exerted a huge amount of influence to ensure US investments in Nazi Germany were not seized for reparations. In Switzerland the SS had purchased a large amount of stock in American corporations and laundered their money through Chase and the Corn Exchange banks. Even more brazen was the case of Pan Am clippers hired by W.R. Grace Corporation to transport Nazi gems, currency, stock and bonds to South America. The operations were the product of Dulles money laundering for the Nazis.[11]SeveralAmericanofficersreadilyadmitthatmuchoftheNazigoldwasneverturnedovertothem. Oneofficeradmitstobeinginahugevaultfilledwithgold,gemsandcurrencythatneverappearedinanyUS files.[9] DulleshadbeenabackerofGermanyforalongtimeandheenvisionedGermanyasabulkheadagainstthe Soviets.TheyoungLt.WilliamCaseywasanotherOSSagentthatsharedDullesviewsofaGermanbulkhead. CaseyservedintheSIdivisioninFranceandtheLowlandsaftertheywererecaptured.InareportfromParis, Casey wrote that the Safehaven was a valuable field of endeavor, especially because of the potential for leveragewithGermanfinancialcircles,etc.,inthefuture.[12]Thereadershouldnote,followingthewar,Casey enteredacareeronWallStreetbeforebecomingadirectoroftheCIAunderReagan. In 1946, Dulless men simply changed their OSS uniform and became War Department Strategic Service Unit. Sometimes they were War Department Detachment and others the Document Disposal Unit. In effect, thereweretwofactionsleftoveroftheOSS,onealiberalfactionthattookordersfromthePresidentandthe other under the control of Dulles. The later faction was hoping for a conservative victory by Dewey so they couldunleashtheirmigrarmyagainsttheSoviets.DulleshadasecretallyintheRegionIVaroundMunich, theCIC;CounterIntelligenceCorpwashelpingtorecruitexNazis.[14] GivenDullescloseassociationwithGermanindustrialists,hewasunwillingtogiveattentiontoSafehaven that Washington expected. In November 1944, with the Allies now in control of France, a land route to Switzerland had been reestablished which made it possible to send an X2 agent to Berne to help run the Safehavenprogramthere.ByApril1945,X2inBernehadunearthedawealthofinformationonNazidealings. Includedinthedealings: GoldandbondslootedfromEuropeandreceivedbycertainSwissbanks. AdditionalfundssentbytheDeutscheVerkehrsKreditbankofKarlsruhetoBasel. StocksandbondsheldinZurichbyprivatefirmsfortheNaziParty. HoardsofSwissfrancscreditedtoprivateaccountsinvariousSwissbanks. CashandpropertyheldinLiechtenstein. Over2millionfrancsheldbytheReichsbankinSwitzerland. FortyfivemillionReichsmarksheldincovertSwissbankaccounts.[15] Such information gleaned in less than four months by the X2 agent only confirms the information that has surfacedovertheyearsthatDulleswasworkinghardfortheNazisinhidingtheirloot,especiallywhenitwas Dulles that was a friend with the American Director of the Bank for International Settlements and top Nazi bankingofficials. Aftertheinvestigationintohismoneylaundering,DullesresignedfromtheOSSandreturnedtoNewYork. HethensoughtoutThomasMcKittrick,theformerheadoftheBankofInternationalSettlements.TheNazishad movedalargeamountoftheirassetsfromSwitzerlandtoArgentina.Dullessoonwenttoworkforastaggering numberofArgentinaclients.DullesandDonovanagreedthateveryeffortshouldbemadetosabotageTruman and the liberals. To this end, Dulles conned Donovan into serving on the board of the World Commerce Corporation, for which Dulles was the lawyer. The reader should recall this corporation from the previous chapter.TheNazimoneyflowedinacirclefromGermanytotheVaticanthenontoArgentinaandthenbackto Germany.TheArgentineeconomyboomedfromtheinfluxoftheNazimoney.Thesocalledeconomicmiracle of1950scamefromthesamemoneytheNazislootedfromEuropeinthe1940s.[10] Fromthebeginning,Safehavenwasanambitiousprojectwithseveralgoalsbesidesitsimmediategoalof forcingtheneutralcountriestostoptradingwiththeNazis.TheSecondarygoalsofSafehavenarelistedbelow.

TorestrictGermaneconomicpenetrationoutsidethebordersoftheReich. TopreventGermanyfromsequesteringassetsinneutralcountries. ToensurethatGermanassetswouldbeavailableforpostwarreparationsandtherebuildingofEurope. TopreventtheescapeofthosemembersoftheNazirulingelitewhohadalreadybeenmarkeddownfor warcrimestrials.[15] AlthoughSafehavenwasalargeandambitiousprogram,itwasterriblyunderstaffed.Untilthesurrenderofthe Nazis in May 1945, SI agents, while assigned to Safehaven, had to concentrate first on strategic information before devoting time to Safehaven. Well trained additional agents simply were not available. Secondly, Safehaven was plagued from the very beginning with the long running feud between the Treasury and State departments and, to a lesser extent, British hesitation to employ harsh measures. Also the success of the operation Safehaven was proportional to the willingness of the neutral countries to comply with the Allied demandstostoptradingwiththeNazis.Finally,theoperationsofSafehavenwereoftentimesduringthewar andespeciallyaftertheendofthewarleftinthehandsofCIC,CounterIntelligenceCorportheCIDCriminal Investigation Division of the military. The reader should recall from an earlier chapter that when Pattons troopsrolledintoDachuatherewerenoSafehavenofficialsavailabletoarresttheremainingSSguards,they weresimplylefttowanderawayunmolested.

Part 3: Bormanns Aktion Feuerland

TheBritishMEW,MinistryofEconomicWarfare,estimatedthattheMerkershoardwasonlytwentypercentof allthegoldGermanyheld.InAugust1945,theBankofEnglandestimatedthattherewouldonlybeenoughgold available at the maximum for a 58% restitution against the claims. This only included the claims from the centralbanksandnottheprivateclaims.Wheredidtherestofthegoldgo?TothisdaytheCIA(inreference 12) denies that the Nazis had a plan for a comeback, despite captured Nazi documents showing otherwise. EvenmembersofCongressandinparticularmembersoftheKilgoreCommitteewereawareoftheNaziplans foracomeback.Ifthereadercheckedtheappendixintheprecedingchapter,hecouldhavereadareproduction oftheactualtranslationofsomeofthesecaptureddocuments.Tounderstandwherethemissinggoldwent,we needtolookattheGermanplansforacomeback. The Nazis definitely had organized plans for a comeback. At the very center of the plan was Martin Bormann,theReichsleiter.Bormann hadrisenthroughtherankstoPartySecretary,thenumbertwospotin the Nazi hierarchy. Hitler had entrusted Bormann with ensuring that the Reich would be able to stage a comeback once hostilities ceased. In the previous chapter details of the meeting at the Red House was presented. The meeting had been the result of Bormanns order. However, Bormann would not be in attendance.[16]TheTreasuryDepartmenthasatranscriptofthemeetingfromacaptureddocument. TheSSagentconductingthemeetinginformedthegroupthatallindustrialmaterialwastobeevacuatedto Germany immediately; acknowledging the battle for France was lost. He also assured the gathering that the Treason against the Nation Law concerning foreign exchange was repealed. At a smaller conference, that afternoonDr.BosseoftheGermanArmamentsMinistryindicatedthattheNazigovernmentwouldmakehuge sums available to industrialists to help them secure bases in foreign countries. Dr. Bosse advised the industrialists that two main banks could be used for the export of capital: Schweizerische Kreditanstalt of Zurich and the Basler Handelsbank. He also advised the industrialists of Swiss cloaks that would buy Swiss propertyforafivepercentcommission.AmonthlaterBormanncountermandedHitlersscorchedearthpolicy topreserveGermanysindustrialbase. BormannknewtheNazishadlostthewaroncetheAllieslandedinNormandyonDDay.Hegavehimself ninemonthstoplaceintooperationhisflightcapitalprogramtofindasafehavenfortheNazisliquidassets. Essentially the AlsaceLorraine area would serve as a microcosm for his plans. The controlling interests in many of the French banks in the areas were German owned. A German majority ownership also controlled manyofthefactories.Inessence,BormannwouldrelyontarnungtohideGermancorporations.Bormannwas closefriendswithSchmitz,adirectorofI.GFarben,andstudiedI.G.smethodoftarnungextensively.Bormann sortedhisrecordsandthenshippedthemtoArgentinaviaSpain.Bormannbeganhisflightofcapitalalready havingcontroloftheAuslandsOrganisationandtheI.G.Verbindungsmanner.Bothorganizationsplacedspies inforeigncountriesusingtheircloakoftechniciansanddirectorsofGermancorporations. BythetimetheBattleoftheBulgewasraging,Bormannhadalreadybeenverysuccessfulinmovingassets outofGermany.In1938,thenumberofpatentregistrationtoGermancompanieswas1,618,butaftertheRed

Housemeetingithadrisento3,377.BormannhadalsoinstitutedatwopricesystemwithGermanystrading partners.Init,thelowerpricewasthepriceclearedorsettledattheendofthebankingday,thehigherprice was retained on the books of the neutral importer. The difference was accumulated to a German account becomingflightcapitalondeposit.UnderthissystemBormannhadaccumulatedabout$18millionkronerand $12 million Turkish lira. Balance sheets in Sweden showed Bormann had acquired seven mines in central Sweden.[17] Bormann created 750 new corporations. The corporations were scattered across the globe and represented a wide array of economic activities, from steel and chemicals to electrical companies. The firms were located as follows Portugal58, Spain112, Sweden233, Switzerland234, Turkey35 and Argentina98.Allofthecorporationsestablishedissuedbearerbondssotherealownershipwasimpossible toestablish.[18] Bormann had several means of dispersing the Nazi assets. He used the diplomatic pouches of the Nazis foreignpolicyminister,vonRibbentrop,tosendgold,diamonds,stocksandbondstoSwedentwiceamonth.A similarpatternwasusedtoferrymorevaluablestoSouthAmerica.InadditiontoBormannsAktionFeuerland project,BormannallowedotherNazistotransfertheirownvaluablesthroughthesamechannels. In Turkey, both the Deutsche Istanbul and the Deusche Orient banks were allowed to retain all their earningsratherthansendthembacktoBerlin.Theearningsassuchweremerebookkeepingitemsthatwere readytobetransferredanywhereintheworld. In1941,GermaninvestmentsinUnitedStatescorporationsheldavotingmajorityin170corporationsand minority ownership in another 108 American corporations. Many of these corporations were part of the I.G. Farbencartel.AdditionallyAmericancorporationshadinvestmentsinGermanytotaling$420million.Withhis programforflightcapitalwellonitsway,BormanngavepermissionforNazistoonceagainpurchaseAmerican stocks. The purchase of stocks was usually through a neutral country, typically Switzerland or Argentina. From foreignexchangefundsondepositsinSwitzerlandandArgentinalargedemanddepositswereplacedinsuch NewYorkbanksasNationalCity,Chase,ManufacturersHanover,MorganGuarantyandIrvingTrust.Manning reports that over $5 billion dollars of American stocks were purchased in such a manner.[19] The reader should note these banks were active in supporting Germany. In addition, every major Nazi corporation transferredassetsandpersonneltotheirforeignsubsidiaries. The United States and Britain never could fully grasp the extent of the Nazi flight capital. John Pehle providesaninterestinginsightastowhytheUnitedStateswasunabletostopBormannandhismovementof Naziassetstoneutralcountries.PehlewastheoriginaldirectoroftheForeignFundsControl.Pehlesreasoning isgivenbelow: In 1944, emphasis in Washington shifted from overseas fiscal controls to assistance to Jewish war refugees. On Presidential order, I was made executive director of the War Refuge Board in January 1944. Orvis Schmidt became director of Foreign Funds Control. Some of the manpower he had was transferred,andwhiletheGermansevidentlyweredoingtheirbesttoavoidAlliedseizureofassets,we weredoingourbesttoextricateasmanyJewsaspossiblefromEurope.[20] Pehles explanation seems overly simple. Certainly additional manpower would have been useful and more couldhavebeenaccomplished.However,therealproblemintheeyesofthiswriterwastherotandcorruption withintheUnitedStates.TheleadersofAmericaslargestcorporationswereallinsympathywiththeNazisand almost all of them had invested heavily in Nazi Germany. Additionally, there were many in Congress that sympathizedwiththeNazicause,asalreadydetailedinearlierchapters.ThemoodinCongresswasoneofget the boys home and get on with business. When Orvis Schmidt testified before Congress to the extent of the Naziinfiltrationofneutralcountriesbeforetheendofthewar,itfellondeafears.Anexcerptofhistestimonyis givenbelow. ThedangerdoesnotliesomuchinthefactthattheGermanindustrialgiantshavehoneycombedthe neutrals, Turkey and Argentina, with branches and affiliates which know how to subvert their commercialinteresttotheespionageandsabotagedemandsoftheirgovernment.Itisimportantand dangerous,however,thatmanyofthesebranches,subsidiariesandaffiliatesintheneutralsandmuch of the cash, securities, patents, contracts and so forth are ostensibly owned through the medium of secretnumberedaccountsorrubricaccounts,trusts,loans,holdingcompanies,bearersharesandthe likebydummypersonsandcompaniesclaimingneutralnationalityandalloftheallegedprotectionand privileges arising from such identities. The real problem is to break through the veil of secrecy and

reach and eliminate the German ability to finance another world war. We must render useless the devicesandcloakswhichhavebeenemployedtohideGermanassets. We have found an I.G. Farben list of its own companies abroad and at homea secret list hitherto unknownwhichnamesover700companiesinwhichI.G.Farbenhasaninterest.[21] ThereadershouldnotethattheI.G.Farbenlistdoesnotincludethe750companiesBormannsetup.Following thewarSchmidttestifiedagaintoCongressasfollows: Theywereinclinedtobeveryindignant.Theirgeneralattitudeandexpectationswasthatthewarwas overandweoughtnowtobeassistingtheminhelpingtogetI.G.FarbenandGermanindustrybackon its feet. Some of them have outwardly said that this questioning and investigation was in their estimation, only a phenomenon of short duration, because as soon as things got a little settled, they wouldexpecttheirfriendsintheUnitedStatesandEnglandtobecomingover.Theirfriends,sothey say, would put a stop to activities such as these investigations and would see that they got the treatmentwhichtheyregardedasproperandtheassistancewouldbegiventothemtohelpreestablish theirindustry.[22] Hereagainweseehowthe4Dprogramwassabotaged.Infact,ineverycountryliberated, therewasagreatreluctancetodisturbthemachineryofmoneyandindustrythathadbeen connectedtoGermanythroughcartelagreements.TheGermanpresencewasreduced,but not eliminated. The cloaked ownership insured continuity for the Nazis. Even the Grand Duchess,CharlotteofLuxembourg,hadherownideas.Uponreturninghomefromexile,the Duchess dismissed the United States investigative team and ordered them out of the country. On June 26, 1945, chairman of the US Senate subcommittee on military affairs, ElbertD.Thomas,commentedonLuxembourg.Anexcerptofhiscommentsfollows. WehadamissioninLuxembourgwhichwasobtainingquiteabitofinformationonthe Grand Duchess Charlotte of steelcarteluntiltheGrandDuchessreturned.Informationwasthenblockedofffromus Luxembourg andthemissionhadtoretirewithwhatinformationtheyhadalreadycollected.There wasmuchtolearnaboutthewayinwhichsmallstateslikeLuxembourghadbeenusedbythecartels. The episode suggests that some rulers, whom we have befriended, may be expected to assist the cartelistsintheirpostwareffortstoregaindominance.[23] What the Grand Duchess had learned from her finance minister was simple: dont tamper with the cartel. Luxembourghadmadeagreatdealofmoneyandtherewaseveryindicationthattheystoodtomakeagreat dealmore.AllthatwasneededwastoreadjustthestockownershiptopleasetheAllies.Powerfulfriendsofthe Bormannorganizationhadunderstoodwhatwasatstakeandplannedaccordingly.Scatteredacrosstheglobe invariouscontrolpointssuchasWallStreet,Washington,LondonandPariswasagroupofbankersthatwere wellawareofthefinancialbenefitsofcooperatingwiththeNaziunderground. FromthepreviouschapterwehaveseenhowtheNaziplansrestedonAmericanfearsofcommunism.Free enterprise and property rights were to take center stage while morality was conveniently dismissed as superfluous.SuchwasthecaseinthefourtoonevotebytheappealsboardtofreeRichardFreudenberg,the largestshoemakerinGermany.FreudenbergwasaregionaleconomicadvisortoBormannandadiehardNazi. Hewasintheautomaticarrestcategory.Theargumentforfreeenterprisewasexpressedinthecommentsof AmbassadorMurphy.ThisisthesameMurphythatwaspartofthecontrolcouncilinthepreviouschapter.His commentsfollowbelow. Whatwearedoingherethroughdenazificationisnothingshortofasocialrevolution.IftheRussians wanttoBolshevizetheirsideoftheElbethatistheirbusiness,butitisnotconformitywithAmerican standardstocutawaythebasisofprivateproperty.Thismanisanextremelycapableindustrialist,a kindofHenryFord.[24] In testimony given at Nuremberg, Herman Schmitz praised Bormann for the manner in which he spread Germanassetsaroundtheglobe.OfparticularinterestwasSchmitzviewofwhatlayinstoreforthedirectors ofI.GFarbenoncethewarwasover.Thepassagefollowsbelow: Wecancontinue.Wehave anoperationalplan.However,Idontbelieveourboard memberswillbe detainedlong.NorwillI.Butwemustgothroughaprocedureofinvestigationbeforerelease,soIhave beentoldbyourNW7peoplewhohaveexcellentcontactsinWashington.[25]

Thelastphraseintheabovequotation,whohaveexcellentcontactsinWashingtonshouldhavesetoffalarm bellsforthereader.HereisdirectproofofpeopleinpowerinWashingtoncollaboratingwithanintegralpartof the Nazi war machine. Where was the follow up investigation into determining who those contacts were? There are reasons why many files for WWII have not been released, besides revealing the industrialists and Congressional members mentioned in the previous chapters as traitors, such files would reveal a number of careeremployeesoftheStateDepartmentandthemilitaryintelligencecommunityastraitors. Insteadlikesomanyotherproductiveleads,itwasdropped.ThisattitudeoftopI.G.Farbendirectorswas typical.Theyknewinadvancethattheywouldsufferonlyminorpenalties.AsGeorgeSeldesremindedus,there are people too powerful or too rich to be subjected to our laws, even when it involves treason. Schmitz information was slightly wrong in that twelve I.G. Farben executives were tried at Nuremberg. Schmitz received a fouryear sentence. However, all of the sentences were later reduced to time served and all were returnedtotheirpreviouspositions. Atthispoint,weneedtoreturntotheMerkershoard.Intelligencereportssince1940indicatedtheNazis were accumulating a fortunate of roughly one billion in 1940 dollars or ten billion in todays dollars. The discoveryoftheMerkershoardcreatedanamazinglycomplexsetofproblems.First,thefindwasonlyabout halfoftheestimatedNazitreasure.WhiletheMerkershoardwasthebulkoftheReichsbanksholdings,there was additional gold and currency left in Berlin. Secondly, the division of the treasure presented a myriad of problems,whichstillremainsacontroversytoday. Also troublesome were the accounts of Melmer and Max Heiliger. Interrogation of Nazi banking officials soonrevealedthenatureoftheseaccounts.AlbertThomsexplainedthatthebootyseizedbytheWehrmacht went straight to the Reichshauptkasse, or Treasury. However, loot seized by the Schutzstaffeln (SS) was handledexclusivelythroughtheReichsbank.ThelootwouldfirstbecreditedtotheMelmeraccount,afterits valuehadbeenassessed,theamountwouldbecreditedtotheHeiligeraccount.Onlyfivepeoplewereprivyto the Heiliger account: Reichsbank president Walter Funk, Reichsbank vice president Emil Puhl, chief cashier Kropf and director Fronknecht, and Albert Thoms, Chief of the Precious Metals Department. The SS account held the proceeds from the Action Reinhardt operation that began in 1943 to systematically strip the concentrationcampinmatesofallgoldcoins,jewelryandclothing.Puhlaidedinthisoperation,as,besideshis Reichsbank position, he was also a director of the International Bank for Settlements. Thus he was in the perfectpositiontoactasaninternationalfenceaftertheconcentrationgoldwasmeltedintogoldbars.[26] TheMelmeraccountwasindicativethatotherprivateaccountsmightexist.Indeedmanyofthetopranking Nazis,fromcolonelonup,hadgatheredtheirowntreasures.Someoftheseprivatetreasures,suchasGorings, were substantial treasures in their own right, others were more modest. The total value of these private treasurehoardsisunknown,asisthefateofmanyofthem. TherewereadditionalfindsintheMerkersarea.Inanothermine,theAlliesfound400tonsofrecordsfrom theGermanPatentOffice,enoughrecordstofillthirtyrailroadcars.Additionalfindsincludedovertwomillion books,therecordsoftheGermanHighCommandandmuchadditionalmaterial.

Part 4: Corruption Overtakes Safehaven

WiththecaptureofMerkers,theAllieswerefastclosinginonBerlin.AstheAlliescontinuedtoadvance,alast desperateattemptwasmadebytheNazistosavetheremainingReichsbankassetsbymovingthemtosouthern Germanyinthealpineredoubtarea.ManyofthetopNaziofficials,whoweredesperatetosavethemselvesand theirownpersonallootedfortunes,alsofledtothisregion. Ernst Kaltenbrunner, chief of the Reich Security Head Office, accumulated one such private fortune that was transported into the Bavarian Alps. Only one document survives concerning the contents of the assets Kaltenbrunnermovedtothesouth.Thecontentsofthissmallhoardarelistedbelow: 50casesofgoldcoinsandgoldarticles(eachcaseweighing100pounds), 2millionUSdollars, 2millionSwissfrancs, 5casesofdiamondsandgemstones, Astampcollectionworth5milliongoldmarks,and 110poundsofgoldbars.[27] Goringalsotransportedhisprivatehoardtotheregion,includingalargeamountofvintagewines.

NotallofthegoldandcurrencyfromBerlinhadbeenshippedtoMerkers;somewasretainedinBerlinto paythetroopsandothersuchexpenses.TheshipmentoftheremainingassetsoftheReichsbankincluded730 gold bars, millions in gold coins. The value of the gold was nearly $10 million. Additionally a prodigious quantityofpapermoneywasincluded.Thisleft$3,434,625ofgoldremaininginBerlin.Thehoardwastobe shippedsouthontwospecialtrainscodenamed Adler(meaningeagle)and Dohle(meaningjackdaw).[28]Due totherapidAlliedadvanceandaircover,thetwotrainswereunabletogodirectlytoMunich.OnApril16,after threedays,thetrainswerestrandedabouttenmilesfromPilsen,Czechoslovakia.Theresomeofthetreasure was loaded onto trucks for the remaining journey to Munich. On April 19, the trains were just inside the Bavarianborderandanadditionalportionofthetreasurewasagainloadedontrucks. On April 19, the train reached Peissenberg about fifty miles south of Munich. The plans were to hide the goldinaleadmine.However,theelectricalpowerwasoutandtheminewasfillingwithwater.Atthispoint,it isbelievedthatthefortuneconsistedof: 365bagscontainingtwogoldbars, 9envelopesofrecords, 4boxesofbullion, 2bagsofgoldcoins, 6casesofDanishcoins, 94bagsofforeignexchangenotes,and 34printingplatesandasupplyofbanknotepaper.[29] FunkwascalledandhedecidedthatthetreasureshouldmovebytruckontoasmalltowncalledMittenwald. Even after the above shipment from Berlin, a small quantity of treasure was still left in the Berlin bank. Ernst Kaltenbrunner seized at gunpoint the remaining assets of the Reichsbank in Berlin and ordered them transported to the south. The robbery was carried out by SS General Josef Spacil, head of Office II. The best estimatesofthegoldandgemstakenwerealittleover$9million.Onceagain,thelootwastakensouthintothe samegeneralregionasthepreviousshipment.Spacilhadaccumulatedahugeprivatehoardforhimself.Inthe closingdaysSpacilpartiallydistributeditamongGestapoofficers.SpacilgaveOttoSkorzeny50,000goldfrancs 10,000Spanishcrowns,5,000dollars,5,000Swissfrancsand5millionReichsmarks.Skorzenywashidingin the Austrian Tyrol. It is important to note that the money given to Skorzeny was never recovered. After Skorzeny surfaced in Spain, he lived palatially and ran his part of die spinne (the spider) escape route from there, as well as dealing in the arms trade.[30] During the 1950s, it was clear to American intelligence that Skorzenyhadalargeamountoffundsathisdisposal. SpacilwaslaterdupedintoleadingAmericantoasmallcachecontaining19bagsofgoldcoinsandbullion worth$11,722andpapermoneyconsistingof160,179dollarsand96,614Englishpounds.Thereweremany otherprivatehoardsthatendedupinthesamegeneralsouthernGermanyarea. StartingonApril19,1945,theGoldRushteamswereinfulloperation.TheteamswereheadedbyColonel BersteinandincludedCommanderJoelFisherandLt.HerbertDuBois.AlbertThoms,thechiefofthePrecious MetalsDepartmentoftheReichsbank,andEmilPuhl,vicepresidentoftheReichsbank,aidedthem.Thegold rushteamsfoundseveraltreasurehoards.OnApril26,attheReichsbankbranchinHalletheyfound65bagsof foreign currency, which included about one million dollars. At Plauen they found 35 bags of gold coins, includingamillionSwissfrancsandaquartermilliongolddollars.OnApril27,theylearnedthelocationof82 barsofgoldbullioninAue,whichwasstillheavilydefended.OnApril28,theylocatedover600silverbarsand 500casesofsilverbars.ThesilverwastheentiresilverreservesofHungary.OnApril29,theyfound82gold barsatEschwege;thefollowingdaytheyfound82goldbarshiddenunderamanurepileatCoburg.OnMay1, theyfound34casesandtwobagsofnonReichgoldinNuremberg.Allofthesehoardswereshippedbackto Frankfurt.Bothcombattroopsandgoldteamsfoundcachesoflootedtreasure,includingthefamedgoldtrain containingthetreasureslootedfromHungary.Thetotalvalueofallthetreasurerecoveredwasestimatedat $500,000,000andincluded$350,000,000ofgold. The gold recovered from the various Reichsbank branches totaled $3,000,000. However, from interrogations and captured documents, the Gold Rush teams knew that the Reichsbank branches had contained over 17 million dollars of gold. Approximately $3,000,000 had been captured by the Russians in Berlin; the remainder had been shipped to southern Germany. In early May, Berstein had to return to

Washington for discussions with President Truman on the decartelization program, for which he was also responsible.LieutenantDuBoisthentookchargeoftherecoveryeffortsinsouthernGermany.[31] ItwasntuntilJune7ththattheAllieswouldrecoveranygoldinsouthernGermany.Adetachmentheaded byMajorWilliamGeiler(lateraNewYorkSupremeCourtjustice)recoveredatotalof728goldbars.Unlikethe myth that surrounds this discovery, these bars were shipped to Frankfurt and properly inventoried. It is commonly confused with the gold recovered by Sergeant Singleton. Singleton had recovered a stash of gold described to be about three feet high and about three feet wide. This gold had been delivered to Munich properly,butneverreachedFrankfurt.[32] ManyoftheproblemsthatplaguedthecompleterecoveryoftheNazigoldareexpressedinaletterfrom RobertKempner,thechiefprosecutorfortheNazidiplomatstrial,toPerryLankhuffofthepoliticaldivisionof themilitarygovernment.Theletterappearsbelow. InthecourseofourtrialagainstNazidiplomatswhichhasjustbeenconcluded,itwasbroughttolight thattheGermanForeignOfficehadbesidesothergoldfundsaspecialRibbentropgoldfund,ingold bullion,weighingapproximatelyfifteentons.Leadsandnewspaperaccountsfromvariouscountriesin theWesternHemisphereindicatethatunrecoveredForeignOfficegoldprobablyinthehandsofformer German Foreign Office officials is still at work for antiAmerican purposes. Large numbers of former GermandiplomatswhohadtodowiththeForeignOfficegoldarestillinforeigncountries,e.g.,Spain, Italy,Ireland,Argentina,Sweden,andSwitzerland,livingwellfromunknownresources. It should be noted that besides other former German diplomats, a brotherinlaw of Ribbentrop is livinginSwitzerlandandatleasttwootherGermanForeignOfficeofficialswhodealtwithGermangold matters. Outofthefifteentons,abouteleventonsofRibbentropsForeignOfficegoldwashurriedlyremoved fromBerlinin1945: 1. 6.5tonstoRibbentropsCasdeFuschlinAustria(nowAmericanZoneofAustria).Thelargerpartof this consignment was allegedly turned over to American troops in the neighborhood of Fuschl. However, German Foreign Office officials stated here in Nuremberg that the amount allegedly turned overwaslessthantheamountwhichwasshippedtoFuschl. 2. 2tonstoSchleswigHolsteinintheBritishZoneallegedlyturnedovertotheBritish. 3. 3tonstotheSouthofGermanyontheshoresofLakeKonstanze,anareaatthattimeinAmerican hands. Out of the last amount, twothirds of a ton were brought over to Berne, Switzerland, in the closing days of the war. This was done in the presence of the son of the former German Minister of Foreign Affars, von Neurath, who according to newspaper reports, arrived a short time ago in the Argentine. About four tons were sent between 1943 and 1945 to German embassies, notably to Madrid, Spain (one ton), to Stockholm, Sweden (onehalf ton), to Berne, Switzerland (threefourths ton), to Ankara, Turkey(aboutoneton),toLisbon,Portugal(anunknownquantity). Since I interviewed several hundred German diplomats, including ambassadors, ministers, and fiscal andpersonneladministrators,IknowthatthesummationwhichImadeaboveishighlyreliable. ButsofarasIknowtherewasneveranycheckmadewhethergoldofthisamountwaseverrecovered orwhethertheamountofForeignOfficegoldturnedoverbyGermanforeignservicepeopletoAllied authoritiesattheendofthewarwasidenticalwithsumsindicatedbymyinvestigation. In the course of the trial, I have from time to time pointed out the danger and the problem of this missing gold, but nobody as yet tackled the problem, and with my heavy trial work in Nuremberg, I couldnotdevote muchtimetoit,sincenowarcrimewasinvolved.Ifeel verystronglythatthis gold projectshouldnotbeneglectedfurtherinthesecriticaltimes,inwhichalargeamountofuncontrolled goldconstitutesaforceforevilandmischiefinthehandsofunscrupulousopportunistsworkingclosely togetherandlocatedinmanycountriesallovertheworld.[33] Whatisknownforsure aboutRibbentropsgoldisalittlemorethan fourtonswererecovered.The6.5tons allegedlyrecoveredfromRibbentropscastleappearstohavevanished,asnorecordsexistofitintheFederal Exchange Depository. According to the trial records of the Wilhelmstrasse trial, a large part of this gold was turnedovertoeithertheThirdorSeventhArmyonJune15,1945.However,thebooksoftheAlliedoccupation

shownotraceofthisgoldworth$108,000,000today.Kempnercontinuedtopursuethemissinggold.In1950, helobbiedCongresstolookintothematter.Congresswasunabletofindanynewinformation. The disappearance of recovered various treasure hoards that had been recovered in southern Germany was all too common an outcome. A stash of paper currency was recovered from the garden of the von Bluechers.TheonlydocumentofthisrecoveryisapoorlytypedreceiptthatLuderandHubertvonBluecher demandedbeforeturningthemoneyovertoCaptainFredNeumann.Thereceiptacknowledgesthatatotalof $404,840 dollars and 405 pounds were turned over to the US Army. Both Captain Neumann and the von Bluechersweresuspectedofbeinginvolvedinthemissingmoney.However,withrecentlyreleaseddocuments fromthegovernmentarchives,thisdisappearanceofrecoveredmoneywaspartofamuchlargerproblemand clearedNeumannandthevonBluechers.[34] PartoftheproblemlayinrivalrybetweentheArmyandtheMilitaryGovernmentagenciesandthelackof coordination between them. The CID, Criminal Investigative Division, was primarily was responsible to the Army. However, the CIC, Counter Intelligence Corps, was primarily responsible to the military government. Both groups were involved in the gold recovery. Furthermore, the structure of both the Army and Military governmentwasverticalandthecommunicationfromthetopdowntothebottomlevelswasatbestfaltering. ManyMilitaryGovernmentcommandersconsideredthemselvestobefreeagentsandignoreddirectivesfrom higherup.Complicatingtheproblemwasthehighrotationofthepersonnelandthelimitingcontractsthatthe MilitaryGovernmentcouldoffer.TheMilitaryGovernmentwaslimitedtoissuingonlyoneyearcontractsand restrictedthetoppayto$10,000peryear. InitiallytheCIDboreresponsibilityfortheinvestigationoftheReichsbanktreasure.Attheendofthewar, theCIDwasfullofmencountingthedaysbeforetheygotshippedhome.Mosthadbeenrecruitedfrommilitary police units. Background checks of new recruits were often lacking. Several were found to have criminal records,whileotherswerefoundtohavebeendiscreditedpoliceofficers.Thesewereweededoutassoonas theywerediscovered. Ultimately,allCIDunitswereundertheCommandProvostMarshal,BrigadierGeneralGeorgeH.(Pappy) Weems. Weems was a West Point officer and his basic branch of service was the horse cavalry. Apparently, Weemswasunabletokeepupandmaketheswitchfromthehorsecavalrytoarmoreddivisions.Priortobeing sent to Germany, Weems had been head of the military mission to Hungary. Noticeably absent in his backgroundwasanytypeofpoliceworkorinvestigativework.AlsoapparentwasthatWeemsseemstohave suffered some kind of stroke. He walked with a cane and had a faulty memory, which seemed to lack the capacitytounderstandanythingofacomplexnature.Thegeneralwasalsoafflictedwithpoorhearingandwas known to issue outrageous orders and have temper tantrums. Weems had a peculiar obsession with typewriters. Any case where a typewriter had been stolen or reported missing had to be brought to his personalattention.Inshort,Weemswassenile,duemostlikelyfromamildstroke.[35] ItwasntuntilSeptember1947thatWeemswasreplacedwithLieutenantColonelWilliamKarp.Obviously, the CID was handicapped from the top down by and inappropriate assignment of Weems. Just as the 4Ds programwashamperedbyashortageofmanpowerandqualitytraining,theCIDwashamperedwiththesame problems. Note the reader should not infer that this applies to the initial gold rush teams. However, those teams were dismantled soon after the war ended. How Weems came to be assigned his post and those responsibleshouldmakeforsomeinterestingreadingandisleftforfutureresearchers. TheCICwasalsoplaguedwithproblems.TheproblemswiththeCICwereinternalfeudingamongagents. ManyoftheagentswereJewishandborninGermany.Theseagentsdividedthemselvesintotwogroups.One groupconsideredGermanyastheirhomeandwasconcernedwithrootingoutNazismandreturningGermany to a democratic state. The other group was orientated to the east and only considered Germany a stepping stoneontheirwaytothestateofIsrael.OtheragentsoftheCICwerefirstgenerationPoles,Czechsandother eastern European origins. Such agents led to divided loyalties, internal stress and even to illegal alliances outsideoftheCIC.ByfartheCIDunitwasthemoreprofessional,withtheCICoftendescribedbytheCIDagents asagroupofthugs. StartinginlateJune1945andlastingto1947,thiswasthesadstateofaffairshamperingtheGarmischcase, inwhichgoldwasrecoveredandthendisappeared.Itwasoverlycompartmentalizedwithnoclearobjectives, nodirection,nocoordinationand,mostimportantly,nocentralizeddatabase.Inshort,thevariousunitswere allowedtoblunderoffintothedarktopursuetheirownindividualgoals.Thecasewascomplicatedbythefact thatnooneknewjustexactlyhowmuchgoldandcurrencyhaddisappeared.Itwouldtakeanotheryearanda half before the Federal Exchange Depository would discover that its Reichsbank account was short by

$2,000,000. It is only recently with the release of previously classified documents that one can begin to understandthedisappearanceoftherecoveredgoldandcurrency.Therecordsshowthattherecoveredfunds weredepositedintheLandCentralBankinMunich.Therethegoldandcurrencyseemtohavevanished. WhattherecordsnowshowisthatnoneoftherecoveriesintheareaaroundGarmischeverreachedthe FederalExchangeDepository.ThevariousAmericanauthoritiesinthechainfromGarmischtoFrankfurtwere allconversantwiththeproperproceduresforthetransferoffunds.ThefundswouldreachMunichandfrom theredisappear.Afteranexhaustivesearch,theauthorsIanSayerandDouglasBottingconcludedthatatotalof $432,985,013fromtheReichsbankwasneveraccountedfor.Notably,includedwerethediamonds,securities and currencies given to Otto Skorzeny by SS General Spacil totaling $9,131,000 of which only $492,401 was everrecovered.Inonecase,$8,000,000ofpapercurrencywasrecoveredbyMajorRogerRawleyandturned overtoMajorKennethMcIntyre.Fromthere,thefundsdisappeared.[37] Following the collapse of Germany to the Allies, the economy deteriorated into a black market economy withcigarettesasthepreferredmediumofexchange.OneCamelcigarettewasworthmorethandoubleadays payforaGermanhiredtoclearrubble.AtfirstGeneralClayseemedunawareoftheblackmarket,butwhena CID reported to him that the black market was a security threat, every avenue was taken to cover it up. AmericanswillingtoengageintheblackmarketextendedallthewaytothetopandincludedClayswife,who reportedly was very active in the black market. Covering up the black market was made more difficult for GeneralClaywhentheUSCustomsFloridaDistrictsentacomplaintlistinglandingsofClayspersonalplanein the Miami area. In each case the pilot reported the landing as a classified mission, thus bypassing customs. However,inGermanytheflightswereloggedastrainingmissions.Chargeswerefiledagainstthepilot,butit wasclearhewasjusttakingthefallforsomeoneelse.[38] ManyAmericanstriedtostrikeitrichintheblackmarketeconomy,mostfailed.However,thenumberof thosethatsucceededcamepredominatelyfromtheOfficeofMilitaryGovernmentinBavaria.Theheadofthe Financial Division in Munich was Colonel Lord and his aide, Major McCarthy from Property Control. Both individualsfiguredprominentlyinthedisappearanceofgoldandcurrencyonceitreachedMunich.[36]Once thegoldfromGarmischwasturnedovertotheproperauthoritiesinMunich,onlyMcCarthyandLordwould havehadaccesstoit.McCarthywasalsofingeredbyanAmericaninvestigatorforhavingahandinthedrug tradeinandaroundGarmischandMunich. TheextensionofthecorruptionofthemilitarygovernmentisbestrevealedinthefollowingpassagebyLt. Kulka.KulkawasanaidetoColonelSmithandtheywereassignedtoinvestigatethecorruptionintheGarmisch and Munich area. Kulka had been sent to a civilian house converted into an American Bachelor Officers Quarters on a report that a young officer was sharing his room with his girlfriend, a baroness, which was strictlyforbidden.Hewasmistakenasacourierbythehausdameandgivenabriefcase. Shelookedatmeandsaid,Ohyoumustbetheyoungmanwhocametopickupthebriefcasewiththe papersforSwitzerland.Isaid,Iguessso.Shesaid,Ohyes,lieutenanttoldmethatyouwerecomingto pick it up and that you are a young pilot. So I said, Yes. The Dame came down and handed me a briefcase and a larger attache case, which had been sealed with a diplomatic seal. Therefore, I took themandhastilyleft.Itookthemtomyroominthehouseandopenedupthediplomaticcaseandtomy surprisefounditfilledwithBritishpoundsinratherlargedenominationsandalsosomejewelry.The briefcase I found to be filled with about ten folders which contained very neatly written columns of namesofpeoplewithdatesandtheirrank,theirlocationandsumsofmoneyalltheinstructionsand records of how the money had been transported across the border. I immediately went to Colonel Smithandhewasextremelyinterested.Wewentthroughthepaperworkandfoundagreatnumberof important names, including a number of colonels from headquarters. The one thing they all had in common was that they all belonged to units that had one time or another controlled the border crossingtoSwitzerlandmilitarypolice,militarygovernmentagencies,andCIC.[39] By the middle of July 1947, Colonel Smith had completed his preliminary investigation and submitted his report to General Clay. The report indicated that there was enough evidence to warrant a fullscale investigation. General Clay issued an order to that effect. Smith, fearing for his life, asked for an immediate transfer.AfterwardsthemilitarygovernorandpostcommanderofGarmischwereshippedbacktothestates and several other officers transferred out of the area. The Inspector General Office suddenly terminated the investigation.KulkaallegesthattheordertostoptheinvestigationwasgivenbyClaysoffice.Additionallyhe claims half of the US command would have been in trouble if the investigation had proceeded. The files

gatheredbySmithandKulkaweredestroyed.Kulkawasorderedtokeephismouthshutandthenaccusedof gun running and accused of harboring an alien in his quarters, which happened to be his 87yearold grandmother.Additionallyhisbridetobe,andcurrentlyhiswife,waslistedasaSudetenGermanexpelleefrom Czechoslovakia and not as a Jewish DP. When Kulka informed his Senator of the problem, so much pressure wasbroughtonhisbridetobeandhisgrandmotherthathehadtokeephismouthshut.Onlybyanaccident was his bride to be allowed to get her exit permit. Colonel Smith was transferred from Berlin to Ecuador. In 1978,Kulkareportsthatfriendsofhisstillsufferfrommysteriousdeathsandsuicidesthatheattributesasa warningfromtheGarmischaffairtokeephismouthshut.[40] TheGarmischaffairdidnotendwiththeSmithandKulkainvestigation.InSeptemberinBadTohr,Frank Gammachewaschargedwithmisappropriationofmilitarypropertyanddisorderlyanddiscreditableconduct. The charges were so trivial compared to the criminal activity in the area as to be laughable. Gammache was going to be the small fall guy. A further investigation was opened under the code name Operation Garpeck. HeadingtheoperationwereVictorPeccarelliandPhilipvonPflugeBenzell.Thecasesoonreachedasfarafield as San Francisco, where now civilian Captain Neumann lived. The case also reopened the investigation into Major McCarthy. McCarthys influence still lingered on in Munich, as files on him disappeared before the investigatorsgottothem,andshortlyhisphonewasbugged.McCarthylearnedofthetapandmoved. TheinvestigationsooncrossedthepathofnewsmanGuenterReinhardt.ReinhardtwasanativeofaJewish Germanybankingfamily.Attheageof21hehadimmigratedtotheUnitedStates.HisfirstjobinNewYorkhad beenwithabank,butby1933hehadbecameafreelancejournalist.Hewroteasyndicatedcolumnonforeign affairsfortheMcClurenewspapers.Hehadbeencommissionedbyhisbankingconnectionsandcivicgroupsto conduct an investigation into Germanys likely future international relations. The information he uncovered about Nazi activities in the United States was turned over to the House Committee on Immigration and Naturalization. This led Reinhardt into his involvement with American Intelligence. In 1934, he acted as a liaison between the McCormick Committee and the FBI. During 1942 and 1943, Reinhardt infiltrated communistorganizationsfortheFBI.In1946,hejoinedtheCICinGermany. By all reports, Reinhardt was an enthusiastic and dedicated agent in Europe. However, he soon began to show signs of stress and fatigue as he realized the whole system was corrupt. By the summer of 1947, he realized that his career with the CIC was in jeopardy. His superiors had arranged secretly to send Reinhardt home. He complained about the transfer. There was no appeal for him and he was forbidden to go to the InspectorGeneralunderthethreatofimmediatearrest.Hewasfurtherwarnedthatifhespokewiththepress or attempted to get another job in Germany, he would be arrested for violations of security regulations. AdditionallytheythreatenedtodraghisGermangirlfriendthroughthemud. Outraged at the actions and threats, Reinhardt dictated the first of two memos known as the Reinhardt memos.The firstwasaformal48pagereportdetailingtheirregularitiesandfakeintelligencereportsinthe Munichregion.ThereportaccusedtheCICofwidespreadcorruptionandincompetence.Thereportwrittenin Novembercausedanimmediateshakeup.TheoperationschiefforBavariawasdismissedimmediatelyandthe executive officer was transferred. However, there was also a cover up of two chains: one from Garmisch to Augsburg,theotherfromMunichtoNuremberg.AfterhearrivedinNewYorkinDecember,Reinhardtwrote hissecondmemo,a55pagedocument.Thisdocumentwasdividedintoninesections.Theopeningsectionwas labeledLootandSmugglingSituation.ItdescribedhowUSpersonnelwerecontinuingtosmugglevaluables intothestates:thehighertherank,thegreatertheproblem.Inthecaseofonegeneral,Reinhardtdetailedhow thegeneralsbaggagecontained166cratesladenwithsilverware,china andothervaluableslootedfromthe castles around Hesse. Reinhardts memo had been dictated to assistant Secretary of the Army, Gordon Gray, afterReinhardthadbeenappointedasaspecialconsultant.GraywouldlaterrisetobecomeDirectoroftheCIA. The heart of the memo laid in the charge that a group of Americans and Germans were involved in widespreadcorruptionintheGarmischareaandwieldedenoughpowertoderailanyinvestigations.Thehead of the group was John McCarthy. The memo had been sent to General Clay in Germany and caused an immediateuproar.Clayhatedanyscandalswithinhiscommandandratherthancleanupthemess,avastcover up was initiated. As for the ongoing Operation Garpeck, General Weems canceled it shortly after Reinhardts memoarrivedinGermany.TheArmyconcludedthatthechargeswereoverblown. McCarthyandhissuperior,ColonelLord,didnotescapeunscathed.Whiletheysurvivedchargesfromthe Reinhardtmemo,theirboundlessgreedeventuallycaughtupwiththem.Thepairconcoctedaschemetobuy thevariousI.G.FarbenplantsthroughafronttheysetupinLiechtenstein.AninvestigationorderedbyGeneral

Clay unmasked their scheme and both individuals were terminated from the Army. However, General Clay madenopublicannouncementoftheillegalityoftheschemeoritsoutcome.[41]

Part 5: Operation Andrew, Swedish Neutrality and Nazi Gold

While the military government in the Munich area was beset with corruption, the looting of the Nazi hoard palesincomparisontotheamountofmoneylaunderedbytheneutralcountriesfortheNazis.However,before looking at the neutral countries, one other aspect of the Nazis must be examined first. Although it doesnt consist of looted funds, it figured prominently in the Nazi finance plans. It is perhaps one of the least understoodaspectsofthewarthatisoftentimesincorrectlyreferredtoasOperationBernhard.Thetruename for the Nazi plot to counterfeit British pounds was Operation Andrew or Andreas. Like a joker in a deck of cards,nooneknowsfor certainthe extentofthe operationor even how manyofthe counterfeit noteswere placedincirculation. The Bank of London had its own reasons to keep mum about the amount of counterfeit bills it found in circulation,astheoperationwasdesignedtobringaboutthedownfalloftheBritishpound.OperationAndrew wasthebrainchildofAlfredNanjocks,afanaticalNazi.NanjockswastheofficerthatsimulatedthePolishattack on the German radio station that started the war. After the occupation of the Low Countries, Heydrich transferredNanjockstothedocumentsdivisionoftheSDbecauseNanjockshadacquiredareputationforbeing toorecklessandviolentforhisowngood.Forgingpassportswasnottothefanaticsliking,however,flooding the world in counterfeit currency appealed to him. Nanjocks was envisioning flooding the world with counterfeitBritishpoundstodestabilizetheEnglisheconomy. Immediately after the British had dropped forged German auxiliary certificates of payment for 50 Reichsfenning,NanjockstooktheideatoHeydrich.TheBritishintentindroppingthe forgedcertificateswas the same, to wreck the German economy. Heydrich liked the idea and added to it the forging of American dollarsandsoughtoutHitlersapproval.Hitlernixedtheideaofforgingdollars,foratthetimeGermanywas not at war with the US. Funk and other bureaucrats did not like the idea much. Funk was worried that by destabilizing the pound, it could create a creditor backlash and also destabilize the Reichsmark. The astute readershouldbeastoundedbythelaststatement.TheNazibankerwasworriedaboutthefailureoftheBank ofEngland.SuchastatementcanonlytestifytotheamountofcollaborationbetweentheBankofEnglandand theNazis;thesameappliesfortheNazisfriendsonWallStreetandthebigmoneycenteredinbanksofNew YorkCity. Heydrich assigned the matter to RSHA Bureau IV and a new division named SHARP 4 was formed to overseeit.Inthesummerof1942,theforgingringwassetupinsidetheSachsenhausenconcentrationcamp.SS major Fredrich Kruger was selected to head the operation. In Berlin, the operation was known formally as Aktion1.Usinginmatelabor,theactualforgerypresentednoproblem.However,thegrouphadahardtimein developingasuitablepaper.TheworkinSachenhausenwasisolatedfromtherestofthecamp.MaxBober,a printerbyprofession,headeduptheteamofsixtyinmates.Theinmatesweregiven everythingtheyneeded. Sabotage would have resulted in their immediate demise. It wasnt until 1943 that a suitable paper was producedbytheHahnemuhlpaperplant.Thefactorydelivered120,000sheetsamonthtotheoperation.Each sheetwouldproduceeightnotes.Eventhen,thecounterfeitnoteswereonlymediocreatbest.Itwasntuntil theNazislocatedSalomonSmolianoff,anaccomplishedcounterfeiter,thatsuitablenotescouldbeproduced. Once Smolianoff had corrected the earlier mistakes, print runs of fifteen to twenty hours were run. Each notewasexaminedindividuallyandonlythebestnoteswereselected.Thesenotesthenweresubmittedtoa processofagingtomakethemlookused.Alldenominationswereproduced,includingthehundredpoundnote, however, the fivepound note made up forty percent of the printing runs. By mid1943, Krugers team had grownto140andwasturningoutabout40,000notesamonth.Unliketherestofthecamp,Krugersinmates receivedadequatefoodandevenacigaretteration. Thenotesproducedweredividedintofourcategories:perfect,nearperfect,flawedandrejects.Therejects weredestroyed;initiallytheyhadplannedtoairdropthemoverEngland.Theperfectnoteswerereservedfor Germanspiestouseinneutralcountries.ThenearperfectnoteswerebundledandprovidedtotheSStousein occupiedcountries.Theflawednoteswerealsousedinthismanner.Astheoperationcontinued,thequalityof notesimprovedtosuchastatethattheywereacceptedbybanksthroughouttheworld.TheBankofEngland onlystumbledacrossthecounterfeitnoteswhenabankclerknoticedthatthetwonotessheheldinherhands hadthesameserialnumber.Thenotesweresogoodthattheonlymeansofdetectionwasbymatchingittoa genuinenotewiththesameserialnumber.

The equivalent of $4.5 billion of British pounds was eventually shipped to Berlin and then all over the world. Operatives used the forged notes to purchase legitimate objects, which were then resold for stable worldcurrencies.Somenoteswere distributedtoGermanembassiesin theneutralcountriesandexchanged for local currency. Initial attempts to distribute the notes in a massive way were disastrous. The German militaryarrestedtheirownagents,asAktion1wastopsecret.[42] At some point the underlying mission of Aktion 1 changed. Himmler and Lt. Grobel, head of Bureau VI, became greedy. They envisioned laundering the notes on a large scale and skimming the profits for their personal benefit. To accomplish the widespread distribution, Friedrich Schwend was brought into the operation.Inthe1920sSchwendwasanarmsdealer.HemarriedthenieceoftheMinisterofExterior,Baron vonNeurath.Throughhiswifesfamilyconnections,hemanagedtobeappointedasthepersonaladministrator of the extremely wealthy Bunge family. The alert reader should note that this is the same Bunge family connected with the John F. Kennedy assassination that made a small fortune by shorting the market the day Kennedywaskilled.Inthe1930sSchwendwasworkingfromNewYork,managingtheinvestmentsofBunge& Born. Schwend was brought into Bureau IV as paymaster of the money laundering end of the scheme. At this pointhewasgivenafalseidentificationasMajorWendig,alegalofficeroftheGestapoandamemberofthe tankcorps.InSeptember1943,SchwendstartedsettinguphisnetworkandrequestedColonelJosefSpacilto maintain the bookkeeping aspects of the operation, the same Colonel Spacil that was involved in funding Skorzeny,asreportedearlierinthischapter.OperationBernhardreferstotheschemeofprivateenrichmentof thefewmeninvolvedinit.Schwendwasskimmingathirdofthecounterfeitnotesforthisgroup. This operation continued to the end of the war and was very successful. The Bank of England suffered enormouslosses.EvenwiththeRussiansclosinginonSachenhausen,the operationdidntshutdown.Itjust movedtosouthernGermanyneartheAustrianborder.ThereitcontinuedoperationuntilaboutMay3.Someof the last cargo of forged notes ended up at the bottom of Lake Toplitz. The boxes were hidden there in a midnight rowboat operation. The boxes were located in 2000. The fate of the remainder of the notes is unknown.[44] AsmuchashalfoftheReichsbankgoldremainsunaccountedfor.Bormannundoubtedlytransferredsome ofitoutofGermany;otherpartswerelootedbybothtopNaziofficialsandUSpersonnel.Muchofitmostlikely wasusedtobuymunitionsandrawmaterialfromneutralcountries.Thus,abriefreviewoftheproblemsthe AlliesencounteredintryingtointercedebetweenNaziGermanyandtheneutralcountriesisneeded. Aware that Nazi Germany was disposing of looted property in neutral countries, Britain instigated talks withtheotherAllies.OnJanuary5,1943,theInterAlliedDeclarationagainstActsofDispossessionCommitted inTerritoriesunderEnemyOccupationorControlwasissued.Thedeclarationwastheresultofthetalksand signedbysixteennationsandEngland.Thedeclarationsimplystatedthatthesignaturenationsreservedthe right to declare invalid any transaction concerning property from any of the occupied territories. The declaration was largely a political declaration. Both the Bank of England and the Treasury Department had doubts that the act would achieve the desired results. There was little the Allies could do to enforce the declaration without damaging their own economic situation or souring future relations with the neutrals. Technically the act was restricted to just gold dealings. Others wanted to broaden the scope of the act to includeothervaluables.ItwasntuntiltheGoldDeclarationofJanuary5,1943thattheUnitedStatesbeganan aggressivecampaigntowardstheneutralsandtheirgolddealings. OfparticularconcerntotheUnitedStateswasSwitzerland.HowevertheSwisswereslowinresponding.It wasntuntilthetideofthewarwasclearlyinthefavoroftheAlliesthattheSwissresponded.OnDecember28, 1944, Switzerland announced it had blocked the accounts of all from Hungary, Slovakia and Croatia. On February7,1945BritishandAmericandelegatesmetwithSwissofficialsinBernetonegotiateanagreement on immediate economic warfare objectives and Swiss exports to Germany. The Swiss in turn wanted help in acquiring raw materials and food in the form of import quotas from the Allies and assistance with transit facilitiesacrossFrance.OnFebruary16,SwitzerlandannouncedablockonallGermanassets.OnMarch8,the SwisssignedanagreementunderwhichtheSwissGovernmentundertooktotakemeasurestoensurethatthe territory of the Swiss Confederation should not be used as a cache for looted assets, to conduct a census of German assets in Switzerland and to purchase no more gold from Germany except the quantity needed for diplomatic expenses.[45] The reader should pay particular attention to the timeline of the above dealings. It wasntuntilthreemonthsbeforethedefeatofNaziGermanythatSwitzerlandtookanyactionagainsttheNazis.

Thewillingnessoftheotherneutralsfollowedthesametimeline;itwasntuntilitwasclearthattheNaziswere defeatedthattheywouldtakeaction. The basis for the recovery of gold and Nazi assets outside of Germany was governed by the declarations issuedonJune5,1945bytheFourPowersandtheReportofthePotsdamConferenceofAugust2,1945,which statedthattheAlliedControlCouncilwouldtakesuchmeasuresaswereappropriatetoexercisecontrolover Germanassetsabroadandexercisetherightofdisposalofsuch.BothactsconferredpowersontheAlliesthat were not easy to exercise and were not well received by many of the neutral countries. Legally, the Allied positionwasweak.BothSwedenandSwitzerlandwerequicktorespondthatsuchademandconflictedboth withtheirownlegislationandwiththeirstatusasneutrals.Noagreementinhowtodealwiththeneutralswas reached until December 1945. Even then, the agreement was worded weakly as to prevail upon the neutral countries to return the Nazi assets. However, the agreement offered no guide as to how to prevail on the neutrals.TheUnitedStateswantedtoemploysanctions,whiletheBritishrejectedsanctionsasunenforceable duringpeacetime.EventuallyitwasagreedthattheUnitedStateswouldopennegotiationswithSwitzerlandin Washington. As leverage over the Swiss, the United States would not unblock Swiss accounts in the United StatesnorremoveSwisscompaniesfromtheAlliedblacklistunlessanagreementcouldbereached.[45]Abrief surveyoftheneutralnationsandtheproblemsencounterineachfollows. During the war, Sweden was openly profascist, however, Sweden was one of the more cooperative countries of the neutrals. The high grade Swedish iron ore formed the basis of a strong and profitable connectionbetweenSwedenandtheNazis.TheNazisregardedthissupplyoforeasvital,sovitalthattheNazis delayedtheinvasionoftheLowCountriesinordertoinvadeDenmarkandNorwayfirsttoprotecttheshipping routefortheore. S&K bearings was another Swedish company that enjoyed a profitable relationship with the Nazis. No matterifitwasaship,truck,tankorplane;itrequiredbearingsandtheNazisweredependentuponS&Kto produce the bearings. S&K also presented a special problem for the United States, as the US was equally dependentuponS&Kforbearings.S&KdiditsbestindelayingproductionforwarmunitionsinitsUSplants. Such a situation presented the Roosevelt administration with a dilemma. The US could impose sanctions on S&K, Sweden, or both. The sanctions would most likely result in a reprisal by S&K in further limiting the production of bearings and disrupt the production of war munitions. A second option for the administration would be to seize the plants for the duration of the war. Such a move would only further the charges of the rampantcommunismandsocialismpresentintheadministrationbyFDRscritics.Theonlyotheroptionwasto allowS&Ktocontinuewithbusinessasusual,whichwasthecoursefollowed.Regardlessofwhowonthewar, S&Kwassuretowinbigbysupplyingbothsideswithbearings. There were many other Swedish corporations that enjoyed profitable relationships with the Nazis, however,theonemostcherishedbytheNaziswastheEnskildabank,ownedbytheWallenbergs.Withagood relationship with a bank the Nazis could borrow funds and launder their stolen gold. Safehaven documents revealthattheUShadbeentrackingtheproNaziactivitiesoftheWallenbergsforseveralyears.InFebruary 1945, Morgenthau, in a letter to Secretary of State Edward Stettinius, charged that Enskilda was making substantial loans to the Nazis without collateral and making covert investments for German capitalists in US industries.Hefurtherchargedthatthebankwasrepeatedlyconnectedwithlargeblackmarketoperations.In theletter,MorgenthauidentifiedJacobWallenbergasstronglyproNaziandrebutstheclaimthatMarcuswas proAlly.TheWallenbergswereplayingbothsidesjustasS&Kwas.RaulWallenberg,acousinhelpedtosave 20,000JewsinBudapest.WhentheSovietarmyrecapturedBudapesttheyarrestedRaulasanAmericanspy.In June1996theUSNewsandReportreported,inareviewofdeclassifieddocuments,thatRaulWallenbergwasa spyfortheOSS.[46] InaTreasurymemodatedFebruary7,1945,MorgenthaudetailshisconcernovertheWallenbergbrothers. Thetextofthememofollows. Jacob Wallenberg recently indicated that he was willing to sell to the Germans a Swedish plant in Hamburgforgold,providedthepricewashighenoughforpossiblefuturecomplications. ThefollowingfactsshouldbeconsideredinevaluatingtheimpressionheldinsomecirclesthatMarcus WallenbergisstronglyproAllied. While Marcus Wallenberg was apparently sympathetic with the allied cause, Jacob Wallenberg, his brother and partner in the Enskilda Bank was known to be sympathetic to and working with the Germans.

JacobWallenbergwastheauthoroftheSwedishGermantradingagreement. Jacob Wallenberg is a member of the Permanent Joint SwedishGerman Trading Commission and MarcusWallenbergisamemberoftheJointStandingCommitteecreatedbytheAngoSwedishTrading Agreement. MarcusWallenbergcametotheUnitedStatesin1940andattemptedtopurchase,onbehalfofGerman interests,anAmericanheldblockofGermansecurities. Enskilda Bank has been repeatedly connected with large black market operations in foreign currencies,includingthedollarsreportedtohavebeendumpedbytheGermans.[62] Britain and the US first began to enlist Sweden in the Safehaven program in 1944. Britain was in favor of restrictingtheprograminSwedentojustgold,whiletheUSwantedtoincludeotherassetsaswell.TheUSused tradeagreementsasaninducementforcooperation.TheRiksdag,SwedishParliament,voiceditsapprovalof SafehavenandinFebruary1945Swedenbegananinventoryofitsgoldandforeigncurrencytoseehowmuch was linked to the Nazis. By spring, the British concurred withthe Americans and a proposal was drafted for Sweden.TheproposalwasthenusedasabasisfortalksinLisbonandMadrid.Bysummer1945,Swedenhad passed several measures to control German property by restricting its sale or dispersal, and expanded the range of their census to include all types of German property. In January 1946, at the urging of the Allies, Sweden expanded the laws to include German subsidiaries. In November 1945, Sweden gave the Treasury Department a report on Swedish gold transactions. From the report, the Treasury concluded Sweden had received$22.7millioningoldlootedfromBelgium.Theamountwasreducedto$17million. On February 11, 1946 the US Embassy informed Sweden of the details of ACC Law 5, vesting the title of German assets in other countries with the occupation authorities and invited a Swedish delegation to Washington. Sweden expressed grave concerns over the claim, but agreed to the talk. On April 5, Sweden informedtheAmericanembassythatthematterwouldhavetobeputtotheRiksdag,whereitwouldprobably facedefeatbasedonbeliefthatAlliedclaimwasnotvalidininternationallawandhenceaviolationofprivate propertyrights.Inaddition,SwedenrequestedthattheirassetsintheUnitedStates,frozenafterthewar,be releasedpriortonegotiationsandthattheybeallowedtoinspectSwedishpropertyinGermany.Therequest wasdenied. By the end of March after discussions with Britain and France over German assets inside Sweden, the UnitedStatesbelievedtheyhadanalmostcompletepictureoftheGermanassetsinSwedenandbegantopush for negotiations. Formal negotiations began in Washington on May 29. The US delegation was headed by Seymour Rubin, Deputy Director of the State Departments Office of Economic Security Policy. The British delegationwasledbyFrancisW.McCombeoftheForeignOffice.FranceheadedtheirdelegationwithChristian Valensi, Financial Counselor of the French Embassy in Washington. Judge Emil Sandstrom headed the delegationfromSweden.Fromtheoutset,SwedenagreedtothedangerofNaziassetsbeingusedtoprovidea revivalofNazism,butcontestedthevalidityoftheAlliesclaimtotheassets. Thenegotiationscontinuedinafriendlymanner andonJuly 18bothsidesreachedanagreement.Ofthe estimated378millionkroner(about$90.7million)inGermanassetsinSweden,Swedenagreedtodividethe assets as follows: 50 million kroner (about $12.5 million) would go to the Intergovernmental Committee on Refugees(latertheInternationalRefugeeOrganization),75millionkroner(about$18million)wouldgotothe InterAllied Reparations Agency (IARA), excluding the amounts the United States, Britain, and France would get; 150 million kroner (about $36 million) would go for assistance in preventing disease and unrest in Germany.ThelastsumwouldbeusedtopurchaseinSwedenorothercountriesessentialcommoditiesforthe Germaneconomy.MoreovertheagreementallowedforSwedesandGermanownersofliquidatedpropertyto be compensated in German currency; allowed for a Swedish mission to travel to the US, British, and French ZonesofoccupiedGermanytoinspectSwedishproperties;calledforthereleaseoffrozenSwedishassetsinthe UnitedStates(estimatedatthetimeat$200million)andtheremovalofanyblacklists;andallowedtheAllies toholdinreservetheirclaimstoGermanstatepropertiesinSweden. IntheagreementSwedenwouldrestituteamountsto7,555.32664kilogramsoffinegold(approximately $8.1million),correspondingtothequantityofgoldderivingfromtheBankofBelgium.Swedenwouldbeheld harmlessfromanyclaimsderivingfromtransfersfromtheSwedishRiksbanktothirdcountriesofgoldtobe restituted. Finally, the agreement prohibited Allied claims with regard to any gold acquired by Sweden from GermanyandtransferredtothirdcountriespriortoJune1,1945,oranyadditionalclaimsafterJuly1,1947.In hisreportRubinnotedthatthetalksproceededsmoothlyandintheabsenceofbitterness.[47]

S Sweden form mally ratified d the agreem ment in Nove ember 1946. Shortly bef fore the exp piration of th he July 1, 1947 7deadlinefo orgoldclaims s,theAlliesf filedareques stfortheres stitutionof6 638lootedDu utchgoldbar rs(worth abou ut $10 millio on). Sweden challenged a a portion of these claims s. The Swedi ish challenge e rested on the t claim that someofthis sgoldwasac cquiredbefor retheLondo onDeclaratio on.TheAllies sclaimedthe eagreement included fthegoldac cquired.The debateover rtheDutchg goldcontinue edonintoth he1950s.Fu urthernegoti iationsof allof theD Dutchgoldw werefruitless s.Ultimately,Swedenrest titutedabout6tonsofth hegold(abou ut$6.8millio on)tothe Neth herlandsin1955.[47] O Otherproble seinimplem mentingthea agreement.Sw wedendidn notturnover rthegoldspecifiedin msalsoaros the July J 1946 ag greement by y the March 1948 deadl line. Additio onally, Swede en had expe editiously fulfilled its oblig gationtotheIROinJuly 1947,howev ver,itwasn notasforthco omingwitht thefundsfortheIARA.H However, throu ughoutthep periodSwede enmaintaint thatLaw5w wasinvalid. T Thelatestinv vestigationconductedby yabankappo ointedcomm missionrevea aledSwedenaccepted59 9.7metric tons of gold from m the Nazis. The newly y discovered gold bears the same mark m as the gold stolen from the herlands. The e investigation also foun nd 0.6 tons of o gold of un ndetermined d origin that t could have possibly Neth come e from the victims v of th he concentra ation camps. This additio onal find of gold was missed m entirely by the Safeh havenoperation.Thusfa ar,Swedenh hasonlyreturnedatotal of13.2tons stoBelgium andtheNetherlands. The commission turnedover ritsfindings totheSwed dishgovernm ment.Itwasu unclearwhet therthatcom mmission ld have thep power to rec commend th he restitution n of the gold d. One of the investigator rs says Swed den has a woul mora alobligationtoreturnthe egoldbutno otalegalobli igation.Ther reportwasr releasedin19 997.[48]

Part 6: 6 Portugal, Spain and Nazi Gold

Before turning to t the gold question with w Portugal l, a bit of historical h bac ckground is needed in order to erstandthep problemfully y.Priortoth heoutbreako ofWWII,Por rtugalhadhe eldstrongan ndlongterm mpolitical unde and emotional ti ies to Britain n dating back k to the Ang gloPortuguese Alliance of o the 14th century. c Eng gland was ugalslargesttradingpar rtnerin1938 8.Portugalhadjoinedthe eBritishearl lyinWWIan ndsent50,00 00troops Portu toth hefrontlines. P Portugalsas thNaziGerm manyemerge edduringthe eSpanishCiv vilWar.Durin ng sociationwit thec conflict,thes strongmand dictator,Dr.A AntoniodeO OlivieraSalaz zar,sidedwi ithFrancoan nd Hitle er.Salazarhe elpedGerman nysmugglea armstoFran ncosforcesa anddispatche edPortugues se volun nteerstofightwithFran nco.Indoing gsoSalazarh hopedtoach hievehislong gtermgoal of stabi ilizationanddevelopmen ntofthecountrysecono omy.Bythee endof1938, Germanywa as Portu ugalssecond dlargesttradingpartner r.Salazardid d,however,p protestHitlersinvasion of CatholicPoland. S Salazarscho nneutraldur ringWWIIha adasmuchb basisingeogr raphyasitdid icetoremain inan nyideology. Portugalocc cupiedastra ategicpositio ononthema apofEurope einthatitha ad many yportsalong gitsAtlantic ccoastthatw wouldbehar rderforBrit taintoblocka ade.Howeve er, Dr. An ntonio de Olivier ra Salazar Salaz zars main fear f was an n invasion of o Portugal by b the Nazi i war machi ine. After th he occu upationofFra ance,theWe ehrmachtwa aslessthan2 260milesfro omPortugalsborder.Hi isotherfear wasthat Hitle er and Franc co might form an allian nce, placing Nazi troops s at Portuga als border. Dean Aches son, then Assis stant Secreta ary of State, expressed the t opinion that t Salazar granted favors to Germ many in the trade war after rcomputingt therelatived dangersofGe ermanandA Alliedmilitary ypressureonhim. S Salazar prom mised both Britain B and Germany op pen trade fo or Portugals s valuable do omestic and d colonial resou urces.Byrem mainingneut tral,Portuga alseconomybenefitedtr remendously y.Portugalsb balanceoftradewent from ma$90millio ondeficitin1 1939toa$68millionsur rplusin1942 2.Assetsinp privatebanks snearlydoub bledover thef firstfouryea arsofthewa ar,whilethe assetsoftheBankofPo ortugalmore ethantripled d.BoththeN Nazisand Allieswagedane economicwa arthroughth hreatsandlu ucrativetrade edeals.How wever,Portug galcouldntcutitsties a it was de ependent upon the US fo or imports of o petroleum m, coal, amm monium sulph hate, and with the Allies, as at.InOctobe er,Britainca apitalizedon nitslongstandingrelatio onshipwith Portugalby inducing Po ortugalto whea accep ptsterlingin npaymentfo orgoods.Att thetimeBrita ainsgoldres serveswerelowandSwe edenandSw witzerland were edemanding ggoldforpay yment. P Portugalsec onomicsucc cesshingedo onitsrichwolframored deposits.The eNaziswere totallydepe endenton Portu ugal and Sp pain for its wolfram w sup pplies. Wolfr ram or tungsten has a variety v of uses, includin ng as the filam mentinlight bulbs.Howe ever,itwaso ofparticular valueinpro oducingwar munitions.G Germanysm machining industryusedtun ngstencarbidealmostex xclusively,wh hereastheU USwasstillla argelyusinginferiormoly ybdenum

tipped tools, largely because of the cartel agreement GE held with Krupp concerning carboloy or cemented tungstencarbide.Additionallytungstenwasusefulinarmorpiercingmunitions.BritainandtheUSagreedthat Germanysminimumrequirementsforwolframwere3500tonsperyear. ConsideringthequantitytheNazisrequiredandtheextraordinarymeanstheywenttoinsuresuppliesof theore,theAlliescorrectlysurmisedthatfortheNaziswolframwasavitalresource.Itwasequallyimportant totheAllies,buttheAllieswerenotsolelydependentuponPortugalorSpainandcouldobtainwolframfrom othersources.Thus,oneoftheAlliedgoalswastodepriveNaziGermanyofasmuchwolframoreaspossible.In thisend,theAlliesboughtasmuchwolframaspossiblefromPortugal.Thecompetitionfortheorewasintense andby1943,toPortugalsbenefit,thepriceoforehadincreased775percentoverprewarrates.Production alsosoaredfrom2,419metrictonsin1938to6500tonsin1942. Tomaintainitsneutrality,Portugalsetupastrictexportquotasystemin1942.Thesystemallowedeach sidetoexportorefromtheirownminesandafixedpercentageoftheoutputfromindependentmines.England ownedthelargestmine,whileGermanyownedtwomidsizeconcernsandseveralsmallermines.Theoutputof PortugalssecondlargestminewasownedbyFranceandtheoutputwastiedupinlegationthroughout1941. In January 1942, Portugal concluded a secret trade pact with Germany. The pact allowed the Nazis export licensesforupto2800tonsofwolfram.InturnGermanywastosupplyPortugalwithcoal,steel,andfertilizer, which Portugal needed and which the Allies could not supply. In 1943, the Allies tried to negotiate a new wolframagreement.Portugalaskedforpricereductionsinammoniumsulphate,petroleumproductsandother materialsfromtheAllies.TheAlliesrefusedanypricereductionsandPortugalrefusedtoincreasetheAllies exportlicenses.Atthesametime,PortugalcompletedanewagreementwithNaziGermany. ParallelwiththewolframnegotiationswasthenegotiationstoacquireairbasesintheAzoresislands.The islands would be able to provide a critical base for antisubmarine warfare as the battle in the Atlantic was reachingapeak.TheAllieshadfailedtotaketheAzoresbyforce,fearingGermanywouldinvadePortugalasa reprisal. On August 17, 1943, Britain concluded an agreement with Portugal to use the islands starting in OctoberafterinvokingtheoldAngloPortugueseAlliance.Inlate1943,Portugalinterpretedtheagreementas toincludetheUSairforceaswell.[49] ByApril1944,theUSdecidedtouseeconomicsanctionstoinducePortugaltocutofftheNazissupplyof wolfram.PortugalwasdependentupontheUSforpetroleumandotherproducts.OnJune5,1944,theAllies pressed Portugal to cease wolfram shipments to Germany. The Germans immediately began to cloak their mininginterestsinPortugalbysellingthemandbuyingupotherbusinesses.ByJune1946,theAlliesestimated thattheNazishadcloakedabout$2milliondollarsinhotels,cinemas,etc.AtthesametimeaGermanUboat seizedaPortuguesevessel,increasingthebuildingantiGermansentimentinsidePortugal.TheUSalsobegan negotiationstoconstructanairbaseintheAzores.Constructionwasdelayeduntilanagreementwasreached onawiderangeofsuppliesandservices.OnNovember28,1944,theagreementwassigned.Additionallythe USagreedtoPortugueseparticipationinthecampaigntoliberateTimorfromtheJapanese. OnMay14,1945,Portugalpassedlaw34,600,freezingallGermanassetsinPortugal,creatingalicensing system for unblocking these assets, providing for a census of these assets, prohibiting the trading of foreign currencynotes,andestablishingapenaltyregimetoenforcetheseprovisions.OnMay23,Portugalextended thelawtoincludeallPortuguesecolonies.IncludedintheseassetsweretheGermangovernmentbuildings.On May 6, at the request of the Allies, Portugal seized all German government buildings. Included in the seizure was5,000goldsovereignsfoundintheGermanLegationinLisbon. WhilethePortugueselawgavetheappearanceofcooperation,theStateDepartmentfeareditcontainedtoo many loopholes. For one, the census excluded the Allies from participation. The law also allowed for the transfer of blocked assets to individuals for their subsistence and the normal exercise of commercial and industrialactivity.InareportissuedonaJune19,1946,theDivisionofEconomicSecurityControlsconcluded thatGermanfirmscontinuedtooperatewithoutanyserioushandicapsandmuchofGermanysassetshadbeen dissipated. Additionally the Portuguese census had failed to uncover any holdings the Allies had not already identified. OnSeptember3,1946,negotiationsbetweenPortugalandtheAlliesbeganonhowtoassess,liquidate,and distribute German assets. Seymour Rubin reported to the American Ambassador to Portugal, John C. Wiley, whilethetalkswerefriendly,seriousdisagreementseparatedthesides.Thenegotiationswerestalledonfour points: defining what German assets would qualify for liquidation, determining how much the Portuguese could claim for wartime losses against Germany, deciding what role each side would play in overseeing liquidationanddecidinghowmuchgold,ifany,PortugalwouldhavetorelinquishtotheAllies.[47]

NoneoftheseissueswasresolvedintheLisbontalksof19461947.Portugaltookafirmstandin1945that it was not their responsibility to return the gold that they had exchanged with Germany during the war for tangible assets. Portugal maintained this stand going so far as to claim that no gold was ever shipped from GermanytoPortugalbetweentheyearsof1938and1945. Allied intelligence concluded Portugal had received $143.8 million of gold from the Swiss National Bank, abouthalfoftheincreaseinPortugalsgoldreservesreportedearlierinthischapter.Ofthisamount,theAllies were certain that $22.6 million was from gold looted from Belgium and of the remaining portion, 72% was lootedbytheNazis.AtthetalkstheAlliesproposedthatPortugalturnover$50.5million.TheAlliescontended thatthisamountofgoldwasobtainedafter1942,whenitwascleartoeveryonethattheGermangoldreserves were expanded by the looting of Europe. Portugal claimed it was not aware of such looting. Later in the negotiations Portugal contended that all the gold they obtained had been in good faith and was not looted. ThroughoutthelongperiodofnegotiationswithPortugalstretchingintothe1950s,Portugalwouldonlyagree toreturn$4.4million. Evidence that has surfaced recently shows that the Portuguese claims were at best disingenuous. In a confidentialreportdiscoveredrecently,VictorGautier,ahighrankingSwitzerlandNationalBankofficial,inhis meetingwithAlbinoGarblePeso,secretarygeneraloftheBankdePortugal,reportedthatPortugalwouldnot accept gold from the Nazis. He noted the reason probably extended from political reasons and the need for legal caution. He further noted that the Portuguese objections would evaporate if the money were to pass throughour handsandtheneedtoexplorethat option.Thesestatementsandothers withinGautiersreport makeitclearthatthePortuguesewantedtheNazigoldandacleanslatefromtheSwissmoneylaunders.[50] Initially Portugal used the Bank of International Settlements and Yugoslav National Bank in Basel to launder theNazigold. However,startingin1941withtheNaziinvasionofYugoslavia,Portugalwasforcedtolookforotherways to launder the gold. Also, on January 8, 1942, Montagu C. Norman, director of the Bank of England, notified Thomas McKittrick, the American director of the Bank of International Settlements, that it would no longer recognizeshipments ofgoldfromtheInternationalBanktoPortugalasvalid.Portugaltheninsistedthatthe Reichsbank sell its gold at the daily rate to the Swiss National bank for francs. The francs would then be depositedbytheReichsbankintotheBancodePortugalaccountwiththeSwissbank.TheBancodePortugal wouldthen usethesefrancstopurchasethe goldfromtheSwissNationalBank.Additionallythe Portuguese usedthreeaccountsintheSwissbank.Oneaccountwasusedto depositgoldtransferredinpaymentforthe purchase of escudos by the SNB from the Banco de Portugal. The second account was used for gold that the Banco de Portugal financed with the Swiss francs. The last account closed the circle by transferring gold on ordersfromBerlintotheBancodePortugalaccountinZurich.[50] BesidestheBancodePortigal,theBancoEspiritoSantoplayedasignificantroleinobtainingwolframfor the Nazis. A FEA report dated October 1945, charged the bank was the German financial agent for wolfram operations.AftertheAllieshadcompelledthebanktoforgoitsNazities,theNazistransferredtheiraccountsto theBancoLisboaeAcores.AdditionallytherewasasignificantamountofsmugglingofgoldintoPortugal. GermanCommercialAttacheinMadridadmittedtosmugglingalmost$1millioninEnglishgoldsovereigns fromBerlintotheGermanembassyinLisbon.Thecoinshadbeensentindiplomaticpouchesduring1943and 1944. Another report indicated that $360,000 of gold was flown to Portugal in June and July of 1944 and depositedintheBankofPortugalunderthenameoftheambassador.Thebankdirectoradmittedseveralother dignitarieshadspecialaccounts,includingthebrotherofFranco. While the Portuguese reached an early agreement with the Allies on German property, the issue of gold stalledthetalks.MoreoverPortugaltiedthepropertyagreementtothegoldissueandrefusedtoliquidatethe property until the gold issue was settled. This delaying action only served to erode the value of the Nazi propertyseized.Talkscontinuedoffandon,sometimesonaformalbasisatothertimesinformally.Asrecently declassifieddocumentsshow,theAmericannegotiatorswereawareofanOSSmemodatedFebruary7,1946 statingthatPortugalhadreceived124tonsofNazigold.Nevertheless,Alliednegotiatorswereonlyseekinga returnof44tonsofgold.Theentirenegotiationsfromtheendofthewaruntil1953werecomplicatedbythe Azores.Duringthewar,PortugalhadgrantedtheUSpermissiontobuildanairbaseintheAzoresforusefor the duration of the war and five years after the war. By July 1947, the State Department was urging the negotiators to ease on the hard line approach and seek a compromise with Portugal on the gold issue. Foremostin thechange ofstance attheState DepartmentwastheAzoresairbase negotiations.In 1945,the Joint Chiefs had deemed the Azores base as one of nine essential strategic bases needed to maintain to the

securityoftheUnitedStates.Thenegotiationsongoldwerebrokenoffin1947untiltheAzoresnegotiations werecompleted. In1948,RobertLovettwrotetheTreasurySecretarythatoverridingpoliticalandstrategicconsiderations of our foreign policy make it essential that the Portugal assets in the US be unblocked. A week later the TreasuryDepartmentweakenedthelicensingprocedures,effectively unblockingthe assets.Withthataction, theUSlostallleverageoverPortugal.OnJuly17,1951,theStateDepartmentwiredtheembassyinLisbonto settle on the Portuguese terms. The decision was based on overriding importance of politicomilitary objectives.PortugalhadbecomeafullmemberofNATO.Alsoatstakewasalongtermleaseforanairbasein theAzores,thelastagreementhadonlyextendedtheleaseforfiveyears.Basedonthepriorityofthecoldwar objectives and with consultation of British authorities, the State Department recommended settling the gold issuewithPortugalforamere$4.4million. The Treasury Department would only agree to the terms if the Treasury received a letter signed at the AssistantSecretarylevel,indicatingthattherewerepoliticalconsiderationswhichwarrantedasettlementand that any agreement would not result in claims against the United States. Acting Assistant Secretary for EuropeanAffairsJamesBonbrightsignedthelettertotheTreasury.[49]AgreementwithPortugalwasfinally reached on June 24, 1953. However, Portugal hinged the agreement on the condition that it reached an agreement with West Germany. It would take until June 1958 before Portugal would reach agreement with Germany.Itwasntuntil1959thatPortugalrestitutedthe$4.4millioningold. Whilemanyoftheneutralsleanedtowardfascism,nonewerefullyfascistlikeFrancos Spain. Both Germany and Italy had provided support for Franco during the Spanish Civil War.Infact,Francodispatched40,000volunteerstoGermanyin1941.KnownastheBlue Division,theyservedontheRussianfrontuntil1943.AlthoughFrancodeclaredneutrality assoonaswarbrokeoutinEurope,SpainhoveredonthebrinkofjoiningtheAxispowers through 1940 and 1941. Spanish belligerency was premised on an early German victory over Britain and Germanys agreement to allow Spain to expand territorially into French Generalissimo Morocco,AfricaandperhapsevenEurope. Francisco Franco TheNazisrecognizedthestrategiclocationofSpainearlyon.Asearlyasmid1940the NazishadcomprehensiveplanstoinvadeGibraltar.Theplans,codenamedOperationFelix,originallycalledfor amid1941operation.TheplancalledfortwocorpstomoveacrossSpain,withFrancospermission,byroads. SpainsrailsystemwasadifferentgaugethattherestofEurope,forcingtheNazistorelyontheroadsystem. Onceinposition,GibraltarwouldbeattackedfromboththelandandairindeadlyNaziefficiency.Theplans alsoincludedtwoadditionaldivisionstoattackMoroccoonceoperationFelixwassuccessful. Surely General Franco, like the Nazis, recognized the strategic siting of Gibraltar. With the Pillars of HerculesguardingtheentrancetotheMediterraneanSea,aNaziseizureofGibraltarwouldaddweeksforoil tankerstoreachBritainfromtheMideastandgivetheNazisstrategiccontroloftheMediterranean.Likewise, Franco certainly must have been aware of the precarious situation Britain was in during 1940. England was barely able to defend itself as the empire was under attack worldwide; it was hardly in the position of defendinganotherpartofitsempire.TheattackevenincludedafollowupattackonMorocco,acountrythat Francohadeyesfor.Nevertheless,theNazisfailedtogetFrancosapproval.Whetherthefailurewasduetothe interjection of the American Ambassador or poor diplomacy on the part of the Nazis, it has to be one of the biggestdiplomaticandstrategicblunderstheNazismade. After 1941 passed there were similar plans to attack Gibraltar. However, once the Nazis invaded Russia, anysuchplanswereimpractical,astheNazisdidnthavethemanpowerorequipmenttoexpendinopeninga new battlefront. One of the biggest ties between Spain and Nazi Germany was the debt incurred by Spain duringtheCivilWar.SpainwasindebttoGermanyformorethan$212millionforsuppliesofwarmaterialand otheritemsfortheforcesofGeneralFranco. BothBritainandtheUSengagedinacontinuingefforttokeepSpainneutralduringtheearly1940s.Spain wassuppliedwithgrainandgasoline.MuchifnotmostofthepetroleumproductstheUSsuppliedSpainwith were sent on to the Nazis. Franco played the US for fools. He gladly accepted the gasoline, skimmed a small portionforhisneedsandshippedtheresttotheNazis.Spainsneutralityhingedonthethreatofaninvasion. After1941,SpaindriftedclosertotheAllies.FrancodidprovideahavenforJewsthatcouldescapeoverthe Pyrenees. By 1943, both American and Spanish concern about an invasion vanished. Accompanied with the reducedthreatfromtheNazisin1943,Spainshiftedtoaclearerneutrality.

InJuly1943,theAmericanAmbassadormetwithFrancoandexplainedthattherewerethreemajoraspects ofSpanishpolicythatneededtoberevisedifSpainweretodemonstraterealneutrality.One,Spainwouldhave toannounceitsneutralityunequivocally.Two,Falangecontrolledorgansofgovernmentwouldhavetoadopt thepolicyofimpartialityalreadyfollowedbytheForeignMinistry.FinallytheBlueDivisionwouldhavetobe recalled. Franco responded that he could not yet fully renounce nonbelligerency, but could begin shifting towards neutrality. A 1947 State Department memo concluded that Franco had acted in a most nonneutral fashionforthefirstfouryearsofthewar,providingNaziGermanywithsignificantamountsofstrategicgoods, aswellasmilitaryandintelligencesupport.Accordingtointerceptedmessages,keyaspectsofthisintelligence supportwerethespynetworkssetupintheUnitedStatesandBritainandoperatedbytheSpanishEmbassies in Washington and London. Operation of this spy network seems to have begun in 1942; the decrypted messageswereavailabletoUSleaders. BesidesthedebttyingSpaintotheNazis,Spain,likePortugal,hadconsiderablevitalmineralsneededby the Nazis. Sociedad Financiera Industrial (SOFINDUS) was formed in 1936 under the name Rowak. It was a large commercial conglomerate that would act as the centerpiece of SpanishGerman trade. Through special bilateralagreementsin1937and1939grantingGermanenterprisesfavoredeconomictreatment,SOFINDUS acquired a commercial empire by the time war broke out. In a secret protocol to a 1939 GermanSpanish agreement,SpainpromisedtoserveasaconduitofsuppliesfromSouthAmerica.InMay1940,Spainsigneda threeyear agreement with Italy promising it vital supplies. By 1942, the trade between Germany and Spain hadshiftedfrommostlyfoodstuffstomineralsessentialforwarfare.Spainhadrichdepositsofpyrite,ahigh gradeironore.Seventypercentofthemineraltradebetweenthetwocountrieswasduetopyrite.TheNazis alsoacquiredzinc,lead,mercury,fluorspar,celestite,mica,andamlygonitefromSpain.However,wolframwas themostvital,asSpainwasoneoftwosuppliersofthisoretoGermany.Spanishflaggedshipswereusedto smuggle goodsfromSouthAmericatotheNazis.The Alliedblockagewas effectivein eliminating bulkitems, but small items such as industrial diamonds or platinum, which serves as a catalyst in the production of nitratesandsulfuricacid,madeupthebulkofthesmugglingtrade. AlliedtradewithSpainhadthreemainobjectives.Thefirstobjectivewastoobtainneededgoodsthatwere notreadilyavailableelsewhere.Secondly,bypurchasingvitalmaterialsfromSpain,theAlliescoulddenythe Nazisasourceforthesematerials.Finally,byconductingtradeinmaterialsneededbytheSpanisheconomy,to lessentheinfluenceofGermanyonSpain.EffortstoachievethispolicybeganinMarch1940byBritainwhenit signedasixmonthagreementtoprovideSpainwithcertainmaterialsitneeded,suchaspetroleumproducts and fertilizer in return for iron ore, other minerals and citrus fruit. The agreement was renewed every six months throughout the war. In May 1943, due to the smuggling of materials into Spain for the Nazis, the US startedaprogramtobuyupthesourcesofthesematerialsinSouthAmerica. However,therealcompetitionintradewithSpainwasforwolframore.UnlikePortugal,whichhadaquota system,Spainreliedonanopenmarketforwolfram.TheopenorfreemarketprovidedanedgetotheAllies withtheirbetteraccesstohardcurrency.By1941,GermanyhaddevelopedmostofSpainswolframminesand controlledthelargestproducerthroughSOFINDUS.In1941,theNazisacquiredalmostallofthewolframore produced.Englandhadonlymanagedtopurchase32tons.Startingearlyin1942,EnglandandtheUSstarteda unifiedprogramtobuyupasmuchoftheoreaspossible.Theprogramcausedmineoutputtonearlydouble productionfromthepreviousyear.Productionhadincreasedtonearly2,000tonsandthepricehadrisenfrom $75atonto$16,800.InJune,Spainsetaminimumpriceof$16,380perton,whichincludeda$4,546export tax. The Allies, in an effort to better compete with the Nazis, set up their own dummy corporate front to purchasetheoreandin1942purchasedroughlyhalfoftheore. InDecember1942,underpressurefromtheNazis,SpainsignedanewtradeagreementwithGermanywith more explicit quotas. The agreement soon fell apart with both sides blaming the other for the failure. In February 1943, Spain signed a secret agreement with Germany to replace the failed agreement. In the agreement, Germany agreed to provide Spain with armaments at cost. However, during the negotiations the Nazis had at first demanded a 400 percent markup on the weapons. The Nazis, desperate for wolfram and Spanishpesetas,hadtorelenttoSpainsdemandofweaponsforcost.Afterthewar,theNazinegotiatornoted thatthetalkswerestrainedanddifficult.InAugust1942,SpainhadreachedagreementwiththeNazistopay backitsdebtfromtheCivilWarinfourinstallmentsandinwhichtheNaziswouldusethemoneytopurchase wolfram.During1943,Germanypurchasedroughly35percentofthetotalproductionofwolfram.Totalmine productionofwolframinSpainwasroughly4to5timestheproductionof1940.

In January 1944, after the British Ambassador, Sir Samuel Hoare, met with Franco in an unsuccessful attempttopersuadeSpaintosuspendwolframsalestotheNazis;theAlliesimposedanoilembargoonSpain. On May 2, Spain agreed to limit the export of wolfram to Germany to 580 tons300 tons had already been delivered.TheagreementcutGermanexportstoroughlyhalfofthepreviousyear.However,duetosmuggling efforts,captureddocumentsshowthatGermanymanagedtopurchaseatotalof865.6tons.Spainsexportsof wolframtoGermanyendedinAugust1944,whentheborderwasclosed.[51] Operation Safehaven in Spain began in the spring of 1944. Samuel Klaus of the FEA led the team. Klaus reportedthatSpainwasthemostdiscouragingaswellasthemostdifficultofalltheneutrals.Heindicatedthat theAmericanAmbassador,CarltonHayes,wasunwillingtocooperate.KlausnotedtheNaziscouldeasilycloak their businesses in Spain, due to corruption of officials. He also indicated that Tangiers was being used as a conduittomovetheirassetsfromSpainandPortugaltoArgentina.Thereadershouldnotethatthisconfirms theBormannprogramofflightcapital. In the fall of 1944, the Allies made their first request for Spain to cease all gold transactions involving enemy interests. Spain failed to reply. In January 1945, the Treasury and the FEA wanted to link Safehaven with upcoming talks with Spain on the expired trade agreement, noting that the Allies had cut off all land routes between Spain and Germany. Britain was adamantly opposed to such linkage, being more dependent uponSpanishtrade.ItwasntuntilMay5,1945beforeSpainissuedadecreetofreezeandimmobilizeallassets withAxisinterests.AftertheNazisurrenderonMay7,SpainagreedtoanAngloAmericanTrusteeshiptotake controlofGermanStateandquasiofficialproperties.Problemswiththetrusteeagreementaroseimmediately. ByJuly1947,thetrusteeshiphadtakencontrolofonly$25.3millionoutofanestimated$95millionofGerman assetsinSpain. Information of Spains gold transactions came from Allied intelligence, captured German Reichsbank records, statements by Swiss banking officials and records seized from the offices of the quasiofficial corporationsSOFINDUSandTransportesMarion.ThebestestimatewasthatSpainhadreceived$138.2million ofgold,eitherdirectlyfromGermanyorindirectlythroughSwitzerland.Additionally,publishedfiguresshowed thatSpainsgoldholdingsincreasedfrom$42millionin1941to$110millionin1945. Negotiations with Spain started in November 1946 in Madrid. Seymour Rubin was once again one of the leadnegotiators.Thenegotiationsdraggedonthrough1947into1948.Finalagreementwasreachedonboth NaziassetsandthegoldissueonMay3,1948.Spainagreedtorepatriate$114,329ingold,muchofwhichwas believed to have came from the Netherlands. However, the Allies had to issue a statement that Spain was unawarethatthegoldhadbeenlootedbytheNazisasspecifiedintheagreement. The reader should note there were two additional factors at work here that sped the negotiations to an earlyagreement,comparedwithPortugal.TheStateDepartmenthaditsusualrequestforaneasysettlementto ease the way to acquire military bases inside Spain. However, the more critical factor was that Spain was regarded as a pariah following the war. The Allies had agreed at Potsdam to exclude Spain from UN membershipduetoitsfascistbackground.InDecember1945,theAmericanAmbassador,NormanArmourleft Madrid. No ambassador was appointed until 1951 to fill the empty position. Other nations withdrew their ambassadorsaswell.InMay1946,aUNsubcommitteereportpresentedevidenceofSpainsfascistnature,its proNazi activities and postwar support and sanctuary to Nazi war criminals and political repression of opponents. In effect, Spain was isolated in an unfriendly world. It would take until 1955 before Spain was admittedtotheUN.

Part 7: Turkey, Argentina and Nazi Gold

Likeotherneutralcountries,Turkey wasboundtotheNazisthroughtrade,butthats whereanysimilarities end.TurkeydescendedfromtheOttomanEmpireandwasprimarilyaMoslemnation.DuringtheFirstWorld War, Turkey had aligned itself with Germany. Immediately following WWI, Turkey conducted a program of exterminatingtheArmenians,achargethatTurkeystillvigorouslydenies.Moreover,TurkeybeganWIIbound toBritainandFrancebythemilitaryallianceofOctober1939;declaredneutralityinJune1940afterthefallof France; and ended the war allied with the Allies. Much of Turkeys proclaimed neutrality was a result of TurkishfearsofaNaziinvasion.Inthespringof1941,afterthefalloftheBalkanstotheNazis,Turkeysigneda TreatyofFriendshipinJune1941withGermany. Throughoutthewar,Turkeywalkedatightrope,balancingtheneedsandexpectationsoftheNazisagainst those of the Allies. While Istanbul was a center of spying and intrigue during the war, Turkey took no overt actionagainsttheNazisandinturntheNazisneverviolatedTurkeysborders.InOctober1941,Turkeysigned

animportanttradeagreementwithGermany.Inexchangeforrawmaterial,especiallychromiteore,Germany would supply Turkey with war material and other finished goods. At the same time, Turkey maintained friendlyrelationswiththeUSandBritain,whichsuppliedTurkeywithmodernwarequipmentinexchangefor chromiteore.TurkeyschromiteorewascriticalfortheNazis.Turkeywastheirsolesourceforchrome,avital element in steel making. Albert Speer stated that Turkeys chromite ore was so vital to the Nazis that war productionwouldcometoacompletestop10monthsafterthesupplywascutoff.Theorewasshippedfrom Turkeybyrailthroughsomeofthemostruggedcountryintheworld.Towardstheendofthewar,theAllies targetedbridgesalongthemainraillineusedtostopthechromiteshipments. In 1941, Turkey was added to the lendlease nations available to receive equipment. In January 1943, during the Casablanca Conference, FDR considered asking Turkey to enter the war. In November 1943, all three of the big leaders, Churchill, Roosevelt, and Stalin, called for Turkeys entry into the war. In February 1944,afterTurkeymadeitsentryintothewarcontingentuponmassivemilitaryassistanceandasignificant Alliedmilitarypresence,BritainandtheUSstoppeditsaidprogram.By1943,theAlliesforesawnothreatfrom aNaziinvasion.ItwasntuntilApril1944beforeTurkeyceasedthechromiteexportstoGermanyandthenonly afterbeingthreatenedwiththesameeconomicsanctionsthattheotherneutralcountrieswereunder.Laterin August, Turkey suspended all diplomatic relations with Germany. Late in February 1945, on the eve of establishingtheUnitedNations,TurkeydeclaredwaronGermany. TurkeywasnotamajorreceiverofgoldfromtheNazis.Infact,thebestestimateoftheUSexpertswasin therangeof$15milliondollars,mostofwhichisbelievedtohavebeenlootedfromBelgium.Inaddition,two private German banks, the Deutsche Bank and the Dresdner Bank, sold gold from the Melmer account in exchangeforforeigncurrency. Allied efforts to recover gold from Turkey were never pursued with any vigor. Turkeys geographical location,controllingaccesstotheBlackSeaanditsborderwiththeSovietUnion,madeTurkeyacornerstone forUSstrategicinterestsinthecomingColdWar.In1946,formaltalkswereheldconsideringthegoldreceived fromtheNazisaswellasGermanassetsinTurkey.TheAlliesestimatedthatGermanassetstotaled$51million. InMarch1947,theTrumanDoctrineincludedTurkeyalongwithGreece.InJuly,theUSsigneda$150million trade agreement with Turkey. The trade agreement dealt a deathblow to any further negotiations on restitution.[52]Turkeyneverturnedoveranygold. Throughoutthe1930s,Argentinawasruledbyasuccessionofmilitarydictatorsandfraudulentlyelected presidents.Theseregimeswereweakenedbytheirinternalcorruptionandsoughttolegitimizethemselvesby reviving an ancient Hispanic alliance of the Cross and the Sword. The ties with Franco of race, religion and languagewereemphasized.SomeevencalledforundoingArgentinaswarofindependencefromSpainandfor rulebyaViceroy.ThemilitaryleadersandtheCatholicChurch,urgedonbytheVatican,dreamedofcreatinga HispanicCatholicnationthatcouldcounterbalancetheUSintheWesternHemisphere.Bythetimewarbroke out, Argentina was divided into two camps: one proNazi, the other proAllied. However, Argentinas foreign policywascontrolledbyVaticanconnectedoperativescallingforatriangleofpeacebetweenArgentina,Spain andtheVatican.[53] At the onset of the war in Europe, Argentinas weak president, Ramon Castillo, announcedapolicyofprudentneutrality.DespitehavingagreedtotheHavanaConference of1940,inwhichanattackonanycountryoftheWesternHemispherewouldbeconsidered an act of aggression on all American states, Argentina adhered to its neutrality policy. Argentinaweaklydefendeditsneutralitypolicybyclaimingthatanyactionundertakenin responsetoanattackwasamatterforeachstatesindividualinterpretation.Argentinahad remainedneutralduringWWIandconsequentlyitseconomybenefitedhandsomely.There Ramon S. Castillo washopeagainthatapolicyofneutralitywouldrevivetheeconomyfromthedevastating depressionofthe1930s. InJanuary1942,ArgentinaagreedtothetermsoftheRioConferencetoseverallcommercialandfinancial relations with the Axis powers. In June 1942, Argentina agreed to the Final Act of the InterAmerican ConferenceonEconomicandFinancialControls,obligatingallstatestoendallcommercialintercourse,direct or indirect, with the Axis. Argentina ignored the terms and continued with business as usual with the Nazis. Moreover, during 1942 Juan Goyeneche, a confidential agent of Peron and Adrian Escobar, the Argentine ambassadortoSpain,traveledthroughwartornEuropemeetingwithNaziandVaticanofficials.Goyeeneche collaboratedextensivelywiththeForeignIntelligenceBranchoftheSS.Escobarandhisconsul,AquilinoLopez, were collaborating with Himmlers secret service by crossing into Vichy France and reporting details of

Spanishand Allieddiplom S mats.Aftere extensiveme eetingswith theVatican secretaryof state, C Cardinal Luig gi Magione, an a agreemen nt was reach hed in which h, once peace e was established, A Argentina wo ould apply its i immigrat tion laws gen nerously. Th he reader sh hould take special n note here; this meetin ng would later becom me paramount in impo ortance with h the e establishmen nt of the rat tlines. On Oc ctober 10 th he Pope rece eived Escobar and welc comed A Argentinas v view that it was w appropr riate for the Vatican to participate p in the peace talks. F Following the Vatican meeting m in lat te October, Goyeneche traveled t to Germany G and d met w with Ribbent trop seeking g Nazi support for the na ationalist can ndidate in th he 1943 elec ctions. T Thisfacadeo ofneutrality wouldbem maintainedun ntil1943and dthecolonelsrevolution nthat e eventuallybr roughtPeron ntopower. Once the e colonels we ere in powe er, they first sought arm ms from Germ many in case war Juan Peron b broke ought between Ar rgentina and Brazil. By September S 1943, the colo onels gave up u the ideaofsmug gglingarmsintoArgentin nafromGerm manyandinsteadsought tanalliance withNaziG Germany.The e g group of colonels dispa atched Osma ar Hellmuth h and Carlos s Velez to Spain to ne egotiate with h the Nazis s. U Unfortunatel y, US Magic intercepts had h detected d the upcom ming mission from transm missions bet tween the SS S a agent in Arg gentina, a Ca aptain Becke er, and Schel llenberg and d had the Br ritish seize Hellmuth wh hen the ship p d dockedinTri inidad. The seizu ure of Hellm muth failed to o deter furth her plots. Pe eron and Bec cker continu ued to plot overthrowing o g n neighboring governmentstosetupaproNaziblo ockinSouthAmerica.Pe eronwrotein nasecretma anifestofthe e c colonelsasfo ollows: Forming gallianceswillbethefirs ststep.Weh haveParagua ay;wehaveB BoliviaandC Chile.WithA Argentina, Paraguay y,Boliviaand dChile,itwil llbeeasytop pressureUru uguay.Then thefiveunit tednationsw willeasily drawinB Brazilbecauseofitstype eofgovernm mentandits largenucleu usofGerman ns.WithBra azilfallen, theAmer ricancontine entwillbeou urs.[54] O December 20, 1943, a On a military co oup in Urugu uay installed d General Gualberto Villa arrod as pres sident. Peron n a andBeckerh hadplannedt thecoup.Am mericancounterintelligen ncewasawar reofthecoup pthroughMa agicdecrypts o ofBeckerstr ransmissions sfromArgen ntina.Theco oup,however r,wasafailu urefortheNazis.Usingm materialfrom m M Magic decryp pts, the US tw wisted Argen ntinas arm. Facing the US U threat to release the decrypts an nd Hellmuths s a admissions f from interrogations impl licating Arge entinas role e in the coup p, Argentina was forced to break of ff d diplomaticre elationswith htheNazisin nJanuary1944.However r,Argentina maintained itsneutrality yanddidnot d declarewara againstGerm manyuntilam monthbefore eHitlerssuic cide. Duringth hefinalyearofthewar, Argentinaw wasaprime destinationf formanyof theassetsth hatBormann n w spiriting was g out of Germany for a rebirth of Third T Reich. Following th he war, Argentina was also a prime e d destination f Nazi wa for ar criminals. Even war criminals th hat escaped to other So outh American countries s g generally first entered the t continen nt through Argentina. A W While other South Amer rican countri ies generally y s supported th he US policies during th he war, there was no cooperation c forthcoming g from Arge entina. Other c countries adhered to the e Proclaimed d List and to ook steps to o eliminate any a smuggling efforts. The T Treasury y D Department urged harsh her actions than what the t State De epartment was w willing to t implemen nt. The State e D Department was hamper red by a fea ar that a har rsher policy y towards Ar rgentina wou uld alienate other South h A American cou untries and a difference of opinion with w the British. During both world wars Englan nd depended d u uponArgenti inaforbeef.However,as searlyas194 42,Argentina asneutrality ypolicymad deitaleading gfocusofthe e T TreasuryDep partmentand dtheBoardo ofEconomicWarfare. The large e number of f German com mpanies in Argentina A all lowed the pr rofits to be turned t over to the Nazis s e espionage or rganizations s in return for Reichsm mark credits s in German ny. The Tre easury Depa artment also o s suspected th hat Argentin na made sub bstantial amounts of for reign exchan nge available to the Ax xis countries s, a accepted the entry of lar rge amounts of looted cu urrency and securities in nto its marke ets, and allowed German n f firms to cloa ak their asse ets. A FBI re eport release ed in June 1943 1 describ bed how Bue enos Aires served as the e W Western Hem misphere ou utlet for US bank b notes that had be een looted in n occupied Europe E and entered into o c commercialt trafficinSwit tzerland.[55] ] Througho out the war, Argentina served s as a hub h for Nazi smuggling operations. o B Bulk items of o trade were e e easilystoppe edbytheblockade.Howe ever,critical itemsofsma allsizesuch asindustria aldiamondsa andplatinum m w were especia ally needed by German ny and could be smugg gled through h the blockade on a re egular basis s. Immediately after Pearl Harbor, Mor rgenthau wa anted to free eze Argentina as assets. In n May 1942, Morgenthau u

presentedevidencetoPresidentRooseveltthatnumerousArgentinecompanieswerecloakingGermanfundsin the United States and that Argentina had recently sent over $1,000 to the United States in looted currency. However,RooseveltcontinuedthepolicysetforthbytheStateDepartment.Afterrepeatedrequestsfromthe Treasury Department, the State Department agreed to an ad hoc blocking of selected Argentine accounts in October.Over150individualsandfirmsinArgentinawereaddedtotheBlackList. SafehavennegotiationswithArgentinastartedin1944andwererestrainedbythedistressedrelations.In February1944,ArgentinePresidentRamirezdelegatedhispowerstoGeneralEdelmiroFarrell.TheUSfailed to recognize the Farrell government and recalled the ambassador. In August and September the State department announced additional sanctions against Argentina due to its failure to comply with the denazificationofArgentina.Inresponse,ArgentinawithdrewfromtheMontevideoCommitteeforthepolitical defense of the continent. The Argentine Central Bank thereafter provided little help to US investigators in locating German assets. After Cordell Hull resigned as secretary of State in November 1944, the incoming secretary,EdwardStettinius,formulatedaneasierpolicytowardsArgentina.NelsonRockefeller,theappointed wartimechiefofSouthAmericanintelligence,alsofavoredeasiertermswithArgentina.Thereadershouldnote thattheRockefellercontrolledbankshadillegallytransferredfundsbetweentheUSandArgentinaduringthe war. OnFebruary7,1945,TreasurySecretaryMorgenthausuggestedtoActingSecretaryofStateJosephC.Grew thataspecialTreasuryrepresentativebesenttoArgentinainordertouncoverandcontrolNaziexternalassets inArgentina.Grewrejectedtherequest,citingpoliticalconsiderations.Inearly1945,aresolutioninsupportof BrettonWoodsResolutionVIwaspassedbytheInterAmericanConferenceonWarandPeaceheldinMexico City. The resolution known as the Act of Chapultepec, however, did not grant control of Nazi assets in Latin American countries to multinational governing bodies, but recognized the right of each of the American Republics, including the United States, to German property within its own respective jurisdiction. Due to its continuing proNazi stance, Argentina was excluded from the meeting. Recognizing its increasing isolation from other nations of the Western Hemisphere forced Argentina to declare war against Germany in the last monthofhostilities. On February 11, 1946, the State Department released the famed Blue Book on Argentina. The book confirmedthattheArgentineGovernmentassertednocontroloverGermanfirmsandthateffortstoseizetheir assets were delayed until those assets could be dispersed elsewhere. The book also confirmed that Nazi Germany transmitted large sums of money to its Embassy in Argentina without any serious obstacles. Some creditthereleaseoftheBlueBookfortheelectionofPeron.OnMay22,1946theSafehaventeamreportedthe total value of German assets at roughly $200 million. The assets included bank balances, real estate, merchandiseandthelike.NocachesofartorgemswerefoundandtheteamconcludedthatArgentinawasnot a major destination of looted treasure. Moreover, the team reported that no records revealed Argentina as a recipientofNazigold. As early as 1942, the US had knowledge of illegal Argentine currency dealings. In April 1942, the US ConsulateinSwitzerlandreportedthatanArgentinediplomatwassmugglingdollarsstolenbytheNazistohis homeland for sale; the proceeds were then remitted back to Switzerland. British cables from 1944 show Argentina conducted vigorous trade with Switzerland and oftentimes the payment was in gold. By 1945, the StateandTreasuryDepartmentshadfoundconclusiveevidenceofextensivetransactionsinvolvingthetransfer of Argentine pesos, Reichsmarks, and Swiss francs from Argentina to Switzerland. In May 1947, Argentina proposedatransferof$170milliontoitsFederalReserveaccount.Concernoverthesourceofthegolddelayed thetransferonlymomentarily.Guyattreportsthatin1973,whenPeronreturnedtopower,400tonsofgold belongingtoPeronwasputupforsaleontheblackmarket.[87]PeronssalewascodenamedBormann1345. WhilethesalewastutoredbytheSpanishgovernment,thetransferagentlabeledthesaleaspoliticalinnature. Despite the massive increase in Argentinas gold reserve and the number of Nazi war criminals that found sanctuaryinArgentina,evenafterfiftyyearsthereisnoproofofArgentinaacceptedgoldfromtheNazis. However,theSafehavenoperationinArgentinawasbadlycompromisedbytheColdWar.OnJune3,1947, PresidentTrumanandArgentineAmbassadorIvanissevichissuedajointannouncementthatthetwocountries wouldrenewconsultationswithotherLatinAmericancountriesaboutcreatingatreatyofmutualassistance.In September,ArgentinajoinedtheUnitedStatesandotherAmericanRepublicsinagreeingtotheInterAmerican Treaty for Reciprocal Assistance, the Rio Pact, for mutual defense against aggression. Bormanns cloaked companiesinArgentina,aswellasanytreasure,wassafeandsecure.Thehemispherehadtobeprotectedfrom

communism. The following chapter will detail the role of the Nazi war criminals in the repression of South Americafollowingthewar. OnApril10,1941,followingtheNaziinvasionofYugoslavia,thesocalledindependentstateofCroatiawas established, headed by Ante Pavelic, a member of the fascist Croat Ustasha political movement. Croatia was declaredaprotectorateofItalyandwassupportedbybothItalyandtheNazis.TheUstashiwerealsoclosely alignedwiththeVatican.OnMay18,1941,ActingSecretaryofStateSummerWellesreaffirmedthattheexiled government of Yugoslavia did not recognize the independent state of Croatia. Shortly afterwards, Croatia sealed the US embassy in Zagreb. Since Croatia only existed as a state during the war and the US never recognizedthestate,thefigurespresentedinthissectionaremuchmorelikelytobesubjecttorevisioninthe future. PostwarreportsindicatethattheUstashatreasuryhadattheirdisposalmorethan$80millionofmostly goldcoins,someofwhichwereplunderedfromthevictimsoftheUstashi.OnMay31,1944,Croatiadeposited $403,000intheSwissNationalBank.OnAugust4,1944,Croatiadepositedanother$1.1millioningold.AnOSS reportinJuly1945concludedthatCroatownedcommercialaccountsinBernetotaledmorethan$93,000.The HistoricalSectionoftheTaskForceoftheSwissFederalDepartmentofForeignAffairsindicatesthattheSwiss NationalBankreturnedall1,338kilogramsofgoldin121ingotsintheaccountofthewartimeCroatianregime totheNationalBankofYugoslaviaonJuly24,1945. While the bank records of deposit are not likely to change much, the amount of gold the Ustashi carried withthemastheyfledtoAustriaasthewarwasreachinganendisverymuchindoubt.Estimatesofthevalue of gold Ante Pavelic had on entering Austria are placed at $56 million. Whatever the value of the loot the Ustashiescapedwith,itiscertainthatmuchofitwasputtouseinestablishingandrunning aratlinejointly with the Vatican. In an October 1946, US intelligence (SSU) reported to the Treasury Department that they believed that the Ustashi had $47 million deposited in the Vatican before it was transferred to Spain and Argentina.Duetothecoldwar,littleeffortwasexpandedinreturningthousandsofwarcriminalsfromItalyto Yugoslavia.TheissueofUstashigoldreceivedevenlessattentionattheconclusionofthewar.

Part 8: Switzerland and Nazi Gold

Ofalltheneutralcountries,nonewasmoreatthatcenterindoingbusinesswiththeNazisthanSwitzerland. GeographicallySwitzerlandwassurroundedbytheThirdReichonceFrancefell.Further,theprecedinglookat other countries has already implicated Switzerland in a pivotal role in trading with the Nazis through Swiss banks. The majority of Americans think of exquisite chocolates, fine timepieces and visions of Heidi chasing goats across alpine meadows when referring to Switzerland. Nonetheless, Switzerland was a much different nationduringthe1940sdespitethatidyllicview. The 1848 constitution established the present form of Swiss government founding three cantons, civil liberties and the parliamentary form of democracy. The franchise was not extended to women until 1971. Switzerlandhasbeenruledfordecadesbyacenterrightcoalitionofparties.DuringWWIIthesepartieswere theChristianConservatives,SocialDemocrats,LiberalsandtheFarmersandArtisansParty.Thesamecoalition rulestoday,althoughsomeofthepartynameshavechanged.SwitzerlandisruledbyasevenmemberFederal Council,themembersofwhichareselectedbyparliamentforrotatingoneyearterms. MuchofSwitzerlandscomplicitywiththeNazishasonlyrecentlycametotheforefrontfromtheeffortsof Presidents Clintons action in appointing Eizenstat in leading a commission into reaching a just settlement withthevictimsoftheHolocaust.WhilethelegendofthefierceSwissneutralityliveson,itismoreofamyth consideringSwisspolicyduringWWIIwasbalancedheavilyinfavoroftheNazis.LikewisethethreatofaNazi invasion of Switzerland has no basis in fact. As early as the 1930s, the Nazis were busy cloaking their corporations and cartel agreements with Swiss fronts and invasion would have compromised all of the hard worktheyexpendedincloakingthesecorporations.Aswehaveseeninthecasesoftheotherneutralcountries, oncetheNazisinvadedRussia,theysimplylackedthemanpowerandequipmenttoopenanyadditionalfronts. Finally,Switzerlandhadnostrategicgeographiclocation,unlikeSpainorTurkey.Itsonlystrategicvaluetothe Naziswasitsinternationalbanksthatcouldbeusedtoobtainhardcurrency. However,Switzerlandwasuniqueincomparisontotheotherneutralcountries,asSwitzerlandwasequally dependent upon German coal. Once France fell, Switzerlands only source for coal for winter heating was Germany. However, Swiss purchases of coal were used for another purpose by the Nazis. Goods shipped to SwitzerlandfromGermanywouldbeunderinvoiced.ThisleftapoolofSwissfrancsondepositinSwissbanks thatcouldthenbeusedtopurchaseforeigncurrency.Nonetheless,SwisstradewiththeNazisextendedbeyond

banking and coal. Swiss manufacturers provided the Nazis with bearings, timers and other manufactured goodsusedintheproductionofwarequipment. The ruling Federal Council with extra wartime dictatorial powers was responsible for setting up the economic collaboration with the Nazis. Despite the everpresent Swiss denials, the Federal Council was responsible for the most shameful act of Swiss neutrality. In August 1938, after the Anschluss, the Federal Councilorderedthebordersclosed.Fearfulofamixofrefugees,includingJews,theFederalCouncilpetitioned theNazigovernmentinBerlintoaffixaJstamponallpassportsforJews.TheNazisinitiallywerenotkeento the idea, as they were still using immigration as a way to free Germany of Jews. The negotiations continued throughoutlatesummerandautumn.EventuallytheSwissthreatenedtorequirevisasforallGermansentering Switzerland.TheNazisthenproposedtheJstamponpassportsasasolution.NowitwasaNaziideainthe eyesoftheFederalCouncil. TheonlyreasontheSwissweresointentonestablishingsuchamarkingonpassportswastomakeiteasier fortheirborderguardstoturnawayJews.DespitethemythofSwitzerlandasarefugeforJewsduringthewar, over30,000Jewishrefugeeswereturnedaway.InAugust1942,theFederalCouncilpassedanadditionallaw tosealthebordertoJewishrefugees,despitevigorouspleasfromsomechurchmenandthepress.Despitethe antiSemitic position the Swiss government adopted during the war, the Swiss people were not antiSemitic and generally opposed to the governments policy. Other than closing the border to Jews, no additional anti Jewishlawswerepassed.TheJewishcommunitywithinSwitzerlandwasdividedintotwocamps,aminority favoringdemonstrationstoallowmoreJewishimmigrationandamajoritythatfavoredapolicyofdontmake trouble.[57] The reader is urged not to judge the Swiss people for the actions of their wartime government, as most SwisswerenotantiSemitic.EveniftheJewishrefugeeswereabletogetpasstheborderguards,Swissofficials woulddemandtoseetheirpassports.IfthepassporthadtheJstamp,theywereforcedbackovertheborder intothehandsoftheNazis.BorderguardGrueningerhadreceivedhisorderin1938nottoallowanyJewsin. However,Grueningerallowed3600Jewsentryandhelpedthemtoaltertheirpassportssotheycouldremain. AlertedbytheNazisofGrueningersactsofhumanity,theSwisssuspendedGrueningerinDecember1938.In January1939,thegovernmentfiledchargesagainsthimforforgingdocuments.In1941,hewasfoundguiltyof insubordinationandsentencedtolosinghisjobanditsretirementandseverancepayandfinedstiffly.Hewas neverabletofindasuitablejobafterwardsanddriftedfromonejobtoanother.Furthermore,hewasdogged byrumorsthathedemandedmoneyandsexualfavorsfromthosehehelped.Thoserumorswereunfounded andvigorouslydeniedbytheformerborderguard.[58] Much of Switzerlands proNazi bias can be attributed to Pilet Golaz, who, after the invasion of France, urgedthenationtoadapttothenewpoliticalrealitiesofEurope.Inotherwords,therewasalotofmoneytobe madedealingwiththeNazis.Swisspolicy,likethatofotherneutrals,dependeduponthefortunesofwarandas theAlliesbegantheirmarchacrossEuropefromtheNormandybeaches,Swisspolicytookaturninfavorofthe Allies.EvenGolazpoliticalfortunessufferedthesamefate,ashewassackedin1944whenthetidehadclearly turnedtowardstheAlliesfavor. SwissgovernmentofficialsknewofboththeeffectsandinitialmethodologyoftheNazigenocidefromthe verybeginning.TheNazishadinvitedSwissarmydoctorstoserveontheeasternfronttotreatwoundedNazi soldiers in Operation Barbarossa. At that stage the killings were carried out by roving bands of the Einsatzgruppen,shooting en massetheJewsthattheyhadroundedup.WhiletheSwissdoctorsdidntobserve thekillingsquadsdirectly,theycertainlysawtheeffectsandreportedbacktotheRedCrossandgovernment officials.A1943NationalBankLegalreportmentionsthedeportationsandpersecutionsofJews. Theonlyareainwhich,theSwissexhibitedanythingclosetotrueneutralitywasintheareaofespionage. Both Nazi and Allied agents were left unmolested and free to come and go in Switzerland. However, once Francefell,therewasnooverlandroutefortheAlliestotraveltoandfromSwitzerland. TheearliestnewsoftheHolocausttoreachthewestcameinatelegramonAugust8,1942fromGerhart Riegner.TheinformantthatprovidedtheinformationwasaLeipzigbusinessman,EduardScholte.Thetextof thetelegramfollows: Received alarming report that in Fuehrers headquarters plan discussed and under consideration accordingtowhichallJewsincountriesoccupiedorcontrolledGermanynumberingthreeandahalfto four million should after deportation and concentration in the east be exterminated at one blow to resolveonceandforalltheJewishquestioninEurope.Actionreportedplannedforautumn;methods under discussion including prussic acid. We transmit information with all necessary reservation as

exactitude cannot be confirmed. Informant stated to have close connections with highest German authoritiesandhisreportsgenerallyreliable.[56] Unfortunately,thisreportwaswidelydisbelievedinthewest,evenbyJews.AllenDulleslabeleditashysterical Jewish propaganda. Rabbi Stephen Wise, one of the recipients of the telegram, released it to the press on November24,1942.Afterthat,everyonewasawareofthesavagenessandhorroroccurringinsidetheThird Reich. Likewise, an article in the June 1943 Financial Times written by Paul Einzig concerning the Allied declarationofJanuary1943senttremorsthroughtheSwissbankingcommunity.Thearticledetailedthatall transfersofpropertyboughtbyaneutralfromtheNaziswouldbedeclaredinvalidandrestorationsought.The bankersconcernwasoverthegoldtransfers.InJuly1943,theSwitzerlandNationalBankCommitteemetto determineiftheyshouldcontinuetoacceptNazigold.ThecommitteetooktheviewthatSwitzerland,havinga goldstandard,wascompelledtoacceptallgold.ThecommitteeagreedtoasktheFederalCouncilforaruling. ThecouncilwasbriefedinOctoberoftheissue,includingthefactthattheAllieshadadvisedtheNationalBank thatsomeofthegoldmightbelooted.InNovember,theCouncilruledthatitwasinagreementwiththebank officials,thusgivingagreenlighttoSwissbankstoacceptfurtherNazigold.[59] Reportno.26904,writtenonJanuary30,1945bytheForeignEconomicAdministration,implicatedboth Credit Suisse and Union Bank in supplying the Nazis with foreign currency. Attached to the memo were 28 intercepts of Credit Suisses and Union Banks communications. Nine of the intercepts involved the financial triangleofGermany,SwitzerlandandPortugalconcerninggoldtransfersasdetailedearlierinthischapter.The attachedmemosshowedthatCreditSuissealonehadmadeavailabletotheNazisatotalof 500,000escudos and200,000kroners.[60] A report by the Allied economic intelligence group entitled Allied Claims Against Swiss for Return of Looted Gold dated February 5, 1946 provides the best estimate of gold looted from the central banks of Europe.Thereportshowsatotalof$648millioninNazigold.Attheoutbreakofthewar,thebestestimateof the Nazi gold reserves was $100 million. The difference of $548 million was looted from the countries of Europe.Thereportestimatesfrombankrecordsthatatotalofbetween$275millionand$282millionwassold to the Swiss National Bank, and in addition, possibly another $20 million to commercial Swiss banks. The reportconcludesthatmuchofthisgold,afterbeinglaunderedbytheSwiss,endedupinPortugalandSpain. Inanotherreport,Safehavenno2969sentbytheAmericansinBernetotheSecretaryofState,thesixpage documentdetailstheextentofNaziassetsinSwitzerland.ThereportstatesthattheNazisownedorcontrolled a total of 358 Swiss economic enterprises. In 263 of these, the Nazis capital invested totaled about $114 million. The enterprises stretched across all areas of economic activity. The report listed 6 in textile manufacture,6intransportationmanufacturing,15insuranceenterprises,67retailandwholesalers,9banks, 15 chemical concerns, 330 holding and financial companies, 11 other machinery manufacturers and seven other types with less than 3 each. In the report, a Swiss banker estimates that the banks held $110 million dollarsinNaziassets.TheamountofGermanassetsinSwitzerlandvariedwidelyasthetablebelowshows. Amount[63] Sourceofestimate TreasuryDepartment $500million StateDepartment $250$500million SwissDelegation $250million PressReports $750million InadditiontheNazishadlargeamountsofgold,currency,gemsandartstoredawayinsafetydepositboxes. The British estimated the value of 53 paintings at $484,000. The report concludes the total value of all the lootedpaintingsat$390to$545million.[61] Cooperation of the Swiss with Allied efforts in recovering gold and ending trade with the Nazis was nonexistentforthemostpart.InresponsetotheUnitedStatesfreezingSwissassetstopreventtheirusebythe Nazis, the Swiss cut off the coal supply to the US embassy in the winter of 1941. The German embassy still receiveditscoalallotment.NegotiationswiththeSwisswerealwaysdifficult.Asthewarprogressed,itbecame cleartoallthattheNazisweredefeated.WhileSwitzerlandsuppliedtheNaziswithmanymanufacturedgoods that took a great deal of skill such as machine tools, it supplied other items including locomotives and even armsandammunition.TwokeySwissexportswereelectricpowerandaluminum. PostwaranalysisoftheblockadebytheBritishindicatedthatintheearlyyearsofthewartheblockade wasineffectualandatnotimeduringthisperioddidtheNazisexperienceashortageofrawitems.Itwasonly themassivebombingcampaignandlargebattlelosesin1944thatfinallyweakenedtheThirdReich.OnJune

22, 1944, Secretary of War Stimson noted that the period of gentle appeasement of neutrals had passed by. Following the DDay invasion of Normandy, Allied causalities rose dramatically. Accompanying the rise in causalitieswasanincreaseinpressureexertedbytheAlliesonalloftheneutralcountries. OnJuly10,1944,BillDonovan,headoftheOSS,informedRooseveltthatSwitzerlandhadagreedtobuy$7 10millionofgoldmonthlyfromtheNazis.RoosevelttoldDonovantotakethematterupwiththeSecretaryof State, Cordell Hull, and have pressure put on the Swiss. On the 14th Hull called in Swiss Minister Charles Bruggmann and reviewed the mounting causalities and costwith a gentle hint that continued trade with the Nazis would be viewed harshly. With the success of the Normandy invasion in August 1944, the State Department instructed its legation in Berne to begin informal talks to limit the SwissNazi trade. The Swiss responsecameinlateAugustandrevealstheduplicityoftheSwiss.Theresponsefollows. It goes without saying that the war as it nears the Alps changes aspect of transit problem and has a bearing on its solution. For this reason Federal authorities keep this problem under constant and careful watch. They have thus been able to observe that traffic in both directions has in general decreasedandnotincreasingsincespring.Inspiritoftrueneutrality,whichguidesthem,willseetoit thatitfollowsthetrendcircumstancesdemand.[63] Due to the pressure coming from both the United States and England, the Swiss reduced their exports of strategicmaterialssuchasammunition,locomotives,machinetools,etc.TheFederaleconomicAdministration advocatedsternmeasuresagainsttheSwiss,includingwithholdingoffoodandfodderpreviouslypromisedthe SwissbytheAllies.TheJointChiefsofStaffalsofavoredwithholdingsuppliesfromtheSwiss,however,Britain opposedsuchsternmeasures.InOctober1944,UnderSecretaryofWarPattersoninamemonotedthatSwiss convoyscarryingshipmentsofgoodsfromSpainacrossFrancetoSwitzerlandhadresumedinlateSeptember 1944.PatersonarguedthatsuchshipmentsshouldbestoppeduntiltheSwissagreedtoendalltradewiththe Nazis. On December 8, 1944, the executive committee of the Economic Foreign Policy approved a policy concerning the Allies economic policy toward neutral countries. The policy reflected the tough stance of the FEAcallingforacontinuationoftradecontrols,exchangecontrols,andfreezingregulationsintothepostwar period, as leverage in obtaining assistance from the neutrals in attaining Safehaven objectives. Despite the approval of President Roosevelt, various government agencies and departments continued to dispute the policy. In February 1945, after much wrangling over imposing sterner measures against Switzerland, Lauchlin Currie, Assistant to President Roosevelt, headed up the American delegation to Switzerland for talks on stopping the wartime trade and begin negotiations on gold issues. The Swiss delegation was headed by Dr. William Rappard, although the man pulling the strings was Walter Stucki. In March, Currie reported some success.TheSwisshadagreedtofreezeallGermanassetsinSwitzerland,prohibittheimportation,exportation, and dealing in all foreign currencies; and restrict Swiss purchases of gold from Germany. While the Currie mission was greeted as a success, controversy would soon follow. In May 1945, the US Legation in Berne reportedthattheSwisspurchased3,000kilogramsofgoldfromGermany.Thepurchasewasclearlyexcluded bytheCurrieagreement;however,theSwissarguedthegoldwasnotlooted. In June 1945, Harley Kilgore chaired the Senates War Mobilization Subcommittee. In the hearings, he introduceddocumentsuncoveredbyAlliedinvestigatorsofcorrespondencebetweenGermanReichsbankVice President, Emil Puhl, and the German Minister of Economic Affairs, Walter Funk, regarding GermanSwiss commercialdiscussionsthatwereconductedatthesametimeastheCurrieMission.ThetreacheryoftheSwiss was given widespread publicity. Orvis A. Schmidt, Director of Foreign Funds Control for the Treasury DepartmentandamemberoftheCurrieMissiontoBerne,testifiedbeforethesubcommitteeasfollows: Even at this late date, the Swiss Government is loath to take the necessary steps to force banks and othercloakinginstitutionstodisclosetheownersofassetsheldinorthroughSwitzerland.Thismeans that German assets held in or through Switzerland will not be identified. Thus, the true picture of German financial and industrial penetration throughout the world will be kept a secret. By the same token, Swiss banks will continue to profit by protecting, through their secrecy laws, Germanys war potentialandthehiddenassetsofitfinanciersandindustrialists.[63] InSeptember,USMinisterinSwitzerland,LelandHarrison,expressedtoMaxPetitpierre,theSwissMinisterfor ForeignAffairs,USdissatisfactionwithSwisseffortstocompleteacensusofGermanassetsandofthegeneral noncooperationofSwitzerland.TheKilgoreCommitteesrevelationsraisedalarminSwitzerland.Someright

wing papers in Switzerland went so far as claiming Switzerland could not withstand another crisis like the KilgoreCommitteehadraised. InMarch1946,formaltalkswithSwitzerland,theUS,BritainandFranceopenedinWashington.Whenthe formaltalkswithSwitzerlandopened,USnegotiatorsheldanoptimisticviewthattheSwisswerecommittedto theCurrieMissionagreementthatSwitzerlandwouldnotbecomeahavenforNaziassets.Ontheotherhand, Switzerlandvieweditsactionsduringthewarasconsistentwiththeinternationallyrecognizedobligationsand rights of a neutral power. The Swiss asserted that the Nazi seizure of monetary gold from the occupied countriesaccordedwithinternationallaw(therightofoccupyingpowerstowarbooty).Henceforththereceipt ofthegoldbySwitzerlandwaslegal.SwitzerlandfurtherclaimedthattheAlliesclaimtoGermanassetsbeyond GermanysborderwasillegalandaviolationofSwisssovereignty.AdditionallySwitzerlandsoughttheremoval ofallSwisscompaniesandindividualsfromtheAlliedblacklist. Withsuchdiametricallyopposingviews,thetalksweresetforlongandhotlycontestednegotiations.The AlliedsideofthetalkswasfurthercomplicatedbythedisputebetweentheUSandBritishastouseofsanctions to induce compliance. Treasury briefing material for the US negotiators urged a global approach to the gold issue rather than to determine the amount of looted gold in each transaction. Additionally, the Treasury wantedanopenendedclauseinanyagreementwherebySwitzerlandwouldbeobligatedtoreturnanyfurther looted gold that may be found once the agreement was reached. Treasury Assistant Secretary Harry Dexter White insisted that Swiss funds remain blocked in the United States until the Swiss provided ironclad guarantees that they would identify and seize all accounts under German control. White estimated at $500 millionthesumofGermanassetsinSwitzerland,excludingnumberedaccountsandcloakedassets. The American negotiators had the benefit of two comprehensive evaluations of German gold movements during World War II. Both reports were prepared from the records of the Reichsbank. Otto Fletcher, Special Assistant to the Division of Economic Security Controls of the State Department, estimated that Nazi gold reserves at the beginning of the war was $120 million and they acquired another $661 million in monetary goldduringthewar,mostofwhichwaslooted.FletcheralsoreportedthatallgoldsoldbytheNazisafterearly 1943waslooted.Hisreportshowedthatatotalof$414millioninlootedgoldwassoldortransferredtothe Swiss National Bank by the Nazis. The second report prepared by James Mann of the Treasury Department estimatedthetotalmonetarygoldlootedbyGermanyat$579million,outofatotalof$785millionavailableto GermanyafterJune30,1940.Mannsreportconcludedthatatotalof$289millionwastakenbytheSwiss. The Treasurys strategy for the negotiations revolved around the neutral countries recognizing the authorityoftheAlliedcontrolcouncilslegalrighttoallGermanexternalassetsundertheVestingDecree.Even beforethetalksbegan,theTreasurywasinsistingthattheSwissrecognizetheACCVestingDecreeandtoagree torestitutetotheAlliesforreparationsanestimated$378millioninlootedmonetarygold. RandolphPaulwasdesignatedSpecialAssistanttoPresidentTrumaninchargeoftheUScontingenttothe AlliedSwissnegotiations.PaulhadanimportantroleinurgingtherescueofJewsinEuropeastheextentofthe Holocaustbecameknown.PaulwasassistedbySeymourRubinandWalterSurrey,seniorDepartmentofState officialsresponsibleforeconomicsecurityprograms.WalterStuckiheadeduptheSwissdelegation. Theopeningstatementsofallofthecountriesrevealedthechasmseparatingthetwosides.Inaneffortto removethedeadlock,theAlliesgaveupitsclaimtoallGermanassetsandofferedtheSwissatwentypercent share.After returningfromBerne,Stuckiwrote PaulreservingtheSwisslegalposition,but enclosing adraft agreement that accepted a role for the Allies in the liquidation of German assets in Switzerland through the establishmentofajointcommissionandaplantosharetherevenuesinsomeunrevealedproportion.Twodays latertheSwissreleasedareportentitledSwissObservationswithRegardtotheGoldProblem,whichdiffered markedlyfromAlliedcalculationsregardingGermangoldholdingsatthebeginningofthewarandquestioned the credibility of information provided by former Reichsbank Vice President Emil Puhl. Puhl had informed AlliedinvestigatorsthattheSwissNationalBankknewtheyweregettinglootedgoldbecausehehadtoldthem that. AlliedreactiontotheSwissresponsewasextremelynegative.Bythenthetalkswerenotmuchmorethan the exchanging of notes and memos. Further efforts continued and other proposals rose, none being satisfactorytoeitherside.FinallyonApril24,SeymourRubininformedUnderSecretaryAchesonandAssistant SecretaryClaytonthattheSwisshadsuspendedthetalks.TheAllieshadsoughtthereturnof$130millionin goldlootedfromBelgiumandtraceabletoSwitzerland. On May 2, the Swiss resumed the negotiations in a meeting arranged by the Swiss ambassador in Washington, Minister Bruggmann. Stucki made his final offer on his word of honor. The proposed deal

providedfora5050splitontheproceedsofGermanassetsinSwitzerlandandapaymentof$58.1millionin settlement of the gold question. Paul felt that the Swiss offer was the final bid. Paul had the benefit of US intelligence reports on the flexibility the Swiss government had given Stucki to base his opinion on. He remindedtheBritishandFrenchthattheiroriginalproposalof$88millioningoldhadbeenagoodcase,but they had agreed to a settlement of $75 million. He felt that a better agreement could be achieved only if economiccontrolsagainsttheSwissremainedinplace.PaulmetwithStuckibeforehereturnedtoBerneand agreedtotheoffer,ifthepaymentwasraisedto$70million.Stuckinotonlyrefused,butalsosuggestedthat the Swiss would subtract a 2 percent commission as a collection fee on German assets. Paul conveyed his thoughtsinalettertoAssistantSecretaryofStateClaytonandTreasurySecretaryVinsonthatthefinalSwiss offerhadbeenmade.HeobservedthattherewassignificantsentimentinFrance,Britain,andtheUnitedStates foreliminationofcontrolsovercommercialandfinancialactivities.Afterthreeweeksofmeetingsbetweenthe Allies,theSwissagreementwasfinallyaccepted. The final agreement with the Swiss was signed on May 26; it consisted of an Accord, an Annex, a gentlemensagreement,andanexchangeoflettersbetweentheSwissandAllieddelegations.OnJune3,Paul submittedasummarytoPresidentTruman.Themajorpointsoftheagreementfollowbelow. 1. TheSwissCompensationOfficewouldliquidateGermanpropertyinSwitzerland. 2. GermanswhosepropertywasliquidatedwouldhavearighttocompensationinGermanmoney. 3. The Swiss Compensation Office would liquidate German assets in cooperation with a Joint Commission composedofAlliedrepresentatives. 4. Liquidatedassetswouldbedividedona5050basisbetweenSwitzerlandandtheAllies. 5. The Swiss Government would make available to the Allied Gold Pool 250 million Swiss francs ($58.1 million)ondemandingoldinNewYork. 6. TheUnitedStateswouldunblockSwissassetsandtheAllieswoulddiscontinuetradeblacklistsasthey appliedtoSwitzerland. 7. TheinterpretationoftheAccordmightbesettledbyarbitration. 8. TheeffectivedateoftheAccordwouldbethedateofratificationbytheSwissParliament.[63] OnMay24,1946,SenatorHarleyKilgorewrotealettertoPresidentTrumanurgingrejectionoftheagreement, reversing his earlier agreement. Congressman Joseph Clark Baldwin also urged Truman to reject the agreement. Truman accepted the agreement. In October 1946, the United States unblocked private Swiss assets. By the end of 1948, the United States had unblocked nearly $1.1 billion in Swiss assets in the US. However,theSwisscontinuedtodragtheirfeetinimplementingtheagreement.IntheperiodJulySeptember 1946, the Swiss argued stating that they could not proceed with the liquidation of German assets until the AlliesfixedafairrateofexchangebetweentheReichsmarkandtheSwissfranc.OnJuly22,1947,theAllies senttheirexchangerateproposaltotheSwiss.TheSwisspromptlyrejectedtheproposalarguingthattherate couldnotbefixedunilaterallybyFrance,theUnitedStates,andtheUnitedKingdom. NorwasthistheonlycaseofSwissduplicity.Duringthesummerof1946,theSwissquestionedtheamount ofgoldtobereturned.OnAugust2,1946,anotetotheStatedepartmentfromtheSwissLegationstatedthatit was prepared to turn over to the Allies 50,807 kilograms of gold in payment of its 250 million Swiss franc obligation.Thisamountwasabout800kilogramsandnearly$1millionshortofthe$58millionanticipatedby theAllies.TheSwisshadarrivedatthenewfigurebydevaluingthefranc.TheSwissinsistedonarbitrationinto 1947,onlytofinallybackdowninMay1947. Negotiations with Switzerland continued until 1952 before a final accord was reached. Throughout the years, Switzerland exhibited a disregard and contempt for the Allies authority. All of the negotiations were markedbytheduplicityoftheSwiss,especiallyintheheirlessassets.Inthecaseofheirlessassets,theSwiss banks had no problem in liquidating those accounts for the benefit of the bank, but for Jews seeking the accountsoflovedoneslostintheHolocaustthebanksrefusedallhelp.Oftentimesthebankswoulddemanda deathcertificate,knowingthatnodeathcertificateswereissuedforvictimsintheconcentrationcamps.This finalissuewasntsettleduntilthe1990sinitiativestartedbyPresidentClintonandheadedbyEizenstat. However, although there were renewed talks in the 1990s, Swiss duplicity still abounds. A new scandal emerged in 1997 when former bank guard Christoph Meili came forward with evidence that Union Bank of SwitzerlandwasshreddingdocumentsconcerningUnionsactivitieswiththeNazis.Meili,anighttimeguardat Union Bank, discovered a large quantity of documents waiting to be shredded. Among the documents were recordsofaccountsfromthewaryears.Theyoungguardtooktwobooksandpagesrippedfromanothertohis locker that night and then home. Meili then turned the books over to a Jewish organization in Switzerland.

SwisslawprohibitsthedestructionofdocumentsthatmightrelatetoWWIIinvestigations.Forarewardinhis efforts to uncover the truth, Union Bank fired Mr. Meili. The government also is investigating whether Meili violatedanyoftheSwisssecrecylaws.Theyoungmanwassubjectedtothreatsofkidnappingofhisdaughters andhassincemovedtotheUnitedStates.EvenintheUnitedStates,Meilistillreceivesdeaththreats.President ClintonsignedabillthatgrantedtheMeilifamilypermanentresidentstatus.ChristophMeilihasthedistinction ofbeingtheonlySwisscitizenevergrantedpoliticalasylumintheUS.[64] The gold recovered in Germany and that returned by the neutral countries was used to establish a gold poolunderthecontroloftheTripartiteGoldCommission(TGC),whichwasestablishedonSeptember27,1946. TheParisagreementspecifiedtherestitutionofmonetarygoldtoeachparticipatingnationinproportiontothe losses of such gold it suffered. Problems stemming from the postwar economic recovery of various nations promptedtheTGCtomakeaninitialdistributionofmonetarygoldevenbeforeassemblyoftheGoldPoolhad been completed. Ten nations filed claims with the TGC: (Albania, Austria, Belgium, Czechoslovakia, Greece, Italy, Luxembourg, the Netherlands, Poland, and Yugoslavia). On October 17, 1947, the TGC announced in Brussels the preliminary distribution to Belgium, Luxembourg, and the Netherlands. In November and December1947,distributionsweremadetoItalyandAustria.CzechoslovakiaandYugoslaviareceivedpartial allocations in 1948. The distribution to Albania was delayed until October 1996. Overall, a total of $379,161,426wasdistributedtotheclaimantnations.Sincetheclaimsfarexceededtheamountofrecovered gold, claimants received only about 65 percent of their recognized claims. The TGC presently retains control about$70millionofgold,withabout$47millionstoredattheBankofEnglandandtheremainderattheNew YorkFederalReserveBank.Thetablebelowliststhesourceofthegoldinthegoldpool. Amount Yearcontributed[47] Source ForeignExchangeDepository $263,680,452* 1947 Switzerland $58million 1947 BankforInternationalSettlements $4.2million 1948 Spain $114,329 1948 Sweden $8million 1949 Sweden $7million 1955 Portugal $4million 1959 Portugal $360,000 1959 *GoldrecoveredinGermany WhiletheneutralcountriesmustforevershouldertheshameofaidingNaziGermanyinacceptinglootedgold, theAllies,andinparticulartheUnitedStates,mustalsoshouldersomeoftheshameinitsrecoveryofstolen assets. With the exception of Argentina, all of the neutrals claimed a threat from a possible Nazi invasion. In manycases,thethreatwasrealupuntil1941beforetheNazisinvadedRussia.However,thethreatsimplydid notexistafterthat.Infact,itcanbearguedunequivocallythattheNaziswereunabletomountanotherfront after the Russian invasion by the fact that they had to delay Operation Barbarossa until after the Balkan campaignwascompleteinordertofreeuptroopsneededfortheRussiancampaign.Additionally,theamount oftradeandthedegreeofneutralityexhibitedbyeachoftheneutralnationswasdependentuponthefortunes of the war. This was particularly true of Switzerland, which continued trading with the Nazis until the Allies wereatitswesternborder.Theendresultwastheneutralcountrieswerewillingtoacceptbloodmoneyfor economicadvantages. However,in negotiationsoverthegoldissue,the Allies,andtheUnitedStatesinparticular,were equally willingtosacrificetheirmoralityforstrategicgainsintheColdWar.Additionally,itisreadilyapparentinthe lack of regard the Allies and the United States exhibited in the handling of the nonmonetary gold and the victims of the Holocaust. US authorities were aware of the problem from the start with the discovery of the MelmeraccountatMarkersconsistingofdentalgold,goldwatches,weddingrings,etc.AlbertThoms,headof the Reichsbanks Precious Metals Department, identified 207 bags at Merkers as belonging to the Melmer account. The significance of the Melmer account was recognized almost immediately by General Frank McSherry.McSherrysuggestedthatthisSSpropertycontainsevidencewhichwouldbeusefulinprosecuting SSwarcriminals. The details of the Melmer account were pieced together through examination of the Reichsbank records and by interrogations of Thoms, Reichsbank Vice President Emil Puhl, and SSHauptsturmfuehrer (Captain) BrunoMelmer.Thoms,asheadofthepreciousmetalsdepartmentoftheReichsbank,wasabletoprovidethe AllieswithmanyofthedetailsconcerningtheSSaccount.ThomstoldhisinterrogatorsthatFrommknechtsent

himtoPuhlinthesummerof1942.PuhlinformedhimofthattheSSwasabouttobegintheshipmentstothe Reichsbank and that the shipments would contain jewelry and other items of nonmonetary gold and silver. However,becauseofthesecrecyneeded,theReichsbankwouldberesponsiblefortheirdisposal.Shortlyafter this meeting SSBrigadefuehrer (brigadier general) informed Thoms that an SS officer named Melmer would deliver the first shipment in a truck. The shipment arrived on August 26, 1942. The tenth delivery, in November1942,wasthefirsttoincludedentalgold. ThematerialswerefirstdepositedintheMelmeraccount.Theitemswerethensorted.Goldandsilverbars as well as currency were bought by the bank at full value. Small items like wedding rings were sent to the Prussian Mint for resmelting. Larger jewelry items were sent to the Municipal Pawnshop, which sold the bettervalueditems.Therestofthematerialwassentonto(DeutscheGoldundSilberScheideanstalt)Degussa for resmelting. Degussa was allowed to keep a small portion for industrial purposes, but any gold in excess wassoldtotheReichsbankandtheamountcreditedtotheMelmeraccount. DegussawasalargeGermanfirmengagedinmetalrefiningandproductionofchemicals,includingZyklon Bcyanidetabletsusedinthegaschambers.TheZyklonBtabletswereproducedbyDegesch,whichwasowned byDegussaandI.G.Farben,achemicalconcernthatwasdissolvedafterthewar.Degussawasalsothefirmthat suppliedtheuraniumfortheNazisatomicbombproject.Recently,Degussaspokespersonshaveacknowledged ties between Degussa and I.G. Farben during the war. Much of the information surfacing recently about DegussacomesfromalawsuitfiledinNewJersey.[65]DegussaheldanexclusivecontractwiththeNazisforre smeltingitemstakenfromtheJewsintheconcentrationcamps,includingdentalgold.Therewassomuchgold being taken from the victims at Auschwitz that Degussa built a smelter there. According to OberstrumbannfuehrerRudoffHoss,thecommandantofAuschwitz,thedailyyieldofgoldatthecampwas24 pounds.[68] MorerecentlyDegussasroleinnuclearproliferationhasbeenbroughttolightinthemoviedocumentary Stealing the Fire.ThefilmmakersdocumentthetrialofKarlHeinzSchaabfortreasoninMunich.Schaabisthe firstpersonintheworldconvictedofatomicespionageinanopentrialinthelastfiftyyears.Hesoldtopsecret documents stolen from Germany to Saddam Hussein and traveled to Baghdad numerous times to help Iraq build an atomic bomb. Schaab was linked to Degussa and Leybold, a Degussa subsidiary. He received an extremelylightsentenceuponconvictionof100,000deutschemarksfineand5yearsprobation. However, there is more than meets the eye to the light sentence handed out to Schaab. After the war, Gernot Zippe, (known as the father of the centrifuge) an employee of Degussa, was of great interest to the militaries of several industrialized nations. Zippe was captured by the Russians and helped them build their atomicbomb.Hewasreturnedtothewestin1956.Onhisreturn,theCIAimmediatelysnappedhimuptowork onUScentrifugetechnology,whichiscriticalinseparatingisotopesofuranium.Throughaconvolutedpath,a variantofZippescentrifugetechnologywasdiscoveredinIraqin1996.Duetothemurkyunderworldofarms dealing, Degussa was spared charges of treason largely because of its connections with American defense contractorssuchasDuPont.Shaabwasaconvenientfallguy.IraqsScudBmissiletechnologycanbedescribed as90%Germananditsatomictechnologyas60%German.[66] Additionally in 1990, Degussa was fined $800,000 for illegally reexporting nuclear weaponsrelated materialtoNorthKorea.ThefirmhasalsobeenimplicatedinexportingpoisonousgastoLibya.Degussawas also a large contributor to the election campaign of George W. Bush. As early as June 1999, Degussa had contributed $1,950.[67] The reader should remember Degussa is a German company contributing to an Americanelectioncampaign.TodayDegussaisaworldwideconglomeratereportingsalesof11.8trillionEuro dollars. Once again, the reader can see that corporations associated with the Nazis have advanced unencumbered. Degussa also represents a corporation that has been so thoroughly corrupted with its past dealingswiththeNazisthatitisbeyondreform.Itshouldbebrokenupbeforeitsdealingscanprovokeanother war. With the rise of fascism globally, the best chance of the fascists regaining control still lies in provoking anotherwar. TheForeignExchangeDepositoryconcludedthattherewere78deliveriestotheMelmeraccount,ofwhich about 43 were fully inventoried by the Reichsbank. Bernstein estimated the total value of all the Melmer deliveries to be about 36.17 million Reichsmarks, with gold and silver coin and bullion accounting for 10.67 million.Thecontroversyofthedistributionofmonetarygoldstemsfromtheinclusionofgoldtakenfromthe victims of the concentration camps. All gold coins and bars were deemed to be monetary gold. Additional victimgoldinthemonetarygoldcamefromtheresmeltingofgolditemsbyDegussaandfromtheReichsbank after the Jews were ordered to turn in all gold and silver in 1939. This victim gold became mixed with the

monetary gold and some m e of it was sold to the neutral count tries. The controversy re enewed in th he 1990s has s s shownbeyon ndanydoubt tthattheinc clusionofvic ctimgoldint tothemonet tarygoldpot twasdonek knowinglyby y t theAllies,inc cludingtheU UnitedStates.WhiletheA Alliesestimat tedthatthea amountofgo oldtakenfrom mthevictims s o oftheNazisw was$14.5mi illion,onlyab bout$3millionwaseverusedtohelp pthevictims. .

P 9: Nazi Gold Stories from Argentina Part

Beforeproce B eedingwitht theproblems sofheirless andvictimsassets,abr rieflookatw whatcouldb becalledgold d s stories,legen ndsormythsisneededto oshedadditi ionallighton ntothemissingNazitrea asures.Theb biggesthoard d t that still is missing m is tha at of Borman nns Aktion Feuerland project. Undo oubtedly ther re are as ma any myths as s t there are fac cts surround ding Borman nns stash. Some S have taken on asp pects of lege ends. Thus the t reader is s f forewarnedt thatwhatfol llowsconcerningthishoa ardmaybep partiallyfalse e.Whatiskn nownwithce ertaintyis,up p u until June 19 944, Borman nn transferre ed his loot across a Franc ce in trucks to Spain. In n Spain the treasure t was s t transferred t Uboats which to w then made m the voy yage to Argentina. After DDay, with the land rou ute closed to o S Spain, Borma ann continue ed his transf fer of assets to Argentin na by air. Au uthor Ladisla as Farago cla aims that the e v virtually com mplete record of this operation is pr reserved in the archives s of Coordin nation Feder ral in Buenos s A Aires, in the FBI files and the British h Admiralty. The latter assumed a the Uboats were on regula ar patrol.[69] F Faragoclaim mstheshipme entsbeganin n1943anda arrivedona regularbasi is,spacedat sixtoeight weeksapart t. H Hestatesthe moneyandgoldwerede epositedinth henameofE EvaPeron. ng to Farago o the Perons s managed to t gain cont trol over mu uch of Borm manns Accordin t treasure and d In Evitas Rainbow Tour of Euro ope, she dep posited over r $800 milli ion in n numberedac ccountsinvariousSwissb banks.Farag golistthetreasureas: 187,692,4 400goldmar rks 17,576,38 86American ndollars 4,632,500 0poundsste erling 24,976,44 42Swissfran ncs 8,370,000 0Dutchflorins Eva Peron 17,280,00 09Belgianfr rancs 54,968,00 00Frenchfra ancs 87kilogramsplatinum m 2511kilo ogramsofgol ld 4638cara atsofdiamon ndsandothe erpreciousstones.[70] F Faragoslisto ofBormannstreasureab bovehasbee enpartiallyv verifiedbyA AdamLebor,a ashespecificallyliststhe e s same quantit ties of gold and a diamond ds.[71] Altho ough Farago o starts the gold g deliveries before th he Red House e m meeting, the reader shou uld recall tha at it was in 1943 when the Allies fir rst became alarmed a at the t Nazi gold d t transfers.All iedintelligen ncebelievedthatmucho ofthefirstgo oldtoarrive inArgentina awasusedt tofinancethe e N Naziespionag gewebinSo outhAmerica a. Onelegen ndconcernin ngArgentinaandNazigoldclaimstha atintheclosi ingdaysofth hewarthata afleetofNaz zi U Uboats cont taining the Nazi N treasure e and top Na azis, includin ng Hitler, left t Germany fo or Argentina a. En route to o A Argentina,th heyencounte eredanAlliednavaltask forceanda battleresult tedinthelos ssofseveral lAlliedships s, w whichtheUn nitedStatesc continuestodeny.Recentlyadditiona alevidencesurfacedinPr ravdasheddingnewligh ht o onthelegend d.[72]Itiskn nownthatten nUboatswe eredispatche edtoArgentinainthelas stdaysofthe ewar.Pravda a c claimsthata tleast5oft themreached dArgentina withnoless than50top pNaziofficials.Duringth hetrip,theU U b boatssunkan nAmericanb battleshipan ndtheBrazili iancruiserB Bahiawithad deathtollofmorethan4 400,including g U UScitizens. laimstheUSshipwasth heUSSEagle 56.However r,theUSEag gle56wassu unkonApril l23,1945of ff Pravdacl asttowingta t theMaineco argetsfordivebombing practice.On nlythirteeno ofthe67crew wmemberss survived.The e N Navymainta inedtheship pwassunk byaboilerr roomexplosionuntilrec cently,finally y acknowledgingthatthe e U USSEagle56 6hadbeensunkbyUbo oatU853.U 853wassunkonMay6 6,1945inth heNorthSea southeasto of N NewLondon .[73] ia was sunk by U977, which w surren ndered at Mar M del Plata a, Argentina on 17 Augu ust 1945 and d The Bahi t turned over to the US for f testing. Four F US radi iomen: Willi iam Joseph Eustace, And drew Jackson Pendleton n,

EmmetPeperSallesandFrankBenjaminSparkserewereaboardtheBahiaandwerekilled.TheUSNavystill liststhemenasmissinginaction.BrazilliststhesinkingoftheBahiaasanexplosion. The article in Pravda was based on information from Argentina researchers Carlos De Napoli and Juan Salinas.Theyclaimthatafleetofalmost20UboatssailedfromtheNorwegianportofBergen,betweenMay 1standMay6.TheyjoinedanothergroupofUboatscomingfromtheUScoastsaroundCapeVerde.Therethey learnedofthesurrender,somescuttledtheirboats,otherssurrenderedandstillotherssetcourseforGermany. However, at least six of the Uboats proceeded for Argentina. Further the article claimed that the Argentine Navy was ordered to stop attacks on German Uboats operating close to Argentine beaches on orders from Churchill.Farago,forone,hasconfirmedthattheArgentinenavywasissuedsuchanorderbyPeron.Hedoes nothowever,mentionthattheordercamefromBritain. The PravdaarticlecontainsaseriouserrorinthenameoftheUSshipsunk.Duetothecontroversyofthe sinkingbeinglistedasaboilerexplosion,whenthesurvivorsreportedseeingatrottinghorseonaredshield ontheconningtower,thesinkingoftheUSSEagle56hasbeenthoroughlyinvestigated.However,thearticle containsmuchinformationknowntobetrue,includingthelistingoftwooftheUboats:U530andU977.U 530surrenderedintheMardelPlata,Argentinaon10July1945.ItwasturnedovertotheUSfortesting.Other information has been partially confirmed by other investigators. It is also known that initially the US didnt believetheHitlersuicideatfirstandlaunchedasearchinSouthAmericaforhimandothermissingtopNazis. ThecommanderofU977,HeinzSchaeffer,aftersurrenderingwasarrestedandchargedwithsmugglingwar criminalstoSouthAmerica. Interestingly,U530appearedtohavebeenstationedaroundCapeVerdein1944.OnJune23,1944,U530 rendevousedwiththeJapanesesubI52totransferaradardetectorabout850mileswestoftheislands.The Allies were aware of the transfer and Allied planes managed to sink the Japanese submarine. The I52 was locatedin1955andstillcontained2tonsofgold.[74] Additionalinformationhassurfacedin1997inArgentina.Thenationalnewspaper,Ambito Financiero,was contacted by a man giving his full German name and his commanders identity number.[75] He claimed he arrived in Argentina after scuttling his Uboat. In the 1970s, the same paper was contacted by a different personmakingthesameclaim.ThisUBoatcommanderwrotethat,onHitlersspecificorders,tensubmarines, each with fifty officers and crew, were to sail to Argentina to help found the Fourth Reich. Recently more informationonthisfleetofUboatscamefromNorway.Thereapersonclaimingtohaveallegedlyworkedinan archivedepartmentoftheNazinavy,alargepartofwhichwasstationedinsouthernNorwayduringtheWar, discovered additional documents that corroborates the Argentine information. Other researchers have long claimed that two Uboats were scuttled after unloading their cargo of documents and gold in shallow water, whichwouldconfirmthetwocontactswiththepaper. Further confirmation of the Nazis plans comes from the surrendering of U238 at Portsmouth, New Hampshire on May 16, 1945. U238 deported from Norway on April 16, 1945. While at sea in the North Atlantic,U238learnedofthesurrenderandtheorderfromDoenitztoabandonoperationsandsurrender.The listofthecargoofU238follows: Onetonofdiplomaticandpersonalmail, Technicaldrawingsandblueprintsforadvancedcombatweaponry, Plansforconstructionofjetaircraftfactories, Antitankweapons, Advancedbombsightsandfirecontrolsystems, Airborneradar, AnMe262jetfighter, Additionaljetengines,and 560kilogramsofuraniumoxide.[76] AdditionallytheU238carriedthefollowingtopNaziexperts: LuftwaffeGeneralUlrichKessler,onhiswaytobecomeGermanairattachinTokyo, Luftwaffe Lieutenant Colonel Fritz von Sandrart and Lieutenant Erich Menzel, experts in air communications,airborneradar,andAAdefenses,

Four Kriegsmarine officers, o inclu uding a nav val aviation expert, an AA A expert, a naval con nstruction ,andanaval ljudge(who osejobwould dbetofinall lystampout thelastvest tigesoftheS Sorgespy engineer, ring), August Brinewald B an nd Franz Ru uf, experts in n the techno ology and co onstruction of jet aircra aft whose missionw wastobeginproductiono ofMe262jet tfightersinJ Japan,and Dr.Heinz zSchlike,asp pecialistinra adarandinfr raredtechnologies.[76] T TheU238ho owever,wasdestinedfor rJapan.The technicaldo ocumentshel lpedimmens selyintheun nderstanding g o ofJapanese d defenses.Th eblueprints alsohasten nedthedevel lopmentofU USadvanced dweaponry. WhiletheU U partofthee 2 238wasnot escapetoArg gentina,itlendscredencetotheNazi isabilityto transferthei irtechnology y a abroadandg givestheidea aofthescope eofthattran nsfer. Thisbrieflookatthe Bormanntreasuretrans sferredtoAr rgentinaread dilyillustrate esthedifficu ultyofsorting g f fact from fic ction in the tales of Na azi loot. Aut thor, Uki Go oni has also o presented proof of th he difficulties s e encountered hose records have been n purged o of in relying on Argentine records. He has found that th incriminating gfilesonatleasttwodiff ferentoccasi ions.[53]The efulltruthof ftheBorman nntreasurem mayneverbe e r revealed unless the Unit ted States an nd England declassify d all l documents from WWII I. The Pravda article was s o obviouslyinf flatedlargely yalongthelin nesoftheSo ovietsuspicio onsofthetim me.However,settingasid deitsfaults,i it s sheds additio onal light on n Bormanns operation that t the Unit ted States an nd England would w like to o see buried d. A Additionalse earchesforG GermanUbo oatsalongtheArgentine coastarealr readybeing planned.Any ydiscoveries w wouldonlyse ervetoconfirmmoreoft thePravdaarticleaswell lastheconta actsmadewi iththeArgen ntinepaper.

P 10: The Emperors Golden Lilly Part

Whilethesiz W zeoftheBor rmanntreasu ureisnotkn nownwithan nyaccuracy,itundoubte edlyis t largest Nazi the N treasure e that has no ot been recov vered. The only o other tr reasure rema aining f fromWWIIt thatcouldriv valitinsize istheGolde enLilytreasu urecollected dfortheJapanese E Emperor.Wh hiletheNazi treasurehas sbeenthesu ubjectofnum meroussearc chesandrese earch, t theJapanese sbeenlargel lyleftunexp plored.While etheNazisap ppointedaspecial treasurehas u unit of the SS, S the Devis senschutzkom mmando, to take t charge of the lootin ng of Europe, the Japaneselike ewisehadas specialunit.W Whereas,the eNaziunite employedFre enchmentol locate Hirohito g gold and cur rrency on a a ten percen nt commissio on, the unit t was plague ed by indivi iduals s seeking to enrich e thems selves rather than the Third T Reich and much gold was si iphoned off into private e t treasures.Se eekingto avo oidasimilar problem,Hi irohitoappo ointedPrince e Takeda Tsu uneoshiaschieffinancia al o officerofthe KwantungA Army.Severa alprinceswereinvolvedw withtheGold denLilyoper ration.AftertheJapanese e invaded Chin na in 1937, the Golden Lily operati ion conducted a paralle el operation. . Loot was amassed a and d t truckedtoKo oreaforshipmenttotheJ Japanesehom meland.[77] In1939,t theJapanese einvadersuf fferedasting gingdefeatat tNomonhanafterabord derclashwith htheSoviets s. Its worth no oting that th his was the first f battle in n which the Japanese Un nit 731 employed biolog gical warfare e, u using typhoid bacteria. The T experim ment was a failure. In 1941, 1 Roosev velt signed a a secret agreement with h B Britainandth heNetherlan ndsagreeingtogotothei irdefenseiftheircolonie esinSouthea astAsiawere eattacked.In n 1 1940,Prince Chichibuwa asappointed dtoheadthe eGoldenLily y.HeandTa akedatravele edthroughoutChinaand d S SoutheastAs siaoverseein ngthelooting gandshippin ngthetreasu urebacktoJ Japanaboard dhospitalships.By1943 3, t United St the tates subma arine blockade of the ho ome islands became effective. This fo orced Prince e Chichibu to o m movehisGol denLilyheadquartersto oLuzonfrom mSingapore.H Hespentthenexttwoan ndhalfyearsinventorying g a andhidingth hetreasurein naseriesof vaults,tunnels,andcave es.Inallthet treasurewas shiddenin1 172sites.[78] T hope wa The as that the Japan J could arrange a ceasefire c an nd be allowe ed to hang onto o the Phil lippines as a a t territoryand dthenrecove erthetreasur reattheirlei isure. Besides using u the Ph hilippines to hide the tre easure in th he last year of o the war, Japan J hid go old at sea by y s scuttlingship ps.Thecruise erNachiiwa astorpedoedbyasubmar rineinManil laBay.Thesubmarineth henmachined d g gunnedanys survivorsto ensuresecre ecy.Presiden ntMarcosrecoveredthe goldfromth heNachiiint the1970s.In n 1 1997, A Japa anese television crew film med the recovery of 180 00 gold bars s worth $150 million. Th he Igorot hil ll p people had discovered d th he gold. Afte er the death of Prince Chichibu in th he 1950s, a member of the Imperia al f familyconfid dedthatthe GoldenLilyh hadamassed dover$100 billionintre easure,much hofwhichw washiddenin n t Philippin the nes.[79] He also a confirm med that the prince had escaped fro om MacArthu urs advanci ing forces by y s submarine.

T Thehospital ship,Tenno Maruarrive edatYoksuk kaNavalBase eloadedwith hcausalitiesfromthePh hilippines and 2,000metric ctonsofgol ld.Dayslater ritmovedto oMaizuraN NavalBase whereadditio w onaltreasure ewasput ard.Theshipthensailedatnight,itsc crewwasmu urderedandtheshipsun nkinthebay.Inasecreto operation aboa in19 987,thegold dwasrecoveredbyJapan n.Anotherho ospitalship, AwaMaru,w wassunkmistakenlyoff thecoast ofCh hinainApril 1945.Aboar rdtheshipw was40metri ictonsofgol ld,12metric ctonsofplat tinum,150,000carats ofdi iamonds,ala argequantity yoftitanium mandother strategicma aterials.Oldm minesinthe eJapanesem mountains also served as re epositories for f portions of the Golde en Lily treas sure. Also ne ear the futur re Olympic Village V of ano, a tunnel complex was dug by b Korean slave s labore ers. A ten kilometer k tu unnel compl leted the Naga comp plex.[80]Thi iscomplexw wasalsoused dtohideport tionsoftheG GoldenLily. T TheAlliesha admadeitclearthatthey yintendedto oprosecute Japanesewa arcriminals in the same manner as Nurem mberg. How wever, unlike e Germany, only a few generals an nd iralswereev verconvicted d.Thearchiv vesinJapanh hadvanished d.Alsounlike eGermany,th he admi Unite edStatestoo okexclusivec controloverJapan,unlike ethefourzonesinGerma any.Presiden nt Trum man appoint ted MacArth hur as the Supreme Commander. C For six ye ears after th he surre enderofJapa an,MacArthu urheldvirtua allyunchalle engedpower.AsSupreme eCommande er, he ig gnored the Far F Eastern commission n of eleven nations. n Mac cArthur had the power to t refor rm the country, but inst tead left it in n the same hands h that bombed b Pear rl Harbor. Th he Genera al Douglas only reformimplementwas thesuccessf fullandrefor rmthatwen ntaheadbefo oreitcouldb be Mac cArthur ked.Washing gton,DCagainwasatlea astpartiallyr responsiblef forthelackofreforms.Th he block liber rals in Washington want ted reform, while w the co onservatives blocked all reform effor rts. The conservative Dem mocrats and the Republicans held Congress C unt til the 1946 6 election when the Rep publicans re egained a majo orityofseats, ,puttingCon ngresssolidly yintheconse ervativecam mp. T Therewereg greatplansfo orreformssu uchasthedi issolutionofthezaibatsu u,conglomera ates,banking greforms anda anewconsti itution,aswellasrestitu utionpaymen ntstonationsravagedby yJapan.Noneoftheseplanswere ever implemente ed. MacArth hur killed th hose plans and a was soon backing away from punishmen nt of war minals.Topro otecttheruli ingelite,Mac cArthursoon nbannedalllabordemonstrationsandcanceled theright crim oflab borunionsto ostrike. Justasthede enazification nofGermany yhadbeensa abotaged,th hedemocratizationofJap panwassabo otagedby Arthurandh hisstaff,with hadditional helpcoming gfromthefo ormerambas ssadortoJap pan,JosephG Grew,and MacA form mer President t Herbert Ho oover. Grew had been am mbassador to t Japan, app pointed to th he post by Hoover H in 1932 2 and was acting a Secretary of State in 1945. Hi is wife was a grand niec ce of Commodore Perry y and her moth her was a Ca abot. Grew was w from the e top society y of Boston and a was dea af to those beneath b his stature s in socie ety.Grewsfa amilyhadlon ngtimetiestoAsia.TheG Grewshadbe eenbankerswhohadund derwrittenth heopium clipp pershipsofth he1800s. G Grew had started sabota aging the de emocratizatio on of Japan during the war. During g the war, Grew held priva atetalkswith hJapansam mbassadortoSwitzerlandandpromise edthattheU UnitedStates swouldnotp prosecute Hirohitoandthat thewouldb beallowedto okeephisthr rone.Sucha promisewa asadamantly yopposedby yboththe seveltandth heTrumanad dministrations,whichbo othcalledfor runconditionalsurrende erandprose ecutionof Roos war criminals. Grew, G however, knew he had the bac cking of som me of the mo ost powerful l figures in American A ticsandhigh finance.He leftituptoB BonnerFelle erstoseeto it.Fellerswa asaformerO OSSagentatt tachedto polit MacA Arthurscom mmandwhoh hadbeenstat tionedinCai iroin1941.W Whilestation nedinCairot toobserveth heBritish oper rationsinNo orthAfrica,h hetransmitte edreportsba acktohissup periorsusing gtheblackc code.TheIta alianshad brok ken the black k code and Rommel wit thin minutes s of Fellers transmissions knew the e positions of o British force es.Afterbein ngtransferredtothestate esforabrief fperiod,Felle erswasattac chedtoMacA Arthurscommand. T groundw The work for sab botaging the peace in Jap pan had bee en laid out by b Grew and d Hoover. Fellers was frien nds with bot th and had acquired a a reputation of f an expert on o Japan. He e had also been b statione ed in the Philippinesinthe e1930sandhadmadefr requenttrips stoJapanduringthattim me.Hooverus sedFellersduringthe upation of Japan to conv vey ideas to MacArthur. MacArthur used u Fellers in turn to push p his pre esidential occu ambi itionstoHoo overandtheRepublicanh hierarchy. A AsPresident, ,Hooversho owedlittleco oncernaboutforeignaffa airs;howeve er,afterhisd defeatandas sthewar cloud dsdescended donEurope, ,hetookana activeinterestinforeignaffairs.In19 938,HoovermetwithHit tler.Even atth hislatedate, Hooverstill wouldhave ealignedthe countrywit thHitlertod defeatStalin.Hewasalso oafriend withJapanesero oyaltyfromh histimespen ntinChina.H Hooverwant tedJapanto beaconserv vativePacific coutpost, stron nglyopposed dtocommun nism.Hewan ntedJapanto obealliedw withtheUSandtoactas anAsianbas seforthe

RepublicanPartyanditsWallStreetcronies.Oncehecouldcleansetheemperorofanyguiltoverthewar,he couldcleansethegovernmentandJapanesefactorieswouldbehummingagain. HooversandGrewsplantocleansetheemperorandtheJapanesegovernmentofanywarcrimeshadtobe keptsecret.TherewerestillfartoomanybitterwarmemoriesfromPearlHarbor,theBataandeathmarchand Japanese forced labor camps. As late as 1945, Congress had voted that Hirohito should be tried as a war criminal. The cleansing process was engineered by Fellers and another Grew protg, Max Bishop. First, to discover the true extent of Hirohitos guilt, they questioned Japanese officials and indicted war criminals in secret.Onceallthefactshadbeenassembled,theysanitizedeachincriminatingbitofinformationbysuborning witnesses.Beforethetrialscouldbegin,severaladversewitnessesconvenientlydied.AmericanPOWsontheir wayhomewereforcedbyUSintelligencetosigndocumentsforbiddingthemtotalkabouttheharshtreatment theyreceivedatthehandsoftheJapanese. WhileMacArthurwasquietlytryingtostopthetrials,hereceivedabluntreminderfromtheJointChiefsto get serious about bringing the emperor to trial. Despite such orders, MacArthur would not permit a trial of Hirohito. MacArthur even put Hirohito on the public relations circuit, showing him shaking hands and portrayinghimasagreatpacifist.BehindthescenesMacArthurandFellerswerehardballinganyonenotfalling inlinewiththeopinionthatthewarwasthefaultofthemilitary. MacArthurslistofwarcriminalswasremarkablyshort;of300investigated,only28appearedbeforethe court.Onlysevenwereexecuted.AllofthosehungwereChoshuandnotSatsuma.Thismayhavebeenapayoff totheroyalcourtfromalongstandingfeud,datingbacktotheearlydaysoftheMeijiRestoration.Evenpost war maps omitted the name Choshu after renaming the prefecture Yamaguchi. Chief prosecutor was Joseph Keenan;theelevenmemberpanelofjudgesconsistedofajudgefromeachAlliednation.Someofthecriminals high on the list were granted pardons arbitrarily. For instance, the British decided not to prosecute a naval officerthatorderedthemachinegunningof600Britishsailorstryingtostayafloataftertheirshiphadbeen sunk.MacArthurorderedthatnotasinglebitofinformationaboutbiologicalwarfareandUnit731beadmitted inthetrials.[81] While Herbert Hoover kept Fellers and MacArthur busy in Japan, and nursing MacArthurs political ambition,heguidedGrewstateside.AttheendofthewarGrewresignedfromtheStateDepartmentandmoved toWallStreetwherehebecametheleadingspokesmanfortheJapancrowd.Grewbecamethecochairmanof the American Council on Japan (ACJ). The ACJ was a political action committee formed by wealthy conservativesimmediatelyafterthewartolobbyWashingtonandtofightanyeffortstoreformJapan.TheACJ wasbackedby Newsweek,anewsmagazinefoundedin1937byAverellHarriman.Hisbrotherwasadirector. While Harriman was equally guilty in supplying Hitler before the war, he is normally associated with the DemocraticParty. NewsweeksproJapanesestancehadhisblessing.HisroleasaleadingfunderofDemocratic causesobviouslycameatacost,ashewaslookingoutforhisfinancialinterestsandthoseofhisclients.The magazine hailed the Wall Street vision for Japan. Chief organizers for the AJC were Harry Kern, Newsweek foreign editor; Compton Pakenham, Newsweeks bureau chief in Tokyo; and James Kauffman, a New York lawyerwhoservedtheinterestofGeneralElectric,StandardOil,Ford,NationalCashregister,OtisElevator,and DillonReedinJapan.[82] Grews cochairman at ACJ was another agent of Herbert Hoover, William Castle. Castle was a wealthy plantation owner from Hawaii and a former ambassador to Japan. The reader should note that ambassador positionsatthestatedepartmentwereregardedbythewealthyastheirownprovince.Grewsassistantatthe ACJ was Eugene Dooman, who was raised in Japan. They regarded it their mission to stop any excesses in reformingJapan.Rightwingbusinessleaderswerecarefultodenouncecartelsandmonopoliesinprinciple,but foughtvigorouslyagainstanyefforttobreakupJapaneseconglomerates.Theylookedtowardrestoringtrade with Japan and saw that Japan had Asias only industrial base. Once the financial elite of Japan could be restoredtopower,thequickerbusinesscouldresume. In the summer of 1947, Kauffman visited Tokyo on the behalf of Dillon Reed and made a personal assessmentofTrumansplantobreakapartthe zaibatsu.Trumansplanswereclassifiedsecret.However,the documentswereleakedto NewsweekbyUndersecretaryofDefenseWilliamDraper.Thereadershouldrecall that William Draper played a prominent role in sabotaging the 4Ds program in postwar Germany. In December,asthenationwasgearingupforthepresidentialelection, Newsweekbegantodenouncetheoverall planforJapanascostly.InCongress,theattackwasledbyRepublicanSenatorWilliamKnowland,awealthy newspaperpublisherfromCalifornia.KnowlandclaimedthattheTrumanpolicyonJapanhadbeenwrittenby communism, paving the way for Joe McCarthy. Knowland and Congressman Walter Judd, a Republican from

Minnesota,ledtheChinalobbyonCapitolHillandblamedthelossofChinatocommunismonTruman.Herbert HoovermeanwhilecontinuedtoleadMacArthuronabouthischancesofbeingnominatedfortheRepublican ticket.MacArthurwasparticularlysensitiveto Newsweekschargesofcommunism.Thosechargesenragedthe generalandhehaltedallfurtherimplementationofthereformprogram. The final deathblow for reform in Japan came early in 1948. In February, William Draper and Percy Johnston, a Wall Street banker, toured Japan to review the policy. Johnston was chairman of Chemical Bank, whichhadalongtimerelationshipwithMitsuiBank.Theoutcomewaspredictable.Oftheoriginallistof325 Japanesecompaniesthatweretobebrokenapart,only20remainedontheDraperJohnstonlist.Notasingle Japanesebankwouldberestructured.TheJapanesebankschangedtheirnames,asaprecaution,andhidtheir pasts. By1952whentheoccupationended,allleftistshadonceagainbeenpurgedandtheconservativeswerein controlofJapan.TheemperorsfortunestilllayunderthewatersofTokyoBayandinotherlocations.Thefirst recoveryofaportionoftheGoldenLilyisknownastheSantaRomanarecovery.Inthewaningdaysofthewar inthePhilippines,theJapanesewereobservedtobetransportingheavybronzecasesandhidingtheminacave by Filipino guerillas. An OSS major was with the group that observed the burial. After finishing hiding the treasure in the cave, the entrance was dynamited shut and concealed. The OSS agent reopened the cave and foundthecasestocontaingold. Followingthewar,between1945and1948,thegoldwasrecovered.TheoperationwasknowntoWilliam Donovan,MacArthur,Fellers,EdwardLandsdaleandHerbertHoover.LaterAllenDullesknewoftheoperation. Donovan and Landsdale were assigned the recovery. No attempt was ever made to return the gold to its rightful heirs. Instead the gold was deposited in 176 bank accounts in 42 different countries. It became the basis of the CIA off the books financing. This financing was done by issuing gold certificates to influential people,bindingthemtotheCIA.OneaccountinLandsdalesnameintheGenevabranchofUnionBanqueSuisse contained20,000metrictonsofgold.Someofthebullionwassquirreledawayforprivateusebytheinsiders. DocumentsconfirmthatoneofthelargestaccountswasinthenameofMacArthur. OtherdocumentsindicatedHerbertHooverhadanaccountcontaining$100millioningoldbullion.Onecan becertainthatHooversdeepconcernoverJapanwasbasedonhisabilitytosmellabigpayoffingoldfromhis previous experiences in China and Australia. The reader should recall from an earlier chapter that the two things Hoover was good at were running a boiler room operation and stock scams in gold stocks. The large holding of gold by Hoover was confirmed after his death. After his death his son sought out government approvaltodisposeofalargesumofgoldbullion.ThelargeaccountsofMacArthurandHooversuggestthatthe cleansingofHirohitocameatahighprice.[83] EdwinPauley,arichoilman,hadbeendispatchedtoJapantoassessJapansabilitytopayreparations.The readershouldrecallfromearlierchaptersthatPauleywasaDullesplantinsidetheadministration.Pauleywas informedofthe$2billiondollarsofgoldinTokyoBayshortlyafterhisarrivalinJapan.Yet,Pauleyconcluded Japan was in shambles and could not pay its fair share of expenses of the American occupation, let alone to anyoneelsesrebuildingefforts.LargelyduetoPauleysassessment,Japansbillforreparationscametoonly onebilliondollars.Ifsuchasumhadbeendistributedequallytothenextofkinofthe20millionpeoplewho diedasaresultofJapansaggression,eachwouldhavereceivedthepaltrysumof$30.Intheimmediatepost war scramble for reparations, the wealthy in Japan, who had profited from the war and hid their profits, submittedtheirownclaimforreparationstotaling$5billion.Manyoftheseclaimswerepaid. Insteadofcashpaymenttocountries,Japanwasorderedtoprovideindustrialequipment.Evensuchtoken payments were suspended by Washington when the equipment was claimed as collateral for bonds issued beforethewarbyAmericanfirms.TwoofthelargestAmericanfirmsmakingsuchclaimswereMorganBank andDillonReed.By1950,JapanowedMorganBankover$600millionininterest,penaltiesandprincipaljust forthe1924earthquakeloans.In1951,JapanarrangedforrefinancingoftheloansthroughSmithBarneyand Guaranty Trust. By 1952, Japan had repaid all prewar investments by American corporations and compensated them for all property damage. While all prewar Japanese bonds held by companies affiliated withtheACJwererepaid,companiesnotaffiliatedwerenotsofortunate.Thereadershouldponderlongand hardhowacountrysoshatteredwasabletopayoffsuchacolossaldebtinsuchashorttime.[84] The issue of Japans compensation is still an issue. In 1998, one month before Prince Akihitos visit to Britain,Congresspassedthefollowingresolution: WhereasthegovernmentofGermanyhasformallyapologizedtothevictimsoftheHolocaustandgone to great lengths to provide financial compensation to the victims and to provide for their needs and

recovery; and Whereas by contrast the Government of Japan has refused to fully acknowledge the crimesitcommittedduringWorldWarIIandtoprovideReparationstoitsvictims:Now,therefore,be itResolvedbytheHouseofRepresentatives(theSenateconcurring),ThatitisthesenseoftheCongress thattheGovernmentofJapanshould: 1. Formally issue a clear and unambiguous apology for the atrocious war crimes committed by the JapanesemilitaryduringWorldWarII;and: 2. Immediately pay reparations to the victims of those crimes including United States military and civilianprisonersofthepeopleofGuamwhoweresubjectedtoviolenceandimprisonment,survivors oftheRapeofNankingfromDecember1937,untilFebruary,1938,andthewomenwhowereforced intosexualslaveryandknownbytheJapanesemilitaryascomfortwomen.[85] OneintriguingtheorythatshedsadditionallightonthefateoftheGoldenLilycomesfromDavidGuyatt,author andresearcher.[86]Guyatttheorizesthatthetotalminedsupplyofgoldhasbeendeliberatelyunderstatedand thatthesupplyofgoldismuchlargerthanthe140,000tonsreported.Thisadditionalsupplyofblackgoldis controlledbyextremelyrightwingfascists.OnereportedtraderinthismarketisthesonofGeorgeBush. Histheoryrevolvesaroundtheyear1954.LondonBullionMarketwasshutdownin1939attheonsetof war. Even before the war, Englands gold reserves were extremely low. The war was an additional drain on thosereserves,asevidentbythedestroyertradeandEnglandsrelianceontheLendLeaseprogram,aswellas the concession of Portugal to accept the pound in trade rather than demand gold as detailed previously. In short,Englandwaswalkingamongthefinanciallydeadatthewarsend.However,in1954,just9shortyears fromtheendofthewar,apparentlyEnglandhadacquiredenoughsupplyofgoldtoreopenthebullionmarket. TheBilderberggrouphelditsfirstmeetingin1954.TheBilderberggroupwasfounded by Prince Bernhard of the Netherlands and former officer in the SS. Bernhard had also worked in I.G. Farbens notorious NW7 group, which served as spies for the Third Reich. The Prince is also associated with the Knights of Templar through its Dutch variety. Bernhard was appointed to govern the Dutch order in 1954. John Foster Dulles was reported to have been one of the most helpful Americans in establishing the Bilderberg group. Incidentally in 1954, Dulles testified in favor of a bill designed to return vested enemy assets such as GAF to their previous owners. From the beginning, the Bilderberg group had several members of the intelligence community associated with it. Sir Colin Prince Bernhard Gubbins,BritainswartimeSOEhead,wasafoundingmember.WalterBedellSmithwasa cochairmanofthegroupintheUS. Theyear1954wassignificantinanumberofotherways.AmemorandumofagreementbetweentheCIA and the Justice Department that allowed the CIA to police itself was dated February 18, 1954. In effect it allowed the CIA free reign as the Justice Department would turn a blind eye towards matters of national security.Anothernoteworthyaspectof1954wasthemergeroftheSchroderBankandtheWaggfamilytoform thecitybasedmerchantbank,J.HenrySchroderWagg&Co.WackenhutCorporation,acorporationwithdeep tiestoboththemilitaryandintelligencecommunitieswasformedin1954. However,moresignificantly,1954wastheyearthattheUShadforecastthattheSovietUnionwouldhave thermonuclearweapons.Withtheirgreaternumericalstrength,amassivemilitarybuilduphadbeenlaunched costingtaxpayersbillionswhilethecorporationsreapedfatprofits.ItwasalsotheyearinwhichGeneralJames Doolittle concluded his study of the CIA and reached the conclusion that the agency was not as adept as the KGB.MKUltra,themindcontrolprogramoftheCIA,beganin1954. Perhaps the most noteworthy of all events in 1954 was a strange audit of the gold supply in Fort Knox. Everybar,totalingalmostthreequartersofamillion,wasweighedsingly.Moreover,everyhundredthbarwas drilledandasmallsampletakentobeassayed.Nosingleassayerwasused,sotheextentoftheauditcouldbe deduced.Noreasonableexplanationforsuchadetailedandsecretaudithasbeenuncovered. Apartiallistofsignificanteventsof1954follows:AfterlearningabouttheJapanesetreasuresinNovember 1953,MarcosstartsdiggingforgoldinthePhilippines.FredMeuser,LockheedsEuropeanDirector,transfers to Geneva to live, this event figures in later. The FourPower Treaty is signed in Paris to terminate the occupationregimeinGermany.GermanyjoinsNATO.GenevaAccordreachedregardingpeacebetweenFrance and Indochina. Additionally 1954 was the year that Edward Landsdale arrived in Vietnam to take over the opium trade. The Israeli Mossad and US CIA formed an intelligence partnership. The Nazi gold was moved fromArgentinatothePhilippinesin1954aftertheMossaddetermineditwaslocatedinArgentina.

G Guyattprovid desamoree extensivelist tofeventsre evolvingaround1954th hanprovided dabove.How wever,the essen ntialevents tosupporth histheoryha avebeencov veredandw wecannowb begintolook kmoredirectlyatthe Gold denLilyandi itsrecovery. Researchdo onebytheSe eagraveshav vefound172 2treasuresitesoftheGo oldenLily inth hePhilippine es.Oneoftho osesites,aud ditedbyJapa aneseaccoun ntants,conta ainedastagg gering777bi illionyen orth heequivalent tof$194bil llion.[87]Est timatesfora all172sites comestoas staggering$100trillion. Overthe years, numerous s right wing groups have e aided and abetted the CIA by laundering plund dered items from the denLily.Asal lreadynoted d,oneofthes siteswasrecoveredin19 945. Gold O One of the latest l recove eries which raised scan ndalous head dlines in 19 994, involvin ng form mer UN Secre etary Genera al Kurt Wald dheim, was part p of an op peration invo olving the CI IA and former Gene eral John Sin nglaub. The operation dubbed d Nipp pon Star had d recovered in etrictonsof goldfromth hePhilippines.Theteam mwasheaded dbySinglau ub, excessof500me veinrightwi ingextremist tgroupsand dpoliticalint trigueinCentralandSout th whoisveryactiv ub was part of the milita ary/CIA inte elligence com mplex before e retiring. Th he America. Singlau mconsistedo ofGuntherR Russbacher,a aCIAagent, fiveotherAm mericansandahandful of team Filipinos. The re ecovered go old contained d Nazi gold and gold stolen s from China by th he Genera al John K. nese.KurtW Waldheimser rvedasthei intermediary ybetweenth heAustrianN National Ban nk Japan Sin nglaub andP PhilippinePr residentRam mos. W Whatisintri guingabout thissale,be esidestheex xtraordinary size,isthis operationw wasalsoknow wntothe Knig ghtsofMalta.Adocumen ntfromtheK KnightsofM Maltaentitled dTheLands sdaleProject treferences500MT. More eover, it ref fers to a me eeting of Wa ashington pe eople to disc cuss the ram mifications of o another Landsdale L proje ect.Whilean numberoffo ormerintellig genceofficial lsandmilitaryleadersar reknownme embersofthe eKnights ofMalta,theirkn nowledgeofa asecretCIAoperationra aisesfurtherquestions.W Whoelsewas sinonthisop peration? at were the ramifications r s of the seco ond Landsdal le Project? Was W the Vati ican a part of o this operation? For Wha nowthosequesti ionsandothe erswillhave etogounans swered. T Thestatedre easonforthe etransfertoA Austriawastoprovideb backingforth heEurodolla ar. How wever, the presence p of Waldheim as an inte ermediary only o raises questions of conn nectionstoN Nazisandfascism.Evenb beforeWaldh heimtookhi isofficeinth heUN,theCI IA and military inte elligence mu ust have kno own his form mer backgrou und as an SS S officer. It is nceivable that the US di id not know w of his back kground since he was in an automat tic incon arres stcategoryfo ollowingthewar. O One of the earliest e docu uments attes sting to Mar rcos recovery of the tr reasure of th he Kurt Waldheim W Gold denLilyisag goldcertifica atedated195 56.Thiswas beforeMarc coshadbeco omeamember ofth hesenate.Thecertificatewasissuedb bySwissBan nkCorporatio on(Schweize erischeBankGesellschaft MHC)for a de eposit of 7,1 120 metric tons t of gold. Marcos collaborated with w Japanes seAmerican investigator r Minoru Fukimatsu.Toget thertheyint terviewedov ver300witne essesandsomehowacce essedsecretJ Japanesegov vernment rminingthelo ocationsofth hetreasure. archivesindeter A Anothergold dcertificatew wasissuedo onJanuary17,1963byU UnionBanko ofSwitzerlan nd toA AdnanKasog gi,aMarcoscrony.Khas shoggisnam mewasmissp pelled,butth hatisoftenth he case inthesecer rtificates.Kha ashoggiwas aLockheed agentandp partnerofYo oshioKodam ma. ama was a Ja apanese rear r admiral du uring the wa ar and also a a member of f the Japanes se Koda yaku uzacrimeclan.Kodamaw waschargedw withshippin ngtheloottothePhilippin nesduringth he war. This gold ce ertificate wa as issued just before the first known n bribe was paid p to Princ ce nhard by Loc ckheed. Lock kheed was be eing used by y the CIA to funnel mone ey worldwid de. Bern More eover, Lockh heeds Euro opean Sales Director, Dutchman D Fr red Meuser, , had been a mem mber of Princ ce Bernhard ds wartime air a force squ uadron. An additional a m member of th he Yoshio o Kodama Lock kheedbribet teamwasCIA AofficerNic cholasDeak. Deakhadfoundedamon neybrokerin ng firm that was us sed to funne el money to Kodama. De eaks compa any later me erged with Lionel L C. Per rera, who neyfirmofPerera,Manfr ra&Brookes s.Pererawas sattachedtotheChiefofMilitaryGov vernment foundedthemon nceOfficeattheThirdAr rmysheadqu uartersinGe ermanyatwa arsend,whe ereheinterv viewedColon nelRauch. Finan Rauc chwastheSS Scolonelwho owasrespon nsibleforhid dingtheReichBankgoldreserves. W With so man ny figures in nvolved direc ctly with bot th the Nazi treasure and d the Japane ese treasure, , such an even ntastheLock kheedbriber rycannotbedismissedas smerehappenstance.Ho owever,theintriguedoes snotstop there e. Marcos, Kodama K and Singlaub we ere all memb bers of the World W AntiCommunist League, a ri ight wing extre emistgrouppopulatedw withknownw warcriminals sandfascists s.UndertheReaganadm ministrationth heWorld

AntiCommun A nistLeaguew wasgranted dtaxexempt status.That traisesthep possibilitythatthe W WorldAntiC CommunistL Leaguewasb beingusedas safrontfort theCIA.More eover,theint trigue c continues. Guyatt goes on that a le etter from Henry H Kissin nger was se ent to Marco os on T Trilateralnot tepaper.Kiss singerdemandedthatMarcossell63,321tonso ofgoldto2000US a andEuropean nbanksadm mittedlycontr rolledbythe eTrilateral.T Theletterwa asdatedFeb bruary 2 1986. Ma 21, arcos refused and was overthrown o as a result of o his refusa al. Imelda Marcos, h however, cho ose to sell the t gold to avoid a crimin nal charges and a the gold d was transf ferred a aboardtheU SEisenhowe ertotheUnit tedStates. Fe erdinand Marcos Additiona al evidence of Marcos recovery r of the t Golden Lily L treasure e comes from m the F Filipinonews spaper, The Inquirer.In 1998thepaperpublishe edanarticle entitledSoldiers o ofFortune.T Thearticlere evealedthat allmembers softhe16th hInfantryBat ttalionhads signed a ajointaffidav vitdeclaringthat,togethe erwithmem mbersofthe5 51stEnginee eringBrigade e,they h recovere had ed 60,000 metric tons of f gold from thirty t sites between b 197 73 and 1985. . Both u unitsoperate edinstrictse ecrecyunder rMarcoshen nchmanGene eralFabianV Ver. Whether Guyattsthe eoryofasecr retgoldtreat tybeingreac chedin1954 4iscorrecto ornot, it is obvious from his fin ndings and those t of the Seagraves th hat consider rable treasur re has b been recove ered from th he Golden Lily L ending up in the hands of those involv ved in intelligencea andrightwin ngcauses.Wa asthisgoldp puttoprivate euseortheu useoftheCIA A?Its I Imelda Marcos m mostlikelyth hataportion nwasskimmedforprivat teusewhilethebulkofth heremainde erwas u usedtofund clandestine CIAoperatio ons.Itisinte erestingtonotethatthos seconnected dwith t secret re the ecoveries, He erbert Hoove er, MacArthu ur, Allen Dulles and othe ers, were the e very o onesthatwo rkedthehar rdestinderailingtherefo ormofJapanandNaziGe ermany.Thei irsole o objectivewa storeestabl lishthecarte elsandgeto onwithbusin nessasusua alandtohell lwith w crimes. Moreover, it war t seems cert tain that a la arge portion of the Nazi treasure an nd the G Golden Lily was w used in rebuilding Germany G an nd Japan with h the explici it approval of o the Ge eneral Fabian Ver r rightwingin America. elargestpor rtionsofthe Nazihoarda andtheGold denLilyrema ainsshroude edunderafo ogofmystery y Whilethe a andcontrove ersy;agoodd dealisknow wnaboutsma allercachest thathavebee enrecovered d.Untilrecen ntlylittlewas s k known about t Americas acquisition of o treasures from the war. Much my ystery still re emains and undoubtedly y m more caches will surface e with additi ional time. Although A Con ngress passe ed legislation n requiring the t return to o G Germany of much of th his material, the bulk of o it remains s stored in the America an archives and private e c collections. T legislatio The on has been n supported by court rulings. Only after a Clinton n authorized Eizenstat to o r reachasettle ementonunc claimedasse etshastheNe ewYorkFederalReserve eadmittedto oholdingtwo otonsofNaz zi g gold.Thereh hasbeenlittle eefforttoret turnthewar rbooty.

P 11: Nazi Gold Part d and the United States

Since the fall of the Soviet Union, th S here have be een several reports about treasures s looted by the t Russians s. N Numerouspa aintingstake enfromGerm manyareinth hepossessio onoftheHermitageMuse euminSt.Pe etersburgand d t thePushkinM MuseuminM Moscow.Nex xttonoonek knowsthattheUnitedSt tateshadits ownprogram mofplunder r. T program The m was direct ted by army officer Gord don Gilkey. Gilkey must t have been a busy man n in postwar G Germany,as attestedby thefactthat tapproximat tely11,000p paintingsfro omGermany arestoredinpermanen nt r retention in the Pentago on. The most t valuable of those pain nting are stored in the vault v at the US Center o of M MilitaryHisto ory. Thelisto ofofficiallootersranged fromgovern nmentofficia alstoprivate eindividuals. .HerbertHo ooversfamed d g globaltourto orelievehun ngerinthep postwarwas sacoverfor raprivatem missiontoloo ottohiscont tent.Hisstaf ff p plunderedth housandsofitemsfortheHooverWar rLibraryatS StanfordUniversity.OneitempillagedwasJoseph h G Goebbelss7, ,000pagetyp peddiary.Do oubledayrea achedanagreementwith hHoovertop publishthed diarypartially y f forthesumo of$400,000, whichcould dhaveserved dbetteruse infeedingth hechildreno ofwartornco ountries.The e o originaldiary yisstillinpo ossessionofHooverslibr rary.Additio onally,Hoove erpillagedalargecollectionofpapers s a anditemsbe elongingtoH HeinrichHim mmlerandthe eNaziParty. .[88]Nodou ubtHooversawtotheremovalofany y incriminating gfilesinGerm manyandJap pan,suchashiscollabora ationwithto opNazisduringthe1940election. While it would be un nreasonable not to expe ect some loo oting by a fe ew GIs in the e face of suc ch enormous s t temptations, controlover rlootingwas shamperedb bytheswift rotationoft troopsoutof fGermanyaf fterthewars s

end.Nevertheless,itappearscertainthattherewasanorganizedefforttosabotagetherecoveryandreturnof thetreasurestotheirrightfulowners. Thepillage wasnotconfinedtojusttheenlisted men.TheexampleofthelootingoftheBraunesHausin Munichwillshowthatofficerswerenotonlyguiltyoflooting,butalsoaidedthelootingbyenlistedmen.The threebuildingcomplexwashoneycombedwithtunnels.The1269thCombatEngineerBattalionwasassigned to the T Force and charged with guarding the complex. The tunnels were full of looted items consisting of silverware, valuable paintings, party records and other valuables. Various other units were also assigned to guardthecomplex.PrivatePolskiandPrivateFraserenteredthecomplexanddiscoveredseveralenlistedmen andofficerspocketingsilverwareassouvenirs. Theguardsdidntseemtomind.PolskijoinedinpickingoutasetofsilverwarewiththeinitialsofAHand the swastika on each piece. Fraser picked out an 80piece set of silverware. The two returned to their headquartersandshowedtheircommandingofficer,CaptainMcKeetheirbooty.Aftercarefullywrappingtheir booty in packages the privates had the captain write on the packages Censored by Captain McKee. Polski mailed his booty home to St. Paul, Minnesota, Fraser also mailed his loot home.[89] The looting continued unabateduntilthePropertyControlOfficerorderedthecomplexringedwithbarbwireandguardsonJune10. The treasures of all the top Nazi officials were looted to some degree. Gorings vast art collection was hidden in several locations. It was simply too vast to have it all transported to a final cache, Some of it was buriedatCarinhall,Goringspalatial estate andhuntinglodge,astheRussianadvance threatenedtooverrun the area. The remainder was transported by train to Veldenstein, Gorings castle. As the Allies approached Veldenstein on April 7, 1945, Goring once again ordered the treasure to be moved by rail to Berchtesgaden, HitlersretreatintheBavarianAlpsandcenteroftheredoubtarea.ThereGoringwasabletocommandeerfour trains. TheeasewithwhichGoringwasabletofindfourtrainsavailabletohiminthefinaldaysofthewarwas largelyduetotheincredibleandsurrealsituationsurroundingtheredoubtarea.Duringthefinaldaysofthe war,14,000freightcarsarrivedinthearea.ManywereloadedwithsuppliesandequipmentfortheNazisfinal stand in the Alps, others simply loaded with treasures collected by top officials. Wounded soldiers lucky enough to find a horse and cart filled the roads, other wounded soldiers laid by the roadside, unable to find transportation to a hospital, dying an agonizing death in the mud and snow. In an effort to keep some of GoringstreasureoutofAlliedhands,fivefreightcarsladenwithtreasureweresenttonearbyUntersteinasthe Allies closed in. The remainder that had not been safely stored away was left sitting on the rail cars; there townspeoplelootedeverythingtheycouldfind. The101stAirbornedivisionliberatedtheareaandsoonwasawarethattheyhadstumbledacrossGorings artcollection.Afterlocatingahiddensideroom intheundergroundcommandpost,theentrance wasblown opentoAladdinsCave.Soldiersdidnothesitatetotakepartofthetreasure.OnesoldierfoundGoringsguest book from Carinhall. The book contained many signatures of distinguished guest including that of Herbert Hoover.[90] OneofGoringsfieldMarshallbatonswastakenbyGeneralPatch;uponhisdeath,itwasplacedintheWest Point Military Museum. Lieutenant Eckberg took Gorings second baton, along with other items and mailed themtohismotherinChicago.EckbergremainedinGermany.Hismothersoldagoldmedalliontoajeweler, whothenplacedanad.TheUSCustomsreadtheadandrecoveredthemedallion,thebatonandtheotheritems thelieutenanthadmailedhome.ManyotherpersonalitemswerepillagedbysoldierssuchasGoringsdagger and sword. However, Lieutenant Colonel Willard White was probably the most prolific looter at the Bertchesgaden. He helped himself to a large collection of Hitlers silverware and crystal items mailing them hometohiswife,thesisterofLadybirdJohnson.[91] Another avid looter was Lieutenant Colonel William Brown. Browns unit was assigned to the city and countyofWeimar,BuchenwaldandthecityofApolda.BrownscollectingsoonledtohisquestioningonJune 27,1945.Hisresponsetothestatementthatallpropertyfoundorconfiscatedinenemycountrybelongedto theUSgovernmentfollows. Well,IamsurethatIdidntknowthatbecausethegeneralimpressionatthattimewasthatwhatever people picked up ... that was immediately after the combat phase ... whatever people picked up they wereentitledto.YouknowaswellasIdothattheresbeenagooddealofthatgoingon,andtherehas beenagooddealofpickingupstuffabandonedbyalltroops.AnythingofthatkindthatIwasengaged in there was done with the idea that whatever things of that sort were found where there was no claimantwhateverbelongedtothefinder.TowhatextentmayIaskofftherecordwell,werentthey,if

they were found without any claimant? If you find the stuff lying abandoned, doesnt that belong to you?[92] Brown was not honest in his response; many of the items he seized were taken from claimants, such as his lootingofstampsfromthepostoffice.ThepostofficewasorderedclosedlaterbyBrown.Afterreturningtothe UnitedStatesBrownlaterranforthegovernorofVirginiaontheRepublicanticket. The best known case of looting by American personnel was the theft of the Hesse Crown Jewels. The primaryinstigatorofthetheftwasCaptainKathleenNash.Nash,MajorDavidWatsonandColonelJackDurant, Nashs lover, found a fresh patch of concrete in the cellar as they were exploring the castle. They chipped through the concrete and found zinc lined boxes full of jewels. The trio removed the jewels from the tiaras, bracelets,etc.andsoldtheminSwitzerland.Inlate1945thetrioreturnedtotheUnitedStates.Inadditionto thejewelsandgold,thetriohadlootedsilverware,booksandhundredsofotheritems. InJanuary1946,thejewelswerereportedmissingbyamemberoftheHessefamily.TheArmysCriminal IntelligenceDivisiondeterminedtheextentofthetheftandsoonarrestedthetrio.DurantmarriedNashsoshe wouldnotbeallowedtotestifyagainsthim.Watsonwassentencedtothreeyearsinprison,butwasreleased afterfourmonths.HisfamilyownedalargeWestCoastgrocerystorechainthatapparentlyhadconnectionsto people in power. Durant was sentenced to fifteen years and released after six years. Nash, however, was describedasadifficultprisonerandservedherentiresentenceoffiveyears.Aboutonehalfofthejewelshad beenmailedtoNashssister. Nazi gold and treasures continue to be discovered. Recently the Roman Catholic shrine of Fatima in PortugalconfirmeditheldNazigoldbarsinthemid1980s.TheNaziinsigniawasfoundonfourbarsafterthe shrinerequestedthataPortuguesebankmeltthebars.Thebarsweresoldbetween1982and1986tofinance constructionwork.A1976bankstatementshowstheshrineheldfourNazigoldbarstotalingfiftykilos.Itis unknowniftheshrineheldmore.[93] AnotherNazitreasuresurfacedin1990. Thetreasureconsisting of medievalworks ofart,includinggold and silver crucifixes, rock crystal flasks, a beautiful silverreceptacle for keeping and displaying sacred relics calledareliquarywhichwasinlaidwithpreciousstonesandenamels,aliturgicalivorycomb,variouspriceless gifts belonging to the warlords who ruled the old states of Germany in the 9th and 10th Centuries, and perhapsthemostpricelessofallabeautifullyillustrated9thCenturyversionofthefourgospelsinagoldand silverbindingencrustedwithgoldandjewels.Thetreasurewasdiscoveredattheendofthewarinanunused minetunnelatQuedlinburg,afewmilessouthofMagdeburgineasternGermany. ThetreasurewasdiscoveredbyaUSArmylieutenantnamedJoeT.Meador,who,alongwiththreeother units, were assigned to guard it. Meador, however, had other ideas. He quietly removed the items piece by pieceandmailedthemhome.TheArmylaunchedaninquiry,whichquicklyendedwhentheareawasassigned to East Germany. After Meador died in 1980, rumors quickly spread of an impending find of a remarkable medieval artwork. In 1990, the four gospels surfaced, along with a 1513 manuscript valued at $500,000. Further investigation around Meadors hometown of Whitewright, Texas turned up the remainder of the hoard.[94] In1997,avaultwasopenedinSaoPaulo,Brazilcontainingmorethan$4millionworthoflootedproperty. Thevaultcontainedcash,goldbarsandjewelry.ThevaultwasheldinthenameofAlbertBlume,aGermanwho cametoBrazilbeforetheSecondWorldWar.BlumeallegedlyactedasabankerforescapingNazis.[95] In2001,USTreasurySecretaryPaulONeillhandedoveradozendrawingstothepresidentoftheBremen Museum.Customagentshadseizedthepaintingfouryearsearlier.Thedrawingswereamong1500artworks theBremenMuseummovedintoacastleoutsideBerlinin1943forsafekeeping.Soviettroopshadseizedthem. They first surfaced in 1993 in Azerbaijan, a former Soviet republic. The drawings were stolen in Azerbaijan. Four years after the July 1993 theft, a Japanese businessman, Masatsugu Koga, approached the German embassy in Tokyo offering to sell eight of the Bremen drawings for $12 million. By September 1997, Kogas negotiations with the museum had moved to New York City. A custom agent working undercover joined the museumnegotiatorinmeetingKoga.Kogawasarrested,butdiedbeforehecouldbesentenced.[96] ItwouldtakevolumestolistallofthevariousNazitreasuresthathavebeenuncoveredsincetheendofthe war. Undoubtedly more treasures will be located in the future. With the fall of the Soviet Union, more Nazi treasureswillsurfaceinRussiaandtheotherrepublicsoftheoldunion. Thequestionofvictimcompensationisstillhotlydebated.StuartEizenstat,appointedbyPresidentClinton, broughtmanyofthelawsuitstoafruitfulconclusion.However,muchcontroversystillremainsasvictimssneer

at the pitiful settlements for their time in concentration camps and forced labor camps. The Eizenstat study reachedfivemajorconclusionsonthequestionofNazigoldlistedbelow. 1. The Reichsbank knowingly incorporated into its gold reserves looted monetary gold from the national banksofothercountries.ThiswasaprimarymeansbywhichtheNazisfinancedtheiraggression. 2. Much of the gold passed through Swiss banks and then into other countries. The conversion of the Nazi gold into Swiss francs was the primary means by which the Nazis purchased war material from neutral countries. 3. ThetradewiththeneutralcountriesallowedtheNazistoprolongthewar. 4. Goldfromthevictimsoftheconcentrationcampswasmixedwithmonetarygoldandfounditswayintothe neutraltradingpartiesoftheNazis. 5. Thecompleterecoveryofthelootedgoldwashamperedbytheindifferenceonthepartofneutralnations andconflictingprioritiesandinactiononthepartoftheAllies. The reader is urged not to take the Eizenstat report as the final word on Nazi gold; other studies are in progress.General Motorshascommissionedone suchstudy.However,in theeyesofthiswriter,theGeneral Motors study has been compromised already by the selection of the lead investigator, author Henry Ashby Turner. The readershouldrecallfromchapteronethatTurnerwasthe authorofa bookthatwasextremely apologetictobigbusinessinaidingHitlertopower.Thefigurespresentedinthischapteraresubjecttochange asmoreinformationsurfaces. While the Gold Rush teams did an admirable job in locating the Nazi treasures in the first few days followingtheendofthewar,theprogramsoonbecamebeleagueredwithineptnessandcorruption.Inthecase of Nazi gold, there is no direct evidence of a systematic plan to sabotage the recovery of the Nazi treasures. However,thereisstrongevidencethatAllenDullesaidedtheNazisintransportingandconcealingtheirlooted treasuresinothercountries.InthecaseoftheGoldenLily,thereisampleevidencethattherecoveryandreturn of the gold looted by the Japanese was systematically sabotaged by high level intelligence officers, Herbert Hoover,andelitesfromWallStreet. ItisequallycertainthattherecoveryofNazigoldfromtheneutralcountrieswascompromisedatalmost every step by the objectives of the State Department and the military. From the latest information from Argentina, it seems certain that the Perons had an enormous sum of Nazi gold at their disposal. Powerful figureswithintheRepublicanPartyandbusinesscommunitypushedtheUnitedStatesintotheprecisetrapthe Nazis had planned for a comebackto instigate a war between the United States and the Soviet Union. The shootinghadhardlystoppedbeforetheprofascistelementswithintheUnitedStatesthathadopposedthewar underthebannerofisolationwereragingwarhawkscallingforawaragainsttheSoviets. Justice for the victims would be sacrificed, further recovery of the Nazi gold would be stopped, and all resourceswouldbeemployedinfightingtheredmenacetoprotectthesamedamnedcorporationsthatbuilt Hitlers war machine. The Nazi treasures squirreled away in neutral countries would be used to rebuild Germany as a bulkhead against the Soviets. The reader should recall from the previous chapter the World CommerceCorporation.WasthisshortlivedcorporationthefunnelthatpouredthegoldlootedbytheNazis backintoGermany? TheonedefinitivefactconcerningNazigoldisthatmuchremainstobelearned.Perhapsthefullstorymay neverbelearned.However,withoutthefullreleaseofalldocumentsfromthiserabynotonlytheUnitedStates andBritain,butalsobyallpartiesinvolved,includingtheVatican,thefateofthemissingNazigoldwillremain cloudedinafogofmysteryandintrigue.

Notes
[1] http://www.archives.gov/research_room/holocaust_era_assets/ research_plunder/nazi_gold_merkers_mine_treasure.html [2] NaziGold,TomBowers,HarperCollins,1997,p56. [3] http://www.gold.org/pub_archive/pdf/Rs23.pdf [4] http://www.learntoquestion.com/data/difficultneutrality.html [5] http://dns.usisisrael.org.il/publish/report/ngrpt.pdf [6] http://www.cia.gov/csi/studies/summer00/art04.html [7] UnholyTrinity,MarkAarons,JohnLoftus,St.Martins,1991,p277. [8] TheSecretWarAgainsttheJews,MarkAarons,JohnLoftus,St. Martins,1994,p79. [9] TheSecretWarAgainsttheJews,p86.

[10] [11] [12] [13] [14] [15] [16] [17] [18] [19] [20] [21] [22] [23] [24] [25] [26] [27] [28] [29] [30] [31] [32] [33] [34] [35] [36] [37] [38] [39] [40] [41] [42] [43] [44] [45] [46] [47] [48] [49] [50] [51] [52] [53] [54] [55] [56] [57] [58] [59] [60] [61] [62]

TheSecretWarAgainsttheJews,p110. TheSecretWarAgainsttheJews,p111. http://www.cia.gov/csi/studies/summer00/art04.html TheSecretWarAgainsttheJews,p139. UnholyTrinity,p234. http://www.cia.gov/csi/studies/summer00/art04.html MartinBormann:NaziinExile,PaulManning,LyleStaurt,1981,p23. MartinBormann,p132. MartinBormann,p136. MartinBormann,p139. MartinBormann,p151. MartinBormann,p152153. MartinBormann,p154. MartinBormann,p155. MartinBormann,p157. MartinBormann,p158. NaziGold,IanSayer,DouglasBotting,CongdonWeedOnc,1984,p10. NaziGold,p20. NaziGold,p2223. NaziGold,p26. NaziGold,p32. NaziGold,p74. NaziGold,p118121. NaziGold,p131132. NaziGold,p177. NaziGold,p192. NaziGold,p234. NaziGold,p215216. NaziGold,p232233. NaziGold,p285. NaziGold,p287288. NaziGold,p346350. NaziMillionaires,KennethAlford,TheodoreSavas,Casemate,202,p6974. TradingwiththeEnemy,CharlesHigham,BarnesandNoble,1983,p5960. NaziMillionaires,p8485. http://193.114.50.5/events/nazigold/ngold1.pdf http://www.copi.com/articles/nazibank.html http://dns.usisisrael.org.il/publish/report/ngrpt.pdf http://news.bbc.co.uk/1/hi/world/40519.stm http://www.usembassyisrael.org.il/publish/report2/rpt_9806_ng_portugal.pdf http://216.239.51.100/search?q=cache:_DrYE94qE8J:www.yad vashem.org.il/download/about_holocaust/studies/louca_full.pdf+portugal+nazi+gold&hl=en&ie=UTF8 http://www.usembassyisrael.org.il/publish/report2/rpt_9806_ng_spain.pdf http://www.usisrael.org/jsource/Holocaust/assets1.html TheRealOdessa,UkiGoni,GrantaBooks,2002,p2. TheRealOdessa,p22. http://www.usembassyisrael.org.il/publish/report2/rpt_9806_ng_argentina.pdf HitlersSecretBankers,AdamLebor,Citadel,1997,p29. HitlersSecretBankers,p140145. HitlersSecretBankers,p138139. HitlerssecretBankers,p5253. HitlersSecretBankers,p6364. HitlersSecretBankers,p106107. HitlersSecretBankers,p206207.

[63] [64] [65] [66] [67] [68] [69] [70] [71] [72] [73] [74] [75] [76] [77] [78] [79] [80] [81] [82] [83] [84] [85] [86] [87] [88] [89] [90] [91] [92] [93] [94] [95] [96]

http://dns.usisisrael.org.il/publish/report/ngrpt.pdf http://www.1939club.com/1939%20Meili1.htm TheTimes,Nazicampgolddispute,London,August21,1998. http://www.popmatters.com/film/reviews/s/stealingthefire.shtml http://www.txpeer.org/Bush/Polluters_Bet_On_Bush.html Aftermath:MartinBormannandtheFourthReich,LadislasFarago,Simon&Schuster,1974,p194. Aftermath,p203. Aftermath,p216. HitlersSecretBankers,p214. http://english.pravda.ru/world/2003/02/27/43768.html http://uboat.net/boats/u853.htm http://uboat.net/boats/u530.htm http://www.fletel.co.uk/press.html http://stonebooks.com/archives/000618.shtml TheYamatoDynasty,Sterling&PeggySeagrave,BroadwayBooks,1999,p172. TheYamatoDynasty,p184. TheYamatoDynasty,p186187. TheYamatoDynasty,p198. TheYamatoDynasty,p202218. TheYamatoDynasty,p230. TheYamatoDynasty,p294295. TheYamatoDynasty,p296297. TheYamatoDynasty,p293. TheSecretGoldTreaty,DavidGuyatt,2000,Solari,Inc.(CDdistributor). TheMarcosDynasty,SterlingSeagrave,MacMillan,1988,p139. NaziPlunder,KennethAlford,DaCapo,2000,pivv. NaziPlunder,p1719. NaziPlunder,p2360. NaziPlunder,p6175. NaziPlunder,p91. http://news.bbc.co.uk/1/hi/world/europe/735232.stm http://www.theoutlaws.com/gold4.htm http://news.bbc.co.uk/1/hi/world/34761.stm http://www.cnn.com/2001/US/07/19/art.return/

CHAPTER 8: RATLINESTHE CIA AND THE NAZIS

HEMENTIONOFTHECIAcommonlybringstomindimagesofJamesBondspythrillersandimagesof coldwarwarriorsfightingtheevilsofcommunism.Butmoretimesthannot,therealityofCIAplotsare imagesofthegangthatcouldntshootstraight.ExamplesaboundoftheabsurdactionsoftheCIAandits forerunner,theOSS.DuringWWIItheOSSbecamewronglyconvincedthattheJapaneseweredeathlyterrified ofbats.Thustohelpthewareffort,DonovanoftheOSSdecidedtotestdroppingbatsoutofaircraftoverthe southwestern deserts before risking planes over Japan. The only fly in this ointment was that the poor little crittersfrozealmostinstantlyuponreleaseinthestratosphereandshatteredlikefinechinauponhittingthe ground.Afteroffingafewmillionbatsovertheskiesofthesouthwesterndesert,theplanwasdropped.[1] Harveys hole in Berlin is another example of some rather shortsighted thinking by our intelligence agencies. In 1954 under the direction of Bill Harvey, a 1476foot tunnel into East Berlin was dug to install a phonetaponaRussiancommunicationcenter.Afteralmostayear,theRussiansdiscoveredthetap,allegedly whilerepairingacable.WhatwasnotmentionedwastheAmericanspieshadbecamesoaccustomedtotheir comfortsthattheyturnedofftheairconditioningtothetunnelduringthechillymidseason,thusthetunnelwas marked on the surface by a telltale strip of bare ground over its entire length, through an otherwise snow coveredlandscape.[2] Onefinalexample oftheCIAbunglingwillsufficebeforemovingon.OnMarch11, 1961,Kennedy helda meetingwithhisassortedadvisorsconcerningwhathasbecomeknownastheBayofPigsfiasco.(TheCIAhas recentlyannouncedthattheCIAwasentirelyresponsibleforthemistakesmade.[9])Hereisaglimpseatonly one of the many mistakes made. The original invasion was set some 100 miles east of the Bay of Pigs. After Kennedydemandedasitethatwouldbemoreconducivetoaquietnighttimelanding,theCIAturnedtotheBay ofPigs.Theoriginallandingsitepickedforwhatwassupposedtobeasecretnightlandingwastheequivalent ofdowntownLosAngles.Overflightsoftheareahadrevealeddarkformsjustunderthesurfaceintheshallows ofthebay.CIAexpertsdeterminedthosedarkformstobeseaweed.[8]Callitrottenluck,abadguess,afreakof natureorjustdamnstupidity,unfortunatelythosedarkformsturnedouttobecoralreefs.Reefsthatcouldrip thebottomoutofsmalllandingcraftorleaveithighanddryforanygunnersonshorelikeasittingduck. Asthiswasbeingwritten,anotherbunglingepisodeinthehistoryoftheCIAtookplace.Theincidentcame duringthebombingofSerbiaovertheKosovocrisis.ThemistakecameinthetargetingoftheChineseEmbassy. PresidentClintonwasquicktoapologizetotheChineseand,intheefforttofindthecauseoftheerror,theCIA steppedforwardandadmittedtheerrorwastheirs.Theproblemwasthemapshadneverbeenupdatedinfour years.MaybeweshouldjustrelyontheRandMcNallyRoadAtlas,huh.Laterwefoundoutthattherewasmuch moretothisthanjustthelackofanupdatedmap.AlowerCIAemployeehadwarnedrepeatedlyofthepossible misidentification of that target site, but was ignored. But this brings us to another question. Does the CIA at timesseektoembarrassaPresidentnottotheirliking?ThereadershouldbeawareoftheCIApolicyofpassing on to higher policy making official documents that are less than credible. During a November 1995 Senate SelectCommittee,itwasrevealedthatCIAofficialshadpassedonmorethan35reportswithoutdisclosingthe information had come from known Soviet double agents. Between 1986 and 1994 the CIA had passed on at least95reportsbasedoninformationfromdoubleagentswithoutrevealingthesourceortheaccuracyofthe information.[136] TounderstandhowtheCIAhasevolvedintoamenacetofreedomworldwide,oneneedstolookatthevery beginnings of the intelligence service in this country starting in the period following WWI and the cast of characters. Where and when did the CIA evolve into a monster diametrically opposed to the ideals of a democracyandwhowasinvolved?ThesimpleanswerisAllenDulles;evidenceaboundsthathewasatraitor. But as with all simple answers, there is a much more that lays hidden. In the following pages, the role of Wall Street bankers and big oil, along with their servant Dulles, will be showntohavebeenbehindthesubversionofmanycountriesandtheimportationofNazi warcriminals.DullesandtheUSintelligencecommunitywereactivelyinvolvedinhelping NaziwarcriminalsescapefromEurope;theywereassistedwithhelpfrombothBritainand theVatican. ObviouslyDullesneededhelpincarryingoutacontinuingcoverupandcouldnothave actedalone. Duringthe war,severalindividuals fromtheStateDepartmentsubvertedthe wishes and orders from FDR. Elbridge Durbrow and R. Borden Reams were two people
Eldridge Durbrow

from FDRs State Department who deliberately misled FDR and withheld information from him. Reams withheldthefirstreportsfromaspyinsideofGermanyandoccupiedPolandoftheatrocitiesbeingcommitted against the Jewish people.[14] As this was being written, a report surfaced that the first notification of high government officials of the Nazi euthanasia was a cable from Vice Counsel Paul H. Dutko dated October 16, 1940.[102]ItisuncertainifthiscableeverreachedFDRjustasthelaterinformationwaskeptfromhim.Itis doubtful,evenifithadreachedRoosevelt,thathecouldhavedoneanythingmorethancondemntheactions withtherampantisolationistsandtheantiJewishsentimentthatwasprevalentthroughoutthecountryandin Congress.Theiractionsandtheactionsofothers,mainlyinsidetheStateDepartment,wentbeyondasimple disagreementoverpolicyintoactsofsubversion. RecentevidenceconfirmedbyClarkCliffordhasshownthatTrumanwasunawareoftheCIAimportationof theNaziswarcriminals.[3]GenerallythecoverupduringtheTrumanadministrationwastheworkofJames Forrestal, the Secretary of the Navy at the time. The reader should note here that Forrestal, a conservative Democrat,couldbarelycoverupforhisJewishbigotryandworkedbehindTrumansbacktoblockthecreation ofthestateofIsraelandhadstrongtiestotheoilbusiness.BeforecomingtoWashington,Forrestalwasavice presidentoftheWallStreetfirmofDillon,afirmthatinvestedheavilyinNaziGermanyduringthe1930s.[113] Another who was certainly involved and well aware of the status of the various war criminals that were allowed to immigrate was J. Edgar Hoover. Hoover protected himself in several ways; one he removed all damningfilesfromFBIheadquarterstotheNewYorkandWashingtonfieldoffices,likewiseheremovedthe FBIfromthebackgroundchecks.[15] Others were involved in the cover up at the time as well. In 1945 the Navy captured documents from the Nazi oil cartel, Kontinentale Oil A.G. Konti, headed by former Reichsbankofficer,KarlBlessing.AyoungnavalofficerwasassignedtoreviewthoseKonti documents. Allen Dulles had personally vouched for Blessing as an antiNazi. If Blessing wouldhavegonedownasawarcriminalandaNazi,Dullesandhisclientswouldgodown as traitors. Dulles personally asked the young naval officer to keep quiet about those documents in exchange for financing the young mans first Congressional race, thus was launchedthepoliticalcareerofRichardNixon.[4] Prescott Bush is largely credited with helping Nixon get started in politics as an early Richard M. Nixon backerandinhisselectionforVicePresidentialcandidatein1952.ThisisthesamePrescott Bush that ran a corporation that was seized by the United States government during WWII as being nothing more than a den of Nazi spies. Nor could Prescott Bush plead innocence of the Nazis in the business, as he sought outhelpfromtheDullesbrothersinconcealingfrom theUSgovernmentthe Naziinvolvementinthe business. The astute reader should recall that during Watergate, Nixon threaten to fire everyone at the CIA except George Bush after the CIA refused to cover up for him. Did Nixon make the exception of Bush as a paybacktoPrescott,orwasNixonfearfulthatBushcouldexposehispast?Thatleavesaneatlittlepackagewith immenseimplicationsforthereaderoranotherinvestigativereportertoexplore. ThiswasfarfromtheendofNixonsaidingofformerNazis.TheexampleofNicolaeMalaxawillserveasan examplehere.MalaxawasthesupplierofarmstotheIronGuardinRomaniaandabusinesspartnerofGoring. HewaslaterconvictedofwarcrimesinRomaniaimmediatelyfollowingthewar.In1948heformallyapplied for permanent US residency. He then faced a blizzard of legal challenges over his admission. In 1951 Nixon introduced a bill in the Senate that would have granted him resident status. The bill failed. Later in 1951 Malaxa formed a shell corporation named Western Tube in Nixons home town, in the same location that sharedamailingaddressforNixonsformerlawfirm.Thefirmappliedforacertificateofnecessitytogettop wartimepriorityforitsmaterialandpersonnel.NixonpersonallysupportedgrantingresidencytoMalaxaon thegroundsthathewasindispensabletoWesternTube.YetWesternTubeneverproducedasingleproductin its history. Others that aided Malaxa in his legal battles include John Foster Dulles and formerUnderSecretaryofStateAdolphBerle.[44]Inalaterchapterwewillonceagainturn tohowNixonwasinstrumentalinsettingupEthnicHeritagegroupswithintheRepublican PartythatwerecontrolledbyexNazistouseinelections.OvertheyearsfollowingWWII many others have been involved in the Nazi cover up, including John and Allen Dulles, J. EdgarHoover,WilliamCasey,GeorgeBushandRonaldReagan. ManyoftheNaziswereadmittedunderOperationPapercliptorecruitGermanrocket scientists. But some, like Walter Dornberger, first had to have their records sanitized. Major General Dr. Dornberger was a major general at Peenemunde and had been sentenced to death by
Walter Dornberger

hangingforwarcrimesbeforebeingadmittedtotheUS.EnglandwarnedtheUSnottoadmithim,ashewas alreadyconnivingtostartanotherwar.[5]HelaterrosetoavicepresidentofBellHelicopter.Avisiblespotin the nation to be sure, but even more visible after Bell announced their V22 helicopter, surprisingly close nomenclatureforsomeonewhohadbeeninvolvedintheV2program. ButfirstweneedtotakealookatthebeginningsoftheUSintelligenceservicesandthementhatdeveloped it,beforelookingatthemanyatrocitiesthattheCIAhascommittedovertheyears.Inadditionweneedafirm backgroundinthegeopoliticalscenefollowingWWI,particularlytheroleoftheBritishintelligencecommunity anditscloseassociationeventodaywithitsAmericancounterpart.Further,wemustkeepinmindthatallwe know about covert actions has been censored. Even Loftuss book had to be submitted to the CIA/NSA for censorship.[6] Secondly, unless that information is painstakingly backed by government documents that are still classified, some of it could indeed be disinformation rather than factual. Thus we have to rely only on informationthatisapprovedbytheveryagenciesthatwearetryingtoexpose. ThereisawealthofgoodinformationavailableontheCIANaziconnectionbothinthelibraryandonthe Internet.Unfortunatelythereisalsoalotofdisinformationandthejustplainnutty.Inawebsearchonecannot helpbutrunacrossNaziCIAUFOsoraNazilinkintheJFKassassination.Thiswriterhasdeliberatelyrefrained fromusingthelooselylinkedortenuousconnectionofNazisinvolvedintheassassinationandofotherloosely linkedconnectionsanddismissedthenuttyoutright.Ratherthiswriterhasstayedwithreputablesourcesand facts that are widely acknowledged and beyond dispute. This writer feels much of this material is deliberate disinformationandispartofanongoingefforttodiscreditanyonereportingontheconnection.Norshouldthe readerdismissallreportsorarticlesthattheCIAortheintelligencecommunityhaslabeledinaccurate.Manyof these have been labeled inaccurate only after they can find some factual discrepancy, often of some obscure point.Theninalogicalfallacytheyclaimtheentireworktobeinaccurate.Anexcellentexampleofthatwould beintheDarkAlliancestoryappearingintheSanJoseMercuryfollowedbythemaddogattackfromCIAassets inthemainstreammedia.ThereadershouldbeawarethattheCIAhasadmittedthatitwasawareofthedrug smuggling in the Iran/Contra/Cocaine scandal. The report was released on October 8, the same day that the House voted to impeach President Clinton. Such timing of the release insured that the report would not be widelycoveredbythemedia. The remainder of this chapter will first not only develop the connections between the CIA and the Nazis alreadyalludedto,buttheconnectionsbetweentheCIAandWallStreetastheCIAhasevolvedintoatoolof corporate America more than a tool to protect American democracy. Since the theme of this book concerns fascism, the focus will emphasize the Nazi connections. An emphasis will be placed on how the CIA/Nazi connectionshaveaffectednotonlyforeignpolicy,butdomesticpolicyaswell,includingabrieflookathowthe CIA has subverted democracy in America using illegal wiretaps, censorship and campaigns to stamp out any group that may be to the left side of the political spectrum. Following that, a brief survey into past CIA interventionsandthecorporateAmericanconnectionswillbepresented. LoftusdividesthiscenturyanditsrelationshipstotheJewsintothreephases;thefirstphasebeginswith theendofWWIandendswiththestartofWWII.HecharacterizesthemotivatingfactorofJewishrelationsas bigotry. But nevertheless, this was the time period in which our intelligence agencies were born. Loftus attributesthisphaseasbeingdominatedbythreemen:JackPhilby,aBritishspy,AllenDullesandIbnSaud.All threewereknowntoharboranintensehatredforJews.Philbyisperhapsbetterknownasanoilexplorerand themanbehindthescenesthatplacedIbnSaudonthethroneofSaudiArabia.IbnSaudwastheleaderofthe extremistWahhabisectoftheMoslemsandtheArableaderwhounitedtheArabianPeninsula.[7] The followingquotefromaCIAreporttoPresidentTruman in1948removesanydoubtofthehatredor antiSemiticfeelingsoftheCIAtowardstheJews. FormationofaJewishstateinPalestinewillenabletheUSSRtointensifyitseffortstoexpandSoviet influenceintheNearEast.Andtoperpetuateachaoticconditionthere. In any event, the flow of men and munitions to Palestine from the Soviet bloc can be expected to increasesubstantially.[53] Labeling a group as communist or susceptible to communism was used as a major means to discredit that group or to otherwise demonize the group. This is one of the many records that have been just recently declassifiedandreflecttheCIAconcernofSovietinfluenceoverthenewlycreatedstateofIsrael.Theflowof arms reflects the ban of arm shipments to the Jewish guerillas imposed by the western bloc. In his memoirs

Truman wrote he overruled the State Departments Middle East experts and the Joint Chiefs of Staff on the issue. PhilbyandSaudbothbetrayedBritaintotheeconomicmastersoftheregioneventoday,theAmericanoil companies. Dulles was the American who helped them when he was stationed in Turkey during the 1920s while he was coordinating intelligence on the Mideast. These three men are responsible for laying down the foundations of the region, the common historic myths of the region and instigators of war. Philby and Saud bothwerealliedwiththeNazis.PhilbyfunctionedtogetcontractsawardedtoAmericanoilcompanies.Hisfirst successwaswithStandardOilofCalifornia.InmanywaysPhilbycanberegardasthegodfatherofAramco.One traithesharedwithanumberofoilexecutives,particularlyfromStandardOilofNewJerseyandTexaco,was anardentsupportforfascismandracism.RemnantsoftheantiSemiticviewsofTexacohavesurfacedaslate as the 1990s. Although most of the media focused on the black racism present at Texaco, there was also additionalantiSemiticbehavioratTexaco.[10] TherelationshipbetweenPhiblyandAllenDulleswasunique;inessencePhilbywasrehabbingDullesfor theBritish.DulllesfirstattemptatspyingcameinBerneduringWWI.AfteritbecameapparenttotheBritish thatsomeonehadpassedthecodestotheCentralPowersinWWI,theBritishtrackedittoDullesmistress.He hadgivenherthecodesforsexualfavors.TheBritishgrabbedbothDullesandhismistressand,inaneffortto savehismiserableskinandhiscareer,DullesagreedtohelptheBritish.Someattributehimwithtorpedoing WilsonspeaceproposalsatVersailles.ThereisnoquestionaboutDullestoeingtheBritishlineintheMideast andCentralEurope. JohnFosterDulleslikewisehadtroublesfollowinghimfromWWI.Fosterfoughtadesperatebattleinorder thatKaiserWilhelmIIsassetswouldnotbeseizedbytheAlienPropertyCustodianboard.Germanbribesran allthewaytotheAttorneyGeneral,HarryDaugherty.InthedefenseofDaugherty,hiscounselpointedoutthat therewasanevenbiggercrookbehindhim,thatbeingJohnFosterDulles,whowasknowntoseekoutbribes duringthenegotiations.[21] InWashingtonasthechiefoftheStateDepartmentsNearEastdesk,DulleswrotetotheBristolAmericas ambassadortoTurkeyoverthegenocideofArmeniansduringWWI. Confidentially the State Department is in a bind. Our task would be simple if the reports of the atrocitiescouldbedeclareduntrueorevenexaggerated,buttheevidenceisirrefutable.TheSecretary ofStatewantstoavoidgivingtheimpressionthatwhiletheUnitedStatesiswillingtointerveneactively toprotectitscommercialinterests,itisnotwillingtomoveonbehalfoftheChristianminorities.[12] HereisperhapsthefirstdirectproofinthiscenturythattheUSforeignpolicywasbasedsolelyoneconomic issuesbenefitingcorporateAmerica. In1923attherequestofJ.P.Morgan,JohnFosterDullesworkedoutaschemeaslegalcounseltotheDawes committeeinwhichUSbankswouldlendGermanythemoneytopayFranceandBritainandtheyinturnwould paytheirwarloansfromtheUSbank.Thisfinancialmerrygoroundwasnotmuchmorethanashellgame,but itkeptthemoneycirculating.The20swereinvitingtimesforthewealthy.Withtheemergingautomarketand theaccompanyingoilindustry,greatpoolsofcapitalwereavailableforinvestment.Manyoftheinvestments thatwereofferedupweremoreontheseedysideratherthansound.In1926Dullesresignedhispositionwith theStateDepartmentandwentintoprivatepracticeatSullivan&CromwelllawfirmwherehisbrotherJohn Fosteralsoworked. The following quote from Newsweek.Com illustrates the relationship of the Dulles brothers to the Nazis andtheirtreasonousbehaviortowardstheUS. ThefreshlookatwartimeculpabilitymayextendtootherAmericanicons.In1940oneofthenations most prestigious law firms, Sullivan & Cromwell, joined together with the Wallenberg family of Swedenfamed for producing Raoul, a Holocaust martyr who saved Jews in Budapestto represent Nazi German interests, says Abe Weissbrodt, a former Treasury Department lawyer who prosecuted the case in 1946. The scam? Sullivan & Cromwell drafted a voting trust agreement making the Wallenbergs Enskilda Bank a dummy owner of the US subsidiary of Bosch, a German engineparts maker, so the Nazis could retain control. The papers were drawn up by John Foster Dulles, a Germanophile who later became Secretary of State and whose name today graces Washingtons internationalairport.(Theschemeworkedduringthewar,butin1948Boschwasfinallyauctionedtoa USbuyer.)TherecordiscompellingintermsofwarrantingquestionsaboutDullessmotivesandhis

ownalleg giances,says shistorianM Masurovsky. Onemightsayabouthim mwhatTreas surysaidabo outChase andJ.P.M Morgan,thatt theyhadalle egiancetothe eirowncorp porateinterestsandnott totheircount try.[68] D Dulles derive ed much of his profits and a his clien nts profits fr rom investm ments in Nazi Germany. In I the 1930s s D Dullessetab leinterlockin ngfinancialn networkbetw weenNazico orporations,AmericanOi il outcreatinganincredibl a andSaudiAr llenhadhelp pfromhisbrotherFoster r.Perhapsthe ebestknown ndealarrang gedbyDulles s abia.HereAl w wasbetween nI.G.Farben andStandar rdOilofNew wJersey.Wha atisgenerall lynotknown n,Farbenwa asthesecond d largest share eholder in St tandard Oil of New Jersey, second to t only John n D. Rockefel ller himself.[ [11] Another r R Rockefellerc controlledcorporationth hatDulleswo orkedtoprot tectwasthe Rockefellerc corporation UnitedFruit t; b bothUnitedF FruitandSta andardOilofNewJerseyc continuedto otradewitht theNazisafte ertheoutbre eakofwar. Muchoft theRockefel llersdealing gswiththeN Naziswereth hroughRock kefellercontr rolled s shellcorpora ationscenter redinLatinA America.The edealingswe erefacilitate edthroughNelson R Rockefellers appointmen nttothepost tofCoordina atorofInter AmericanAf ffairsbyForr restal in1940.This swasthepo ositionofthe etopspyin LatinAmeric ca;thepost wassuggest tedto F Forrestalby Rockefeller himself.Rockefellerhad proposedto oHarryHopk kinsthatEng gland a Hitler fig and ght each oth her to the de eath, regardl less of which h side won, the US had to be r readytopick kupthepiecestoincreas secorporate Americaseconomicinfl luence.Iness sence Ne elson Rockefeller R Rockefellers rnwastosaf feguardcorp porateAmeri icainterests.Hisdefiniti ionof onlyconcer t totalitarianw waslimitedto otheUSSR. Once Nel lson Rockefe eller accepted d the positio on, he inform med his staff f that their jo ob was to us se the war to o t take over Latin American n markets. Rockefeller R a also used his position to see to it tha at the Nazis got anything g t theywanted inSouthAm merica,such asrefueling bases,while eforcingthe eBritishtop paycash.Additionally,he e e effectivelybl ackmailedBritainbythe ethreatofwi ithholdingor rblockingtheshipmento ofrawmater rialsandfood d t toBritain.Ro ockefellerschiefaimwas stodrivethe eBritishoutofLatinAme ericaandmo onopolizethe emarketsfor h himself.Inea achcountryh hesetupcoo ordinatingco ommitteesco omposedofr reactionarye executivesfr romStandard d O OilofNewJer rsey,UnitedFruitandGe eneralElectri ic.[41] Rockefell lerneverbot theredwith helpingthew wareffort;b by1945athi irdofthecountriesinSo outhAmerica a h hadnotboth heredtodeclarewaront theNazis.Fu urther,aproNaziblocof fcountriesle edbyPeron ofArgentina a w actively involved in helping hid was de escaping war w crimina als. Peron wa as a friend of o none othe er than Allen n D Dulles. ndtheirfirm werenotth heonlyinvestorsinGerm manyatthist time.Manyo ofthetopcor rporationsin n Dullesan t theUSinitiat teddirectinv vestmentson ntheirown;amongthese ewereGM,IT TT,Ford,and dGE.Likewis seotherWal ll S Streetfirmss specializedinGermanin nvestmentss suchasDillonReed&Co o.,whofavor redloanstot theDeutsche e B Bank,Siemen nsandFricksinterests.K Keyplayersa atDillonincludedJamesForrestal,W WilliamDrape er,PaulNitze e, F Ferdinand Eb berstadt and d C. Douglas Dillon, all of o whom late er served in the governm ment. Brown n Brothers & & H Harrimanwa asanothersu uchfirmand dofcourseHarrimanlate erservedint thegovernm mentaswell. Thiswasthe e f firminwhich hBertWalker,GeorgeBu ushsgrandfa ather,andfat therwereass sociatedwith h.Bushsgrandfatherwas s instrumental linsettingup padealtota akeoverHam mburgAmeri icaLine,aNa azifrontcom mpanyusedfo orespionage e. P PrescottBush hhiredAllen nDullestohi idehisassets sinvestedinGermanyfro omauthorities.In1942P PrescottBush h w wascharged withrunning gNazifrontg groupsandt thoseassetsw wereseized.[13] hislittlesnippetofhistor ry,wehaven nineindividu uals(countin ngtheDulles sbrothers)a allassociated d Injustth w with Wall St treet firms serving s the wealthy, w who later went on to serv ve in the gov vernment. Forrestal F was s m mentionedea arlierinthec contextofpr romotingpol liciesopposin ngtheviews sofTruman.Weneedtol lookclosera at t thepastDire ctorsoftheC CIAtofullye establishthe connectionbetweenWa allStreetand dtheCIA.Fou urofthepast d directors, inc cluding Wild d Bill Donova an as head of o the OSS, have h been Wall W Street la awyers: Don novan, Dulles s, C ColbyandCa asey.Thesefo ourhavebee enatthehead doftheCIAf foratotaloftwentyoney yearsoutofthefiftytwo y yearhistory oftheCIAo oralmosthal lfthetime.T Theremainin ngdirectors have allcam mefromthe eliteclassas s d definedbyD Domhoffinan nearliercha apter.Clearly ywehavees stablisheda revolvingdo oorbetween thewartime e g governmenta andWallStreetaswellasestablishin ngthesamer revolvingdoo orbetweenW WallStreetan ndtheCIA. Thequestionofhowe extensivethe eworkofDu ulleswasina actingasamiddlemaninsettingupdealsbetween n t rich and the d the Nazis cannot be answered a wi ith any grea at certainty. However, a a document prepared by y P Pruessen for r the State Department D t totals over a a billion dol llars.[16] Remember tha at is only de eals in which h D Dulleswaspe ersonallyinv volvedandth hatitisafloo orvalue;theremaybead dditionaldea alsthatPrues ssenfailedto o u uncover.Like ewise,Comm merceDepart tmentrecord dsshowstha atinvestmen ntsinGerman nyincreased d48.5%from m 1 1929to1940 0.[17]Additi ionallymany yUSfirmsbo oughtdirect interestinG Germanfirm msandinturn nplowedthe e

profits back into the Aryanization (seizing of Jewish firms) or arms production. Among those firms are InternationalHarvester,Ford,GM,StandardOilofNewJerseyandduPont. Beforemovingon,thiswriterfeelsthatthebilliondollarsthatDulleshelpedtoinvestinGermanyneedsto beputintocontext.TodayasingleB2bomberrunsoverabilliondollars,butinthe1930sabilliondollarswas realmoneyasshowninthetablebelow. GDP GDPI Year 1929 103.8 16.7 1930 91.1 10.6 1931 76.4 5.9 1932 58.6 1.1 1933 56.2 1.7 1934 65.9 3.7 1935 73.1 6.7 1936 83.6 8.7 1937 91.8 12.2 1938 85.9 7.1 1939 91.9 9.3 1940 101.2 13.6 GDP=GrossDomesticProduct GPDI=GrossPrivateDomesticInvestment NumbersgiveninBillions[18] Now from the table we can see that the billion plus dollars Dulles helped to invest in Germany was considerablemoney.Forexample,itequaledorexceededthetotalprivateinvestmentin1932.Infactonlyin oneyearduringthe1930swouldithavebeenlessthantenpercentofthedomesticprivateinvestments.Infact inthe12yearsshown,ifthismoneyhadbeeninvestedinasingleyear,itwouldhaveamountedto25%ofthe domesticinvestmentonaverage.EvenifthemoneyDulleshadhelpedinvestinGermanywasspreadoverthe entiredecadeofthe1930sevenly,itwouldhaveaddedonepercenttothedomesticinvestmentifinvestedin the US, a considerable boom in the time of the Great Depression. And remember this was just the known investmentsthatDulleshadhelpedbroker;itisafloorvalue.Lookingatthetableaboveitisclearthatthese investmentscouldonlyhelpdeepenandprolongthedepressionintheUS.Ortoputitintoanotherperspective, in1940theNaziwarmachinesbudgetwasaboutfivebillionmarks,ineffecttheamountofmoneyDulleshad investedwouldhavebeenenoughforalmostanentireyearfortheNaziwarmachine.[19]Ineffecttherichof thiscountrybuiltagreatdealoftheNaziwarmachineforHitler. The reader must now indulge this writer some. Up to this point we have established a minimum dollar amountofmoneythatDulleshelpedtoinvestinGermany.Additionallyithasbeenshownthattherewereat least two other Wall Street firms that competed with Dulles for clients to make similar investments in Germany.Further,thatleadingcorporationsandbanksweremakingdirectinvestmentsinGermanyhasbeen establishedaswell.ItalsohasbeenestablishedthattheseWallStreetfirmshadarevolvingdoorwiththeState Department and very shortly the revolving door between Wall Street and the CIA will be more firmly established,leavingnodoubtofitsexistence.InmanycasesitwashardtotellwhereWallStreetstoppedand theStateDepartmentbeganinthosedays;todayitsimpossibletotellasthedistinctionhasbecameevenmore blurred.InalaterchaptertheReaganadministrationsBechtelsStateDepartmentandtheCoorsDepartment ofInteriorwillbeexposed. Only a historical revisionist would deny that a considerable number of these Wall Streeters worked covertlyorinadeliberateattempttodeceiveandkillthepoliciesofbothFDRandTruman.Thereaderisurged toreadthesourcesdetailedinthefootnotestoconfirmthis,asabookofthisscopecannotgivefulljusticeto the extent of such deception and influence in setting national policies. Likewise it is well known the trouble FDR had in securing government contracts with corporate America for wartime production. People could be draftedforthewareffort,butcapitalwasexemptfromthedraft. Infactmorewartimeshortagesinmunitionswereduesolelytofootdraggingorrefusaltosigncontractsby corporateAmericathantounionstrikes.Otherproductionwaslostduetocorporatepoliciesofrefusingtohire blacksuntilFDRissuedadirectiverequiringfirmsengagedinwartimeproductiontohireblacks.Thisrefusal or reluctance on the part of corporate America to support the war effort led to FDRs hiring of dollar a year men,therichleadersofindustryandWallStreeters.

Bythetimethewararrived,manyoftheseAmericancompanieshadbeendoingbusinesswiththeNazis since1932.TheyhadseenhowtheNazieconomicsystemofsyndicalismworkedandhowtomanipulateitto theiradvantage.TheAmericancorporationsthathadinvestedinGermanywereforbiddenbylawtoparticipate intheAryanizationprogramandtouseslavelabor;few,ifany,obeyedthelaw.Nowtheseindustrialistswere inplacesofpowerwithintheUSgovernmentandcouldaffectpoliciesthatwouldbenefittheirfirms. Attheendofthewar,theNurembergtrialswereforthemostpartatravestyofjustice.Theauthorisnot condemningNurembergfortheconvictions,insteadheiscondemningitforitsextremelylimitedscope;fartoo manywarcriminalsescapedjustice,manywiththedirecthelpoftheUSintelligenceandmilitary.Outsideofa fewtopNazisthatwerefoundguilty,mostofthewarcriminalsescapedjustice.TheTrialscaughtmorelowly soldiersthanitdidtopNaziofficials.Itwouldbeamajortasktolistallofthemajorwarcriminalsthatescaped justice. Rather some of the major war criminals that escaped justice will be sprinkled throughout the remainderofthechaptertoillustratethevariouslinksbetweenthedifferentgroupsandtheactivesubversion ofjusticebyUSofficials. The examples chosen will dispel any notion that officials were not aware of their past war crimes. OriginallyasecondtrialatNurembergwasscheduledtofocusonthosethatfinancedandledGermanindustry. Thesecondtrialwasdubbedtheindustrialiststrialatthetimeandwasregardedasofequalimportancewith thefirsttrial,butthesecondtrialwascanceledaftertheUSbowedout.Additionally,thetrialofFlickwhowas foundinnocentofallchargesexceptone,thecourtruledthatcorporateleaderscouldnotbeheldaccountable forslaveryandlootingunlesstheprosecutioncouldprovedthatheorderedeachandeverycrime.[20]Wasthis second trial canceled because the defendants could have exposed Dulles and his American clients? It will be shown later that Dulles had dealings with the top Nazi officials and industrialists while he was stationed in Berne. Here is the point for the reader to ponder. Did these industrialists and Wall Streeters covertly adopt the Nazisformofsyndicalism?Incasethereaderisabitworriedthatthewriterhassatinthesunfortoolongand is a tad bit sun happy, this writer is not the first person to raise this question. In fact one source is very disturbing in that he was part of the dollar a year men and vice chairman of the War Production Board and presidentofGE,CharlesWilson.Inlate1943hemadeanotablespeechwarningagainstfascistthinkingamong thehigherranksofbigindustry.[45]By1943,warproductionpeakedanddeclinedthereafter;thedollarayear meninchargeofproductionandthemilitaryconspiredtopreventsmallcontractorswhosecontractshadbeen canceled from engaging in civilian production. In effect big business wanted to freeze the marketing of any consumer items until they were free to produce the same items, thus freezing the small businesses out. The reader will have to ask himself did corporate America put a happy face on Nazism and gain control of the governmentandeconomy?Theanalogyismuchtooclosetobedismissedoutofhand. The previous two chapters revealed in some detail the support for fascism among various elements of Americansociety,includingmembersofCongressandevenmembersoftheRooseveltadministration,asbythe timewarbrokeoutmanyNewDealershadbeenreplacedwithdollarayearmen.Additionally,Congresswas becomingincreasinglyconservative;theRepublicanshaddoubledtheirmembershipinboththeHouseandthe Senateby1943fromtheirlowpointin75thCongressoftheyears19371939.AlthoughtheDemocraticParty stillheldaconsiderablemargin,manyofthesemembersweresouthernconservativesorDixiecratsthatwere morelikelytosidewiththeRepublicans.Thereadershouldalsorecallfromthepreviouschapterthatin1942 duPont,anardentNazisupporter,launchedhisfascistfreeenterprisecampaign. InfactadatecanbeplacedontheadoptionoffascismbytheeliteleadersofAmericanbusiness,January 1944,asbythistimewarproductionwassteadilydecreasingand,alongwiththatdecrease,adecreaseinthe profits of corporate America. It was this month that the same Charles Wilson proposed the wedding of corporate America tothemilitary. Wilsonsuggestedthatevery largecorporationappointaliaisonmanwith the armed forces with a commission of a colonel in the reserve. Experts from his proposed wedding follow below. First of all such a [preparedness] program must be the responsibility of the federal government. It mustbeinitiatedandadministratedbytheexecutivebranchbythePresidentasCommanderinChief andbytheWarandNavyDepartments.Ofequalimportanceisthefactthatthismustbe,onceandfor all, a continuing program and not the creature of an emergency. In fact one of its objects will be to eliminateemergenciessofaraspossible.TheroleofCongressislimitedtovotingtheneededfunds....

Industrysroleinthisprogramistorespondandcooperate...intheexecutionofthepartallottedtoit; industrymustnotbehamperedbypoliticalwitchhunts,orthrowntothefanaticalisolationistfringe taggedwithamerchantsofdeathlabel.[139] SuchwordsrendermoottheelegantdebatesofHamilton,Madison,Jeffersonandothersofthefoundingfathers setforthintheConstitutionprovidingCongresswithanabsolutechokereignonmilitarypowerandspending. FurtherthewordsofWilsonhintatcorporateAmericasroleinstartingtheColdWarwhichwassoontofollow. But even more ominous is the fact that before Eisenhowers troops stormed the beaches of Omaha and Normandy,thewaragainstfascismwaslostonthehomefront,asWilsonswordsembracedtheveryheartof fascismandthepowerthatruledGermany,themilitaryindustrialallianceofNaziGermany. Withtheendofthewarimminent,thetopmilitarybrasseagerlyadoptedsuchaweddingandexpansionof themilitaryasitwasjobsecurityforthem.Asuccessfulmilitaryindustrialcomplexrequiresalargemilitaryto expendthemunitions.Withthetopbrassofthemilitaryfacingthelossoftheirranksattheendofthewar,the campaigntoestablishthefirstpeacetimedraftwason.Theestablishmentofapeacetimedraftwouldrequirea huge propaganda blitz by both the military and industrial sides. And once again the elegant words of the foundingfathersofthedangerofalargemilitarymakingpolicyratherthanfollowingcivilianauthoritywere renderedmoot. Thus by the time the 1948 peacetime draft came before Congress, General Douglas MacArthur had established a public relations office consisting of 135 military men and additional 40 civilian personnel. The ChiefofStaffhad44militarymenand113civiliansassignedtopublicrelations,theEuropeanTheaterhad107 military men and 30 civilians in its public relations office. By 1950 the Department of Defense had 1800 personsassignedtopublicrelationswithabudgetofover$12million.Lookingatthosefigures,doesanyone stillrememberthewordsofHamiltonexpressingfearsofalargemilitarydeterminingpolicy?Thefullextentof the military determining policy and coordinating its efforts with right wing groups and fundamentalist religiousgroupswillbetakenupinalaterchapteronthe1950s. TrumansfirstpeacetimebudgetcalledforareductionofArmyofficersto115,000andofenlistedmento 800,000.Thebrassfoundwaystoprotectitself.Theratioofofficerstoenlistedmenhadbeenestablishedat one to ten, but the Pentagon insisted on reduction to only 147,000 or a ratio of one to six.[140] No better example of the brass protecting their positions can be found than the outbreak of the Korean war just two yearsafterthepassingofthefirstpeacetimedraft.AttheonsetoftheKoreanWar,themilitaryfounditselfina madscramble,callingupNationalGuardunitsandReservists.Despitethepeacetimedraft,asofJuly1,1949 there were 1,650,000 officers and enlisted men in the military service backed up by an additional 900,000 civiliansintheDefenseDepartment.Yetthemilitarycouldonlyfield12combatdivisionsglobally,totalingless than200,000.[141]ThisfigureincludesthosedivisionsstationedinEuropeandelsewhere.Nowdoesanyone stillbelievethatthemilitarybudgetwasnotbloated? Additionalsupportforsuchatheorycanbefoundinthepostwarperiod.In1952,attheurgingofoutgoing President Harry Truman, never a friend to big business, the International Petroleum Cartel was facing a massiveantitrustsuitbytheJusticedepartment.Thesuitchargedthemajoroilcompanies,andrightfullyso,of dividingtheworldsoilmarketsamongthemselves,limitingcompetitionandmonopolizingtheproductionand distributionoftheworldsenergysource.Thecartelizationhaditsbeginningssometwentyoddyearsbeforein 1928 with the signing of the Achnacarry Agreement. The Achnacarry document established spheres of influence for the various oil corporations as well as establishing the peacekeeping machinery between the varioussigners.Thesuitnevergotofftheground,asitfacedahostofopposition.Variousforeigngovernments, notably Saudi Arabia, England, Holland and France, applied tremendous political pressures. Additionally the Justice Department faced an organized opposition from other cabinet level departments, namely the State, Defense,theCIAandtheJointChiefsofStaff.Manyofthedocumentsneededtomakethecasewereclassifiedas Secret or Top Secret and the necessary security clearances were withheld from the Justice Departments prosecutors. The untold story behind such subversion of justice was the infestation of the State Department andtheCIAwithoilmillionaireswhowerethesuperiorstothemidlevelpublicservants.Indevelopingitsoil expertise,theCIAlistenedcloselytowhattheoilcompanieshadtosayonpolicy.CIApersonnelwereroutinely assigned to oil company schools where they were trained for their assignments in oil producing countries. Besidesthesharingofintelligencewiththeoilcompanies,theCIAalsorelieduponthemtofurnishcoverslots foritsagents.Additionallyarevolvingdoorbetweentheexecutivepositionsoftheoilcompaniesandpositions withthegovernmentintheStateDepartmentandtheCIAexisted,withthedoorintheStateDepartmentdating backatleastintothe1920s,ifnotbefore.

Eventually the suit was downgraded from criminal conspiracy suit to a mere civil suit. Interestingly enough,theJusticeDepartmentsleadprosecutorhasstatedthatTrumaneventuallyreachedthedecision,not ontheadviceoftheSecurityCouncilbutontheadviceofGeneralOmarBradley,thatnationalsecuritycalled for the suit to be dismissed. Truman would certainly have been aware of the Standard Oil of New Jersey blackmailingFDRjustpriortotheDDayinvasionwithapricehikeorapossiblecutoffinsupplies.Thiswasat theheightofTrumanscontainmentpolicyandhecouldillaffordadisruptioninoilsupplies.Andatthetime theDepartmentofInteriorhadstatedtheUSdidnothaveenoughreservestoprovideformaneuverabilityin theopeningmonths,ifwarshouldbreakoutbeyondtheKoreanpeninsula. During the Korean War one general manager in Syria bragged at his home office that he was complying with all Syrian regulations by drilling the number of wells they demanded, but making sure he just wasnt drillingthemwhereoilwouldbefound.Syria,aswellastheotheroilproducingcountries,wantedtomaximize theirproduction,butwashinderedbythemonopolisticpoliciesofthemajoroilcompanies.[138] Theendresultoftheillfatedsuitplacedtheoilcompaniesabovethelawandthepublic.Theverypolicyof theoilcompanieswasbeingimplementedbytheirmeninsidetheCIA,theStateDepartmentandvariousother federalbureaucracies.Byusingtheshieldofnationalsecurity,theoilcompanieswerefreetomanipulatethe courts for the advantage of a few elite; the very essence of fascism was now complete in this country. The writerwouldliketosuggesttothereaderthatheaskhimselfhowmanyothercompanieshavedonethesame since1952.Indeedthereaderwillendupwithaverylonglist. GrantedthisAmericanformoffascistsyndicalismismoreinformalthantheformalNazimodel,butineffect ityieldsthesameendresult.NoristhiswriteraloneinthisassessmentoffascisminAmericainthelate1900s; Gross describes it as friendly fascism or fascism without the black shirts.[129] He sees fascism taking a new formofdespotismintheformofcorporaterule.Ifthereadercannotanswerintheaffirmative,perhapshecan explainwhatwasbehindthecrypticwarningofthemilitaryindustrialcomplexbyEisenhowerlessthanfifteen yearsfromtheendofthewar. Eisenhowerwasanythingbutanalarmist;ifhehadanyfaults,itwasthathetendedtoignoreproblemsand delay action, hoping that the problem would sort itself out for the best. Likewise, as President, Eisenhower leanedonhisexperienceduringthewar;theinterstatehighwaysystemwasjustonesuchproductofthatfrom his familiarity with the autobahn. He had also seen his orders counteracted during the occupation or de NazificationperiodandtheNaziwarcriminalsbeingreleasedandputintopositionsofpowerinpostwarlocal governments and industry, much to his dismay by all accounts. Was he seeing the same close cooperation betweenthemilitaryandindustrialistsin1959thatledtotheNaziState? AsearlyasMarch1946,EisenhowerwasawareoftheNationalSecurityAgencys(NSA)ProjectShamrock. ShamrockwasaprojectinwhichtheNSAobtainedthecooperationfromthethreemajorcablecorporationsin whichtoreadallcablescomingintotheUSandleavingtheUS.[101]EventuallyShamrockevolvedintoamuch larger eavesdropping operation, including domestic spying on the SDS and other leftist elements as well as drugdealers.ThusEisenhowerwasawareoftheNSAasanultrasecretagencythatinmanywayswaslikethe GestapoandfreetospyonAmericancitizens.[112]Theonlythingwecanbecertainofisthatheregardedthe militaryindustrial complex as a serious threat to freedom. In a later chapter we will detail the similarity betweentheNazieconomyandtheRepublicanagendaofthe19801990s.Thesimilaritiesareasstriking,as theyarehaunting. Perhaps Eisenhower did leave a clue as to his meaning of the militaryindustrial complex. In his military industrialspeech,EisenhowerrecognizedthatforthefirsttimetheUShadapermanentdefenseindustry.One partofthispermanentindustrywasthecreationoftheCIAandNSA.Infacttheintelligenceindustrywasabig partofthebuildup,andEisenhowercarefullymentionedthecostofmilitarysecurityinthespeech(italicized) asitfollowsbelow. Our military organization today bears little relation to that known by any of my predecessors in peacetime,orindeedbythefightingmenofWorldWarIIorKorea. Untilthelatestofourworldconflicts,theUnitedStateshadnoarmamentsindustry.Americanmakers ofplowsharescould,withtimeandasrequired,makeswordsaswell.Butnowwecannolongerrisk emergency improvisation of national defense; we have been compelled to create a permanent armaments industry of vast proportions. Added to this, three and a half million men and women are directlyengagedinthedefenseestablishment. We annuallyspendonmilitarysecuritymorethanthenet incomeofallUnitedStatescorporations.

This conjunction of an immense military establishment and a large arms industry is new in the American experience. The total influenceeconomic, political, even spiritualis felt in every city, everyState house,everyofficeoftheFederal government.Werecognize theimperativeneedforthis development. Yet we must not fail to comprehend its grave implications. Our toil, resources and livelihoodareallinvolved;soistheverystructureofoursociety. In the councils of government, we must guard against the acquisition of unwarranted influence, whethersoughtorunsought,bythemilitaryindustrialcomplex.Thepotentialforthedisastrousriseof misplacedpowerexistsandwillpersist.[120] DidEisenhowerseetheintelligencecommunityasagentsofrepressionmuchliketheGestapo?Itwouldseem thathewasextremelydistrustfuloftheexpenseofmilitarysecuritybysinglingitoutinthespeech. Thereadermayindeeddisagreewiththiswriterthatasmallcabaloftherichelitedressedupfascismwith a happy face and adopted it as US policy following WWII. Some may even argue that the conservative leadership and agenda changed in the 1960s with the emergence of what is called neoconservatism. The agendaoftheconservativesoftodayisnothinglessthanacompleterevocationoftheNewDeal.Infactitsno differentthantheagendaoftheplottersledbyIreneeduPonttooverthrowFDRin1934andimposeafascist governmentofbusinessmen.ThereisnoquestionofduPontbeingproHitler;hefollowedtheriseandcareer of Hitler closely. At a speech before the American Chemical Society in 1926 he advocated creating a race of supermen by the injection of drugs. Nor is there any questioning of his business deals with the Nazis. EnterprisesownedbyduPonthadextensivedealingswiththeNazis,includingGeneralMotors.IreneeduPont usedGMmoneytobacktheBlackLegionandthefascistAmericanLibertyLeague.[130] TherewasrampantsupportforfascismamongcorporateAmericaduringthe1930s.Ofthis,thereislittle doubt.AsthefollowingquotefromtheWilliamDodd,USAmbasadortoGermanyin1937makesplain. AcliqueofUSindustrialistsishellbenttobringafasciststatetosupplantourdemocraticgovernment andisworkingcloselywiththefascistregimeinGermanyandItaly.Ihavehadplentyofopportunityin mypostinBerlintowitnesshowclosesomeofourAmericanrulingfamiliesaretotheNaziregime.... CertainAmericanindustrialistshadagreatdealtodowithbringingfascistregimesintobeinginboth GermanyandItaly.TheyextendedaidtohelpFascismoccupytheseatofpower,andtheyarehelpingto keepitthere. Another industrialist that was closely aligned with du Pont and involved in the plot against FDR and also hinderedthewareffortwasAndrewMellon,theheadofAlcoa.GeorgeSeldeshadthistosayaboutAlcoa: IfAmerica losesthewar,itcanthanktheAluminumCorporation ofAmerica.Secretary ofInterior HaroldIckes,June26,1941. ByitscartelagreementwithI.G.FarbencontrolledbyHitler,Alcoasabotagedthealuminumprogram oftheUSairforce.TheTrumanCommitteeheardtestimonythatAlcoasrepresentative,A.H.Bunkera dollarayearheadofthealuminumsectionoftheOPMpreventedworkonour$600,000,000aluminum expansionprogram.CongressmanPierceofOregonsaidinMay1941:Todate137daysor37%ofa years production has been wasted in the effort to protect Alcoas monopolistic position. This delay translatedintoplanesmeans10,000fightersor1,665bombers. This of course is the answer to the boys on Guadalcanal and in Tunisia and not absenteeism, the 48 hourweekorwageincreasestomeetthecostofliving.[131] TodaytheRepublicans,controlledbyafactionoffascists,arestillcallingfortheeliminationofoneofthemost successfulgovernmentprogramsever,SocialSecurity,andenactingofthesameagendaofIreneeduPont.The right wingers since the Reagan years have passed huge tax bonanzas for the rich and corporate America, a policy followed by the Nazis. The Republicans have also passed a huge excess of corporate welfare until the amount of corporate welfare now exceeds social welfare by at least a factor of ten. In short the Republican Partytodaywillsettlefornothinglessthancorporaterule.Suchanextremeformofcapitalismorcorporatism isattheheartoffascism. But for this writer this time period is the answer to a question that has plagued the writer like an open festering wound. The question arose in the early 1980s in the period of darkness otherwise known as the Reaganadministration.InresponsetotheRepublicandebateonthefloorofCongressdeclaringketchupasa vegetableandthereforeahotdogwithketchupsmearedonitconstitutedabalancedmeal,thiswriterbegan asking the question, Where did it all go wrong? This writer began looking systematically at the Nixon

administration, the JFK assassination, McCarthyism and rejected them all. No it was during the war that a wholesale change from liberal enlightenment to repression occurred, first in the business community, then spreading to the general public and eventually into public policy. It was not a clear and straightforward transformation;thechangetookseveraldiversionsbeforethe1980s. ButitwasduringthisperiodthattheUSadoptedapolicyofnationalismandaphobiaofcommunism,both traits of fascism. This was also the time that the root was established of the extreme corporatism that the Republicansoftodayembraceandadvocate.Extremecorporatismisjustanothernameforfascism.Itwasthe emergenceoffascisminthistimeperiodthathasledtomanyoftheinequitiesoftoday.Thiswriterbelieves thatthefailureoftheUStoadoptanationalhealthcarepolicyliketherestoftheindustrialworldcanbetraced tothisverytimeperiod.InfactHarryTrumanfirstproposedsuchameasureduringthistimeperiod.Ofcourse therightwingersofthetimeattackeditwithavengeancelabelingitassocialismorevencommunism. ThewriterwillalsograntthereaderthatgiventheenormityofWWIIitwouldaffectthefutureforalong period afterwards, but that doesnt account for the wholesale change in the domestic opinions or politics. Phobias,suchastheextremefearofcommunisminthelate1940sandearly1950s,arerarelyadoptedbyan entirepopulationwithoutfirstpropagandizingthepopulation.Inshort,nationalphobiasarelearnedbehavior and,inthiscase,itwasnottheelectedleadersofthecountryteachingthelesson.Butevenmoreimportantly, this is the time period in which a permanent defense industry was established and just as the military industrial complex formed the very heart of the Nazi war machine, the militaryindustrial complex that EisenhowersawallowedthefasciststoestablishapowerbasewithintheUS. The writer will concede that these changes so far have not produced fullblown fascism in the US. Some preferthetermssuchasprotofascismorneoNazi,butthatdoesntchangethefactthatoncethehappyfaceis stripped off, one is still left with a stark raving mad Nazi. Presently all that is needed is a strong figurehead fromtherightwingforfullblownfascismtoemergeintheUS.Theremainderofthischapterwilllookathow theCIAbroughtknownNazisandwarcriminalsintotheUSandtheeffectthatthishashadonUSpolicylending supporttothishypothesis. Butevenmoreseriously,didthedollarayear menandthemilitaryconspireto manufacture awar? The warinquestionwouldhavebeentheColdWar.RussiawasourallyandthedefeatoftheNaziscanbelargely creditedtotheRussiansatStalingrad.ThroughLendLease,overtheobjectionsoftheconservativeelementin thiscountry,weprovidedmuchoftheneededmunitionsforStalintofightwith.Upuntilthelaterstagesofthe wararoundthe194344period,theconservativeelementhadbeenheldincheck.Butatsomepointduringthis timeframe,theybrokefreetorunamok.Perhapsthebestdatingofthiscanbeplacedwiththeappearanceof thefreeenterprisehypefromduPont. Butherearethefacts.In1943DonaldNelson,aformerchairmanoftheWarProductionBoard,returned fromatriptoRussiawithaplanforpostwartradewithRussia.IntheagreementtheUSwouldsupplyRussia withmanufacturedgoodswhileRussiaprovidedtheUSmanufactureswiththerawmaterial.[47]Recordsfrom the time clearly show that the Soviets were unable to continue to wage war. Dtente would be delayed for anothertwentyyearsandeventhen,itwouldbeattackedviciouslybyrightwingelementsinAmerica.Butby theendofthewartheofficialmoodtowardsRussiawasoneofopenhostility.Couldthemilitaryandthedollar a year men have covertly manufactured a needless war that consumed the next forty years and pushed the worldtothebrinkofanuclearholocaust?Thatquestionwillbeleftforthechapteronthe1950s. Both Dulles brothers benefited immensely in the years 1939 to 1941, before the entry of the US into the war.AllenrestructuredtheGiescheconglomerate,50%ownedbyAnacondaCopper,frombothHitlerandthe US.In1940athreewaydealbetweenGermanbuyerssuchasI.G.FarbenrepresentedbyAllen,theGermanand Spanish bankers represented by John Foster and Saudi oil interest represented by Phibly to ship oil through SpaintoNaziGermany.TheprincipalsupplierwasCaltex,aunionofSocalandTexacoarrangedbynoneother thanJohnForestalin1936.[22]ThisdealwasattheheartoftheTrumanCommitteesinvestigationleadingto theblackmailthreatofacutoffofoilsuppliestotheUS.Atleastthreeotherintelligenceofficersbelievethatit wasAllenDullespersonallybehindthethreat.Corroboratingevidence,includingthedirectparticipationofthe Americanoilcompanyinvolved,exists. This brings us up to the war years and the formal beginnings of the US intelligence agency with the formation of the OSS. In reality the first intelligence agency was the shortlived Office of the Coordinator of Information(OCI)formedin1941,theOSScameayearlaterin1942.BothwereheadedbyWildBillDonovan. WithoutadoubtthethreemostinfluentialmenintheOSSandthelaterCIAwereDonovan,AllenDullesand Frank Wisner; all had come from former Wall Street law partnerships. As director of the OCI, Donovan

recruitedseveralofhisformerlawpartners;amongthesewereOttoDoering,JamesMurphyandNedBuxton. Thus from the very beginning, we see that the intelligence agencies of the US were awash with Wall Street lawyers,anoddcombinationforaspyagency. ItshouldbementionedherethatJohnMcCone,thefifthDirectoroftheCIA,wasasubordinateofForestal duringthewar.ForestalhasalreadybeenmentionedinsubvertingthepoliciesofTruman;thismayindeedbea case of guilt by association, but it remains worth noting. Likewise McCone was president of Bechtel, a corporation that essentially was the State Department under Reagan. Bechtel was also one of Dulles long standing allies and by 1952 had extensive political contacts at the highest level. These contacts were not accidental; they came through John Simpson a director of the Schroder Bank and close friend of Allen Dulles.[46] FDRs okay of Dulles as the head of the New York OCI was a setup. Roosevelt knew that Dulless clients included most of the camouflaged NaziAmerican interests. Britain had been given permission to conduct illegal wiretaps in New York to uncover Nazi interests. The wiretaps, being illegal, could not be used in an Americancourt,buttheinformationcouldbeusedinEnglandtostemtheflowofmoneyandmunitionstothe Nazis.BritishagentshavebeenstronglyimplicatedinthedeathsofafewAmericansthatweredealingwiththe Nazis;DullesofficewasoneoftheofficesthattheBritishhadbugged.Infacttherewasawiretappingoffice one floor beneathDullesnewoffice. Followingthewar,Rooseveltplannedonusingthisinformationtohelp prosecuteDulles. Two unforeseen events occurred to scuttle FDRs plan; one someone tipped Dulles off. The leak is commonlyattributedtoVicePresidentHenryWallaceandthiswasthemotivationfordumpinghimfromthe ticket in 1944. Secondly the death of Roosevelt killed the plan entirely, as Truman was never informed of it. Dulles likewise was not Roosevelts only target; many other wealthy Wall Street investors were also targets, reportedly also including Joseph Kennedy. Former Supreme Court Justice Arthur Goldberg confirmed Dulles wasbeingsetupbeforehisdeath.[23] It is also known that at the end of the war Allen Dulles was investigated by the combined USBritish CombinedChiefsofStaffforhisderelictionofdutyandrefusaltofolloworders,butthemilitaryrecordshave disappeared.[24] In this case, Dulles was trying to broker a surrender and a grant of amnesty to the highest rankingSSofficerinItaly,KarlWolff,inthespringof1945.Dulleshadbeenorderedtobreakoffthetalkswith Wolff, but continued them, ignoring orders even to the point of rescuing Wolff from Italian partisans. Wolff eventually went free, despite the fact that he was Himmlers chief of staff, had arranged contracts for slave labor and was the chief Nazi sponsor behind Treblinka. This is but one example of the travesty of justice at Nurembergthatthewriterwasreferringtoearlier. DulleseffectivenessasaspylocatedinBernewasrathershabbyatbest,asshownbythefollowingquote fromacablefromWashingtontoDullesinJanuary1944. Wethinkitisessentialthatyoubeinformedatoncethatalmosttheentirematerialsupplieddisagrees withreportswehavereceivedoriginatingwithothersources,andpartsofitweremonthsold.There has been degeneration of your information which is now given alower rating than any other source. This seems to indicate a need for using the greatest care in checking all your sources. The Berne estimate of German forces is most inaccurate and misleading. It contains grievous errors regarding locationsandalsoincludesreportsofnonexistentdivisions.Only30ofthedivisionsreportedwestare correctlyidentified,theremainingdivisionsreportedareeitherincorrectlylocatedordonotexist.In morethan50instances,theclassificationofdivisionsbytypeiswrong.[25] FollowingthedefeatoftheNazisatStalingradin1943,manyoftheNazibusinessmenrealizedtheywereon thelosingsideanddecidedtomovetheirmoneyoutofGermanybeforetheendofthewar.AllenDulleswas instrumentalinhelpingthemmovetheirassetstoArgentinathroughSwitzerlandatfirst.Dulleshadtiestothe BankofInternationalSettlements(BIS)throughhisconnectionwiththeSchroderBank,aNaziBank.Recently theBIShasconfirmeda4billiondollarpurchaseofgoldfromtheNazisduringWWII.Theamounthereistiny relativetotheninebillionfrancsontheeveoftheNorthAfricainvasionthatthecollaborationistswereseeking from a dollar exchange.[29] After the Nazis informed him that the Allies had broken the Swiss codes, Dulles shifted moving their gold through the Central Bank of Belgium and some through Luxembourg and Liechtenstein. Operation Safehaven records confirm that both Dulles and his aid, Gero von Gaevernitz, were underinvestigationforlaunderingtheassetsoftheNaziBankofHungarytoSwitzerlandwhiledisguisedasa

seriesofmoviecompanies.[26]TheinvasionofNormandyonDDaystemmedanyfurthereffortsthroughthese countries,leavingalargegoldhoardstillinGermany. FollowingDDay,DullesreroutedhismoneylaunderingthroughItalywiththehelpofthefathersonteam ofHughAngletonandsonJamesandtheVatican.TheolderAngletonmayhaveservedasacourierbetweenthe Vatican and Nazi Germany. Financial donations from the Vatican to Hitler have been firmly established.[27] The Vatican was part of Dulles network to smuggle gold out of Nazi Germany before the wars end. AdditionallytheVaticanhasbeentiedtothesmugglingofgoldoutofYugoslavia.[28]Asthiswasbeingwritten, anewlydeclassifieddocumentsurfacedsuggestingthattheVaticanhid200millionSwissFrancsstolenfrom Jews,SerbsandGypsies.[67] TheyoungerAngletoniscreditedwithcoveringupthecriminalinvestigationofhisfather,whomayhave beendirectlyresponsibleforthesmugglingofgoldoutofGermanyaswellastheinvestigationofDulles.James AngletonwasinstrumentalinrecruitingGehenandotherknownNazisfortheCIAfollowingtheendofthewar. LaterhehadacentralroleinsupportingtheDocumentDisposalUnit(DDU)insidetheStateDepartment.[30] TheDDUwascontrolledbyAllenDullesanditsapparentprimarygoalwastocoverupDulleswartimecrimes aswellasthoseofhisclients. Attheendofthewar,Dulleshadseveralworries.HehadtocoveruphisowndealingswiththeNazisand thatofbothhisAmericanandGermanclients,aswellassmugglinganyremainingassetsoutofGermany.He adoptedamindsetthatnoAmericanbusinessmanwasevergoingtobeconvictedfortreasonforhelpingthe Nazis.Recordsshowthatattheendofthewar,theAmericanArmyCounterIntelligenceCorps(CIC)hadtwo largeCivilianInternmentCenterscodenamedAshcanandDustbin.The CIChadidentifiedalargenumberof AmericansthathadremainedinGermanyandaidedtheNazis.Theevidencewasoverwhelmingforcharging them with treason. Much of the evidence was directly from captured German records and indisputable. Suddenly, on orders from the Department of Justice, they were released. Those within the department that spokeoutwerefired;theoneattorneythathelpburythetreasoncaseswaslaterpromoted.[31] TheproofofsuchacoverupconcerningtheNaziindustrialistsexistsyettoday.ItappearsintheForbeslist oftherichestmenintheworld.NearthetopofthatlistareseveralmultibillionairesthatwerepartoftheNazi innercircle.OnesuchexamplewouldbeKarlFlick,Jr.,whostillappearsonthe1997list;anothernameisthat ofBosch.[32]Obviouslyinacoverupofsuchmagnitude,DulleshadtohavehadhelpfromtheotherAllies.The BritishcoverupwasevengreaterthanthatoftheAmericans;toomanyroyalswereinvolvedwiththeNazis and too many British corporations would have to be seized. The French was even worse than the British, as manywereinvolvedwithcollaboratingwiththeNazisduringtheoccupation.[33] Dulles conned Wild Bill Donovan into serving on the board of World Commerce Corporation, a company thatwastohelprebuildGermanyasabuttresstocommunismalongwithDullesandSirWilliamStephenson from British intelligence. He had assured Donovan that there were a large number of wealthy investors in Argentina.[34]ThoseinvestorswereformerNazissmuggledoutofEuropewiththehelpofDullesratlinesand their source of wealth was the loot the Nazis had stolen from their victims. The economic rebirth of West Germanyinthe1950swasbuiltinalargepartwiththestolenassetsofthevictimsoftheThirdReich. Thewriterisnotbeinganalarmistortryingtospinaconspiracytheoryhere.Itisnowpastfiftyyearssince theendofthewar,butthenewsoftodaystillcarriesanabundanceofarticlesconcerningwarcriminalsandthe moneystolenfromtheJewishpeople.Congresshaspassedabilltoreleaseallinformationonwarcriminals, but some agencies, notably the State Department, the CIA and Department of Defense, are still raising objectionsonthegroundsofnationalsecurity.[35]Undoubtedlythereleaseofsomeclassifiedfilesisgoingto cause much embarrassment, not only to government agencies, but to American corporations and their leadership.Whatfollowsisahodgepodgeofsynopsesofnewsarticlesappearinginthelate1990s. Billions of German Marks from German taxpayers have been spent for victims pensions. These pensionsarepaidtoNaziwarcriminals.Estimatesrangeashighas50,000receivesuchpensions.One notable recipient of such pensions was Wilhelm Mohnke, a Hitler confidante and commandant of the Fuehrerbunker.Healsohadaroleintheexecutionof72POWsduringtheBattleoftheBulge.Germany hasonlyreluctantlyagreedtohaltsuchpayments.[36] TheprosecutionofAleksondrasLileikisasawarcriminalbythegovernmentofLithuania.[37] Kazys Ciurinskas, a retired Indiana contractor who served as a member of the 2nd Lithuanian SchutzmannschaftBattalion,amobileNazikillingunit,facesdeportationforlyingonhisimmigration

papersabout p thisinvolvem mentwithth heNazisduri ingWWII.Ka azysbattalio oninOctobe er1941murd dered o over10,000p peopleinByelorussia.[38 8] F Five US bank ks: Chase, J.P P. Morgan, Guaranty G Tru ust Co., Bank k of the City y of New Yo ork and Ame erican E Express all turned t over the accoun nts of Jewish h customers s to the Naz zis during th he occupatio on of F France.[39] Inanarticle appearingin n Newsweek,dealingwith hthereturn noftheheirlessassets,th hecooperati ionof A American cor rporations with w the Nazis is exposed d. Recently declassified d d documents s show that at least 3 300America nfirmsconti inuedtodob businesswith htheNazisd duringthewa ar.[40] The keyword in n that Newsw week article e is during. In other words, w these American firms were e actively viding munitions and wa ar material for f Hitler to kill American soldiers with. Does the t reader still s think prov corporateAmericahashisbe estinteresta atheart?The esecondpoin ntthereader rneedstofo ocusonisthe enumber t least 300; previously the America an public ha as been led to believe that t only a handful of American A of at corporationsdid dbusinesswi iththeNazis.Nowithas beendeterm minedthatw wasfalseand therealnum mberisat tafactoroft tenlarger.T Thearticleco oncludeswith hapartialli istingofthe valueofloot tedart,lifeinsurance least polic cies,property yclaims,ban nkaccountsa andthesuitsinitiatedaga ainstfirmsth hatemployed dslavelabor. C Clearlyfrom thesearticle esonecanga atherthaton nceallthedo ocumentsare edeclassified d,thereisgo oingtobe severeembarrassmentofnot tonlysomeg governmentagencies,butalsoevenm moreembarr rassmentinc corporate ed at by the Newsweek article. a At lea ast one article shows tha at a high ran nking Nazi was w never America as hinte ughttotrialf forwarcrim mes,orarewe etobelievet thatourmili itaryandint telligencefor rcesdidntkn nowwho brou wasthecomman ndantoftheF FuehrerBunk ker? T Thisleadsdi rectlytohow wNaziWar criminalsen ndedupinth heUSandtheireffectonthepostwa arperiod. By th he end of th he war, our relationship p with Russi ia had becom me antagoni istic, if not openly o hostile. It has alrea adybeenmentionedhow wdomesticel lementssuch hasduPontsfreeenter rprisehadc cametodom minatethe polit ticalfront.Of fcoursecom mmunismwa asanathema tothisgrou up,ledbyWa allStreetsha arksandthewealthy. Dulle es was, of co ourse, a mem mber of this s group and had the additional mot tivation to cover c up his ties and finan ncial dealing g with the Nazis N and the e Nazis were e rabid in th heir hatred of communi ism. Addition nally, the milit tarywanted toreapthe spoilsofwarandgainth hetechnolog gyoftheNaz ziscientists. Outofthisp phobiaof hate forcommun nism,several lprogramsw weredevelop pedtotakea advantageof theNazisin ntheopening gyearsof coldwar. thec T Tounderstan ndhowmanyoftheprog gramswere developeda andtheireffe ectuponthe epostwarpe eriod,we first needtolook kattheGehlenorganizat tion.Afullex xposeontheGehlenorga anizationisb beyondthes scopeofa le chapter; the t reader is referred to Christoph her Simpson ns book, B Blowback, for f a more complete singl discu ussion. Nor will the writer bore th he reader wi ith a countle ess listing of o war crimi inals within Gehlens organization.Rat thertheywil llbeincluded dintheover rviewandsp prinkledthro oughoutthis chapterasth heypoint ardsotherco onnections. towa N Notonlywas stheGehleno organization noneofthefi irsttobedev veloped,itpl layedacentr ral role inallofthe otherprogra amsthatfollo owedandex xertedthemostinfluence euponforeig gn cythananyo oftheothers. .Gehlenused dthesamecommontacti icsthatmany yofthesenio or polic Nazisemployed insurrender ringtotheAl llies.InMarc ch1945,ReinhardGehlenmicrofilme ed h on the USSR in the Nazi mi ilitary intelli igence sectio on and burie ed them in th he the holdings Aust trianAlps.On nMay22,1945,hesurren nderedtothe eAmericanc counterintell ligenceteam. Reinha ard Gehlen Itwaswithth hesemicrofilmsandGeh hlensunderg groundespio onagenetwor rkintheUSS SR keradeal.Th hiswasacommonthem meamonghig ghrankingN Nazisinsurre endering; that Gehlenwas abletobrok d the Allies something s of value, whil le downplay ying their rol le in war cri imes, in exch hange for they first offered lationfromp prosecution.Gehlenwasheldatthein nterrogation ncenteratCa ampKing;itwasheretha athefirst insul seta aboutforminghisorganiz zation.Byfirstestablishin nghisnetwo orkinsidethe ecamp,Gehl lenassuredh himselfof acen ntralroleina allintelligenc cedealingsw withtheNazi is.Itwasthis snetworkthatGehlenest tablishedinthecamp thatmadehimacentralfigur reineveryas spectofthep postwardeal lingswithformerNazis. O Ontheother endortheA Americansid de,thecentra alfigureisGe eorgeKennan,fromtheS StateDepartm mentand anea arlyadvocateofSovietcontainment. Itsironicth hatKennanw wasattacked dtwicebythe efarrightin nAmerica forh hispolicyofc containment tratherthan openconfro ontation,onc ceintheMcC Carthyyears andthenaga aininthe Reag ganyears.By ytheendof thesummer r,GeneralSib bertandWal lterBedellSmith,aswellasWildBil llDonvan andD Dulles,weresupportiveofusingGeh hlen.Ofcours sewithGehle enbeingthe Nazischief intelligence officerin

theeast,thiswasinviolationofpreviousagreementswithhandingoverallNazisfromtheeasternfronttothe USSRforpossiblewarcrimes.ItisknownthattheUSSRprotestedthearrangementvigorouslyatPotsdamand couldonlyservetofurtherbreechourrelationshipwiththeSoviets. At this time the US intelligence of the USSR was essentially an empty file. Not even rudimentary information of the rail or road system was known. Thus any information supplied by Gehlen was received enthusiastically. The fact that much of the information was obtained by Gehlens role in torturing and murderingsome 4 millionSovietprisonerswasconveniently overlooked.Gehlenlikewisehadalargerolein fanningtheflamesofthecoldwar.AformerCIAchiefanalystofSovietmilitarycapabilities,VictorMarchetti, nowacknowledgesthatGehlenoverestimatedSoviettroopstrengthinEasternEuropeaswellastheirbattle readiness.[50] The lack of battle readiness of the Soviet divisions in Eastern Europe should have been apparent to any observer.TheywereengagedinrippinguptheraillinesintheirsectorofGermanytoshipbacktotheUSSRfor constructing their own rail lines. The Russians also relied heavily on horses rather than trucks or motorized vehicleswellintothe1950s,anadvantageinSiberiabutaseveredisadvantageinWesternEurope.TheSoviet lack of even basic infrastructure was readily utilized in the cold war overflights by U2s. The pilots simply followedeveryraillineanditsspurstolocatetheSovietsICBMs,astherewerefewraillinesandevenfewer roads. Another associate of Gehlen who was completely integrated within the command structure of Vlasovs Army and a major war criminal, Gustav Hilger, was instrumental in the US backing of Konrad Adenauers Christian Democratic government.[51] The backing of the Christian Democrats by former Nazi industrialists and its effect extends to the present times. Another benefactor of this financial backing was Kohl. Kohl was adamantlyopposedtocompensationtotheformerslavelaborersundertheNazis.Oneofhislargerfinancial backersandawarcriminalthatemployedslavelaborwasFlick.[54] Gehlen had promised that he would use no SS, SD or Gestapo officers in his organization and promptly enlistedrecruitsfromthoseorganizationsusingphonypapersandfalsenames.By1946Gehlenhadresumed fundingofVlasovsArmy,theundergroundUkrainianarmyandotherNaziquislings.In1947SSofficersFranx Six and Emil Augsburg took charge of the migr work. Both were from the Amt VI group of the SS, the combinedforeignintelligenceapparatusoftheNazis,equivalenttotheCIA.MostofAmtVIstopofficerswere instrumental in the mass extermination of Jews. Six was a major war criminal and was favored by both Eichmann and Himmler. The following is a quote from a 1944 speech Six delivered at a conference on the Jewishquestion. ThephysicaleliminationofEasternJewerywoulddepriveJeweryofitsbiologicalreserves.TheJewish questionmustbesolvednotonlyinGermanybutalsointernationally.[48] HimmlerwassopleasewithSixsworkthathepromotedhimtoanewlycreateddepartmentofhisown, AmtVII.Sixwaseventuallybetrayedandtriedforwarcrimes,foundguiltyandsentencedtotwentyyearsin prison. He only served 4 years before being granted clemency by John McCloy and returned to Gehlens organization.McCloycouldhardlyhavebeenunawareofSixsbackgroundwhenhegrantedthepardon,butit does point out the CIAs active subversion to US laws concerning SS officers and war criminals. Augsburg escapedanyprosecution.Theworkonthemigrsaffairsthesetwowarcriminalsdidservedasashopping listforthewesternAllies. VlasovsarmyandmigrsfromothereasternEuropeancountrieswerethesourcefor FrankWisnerscovertactionsbehindtherapidlydevelopingIronCurtain.Wisnerbelieved incovertactionstoeliminatecommunismratherthanthecontainmentpolicyofKennanor Truman. He recruited heavily from various migr groups. The recruits were trained and oftendroppedacrossthebordersintocommunistterritory.Inmostcases,Wisnersagents met a quick and fatal fate as his agents were quickly apprehended. The thought of a spy within their organization or a mole never occurred to them. Wisner was actually responsibleforwastingmoreNazisafterthecloseofthewarthenduringit.Italsopoints out the extensive penetration of Soviets within the US intelligence system and the poor Frank Wisner screeningofthewarcriminalsthattheCIArecruitedtocombatcommunism. TheuseofVlasovsArmycametobeintegratedwithintheUSplansforanuclearwarwiththeUSSR.The rootsofusingformerNazistoconductguerrillawarfareafterthedroppingofsixtytoseventyatomicbombson theUSSRfirstarosein1947asadvocatedbyHoytVandenberg.FivewingsofB29bomberswerecommittedto

themigrguerrillaarmyproject.[52]TheNazisweretobedroppedinsidetheUSSRafter the bombs had been dropped and to gain control of strategic sites as well as control the localpopulace.Towardstheendof1948,GeneralRobertMcClurehadwontheapprovalof the Joint Chiefs for fullscale guerrilla warfare to follow a nuclear attack on the USSR. Up until 1956 this was the attack plan against the Soviets. It employed thousands of migrs fromtheUSSR,includingVlasovsarmyandWaffenSSmen.Recentlydocumentsdiscovered in the National Archives contained references to a top secret State Department plan to recruit a network of Albanian anticommunists who had previously been denied a visa as General Robert McClure Nazicollaboratorsandwarcriminals.[55] TheastutereadershouldbeaskinghimselfatthispointhowtheUShidVlasovsarmyandsuppliedsucha force. For the most part, the supplies were provided from the excesses of war surplus equipment and presented no real problem. Both the CIA and the military laid claim to controlling authority over this covert forceofguerrillasandfromtimetotimeemployedthemincovertactions.Suchcooperationfromthemigrs waslaterusedtosanitizetheirrecords.TohideanarmyofthousandsinEurope,theUSsimplyhidtheminside ofanotherarmyofsortsinfullviewofeveryone.Theysimplywerehiddeninsidethelaborcampsknownas LaborServicecompanies. Approximately40,000displacedpersonswereemployedintheseLaborServicecompanies,guardingPOW camps, removing bombing rubble from cities, locating grave sites and similar work. Former Nazis were officially barred from these camps, but at least as early as 1946 the Labor Services were recruiting former Nazis.Asanexample,VoldemarsSkaistlauks,aLatvianSSgeneral,andhistopaideswerepartoftheLatvian laborcompanyformedJune27,1946.TalivaldisKarklinswasanothertopNaziintheLatvianlaborcompany. He was a top official of the Madonna concentration camp. His role in torture and murders at the camp was known at least as early as 1963. He immigrated to the US in 1956. Finally in 1981 the office of Special Investigations(theNazihunterswithintheJusticeDepartment)succeededinbringingchargesagainstKarklins resultinginacomplexlegalbattle.Karklinsdiedpeacefullyin1983inMonterey,California.[66] Thus from the end of the war, the personnel that would later become instrumental in the CIA was concentrating on covert action. Truman originally saw the CIA as an informational gathering agency rather thananagencycenteredaboutcovertaction.However,theNationalSecurityActof1947definedfiverolesfor the CIA. The fifth role was to perform all other functions as the National Security Council directs.It was this rolethatwasexploitedbyWisner,Dulles,JamesAngleton,WilliamColbyandothers,whowereresponsiblefor directingthenewlyformedagencyalongtheselines,actuallysubvertingtheintentionsofTrumanandforever changingthefaceoftheCIA. ThesecondsuccessofthiscovertgroupwithintheCIAwasthesubversionofthe1948Italianelection.The firstwastheinterventioninGreece.TheCIAspentover$350millionoftaxpayerdollarsinitseffortstodefeat theCommunistPartyofItaly.Butevenmoreworrisome,theCIAusedAmericansofItalianorCatholicheritage initseffortsthroughdomesticpropaganda.TheCIAscharterstrictlyforbidsdomesticoperations.Additional funding over the $350 million came from captured Nazi assets taken from their Jewish victims and was dispersedthroughtheVatican.[49]ThismoneywasdispensedtotheChristianDemocrats;whilenoneofthis moneyreachedeitherthefascistpartiesorthemonarchists,theremainsofthefascistapparatusandthepolice joinedtheChristianDemocratsasdidmanyofthefascistclerics.Inessencethewealthstolenfromthevictims of fascism was used to place the fascists back in power. Some of this money found its way to Monsignor Bicchierai,whousedittofundanundergroundsquadofanticommunists.Thisgroupwasnothingmorethana groupofstreetthugs,whobeatupleftwingcandidates,brokeuppoliticalmeetingsandintimidatedvoters,in short,areincarnationoftheearlyyearsoftheNaziParty. ThereisevidencethattheCIAhasbeeninvolvedinalmosteveryItalianelectionsince WWII,covertlyfundingrightwingcandidatesandembarrassingleftwingcandidates.The mainelementinwhichthemoneyseemstoflowthroughisP2.InfactOperationGladiois well known in Europe and continues to make headlines while its virtually unheard of in America. Gladio was aimed at preventing the rise of the Communist Party in Italy by supporting and controlling the Christian Democrats. Gladio evolved out of Operation Demanetizeattheendofthewar.AformerblackshirtandmemberoftheKnightsofMalta, LicioGelli,headsP2.[127] The involvement of the Vatican and clerics in the election harks back to the role the Licio Gelli Vatican played in setting up ratlines following the end of the war. Again full detail of the

Vatican ratlines is beyond the scope of this chapter and the reader is referred to Loftuss book, Unholy Trinity.AngletonandDulleswereintimatelyinvolvedwiththeVatican.Thefirstinvolvementwastheroleof MonsignorDonGiuseppeBicchieraiasanintermediaryinthesurrenderofWolfandWalterRauffinOperation Sunrise.Rauffwasamajorwarcriminalwhodevelopedthegastruckexecutionprogram.Thebestevidenceto datelinksBicchieraitoaidingRauffsescapefromEurope.Theseratlinesprovidedacrucialescaperoutefor formerwarcriminals.ManyofthewarcriminalsescapedtoSouthAmerica.InfactoneSouthAmericancountry receivedsomanyformerwarcriminalsthatitpassedwordtotheUSmilitaryintelligencethatitwouldaccept no more.[56] But other countries, many in the Middle East, as well as Canada, and Australia, received war criminals.ManyofthewarcriminalsthatarrivedfirstinSouthAmericalaterenteredtheUnitedStates. For the most part these war criminals files had been altered, covering up their crimes in the holocaust. Oftentimesitwaswiththehelpfromvariousintelligenceagenciesthattheirfilesweresanitized. RecentlyamemodatedOctober21,1946fromtheTreasuryDepartmenthassurfacedlinkingtheVatican directlywithhidingNazigold.ThememoquotesareliablesourceinItalyasconfirmingthattheVaticanwas safeguarding approximately 200 million Swiss Francs for the Nazis. Presumably this gold was from the Nazi quislings,theUstasha.[67] Manypoliticianshaveembarrassinglinkstotheseratlines.RonaldReaganhelpedtoraisemoneyforoneof Dullesfrontgroupsthatwaslaunderingmoneytofascistfreedomfighters.Caseyworkedforanotherfront group,theInternationalRescueCommittee.[59]Theseratlinesstillappeartobefunctioningtoday.ManyNazis havefoundanewhomeintheWorldAntiCommunistLeagueheadedbyGeneralJohnSinglaub. AlthoughthefirstNazitoentertheUSforintelligencepurposeswasGehlen,whowasbrieflyinterrogated beforebeingsentbacktoGermanytosetuphisspynetwork,thefloodgatesdidnotopenuntil1948withthe passage of the Displaced Persons Act. Likewise von Braun and some of the first Paperclip scientists were admittedbeforePaperclipevenexistedasaformaloperation.UndertheDisplacedPersonsAct,areligiousor charitablegroupcouldsponsormigrs.[56]ItwasbythismethodthatStanislawStankievichenteredtheUS afterhisfilehadbeensanitized.StankievichwasawarcriminalandmemberoftheEinsatzgruppeB;hewas theonethatgavethe ordertomurderover7,000JewsinBorissow.[57] Onceinthe US,thesewarcriminals were then free to sponsor additional migrs. By this method, the entire Belarus Nazi quisling government came to settle around Patterson, New Jersey. The writer does not wish to imply here that all of the migrs werewarcriminalsorNaziquislings.Themajorityofthemigrswerehonestpeopledisplacedbyaworldat war,butthewarcriminalswereallowedinmixedwiththesemigrs. Themostdisturbingaspectoftheinfluxofmigrgroupshasbeenonthedomesticpoliticalscene.Itwas already mentioned that Nixon thought these migr groups, controlled largely by fascists, were useful in getting out the vote. He was not the first, however, to recognize this. Arthur Bliss Lane used the Crusade for FreedomtogenerateenthusiasmamongthemigrgroupsfortheRepublicanPartyinthe1952election. Byplayingonthenationsphobiaofcommunism,theRepublicanscampaignedonaprogramofliberation rather than the containment policy of Truman and the Democrats. Republican tactics within the migr communities were almost indistinguishable from the CIAs Crusade for Freedom. Lanes specialist in the UkrainiancommunitywasValdimirPetrov.PetrovwasaNaziquislingcityadministratorofKrasnodar.During his time as administrator, the gas trucks were introduced and at least 7,000 were killed in that manner.[60] There is no evidence that these migr groups were useful in swaying the results of an election; however, it doespointupthedesperatenatureandtowhatlengthstherightwingelementintheUSwillgotoobtainand keeppower.TherealvalueofthemigrstotheRepublicanPartyhasbeenmorewithinthepartystructure andshapingthepartysphilosophy,butthatdidntcomeaboutuntilaftertheelectionofNixonasPresident. Evenmoredisturbingisthecontinuingsupportthatthesewarcriminalsreceiveoncetheyareexposedand subjected to deportation hearings. The case of a New York housewife by the name of Mrs. Hermine BraunstienerRyanwillbeusedasanexample.AfterthewarshehadfirstimmigratedtoCanadain1958she marriedanAmericanandmovedtoQueens,NewYork.In1963shewasbecameanaturalizedcitizen,andin 1964shewasexposedasaformerNaziconcentrationguard.Onewitnessatthetrialdescribedhowshehad whippedaninmateatMajdanektodeath.Mrs.Ryanwasahousewifeofatradesmanwhohadahardtimeto makeendsmeetbyherownaccount.HowthenwassheabletoaffordtheservicesoftheBarrylawfirm,oneof themostexpensiveandexperiencedlawfirmsspecializinginimmigration,foralmostadecadefromfirstbeing exposedin1964untilthe1974trial?WhofundedthetworesearchtripsBarrrymadetoAustralia?Thefunding sources are yet unknown today, but with the other incidents of interference with the prosecution that came fromwithinthejudicialsystem,allfingerspointtowardstheintelligencecommunity.

TheexampleofMrs.Ryanillustratestwopointsthatcommonlyrunthroughoutdeportationcases.Onethe defendantisreceivingtoplevelhelp,mostlikelyfromtheintelligenceagencies,andtwoinvariablytheyinvolve lowlevelofficialsorguards.ThetopechelonoftheformerNaziquislinggovernmentsseemstotallyimmune from prosecution, even after being exposed, with a few notable exceptions. A case in point is that of Laszio Pasztor,aconvictedNazicollaboratorwhowasimprisonedforhisroleinWWIIasamemberoftheHungarian ArrowCross.PastorwasadiplomatfortheNazipuppetgovernmentinHungary.HisnamesurfacedintheBush campaignof1988asaworkerforPaulWeyrichsFreeCongressFoundation.[42]Noattempthasbeenmadeto deporthim.EarlierPasztorwasaleaderof1968NixonAgnewethnicunitintheelectioncampaign.Sincethen hewastheorganizerfortheRepublicanEthnicHeritageGroups.Thesegroupsarecomposedoflargelyfascist mindedmigrs.[43] But even more iniquitous was the numerous programs set up by various branches of the intelligence communitytograntvisastoNaziwarcriminals.Paperclipisthemostwidelyknownandresearched;however, there were several other programs in addition to Paperclip. Many of these evolved out of the right wing hysteriaovertheevilsofcommunism.EveryintelligenceagencywastryingtorecruitformerNazistodeprive the Soviets of their use, including those of England and France. The Soviets likewise recruited former Nazis. GrantingvisastoNazisorwarcriminalswasexplicitlyagainstthelawsandprohibitionspassedbyCongress and very clearly against the wishes of Truman. In 1949 Congress passed the Hundred Person Act which allowed the CIA to bring in not more than 100 people in a year that were ineligible for visas otherwise. The Pentagonhadasimilarmeasure. TheHundredPersonActwasoriginallypassedasameanstocontrolformerwarcriminals.Thevisawasto beonlytemporaryandnotpermanent,thusifthefascist,onceinsidetheUS,refusedtoworkaccordingtothe agreement, he could be deported easily. In at least one case Wisner wanted to grant a Beleyorussian Nazi permanent status under the Hundred Person Act until his file in the National Archives showed him to be a communist.[61] How the CIA defines no derogatory information points to the heart of the matter in the admission of the former Nazis to the US and the continuing cover up. Recently a CIA official defined no derogatoryinformationasnoevidenceofprocommunistactivities. Nazisareregardedasanticommunist,henceanyevidenceofNaziactivityisnotderogatory.Additionally the CIA similarly uses a narrow definition of employees and agents to stymie investigators and researchers. Likewise,theFBIusessimilarlynarrowdefinitions.TheFBIdistinguishesbetweeninformantsandconfidential sources,casualsourcesandvolunteers.TheFBIrefusestoevenreleasethenamesofconfidentialsourcestothe assistant attorney general of the Criminal Bureau. Intelligence agencies also change their filing system often. Onceoldfileclerksretire,allmemoryoftheoldfilesystemiserasedandeventheagencycannotfindit.For instancetheCIAcouldnotevenfindtheGehlencollectionuntilitwasfurnishedtheexactcryptonym.[62] Preceding the Hundred Person Act by a year, Project Bloodstone began operations in 1948. Bloodstone itselfcanbethoughtofastheturningpointfromtacticaltostrategicuseofformerNazis.UpuntilBloodstone, theuseofformerNazisandtheirquislingswasmoreshorttermorevenexploitativeoftheirknowledge.With Bloodstonetheobjectiveswerelongertermandmorestrategicinnature.Bloodstonewasrathershortlived, endingin1950whenitwassupersededbyotherprogramsunderdirectCIAcontrol.Itwasalsothefirstcrack in the flood gate allowing Nazis quislings into the US. Many of those admitted into the US under Bloodstone wentontobecomecovertsaboteursandassassinsforUSintelligenceagencies.Besidestheusualcampguards, Bloodstone was the route into the US for the top echelon of Nazi collaborators and leaders. Its primary sponsors were Frank Wisner and Robert Lovett. Wisner initially proposed that Bloodstone would allow 250 into the US, 100 of which would be assigned to the Department of State to be engaged mostly in Voice of Americaand50tobeassignedtoeachmilitarybranch.[63] Bloodstone was initially approved June 10, 1948 by the State, Army, Navy, Air Force Coordinating Committee; a month later the Joint Chiefs approved a second interlocking program expanding Bloodstone to includecovertwarfare,sabotageandassassinationswhereasoriginallytheplanwastobedevotedtofillingin intelligencegaps.InJuneof1948theNationalSecurityCouncildeliveredTrumansapprovalofNSC10/2which authorizedthetypesofclandestineoperationsthatwouldbeengaged.ItmarkedahugeturningpointinUS Sovietrelationships.InregardtoNazis,thesolepurposeofBloodstoneseemstohavebeentocircumventUS immigration laws. In fact a special subcommittee of Bloodstone was created to provide false identification, coverjobsandsecretpoliceprotectiontoimmigrants.[64] Perhaps the most damning of all aspects that can be traced back to Bloodstone was the beginning of the CIAsmanipulationofthefreepress.TheNationalCommitteeforaFreeEurope(NCFE)wasathinlydisguised

CIA front organization. Dulles and Wisner used their combined talents in lining up and all star board of directors, many of which where Wall Street lawyers. The NCFE depended upon the media to cloak its true missioninsecrecy.EarlymembersofthiscorporationswereHenryLuceof TimeLife,DeWittWallaceof The Readers Digest,andC.D.Jacksonof Fortune.Theneteffectofthiswasthecreationofapowerfullobbywithin the free press to suppress critical news of the CIA, a lobby that still very much active today.[65] Equally disquietingistheinterferenceindomesticaffairsbyanagencythatisbarredfromalldomesticactivities. Thesubjectofthefreepressisbroachedinmoredetailinanotherchapter.Herewewillonlyestablishthe connectionsbetweenthefreepressandtheCIAsabusiveconnectionswithitandtheCIAsinvolvementwith otherdomesticorganizationssuchasuniversityandtheuseofprivatefoundationsasfronts.Surprisinglythe warcriminalsinthemigrgroupswereexposedtosomeextentduringthelate40sandearly50s.Returning militarypersonnelwereincenseduponfindingwarcriminalsworkingatUSmilitarybases.Othergroupssuch astheMinnesotachapteroftheAmericanChemicalSocietywereoutragedthatmigrsweregivenpreference forjobsovertheirmembers.[89]AnotherexampleofgrantingtheNaziscientistpreferenceoverUSworkers stemsfromthefailureofAirForcerecruitmenttoofferasinglejobtoengineerslaidofffromNorthAmerican Aviation; instead they sent six recruiters to Germany where they recruited thirty five exNazis.[94] migrs with scientific skills not needed by the defense establishment were placed either in private business or in university positions at the urging of the CIA. It was largely due to the need to cover up these leaks and exposuresthattheCIAbecamecloselyassociatedwiththepressandlaunchedamajordomesticpropaganda blitz. OneofthelargerfrontgroupstheCIAwasusingdomesticallytomanipulatethepoliticalclimateinsidethe US was the Crusade for Freedom (CFF). The CFFs main focus was on liberation of the countries in which communism held sway rather than on containment. The risk of a direct confrontation or nuclear war was ignored.TheCIAmadeadirectcontributiontotheantiCommunisteducationthroughtheCFFoffivemillion dollars. To put this figure into perspective this figure exceeded the combined total of all money spent in the TrumanDeweyPresidentialelectioncampaign.ItfullyestablishestheCIAasthelargestmanipulatorofpublic opinion.[69] Several other domestic groups were used as fronts for the CIAs propaganda campaign; among themaretheCommitteeforaFreeEuropeandCommonCause(norelationshiptotodaysgroupbythesame name). ThefollowingquoteoverReagansinvolvementwiththefrontgroupCrusadeforFreedomillustratesjust howpervasiveandextensivetheseoperationswere. In 1952, at MCA, Actors Guild president Ronald Reagana screen idol recruited by Mockingbirds CrusadeforFreedomtoraisefundsfortheresettlementofNazisintheUS,accordingtoLoftussigned a secret waiver of the conflictofinterest rule with the mobcontrolled studio, in effect granting it a labor monopoly on early television programming. In exchange, MCA made Reagan a part owner. Furthermore, historian C. Vann Woodward, writing in The New York Times, in 1987, reported that Reagan had fed the names of suspect people in his organization to the FBI secretly and regularly enough to be assigned an informers code number, T10. His FBI file indicates intense collaboration withproducerstopurgetheindustryofsubversives.[70] Perhapsthereisnobetterexampleofthepropagandaplacedinthepressthanthe1949articleappearingin LifebyWallaceCarollinmanipulatingthepublic opinionoftheNazi quislingsandwarcriminals.Theywere castinthelightoffreedomfighters,asthefollowingexcerptshows: There was no Partisan movement in their area no sabotage, and the peasants fulfilled the German requisitionsoffarmproductsonschedule.Theattributionofatrocitiestothesetroops,aswellasthe numerousproNaziandantiSemiticperiodicalspublishedbytheVlasovorganizationduringthewar, wereforgerieswhichtheSovietpropagandistsshrewdlyattributedtoVlasovsforces.Thesefactshad been known for a long time to Russian experts of the State Department and to a small number of American officers. Carolls conclusion was in part that America needed to embrace the former Nazi collaborators as a central tactic in a comprehensive strategy of political warfare against the Soviets.[71] TheuseofthepressforpropagandapurposesfellunderabroadCIAoperationdubbedMockingbirdformedin the late 1940s. The full extent of Mockingbird and Operation Chaos came to the surface in the Church Committee hearings and the Rockefeller Commission in the aftermath of Watergate in the mid 1970s. The RockefellerCommissionwasnothingmorethanawhitewash.Thereadershouldnotethepreviousconnection

ofRockefellerandthewartimeOSS,butRockefellersintelligenceconnectiondidntendwiththewar.In1954 hebecamethesupercoordinatorforclandestineintelligenceoperations.AmembertonoteoftheRockefeller Commission for his later advocacy of censorship was Reagan.[72] As an example of lack of concern or seriousness of the Rockefeller Commission is the behavior of Reagan. He left the first meeting early, and managedtomissthreeofthenextfourmeetings;infacthewassobusypoliticalstumpingthatheonlyvisited theheadquartersonceinthefirstmonth.[103]OperationChaoswasaCIAoperationofdisruptingtheantiwar movement and leftist groups of the 60s and early 70s. It will be dealt with in another chapter including the FBIssisterprogram,COINTELPRO. Findings from the Church committee revealed that in the past the CIA had up to 400 agents posing as journalistsorjournaliststhatwerecooperativewiththeCIA.TheCIAregardedCBS, The New York Times,and The Washington Postastheirmostusefulassetswithinthemedia.[74]Otherconnectionsbetweenthemedia and the CIA included Henry Luce of TimeLife, DeWitt Wallace of The Readers Digest, Barry Birgham of The Louisville CourierHerald and James Copely of Copley News Services. All major news outlets were involved includingABC,NBC,UPI,AP,Reuter,Hearstpapers,ScrippsHoward, Newsweekmagazine, Miami Herald, The Saturday Evening Postand The Christian Science Monitor.AnotherconnectionworthyofnotinghereisWilliam Casey, Reagans Director of the CIA, who made a fortune in investing in Capital Cities Broadcasting Corporation.[83] TheextentoftheCIAinfiltrationofthemediacanbestbeillustratedbytheexampleofCBS.WhereWilliam Paley was openly supportive of information exchanges, Sid Mickelson was reported to have received cash paymentsforinformation.AnotherconnectionbetweentheintelligencecommunityandCBSisJosephReam,a formerWallStreetlawyerandoncedeputydirectorofD/DIRNSAofficeintheNationalSecurityAgency(NSA) whobecameanexecutivevicepresidentatCBSuponleavingtheNSA.[73] Thefullextentoftheperversionofthefreepressisexploredinmoredetailinaseparatechapter.Abrief lookattheevolutionofthecorruptionofthemediaanditsaccompanyingsister,secrecy,hereisneeded.The publishing of the Pike Report by The Village Voice on February 16, 1976 revealed, for the first time, the shockingextentofCIAexcesses.Thereportrevealedcostoverrunsof400percentforforeignoperationsand 500percentfordomesticoperations,thehugepropagandanetworkrunbytheagency,andtheexistenceofa military capacity greater than many foreign governments. CIA Director Bush moved to stem the leaks. Bush wassuccessfulinlobbyingCongresstolimititsoversightoftheagencyandinextendingsecrecyagreements beyondjusttheemployeesoftheCIA.BushalsoestablishedthePublicationsReviewBoard,thefirstpeacetime governmentcensor.TheReviewBoardgavetheCIAthepowertocensorallspeechesandwritingsofformer agents;theReviewBoardmustfirstapproveallbooksbyformeragents.[75] A dark cloud of secrecy began blanketing the country with the election of Reagan in 1980. In 1981 the interagencyInformationSecurityCommitteewasestablishedunderthedirectionofRichardWillard.Reagan, neverthechampionofcivilrights,wasconcernedwithstemmingleaks.Theleakswerenotleaksofsecrets,but rather leaks of damaging or embarrassing infighting or information. The trigger for establishing Willards groupwasthedisclosuresofDavidStockmanonbudgetmattersandthefailureofdummysideeconomics.One recommendation coming from Willard group was to prosecute leakers or whistle blowers for theft of information,claimingthatthegovernmentheldthecopyrighttoalldocuments,whichisadirectviolationofUS copyright laws prohibiting the government ownership of any documents. The group also called for a system widesecrecyagreement.[76] WithReagansreelection,BushwasappointedheadoftheTaskForceforCombatingTerrorism.Withthis mandate Bush set a course for further limiting Congressional oversight of the CIA. The big lie here was that terrorismwasdecliningin1985;infactonly7incidentsofterrorismoccurredin1985downfromahighof29 in1980.Perhapsthemostgrievousaspectofthetaskforcerecommendationswastheredefiningterrorismas political theater designed to undermine or alter government authority or behavior. In effect it was now a crimetothinkdifferentlythanthegovernment.TheBostonTeaPartywouldbedescribedasterrorismunder this definition, so would have the civil rights marches, the feminist movement and the environmental movement.[77] DuringtheReaganandBushpresidencies,censorshiprosetoatrulyOrwellianproportion.Itemsthathad previouslybeenpublishedcouldbereclassifiedassecretandcensored.Perhapsthefollowingitemwillgivethe reader an idea of the Orwellian censorship of the CIA. An Ernest Fitzgerald was an engineer assigned to a positioninpositionofprocurementandcostcontrolintheAirForcein1966.Withinayearofacceptingthe position, he issued a scathing speech on the archaic Pentagon procurement system. He pointed out how

contractorscouldbilkthegovernmentoutofmillionsofdollarsbecausetheyhadnofactsabouttherealcostof weaponssystems.Manylistenersaskedhimforacopyofhisspeech;however,beforehecouldprovidethem with a transcript, it first had to be approved by the Office of Security Review. They ordered Fitzgerald to neither distribute nor print the speech. After obtaining a copy of the reviewers comments from a security guard,FitzgeraldfoundthatoneofthethingsthecensorsobjectedtowerehisquotesfromFrancisBacon,the father of the scientific method.[78] Mind you this was before the security was tightened under Bush and Reagan.Canyounowimaginewhatwouldbecensoredafterthesecuritywastightened? OnefinalexampleofhowtheCIAmanipulatespublicopinionforpoliticalpurposesandaswellashowthey areutterlyafailureatintelligenceisquotedbelow. WhenMikhailGorbachevassumedpowerin1985,CIAsenioranalystsalmostimmediatelystatedthat his efforts for peace were genuine. In fact, the CIA believed that his projected reforms, perestroika, wouldrequiretheSovietUniontotrimbackconsiderablyitsmilitaryexpenditures,sinceconsiderable emphasiswouldhavetobeplacedonconsumerindustries.YetayearlaterinanApril1986memo,the CIA sought to mislead the American public by characterizing the Soviet Union as a rapidly growing militarymachine. This CIA report was well received by Reagan, giving him more leverage to continue to fund the Americanwarmachine,includinghispet$40billionprojectofstarwars.TheCIAexaggeratedforecasts ofthenumberofstrategicnuclearwarheadswhichtheSovietUnionwasplanningondeployinginthe following ten years. It was predicted that the Soviets would build a staggering 20,000 warheads by 1995.Thiswasvirtuallyimpossible,sinceitwouldhaverequiredtheincreaseinSovietexpenditureson strategicforcesof11percentto13percenteveryyearforadecade.UltimatelytheSovietUnionnever deployedeven12,000warheads,andtheSTARTtreatysignedin1991actuallyrequiredtheSovietsto reducethenumberofnuclearwarheadsto3,500. By1988,theCIAreportedthatperestroikawasfailingandthattheSovietUnionwasrevertingtothe old order. Then in the summer of 1991, CIA analysts stated that a coup was unlikely because the conservativeelementhadwaitedtoolong,losingthesupportoftheKGB.[85] InotherwordstheCIAfailedtopredictthedownfalloftheSovietUnion.Butthisisnottheonlyrecentfailure of the ability of the CIA to correct analyze the situation and make correct predictions. They failed to predict eitherIndiasorPakistansabilitytobuildanatomicbomb. Thiselaboratedisinformationandsecuritynetworkwasneededtoprotecttheeverincreasingnumbersof war criminals being admitted to the US. Bloodstone started rather humbly with a yearly cap of just 250 persons, but the CIA and particularly Wisner had much larger plans. By 1950 CIA representatives asked Congress for a plan to authorize special importation of up to 15,000 CIA sponsored refugees, in addition to those already entering through the Displaced Persons Act. The bill that finally passed Congress allowed only 500overathreeyearperiod.However,Congresssrefusaltoallowforthefull15,000wasnottheendofthe CIAsplans.InsteadtheCIAexpandeditsauthorityunderNSC86,andNSCIDs13and14toemploytheNSCs authorization to sponsor indirectly many of the same migrs it had planned to import. US based refuge programsfromvariousprovincesoftheUSSRwereeagertosponsormanyofthesamepeopleWisnerwanted. ManyofthewarcriminalsfromLatvia,Lithuanian,BelarusandtheUkraineenteredinthismanner.[79] OneofthemorenotoriousBloodstonebeneficiarieswasGustavHilger.Hilgerwasapersonalsecretariatto JachimvonRibbentropandasaliaisonofficerdirectlyprocessedthereportsfromtheSSEinsatzugruppen.He alsohadasignificantroleinthecapturingandexterminationofItalianJews.AnotherBloodstonerecruitwas NikolaiPoppe,bothPoppeandHilgerplayedinfluentialrolesinformattingUSpolicytowardstheUSSR.[80] A1978GAOstudyestablishedthattheCIAhadaclearworkingrelationshipwiththewarcriminalsamong themigrgroups.Inasampleof111warcriminals,thestudyfoundthat20%hadworkedasinformantsfor intelligenceandsecurityagencies.[81] AfteranembarrassingincidentwiththeassassinationsquadsinGermany,theUSintelligenceandmilitary leaders decided it would be for the best if the brightest and most promising were brought into the US. Once admitted to America they were to become incorporated into the Army itself under Army control, but with willing cooperation with the CIA on special missions. In 1950 the Army lobbied Congress to pass what has becomeknownastheLodgeAct.TheLodgeActinitiallyallowed2500aliennationalsresidingoutsidetheUSto enlistintotheUSArmywiththeguaranteeofUScitizenshipafter5yearsofservice.LaterCongressraisedthe limit to 12,500. Once again the writer wishes to remind the readers that not all persons admitted in this

mannerwereNazisandwarcriminals,thevastmajorityhaveproventhemselvestobeloyalcitizens.Butlike alltheotherprogramstheCIAchosetomixinNazis,includingformerGestapoagents. IronicallyJewsweremostlyexcludedfromenteringtheUSinthismanner.TheAdjutantGeneralOfficehad brandedthemasoneofthemorepoliticallyunreliablegroups.ThefirstgroupofLodgerecruitsweremostly PolesandUkrainiansandarrivedinOctober1951.About25%oftherecruitswerechanneledintoconfidential slots such as biological, chemical or atomic warfare specialists. Others were used as translators and were postedtotheDefenseLanguageSchoolinMonterey,California.TheremainderwassenttoFortBragg,North Carolina for special guerrilla training and became the nucleus of the Green Berets. This is the reason for the NazistyleracismthatwasprevalentintheearlyGreenBerets.By1952only211outof5,272applicantshad passedtheArmysscreentests.SpecialForcesrecruitersthenlowerthelanguageandliteracyrequirementsto attractmorerecruits.[82] AnotherlesserknownprojectwhosesolefunctionseemstohavebeentoprovidearatlineintotheUSfor formerNazisandwarcriminalswasNationalInterest.PaperclipwaslimitedtoGermanandAustrianscientist whoworkedfortheUSMilitary.In1947theJointIntelligenceObjectivesAgency(JIOA)liftedthoseconstraints, creatinganewoperation,NationalInterest.NationalInterestoperatedattwolevels.Themostvisiblewasthe employing of German and Austrian scientist by universities, defense contractors and private industry. Either theDepartmentofCommerceortheDepartmentofDefensesponsoredthesescientists.Thesecondlevelwas cloakedinsecrecyandinvolvedtheuseofthesemigrsincovertactivities.NationalInterestassumedthatall ofthislattergroupwouldbebarredfromimmigrationbecauseoftheirpast.AliensadmittedtotheUSunder NationalInterestaswellasthoseunderPaperclipwerefirstsenttoCanadaandthenallowedtoreentertheUS asresidentaliens.InsomecaseMexicowassubstitutedforCanada.[86] One of the most brazen examples of the type of persons allowed to immigrate to the US under National InterestwasOttoAmbros.AmbroswasdirectorofI.G.Farben.BritishintelligenceshowsthatAmbrosjustified theexperimentsofFarbenstestingnervegasonvictimsintheirlabsbyclaimingtheywouldhavediedinthe campsanywayandthattheexperimentswerehumaneinthattheysavedthelivesofmanyGermanworkersin theirplants.AmbroswasfoundguiltyofslaveryandmassmurderatNuremberg,butonlysentencedtoeight yearsinprision.In1951JohnMcCloyreleasedAmbrosfromprison,alongwithmanyothers.W.R.Graceand DowChemicalimmediatelyemployedAmbrosasaconsultant.HewasalsoaconsultantwiththeUSmilitaryin conductingthesametypeofexperimentsthathehadconductedatFarben,thetestingofnervegasusingseven thousandUSsoldiersatEdgewoodArsenalasguineapigs.[87] Anotetothereader,thiswriterdoesnotwishtoequatetheseexperimentstothehorrorsoftheHolocaust. Hopefullythosehorrorswillneverrevisittheplanetagain,butgivenmansinhumanitytohisfellowman,that iswishfulthinking,astheseexperimentspointoutthatthelessonwasneverlearnedfromtheHolocaust.The US military immediately set out a course for using chemical and biological weapons. Several soldiers were injuredinthegassingexperiments,someseriouslyenoughtorequirehospitalization.IronicallyweusedNazi scientists to perform the same type of experiments on our own soldiers that we had brought war crimes against at Nuremberg. One part of the Nuremberg Code established to prevent similar atrocities was that all testsubjectsbefullyinformedandgivevoluntaryconsent.ThesecretaryoftheArmyissuedadirectivetothat effectin1957;however,in1975investigationsshowedthat,despitetheguidelines,thetestswereconducted without informed consent.[90] This applies to all of the experiments that came out of Paperclip and its associated operations and projects. Eventually some of these experiments extended to using civilians as unknowingtestsubjects. AnotherexampleoftheCIAmanipulatingdomesticpolicystemsfromthefalse1948telegramfromGeneral LuciusClaythatwarwiththeSovietsmaybeimminent.EvidenceappearsthatthemessageoriginatedwithLt. General Stephen Chamberlin, at the time Director of Intelligence. Chamberlin was trying to rescue Operation PaperclipduetotheconsiderableburdenoftheArmymaintainingcontrol. TheArmywantedtoshutPaperclipdownbecauseofthecost.ChamberlinvisitedGermanyandcautioned Clay about the sorry state of readiness of US forces and the need for public support for the militarys appropriationsbillsbeforeCongress.ChamberlinaskedClaytosoundanalarm.OnMarch5Claysenthiswar warningmessagetoWashingtonwhichsoonsetoffsomewhatofapanic.ThisfalsescarerevitalizedPaperclip and national interest. The final outcome of the false telegram was its effect on both Paperclip and national interesttoshifttheirfocustogettingGermanscientistsoutofEuropetodeprivetheSovietsoftheiruse,evenif itmeantsmugglingwarcriminalstosuchcountriesasArgentina.[88]

There is one further operation to expose before looking at Paperclip; it was simply known as 63. It operated throughout the 1950s nonstop. Up until 1950, a total of 665 individuals were brought into the US underPaperclip;another687werebroughtinfrom1950to1959.Project63ssolepurposewastodenythe SovietstheuseofGermanscientists.TheimmigrantsunderProject63weregiven$5,000andatemporaryvisa toentertheUSforsixmonthstoseekworkwhilestayingat theAlamac HotelinNewYorkCity.Mostfound employment with universities or defense contractors. The net effect was that the US taxpayer paid to help formerNazisobtainjobswithsuchcorporationsasLockheedandMartinMariettaamongothers.[91] Recruitment under Project 63 was active, despite denials to the German government complaints that US recruitment of German scientists was hurting their recovery. Project 63 found a large pool of untapped expertiseinAustria,despitetheirpastrecordaswarcriminalsormembershipintheCommunistParty.Infact Project63recruitersweresounconcernedabouttheNazibackgroundoftherecruitsthattheyevenattempted to contract convicted war criminals still serving time in prison. An example of such disregard for past Nazi activitieswasthecaseofrecruitingEduardHoudremont,whowasservingtimeforwarcrimes.Houdremount wasatopofficialofKruppandwasconvictedforhisinvolvementintheuseofslavelabor,buthewasonthe K list or those whose talents should be denied from the Soviets. The following quote is from the brief discussionofJIOAoverwhethertoofferHouremontacontract. Thepointtoconsideriswhetherthenewspaperpublicitywouldbeadverseifhewerebroughtover, JIOAmemberMaxBrokawsaid. IfthemanisontheKlistandheshouldbebroughtover,weshoulddoitregardlessofthepublicity, repliedJIOADeputyDirectorJamesSkinner.[92] Suchwasthewidespreaddisregardforbackgroundchecks.AnothertimeBrokawadmittedthattheAustrians backgrounds had not been checked; included among that group of recruits was one individual under investigationbytheFBI.HestatedthattheplanwastobringthemintotheUSandlater,ifsomewerefound inadmissible,theymayhavetobeboughtoff.KarlBlomewasonesuchcasethathadtobeboughtoff.Blomes pastmedicalexperimentsarelistedalittlelater;hewasamajorgeneralintheSA.[93] AfterlookingatthemanyaspectsofPaperclipandotherintelligenceoperations,bothwithintheconfinesof Paperclip and outside of it and how they evolved from the restricted military usefulness of the recruits to a muchbroaderprograminattemptingtodenytheSovietstheservicesoftheseNaziscientistsintheeventof another war, its time to look at the origins of Paperclip. The first record of any actions toward such an operation came on December 1, 1944 when Bill Donovan, head of OSS, asked President Roosevelt if recruits couldbegivenspecialprivilegesincludingentrytotheUSafterthewar.Rooseveltsbluntreplyfollows. I do not believe that we should offer any guarantees of protection in posthostilities periods to Germanswhoareworkingforyourorganization.Ithinkthatcarryingoutofanysuchguaranteeswould bedifficultandprobablybewidelymisunderstoodbothinthiscountryandabroad.Wemayexpectthat thenumberofGermanswhoareanxioustosavetheirskinsandpropertywillrapidlyincrease.Among them may be some who should properly be tried for war crimes or at least arrested for active participation in Nazi activities. Even with the necessary controls you mention, I am not prepared to authorizethegivingofguarantees.[96] ThebirthofPapercliphaditsoriginsinthesummerof1945attheHotelWittelsacherinBadKissingen.Itwas at this hotel that the German scientists from Peenemunde were held. Colonel Putt soon convinced General Hugh Knerr that their technical knowledge would benefit the Air Corps. Knerr sought permission from WashingtontobringfiveofthesescientiststotheUS.TheWarDepartmentassuredTrumanthataccusedwar criminals would be kept in close confinement and stern control. The deciding factor for approval for their admission to the US was the continuing war with Japan. With the inclusion of the following phrase Project Overcastwaslaunched. Ifanyspecialistswhoarebroughttothiscountryaresubsequentlyfoundtobelistedasallegedwar criminals,theyshouldbereturnedtoEuropefortrial.[97] Thisrestrictionwouldsoonbeignored.ItshouldbenotedthattheProjectOvercastonlyallowedfortemporary visas; after the scientist had completed his assigned task he was to be returned to Germany. Overcast was controlled by three military intelligence agencies, which allowed it to be cloaked in darkness away from the prying eyes of the public. Those agencies were Joint Intelligence Committee (JIC), the Joint Intelligence ObjectivesAgency(JIOA)andtheExplorationBranchofG2.[97]

O of the myths One m about Paperclip is s that the German scien ntists were kept k under a a close watc ch by the milit tary.Infactn nothingcoul ldbefurther rfromthetruth.Security ywaslaxto saytheleast t.Inmanyca asesthey were e permitted to travel ab bout freely; their mail was rarely checked, no or were thei ir phones ta apped or monitored. An example e of th he total lack k of control the military y had over the t German scientists was w in the ng of the GE E Hermes II I missile. Se everal German scientists s were posi itioned at a distance second test firin oundingthe sitetoobser rvethetest firingandto oradiotheco ommandcen nterincaset themissilev veeredoff surro track ksothefuel couldbecut ttotheengin neandstop itsflight.Themissiledid dveeroffcou ursetothesouth;the Germ manobserversknewitw wasoffcours seandallow wedittocont tinueitsfligh htinwhichi itlandedabo outthree miles s from the main m busines ss district of f Juarez, Mex xico in a heavily popula ated area. Th here was evi idence of sabo otage;noatte emptwasma adetorestricttheGerma anscientists.[100]Infac ctatleastthr reeoftheGe ermansat Whit teSandsare knowntoha avehadilleg galmaildropsinwhichth heyreceived dmoneyfrom mforeignsou urcesand code edmessagesfromSouthA America. The whole w lax se ecurity aroun nd Paperclip p contribute ed to the ease with which the Soviets penetrat ted the ope eration. Although there is b Soviet moles m from th he evidence that the operation was corrupted by g, Donald Maclean M was s the first secretary of o the Britis sh beginning Embassy and Soviet mole m who of ffered help in i the recrui itment of Na azi hich scientis sts were to oo scientists. Maclean supplied a list of wh tanttorecruit.Amongth henameswerethoseofO OttoHahnan nd unimport l as hav ving negligible value. Both Carl von Weizsacker. Hahn was listed Don nald Maclean Dr. Otto O Hahn d Weizsacke er were as well known in scienti ific circles as Hahn and Chur rchillorRoos seveltwerei inpoliticalcircles.InfactHahnwent tontowinth heNobelPri izeinchemis stry;both menweregiantsintheirfield ds.[98] B the spring of 1946, the name of Operation Overcast By O had d been chang ged to Paper rclip and wa as closely coordinated with h the British h programs. Britain was s already exp ploiting seve eral groups inside Britai in and in ch 1946 beg gan dumping g German scientists on other Comm monwealth countries, in ncluding Can nada and Marc Aust tralia.Someo ofthosethat tweresenttoCanadalat terenteredtheUSinthe 1950sunde erPaperclip. TheJIOA gove erning comm mittee by th his time had d already em mbarked on n its own agenda. a Sam muel Klaus, the t State Depa artmentrepr resentative,w wasbeingroutinelyexclu udedfromm meetings.Theagendaofth hemilitaryof fficerson theg governingcommittedwastoexpandt therecruitm mentlisttoincludePOWs, ,militaristsa andSSofficersamong others they deem med useful. Monroe Hag good, the bra anch chief of o G2, was in nstrumental in hatching a plot to ggleSSoffice ersintotheU USunderPap perclip.Thep perceptionth hatPaperclip ponlyrecruit tedscientists sisbased smug onamythandno ottheactualfacts.[99] T Thefinalpoli icyforautho orizingtheex xpansionofP Paperclipwa aspresentedtoTrumanb byactingSec cretaryof State e Dean Ache eson with his recommen ndation and the military ys recommendation to sign s it. It defined the polic ciesandproc ceduresthatweretobefo ollowedexpl licitly.Itinclu udedthefollowingclause e. No person found f by the e Commandin ng General, USFET U to ha ave been a member m of th he Nazi Party y and m morethanan nominalpart ticipantinits sactivities,o oranactives supporterofNazismorm militarismshallbe b broughttoth heUShereun nder.[99] The readershouldnoteherethatthoseinvolvedwith hsubverting gthegovernm mentpolicy ofbanningN Nazisand rom entering g the US we ere conducte ed mostly by y midlevel bureaucrats b a and military y officers, war criminals fr arlierchapterofwhygov vernmentsfa ail.BothRoos seveltandTr rumanwereopposed preciselyaslaid outintheea stoftheCon ngress.Later manyoftho oseinvolvedwiththe and unawareof muchofthe subversion,aswasmos version such as Nixon an nd Dulles ros se to position ns of power, , as evidence ed by the fac ct that when n the first subv grou upofscientis ststoapplyf forimmigrationunderPa aperclipwas srejectedentirelybythe eStateDepar rtmentas activ veNazis,Dull lesandother rsthenprom mptlyrewrote etheirfilese expungingan nydamaginginformation. L LindaHunti na1985art ticleforthe UnionofAto omicScientis stsfoundtha atinover13 30Paperclip psubjects that the files for r every one of o them had d been altere ed, omitting their past Nazi N connecti ions that wo ould have udedthem.B By1955mor rethan760G Germanscientistshadbe eenadmitted dintotheUS SundertheP Paperclip exclu Oper ration.Trum manwasunaw warethathis sdirectforbi iddanceofth headmission nofNaziswa asbeingigno ored.This hasb beenconfirm medbysever ralsources,i includingSta ateDepartme entdocumen ntsandoffici ialsofthetim me.Clark Cliffo ord,specialc counsel toth he Truman atthetime,h a hasconfirme edthattheW WhiteHousewasunawa areofany

illegal smuggling program bring Nazis or war criminals into the US.[84] The examples below will show how outrageousandextensiveOperationPaperclipwasundertheguidanceofDulles. WernervonBraun: Themilitarygovernorconsideredthesubjecttoberegardedasasecuritythreat. ArthurRudolph: SubjectwasdirectorofMittlewerkfactoryattheDoraNordhausenconcentrationcamp inwhichover20,000workersdiedfrombeatings,hangingsandstarvation.Hewasan activeNazipartymemberfrom1931.Hismilitaryfilelistedhimas100%Nazi, dangeroustype,securitythreat,suggestinternment. KarlBlome, AllthreesubjectswereinvolvedwiththeNurembergmedicalcase.Blomewastriedin HermannBecker 57foreuthanasiaandmedicalexperimentsonconcentrationcampprisoners.Hewas Freysing,Siegfried foundinnocent,butjustbarely.BeckerFreysingwasevenconvictedinthemedicalcase Ruff: atNurenberg. HeinrichRupp: WasconvictedinthesavingandloansscandalsandreportedtobealinkintheOctober Surpriseconspiracy. There are far too many war criminals admitted to the US for a complete list. Rather this abbreviated list is intendedtoillustratethreepoints.One,thepresenceofthedamningmilitaryfileonvonBraun,apersonwho rosetoapositionofnationalprominenceandisconsideredthefatheroftheUSspaceprogramandrocketry wasimmunefromexposure. Two,theadmissionofconvictedwarcriminalsillustrateshowextensiveandoutrageousthealterationof the files in direct defiance of President Truman by Dulles and others were. JIOA Director, Bosquet Wev, dismissed the alterations by asserting that the governments concerns over picayune details such as Nazi records would result in the best interests of the United States being subjugated to the efforts expended in beatingadeadNazihorse.[95]EventodaytheexpulsionofwarcriminalscentersupontheminorNazifigures andnotonmajorwarcriminalsorthehighNaziofficials.Andfinallythealterationofthefilesestablishesthe connectionfirmlybetweentheNazisandtheCIA. Following in the aftermath of Watergate, Congress began a series of investigations of Nazi war criminals livingintheUS.CongresswomenElizabethHoltzmanwasoneofthoseleadingtheinvestigations.Amongsome ofthemorestartlingfactssheuncoveredwasthefactthatPaperclipdidnotendinthelate1940sasthepublic hadbeenledtobelieve;infactPapercliphadonlybeenterminatedayearortwobeforethe1974startofthe Holtzmaninvestigations.Anotherfactsheuncoveredwasthatpriorto1953theDisplacedPersonsActbarred Nazis; a changed in the law in that year even allowed convicted war criminals to immigrate. Holtzman proposed an amendment that closed that loophole; in addition she lobbied hard to establish the Office of SpecialInvestigations(theNazihunterswithintheJusticedepartment).[104] ThereisnobetterwaytosumuphowextensiveandsuccessfultheCIAwasinallowingNazistoimmigrate to the US than looking at the previously mentioned pensions that Germany was paying to former Nazis and where they reside today. Below is a list of countries and the estimated number of former Nazis receiving pensionsfromGermany.TheseestimatescomefromarguablythemostknowledgeableofallNazihunters,the Wiesenthal Center.The SSpensionsaretypicallyaround$560amonth,3timesthetotalreparationspaidto Holocaustvictims. NumberofNazi Country Pensioners[119] Argentina 128 Australia 601 Austria 1,115 Belgium 324 Brazil 196 Canada 1,882 Croatia 1,010 England 459 France 810 Italy 152 Romania 1,014 Slovenia 380 SouthAfrica 152 UnitedStates 3,377

ThereaderwillhavetoponderthatfinalfigurefortheUS,whichisalmosttwiceaslargeasthenextlargest figureinthetable,thatofCanada.SuchafigurecanleavenodoubtthattheCIAactivelyengagedinaprogram to subvert the immigration laws and the explicit declaration of President Truman that no Nazi was to be allowed to immigrate. The reader should also note that about half of all those Nazis receiving pensions are residingineithertheUSoracountryoftheoldBritishEmpire. UpuntilnowwehaveonlylookedattheuseoftheGermanscientistsinchemicalandbiologicalwarfare. Butin1949theworkatEdgewoodshiftedfocusandbeganlookingatpsychochemicals,beginningwithLSD,in anefforttofindtheperfecttruthserum.Thekeysourcesofinformationwerefromthosethathadworkedat I.G.Farben.Somewereimprisoned,buttheywerereleasedtemporarilytoworkfortheArmyChemicalCorps. ThiswastheverybirthofamuchlargerCIAoperationthatbecameknownasMKUltra.Theoriginaloperation was Bluebird, which then evolved first into Artichoke before becoming MKUltra. Unfortunately CIA Director RichardHelmsorderedtheCIArecordsofMKUltradestroyedin1973.Remainingrecordssuggesthundredsif not thousands of people were used as test subjects and involved the collaboration with several universities, mental hospitals, prisons and drug rehab centers.[106] The experiments were conducted without the test subjects knowledge and resulted in several deaths, including that of Frank Olsen. Others have reported continuingproblemsfrombeingtestsubjects.Othersattemptedsuicideandsomeweresuccessful.TheArmys andCIAsresponsewastocoveruptheproject.Buttheoperationevolvedbeyondjustthemilitaryintelligence community. The CIA enlisted help with MKUltra from a host of university collaborators, including the UniversitiesofDelaware,Marylandandahostofothers.[105] JustastheimmigrationofNazisandwarcriminalsintotheUSinvolvedtheuseofseveralprojectsofwhich Paperclipisthemostwidelyknown,suchisthecaseofMKUltra.Therewere149subprojectsunderMKUltra. TheusesofdrugsfortruthserumandformindcontrolwereconductedunderabewilderinglistofProjector Operations.Belowisashortsynopsisofsomeofthoseprojects. MKDELTA: ThiswasapparentlythefirstprojectestablishedbytheCIAinOctober,1952,forthe use of biochemicals in clandestine operations. It may never have been implemented operationally. MKULTRA: ThiswasasuccessorprojecttoMKDELTAestablishedinApril,1953,andterminating some time in the late 1960s probably after 1966. This program considered various meansofcontrollinghumanbehavior.Drugswereonlyoneaspectofthisactivity. MKNAOMI: This project began in the 1950s and was terminated at least with respect biological projects, in 1969. This may have been a successor to MKDELTA. Its purpose was to stockpileseverelyincapacitatingandlethalmaterials,andtodevelopgadgetryforthe disseminationofthesematerials. MKSEARCH: Thiswasapparentlyasuccessorprojectto MKULTRA, whichbeganin1965andwasterminatedin1973.Theobjectiveoftheprojectwasto developacapabilitytomanipulatehumanbehaviorinapredictablemannerthrough theuseofdrugs. MKCHICKWIT This was apparently a part of the MKSEARCH program. Its objective was to identify : newdrugdevelopmentsinEuropeandAsiaandtoobtaininformationandsamples. MKOFTEN: ThiswasalsoapparentlyapartoftheMKSEARCHproject.Itsobjectivewastotestthe behavioralandtoxicologicaleffectsofcertaindrugsonanimalsandhumans.[107] STARGATE: Investigated the use of ESP, paranormal, remote viewing military uses of telekinesis typeresearchthatwasdonefromanuncertainstartdateupuntil1984.[116] Another aspect of MKUltra that is not widely known is that it extended beyond the borders of the US. Experiments were also conducted in Canada by Dr. Ewen Cameron at McGill Universitys Allain Memorial Institute. At least the Canadian government has compensated the test subjects with almost $7 million dollars.[108] Another operation under MKUltra was Operation Midnight Climax. This operation was run by the contract agent George Hunter White, a narcotics officer. White hired drug addicted prostitutes to lure customerstoaCIAfinancedbordello,thecustomerswerethengivendrinkscontainingLSD.Whitewouldthen observethecustomersthroughatwowaymirror.[109]Thefollowingquotewillsufficeasthefinalexampleof theethicalnatureoftheseexperiments. OneparticularlyodiousprojectwasrunbyDrHarrisIsabel,DirectorofthePublicServiceHospitalin Lexington, Kentuckya facility specializing in drug abuse. Asked by the CIA to discover a range of synthetic drugs, Isabel began experimenting on captive black inmates. Anxious to please his CIA

bosses, he daily fed his guinea pigs large doses of LSD, mescaline, marijuana, scopolamine and other substances. In exchange for participating in the experiments, the inmates received injections of high quality morphine, sometimes getting shotup three times a day, depending on their cooperation. BroughtbeforetheSenatesubcommitteesin1975,Isabelsawnocontradictioninprovidingharddrugs totheveryaddictshewasemployedtocure.[110] ThereisoneadditionalareainwhichNaziscientistswereusedinexperimentationonhumantestsubjectsby theCIAandthemilitaryandthatisintheareaofradiation.Fortunatelythereisfairlygooddocumentationasto the extent of these unethical experiments. On January 15, 1994 President Clinton relaxed some of the draconiansecuritymeasuresthatprevailedunderReaganandBushbyestablishingtheAdvisoryCommitteeon HumanRadiationExperiments(ACHRE)toinvestigateunethicalexperimentationinvolvingradiation.Manyof theresultsofthisinvestigationhavebeenpublishedandtheyareavailableonthewebattheDepartmentof Energyssite.Onceagaintheinvestigationsshowcollaborationwithahostofuniversitiesandresearchcenters. Theresultsalsoshowaselectionoftestsubjectsfromthoseleastabletodefendthemselves:thefirstinjection of plutonium was given to a black construction worker, the use of Iodine131 and its relationship to cold weather stress was tested on Eskimos, the feeding of radioactive laced cereals to mentally retarded children.[111] IthasalreadybeenestablishedhowtheNaziCIAconnectionaffectedtherelationshipbetweentheUSand theUSSRandhowtheCIAusedNazisandtheircollaboratorstocontroltheItalianelection.Whatfollowsisa brief and none too exhaustive look at how the NaziCIA connection affected the relationship between the US and other nations of the world following WWII, in order to see the pattern that emerges. There is no better placetostartthantheCIAinterventioninIranin1953.KermitRoosevelt,grandsonofTeddyRooseveltwasthe CIAs agent in Iran that installed the Shah and overthrew Mossadegh. The plans issued by Mossadegh for nationalizingtheoilfieldsprecipitatedhisremoval.ThereadershouldunderstandthatMossadeghhadbeen electedtooffice. OncetheShahwasinpower,hewaspersuadedtonameFazlollahZalediasPrimeMinister.DuringWWII ZalediwasimprisonedforcollaboratingwiththeNazis.Oncefirmlyincontrol,Irancompletedacontractwith aninternationalconsortiumofoilcompanies.OnememberofthatconsortiumwasStandardOilofNewJersey, aclientofSullivanandCromwell.JackAndersonreportedthattheRockefellerfamilyhadhelpedarrangethe coup that brought the Shah to power. Anderson had listed a number of ways the Shah demonstrated his appreciation.[114]TheCIAalsoprovidedtrainingforthedreadedSavakorsecretpoliceofIran.Unfortunately there is little documentation of the CIAs intervention here; all the CIAs records concerning the Iranian interventionhavebeendestroyed.TheonlyothersourceisKermitRooseveltsbookandthebookpublishedby theIraniansaftertheyseizedtheUSembassyandalongwithitthirtyyearsorsoofrecords. The result over the next two decades was the Shah enriched himself at the expense of his fellow countrymen using the brutal Savak to maintain control. Of course he remained a loyal ally of the US, and corporateAmerica,suchasStandardOilofNewJersey,gotpricingbreaks.Thereadershouldreferbacktothe chapteronthe60sforthedetailsandimportanceoftheShahintheoilcrisisofthe1970s. Thereadercannowseethepattern;firstthelegallyelectedleaderproposesreformsormaybeleaningto theleftinamovethatthreatenscorporateAmerica.Heisthenexpelledandreplacedwithahardrightleader favorable to US interests. The new leader enriches himself at the expense of his fellow countrymen and becomes an ally of the US. He maintains power through brutality and outright murder with a police force trainedbytheUS.ThisthenisthemodelthattheUShasfollowedsinceWWII,oftentimesinthe1950sexNazis were employed as agents. The US press should be considered a coconspirator in that they cover up the bloodshedbyignoringthekilling,astheydidinNicaragua.Itisamodelthathasbeenrepeatedtimeaftertime inallcornersoftheglobefromtheendofWWIItothepresenttime.NoamChomskytermstheresultingstate assubfascist.[115]Theresultingbrutalityandlootingofthecountrybyagroupofelitistsproceedsasitdidin GermanyundertheNazis. The next example is one that didnt go as planned for the CIA. The operation began as early as 1951 in EgyptwithKermitRooseveltopeningsecretnegotiationswithColonelGamalNasserasKingFarouksregime was about to crumble. The young Roosevelt reported back that they had found agreement in several broad areas.NasseraskedforUShelpinbuildingupEgyptsintelligenceandsecurityforces.DullesturnedtoGehlen forhelpinprovidingthesecuritytrainingfortheEgyptians.Andin1953formerSSofficerOttoSkorzenyand aboutonehundredotherGermansadvisorsweresenttoEgypt.AmongthesesecurityadvisorswasHermann Lauterbacher, a former SS man and deputy leader of the Hitler Youth and Franz Buensch, a propagandist of

GoebbelsandveteranoftheSSJewishAffairsoffice.[117]Oncetheoperationwasunderway,MilesCopeland wastheCIAagentincharge. The operation soon expanded to another area, the building of rockets. The actual construction of rocket facilities didnt begin until 1959, but by 1961 Israeli Intelligence believed that the Egyptians had as many as onehundredgroundtogroundmissiles.ThismissileoperationwasheadedbyAloisBrunner,atopassistantto EichmannsFinalSolution.Evidencesuggeststherewereplanstobuildatotalof900missilesandadditional evidencethatsomeweretobefittedforchemicalorbiologicalweapons.PresidentKennedysresponsetothe Israelisin1962wastoequipIsraelwithgroundtoairmissiles.[118] OfcoursealloftheCIAplottinginEgyptturnedtonaughtwhenNasserchosetoalignEgyptwiththeSoviet Union. This realignment of Egypt with the Soviet Union was due to inept State Department policies and the doubledealingbytheNaziwarcriminals.ThefollowingchapterwillexaminehowtheNazisplayedbothsides oftheColdWarlikeacheapfiddle.OfcoursethereallosersonceagainweretheEgyptianpeopleandtheblame canbeplacedsquarelyonthefailureoftheUSdenazificationprogram.FortunatelyNassersgovernmenthada brieflifetimeand,soonafteritsdemise,EgyptrejoinedtheWestandbootedtheRussiansout. In1953theCIAalsointervenedinGuatemala,andregardedtheactionasasuccess.Forwhatreasonsthey regarded the operation as success can be only guessed at, since what followed was a bloody civil war that lasted36years.Onceagainthisinterventionfitsthemodelperfectly.ThelegallyelectedgovernmentofArbenz wasreformminded.Thecenterpieceofhisreformswaslandreform.Inanoverwhelminglyruralnation,only 2.2%ofthepopulationowned70%oftheland.Priortothe1944revolutionandoustingofthedictatorshipof Ubico,thearmywasusedtoropefarmlaborstogetherfordeliverytolowlandfarmswheretheywerekeptas debt slaves. The expropriation of large uncultivated tracts of land to landless peasants, improvement in the rightsofunionsandothersocialreformswerehurtingthebottomlineofUnitedFruit.Arbenzevenconstructed aportontheAtlantictocompeteagainsttheportcontrolledbyUnitedFruit;likewiseapublichydroelectric plantwasconstructedforthesamereasons. The position of United Fruit inside Guatemala was essentially one of a country within a country. United Fruit owned the countrys telephone and telegraph systems, administered the countrys only Atlantic port, monopolizedbananaexportsandasubsidiaryownedtherailsystem.IntheUSUnitedFruithadclosetiesto the Dulles brothers, various State Department officials, Congressmen and the US Ambassador to the UN. The formerCIADirector,WalterBedellSmithwasseekinganexecutivepositionwithUnitedFruitatthesametime hewasplanningtheGuatemalacoup.HelaterwasnamedtotheboardofdirectorsofUnitedFruit. The first plan to oust Arbenz was given by Truman as a response to Guatemala receiving arms from Czechoslovakiaandtheimpliedcommunismthreat,butwascanceled.AftertheelectionofEisenhowertheplan wasputintoeffect.TheGuatemalacoupalsoprovidesandidealexampleofhowtheCIAmanipulatesAmerican opinion.AfterfirstbeingtriedinGuatemala,thistechniquehasbeenemployedthroughoutSouthAmerica.It involves the CIA planting an article in the foreign press; the article is then picked up by the news wires and newspapers in other countries. Besides the obvious multiplier effect upon the potential audience, it has the appearanceofanindependentworldopinion.IncidentallyitwasthesametacticthatBushtriedtouseagainst Clintoninthe1992election. The immediate aftereffects of the coup were draconian; within four months 72,000 was labeled as communist,manyofwhomweretorturedandmurdered.ItisknownthattheUSAmbassador,JohnPeurifoy, hadalonglistofnamesofleadersthatthesuccessorgovernmentwastoassassinate.[126]Agrarianreformwas stopped and the land already expropriated was given back to United Fruit. Union leaders turned up dead. Three quarters of the population was disenfranchised by barring illiterates from the polls and all political parties, unions and peasant organizations were outlawed. For those Americans that were outraged at the seizing of the American Embassy in Tehran, they should consider John Foster Dulles actions. Dulles was concerned that some communists might escape by taking refuge in foreign embassies. He insisted that Guatemala arrest those that had taken such refuge and that criminal charges be brought against them; he argued that communists should be automatically denied the right of asylum. On these points Dulles lost, perhapsbecausetheplottersofthecouphadsoughtrefugeinembassiesoneormoretimesinthepast.[121] The blood bath and carnage that followed for the next 36 years can only be described as horrific. A genocidal war was carried on against the native Indians. Murders, kidnappings and disappearances became widespread and everyday occurrences as right wing death squads roamed the countryside. The report on Guatemala as a first step to reconciliation states that the army is blamed for over 200,000 deaths and disappearances.Belowaresomeextractsfromthatreport:

Ofthe42,000deathsinvestigatedinthereport,thearmywasfoundtoberesponsiblefor93percent. Three percent were the work of the leftist Guatemalan National Revolutionary Unity, and 4 percent were unresolved. The report found that 29,000 of the investigated deaths involved summary executions. Most of the victims were civilians and Mayan Indians, the longdelayed report said. It was originally scheduled to be released last year, but the commission wasnt able to get through all its work and releasethereportuntilThursday. ThereportalsonotedthatthegovernmentoftheUnitedStates,throughvariousagenciesincludingthe CIA,provideddirectandindirectsupportforsomestateoperations. It was clearly genocide and a planned strategy against the civilian population, said Christian Tomuschat,aGermancitizenwhoheadsthethreemembercommission.Governmentforces...blindly pursued the anticommunist fight, without respecting any legal principle or even the most elemental ethicalorreligiousvalues. In 626 massacres, the report found that government forces completely exterminated Mayan communities,destroyedtheirdwellings,livestock andcrops.The guerrillaswereblamedfor 32 such massacres,thereportsaid.[122] Guatemalaalsoprovidesuswiththefirstexampleoftherightwingdeathsquadsthathavebecamesomucha part of South American politics. Those death squads and the dictators that employ them are products of the CIAMilitary intelligence system of the US. They lead directly to the School of the Americas at Fort Benning, Georgia.RecentlytheseventrainingmanualshavebeenreleasedundertheFreedomofInformationAct.The manualsdetailtheuseoftorture,assassinationandotherpracticesthatarenotacceptableinademocracy.The followingisasmallexcerptofwhatcanbefoundinsidethemanuals. Throughoutthemanuals,refugeesanddisplacedpersonsarehighlightedaspossiblesubversiveswho should be monitored. Universities are described as breeding grounds for terrorists, and priests and nuns are identified as having been involved in terrorist operations. The militaries are advised to infiltrate youth groups, student groups, labor unions, political parties and community organizations. Evenelectoralactivityissuspect:Theinsurgentscanresorttosubvertingthegovernmentbymeansof elections in which the insurgents cause the replacement of an unfriendly government official to one favorable to their cause; insurgent activity can include funding campaigns and participating in politicalracesascandidates.[123] The reader can find more information and updates on the School of the Americas on line at the SOA Watch site.[124] This chapter cannot provide a detailed or graphic enough description to cover the brutality in Guatemalaandwillleavethereadertohisowndevicestoexplorethat.Howeverinthe1980sanotheraspectof these CIA interventions emerged: the association of the CIA and right wing death squads and army leaders involvedinthedrugtrade.Thefollowingquoteillustratesthepoint. Thekillingspeakedintheearly1980s,thoughmassacrescontinuedtooccur.By1990,however,the militarywasnolongerjustkillingforpolitics.Itbegankillingforgreedtoo.Ascramblefordrugprofits within the Guatemalan military was underway. Guatemala, like Mexico, with which it shares its northern border, was never a major drug transshipment route before the early 1990s, when Colombians established transit operations across the entire northern isthmus. First the Medellin and thentheCalicartelcametoGuatemalabecauseitisnearMexico,whichisanobviousentrancepointto theUS,andbecausetheMexicanshavealongestablishedmafia,saidoneColombiandrugenforcement official.ItisalsoabettertransitandstoragecountrythanElSalvadorbecauseitoffersmorestability andwaseasiertocontrol. Guatemalasstabilityandcontrolwasachievedthroughcrueltythatwasunmatchedanywhereinthe region.GuatemalascounterinsurgencycampaignwasfarmoreseverethanElSalvadors,forinstance. Theideawastomaketheinnocentpayfortheguilty,aformerGuatemalanarmysergeantfromQuiche oncetoldme.ThedifferencewasthatinElSalvador,militaryintelligenceunitsmighttargetahandfulof young men to kill to ensure that they killed at least one guerrilla, while in Guatemala, military intelligenceunitsfrequentlykilledinnocentpeoplelikechildrenorseniorstopunishanentirevillage forsupportingtheguerrillas.[125]

Chile was another country in which the CIA overthrew the legally elected and popular Salvador Allende, in 1973ina coup detat,althoughtheNixongovernmentactivelytriedtodestabilizeAllendesgovernmentsince the1970election.OnceagaincorporateAmericawasatthecenterofitwithITTactingastheconduittofunnel CIA money and arms to the opposition. Other American corporations tied closely with the coup and the resultingdictatorshipwereAnacondaandKennecott,bothcoppermininginterests,andPepsi. General Augusto Pinochet headed the brutal and repressive regime after the coup. Once again the right wing death squads and the disappearances became commonplace throughout the country as did summary executionsandtorture.Anestimated50,000diedatthehandsofPinochet. ButtherightwingersandtheCIAhailPinochetsruleofChileasaneconomicmiracle,for,onceinpower,he installedtheboysfromChicago,agroupofChileanseducatedineconomicsattheUniversityofChicago.Itmay havebeenaneconomicmiraclefortheAmericancorporations,butitcertainlywasntfortheaverageChilean worker,astheBoysfromChicagopromptlysetaboutdismantlingallsocialprogramsanddestroyingunions. Thestatisticsofthissocalledeconomicmiracleareindeedbleak;theGNPpercapitafellfrom1972to1982by 6.4percent.[128]PresentlyPinochetfaceschargesofmurderinSpainifEnglandwillextraditehim.Butonce again,weseethemodelrepeated:alegallyelectedreformmindedgovernmentisoverthrowntobereplacedby a brutal right wing dictator and corporate America gets rich at the expense of the native population. In just GuatemalaandChilethebodycountfromtheCIAandtheirpuppetregimestotaloveraquartermillion;one can add to that another 200,000 in East Timor, and add another half to one million in Indonesia. Now that bringsthebodycountasaresultofCIAinterventiontoonemillionto1.5millioninjustfourcountries.Does thereaderhaveanymorequestionsoverthefascistnatureofourforeignpolicyasexecutedbytheCIA? AndthebodycountgivensofardoesntincludetheonesfromKoreaorVietnam,wheretheCIAalonein ProjectPhoenixassassinatedbetween20,000and40,000people.Butthescopeofthischapterislimitedand thewriterwillleaveittothereadertolookatothercountrieswheretheCIAhasbecomeinvolvedincovert operations.Thereaderthatstartstoactivelyinvestigatethisarewillsoonfinditeasiertolistthecountriesof theworldinwhichtheCIAhasnttakenaction.LikewisethereaderwillfindthatincountriesinwhichtheCIA becameinvolveditfitsthemodelasstatedpreviously. Unfortunately our allies were not spared for the meddling of the CIA in their domestic affairs. The CIA meddlingintheItalianelectionshasalreadybeencovered,butin1975theCIAoverturnedthelegallyelected EdwardWhitlam.Whitlamwaselectedin1972andsoonwithdrewAustraliantroopsfromVietnamandended theAussiedraft,recognizedthegovernmentofNorthVietnamandcondemnedtheNixongovernment.Inother wordshehitthegroundrunningandwasofftoagoodstart.WhitlamwasatargetofJamesAngletonwhowas concernedoversecurityandintelligencerelationshipswithAustralia.OnNovember11theGovernorGeneral JohnKerrdismissedWhitlamasPrimeMinisteranddissolvedbothhousesofparliamentattheurgingofthe CIA.ItwasthefirsttimethismaneuverhadeverbeenusedbytheGovernorGeneraltoremoveafederalprime minister,ithasbeenusedonlyonceinthehistoryofAustraliaatthestatelevel. Japan is another country in which the CIA meddled with domestic politics. The CIA spent millions to support candidates from the conservative, Liberal Democratic Party through the 50s and the 60s. The effort wastopropJapanupasabulkheadagainstcommunistaggressioninAsia.Asasidelinetothecovertfinancial support,theCIAusedtheoperationtogatherinformationonpartypolitics,tradepositionsandtreatytalks.In manyoftherecenttradetalkstheUSnegotiatorknewtheminimumacceptabletermstotheJapanesebefore beginning the talks.[132] In addition to the support of the Liberal Democratic Party, the CIA sabotaged and infiltratedtheSocialistPartyinanefforttounderminetheirsupport.Apparentlythecovertfinancialsupport endedinthe1970sasfrictionovertradebuiltup.ItwasalreadyalludedtothattheCIAwasinvolvedinthe manipulationofdomesticGermanpoliticsanditisalsoknownthattheCIAwasinvolvedinFrenchpoliticsand labor movement, in the latter in an effort to undermine the influence of organized labor in much the same mannerastheunionsweredismantledinCentralandSouthAmerica. One outgrowth of the CIAs global intervention has been their involvement with the world drug trade. Thanks to The San Jose Mercury investigative reporter, Gary Webb, this issue has been placed before the American people. Webbs article entitled Dark Alliance detailed the CIAs involvement with the drug trade in theinnercityofLosAngeles.CIAassetsinothermajorpaperssoonattackedthearticleinanefforttodiscredit itanddistancetheCIAslongrumoredinvolvementwithdrugs.ThehistoryoftheCIAsinvolvementwithdope dealinggoesbacktoatleasttheVietnameraandtheherointrade.Itisthiswritersopinionthatthehistory goesbackevenfurtherintothe1950sandtheCIAsinvolvementinIran.Atleastoneotherwritertracesthe

CIAdrugtradebacktothe1940swhenColonelPaulHellwelloftheOSSbroughtheroinfromBurmaandsoldit inUSghettos.[133] Although the CIAs media assets were successful in forcing the Mercury to retract the article and to fire Webb,theyhavenotsucceededindisprovingthecharges.ForonereasonthereisfarmorethanjusttheDark AlliancearticleindetailingtheconnectionbetweentheCIAanddrugs.Tofullydiscreditthearticletheywould needtodiscreditCongressionaltestimonyaswell.ThefirstinklingoftheCIAdrugconnectioncameabouton March18,1982whentheCIAsInspectorGeneral,FredHitzadmittedbeforeaCongressionalcommitteethat theCIAmaintainedrelationshipswithcompaniesandindividualsthattheCIAknewtobeinvolvedinthedrug trade. Even more damaging, he informed the Congressional committee that the CIA had requested and had receivedapprovalfromReagansJusticeDepartmentclearancenottoreportanyknowledgeofdrugdealingby CIAassets.[134] TheentirecoverupoftheIranContracocainescandalhasfinallybeenfullyandundeniablyestablishedby the release of the Volume Two of CIA Inspector Generals Drug Report on October 8, 1998. The release was timed in such a manner to effectively muzzle Congressional and public outrage. Just one hour before the releaseofthisreport,theCongresshadvotedtoholdimpeachmentproceedingsagainstPresidentClinton.The reporthadbeenavailablesincespringandisessentiallyaconfessionbyCIAthatitengagedinaconspiracyto protect known narcotics traffickers throughout the Contra war years. The New York Times, in an apparent confirmation of the Dark Alliance article, picked a paragraph from the report that acknowledged that the ContraleadersinCaliforniaspecificallyplannedtousedrugmoneyfortheContras. The LA Times,oneofthemostviciouscriticsoftheDarkAlliancestory,hasfailedtoprintasinglelineover thenewlyreleasedreport.ThereportconfirmstheconspiratorialnegotiationsbetweentheJusticeDepartment andtheCIAbyfirsthavingagents,assetsandcontractorsremovedfromtheirclassificationasemployeesina move to remove the responsibly of reporting drug dealing to Congress or anyone else, thus confirming the earliermentionedtestimonyofHitz.Inanotherportionofthereport,amemorandumwrittenbyDCIRobert Gatessettingdownanononsensepolicyagainstdealingwithdrugtraffickerswasdescribed.Theproblemwith thememorandumwas,itwasntdistributedfor15years.[135] OnefinalnoteontheCIA,withthedemiseoftheformerUSSR,whatrolewilltheCIAplayinthefuture?One role that the CIA has engaged in the past and is likely to emerge is that of economic espionage. It was previously mentionedinthatroleintheJapanesetradetalks;itwas alsoafactorintheGATTtalks.TheCIA contendsthattheFrenchhavemolesinsuchcorporationsasBoeingandhavelaunchedacounterattack.But this economic espionage is a source of tension with our allies. France has expelled two CIA agents for an attempt to bribe officials of the state telephone company for information that would allow them to tap the phonelines.ItsalsohasbecameanissuewiththeJapanese.IneffectallowingtheCIAforeconomicespionageis justanothersteptowardsfascismandcorporaterule. Inasummaryofthischapterthereadershouldrememberonething.AttheendoftheSecondWorldWar theUShadthechancetograbthebrassringoflibertyandpresentittotheworldasagift.Instead,ledbya small cabal of Wall Street sharks and rich industrialists, we were plunged into a cesspool of repression and becamethespawninggroundsforthefourthReich.Fromearlierchaptersitwasshownthatfascismwasthe end product of a capitalistic society that government failures are started by midlevel officials And finally for anyrevolutiontobesuccessful,itrequiresthecontroloverthe3Ms:themilitary,themediaandmoney.This chapterhasestablishedtherelationshipbetweentheCIAandmoneyintheformofarevolvingdoorbetween WallStreetandtheCIAandthemanipulationofthefreepressbytheCIAaswellasitsclosetiestoNaziwar criminals. In short the CIA is a danger to the future liberty of not only US citizens, but to the world. Its an agencythathasserveditspurposesandneedstobebrokenintoathousandpiecesandscatteredtothewinds, asJFKthreatentodoafterhisreelection. A final note before closing: Vermont Democrat Patrick Leahy wants to expand the role of the Justice Departments Special Investigations to pursue not only Nazi war criminals, but to include human right offendersorwarcriminalsfromothercountriessuchasHaiti,Somalia,andtheformerYugoslavia.Hestated that:IjustdonotwanttheUnitedStatestobeseenasasafehavenforthesewarcriminals.[137]Andgiven therecordoftheCIAconcerningtheNazisthereisadefiniteneed.

Notes
[1] The Old Boys: The American Elite and the Origins of the CIA, Burton Hersh, Macmillan Publishing, 1992,p87.

[2] [3] [4] [5] [6] [7] [8] [9]

[10] [11] [12] [13] [14] [15] [16] [17] [18] [19] [20] [21] [22] [23] [24] [25] [26] [27] [28] [29] [30] [31] [32] [33] [34] [35] [36] [37] [38] [39] [40] [41] [42] [43] [44] [45] [46] [47] [48]

TheOldBoys,p378379. TheBelarusSecret,JohnLoftus,AlfredKnopf,1982,p82. TheSecretWarAgainsttheJews,JohnLoftus,MarkAarons,StMartinsGriffin,1994,p221. http://parascope.com/articles/1196/nazis.htm TheSecretWarAgainsttheJews,JohnLoftus,MarkAarons,StMartinsGriffin,1994. TheSecretWar,p2021. TheOldBoys,p430431. Washington,DC:Akeydocumentinthehistoryofcovertwarfare,theCIAsowninternalinvestigation intotheApril1961debacleattheBayofPigsinCuba,wasmadepublictoday.Thetopsecret150page report, officially known as The Inspector Generals Survey of the Cuban Operation, castigates the Agency for misinforming Kennedy administration officials, bad planning, inadequate intelligence, treating rebel leaders as puppets, and conducting an overt military operation beyond Agency responsibilityaswellasAgencycapability.Thisquotetakenfromawebsitecontainingthereportat http://www.seas.gwu.edu/nsarchive/news/19980222.htm http://www.oise.utoronto.ca/~gpieters/texaco.html TheSecretWar,p56. TheSplendidBlondBeast:Money,LawandGenocideintheTwentiethCentury,ChristopherSimpson, GrovePress,1993,p34. TheSecretWar,p358361. TheSpledidBlondeBeast,p103. TheSecretWar,p256,p301. TheSplendidBlondeBeast,p5051. TheSplendidBlondeBeast,p64. http://www.bea.gov TheSplendidBlondeBeast,p68. TheSplendidBlondeBeast,p169272. TheSecretWar,p56. TheSecretWar,p6064. TheSecretWar,p7376. TheSplendidBlondeBeast,p205. TheSplendidBlondeBeast,p218. TheSecretWar,p79. TheSecretWar,p84. UnholyTrinity,MarkAarons&JohnLoftus,StMartinsGriffin,1991. UnholyTrinity,p296. UnholyTrinity,p234. TheSecretWar,p100101. http://www.forbes.com TheSecretWar,p101. TheSecretWar,p110. http://www.jewishsf.com/bk980814/usbill.htm http://remembering.org/ideas/pensions.html http://secretary.state.org/www/briefings/statements/970812a.html USMovestoDeportIndianaManforHelpingNazis,MichaelSniffer,APwireOctober29,1998. 5USBanksareNamedinReportonNaziLootingofAssetsofJewsinFrance,APwire,February3,1999. http://newsweek.washingtonpost.com/nwsrv/issue/24_98b/printed/int/eur/ovbz0324_2.htm TheSecretWar,p165167. TheCoorsConnection,RussBellant,SouthEndPress,1991,p31. OldNazis,theNewRightandtheRepublicanParty,RussBellant,SouthEndPress,1991,p56. Wanted:TheSearchforNazisinAmerica,HowardBlum,NewYorkTimesBookCo,1977,p117121. TheWarLordsofWashington,BruceCatton,Harcourt,BraceandCo,1948,p244. TheSecretWar,p244245. TheWarLords,p286. Blowback,ChristopherSimpson,Weidenfeld&Nicolson,1988,p47.

[49] [50] [51] [52] [53] [54] [55] [56] [57] [58] [59] [60] [61] [62] [63] [64] [65] [66] [67] [68] [69] [70] [71] [72] [73] [74] [75] [76] [77] [78] [79] [80] [81] [82] [83] [84] [85] [86] [87] [88] [89] [90] [91] [92] [93] [94] [95] [96] [97] [98] [99] [100] [101] [102]

Blowback,p9093. Blowback,p7. Blowback,p115. Blowback,p138142. http://www.codoh.com/newsdesk/971107.HTML http://www.consortiumnews.com/consor32.html TheBelarusSecret,p71. TheBelarusSecret,p88. TheBelarusSecret,p2427. Wanted:TheSearchforNazis,p1217. UnholyTrinity,p271 Blowback,p232235. TheBelarusSecret,p136. TheBelarusSecret,p139141. Blowback,p96101. Blowback,p112115. Blowback,p125128. Blowback,p138144. ABCNEWS.COM,VaticanLinkedtoNaziGold Newsweek.COM,DirtyBusiness Blowback,p228. http://www.jfkconnections.com/cia.htm Blowback,p156157. TheBelarusSecret,p141. ThePuzzlePalace,JamesBamford,PenguinBooks,1982,p119. http://site03415.primehost.com/articles/0997/ciamedia.htm Secrets:TheCIAWaratHome,AngusMackenzie,UniversityofCaliforniaPress,1997,p6672. Secrets,p92102. Secrets,p147149. Secrets,p157158. Blowback,p202203. Blowback,p112123. Blowback,p210. Blowback,p210215. Secrets,p83. TheBelarusSecret,p82. http://www.thegrid.net/clear/cia.htm SecretAgendas,LindaHunt,St.MartinsPress,1991,p125128. SecretAgenda,p130133. SecretAgenda,p139142. SecretAgenda,p193. SecretAgenda,p171174. SecretAgenda,p175177. SecretAgenda,p178179. SecretAgenda,p179180. SecretAgenda,p184. SecretAgenda,p3. SecretAgenda,p910. SecretAgenda,p25. SecretAgenda,p33. SecretAgenda,p3639. SecretAgenda,p4151. ThePuzzlePalace,p308309. PapersSuggestUSIgnoredEarlyReportsofNaziKillings,TheSundayOregonian,August1,1999.

[103] [104] [105] [106] [107] [108] [109] [110] [111] [112]

[113] [114] [115] [116] [117] [118] [119] [120] [121] [122] [123] [124] [125] [126] [127] [128] [129] [130] [131] [132] [133] [134] [135] [136] [137] [138] [139] [140] [141]

ThePuzzlePalace,p375. SecretAgenda,p230231. SecretAgenda,p162174. http://www.cs.virginia.edu/~alb/misc/mindControlDenial.html http://www.mk.net/~stratus/mk1977.htm http://www.netti.fi/~makako/mind/mkultra.txt http://www.historyhouse.com/stories/lsd.htm http://www.pufori.org/articles/mk_ultra.htm http://tis.eh.doe.gov/ohre/roadmap/achre/report.html Thereadershouldbeawarethatthroughoutthe1950seventhenameNationalSecurityAgencywas classified as top secret. The reader should also be aware that the NSA is the largest of the US intelligenceagenciesandismostlyexemptfromdomesticspyingandfromtheFreedomofInformation Act. Even today its founding document is still a closely guarded secret. Its main mission is the interceptionofallformsofelectroniccommunication,bothdomesticandforeign.Ifthereaderwishes tolookcloserattheNSA,agoodbeginningwouldbeThePuzzlePalace. TheSecretWar,p155157. Killing Hope: US Military and CIA Intervention Since WWII, William Blum, Common Courage Press, 1995,p6472. TheWashingtonConnectionandThirdWorldFascism,NoamChomsky,SouthEndPress,1979. http://www.mk.net/~mcf/ckln01.htm Blowback,p250251. SecretWar,p257258. http://www.wiesenthal.com/response/outrage.html http://webusers.anetstl.com/~civil/docsmilitarycomplexeisenhower1961.htm KillingHope,p7283. http://www.globalexchange.org/campaigns/guatemala/1999/anzueto0226.html http://www.igc.apc.org/lawg/soafull.html http://www.soaw.org/ http://fhrg.org/trafic.htm http://www.consortiumnews.com/archive/story37.html http://www.worldmedia.com/caq/articles/gladio.html http://www.lakota.clara.net/myths/economy.html FriendlyFascism,BertramGross,SouthEndPress,1980. TradingwiththeEnemy,CharlesHigham,Barnes&Noble,1983,p162166. FactsandFascism,p262. http://forums.nytimes.com/library/national/ciainvismain.html http://www.ionet.net/~everett/CIADRUGS.html http://www.allnatural.com/whiteout.html http://www.copvcia.com/volii.htm http://www.thegrid.net/clear/cia.htm#lsd BostonGlobe,LeahyWantsUSAntiNaziUnittoEyeOtherAllegedWarCriminals,SteveFainaru,July 17,1999. Spooks,JimHougan,WilliamMorrow,1978,p424430. TheWarfareState,FredCook,Collier,1962,p7677. TheWarfaeState,p110. TheWarfareState,p124.

CHAPTER 9: THOSE DAMN HIPPIES ARE STILL TROUBLEHOW THE 60S STILL AFFECTS US
FUNNY THING HAPPENED on Americas journey into the 21st Century to greater freedom and prosperityforall,acolossaltrainwreckotherwiseknownastheelectionofRonaldReagan.Unlikethe 60sbeingusheredinbyayoungvibrantanddynamicPresidentpromotingequalityforall;the80swas usheredinbyanoldPresident,pronetotakingnaps,promotingtrickledowneconomics(feelfreetoreadthat as piss on me economics) caring only for the rich.[1] No wonder the decade of the 80s became called the decadeofgreed.JustastheagedifferenceofthetwoPresidentswasinsharpcontrast,sowerethepoliciesof each,aswellasthetimes.Onewasaprogressive,believingthatAmericacouldprovideforallofitscitizens;the otherdidntgiveadamnfortheunfortunateandchosetoimplementregressivepolicies.Onechosetouniteall Americans; the other promoted class warfare. One promoted civil rights for all; the other tried to dismantle civilrights. Notonlywerethetwodecadesusheredinbymajordifferencesinpolicy,thegeneraloutlookofAmericans hadchangedgreatly.Asanationweenteredthe60swithacandoattitude,unlikethe80swhenwewerea nationofselfdoubtingThomases,fullofdoubtandguilt.Americansenteredthedecadeofthe60sfullofhope forabetterfuture,twocarsineverygarage,unlikethe80swheremanysawonlyamoredismalfuturewith manygivinguphopeofeverowningtheirownhome.Onesawthegreatesttechnologicalachievementofman, withAmericanswalkingonthesurfaceofthemoon;theothersawthespaceprogramgoingupinsmokewith theexplosionoftheChallenger. Onewasadecadeofrebirthandgrowth;theotherwasadecadeofdeclineanddecay.Onesawthehighest standardoflivingachievedfortheAmericanworkers;theothersawthestandardoflivingfallingforthevast majorityofworkers.The60ssawthebirthofthegrassrootenvironmentalmovement;the80sgavebirthto the extremist group, Wise Use, led and backed by multinational corporations hell bent on destroying and plunderingtheenvironment.Onesawtheinvestmentinandbuildingofnewplantsandequipment;theother defined investing as leveraged buyouts financed by junk bonds that built nothing. One saw us building the infrastructure like the interstate highway system; the other saw reports of bridges that were unsafe and the decayoftheinfrastructure. One saw the baby boomers coming of age, a generation of activists in large part; the other saw the generation X coming of age, a generation of pathetic whiners in large part.[2] One is a decade mistakenly thoughtofasaviolentdecade,the60s,wheninactualfactthe80swereafarmoreviolentdecade.Theseare just a few of the stark contrasts between the two decades. But even more importantly one was the bold implementationofnewpoliciesnamedtheNewFrontierandtheGreatSociety;theotherwasmerelyareaction totheformer,tooashamedofitselftoevengiveitselfaname. Thefirstthingtounderstandaboutthe80swasitwasadecadeofreactiontothe60s.Justasreactionto theCivilWareracametodominatethecountryfordecadesafterwards,thesixtieshavecometodominatethe countrywellintothe1990s.LiketheCivilWar,thedecadeofthe60ssawthenationdividedontheissuesof theday.AtnotimesincetheCivilWarhasthenationbeenasdividedasitwasduringthe1960s,nordoesthis reactiontothe60sappeartobeabatinganytimesoon. Perhaps one of the reasons that the Civil war and the 60s have both exerted so much influence in the following decades was there were no clear victories or closure. Unlike the New Deal era in which VJ Day providedthevictoryandtheclosure,therewasnoclosureandnovictoryfollowingtheCivilWar.Yes,thewar wasoverandtheslaveswerefree,buttowhatextentdidtheirfreedomextend?Closuretothatissueonlycame withtheshamefuldecisionofseparatebutequalin1896,thirtyyearslater.Likewisetherehasbeennoclear victoryfromthe1960s;civilrightsandthefeministissuesarebothstillinastateoffluxasisthemeaningand lessonsfromVietnam. Itistheopinionofthiswriterthatclosurewillonlycomewiththepassageofsomelandmarklegislationor court decision. Unless we can confront the hard right soon, the decision is likely to be as shameful as the separate but equal ruling. Such a ruling would placate the hard right, but leave the true resolution of the

The soaring Challenger was to be a talking point for Reagans State of the Union Address of that day, passing directly overheadashewastocasthiseyesheavenwardtosayhello.Tomeetthistimetable,itwaslaunchedearlyinthemorning while its Orings were still brittle, which caused the disaster. Its failure caused the complete abandonment of Oring technology. The space shuttle launch following the Challenger was slated to carry a payload of plutonium for use in a satellitewiththeStarWarsprogram.

problem to future generations. At the moment the nation is simply too polarized to embrace an honorable solution. The only hopeful signs that we may eventually come to an honorable solution has been the loss of electionsbymembersofthehardrightgivingwaytomoremoderatevoices. Economist Robert Reich made the statement that New Deal liberalism was held together by the shared experiencesofovercomingthedepressionandthewar.Statedsimplyitwasthepoliticsofwenotofusand them.KennedyandJohnsonwerethelastPresidentstounderstandthat.Inspeechesofboththetelltalesignof weappears.StartingwiththeelectionofNixonpoliticsstartedtobecenteredonusversusthem.Certainly Nixonconsideredtheantiwarmovementtobepartofthemandtheuspartwasthesilentmajority.This styleofconfrontationalpoliticswascontinuedunderReaganandBush. This writer was living in the Portland, Oregon area at the time of the 1994 elections. The Republicans gained control of the state house that year. The house had previously established a memorial award in the name of Frank Roberts for those that had performed exemplary public service. Roberts had been a life long publicservantandaDemocraticlegislator.Hewaswelllikedandrespectedonbothsidesoftheaisle;hiswife Barbara was then governor. The Democrats asked for the award to be granted in the following legislative session,however,inaraucous,meanspiritedmovetheyrefusedtoevenconsidertheaward.Theawardcould havebeengrantedtoanyone,itwasentirelyabipartisanaward;theRepublicantempertantrumthatyearnot onlywasadisservicetothepeopleofOregon,itwasdraggingthenameofagoodmanthroughthemud. EventuallythisconfrontationalstyleofpoliticsculminatedintheimpeachmentofClintonoveralousyblow job.Nowhowsthatforahighcrimesandmisdemeanors?Onlytwoofthearticlesofimpeachmentwerepassed alongarazorthinpartylinemarginintheSenate;theothertwowereeventoomuchforsomemembersofthe Republican Party. What is even more remarkable about this is that following the 1998 elections and the historiclossesoftheRepublicans,therehasbeenthelackofleadershipintheHouse.FirstNewtresignedhis seatandthespeakerspositionandranofftohideunderarock.Thenthenewspeakerdesignate,Livingston didthesameonthedaythevoteforimpeachmentwastaken,yetthisisthepartythatclaimedtheycouldrun thecountrybetterthanClintoncould.Perhapstheyneedsomepracticeonhowtoruntheirownpartyandstop acting like a bunch of pious hypocrites before we allow them a shot at running the country. Both Newt and Livingstonwereoutedinsexualescapadesoftheirownbyinvestigativereporters. Thisisdivisionistpoliticsatitsworst;eventheopinionpollsshowthattheAmericanvotersdonotfavoran impeachment by almost a three to one margin, contrasted to the almost universal call for impeachment of Nixon.InfacttheRepublicanshavesetadubiousrecordofsortsfollowingtheimpeachmentvoteoftheHouse, the majority of voters, 59%, now disapproves of the Republican Party, Yet they even had to have one more article of impeachment than those Nixon faced. Its not the type of politics that the voters want. The voters want closure for many of the issues from the sixties. There is no better example of this than Jesse Jacksons triumphalmarchacrossWisconsinin1988.Yes,Jacksonlosttheprimarythere,butthepeopletherereached outandembracedhim,conveyingasenseoftryingtohealtheracialwoundsofthenationeveninthesmall ruralwhitetowns.[86] E.J. Dionne goes on to argue that Jacksons defense of the common people was what united whites and blacks in Wisconsin, that Jackson saw the whites of modest means as victims of racism just as blacks were. Jacksonarguedthatracismisnotthesinofthewhite masses,butratherthetoolofchoiceofwhiteelitesto dividethenaturalcoalitionofthecommonman.[86]ThroughoutthischapterwewillshowhowtheRepublican Partyhasusedthistooltogainandmaintainpower.Andmakenomistakeaboutit:itisatoolofthefascist;itis areactionarytool.JustasthehardrightwastryingtoturnbacktheclockaftertheCivilWartoslaverytimes, therightwingextremiststodayaretryingtoresettheclockbacktothe1950s,toatimebeforethecivilrights andfeministmovementhadachievedgains. One of the themes of Reagans campaign was the return of the hostages in Iran. Iran had already gone fascist, replacing the Shah with a religious theocracy. How then did a small backward nation dare to take prisoner the embassy personnel of the US? Before answering that question, we must first explore the root causes.Wellbrieflylookatthehistoriceventsstemmingfromthe60sthatexertedsomuchinfluenceonthe 80stoprovideabackdroptothe80s.Fromthisbackdrop,wecanthengainabetterunderstandingoftheroot causesoftheeventsleadingtotheriseinfascisminAmerica andaroundtheworld.Hitlerusedadivisionist policytogaincontrolofGermany;heblamedtheJews.InAmericathehardrightusesthesametactictogain control. Their extremist platform is simply not appealing to the vast number of voters, so they must rely on dividing the country. They pit blacks against whites, rich against poor, employers against employees,

environmentalists against capitalists, the retired against the workers, the young against the old and the educatedagainsttheuneducated. This writer attributes the following events and movements from the 60s as the most influential in the following decades. They are still exerting powerful influences well into the 1990s, both globally and domestically,roughlylistedintheirorderofimportance.[21]Notethemajorityofthesereasonsareconnected inmorethanacasualwaytoVietnam. 1. ThelossofVietnamWarandtheendofUShegemony. 2. TheshiftinwealthtotheMideastaftertheformationofOPEC. 3. RiseofJapanandGermanyaseconomicpowerhouses. 4. Therebirthoffundamentalreligionworldwide. 5. TheresignationofNixon. 2. Thepassageofcivilrightslegislation. 3. Thesexualrevolutionofthe60s. 4. COINTELPRO. 5. Thedeclineofunions. 6. ThechangeinpartyleadershipoftheRepublicansandDemocrats. Thiswritercanthinkofnosingleeventorpolicyfromthe60s;thatexertsmorelingeringeffectsdomestically andinternationallythanthedefeatoftheUSintheVietnamWar.Faceitwelostthewar.IdontcarethatNixon calleditpeacewithdignity;welostthewar.Asmuchasthesimplelossofthiswarcausedtroubledomestically andinternationally,denyingthesimplefactgeneratedevenmoretrouble.Weblamedthemilitaryleadersfor theloss.Weblamedthelossonthedraft.Weblamedthepoliticalleadersfortheloss.Weblamedthelosson thehighrateofdrugusebyourforces.Weblamedthewarprotestorsfortheloss.Wemadeexcusesclaiming that we had beaten the enemy in the Tet offensive. This damn war spanned the administrations of five Presidents, from Trumans covert aid to the French in Indochina to Nixons expansion of the war into neighboringCambodia.Noonehasyetseenthelightattheendofthetunnel.Wewontseethatlightattheend ofthetunneluntilasanationweputasideourprideandfaceuptothefactthatwelostthewarandquitusing itasadamnexcuse. NorshouldanyoftheveteransthatservedinVietnammisreadthisasanattempttoblamethemorinany way distract from their honorable service to this country. The soldiers of Vietnam were honorable men that foughtforwhattheybelievedin.Likewisethiswriterplacesnoneoftheblameontheantiwarprotestorsfor, likethesoldiers,theprotestorswerepeoplefightingforwhattheybelieved.Ratheryoushouldbereadingthis asanattackonthosedirectlyresponsible.ThiswriterdoesnotputtheblameonanyofthePresidentsexcept those that are noted. As for the Presidents, they were essentially powerless to stop the everdeepening quagmire of Vietnam. Nixon and Johnson both could have probably withdrawn from Vietnam and survived politically,asbythattimepublicopinionwasshiftingagainstthewarandtheybothdeservesomeoftheblame. ButletsgiveLBJcreditwherecreditisdue;hechosenottoseekreelectionandfurtherdividethecountry,an honorableactionnomatteronwhatsideofthefenceyouarestanding.NordoIplaceanyoftheblameonthe reasonslistedabove. It is now known with certainty that Nixon actively worked to stall the Paris peace negations of LBJ. Using Anna Chennault, the widow of a WWII general, Nixon persuaded South Vietnamese President Nguyen Van Thieu to sabotage the Paris peace talks since Nixon would give him a better deal than Johnson would. When a wiretap revealed the ChennaultchanneltoJohnson,Humphreyrefusedtocapitalizeontheinformation,fearingit wouldprovokeanationalcrisis.[74]Hereisthefirstexampleofhowthehardrightusedthe wartodividethenationforpartisangainandtohellwithanhonorablepeaceandwhatis bestforthenation.WelikewisenotethestatesmancharacterofHumphreyinsettingaside Anna Chennault personalandpartisangainforthebettermentofthenation. No,thiswriterplacestheblame,andthereisplentytogoaround,ontherightwingextremistsandtheir rabidfearofcommunism,theyweretheonesthatsuccessfullycreatedtherabidanticommunistparanoiain this country. We were right to oppose communism. But to what limits was this opposition to communism healthybeforebecomingharmful?Justasthereisafinelinebetweenasocialdrinkerandanalcoholic,thereis a fine line in opposing communism in the name of patriotism before the opposition becomes an unhealthy phobia.TheoldadageBetterDeadthanRedisjustoneexampleoftheinflammatoryrhetoricofthosetimes.

Pursuingthefightagainsttheenemyuntilitdividesthecountryortothebrinkofwidespreaddissentionisnot patriotism.Andyes,Namdidjustthat. To fully appreciate the antired hysteria of the early 60s, one needs to have lived through this era. This writer has done so; he can remember the duck and cover drills inschools, like a slab of a Formica desk was going to protect anyone from a nuclear blast. I can remember taking the 7th grade final in science, in which three fourths of the questions were related to civil defense. One needs to remember the frantic rush to establish and build civil defense shelters. But we continued building bombs until we could nuke the whole Sovietnationsixtytimesover.Thefoolswerenotcontentwithjustdestroyinganation;theywantedtoshake theashesaswell.Itdidntmatteratwittothethesefoolsifwehaddestroyedthewholedamnplanetinanall outnuclearexchangeaslongassomeoneremainedtoclaimtheashesforcapitalism.Insuchanexchange,the luckyoneswouldhavebeenatgroundzero;thesurvivorswouldhavecursedthefoolsfortheirideologicalwar untiltheydiedahorrendousdeathfromradiationpoisoning,starvationordisease. I can remember with an amused grin the antired propaganda stories that were required reading in schools.Doesanyoneremember Animal Farm?Inshortthewardrumswerebeatingloudly.Notasinglevoice wasraisedforsanity;todosowouldhavebeenunwise,ifnotunhealthy.Kennedywascriticizedunjustlyfor thefailureoftheBayofPigs,forhisfailuretouseforceduringtheCubanMissilecrisis,forhispolicyofdente withtheSoviets.HeevenhadtousetheFBItoshutdownanillegalCIAtrainingcampforCubanguerrillas.The CIAactivelytriedtosabotagehispolicyofdetentebyplottingtoblowupSovietshipsinCubanharbors.How didtheCIAbecomesooutofcontrolthatitopenlydefiedthePresident? After all, didnt Khrushchev beat the podium with his shoe at the UN claiming he was going to bury us? DoesanyonerememberKhrushchevandNixonskitchendebate?Itwasamazingthattheycouldntfindmore pressing subjects to debate than kitchen appliances! Had not Tail Gunner Joe found communist moles in the governmentafewshortyearsbeforebywavinganeverchanginglistofnamesinfrontofthemedia?Allthe domesticpoliticswerecloakedintheantiredhysteria.Thebilltoconstructtheinterstatehighwaysystemwas passedbecauseitwasneededfornationaldefense.ThespaceprogramwaslaunchedtobeattheRussiansto the moon, lest they launch an attack from there. Parts of the farm program were justified in setting aside a storeofgrainssowecouldovercomeandsurviveanuclearattack. TheJohnBirchersandothersweredistributinglistsofthecommunistplottotakeoverthecountry.Those lists blamed the decline in morals as part of the communist plot. These lists circulated in the late fifties and earlysixtieshadalreadyblamedtheyetnonexistentsexualrevolutionaspartofacommunistplottosubvert America. They likewise blamed the banning of forced school prayer as part of the plot. Yes this writer can rememberbeingforcedtopraytoagodthatheneitheracceptednorbelievedin;hedidntlikeitthenandhe detests it even more today. This writer can even remember being told after the Kennedy half dollar was releasedthattheinitialsofthedesignerlocatedunderthebustwasproofthatKennedywasacommunist,in the crazed minds of the hard right they looked like a hammer and sickle. This was not patriotism; it was nothingshortofaphobiaperpetratedontheAmericanpublic by abunch ofparanoid ravingloons.Butwho weretheseparanoidloonsandwhatwastheirmotivation? In case there is anyone that questions that Eisenhower was essentially powerless to stop the ever deepening commitment to Vietnam, let me remind them that the John Birchers were calling Eisenhower a communist. They labeled him as a fellow traveler. If he had not chosen to support South Vietnam he would have been impeached, run out of office or possibly have been the target of an assassination. One only has to readRichardDudmansbook,MenoftheFarRight,publishedin1961,togetafeelforhowtherabidright wasabletoinfluenceandcontrolpublicopinionatthattime.[6]Helistsmanyoftheretiredmilitaryofficers that were members of the John Birch Society and the closely aligned American Security Council; the listings couldbemoreaccuratelydescribedasawhoswhoofretiredhighrankingmilitaryofficers,[7]GeneralWalker being the name that is commonly remembered and the furthest out of touch with reality. Walker was the general that distributed John Birch literature while on active duty in Germany. Subscribers to the ACS reads like a list of corporate America, in addition the founders of many of these corporations were members and sourcesforfunding.AnothernameassociatedwiththeACSisDonner;theDonnerFoundationsupportsmany rightwinggroupsandinstitutes.Inanotherchapterwewilltakeacloserlooktothefundingactivitiesofthe DonnerFoundation,includingdonationstogroupsthatwereinvolvedintheimpeachmentattemptofClinton. Dudmangoesontoinferthatthesefarrightorganizationsofhardrightcorporateleadersandtheirclose association with both retired and active military personnel who supported hard right causes and extreme measuresmayhavebeentheobjectbehindEisenhowerscrypticwarningofthemilitaryindustrialcomplexin

hisfarewelladdress.[8]Besidesthelargenumberofformermilitaryofficers,membersoftheACSincludedthe headsofmanycorporations:Sears,Motorola,USSteel,GE,andIllinoisCentralRailroad.Othersinvolvedinthe BirchersincludedKochandHunt,bothheadsofoilcompanies.[42] LetsnoteherethattheAmericanSecurityCouncilhadrootsfromthreeracialandantiSemitic,proHitler groupsfromthe1930saccordingtoAlanJ.Weberman.[33]ThegroupsweretheAmericaFirstCommittee,the American Vigilante Intelligence Federation and the American Coalition of Patriotic Societies. Weberman also claimsthatWilliamRegnerywasacofounderoftheACS.ThisisthesameRegnerythatownsRegneryPress that has been responsible for many of the antiClinton books. Lets note also the similarity in behavior that bordersontreasonofthehardrightintheirefforttoimpeachClintonandtheearly1960shardrightsdistrust of elected and appointed officials. Needless to say, the factual content of the books from Regnery is more fictionalthantruthful. Yes, this writer believes that a large part of the cold war was due to the rants coming from the military industrialcomplexthatEisenhowerwarnedusaboutinhisfarewelladdress.Ifthereisonesinglepointthatis outstanding about the Eisenhower administration, it was his failure to lead. He deferred decisions on issue afterissue,hopingforthebest.Washebeginningtoseethedangerofhislackofleadership?ThiswasIkeslast publicaddressasPresident;obviouslyhewouldonlyincludeissuesthathefeltwereimportant.Hecertainly waswellawarethatitwouldbepartofhislegacy.WashebeginningtoseethattheColdWarwasnothingbuta cover to transfer the wealth of the masses to the few elite? Was he beginning to see the dangers of absolute corporatismthathasbecometheprivilegedchildoftheRepublicanPartytoday?Folks,hedidntincludethat warning for no reason; he sensed that it was a real and imminent threat to democracy. Eisenhower was anythingbutanalarmist. Yes, he later tried to modify his statement somewhat. But this is proof of nothing. If anything it raises anotherdisturbingquestion.Washepowerlesstostopit?Ridiculousyousay?No,itwouldnotbethefirsttime thatthePresidentoftheUnitedStateslearnedthatcorporateleadershadmorepowerthanthePresidentas thefollowingexampleshows. OnFebruary27,1942ThurmanArnold,headoftheAntitrustDivisionoftheDepartmentofJustice,armed withdocumentsunderhisarmandfollowedwithateamofaidesmarchedinto30RockefellerPlaza.Following himwasSecretaryoftheNavy,FranklinKnox,andSecretaryoftheArmy,HenryStimson.Arnoldlaiddownthe chargesofStandardOilscontinuedfavoritismofHitlerinrubberdealsandpatentarrangements.Takingpains toensuretheyunderstoodthathehadtheproofoutliningthattheRockefellers,TeagleandFarishhadacted againsttheinterestsofAmerica.AttheendArnoldcoollyproposeda$1.5millionfineandaconsentdecreeby whichStandardwouldturnovertothegovernmentallpatentsthatFrankHowardhadpickedupinHolland. Farishrejectedtheproposalonthespot.HepointedoutthattheUSArmy,NavyandAirForcedependedonoil fromStandard.Inotherwords,heblackmailedthegovernmentonthespot.Tosettletheissue,Farishproposed afineof$50,000spreadoutoveralistofcorporationssolongthatnoonewouldbeforcedtopaymorethan $600.[78]Arnold,StimsomandKnoxrealizedthattheywerepowerlessagainstcorporateAmerica. Noristhatviewoftherabidanticommunistshardlyextreme;thepublicallowedTail GunnerJoetorunamokintheearly50s.Itsevenmoredamningconsideringthatmanyof thevictimsofTailGunnerJoewerelaborleadersandpeoplefromthemedia.Thesewere precisely the people that could stand up and expose corporate America for what it really was.Therewerecallsatthetimethroughoutthenationextendingallthewayintotheearly 60s for the impeachment of Earl Warren as a communist. The Birchers even promoted a writingcontestforschoolpupils;thewinnerwouldbechosenonwhocouldgivethebest Chief Justice reasons for the impeachment of Warren. They likewise had billboards through out the Earl Warren southprimarily,callingforhisimpeachment.Anoutgrowthoftheirinfluencewasthenon recognition of China until 1971 and then only Nixon, a politician with a reputation for being hard on communism, dared to recognize China. There were several groups that actively opposed Communist China; most notable was the Committee of One Million. Remember that two tiny islands about thirty miles off the coastofMainlandChinawereanissueintheKennedyNixonpresidentialdebates.Insteadasanationweclung totheabsurdpolicyofrecognizingonlythetinynationofFormosaasthegovernmentinexileofChina.Butfew writersarewillingtolookoracknowledgethepowerthatafewextremistsbackedbycorporateAmericahave indirectingnationpolicyorpublicattitudes. There is one additional group to blame for the involvement in Vietnam that the press likewise has overlooked.Thatwouldbethemultinationaloilcompanies.Asateencomingofageduringthe60s,Icanrecall

spots on the evening newscasts of reporters interviewing a company commander. The commander would explain that presently he was guarding the oil companys exploration efforts in the sector that they had just cleared and secured. Once the company had finished, they would then clear another area that the company wantedtoexplorenext.Thekeyhereistheoilcompaniesdeterminedwhatareastoclearnext,whatahellofa waytofightcommunism. The one single event that triggered my opposition forever to the war was the newscasts covering the evacuation of American civilians from Vietnam. The reporters mechanically named each person being evacuatedandtheirpositionorjobtitleastheyboardedtheflightsout.Approximatelyhalfofthosecivilians were employees of oil companies. They were not the gophers that punched holes in the ground, but instead they were VPs of various divisions within the companies or they were high ranking system engineers, not exactlythetypeofciviliansyouwouldexcepttobevacationinginthecenterofacivilwar,whentheyarethe sametypesthatthinktheyaredyingoverapapercut.Inshortthegophershadfoundwhatthesemuckrakers wanted.Asfinalproofofthis,oncetheParisPeaceAccordwassigned,oneofthefirstdiplomaticeffortsNorth VietnamundertookwastoaskformembershipinOPEC.Theirrequestformembershipwasdenied.Presently the oil companies are actively exploring off the coast of Vietnam. The media has never explored this involvementofcorporateinterestinVietnamduringourinvolvement.Thereismorethanonebookwaitingfor awriterthatiswillingtoexplorethetopic;theoilcompanieswerenotalonethere,butitdoesillustratethe conservativebiasinthemedia,abiasthatcankillstoriesbyneglect. MajorGeneralSmedlyD.ButlerwasoneofthemostdecoratedsoldiersfromWWI,hestronglysupported theBonusMarchers.PerhapshesummedupthecorporatewelfareaspectsofUSmilitaryinvolvementbetter thananyone.Hereisaquoteofhimsumminguphismilitarycareerinhisretirement. Thereisntatrickintheracketeeringbagthatthemilitarygangisblindto.Ithasitsfingermen(to pointoutenemies),itsmusclemen(todestroyenemies),itsbrainguys,(toplanwarpreparations) andaBigBoss,(supernationalisticcapitalism). IWasaRacketeer. It may seem odd for me, a military man to adopt such a comparison. Truthfulness compels me to. I spent33yearsand4monthsinactiveserviceasamemberofourcountrysmostagilemilitaryforce theMarineCorps.IservedinallcommissionedranksfromasecondlieutenanttoMajorGeneral.And during that period I spent most of my time being a highclass muscle man for Big Business, for Wall Streetandforthebankers.Inshort,Iwasaracketeerforcapitalism.[99] Only one of the five Presidents had the courage to face the truth during the war. That was Jack Kennedy; he issuedawithdrawalofforcestotalingabouttenpercentofthetotalforceinVietnaminOctober1963.Hisplan calledforthetotalwithdrawalofUSforcesbytheendofthe1965,asillustratedbythefollowingquotetaken fromthereportoftheMcNamaraTaylormissiontoSouthVietnam.Thiswaspointtwointhedocument. AprogrambeestablishedtotrainVietnamesesothatessentialfunctionnowperformedbyUSmilitary personnelcanbecarriedoutbyVietnamesebytheendof1965.Itshouldbepossibletowithdrawthe bulkofUSpersonnelbythattime.[3] Additionally,NationalSecurityAgencyMemonumber263issuedonOctober5,1963calledforthewithdrawal of 1,000 of the 16,000 US forces in Vietnam.[4] Unfortunately Kennedy was assassinated shortly after withdrawingthefirstgroup.TherestillarethosethatdisputeKennedysplannedwithdrawal,eveninlightof these documents. But Kennedy had already shown his independence and willingness to disagree with the advice given to him by his military advisors in the Cuban missile crisis. If he had followed the advice of his militaryadvisorsatthetimeofbombingthesites,itwouldhavemostlikelyhaveledtoanalloutnuclearwar, as documents from the former USSR show that over twenty nuclear warheads were already in Cuba at the time.[13]HehadalreadylearnedfromexperiencethattheCIAhadliedtohimabouttheBayofPigsinvasion andhadthreatenedtobreaktheCIAintoathousandpiecesandscattertheminthewind.HewasaPresident thatwaspragmaticinhisapproachafteroncesettingcourse.Thusthedoubtisunjustified,asitseemsclearhe had set course on an American withdrawal of forces. Some writers have gone on to claim that the JFK assassinationwasduetothewithdrawal. Didthelossofthiswartoathirdrateagrariancountryleadtothemassiveuprisingofcommunismwilling to do battle with the US as the war mongers predicted? Undoubtedly it emboldened and inspired some, but there was no massive uprising. Yes, there were a few nations where socialism or communism was leading revolutions,butrepressiverightwingdictatorsledthesenationsforthemostpart.Sotheserevolutionswere

more about freedom than a rise of communism. The only objections to these revolutions were from the American corporations with a vested interest in maintaining the status quo. The many covert operations in Central and South America that the CIA conducted for American corporations serve as prime examples. The USSRwasinvited,ratherunceremoniously,toleaveEgypt.Cubabecameboggeddownintheirownversionof Vietnam in Angola. Likewise, the USSR became bogged down in Afghanistan. In short about the only ground thatwascededtothecommunistswasinSoutheastAsia. DiditleadtoamassivedefectionofUSalliesquestioningourwillandcommitmentthat the war hawks predicted? No, I can think of no ally that defected, with the possible exception of France, but then France has always exhibited a mean streak of independent thinking and actions. Remember it was the US that offered sanctuary to both the Shah of Iran and Marcos of the Philippines, two despots that we had shamefully supported in the past. The granting of permission for the Shah to enter this country was the single most important event that triggered the taking of the US embassy as hostage. President Carter could have refused to admit the Shah, justifying it by the Shahs human rights abuse, but insteadchosethehumaneoptionofallowingtheailingShahtodieincomfortintheUS. Mohammad Reza DiditleadtotheendofUShegemony?Hardly,somepeoplearenowclaimingin1998 Shah Pahlavi that the US is the only world superpower. I would view that as a little premature and a dangerousthought;allRussianeedstoregainitssuperpowerstatusisastrongleader. What it has led to is the division of the American public. Instead of seeking closure of the wound, it still remainsafesteringsore.JimmyCarter,inavainattempttoseekclosure,issuedageneralpardontothedraft dodgers,butthefarrightelementsdonotwantclosureofthiswound;theyactivelyseekmeanstoopenit,keep it festering and infect it. By keeping the American people divided, its easier for them to gain control of the issues and obtain power. Take for instance the publishing of the Pentagon Papers; they detailed our involvementinVietnamfromtheverybeginninguntilthedaytheywerewrittenandthepastmistakesmade. AnyPresidentfollowingthereleaseofthesepaperswasthenawareofthetragicmistakeofcontinuingonthe courseofescalation.Nixonhadtheopportunitytodotherightthingandpullout,buthechoseinsteadtouse thePentagonPapersforpersonalpoliticalgainasthefollowingquoteshows: June17,1971,Nixon,Haldeman,EhrlichmanandKissinger,5:176:13pm,OvalOffice Haldeman: Youmaybecanblackmail[LyndonB.]Johnsononthisstuff[PentagonPapers]. Nixon: What? Haldeman: YoucanblackmailJohnsononthisstuffanditmightbeworthdoing....Thebombinghalt stuffisallinthatsamefileorinsomeofthesamehands.... Nixon: Dowehaveit?Iveaskedforit.Yousaidyoudidnthaveit. Haldeman: Wecantfindit. Kissinger: Wehavenothinghere,Mr.President. Nixon: Well,damnit,IaskedforthatbecauseIneedit. Kissinger: ButBobandIhavebeentryingtoputthedamnthingtogether. Haldeman: Wehaveabasichistoryinconstructingourown,butthereisafileonit. Nixon: Where? Haldeman: [Presidential aide Tom Charles] Hudson swears to God theres a file on it and its at Brookings[Institution,acentralistWashingtonthinktank]. Nixon: Bob?Bob?NowdoyourememberHudsonsplan[forWhiteHousesponsoredbreakinsas partofdomesticcounterintelligenceoperations]?Implementit. Kissinger: NowBrookingshasnorighttohaveclassifieddocuments. Nixon: Iwantitimplemented....Goddamnit,getinandgetthosefiles.Blowthesafeandgetit.[11] ThiswasthevalueofthePentagonPapersforNixon,andthehardrighthasneverstoppedusingVietnamfor political gain. Remember it was the hard right that attempted to paint Clinton as a draft dodger during the VietnamWarinthe1992election.Thelossstillserveshard rightneedsthirtyyearslater.Thefarrightuses Vietnam in two manners to support their agenda. For issues they support, they frame it as a war against communism;tothoseissuestheyoppose,theyframeitasinvolvementinaforeignnationscivilwar. This is self evident in Bosnia where the US has sent troops under the command of the UN on a peace mission.InsteadthehardrightclaimsthisisjustthestartofanotherVietnamquagmireandthatwehaveno businesstogetinvolvedinacivilwarofanothercountry.Perhapsthesemoralhypocritesarewillingtostand asideandcondonegenocidebytheirowninaction,waitingforittospilloutbeyondthebordersoftheformer

Yugoslavian republic as it did in WWI, but that is no excuse to stand aside. Thats the same policy of appeasement that led to the rise of the Third Reich and the same Republican isolationist views prior to the bombingofPearlHarbor.Itisthesameviewsoftheoldhardrightgroupfromthe1930s,liketheAmericaFirst group. Perhaps, Truman made the best statement concerning the Republican isolationists the day after the bombingofPearlHarborinalettertohiscousinEthelNolan: Satupallnightandlistenedtotheradio,gottoPittsburghat3:30whereImetSenatorChavezofN. MexwhocamefromChicago,Sen.DavisofPa.wholivesthereandCurlyBrooks,thegreatRepublican Isolationist from Chicago. Hes a new Senator from Ill. Legionnaire, fat, curly haired, Has a small synthetic blonde wife and is the most important Chicago Tribune Senator. He looked as if hed swallowedahotstoveandthatisthewayallthoseantipreparednessboyslookedthenextday.[14] Hidingacrosstwooceanshasneverservedthiscountrywell.BosniaisnotVietnam;wedidnotcancelafree election in Bosnia as Eisenhower did in Vietnam. We are not viewed as an imperialist in Bosnia, as we were viewedinVietnam.Inshortasaworldsuperpower,wehaveamoralobligationanddutytopreservethepeace andpromotefreedom,butwedonothavetherighttoimposeourwillonothersaswetriedtodoinVietnam. Shirking that duty or misusing it will only generate more global problems and quicken our demise as a superpower. And therein lies the controversy of Bosnia; the hard right doesnt give a damn about moral obligation or duty.InBosniatheylackabogeymanlikecommunismtodemonize,although,theyaremakingavainattempt to demonize the UN. Secondly every other war we have been involved in has involved the protection of corporate Americas assets. If corporate America had found a way to make a fast buck off this police action, theywould beclamoringformoretroopsand expandingtheeffort. Inshortourpastmilitary aidandcovert actionsinforeignlandshashadnothingtodowithpromotingfreedom,butrathertomaintainthestatusquo forcorporateAmerica.CentralandSouthAmericaprovidetheidealexamplesinourwillingnesstoprotectany petty despot that supports corporate America and our willingness to overthrow any government there that startstopromoterealfreedomforitscitizenssuchasaredistributionoflandtopeasants. Butyoudonotneedtotakethewordofyourwriteronthis.In1979ReagansfutureUNAmbassador,Jeane KirkpatrickwroteanarticleentitledDictatorshipsandDoubleStandards,inwhichsheurgedUSsupportfor authoritarianregimesasopposedtototalitarianregimes.Theformerabusedthehumanrightsoftheircitizens, butwerereliablealliesandcandidatesfordemocratizationsheclaimed.[100]Inotherwordstheywerewilling todobusinesswithcorporateAmerica. We covertly supported the assassination of Allende in Chile and installed Augusto Pinochet. In his seventeenyearreignofterror,Pinochettorturedhisopponentsandhadahistoryofhumanrightsabuses.This covertsupportfortheoverthrowofAllendehadnothingtodowithfreedomorstoppingcommunism,itwas solelyduetoprotectingtheinterestsofcorporateAmerica,inparticularthecopperminingindustry.Currently he is seeking asylum in Britain rather than return to Chile and face charges. The Reagan lackey, the Iron Maiden,Thatcherwantstoprotecthim.Somuchforhumanrights,justiceandlibertycanbedamnedifthereis aprofittobemade.[44]FortunatelythemajorityoftheBritshadthegoodsensetorefusetoprotectadespot. Hewillfacetrialforhiscrimesagainsthumanity. ButthesearethesameyahoosthatdefendedtheillegalIranContramessinNicaragua.Thiswasnothing morethananothercivilwarinacountryledbyarightwingtyrant,butthehardrightinAmericahadmanaged tocloakitasafightagainstcommunism.SupportingtheContrashadnothingtodowithfreedomorthefight against communism; it was nothing more than a fight to preserve the status quo for American corporations. Additionally the right wing extremists managed to cover up for the most part its real interest in Central America, the corporate exploitation of the nation. For the doubters of American corporate exploitation of Central American countries, one can review the articles from the Cincinnati Enquirers expose of Chiquita BananamaintainedbytheCouncilofHemisphereAffairs.[5] ThereligiousrightplayedalargeroleinCentralAmericafortheReaganadministration.Followingthecoup in 1982 in Guatemala, Pat Robertson interviewed Rios Montt and promised to send aid and missionaries. Weeks later a Gospel Outreach pastor met with the Reagan administration. Shortly thereafter the State DepartmentheldaspecialbriefingforleadersofthereligiousrightandendorsedOperationInternationalLove Lift.Bythenthousandshadbeenmassacred,thetargetsweremostlytheindigenouspopulation.SomeGospel Outreach members apparently took part in the torture and interrogation operation. One Gospel Outreach pastorwentontodefendthekillingsasfollows:

TheArmydoesntmassacretheIndians.Itmassacresdemons,andtheIndiansaredemonpossessed; theyarecommunist.WeholdBrotherEfrainRiosMottliketheKingofDavidoftheOldTestament.Heis thekingoftheNewTestament.[101] Itisalwayseasiertokillwhenyouhavegodonyourside. OralternativelyreadDeterringDemocracybyNoamChomskyandhowAmericancorporationsdominate theregion.[15]ForthosestilldoubtingthewilloftheUS,oneneedlooknofurtherthantheembargoonCuba. Yes,itsstillineffectin1998;thereasonisCubaisstillcommunistandthehardrightintheUSwillnottolerate aleftofcentergovernmentinLatinAmerica.Itwillhowever,overlookthefaultsandsupportanytyrantthatis rightofcenteraslongasheswilling todobusinesswithcorporate America.Oncehis usefulnessexpires,so doeshissupport;justaskNoriega. HewasontheCIApayrollandprovidedcoverthelpinReagansillegalschemetoaidtheContras,butonce heoutlivedhisusefulness,BushbroughtdownthefullmightoftheUSmilitaryonhim.NorweretheAmerican peopleevertoldthetruthabouttheheavyciviliancasualties.TheCentralAmericanHumanRightsCommission (CODEHUCA)reportedmuchheaviercasualtyfiguresthanputoutbytheUSmilitary.Thenthereisthematter of the mass graves we had left behind, driving the true figures even higher than what had been previously reported.ButthesereportsseldomreachthecitizensoftheUS;thecorporatemediaprotectsitsbenefactors andremainssilent. Additionally,thenewstealthfighterswereusedagainsttargetswithnoradarandonlyacoupleofWWII vintage antiaircraftgunstodefendthemselves.[16]Nowjustaskyourselfwhywouldwerisktheuseofour newestfightersonabananarepublicthatdidnthaveachanceinhell.ItistheopinionofthiswriterthattheUS looksforawaraboutever10to15years.IthasbeengoingonlikeclockworkeversinceKorea.Thedriving reasonforthisquestforwaronaregularbasisistoprovideatestinggroundforanewgenerationofweapons aswellasameanstofunneltaxpayersmoneytothecorporationsthatsupplytheweaponsallcloakedunder themantleoffalsepatriotism.VietnamwasourtestinggroundforthenewhelicoptergunshipsandtheM16, aftertheM14rifle,provedafailure;ReagansbombingofLibyatestedsomesmartweapons,Panamaasmall testforthestealthfighters. Andofcourse,BushcouldntresisttestingthenewweaponsinamassivewayintheGulfWar,justasHitler tested his weapons in the Spanish Civil War. This writer was struck by the surreal nature of the television coverageoftheGulfWar.Alloneneededtodowastoplaceaswastikaonthoseuniformsandonewouldnot have been able to tell the difference between the reports and Nazi propaganda films from the 193040s. My God,eventhehelmetswerereminiscentoftheNazis. But even scarier than the propaganda films was the giddy attitude of the average citizen after they were surewewouldprevail.Thepublicembracedeachnewreportwithglee,openingbraggingaboutthecapabilities ofourmilitaryshowingnoremorseevenforthehighwayslaughterorthatofcivilians.Someoftheexuberance wasnodoubtduetothereestablishmentofthesupremacyoftheUSmilitaryfollowingthedefeatinVietnam, butitisstilladangerousformofnationalism;itsthesameresultaswhatHitlerwasabletoachievebystirring themassesintoafrenzywithhispropagandafilms. Nordiditgounnoticedbyourallies;Japan,forone,warnedusandexpresseddeepconcernoverit.This writerdeplorestheglorificationofwarandthemilitary.Patriotismisonething,buttheglorificationofwaris notpatriotism.Thisglorificationofthemilitarywasextendedaftertheconclusionofthewarwithatickertape paradeinNewYorkCity.ItwasnotenoughfortheBushWhiteHousetowinthewar;theyneededtogloatover it as well. General Storming Norman Schwarzkopf was made into a celebrity overnight. There was talk of running General Colin Powell as a Republican Presidential candidate. This is the same type of extreme nationalismthattheNazisusedtogainpower. AfterthewarinthePersianGulf,wethenstartedtolearnthatthemediahadonceagainbeenasleepatthe wheel and only reported the official version during the war. We learned that the Kuwaiti nurse that had claimedtheIraqisweretossingbabiesoutofincubatorswasnotanurse,butamemberoftheroyalfamily.In shortthestoryabouttheincubatorswasfalse;itwaspropagandausedtobeatthedrumsofwar.Someofour new weapons, for instance the Patriot Missile System, was not as effective as the first reports indicated and maynothavebroughtdownasingleScud.Nowafterseveralyears,amysteriousdiseaseisstrikingthesoldiers that fought there. That may be related to either exposure to chemical weapons, depleted uranium shells or someoftheuntestedvaccinestheyreceived.YetthePentagonhasdeniedanyconnectionandhasonlylately cometogrudginglyacknowledgetheirresponsibilitytothesoldier,justastheyhadrefusedtoacknowledgethe connection of Agent Orange use in Vietnam with the later health problems of veterans. This refusal to admit

responsibilitytothesoldierscontractingservicerelateddiseasesalsoleadstoselfdoubtinganddistrust.Now isntthatafineexampleofpatriotism,treatingourveteransasexpendablecommodities?Buthaveyouheard any of the war hawks calling for increased veterans benefits? Hardly, the ones that have expressed outrage overthemaltreatmentoftheveteranshavecomefromtheleftforthemostpart. Chomsky also raises the interesting question of which way we will go after we have became the sole superpowerintheworld.WillweproceedonarighteouspaththatweseemtobefollowinginBosnia,orwill wejustrevertbacktobeingtheimperialisticmonsterthatwewereinNicaragua?Thiswriteriswillingtostate the choice will depend upon if we can defeat fascism at home. If we fail to rein in the hard right and their corporatesponsors,thenwearewellalongtheroadtoimperialismandthenextworldwarwillfigureAmerica asthevillain.Youcanbetyourlastdollarthatiftheserightwingershadfiguredoutawaytomakeabuckon theBosiniamess,theywouldbearguingformoretroopsandaidforthearea. Aslateasthesummerof1998thehardrightwasstillusingtheVietnamWarforpoliticalpurposes.CNN andTimereleasedastoryjointlyentitledValleyofDeathaboutoperationTailwind.Tailwindwasreportedto be an operation using nerve gas on a village which was known to contain suspected defectors, deserters or simply those servicemen that had followed their conscience. The thrust of the operation was to kill those Americansfoundinthatvillage.Thestorywaspoorlydocumentedandwassuretodrawarebuttalfromthe Pentagon.Noristhisthefirststorytomaketheclaim;theuseofnervegasinVietnamhaspoppedupfromtime to time following the war. The rebuttal itself was likewise poorly documented and left much to be desired. Additionally the story brought wails of protest from former highranking officials, including Kissenger and GeneralSinglaub.SinglaubfiledasuitagainstCNNinthesamemannerasWestmorelandhaddoneearlierin anotherunrelatedstory.Westmorelandlosthissuit. Remember this is the same General Singlaub that President Carter fired for speaking out against his defense strategy. It seems as if the good general didnt believe in civilian controloverthe military.Yes,thisis thesameGeneralSinglaubthathas admittedto past contact with the LaRouchians. Give the general his credit due, he did denounce the LaRouchianslaterfortheirextremeviewsandbecameaviciouscriticofthem.[12]Butthis is the same General Singlaub that was a member of Western Goals, founded by Georgia Republican Representative Larry McDonald, a top leader in the John Birch organization. This is the same Singlaub that became a director of the world AntiCommunist League Representative Larry McDonald (ACL). Past members of the ACL have included archconservatives, reactionaries, former NazisandNazicollaborators.Thiscanleaveoneonlywonderingwherethegeneralsownextremeviewsend andthoseoftheLaRouchiansbegin. WhatsatstakeheregoesmuchdeeperthantheuseofnervegasinVietnam.Firstagovernmentthatcloaks itsdocumentsinsecretispromotingrumormongeringandasenseofdistrustamongitscitizens.Thereisno needformanyofthedocumentstobeclassifiedbyeitherthemilitaryortheFBI;inmanycasesnewsclippings can be found in previously classified documents. Nor are there reasons to still classify the many documents fromWWIIinallbuttherarestofincidents.ItspasttimeforthePentagontoreleasealldocumentspertaining totheuseofgasandspecialoperationsandquithidingbehindawallofsecrecyfornationalsecurity.Butwhat isreallyatstakehereinthefilingofthosesuitsbyformerhighrankingofficialsistheimpliedthreat.Itsendsa message to the media that by god if you fail to air the official version we are going to sue and destroy you. Thesesuitsaremeanttointimidateandstiflefutureinvestigatorsintoobedienceandservenootherpurpose. ItslongpastthetimethatAmericansquitbickeringaboutthegreatredbeast;communismwasdefeated globally when the Berlin Wall fell. Even China is rapidly moving to a free market system. We dont need the divisionism from the far right cloaking their messages of hate by equating liberalism or socialism with communism,implyingliberalismisinherentlybad.ButthathasbecomeamainstayofRepublicancandidates electioneering practices. We dont need them cloaking corporatism under the banner of free markets or free enterprisewhenitsnothingmorethanwelfarefortherich.Weneedtomovebeyondideologyandlookforreal solutions.Undoubtedlythosesolutionsaregoingtoinvolveaspectsfromboththeleftandtheright.
UndertheguiseofgainingCongressionaloversightofourintelligenceapparatusesduringtheFordadministration,this Congressman Larry MacDonald helped to install the Team B initiative which vastly transformed the reports of Soviet military capability. As a result President Carter was shown a 400% greater Soviet capability that was reported to his predecessorthewhichfigure,accordingtosomeintelligenceanalysts,wasalreadyoverstated.CongressmanMacDonald methismakerplayingJamesBondintheKAL007incident.

ThelossofVietnamdidnotalterourworldwidestandinginanyway,otherthanminorincidents.Yes,itdid lead us to question the motivations behind government actions, but this is not unhealthy. Many Americans quickly moved beyond any selfdoubting, as a nation we could have done the same. We could have learned from our mistakes and turned the experience into positive action. Some positive actions didcome out of the war; the draft was eliminated, the right to vote was granted to 18 year olds, but we fell woefully short at learninganymeaningfullessonsfromtheexperience.WearestillwillingtowagewarforcorporateAmericaas we did in the Persian Gulf. We still support despots, ignoring their human rights abuses, in the name of freedom.No,thereallegacyofVietnamisoneofusingandexploitingittodivideAmericainordertogainand maintainpowerbycreatinganartificialatmosphereoffearandselfdoubt.Ithasservedthehardrightwellin thatregard. OnefinalnoteontheneedforclosureofVietnam;itsnotjusttherightwinginAmericathatuseswarto divide a country. A week before France celebrated the 80th anniversary of the end of WW I, French Prime Minister,LionelJospinaskedtheFrenchtoremember49soldiersexecutedforrefusingtofightabattleinthe 1917offensive.TheconservativesofthatcountrywereoutragedoverJospinsactions.[31]Arewestillgoingto becallingwarprotestersdraftdodgers80yearsafterthesigningoftheParisPeaceAccords?Aswenear2000 therearestillthosethatlabelClintonadraftdodger;hisdraftstatuswasmadeanissueinthe1992election campaign.Isntittimewefinallybringclosuretothisopensore?Itstimeasanationthatwesalutethosethat foughtinVietnamandalsothosethatfoughtinthestreetstostopthebloodymess.Itstimethatthevictims familiesofKentStatearegivencompensationandanapologyfortheirloss.Anditslongpastthetimethatwe shouldgivetheboottothosethatattempttouseVietnamasawaytodivideus. We could have salvaged at least some positives from the Vietnam War in formulating and conducting foreignpolicy,butthattimehaslongpassed,dueinlargemeasuretotheactionsofthehardright.Butgiventhe GulfWarasanexample,wehaventlearnedadamnthingfromVietnam.Themediastillallowedliestopassto the beat of the war drums whipping up a war frenzy. We still fought a war for the benefit of the corporate powers.And,asacountry,westillallowedoutmilitarytotesttheirnewweaponsinaneedlesswar.Nowhere inthepresswasitreportedatthetimethatTexacoownedalargestakeinKuwait.Justtrustthemanwiththe star,yeahsure. NordoesitendwiththeGulfWar;thedefensebudgettodayiscurrentlylargerthanthecombinedbudget ofthenexteightlargestmilitaries.SowhereisthesocalledpeacedividendfromthefalloftheIronCurtain? LaterinthischapterwealludetotheMideastcountrieswastingmuchoftheiroilwealthonmilitaryhardware, butpresentlytheUShassquanderedawaythepeacedividend.WeallowedReaganandhispieintheskyStar Warsprogramtorunthenationaldebtpastthethreetrillionmark.Amilitarybudgetthissizeisnothingmore than corporate welfare. Items included in the present budget include transport planes that the military has stateditdoesntwant,butthentheyaremanufacturedinGingrichsCongressionaldistrict;likewisetheships that are not wanted are made in Senator Lotts state. Bases that were scheduled to be close were reopened. CurrentlywehavemoregeneralsservingthanwedidduringWWII.Themilitaryhasspentupto$600ontoilet seatssosomedamnprimadonnadoesntgetasliverinhisbehind.Otherwasteincludesprivategolfcourses, $500hammers,andthelistisalmostendless.Agoodlistingofthiswasteoftaxpayersmoneycanbefoundon thePentagonFolliessite.[34] The one glaring omission in the military budget has been adequate funding for training, but then money spentontrainingdoesntprovidethewindfallprofitsforbusiness.Furthermanyoftheexpensesofthemilitary havebeentransferredtotheDepartmentofEnergy,suchasthecleanupofHandfordandmuchofthenuclear research,therebyhidingthetruesizeofthemilitarybudget.Onecouldeasilylopoffhalfthebudgetwithout endangering the country. Many of the active duty personnel could be transferred into Reserve or National Guard units, thereby preserving the overall strength and preparedness. For naysayers on the latter, lets remindthemofthenumberofReserveandNationalGuardunitsthatwascalledupduringtheGulfWar. Yes, I do believe we need a strong military, but we do not need to fight wars for corporate America. Its criminal in the manner in which we have conducted a massive redistribution of wealth from the poor to corporate America under the disguise of false patriotism. As a nation we need to take a close look at the defensebudgetandeliminatethecorporatewelfareinit.ItisanotherofthelessonsfromVietnamthatwehave notlearned. From a global perspective, the second most important root cause for a shift in global politics was the formation of OPEC. OPEC was the brainchild of the Shah of Iran. Then President Richard Nixon allowed and encouragedtheformationofOPECratherthancrushitinitsinfancyasawaytopropuptheShahofIran.Nixon

asvicepresidentunderEisenhowerwasoneofthefirstsupportersoftheShahaftertheBritishretreatfrom theMideast.ThiswasthetimeoftheNixondoctrine,ashelatertoldIke:TheShahisbeginningtoshowmore guts....IftheShahwouldlead,thingswouldbebetter.[9]Afterlosingthe1962Californiagubernatorialrace, Iran under the Shah was one of the few countries to receive Nixon cordially. In the 70s as the Shah faced increasing opposition at home, Nixon allowed him to not only to lead Iran but also to allow him to seek out power in the entire Mideast region. Nixon, Kissinger and Ford all thought of the Shah in strategic terms; accordingtoNixonhefilledapowervacuumintheMideast.Theyallchosetoignorehishumanrightsabuses, whichwereresponsibleforhisdownfall.ButonceagaintheShahwasfriendlytocorporateAmerica,thusthe hardrightsupportedhimandchosetooverlookhisabuses. Generally the 70s was a period of rapid economic expansion in the industrial world, if not at times and outrightboomperiod.Thecontinuedgrowthoftheeconomydependeduponaneverincreasingsupplyofoil, not only for fuel, but also as the raw material for the production of basic feedstock chemicals. The relatively cheappriceofoildiscouragedfurtherexplorationandtheproductionofenergyefficientcarsandconservation. In1973Atkins,usinghisWhiteHouseoffice,preparedasecretreportwithproposalstoavertthegrowingoil threat. One of the proposals centered about energy conservation. Nixon aide John Ehrlichman responded angrilywiththefollowingquote;ConservationisnotaRepublicanethic.[10]IntheUnitedStatesthedemand foroilranbeyondanysurpluscapacity.Itwasalsothetimeperiodthatsawadramaticshiftinthegeographic productionofoil,theUSproductionpeakedandtheMideastbecametheleadingproducersofcrude.By1971 thecountofUSdrillingrigsfelltoitslowestlevel,decliningfromitspeakyearof1955.Thecountwasdownto only a third of the level of the mid 1950s.[17] The early 1970s marked the end of an era; the end of cheap energy and a constant oversupply of oil. It marked the beginning of a new era of constant shortages and an everincreasingcostofenergy. In1969oilandenergywasquietlyslippingintotheAmericanpoliticalagenda.TheoutdatedMandatoryOil ImportProgramestablishedbyEisenhowerwaslaboringunderstress.Itsnumerousloopholesandexceptions created great opportunities for those who could capitalize on them. This quota system was creating great disparities among companies and different regions. Oil producing countries and large petrochemical companieswereeagertoseethequotasystemdoneawaywith.However,theindependentsweresteadfastin their support for the quota system, as it protected their market. In response to the growing demand for oil imports,NixonestablishedtheCabinetTaskForceonOilImportControlledbyLaborSecretaryGeorgeShultz toreviewthesystem.TheTaskForcerecommendeddumpingthequotasysteminfavorofasystembasedon tariffs. The overall response to the recommendation was negative in the extreme. Nixon chose to ignore the recommendationofhistaskforce.By1971Nixonimposedpricecontrolsonoilaspartofhisoveralleffortto fight inflation. The immediate effect of the price control was essentially to stimulate the consumption while discouragingexploration. InApril1973Nixonwasforcedtoscrapthequotasystem.Withnobarriersnowpresent,theoilcompanies immediately set about buying up any oil they could find. By the summer of 1973 imports had risen to 6.2 million barrels a day compared to 3.2 million in 1970.[18] Soon independent refiners joined into the fray, creating a bidding war driving the price of crude higher. The rising prices led to exporting nations to revise theirbuybackagreements;Libyanationalizedtheoilindustrywithinitsborders. On October 6, 1973 the Yom Kippur war broke out in a surprise attack on Israel by Egyptian and Syrian forces. Initially Israel took a heavy toll; secondly they had badly miscalculated the amount of supplies they wouldneed intheevent ofawar.Theywereusingtheirsuppliesupatanalarmingrate.Twodaysafterthe attack, Nixon told Israel they could pick up supplies in an El Al plane; as days passed, it became clear that Israels situation was desperate and they would be unable to hold on without the infusion of a massive resupply effort. Framing his orders for resupplying as anticommunism, as the Syrians and Egyptians were receivingSovietaid,NixonorderedanAmericanairliftofsuppliesonOctober14.Theinitialplancalledforthe huge C5s to land in the dark in Israel and be back off the ground before daybreak, but due to a heavy crosswind the C5s were unable to take off on time; the delay in the takeoff led to daylight landing in Israel. ThustheUSmarkingswerefullyvisibleforalltosee. On October 16 OPEC announced they were raising the posted price of a barrel of oil to $5.11, a 70% increase.[19]Thesignificantfactsoftheincreasearetwofold;first,theactionwasunilateralandsecond,the price itself. Before the Kuwait meeting of OPEC had concluded on the 17th, they announced the cutting of production levels by five percent a month until their objectives were met. The oil ministers also adopted a resolutionrecommendingthattheUSbesubjectedtothemostseverecutswiththeeventualoutcomeofatotal

haltinoilsuppliestotheUS.OnOctober19Nixonpubliclyproposeda2.2billiondollarmilitaryaidpackageto Israel.OnOctober20th,inretaliationfortheUSaidtoIsrael,theSaudisannouncedatotalembargo;otherArab nationssoonannouncedtheylikewisewerejoiningtheembargo. Nixonsannouncementofthe19thdeservesspecialmentionhereasitleddirectlytotheembargoandthe high inflation rate through out the remainder of the 1970s. On October 15th the Israelis were successful in stopping the Egyptian advance, before they could break through the Sinai mountain passes, and launched a counteroffensive. We knew at the time, as did the Israelis, that this was the turning point of the war; for all practical purposes the war was now over. Likewise, Nixon knew that OPEC would reduce or terminate oil exports if he took any provocative action in support of Israel. He was warned only days before his public announcementofthe19thbyrepresentativesfromOPECnations.WhythendidNixonpullsuchabonerand publiclyannouncetheaidpackage?Wastheresomethingmoresinisterlurkingbelowthesurfacelikepayola? OrwasitamiscuebyNixon? If it was a miscue, it was a massive one. Above all else, including being a crook, Nixon was good at one thing:hewastheconsummatepolitician.Foreignrelationswereconsideredhisstrongerqualitiesratherthan domestic issues. He knew the aid package could have been passed quietly in Congress. We know from Watergate that Nixon had a dark secretive side. He had the ability and the means to deliver those supplies covertlytoIsraelwithoutthefanfareofthepublicannouncement.Sohowwasithecametomakesuchalarge blunder?Washegivenbadintelligencefromhisadvisors?DidhesimplymisreadthewilloftheSovietsandthe Arabs?Orwashejustcaughtupinhisowntunnelvisionofthecoldwar?Whydidhechoosetocloaktheaidas afightagainstcommunismwhenthe Israelistate department on CapitalHill,otherwiseknown astheIsraeli lobby,wouldinsurepassageoftheaidpackage? Thiswriterwillsimplyattributeittothedangersoftunnelvisionandleavetherumormongeringtoothers. Likewise,theultimateoutcomewouldnothavechanged.SoonerorlatertheArabswouldhavefoundoutthat wewereresupplyingIsraelandissuedanembargo.Butthetimebetweenthenandthe19thcouldhavebeen put to good use in formulating contingency plans and taken some of the sudden bite out of the embargo. InsteadtheAmericanpeoplegotbroadsidedwithgasolinelinesinlessthanamonth. Thepricecontrolswerealreadygone.Nixonsfreezeonwagesandpriceswasadismalfailureinallbutone aspect;itdelayedtheworstinflationaryaspectsuntilhewasoutofoffice.Wageswereindeedfrozen,butthe pricecontrolshadbeenafailurefromthebeginning.Mostofthepricecontrolswereallowedtoexpirein1974, butnotthoseonoil.Originallytheyhadbeenenactedtocombatinflationin1971,whentherateofinflation was considered unacceptably high at five percent.[22] By and large the price controls were a dismal failure; manufacturerssimplyquitmakingtheoldproducts,madesomeminorchangeorreformulationandmarketed thenewproductatahigherprice.Asthe70spassed,workersbeganseeingarealdecreaseintheirpurchasing power. Cost of living escalators became a standard bargaining point worth striking over. By the end of the 1970s,theseescalatorclausesbecamethenorminbothunionandnonunionbusinesses.Thisfurtherfanned the upward spiral of inflation. Wages began to lag, price increased severely and many families saw their standard of living slipping away. One consequence was the increase in two wage households; mom went to workordadtookasecondjob.Thedeclineinthestandardoflivingforthemajorityoffamiliescontinuedinto the1990sbeforereversing. InJanuaryof1974NixonsignedtheCongressionalbillthatdroppedthespeedlimitnationallyto55dueto thecontinuingembargo.Thelawwaswidelydespised,butitdidachievetheenergysavingsthatithadbeen designedtodo.Nixonevenhadrationingstampsprintedtoholdinreserveifneeded.Thereweremanyattacks ontheobsceneprofitsthatthemajoroilcompanieswererakingin.Congressevenheldhearingsonthepoint. Thefactswerethatprofitsforthemajorshadbeenflatforover5years,buttheyhadrisenfromthe$6.9billion in1972to$11.7billionin1973andto$16.4billionin1974.[25]Today(1997figures)thoseprofitsstandat $25.8 billion for the 21 refiners that the Fortune 500 site lists.[26] Profits at Exxon alone are half of the 73 totalsat$8.4billion.Other1997profitsarelistedinbillionsareMobil$3.2,Texaco$2.6,Chevron$3.2,Amoco $2.7, Atlantic Richfield $1.7. And about the obscene profits in 1997, nary a word is uttered. The Reagan administrationsglorificationofprofitmongersanddemonizationofthepoorhasbeenverysuccessfulinthat regard. TheeffectsoftherisingpriceofcrudewentfarbeyondthedeclineinthestandardoflivingforAmerican workers. There is no other single product that is a component part of every other product in the economy, unless one considers labor or financing a commodity. Energy is expended in the manufacturing process, the transportation phase and even in powering the lights in the retail outlets. Besides being the prime energy

sourceintheUS,crudeoilistherawmaterialinthechemicalfeedstockindustry.Allplastics,pharmaceuticals, inksandsyntheticfiberswereultimatelyderivedfromabarrelofcrude.Someinkspresentlyarenowderived fromsoybeans,butnotintheearly1970s. Theoilproducingcountrieswerenowthenewkidsontheblock.Theyhadimmensewealthtospendand invest;theworld,includingtheUS,hadtolearntoplaytheirgameorsuffertheconsequences.Withtheirvast newfoundwealth,theypromptlywentonaspendingspree;unfortunatelytheychosetoinvestmuchoftheir wealth into weapons of war. This was particularly true for Iran and Iraq. The same two nations that are the most troublesome today; we armed. The other more moderate nations invested in their infrastructure and globally.ThisinvestinginforeignlandsbyoilproducingnationsthentriggeredantiArabsentiments.Thestate of Wisconsin, always a hellhole of reactionary politics, went so far as to enact a law prohibiting the foreign ownershipofrealestate. It remained for the Great Peacemaker of the second half of the 20th Century, Jimmy Carter, to start the processofbringingorder,stabilityandpeacetotheregion.ItwasCarterthroughhiseffortsatCampDavid,in twelve days of negotiations that brought Begin and Sadat together to sign a historic peace agreement. The legacyofCampDavidlivesoninthereducedconflictintheregionandthelargecontributionsitmadetoour understandingoftheprocessofconflictandthebargainingprocessbetweenstates.[35]Onceagainweseethe dangerofthetunnelvisionoftheNixonadministration.No,theagreementshavenotendedallhostilitiesinthe region,butitdidmuchtoeasethetensionsintheregion.Unfortunately Reagan and Bushhadnointerestin bringingalastingpeaceandstabilitytotheregionandthepeaceprocesswasleftwitheringinthedesertsun. InfactbothReaganandBushwereguiltyofpromotinghostilitiesbetweennationsinthatregion,supporting andarmingIraqandHusseinintheirwaragainstIran. WouldanyonecaretoventureaguessastohowmanyofthoseweaponsthatwesuppliedIraqwithwere usedagainstusintheGulfWar?It tookboldnewthinkinglaterintheOsloAccordstobringtogetherPeres, BeginandArafattosignthedocumentofproceduresonSeptember13,1993.ThiswasthesameYasserArafat that Kissinger had promised Israel in 1975 that Washington would never deal with unless he accepted UN resolutions 242 and 338.[20] The agreement produced a Nobel Peace Prize for all three men. Unfortunately Sadat has fallen to an assassins bullet from extremists from his own country. Presently Clinton is putting in mucheffortintobreathingnewlifeintothepeaceprocessaswenear2000. Stop,dearreader,andthink:whowerethewarmongershere,whowerethepeacemakers,whopromoted division in the region and who tried to make order out of chaos? Just as the hard right has used Vietnam to dividetheAmericanpeople,theyhavealsousedthecrisisintheMideasttodividetheregionintoarmedhostile camps. PresidentFordsadministrationwaslargelyacaretakeruntilthe1976elections.Duetotheseverityofthe embargo(theembargoendedin1974)andthecontinuingenergyproblem,FordproposedinJanuary1975a 10yearenergyplan.Fordsgrandplanproposedtobuild200nuclearplants,250majorcoalmines,150major coal fired plants, 30 major refineries and 20 synthetic gas plants. Not to be outdone, Vice President Nelson Rockefeller proposed a $100 billion program to subsidize synthetic fuels and other high cost energy programs.[23]Forthemostparttheseplanswerekilledbytheiropponentsduetotheirhighcosts.Someofthe projectsproposedsuchastheAlaskanPipelinedidpass.Perhapsthemostsignificantlegislationtocomeout during Fords term was the landmark legislation in 1975 that established federal fuel standards. This bill requiredautomakerstoraisethefuelefficiencyoftheaveragecarfrom13milespergallonto27.5milesper gallon. InadditiontoCarterseffortstobringpeacetotheMideast,hehadtodevelopacomprehensiveenergyplan fortheUS.IndeedCartercampaignedonhisenergyplatformandpromisedthevoterstodeliverhisplanwithin 90daysoftakingoffice.Suchatimeconstraintcausedmuchhasteinestablishinghisenergyprogram,aswell asthecreationofthenewcabinetofficeofDepartmentofEnergy.HisSecretaryofEnergy,JamesSchlesinger askedCartertorelentonhis90daycommitment,Carterresponded:Isaid90days.ImadethepledgeandI intendtokeepit.[24]OneofthelargesthurdlesCarterfacedwasdoingawaywiththeNixonandotherprice control legislation and pricing oil according to economic realities. Due to the self imposed time constraints, Carterwasnotentirelyhappywiththeemergingplan.ThisisevidentinthenotehewrotetoSchlesinger:Our basicandmostdifficultquestionishowtoraisethepriceofscarceenergywiththeminimumdisruptionofour economicsystemandgreaterequityinbearingthefinancialburden....Iamnotsatisfiedwithyourapproach.It isextremelycomplicated.[24]

Carter revealed his plan in April 1977 using a phrase he had borrowed from Schlesinger; the plan was introducedasthemoralequivalentofwar.Cartersplanincludedahostofinitiatives,butthekeystoneissue wastointroducemarketbasedpricingandreducingtheimportationofoil.Schlesingersthinkinglabeledthe pricing of domestic crude in line with the world markets as the number one priority. Carters plan was multifacetedandreliedonnosinglesourceofenergy;conservationwasalsoamajorcomponent.Inadditionhe establishedthestrategicpetroleumreservefirstproposedbyEisenhower.Healsopresidedovertheformation andguidanceofthenewlycreatedEnergydepartment. Before leaving office, the Carter administration was hit with the second energy crisis that eventually propelled the price of a barrel of crude to near the $40 mark. The new energy crisis generated widespread inflationandunemployment.Goldreached$800anounce,silverwentto$50anounce,andinflationreached doubledigits.Rememberthattherearetwoperiodsinthe1920to1938periodinwhichtheNazisgainedmuch strength.Onewasintheearly1920s,culminatingintheBeerHallPutsch.Thiswastheperiodofhyperinflation that still leaves it mark on the German psyche and policy. The socalled misery index, the sum of unemploymentandinflation,becameacampaignissue,aswellastheEmbassyhostages,andlargelycausedhis defeat in seeking reelection to Reagan. Reagan set about dismantling many of the reforms Carter had initialized, eventually even selling off the strategic petroleum reserve. He was also responsible for the transformationoftheEnergyDepartmentintonothingmorethananotherarmoftheDepartmentofDefense. AlloneneedsdoisreviewtheDoEwebpageandbudgettoseethefocusonnuclearenergyandfossilfuels,as opposedtoalternativeenergysources.[27] The present focus of the Energy Department lies mainly in promoting expensive measures that are essentiallyastatistview.Littleeffortorresourcesaredirectedtoalternativesourcessuchaswind,solarand biomass fuels. Even what money that is allocated to wind power is directed to mammoth wind farm type projectsratherthansmallscaleprojectsthatwouldbesuitableforindividualgeneration.Biomassfuelshave beenshowntobecompetitivewithfossilfuels,ifthecorporatewelfare,otherwiseknownastaxbreaksforthe fossil fuels companies, were removed.[29] Likewise wind power has been shown to be the cheapest form of energyavailableatthistime.[30]Bothofthesesourceswouldgoalongwaytoeasethepresentglobalwarming. EvenShellOiladmitsthatupto30%oftheenergyinthenearfuturewillbederivedfromalternativesources. Butthelobbyingpowerandtherelatedcampaignfundingfromcorporatesourcesarepreventingasaneenergy policyfromemerging. The current policies of the DoE will insure that large corporations will maintain control of the energy supply.Controloverthesourceofenergyequalscontroloverthemasses.Forinstance,thebeginningsofthe Industrial Revolution resulted in cottage workers giving up much of their freedoms to the mill owners. The cottageworkershadthefreedomtosettheirownhours,oftenplayinglongintothemiddleoftheweekbefore beginningwork.Mondaywasstillareligiousholidayforthem;ofcourse,aftercelebratingtheirreligionfortwo dayswithmanyheartydrinks,Tuesdaywasadayforrecoveryformanyofthem.Butwiththeadventofwater powering a central mill, they were forced to endure long hours daily.[28] This is one of the reasons why telecommutingisslowtocatchonandwillneverbeexploitedtoitsfullestextent. TheformationofOPECandtheresultingenergycrisishadfargreaterreachesthanjusthighinflationand theresultingunemploymentandindustrialrestructuringintheUS.Inalargepartitwasdirectlyresponsible forboththeriseineconomicpowerofbothJapanandEuropeandalsofortheriseofreligiousfundamentalism, especiallyintheMideast. JusthowcouldOPECandtherisingpriceofcrudecontributetotheriseofeconomiesevenmoredependent uponoilimportsthantheUSlikeJapanandEurope?Fuelsinthosecountrieshadalwaysbeenhighpriced,due tothelackofartificialpricecontrolstoprotecttheirdomesticoilprotection.Asaresultthepricerisehadless of an impact in percentage terms. But even more importantly, due to the higher price of gasoline in those countries, they manufactured fuelefficient cars even prior to the embargo. And remember the embargo was directedonlyattheUS.ThuswhenthelinesbeganformingatthepumpsacrosstheUSandthepriceofgasoline shot ever upward, Americans started looking at fuelefficient cars. The only manufacturers of high mpg cars wereforeignmakers;Detroitwasstillmakinggasguzzlers.Ittookgovernmentmandatestoraisethempgof Americanautomakersagainstawailofprotestfromthemakers.Theirclaimwasthatthestandardswereset toohighandwouldbetoocostlytoimplement,besidesthebuyingpublicdidntwantsmallfuelefficientcars. But the sales from the show room floors told a different tale; Americans were buying fuelefficient cars in droves.

Withtheirfootinthedoorwiththeirhighermpgcars,theforeignmakersturnedtheireartothebuying publicandbeganofferingnewfeaturesthatthepublicwanted.Theyalsoweresuccessfulmarketersoftheidea of quality. The Japanese makers were especially successful in this regard. With sagging sales and the new mileage standards, American makers rushed new models onto the market. Many of the new models and engineswereillplannedandunreliable,thuscontributingfurthertothepoorerqualityofthedomesticmakers in a vicious cycle. Following on the heels of the shadow of doubt enveloping the nation by the lost of the Vietnam, many began to doubt our industrial ability. With their foothold in the auto market, foreign corporationsbegancastinganeyetowardsdevelopingothermarketsintheUSsuccessfully. WiththebottomlinesinkingfasterthantheTitanic,DetroitsbigthreesetacourseonadoptingJapanese manufacturingtechniques.Someofthemethodsweretransferredsuccessfullyotherswererashfailures.The methods that failed were more a transfer of culture than methods, a culture that that had a long history of unquestioningobediencetoauthority.Americansbycontrasthaveneverhavebeenslavestopettydespotsand a have a long history of rebelling against such authority. Labor soon became the favorite whipping boy, followedcloselybygovernmentregulations.Sooncriesofunionworkrulesandhighunionwageswereheard tobethebasisoftheautomakerscrisis.Today,however,theUSautoworkerearns15%lessthanhisJapanese counterpart and 44% less than his European counterpart.[38] Meanwhile the CEOs compensation has increasedfrom93timesthatoftheaveragelineworkerinthe1981to1985periodto123timesinthe1991to 1995period.Infacttheautoworkerswagehasincreasedonly8.7%inthetimeperiodof1980to1995.Note nonunion workers have fared even worse. But the cries of overpaid union workers have not subsided. The hard right doesnt feel these workers have a right to a decent standard of living. Instead they view labor as disposablecommodity. EventuallytheautocrisisbottomedoutwiththeChryslerbailoutin1980.Thebailoutplacedconditionsof downsizingandareductioninlaborcost.Onceagainlaborwasforcedtopayforthesinsoftheemployer.It wasntlaborthatmisreadthebuyerspreferences.Itwasntlaborthatfailedtoinvestinnewequipmentand research.ArecentarticleinMechanicalEngineeringmagazineattributesthesuccessfulcomebackofChryslerto thefollowingfouritems:theformationofplatformteams,thebuildingofanewtechnicalcenter,theadoption ofanewcorporateculture,andtheimplementationofacompanywideCADsystem.Notethattwooftheseare independentoflabor:thenewtechcenterandtheCADsystem.Theothertwoinvolvedlaboronlyperipherally, astheywereprimarilyareorganizationofmanagement. This writer will only reluctantly approve of the bailout as being the right action. I do not approve of corporate welfare in any form. On the other hand, if Chrysler failed, that would have left only two domestic major automakers and an almost maker, the former American Motors Corporation. This would then have placedtheAmericanbuyingpublicatthemercyofthewhimsofGMorFord.Italsoplacedanundueburden upontheunionemployeesofChrysler.Unionsshouldtakenotethatinthefutureanyagreementrequiringa freeze or a reduction in wages and benefits should include a transfer of stock to each union worker to compensateforthelosses.Thisisentirelyreasonableinlightofthebehavioroftheautomakersinthe1990s. With record profits and exorbitant CEOs salaries the automakers are still willing to engage in antiunion practices,resultinginnastystrikes.Forinstance,thestrikeagainstGMinthesummerof1998wasprecipitated bytheremovalofstampingdiesinthedeadofnightovertheweekend,whichwasanexplicitviolationofthe unioncontract.[37] TheearlierUPSstrike,whichprecededtheGMstrikebyapproximatelyoneyearcenteredupontheunion maintaining control over the pension fund and the use of parttime workers.[36] If the company had gained controloverthepensionfund,thecompanywouldsurelyhaveraidedthefundandimposedrestrictiveclauses aimedateliminatingclaimsorgreatlyreducingthebenefitsworkerswouldreceive.Morethanonecorporate takeoverinthe1980swasfinancedbyraidsonpensionfunds.Theworkersandthetaxpayerswereleftholding thebag,theworkersreceivedreducedbenefits,ifhewaslucky,andthetaxpayergottheprivilegeofbailingout thepensionfundwhenitfailed. ThesameappliestothepilotsunionandotherunionsofNorthwestAirlines,whoagreedtowagefreezes whenthecompanywas havingdifficulties,onlytobestabbedinthebackwhenprofitsrosetorecordlevels. MinnesotasRepublicangovernor,ArnieCarlson,waswillingtooverlookthepastsacrificesoftheunionsand askedPresidentClintoninthelatesummerof1998tointercedeonbehalfofthecompany.Thankfully,Clinton showedagreatersenseofjusticeanddeclinedtointercedeallowingthecollectivebargainingprocesstowork. But even more telling of these strikes was the slanted media coverage of each. Not one case of coverage presented the union views. The GM strike was portrayed as hurting local car dealers, the UPS strike was

portrayedashurtinglocalbusinessesthatneedtoshippackages,andtheNorthweststrikewasportrayedas stranding travelers. Little was mentioned about the illegal removal of the dies from the GM plant; little was mentioned that the Northwest pilots had sacrificed raises in an effort to support the company; nor was the pensionissueexploredintheUPSstrike.Insteadthemediaattemptedtoportraythestrikersasthebadboys ontheblock,eventryingtolinkthestrikewithastabbingofanUPSdriverinFlorida. Backinthe70sthepublicprotestedtheobsceneprofitsoftheoilcompanies;inthe90sthehardrightand theircorporatemouthpiece,thepopularmedia,havedoneagoodjobofsellingthepublicontheideathatthe price of labor in any consumer item approaches 70% of the cost. They arrive at this absurd conclusion by addingupallthelaborcostsinthesubassembliesandsupplies,failingtonormalizethepercentages.However, howdotheyaccountfortheprofits,whichruntoanevenhigherpercentageoftheconsumercostthanlabor? Thefactofthematteristhatlaboronlyruns7to15%ofthecostofalmostallconsumergoods.Inthecaseof the 1994 car models, labor was only 15% of the cost to the consumer, using US Department of Commerce figures.[38]Profits,ontheotherhand,cancommonlyrunupto30%oftheconsumercost. Thiswriterfeelsthelastinglegacyofthebailoutpavedthewayformanyoftheantiunionmeasuresand outright union busting practices of Reagan in the 1980s. Additionally it led to the rise in corporate welfare whichinturnhasledtohighertaxesontheindividualandashiftingofthetaxburdenfromcorporationstothe middleclassesandthepoor. Theresults ofthe autocrisisreachedfarbeyond theautoshowroomandbuyinghabitsoftheAmerican public.ItleddirectlytotheeverincreasingdeficitinbalanceofpaymentsbetweenJapanandothercountries. Inturnthisfannedthefiresofdomesticinflationevenfurther.ThemembersofOPECbeganraisingthepriceof crude,astheirpaymentforcrudeindollarsdidntbuyasmuch,whichinturnledtohighergasolineprices.The dollarwasallowedtofloatontheworldmarket.ThedollarclimbedtonewhighsversustheJapaneseYenand theGermanMark,mainlyduetotheperceivedstabilityoftheUS.Incidentally,thisprovidesfurtherproofthat ourstatusasaworldsuperpowerwasnotaffectedbythelossinVietnam. Reagan, in another bonehead move, started to talk the dollar down rather than impose import quotes or tariffs,allinthenameoffreetrade.Essentiallythismovewasnothingmorethanadevaluationofthedollar,a practiceonewouldexpectfromthirdworldbananarepublics.Ineffectitwasadirectassaultontheoneitem that all Americans could be proud of and many other nations were envious of: the stability of our monetary system. But the fall of the dollar soon turned into a free fall, requiring the intervention of the Fed and the national banks of other countries to prop the battered dollar up. Eventually the dollar bottomed early in Clintonsfirstterm.ThelongtermeffecthasbeentoplaceAmericanbuyersofdomesticrealestateandother assetsatadisadvantagetotheforeignbuyer.TheAmericanbuyerseestheincreaseinpriceduetoinflation, buttheforeignbuyersseeanetdeclineintheprice.Sowhatifthepriceofthatacreagehasincreasedtwenty percentintermsofthedollar,butnowtheYenbuystwicethenumberofdollars,leavinganetdeclineforthe foreignbuyer. Asweapproachtheyear2000thisartificialmanipulationofmarketsbysupposedlyfreemarketershasled toanastymeltdowninAsia,ameltdownthatissonastyandinterconnectedthatitcouldleadtoaworldwide depression,butonceagaintheaverageAmericantaxpayerisaskedtobailoutthewealthy.Thistimehecan hardlyrefuse;thealternativeisfartoodarktoevenconsider.Ah,thenastylegacyoftheReaganadministration isoneinwhichtheAmericantaxpayerjustkeepsonpayingandpayingandpayingsomemore. InWealthandPovertyofNations,LandeslargelyattributesIslamfortheshiftinpowerfromtheMideast to Europe in earlier times.[32] Ironically that vast wealth of the oil producing nations may once again be squandered away due to the strong religious beliefs in the region unless dramatic changes in the regional policiesoccursoon,asitwasthatverywealththatcontributedtotheriseofthefundamentalistintheregion. ThosenationssentmanyoftheiryoungpeopletotheUStoacquireauniversityeducationtobeabletorebuild theirnationsintothemodernindustrialworld.ButjustaspeopleintheUSareresistanttochange,newculture andnewideas,sowerethepeopleintheMideast.ThesestudentsadoptedmuchofthecultureoftheUSand carrieditbackhome.AminiskirtinLAiswelleyeappealingbutinTehranthatsheresy.Thedrinkingofaglass ofwinemaybesociableintheUS,butinmuchoftheMideastitsanaffronttoIslam.JustastheReligiousRight arouseintheUSasareactiontothesocalledsexualrevolutionofthe60s,theIslamicfundamentalistsarosein theMideastasareactiontochange. AfterthefalloftheUSSR,wenowknowthereasonfortheAfghanistaninvasion.Theywereinvitedinby thepuppetgovernment,whichwasbeingattackedbytheTalibanforthepracticeofeducatinggirls.Todaythe governmentofAfghanistancontrolledbytheTalibansisthemostrestrictiveevenrequiringthewindowstobe

darkenedsoonecannotseethefemalesinside.Womentherearenotallowedtoworkorallowedoutsideofthe homeforotherthantheirroutinechores.EvenduringDesertStorm,theUSmilitarytookspecialprecautions notto offendthefundamentalistbeliefsinSaudiArabia. Forthisregion toadvance,they mustcometogrips withfundamentalism.ThisisnottochangethetenetsofIslam,but,justasintheUS,theymustdealwiththose that pervert religion to serve their own needs. Just as many of the hard right groups in the US are linked by theirIdentityreligiousbeliefs,manyoftheterroristgroupsintheMideastarelinkedbysimilarbeliefs. The rise of religious fundamentalists in the US can be traced back to the 1964 Goldwater campaign for President. Yes, fundamentalism goes further back that the Goldwater campaign, and in other sections we brieflyexploredthoselinkstothepast,butherethewriterisreferringtothereligiousrightleadershipofthe current Republican Party of the 1980s and 1990s, and those roots are firmly grounded in the Goldwater Presidentialbidof1964.Inanotherchapterwewillexplorethemembersofwhatconstitutesthereligiousright andtheirissuesmorefully.InanotherchapterwelllookattheIdentityreligionandthereconstructionists,but hereweareonlygoingtolookattheoriginsofthereligiousrightandhowitevolvedintoapoliticalforce.For nowlookatthesimilaritiesofthe1964and1992Republicanconventions:Schaflyspokeatbotharguingthat liberals were destroying America; Goldwater targeted a deterioration of family and moral values; Bush targeted traditional values. Yet even as the hard right has failed to get over the loss of Goldwater, they still servedthevotersthesamereheatedhashwithafewsprigsoffreshgarnishtothevotersagainin1992,onlyto complainaboutBushlosing. From time to time in the late 60s and early 70s, articles would appear in the popular media about the decline or death of religion. But this was a time for base building of the religious right. So what did those reporters miss at the time? Like any other institution or belief, the people coming of age during that time traditionalreligionwasquestioned.Mainstreamchurchesdidseeadeclineinchurchmembershipduringthat time.Thisisfullyevidentinthechurchattendancefiguresinthetablebelow: Year Percentage[47] 1955 49% 1956 46% 1957 47% 1958 49% 1959 47% 1960 47% 1961 47% 1962 46% 1963 46% 1964 45% 1965 44% 1966 44% 1967 43% 1968 43% 1969 42% 1970 42% 1971 40% 1972 40% 1973 40% Itshouldbenotedherethatchurchmembershippeakedinthe1950s;priortothe50schurchmembershipran atroughly45%orso.Thusmuchofthedeclineinchurchmembershipduringthe60swasmoreofareturnto normalthanadecline,althoughthefallbelowthe45%wasarealdecline.Thesenumbersgivethewriterpause inthetodaysclaimofthereligiousrightthattwentypercentofthepopulationidentifiesitselfasmembersof thereligiousright.Ifonlyfortypercentofthepeopleareattendingchurchthatmeanshalfofthosewouldbea member of the religious right. This writer finds that absurd, either that or many that identify themselves as suchhavenoideaastowhatconstitutesthereligiousright. SomeexploredEasternreligions,asdidtheBeatles.Butmanymorebecameinvolvedinthefundamentalist movement. Anyone on a campus at the time can testify to the aggressiveness of the Campus Crusaders; the term Jesus Freak became part of the lexicon, however, the vast majority of young people simply became indifferent to religion, and remain so today. The telepreachers for the most part were fundamentalists and

reachedthes r shutinsandelderly,furth herdeprivingtraditional lchurchesof f members.Q QuotingfromReligionso of A America: Butmos stmajorlibe eralProtesta antdenomina ationseither rlostmembe ersordidno otgainanysi ignificant numberc comparedto1970.TheU UnitedMetho odistChurch forinstance e,whichin19 965reachedahighof 11.1milli ionmembers s,nowrepor rts10.7millio on.TheEpisc copalChurch h,whichhadmorethan3 3,400,000 members s in 196419 967, dropped d to 3,286,000. Similar patterns are e seen in the e American Lutheran Church, the Christia an Church (Disciples of o Christ), the United Church of f Christ, the e United rians,andot thers.Statist ticsshowinc creasesof25 5%percent (duringacomparablepe eriod)for Presbyter Southern n Baptists, Se eventhday Adventists, A Jehovahs Wi itnesses, the e Christian Reformed R Church and varioussmallPenteco ostalgroups.[48] Someoft theteleprea acherslikeRo obertsonand dFalwellwit ththeir700ClubandMo oralMajority ywereableto o a attractadditi ionalfollowe ersfrommainstreamchu urches.Thus thefundame entalistsgain nedagreater rvoiceinthe e r religiouscom mmunityatth heexpenseoftraditionalchurches. Three men who wor rked for the e Goldwater campaign and a one wo oman became key p players in th he formation of the n new right. Richard R Vigu uerie copied d the names s and a addresses of f Goldwater donors available from the Library of Congress s and launch hed a d direct mail campaign. c Howard Philli ips founded the Conserv vative Caucu us and supp ported m militarisman ndSouthAfricaapartheid d.PaulWeyr rich,withfinancialbackin ngfromthe Coors f family,found dedtheHerit tageFounda ationin1973 3.[43]In197 72PhyllisSchaflyfounde edthe E EagleForum. .[39] Afterthe 1968electio on,President tNixonpaid dofftheemergingnewri ightbyappointing H Howard Phillips P Phillipstoth eOfficeofEconomicOpp portunity,giv vinghimam mandatetod defundtheleft.His m mandateincl ludedthedis smantlingof socialprogr rams.Whilec conservative esinCongres ssattempted dtogutsocia al p programs, co orporate don nors were urged u to switch their ch haritable don nations from m liberal thin nk tanks and d o organizations stoconserva ativeonesin nordertobui ildanetwork kofconserva ativethinkta anksandinst titutions.[41] R Reagan conti inued the pr ractice after r his election n, thus leavi ing us today y where the vast numbe er of experts s f featuredonr radioandtele evisionandm manyofthen newspaperc columnistsw weregroomed dbytheseinstitutions. Phillips,W WeyrichandVigueriewe ereallgoodo organizers,bu utlackedbro oadbasedpo opular a appeal. To ga ain further appeal, a they first approa ached the Am merican Inde ependent Pa arty in t the 1968 an nd George Wallaces W pre esidential bid, but were e rebuffed. In I the mid1 1970s V Viguerietapp pedintother resentmento overtheSup premeCourtdecisionsba anningschoolpray a and the lega alization of abortion. a His s efforts pro oved success sful and he was soon urging u e evangelicals toseekpolit ticaloffice.In n1974and 1975additio onalplayers enteredthefield: R Richard DeV Vos, chairman n of Amway y, and Bill Bright, presid dent of Campus Crusade e. The lattergroup publisheda blueprintforChristians towinelect tions.Bright wentonto found t theIFound nfinancedinalargepartbymillionsofdollarsfro omNelsonBu unker Itcampaign R Richard Viguerie H Hunt.[39,42] ]Thereader rsarereferre edtoRoadstoDominion nforacompletesource eoftherisea andinfluence e o ofthereligiou usrightonth heRepublica anParty.[68] Thetelev vangelistssuchasJimmy Swaggart,O OralRoberts,JerryFalwellandPatRo obertsonlike ewisestarted d intheearly1 1960stimef frameandby ythelate19 970s,theChr ristianBroad dcastingnetw workturned dincreasingly y p political. Pat t Robertson founded th he 700 Club b and made one presid dential bid in i the prima aries on the e R Republicanti icket.TheRe everendMoo onsUnificati ionChurcht tookarolein nthebehind dthescenes developmen nt o ofthenewri ght.Viguerie ehadraised moneyforM Moonsince1965,butbeg ginninginabout1975,co onservatively y, o over $80 mil llion annuall ly began flow wing into the coffers of the Unificati ion Church from f oversea as.[39] Moon n o owns TheWa ashingtonTim mes;thepaperhasbeenr reportedtob beablackho oleformoney;itsafinan ncialdisaster r. T Thenewspap perisbiased dhardright, andhasbee envirulentin nitsattacks onClinton. Falwellwas hawkingthe e C ClintonChro niclesbefore ethereelectionofClinto on,anabsurd dsetoftapes sblamingClintonfordru ugsmuggling g a amongmany yotherfalsec charges.Like ewisehehasbeenconnec ctedtoother rgroupsthat tareinvolvedintryingto o b bringdownC Clinton.[46] By 1979 Viguerie, Ph hillips and Weyrich W aba andoned plan ns to form their t own political p part ty and at the e R Religious Roundtable fou unded by Ed d McAteer, Falwell F was asked a to spe earhead a na ational Chris stian politica al o organization to pressure e Republican ns on abortio on and othe er social issu ues. This wa as the birth of the Mora al M Majority. In 1980 1 they su upported Re eagan in the Presidential race. Throu ughout the 1980s, the Mo oral Majority y

andlatertheChristianCoalitionbecamemajorfactorsinfederal,stateandlocalelections.Itwasinthistime period and with Reagans blessing that many right wing think tanks and foundations were set up to support conservativecauses.ManyoftheseinstitutesandfoundationssuchastheRutherfordFoundationarereligious innature.Leadershipinthe1990sispassingtothemoreradicalsuchasPatRobertson,GaryBrauer,Dobson andTerryRandall.Likewisesoarethestancesthereligiousrightistakingontheissues.Somememberssuch asRobertsonandDobson,makeitclearthatnothingshortofareligioustheocracyisacceptabletothemasa government.InfactRobertsonhasbeencaughtmakingthestatementthatheisgoingtocontroltheRepublican Presidentialnominationin2000.[85] Likewise many of the members of the Council for National Policy (CNP) are members of the religious right.[40]WewillalsonoteherethatonceagainBunkerHuntwasamajorsourceoffundsforthestartupof theCNP.Manyoftheindividualsaswellastheirinstitutesandfoundationsplayedalargeroleintheattemptto impeach President Clinton. There will be a whole chapter devoted to the CNP later, examining their role in policy formation and their individual members. The Rutherford Foundation provided Paula Jones with attorneysinherattempttosueClinton,acasethatthejudgeruledwaswithoutmerit.Theyasagroupwere primarilyresponsibleforthe1994RepublicantakeoveroftheHouseandSenate. The1994electioninawaywasawakeupcallforliberals.Liberalshavearecordofpoorvoterturnout.The religious right, on the other hand, has a good record of having their supporters turning out on Election Day. Onlyabouttwentypercentofvoterswillidentifythemselvesasmembersofthereligiousright;theycanhave anundueeffectontheoutcomeofanelection.Althoughthevoterturnoutforthe1998electionwaslow,itwas still higher than expected, but the liberals appear to have learned their lesson from 1994 and managed to energizetheirsupporters. They were equally responsible for the Republican losses in the historic 1998 election in which the Republicanslost5houseseatsinthesixthyearofClintonsadministration.ThelasttimethepartyintheWhite Househadgainedseatsinthesixthyearwasin1822.Falloutfromthelossesinthe1998electionhasledto GingrichresigninghisseatintheHouseandanopenbattleforHouseleadershippositions.Thereligiousright favorsthosethatareevenfurthertotherightthanNewt.Asthisisbeingwritten,itappearsthatthereligious rightfactionisprevailingoverthemoremoderatefactionoftheRepublicanParty,withLivingstonwinningthe speakerposition,buttalkofformingtheirownpartyisonceagainresurfacing. Asagrouptheirappealappearstohavepeakedandisindecline.Thiswasseeninthe1998Congressional elections, as those candidates with the greatest appeal to the religious right were the losers. Moderate Republicans retained their seats. Their loss of appeal was evident before the 1998 elections in many local races,particularlyschoolboardelections.Candidatestheyhadmanagedtoelecttoschoolboardsfacedalmost certaindefeatinreelectionandfirsttimecandidatesthattheysupportraninthestealthmode,keepingtheir religiousaffiliationssecret. Their decline is related directly to their extreme positions on social issues. Besides the obvious religious issuessuchasabortion,vouchers,andschoolprayer,theyareopposedtounionsandwelfare.Arecentsurvey ofpublicopinionhasshownforcertainthatconcernsoversocialissuesriseandfallwiththeeconomy.Thishas beenborneouttobetrueinastudymadebytheWirthlinfirm,afirmthattrackspublicopinionontheconcern overenvironmentalissues.[82]Theenvironmentalissuesarewidelyperceivedasaliberalcause,thususingit asaproxyforliberalsocialcausesisvalid.Infactmanyofthefundamentalistsopposeenvironmentalissues. This writer hardly believes that the religious right misses this point and uses it as a point to attract new membershipaswellastodemonizesocialcausesthatwouldcompetewiththem. In a survey by Lyman Kellstedt, it is reported that mainstream Protestant denominations have lost an estimated25%oftheirmembersinthelasttwentyfiveyears.DuringthesametimeperiodKellstedtreports evangelicalchurcheshaveremainedsteadyat26%ofthepopulation.[83]Giventheincreaseinpopulation,this representsalargeincreaseintotalmembership.Thisincreaseshouldnotcomeasasurpriseafteracloserlook atfiguresfromthe60s.Firstletslookattheagedistributionofchurchmembershipin1971oftheunder29 yearsofage,inwhichnexttotheCatholicsat22%,theBaptistwasthenextlargestat20%.[84]Hereweare using Baptist as a proxy for the religious right. Since the Baptist is the largest denomination of any groups makingupthereligiousrightfundamentalists,thecomparisonisfair.Likewiseletslookattheeducationlevel oftheBaptists: GradeSchool HighSchool College[84] Religion 34% 54% 12% Baptist 25% 52% 23% TotalPopulation

Andfinallyletstakealookatthe1971incomedistributionoftheBaptists: Under$3000 $3000$4999 $5000$6999 $7000$9999[84] Religion 16% 19% 20% 20% Baptist 12% 13% 16% 21% TotalPopulation Thus, the figures show that the Baptists were appealing to more young people of the time in 1971 than any otherProtestantreligion.FurthertheincomefiguresrevealthatthemajorityoftheBaptistswereinthelower incomegroups.Lookingatthefigures,oneseesthatthelowestonefourthincomegroupofthetotalpopulation containsoveronethirdofalltheBaptists.LikewisetheeducationlevelsrevealtheBaptistwouldhavelessofa chancetoadvanceeconomically.Thustheabovefiguresshowthatthefundamentalistsappealtothosethatare lesseducatedandfromlowerincomelevels.Andduringthe 1980sthenumbersinthelowerincome groups increaseddramaticallyduetotheinepteconomicpoliciesofReagan.Admittedlythisisonlyindirectsupport between the economy and membership in fundamentalist religious groups, but it is certainly strongly suggestive. Hence, your writer is of the opinion that many of the religious right recognize this point and it formsthebasisfortheiroppositiontounionsandwelfareoutofselfpreservation.Henceitseemsreasonable to conclude that the fundamentalists and the Reagan administration reinforced each other in an indirect manneraswellastheobviouspoliticalsupport. ForthosethatwerewallowingindefeatismfromthesigningoftheParisPeaceAccords,theresignationof NixonfromtheofficeofthePresidentinAugustof1974providedthestrawthatbrokethecamelsback.The resignationcameonlytenshortyearsaftertheWarrenCommissionsReportontheKennedyassassination,a reportthateventodayiswidelydisbelieved.Acrookhadtaintedthehighestofficeinthenation.SpiroAgnew, theformerVicePresident,hadalreadybeenforcedtoresignfromhisofficefortaxfraud.Nixonhimselfowed over$400,000inbacktaxes.WenowhadaPresidentthathadnotbeenelectedbythepeople.ActingPresident Gerald Fords pardon of Nixon from any further legal actions against him served only to inflame the people furtherandtoassureaDemocraticvictoryin1976.Watergatehadnowleftthehardrightleaderless. NothingexceptVietnamcouldrivalthedoubtAmericansfeltfortheircountryandgovernmentfollowing the resignation. Only Vietnam caused more division in the electorate. For the most part, the Republican CongressmensupportedtheimpeachmentprocessandurgedNixontoresign.ButNixondidnotgogracefully; he clung to the office and power like a cougar crouched over its freshly caught prey. He only resigned after beinginformedbymembersofhispartythattherewerenotenoughvotestoavoidimpeachment. ThemoodofthecountrywasglumanddisillusionedoverthecorruptionandcriminalbehaviorofNixon. TheresignationdidmanagetosidestepConstitutionalissues,however.Manypeoplesimplydroppedoutofthe system;othersbeganharboringastrongdistrustovergovernmentandpoliticians.TheoldposterofNixonwith thecaptionWouldyoubuyausedcarfromthisman?wastruerthanever.Americahadbeenconned,andthe voter began doubting the system. Voter turnout had already begun declining, but, following Nixons resignation, the decline accelerated. The decline and low voter turnout is still a problem in the 1990s, with barely50%ofthepeopleeligibletovotevoting. OthersbeganbelievingthatNixonwasjusttheonetogetcaught,allpoliticiansdoit.Theywerenaiveand neverlookedbackonNixonsrecordasoneofthedirtiestcampaignerstoeverseekoffice.TheyforgetthePink LadyinNixonsfirstcampaigninwhichheportrayedhisopponentaspinkrightdowntoherpanties.Ah,the timehonoredRepublicanstrategyofifyoucantbeatemontheissues,demonizeem.No,Watergatewasnt justdirtypolitics,itwasmuchmore.Itrepresentsthelengthstowhichthehardrightwillgotoattainandthen retain power. It should be a grave concern to every voter. Ironically Nixon would have won the election withouttheWatergateburglary. ButWatergatewasnottheonlydirtytrickNixonusedduringthe1972campaign.Nixonalsohadahandin sabotaging the primary campaign of Ed Muskie. Nixon wanted desperately to face McGovern in the general election over all other contenders. He established CREEP, the Committee to reelect the President in his reelectionbid.CREEPtookinover$60million,muchofitinviolationsofcampaignfundinglaws.Inthegeneral electionNixonhadplantsinthepresscorpsfollowingMcGoverntosabotagehiscampaignefforts.Oneofthe plants was none other than Lucianne Goldberg.[45] Goldberg is now embroiled in the center of the Clinton impeachment and has close contact with Regency Press. Hillary was right about the Vast Right Wing Conspiracyinallregardsexceptone.Thecabalisnotthatvast,itkeepsleadingbacktoasmallgroupofplayers fromtheearly1960s,liketheRegencyconnectiontotheASC.TheseinturnleadbacktotheproHitlerandNazi groupsfromthe1930s.Thecastofcharactersandtheirfundingsourcesremainrelativelystablewithonlythe occasionaladditionofnewplayersandthespinoffofnewgroupsfromtheestablishedones.

Butthehardrighthasneverbeenabletoacceptdefeatgracefully.AfterJFKdefeatedNixonin1960,they complainedandspreadrumorsofballotboxstuffing.Nixonhimselfwasunwillingtocallforarecount.Nordid theyacceptthelossofGoldwaterin1964;theyspreadrumorsofLBJbuggingGoldwatersheadquarters.Even today the hard right refuses to accept defeat. Dornan called for a recount in California, blaming his loss on illegalaliensvotingintheelection.ArmedwithsubpoenapowersheranaboutCaliforniacheckingallHispanic namesthatheclaimedtobeillegals.InhisquestforstupidityheraidedaconventofNunsandaMarinebase lookingforillegalsthathadvoted. Butthe1964GoldwaterracemarkedtheendofanerafortheRepublicansandtoalesserextentforthe Democratsaswell.AlthoughthiswriterisgreatlyopposedtoGoldwatersviews,hemustgiveBarrythecredit duehim.Goldwaterwasthelastoftheoldright.HewasthelastoftheRepublicancandidateswithintegrity.If hesupportedanissue,hedidsovigorously;ifheopposedanissue,hewasaformidablefoe.Buthewaswilling tostandontheissuesalone.HewasnotsomeonelikeNixonandReagan,whoonlysoughtpowerandtohell with the virtues of an issue. He was willing to cross partisan lines, much to the dismay of the hard right, at timesspeakingoutonanissue.Norwasheacrook. The same cannot be said of Republican leaders that followed. Watergate reveals that the only issue for Nixonwastoretainpower.ThesameappliestotheelectionofReagan.ItisnowknownforsurethatReagan wasinpossessionofthebriefingbooksthatCarterusedtopreparefortheteleviseddebates.Isthatanecho fromWatergate?OrjusthowdidtheReagancampaigncomeintothepossessionofthosebriefingbooks,ifnot bybreakinginandstealingthemorthroughtheuseofaninsidespy.DuringthecampaignReagangaveCarter hellovercancelingtheB1bomber.CarterhadcanceledtheB1infavorofthenewstealthbomberinaneffortto sparetaxpayers.BenRichheadofLockheedsSkunkWorkspreparedpaperstobriefReaganontheimportance ofthenewstealthtechnologyandtheneedtokeepitsecret.Reaganpersistedinhisrelentlessattacks.[49]Now whywouldsomeoneprofessingtobestrongondefenseissuesriskrevealingnewtechnologybycontinuingthe attacks?Onceagain,theonlypossibleanswerisnottheissuebuttheabsoluteneedtogainpower. The otherissueinthe electionofReaganasPresidentwastheOctoberSurprise.Thisissueisonce again taking on new light as more and more individuals come forward. Even some of the embassy hostages have statedthattheircaptorswereawareofrescuemissionaheadoftime.Additionallysomeofthekeymembersof theReaganadministrationwereinvolvedintheplanningandexecutionofthefailedrescuemission.Somehave suggested that these members, including Oliver North, actively sabotaged the mission. The most believable accountoftheallegationappearsinthescholarlyjournal,DiplomaticHistorybyDouglasBrinkley. ThereissomethingIwanttotellyou,Arafatsaid,addressingCarter.Youshouldknowthatin1980 theRepublicansapproachedmewithanarmsdeal[forthePalestineLiberationOrganization]ifIcould arrangetokeepthehostagesinIranuntilafterthe[USPresidential]election.[50] If these allegations eventually bear fruit, it will only show how dangerously close the US came to fullblown fascism. Certainly this would be nothing short of treason. A point for the reader to muse over here is, if the story by Arafat is indeed true, was that the reason that the Bush administration dropped the long standing AmericanobjectiontoincludingthePLOinthepeacetalks? But the allegation of criminal behavior in the Reagan campaign does not stop here. There are serious allegationsofacceptingcampaignmoneyfromMarcosborderingontreason. RepublicancampaignstrategistEdRollinshasdroppedanimportantcluetothemysteryofwhether theReaganBusherastartedin1980withanactoftreacherythatborderedontreason.Butitsaclue themainstreammediahasmisreadcompletely. In his new book, Bare Knuckles and Back Rooms, Rollins recounted a dinner he had with a top Filipinopoliticianin1991.Overdrinks,themancasuallyassertedthathehaddeliveredanillegal$10 million cash payment in a suitcase from Philippine president Ferdinand Marcos to Ronald Reagans 1984reelectioncampaign.[51] WhattheseallegationsdoshowisthatindeedGoldwaterwasthelastRepublicanPresidentialcandidatewith honor. It is the opinion of this writer that Reagan was a greater crook than Nixon was, and that future historians will bear witness to that. Indeed these allegations are only the tip of the iceberg and are only connected with the election. In fact even more criminal behavior and scandals will surface in the Reagan administrationandwillbecoveredinalaterchapter. TheresignationofNixonisstillwithusasweneartheyear2000.Itkeepssurfacingintheimpeachment attempt of Clinton. Are some of the hard right members still motivated by revenge? Would they seek to

impeachaPresidentjustbecausehiswifeservedaspartoftheimpeachmentproceedingsofNixon?Tryingto equatetheWatergateburglaryanditscoverupbytheNixonadministrationtochargesinvolvingsexwithan internisridiculous,butthatisexactlywhatmanymembersofthehardrightcurrentlywantyoutobelieve. Just as we have detailed the change in the Republican Party from the old right symbolized by Barry Goldwater to the new right symbolized by Nixon and Reagan; we will detail the changes in the Democratic Partyandthepassingoftheoldliberals.ThechangeintheDemocraticPartyismorecomplex.Illbrieflylist fourreasons:lackoffirsthandexperience,successfulimplementationofpolicy,failuretomentor,andtheanti warmovement. The60ssawthepassingoftheoldliberals,likeLBJ,Humphrey,JFK,andmanyothers.Thesewerepeople that had lived through the Great Depression; they knew hardship from firsthand experience. Humphrey was oftenfondoftellingthestoryofhiswifesellingsandwichesoncampusduringtheDepressiontohelppaythe bills. This writer places great value on first hand experience; it is a great motivator. And no doubt many SenatorsandHouseRepresentativeshaveintroducedbillstoeasethewayforothersbasedontheirfirsthand experience. The second reason of past success stems directly from the New Deal. The New Deal saw many social programscomeintobeinghelpingthepoorandtheelderly.SocialSecurityhastobeoneofthegreatsuccess stories.Priortoitsimplementation,theelderlylivedinsqualidpoverty.Presently,thanksinlargeparttoSocial Security, the elderly are one of the most wealthy groups in the general population. Many other successful policieswereimplemented.Trumanintegratedthemilitary;the60ssawthecivilrightsactsignedintolaw.JFK signedtheequalrightsactforwomen.Theminimumwageprovidedafloorforcoveredemployees.Yes,there wasstillmuchtodo,butagreatdealhadalreadybeenaccomplishedleavingmanymembersintheDemocratic Partysearchingfornewideals.Inshorttheyhadgrownfatandlazy. The failure to mentor young party members was more serious and had lasting effects. Truman acknowledgedhismentorwhenhewasfirstelectedtotheSenate. Two other new Democratic senators, Carl Hatch of New Mexico and Lewis Schwellenbach of Washington,wentoutoftheirwaytobefriendly.Hatchwasselfeffacingandbookish,Schwellenbacha real guy and a wheel horse. Among the older, veteran senators, Harry could count a half dozen from bothsidesoftheaislewhogaveencouragementand,likeHatchandSchwellenbach,theywereallfrom theWest,orwereatleastwesterninoutlook. ExtremelyimportanttoHarry,aseventsproved,wasBurtonK.Wheeler,alanky,independentminded Montana Democrat, something of a rogue, who smoked big cigars and ran the powerful Interstate CommerceCommittee. Carl Hayden of Arizona, another Democrat, had come to Congress in 1911, as a territorial representative. He took the trouble to explain some of the technicalities and customs of the Senate whichappearprettyconfusingtoanewcomer.[52] Butthementoringprocessseemedtohavestopped.Noneoftheliberalsofthe60shadbotheredtomentorup and coming party members. And as the quote from Truman alludes, there were many practices that were confusingtonewcomers. ButfarandawaythemostimportantfactorinthetransformationoftheDemocraticPartywastheantiwar movement. The protest in Chicago during the 1968 convention was the single most important event in the transformation.ThenationwatchedinhorrorasChicagoriotpoliceclubbedprotestorsinthestreet.Buteven moredamningtothepartythanthenearriottakingplacinginthestreetwasthefloorfightfordelegates.The 1964 convention likewise saw problems with the seating of delegates from Mississippi. McCarthy, the peace candidate, was at a distinct disadvantage to Humphrey, who represented a continuation of the war, being JohnsonsVicePresident.Forthebettermentoftheparty,therulesfordelegateselectionandotheroperating procedureswerechangedafterwards.Butthenetresultforthe1968electionwastocedetheWhiteHouseto Nixon and the Republicans. The change in delegate selection made it easier for candidates to buck the party line,itallowedforgreaterinputfromtheaveragepartymemberattheexpenseofpartybosses.Thenetresult following the changes was McGoverns nomination in 1972. As time went by, this has led to a change in the partyleadershipfromliberalstomoderates. Oneadditionalfactortoconsiderinthechangeofpartyleadershipiscampaignfunding;wehavealready mentioned Nixonseffortstodefundtheleft.Presentlywithoutmajorchangesinthecampaignfundinglaws, reformwillbeamerepipedream.TheSupremeCourtrulingthatcampaignfundingequatestofreespeechis

wrongheadedandleadingusdownapathtofascism.Itineffectallowstherichtobuyelections;somuchfor theconceptofequalityandonemanonevote.Once,againitstheRepublicanPartythatseekstomaintainthe presentsystem.Theyarestillengaginginattemptstodefundtheleftbyrequiringwrittenpermissionofunion memberstouseunionduesforanyissueadsorendorsements.Ballotmeasuresrequiringjustthatwereonthe ballotsinseveralstatesin1998;allwentdowntodefeat.Butnoticethehypocrisyhere,unionmoneysomehow is not equal to free speech as corporate money is. Further the Republicans under the leadership of Gingrich successfullykilledanyattemptsatcampaignfundingduringthe105thCongress. Linked directly with the antiwar movement was COINTELPRO, the FBIs illegal operation of infiltrating leftistgroupsandsabotagingtheirefforts.ItshouldbementionedthatnotjusttheFBIwasinvolved,theCIA gotintotheactwithitsOperationChaosandmilitaryintelligencegroupswerelikewiseinvolved.COINTELPRO firstcametolightinMarchof1971,whenapersonorpersonsunknownliberatedsecretfilesfromaFBIoffice in Medina, Pennsylvania. The unknown liberator then made copies of the various liberated files and leaked them to news sources. COINTELPRO and the FBI was discussed fully in an earlier chapter; here we are only interested in how it impacted the leadership of the 60s and its implications for the 1980s. Nor was COINTELPRO just confined to harassing antiwar groups; Senators and other government officials were likewise subject to its reaches. By all regards, the operation was successful, as it was ultimately was responsibleforthecompletedestructionoftheBlackPanthersandtheAmericanIndianMovement. Likewiseitwasresponsibleforsomeoftheviolenceconnectedwiththeantiwarmovementasameansto discreditthemovement.TherevelationthattheFBIwasinvolvedindomesticspyingcouldonlyratchetupthe distrustanddisillusionmentofnotonlythe antiwarmovement,but oftheentireAmericanpublic.Suddenly everyonewaswonderingifBigBrotherwaswatchingoverthem;butinkeepingwiththeearlierthemeinthis chapter,itonceagainprovidesanotheridealexampleofhowthehardrightusesdivisionisttacticstocontrol thepublic.Afterall,thewholeobjectoftheoperationwastogettheelementsofthelefttoeattheirown,pitting SocialistWorkerPartymembersagainstCommunistPartymembersandtheseinturnagainstmoremoderate liberalDemocratsandothers.Many,includingNixon,triedtoblamethecommunistsforinspiringtheantiwar movement,butthereisnoevidenceforit.Yes,theywerewillingparticipants,likemanyothergroups,buttheir influencehasbeenvastlyoverrated. InturntheseoperationslefttheantiwarmovementmorepronetoincreasethepressureonWashington with larger and more proactive methods. Much has been made of the gradual approach that the US took in Vietnamasacauseforourdefeat.However,theantiwarmovementwasnotbornovernight.Themovement was gradual in nature, reacting to each escalation of the war. In the early and mid60s, the movement was nothingmorethanafewsmallpeacefuldemonstrations.By1966theresistanceelementbecamepopularwith many burning their draft cards or mailing them back to their draft boards.[53] Much has been made of the popular urban legend of protestors spitting on returning veterans. It didnt happen. In fact the antiwar movement sought out vets and active duty service men. The movement established shops, essentially coffee shops,nearmilitarybasestoattracttheservicemenintothecause.TheVietnamVeteransagainsttheWarwas established and their members participated in many demonstrations. Their presence in demonstrations was greatly appreciated and their first hand views added evidence of the atrocities occurring that could not be refuted. Theviolentdemonstrationsthathavebecomeassociatedwiththe60sdidnotoccuruntilaftertheMarch onthePentagonin1967.Bythattimemanymembersoftheantiwarmovementhadbeeninthemovementfor severalyears;theyhadparticipatedinmanyofsilentmarchesorcandlelightvigils,onlytoseethewarincrease in intensity. Many simply dropped out, fully frustrated with the lack of success in their efforts. This view, however, was dead wrong. Although the war was escalated over this time, their actions had limited the escalation.Thousandsmorewouldhavebeenkilledormaimedforlifeifitwasntfortheirefforts. To further illustrate the effectiveness of the antiwar movement on the Nixon administration and the fascistlike steps the Nixon administration was contemplating, the following will suffice. In March 1969, AttorneyGeneralJohnMitchellannouncedthattheDepartmentofJusticewouldprosecutehardlinemilitants whocrossedstatelinestofomenttroubleoncampuses.Tocurbcriminalconductingeneral,Mitchellproposed preventive detention of dangerous hard core recidivists (you may feel free to read that as to establish concentration camps for political prisoners). Deputy Attorney General Richard Kliendienst declared, This Administrationispreparedandwillingandreadytoactimmediately.Assoonaswerenotifiedofdanger,well havetheNationalGuardinthearmoryandtheArmyontwo,four,sixhouralerts.Studentmilitantsshouldbe roundedupandputinadetentioncamp.[58]Asoutrageousasitsounds,theNixonadministrationwantedto

prosecute thought crimes. But this was not the first example of protestors being punished for their views. Hershey,theheadofSelectiveService,hadalreadybeenreclassifyingprotestorsdraftstatusto1A. HerewehavetheDoJreadytousetheConstitutionasasswipe:tohellwithfreespeech,damntherightto assemble, to hell with a trial by peers just round em up and throw em in the concentration camp; not to mentionthattheuseoftheArmytoquellcivildisturbanceswouldbeaviolationofthePosseComitatusAct.In shortNixonwaswillingtousethepublicsdisapprovaloftheprotestorstodividethecountryandturnitintoa large prison camp. The blanket arrests and imprisonment in an open field of Washington demonstrators withoutthebenefitofproperlegalproceedingsatonepointcameclosetoit.Needlesstosaythosemeasures wereneverenactedonawholesalebasis,butrhetoriccanbejustaseffectiveindividingthepublicascanforce. Most people by this time were opposed to the war, but they were even more strongly opposed to the protestors.Nixonneededthatdivisiontomaintainhisgriponpower;withoutithewouldhavelostallpower. Nixonwouldgotogreatlengthstohaveprotestorsremoved.TheQuakerswereoneofthefirstandmost consistent groups of protestors against the war. Their actions remained nonviolent through the war. But in 1969NixonauthorizedtheinfiltrationofagroupofQuakerspicketingtheWhiteHouse.Officialstriedtosetthe Quakersuponabumdrugrap,tonoavail.[79] NixonhimselfwouldengineerCOINTELPROlikeincidentstodiscredittheantiwarmovement.OnOctober 29, 1970 in San Jose, California, Nixon confronted demonstrators. From the placement of barricades and the prenotificationofreportersthattherewouldbetrouble,itwasanobvioussetup.Afterdeliveringhisspeech andexitingthebuilding,NixonjumpeduponthehoodofthelimoandflashedtheVsign.Predictablyepithets and objects were hurled at him. Nixon then exploited the incident arguing that rocks had been thrown at him.[60]Thetruthwasmostlyepithetswerehurledandthathewasnotinanydangeratanytime,butitdoes givenewinsighttohisnameTrickyDick. TheNixonadministrationhadalsoorganizedseveralfrontgroupstosupportthewar.Thepurposewasto shedpositivelightonthewarandtomanipulatethepress.OnesuchgroupwasAmericansforWinningthe Peace(AWP),agroupheadedbynoneotherthanSenatorBobDoleofKansas.[61]Oneoftheobjectsofthe AWPwastosmeartheMcGovernHatfieldAmendment,cuttingofffundsformilitaryactioninVietnamasthe SurrenderAmendment.NixonusedAgnewashismaddogtoattacktheantiwarmovementviciously,while heusedColsoninmorecovertactions. Both Johnson and Nixon almost broke down completely over Vietnam. Nixon more so than Johnson; Kissingerwouldmanytimesreplywhenawirecameinlateatnightthat:Theresnosensewakinghimup hed be incoherent. One aide to Kissinger overheard a very drunk Nixon babble: Henry weve got to nuke them.KissingerwouldoftenrepeattoothersthatWegotamadmanonourhands.[62] Just how far would Nixon go in his tunnel vision against stopping the communists in Vietnam can be determinedbythefollowingincident.InOctoberof1969,NixonorderedSACtoplaceitsnucleararmedB52s on full alert. Planes were wheeled onto the runways into take off position. No announcement of this extraordinary development was ever made. The alert lasted for almost a month before the public detected it.[59] Theobjectofthis eventwastoimpressupontheSovietsthatNixonsNovember1Ultimatumwasfor real.DoesanyoneelsegettheideathatTrickyDickwasntplayingwithafulldeck?Bluffingorthreateningthe useofnukesisnotmyideaofacomfortablethoughtorthemarkofasaneman;ratheritisthepinnacleofa madmansstupidity. Thethingeveryoneseemstohavemissedintheantiwarmovementwasthatforeveryleaderthatbecame disillusionedordiscredited,tennewfollowerswerewillingtotakeover.Themovementforalargepartwas leaderless;themasseswouldfollowtheleaderwithwhattheyviewedasthebestplan.Andthebestplanwas rapidly becoming more and more proactive and violent. If the followers saw a weakness in the over all execution of a demonstration, someone was always ready to shoulder the burden and breach the weakness; theydidntneedtoaskorwaitforinstructions,theyjustdidit.TheFBIsactionsofdiscreditingtheoldleaders wereactuallyhelpingtoputnewmoremilitantleadersinplace.Eachsucceedingleaderhadseenthefailuresof the past and the need to ratchet up the pressure if the killing was to stop. The result was a division of the country so severe that only the Civil War surpassed it. Eventually the violence increased until May 4, 1970, whenfourKentStatestudentsweremurderedandnineotherswerewounded. Americas campuses exploded in reaction to the murders at Kent and the heavy handiness of the authorities. Within weeks, another two students were killed at Jackson State. Many of the hard right stated publiclythatthosestudentsgotwhattheydeserved.Theyliketoforgetthatsomeofthosestudentswereover 700 feet away from the soldiers that fired. They forget that the National Guards men that fired were in no

danger; that they fired in unison. No other single event up till this time polarized the country into two dynamicallyopposedcampsmorethanKentState.J.EdgarHooverimmediatelystartedinformingofficialsafter KentStatethatoneofthefemalevictimshadbeensleepingaroundandthatshewasnothingmorethana whore.[54]KentStatemarkedthebeginningoftheendoftheantiwarmovement;manysimplydroppedout afterwards.Stillforothersitwasanewbeginning;theywentunderground.ButthegreatesttragedyofKent StatehasbeenthelackofapologyandanhonorablesettlementwiththosefamiliesofthevictimsfromtheOhio andthefederalgovernments.Thehardrightstillneedstokeepthewoundfestering. But Kent State and COINTELPRO reveal how the FBI deals with dissents from the left. The FBI does not, however,dealwithdissentsfromtherightinthesamemanner.Yes,theyinfiltratedtheKlanduringthe60s, but they were more likely to help form new kaverns than bring Klansmen to justice. The reality of the FBIs coverofinvestigatingrightwinghategroupswastheygavecovertaidtotheKlan,Minutemen,Nazisandother hardrightgroups.[56]InfacttheFBIformed,subsidized,armedandprotectedaSecretArmyOrganizationof former Minutemen in San Diego prior to the 1972 Republican convention to assassinate Peter Bohmer, an economics profesor.[55] Note this was before the convention was moved to Miami; the convention was originally planed to be held in San Diego. Bohmer escaped with no injury; however, his house guest was woundedinthearmwhenthegunmanshotintothehouse.TheFBIcollaboratorwaswiththegunmanwhen theshotswerefired. The Vietnam Veterans Against the War (VVAW) were set up by COINTELPRO in Miami on several bogus charges.MuchtothedismayoftheFBI,thechargesbackfiredontheFBIduringthetrialphase.Inthetrialit becameclearthatthemostviolentmembersoftheVVAWweretheinfiltratedFBIagentsandinformers.Oneof theseinfiltratorswasthemanthatattackedDanielEllsbergduringaWashingtonpeacerally.Likewisehewas implicatedinanattemptingbombingofacampusbuildingin1971.[63] In1975aCongressionalcommittee headedbyChurchinvestigatedCOINTELPRO.TheChurchCommittee recommended several changes and reforms to insure such operations could never happen again. But in the 1980thegreattrainwreckoccurred,electingReaganasPresident.Reaganpromptlysetacoursetoundoall thereforms.HepromptlyrestrictedthescopeoftheFreedomofInformationAct.HepardonedW.MarkFelt and Edward S. Miller, the only FBI agents convicted of COINTELPRO crimes. Reagan legalized much of what wasillegalunderthelawinCOINTELPRO,intheissuanceofExecutiveOrderNo.12333(December4,1981). He further broadened the power of the FBI and CIA in March of 1983 with the new Attorney Generals Guidelinesongeneralcrimes,racketeeringenterpriseanddomesticsecurity/terrorisminvestigations.[57] ThisleavesuswiththeFBIconductingCOINTELPROlikeoperationsagainstthepresentgroupsoftheleft, suchasthefeministmovement,thegaysandtheenvironmentalists,particularlytheEarthFirstgroup.Norwill theFBIinvestigatethepossibilityofanationalnetworkbehindtherashofabortionclinicviolence.Whatthe FBIsillegalinterferencehasledtoisadepletionofleadersfromtheleft.AlthoughDr.MartinLutherKingwas assassinated,theFBIwasinvolvedintryingtodiscredithimlongbeforetheassassination,goingsofarasto sendhimaletterurginghimtocommitsuicide.DoesanyonequestionDr.Kingsabilitytoleadordotheyall prefertheleadershipoftheBlackPanthers?ThatiswhereCOINTELPROhasled.Theysoughtoutthecapable leaders from the left and destroyed them. With their infiltrators promoting violence, they have discredited manygroupsfromtheleftthatwerefulfillinganeed.Meanwhilewiththeircovertaidtothehardrightwing groups, they help strengthen those groups that plaque society in the 1980s and 1990s like the Klan and the Nazis. Thepeacemovementhadlongsoughtoutotherissuestoavoidbeinglabeledasonedimensional.Theroots oftheenvironmentalmovementandthecivilrightsmovementaswellasthesocalledsexualrevolutionwere all adopted as part of the peace movement. The sexual revolution was far more than a change in sexual behavior; it was the extension of the feminist movement. Both the civil rights and feminist movements date frommuchearliertimes.Butherewelookonlyatthechangesbroughtaboutintherecentmovementsofthe 1950s and 1960s. Both the civil rights and feminist movements have affected domestic life more than any other.Issuesfrombothmovementshavecometodominatedomesticpolicyinthe1980sand1990sasthehard righttriestodismantlethegainsmadeinthe60s.EventuallythedefeatinVietnamwillpass;peoplewillforget aboutNixon,butthesetwoissueswillremain.Theblacksandthefeministsarenotgoingtogiveuptheirnewly foundrights.Thissimplefactseemslostonthecurrenthardright.Itisthesourceforthecontroversytoday;its thenewissuetodivideus. Thegainsfrombothmovementsthatwetakeforgrantedtoday,however,wereveryrevolutionaryforthe 1960sandtoreattheveryfabricofsociety.Rememberthatduringthelate1950sandtheearly1960stimes

were very much different from today. Help wanted ads in newspapers were listed by sex. There would be severalpagesofjobsformen,butonlyapartialpageofjobsforwomen,mostlynursingandsecretarialwork. Elvis was made to sing to a dog on the Ed Sullivan show because his hip movements were considered provocative. Various rock songs were censored or the words changed before they were aired over TV. This writerwentthroughapublichighschoolthatenforcedadresscode.Guyscouldnotwearjeansorteeshirts, girls had to wear dresses or skirts, unless the weather was considered inclement and then they could wear slacks.RememberthiswasMinnesotaandinclementweatherwassomethingcolderthanaboutaminustwenty degrees. Boys were told to get a haircut when it touched the ears. It was really an entirely different and repressedworldthanwhatweenjoytoday. Many may find this hard to believe today, but my junior year at college one of the dormitory counselors wasaskedtotalktooneofthefreshmangirlsthatwashavingsometraumaticemotionalpains.Itseemsthat she had met a boy at an orientation dance and that he had walked her back to the dorm. Before saying goodnighthehadkissedherinnocentlyonthemouth.Thegirlfearedshewouldgetpregnantfromthekissand wasdistraughtoverhermistakenfear.Itshardtobelievetodaythataneighteenyearoldcouldbethatnaive beforesexeducation.Itsevenhardertoacceptthattheparentsofthisgirlcouldblowitinsuchabigwayand sendthegirlawayfromhomeforthefirsttimewithouteverexplainingthebirdsandbees,butthatisprecisely whattheMasterJohnsonstudypresented:wewereprudesandwedidnttalkaboutsex,asweshallshowsoon. Thisculturealsoextendedintothelaw.Insomestatesasrecentlyastwentyyearsago,womendidnothave therighttomanagetheirownproperty;uponadivorceallhouseholdpropertywasdeemedthehusbands. Just a few years back it was still legal in seven states for a husband to rape his wife.[66] In addition, hundreds of laws overtly discriminated against women. The timeline that follows will add to the repressive nature of society as it applied to the women of the time and why the feminist movement has been so revolutionaryandhardfought. 1956 PresbyterianChurchfirstordinationofawoman. 1957 Firsttimethatequalnumbersofwomenandmenvoted. 1960 FDAapprovesbirthcontrolpills. 1960 Womenearn60centsversus$1formen. 1963 JFKsignstheEqualPayAct. 1964 CivilRightsActbansdiscriminationonraceandsex. 1967 In Griswold versus Connecticut, the Supreme Court overturns state laws prohibiting the writingofprescriptionsforcontraceptivesformarriedcouples. 1967 Californiaisthefirststaterelegalizingabortion. 1969 Californiafirststatetolegalizeanofaultdivorce. 1970 EqualRightsAmendmentreintroducedinCongress. 1972 In Eismstadt versus Baird, the Supreme Court rules for an unmarried persons right to contraceptives. 1973 InRoeversusWade,theSupremeCourtupholdstherightofapersontoanabortion.[64] Didtheintroductionofthepillplayamajorroleinjumpstartingthesexualrevolutionandthebroaderfeminist movement?Diditleadtothefreesexandpermissivenessthatthepresentrightwingersrailonabout?Forthe firsttimeinhistory,womennowhadaneasyandconvenientmeansofbirthcontrol.Upuntilthen,theyhadto rely on the unreliable rhythm method or try to persuade their boyfriend or husband to wear a condom, a hopelesstaskinmostcases. Although,thepillwasintroducedin1960,itwasslowtocatchon;acceptedculturechangesslowly.Infact birth control only gained popularity in the late 1960s and early 1970s. But by this time a great many of the boomershadmarried.Somuchforthesexualrevolution;itwasmoreofafizzlethanarevolution.Yes,there wasareportedincreaseinsinglemothers,butinthepasttheysimplyhadgottenmarried.No,theonlyvalidity tothesexualrevolutionwasthatAmericansbegantotalkaboutsex;byandlargetherewaslittleotherchange. Someofthelackofquickacceptanceisundoubtedlyduetothelegalimplicationsasoutlinedinthetimeline, buttherealexplanationrunsmuchdeeper.In1966MastersandJohnsonpublishedamassivestudydetailing the sexual habits of Americans.[65] The MastersJohnson study showed that Americans were still prudes, particularly in the midwest and rural areas. More girls were still telling their boyfriends no than were engaginginpremaritalsex.Inrealitythesexualrevolutionof1960swasmoreacreationofthemediathana fact,butmythsdiehardandsexhasalwaysbeenagoodsaleforthemedia.Thereadershouldnotethatearlyin

thischapterwehadnotedthatthehardrighthadblamedthedegenerationofmoralsonpartofacommunist plotevenbeforetherewasasexualrevolution. ItwasonlyafterthepublishingofMastersandJohnsonsstudythatthenationbegantotalkaboutsex.It wasonlynowthatpremaritalsexbegantoincrease.Itwouldtaketotheendofthedecadeortheearly1970s beforebirthcontrolbecamewidelyacceptedandused.Unfortunatelythetermsexualrevolutionhascometo symbolizethesixtiesandthefeministmovementofthetime;buttheissues,suchasequalpay,werenotgoing togoawayontheirown,buttheyalsofailedtoprovideeyecatchingheadlines. But to simply label the sixties as a period of sexual revolution would be a discredit to the feminist movement.Withtheaddedfreedomprovidedbythepill,womenbecameincreasinglyawareoftheirrightto saynoandtoassertthemselves.Theywerenolongerwillingtobebrowbeatenbysociety.TheequalPayAct andtheCivilRightsAct,aswellastheoverturningofmanydiscriminatorypracticeshelpedpavethewayfor evengreaterfreedom.Inshortthesocalledsexualrevolutionhascometoovershadowamultitudeoffeminist issues,fueledbytheincreasingnumberofwomenvoterswillingtoassertthemselves. Remember some of the very first groups to protest the war were women groups. Many of these groups were church affiliated or simply groups of concerned mothers. The willingness of the women of the time to participateinpoliticsandelectionstoreattheculture,asitwasadirectassaultontheestablishmentspower. Societysviewoftheperfectwifewasstillbarefootinthekitchenandpregnant.Uptothistime,onlyahandful ofwomenhadgainedseatsinCongress.Nonehadbeenelectedgovernors,norhadthereeverbeenacabinet head that was a woman. Not only did they vote and take an active part in protests, they formed their own politicalactiongroupstopromotetheirissues.Aswewillseealittlelaterinthischapter,itwasalsoawoman bythenameofRosaParksthatplayedapivotalpointinthecivilrightsmovement.Anotherleadingwomanof thecivilrightscampaignwasAngelaDavis.Theirwillingnesstotakeanactivepartinpoliticsthenwasthereal revolutionofthesixtiesasfarasthefeministmovementgoes.But,alas,itstillreceivesfarlessattentionthan thecatchysexualrevolution. The feminist movement then quickly broadened into other areas that had previously been denied to women.Withincreasedparticipationinelectionsbywomen,politicianscouldhardlyriskalienatingwomenas avotingblocanylonger,althoughtheRepublicanPartyseemshellbentondoingjustthatinthe1990s.The movementwentbeyondequalpayandtheearlierissuestoencompassbroaderissues.Withgreaternumbers ofwomenintheworkforce,manyissueswererelatedtotheworkforcesuchastheglassceiling,childcare,the righttoreturntothesamejobafterapregnancyandsexualharassment.Thefightforcompletecontroloftheir bodieshadtowaituntil1973SupremeCourtrulinglegalizingabortionsintheRoeversusWadecase. TheelectionofReagandealtthefeministmovementasetback,inmanycasestheyhadtorefightthesame battlestheyhadfoughtinthesixties.WiththeriseofthereligiousrightandtheirdeathlockontheRepublican Party in the 1980s and 1990s, the fight to retain the right to abortion is a constant battle. Likewise Reagan didntsupporttheEqualRightsAmendmentanditfailedthreestatesshortofpassing.EventheEqualPayAct hasfailedtoeliminatewagediscrimination;althoughithasreducedthegapconsiderablysince1963,alarge gapstillremains.Norarewomenequallypresentintheranksofseniormanagementofcorporations.Thisis not to say that the feminist movement has died; there have been gains such as the Family Leave Act, some forwardlookingcompaniesareprovidingdaycareforchildren,butanyofthegainshavecomeonlyafterahard fight. ThehardrightandtheRepublicanPartyhasdonetheirutmosttoalienatevariousfeministgroupsduring the coup to overturn the results of a legal election, otherwise termed the impeachment of Clinton. The new designated speaker after the 1998 elections, Livingston, for one has accused the feminists of hypocrisy in supporting Clinton but condemning Bob Packwood. Livingston, however, resigned his seat on the day the impeachment vote was taken: seems as if he had more than one affair himself. Somehow the difference betweenconsensualsexandsexualharassmentescapeshim.Buttheladiesarenotthehypocrites;insteadits theonesontherightasshownbythevariousmeasurestheRepublicansandhardrighthavesupported. ShortlyafterRoeversusWadetherightsoughtoutmeanstolimitabortions.In1977theHydeamendment was passed, prohibiting the use of public funds for abortions. In 1984 the Webster decision gave states unprecedentedpowertolimitabortions.DuringtheBushadministrationheimposedthegagorderrestricting anyfederallyfundedclinicfromgivinginformationaboutabortiontoclients.In1992theCaseydecisionupheld a24hourwaitingperiodandmandatoryantiabortioncounseling.In1993theBreydecisionstrippedfederal civilrightsprotectionsfromabortionclinics.ShortlyaftertakingofficeClintonsignedfiveexecutiveorders,he

reversedthegagrule,reversedthebanonfetaltissueresearch,allowedresearchonRU486,andabortionin militaryhospitals.In1994theFACEbillpassedguaranteeingtherighttoaccesstoabortionclinics. Inshortthehardrighthasbeenpromotingviolenceatabortionclinics.Countlessclinicshavebeenbombed aswellasthemurderofseveraldoctorsandtheirstaffatsuchclinics.TheRepublicanPartyhassupportedthis violenceindirectlybyrefusingtoprotecttheclinics.TheFBIhasdenied,morelikerefused,toevenconsiderthe possibility of a network of hard right groups providing aid and shelter to the bombers or their active promotionofsuchactions.LookssomewhatlikedejavuandtheabsurdbeliefofHooverthattherewasnosuch thingastheMafia,eveninthefaceofevidencethatshowsmanyoftheviolenthardrightgroupshavetakenup supportingtheantiabortionagendalikethemilitiasandtheKlan.Thisleavesuslookingatthebombingsas theAmericanversionofCrystalNightinwhichtheNazisattackedJewishbusinesses,homesandsynagogues withnofearofprosecution.Inaspeechcelebratingthe26thanniversaryofRoeversusWade,HillaryClinton stated: In the last ten years there have been 7 murders, 38 bombings, 146 cases of arson and 733 cases of vandalism.[103] Although,thesamelevelofconcentratedviolencehasnotbeenreached,itisavalidanalogy.Onaveragethatis oneactofviolencedirectedagainstabortionproviderseveryfourdays.Itisaconsiderableamountofviolence thatthehardrightlawandorderboysliketoignore.AsAmericanswejustprefertospreadouttheviolence overtime;makesitmorepalatablethatway. Gerald Thomas Straub, who worked as Pat Robertsons producer for The 700 Club, is quoted as follows regardinghowPatRobertsonwoulddealwiththosethatbombabortionclinicsormurdertheirdoctors: Here is another example of the way Robertson would mix church and state, rather than keep them separate.LetssaythataChristianthinksGodisdirectinghimorhertoblowupanabortionclinicor kill a doctor who performs abortions, and this Christian does in fact commit such a crime. In a Septemberof1984editionof The 700 Club,Robertsonsuggestedthatspecialchurchtribunalscouldbe calledupontodiscernifabelieverhadinfactreceivedanauthenticwordfromGod,whichcompelled himtobreakacivillaw.AccordingtoRobertson,ifthischurchtribunaldiddeterminethebelieverhad infactreceivedanauthenticmessagefromGodhowtheycouldreachthisconclusionwithoutissuing God a subpoena wasnt made clearthen, Robertson said, the church tribunal would have the civil authoritytoprovidethebelieverwithimmunityfromprosecution.[80] Nordoesitendhere.TheReaganadministrationwasverysuccessfulinappointingjudgesthatwereyoungand antiabortion and in politicizing the judicial branch. In Cleveland Judge Patricia Cleary denied a jailed forger appealforprobationinorderthatshemayobtainanabortion.JudgeClearystatedthatshewouldhavegranted theprobationifthejailedstudenthadagreedtohavethebaby.[81]NoteReagandidnotappointthisjudgebut itillustrateshowthatadministrationhascorruptedthejudicialbranch. Anotherissuethatarosein1998wasthatmosthealthinsuranceplansfailtocoverbirthcontrolpills,but were quick to cover the impotency drug Viagra for men. How far feminists have to travel yet to reach full equalityisbestillustratedwiththefollowingquotes: The feminist agenda is not about equal rights for women. Its about a socialist, antifamily political movement that encourages women to leave their husbands, kill their children, practice witchcraft, destroycapitalismandbecomelesbians.PatRobertson,WashingtonPost,August23,1993. Ifcombat meanslivinginaditch,femaleshavebiologicalproblemsstayingin aditchforthirtydays because they get infections and they dont have upper body strength. Newt Gingrich, Renewing AmericanCivilization,January7,1995. Iknowthisispainfulfortheladiestohear,butifyougotmarried,youhaveacceptedtheheadshipofa man, your husband. Christ is the head of the household and the husband is the head of the wife, and thatisthewayitisperiod.PatRobertson,FederalNewsService,September11,1992. Perhapsthebiggestreasonthatmuchofthefeministmovementremainsunfulfilledandcontroversialisthatit challengesthemaledominationofpower.Thischallengetomalesuperiorityshowsbestintheriseduringthe 1980sand1990softhePromiseKeepers,areligiousrightgroupthatbelievesinthesubservienceofwomen. Asthequotesaboveshow,themembersofthehardrightaregoingtodistorttheissuesandthewholefeminist movement forpoliticalgainandpower.Onceagainweseetheuseofdivisionistpoliticsputintoplaybythe right.

This writer feels that the feminists need to revive the ERA amendment; otherwise true equality in the workplaceisgoingtoremainanelusivegoal.Likewisethewriterisloathtochangeadocumentthathasserved ussowellforover200years,butIthinktheonlywaytoinsuretherighttocontrolonesownbodyistoenact anamendmentgrantingunrestrictivecontroloveronesbodytotheoccupant. Paralleling the feminist movement and the antiwar movement was the struggle for civil rights of blacks and minorities. The civil rights movement was larger and more apparent in the 1960s, oftentimes from the violence associated with it. Yes, there were inner city riots, but much of the violence was inspired from the Klan,theFBIandotherhardrightwingers.Butonceagaintheriotscameonlyafterthemiddleofthedecade. Priortoabout1965therewasnoriotsintheinnercities;thecivilrightsmovementwasdefinedbypeaceful marchesandsitins.Hardlyasinglefreedommarchtookplacewithoutaconfrontationbetweenthemarches andKlansmenorlawenforcement.TheviolenceinthesemarchesandsitinswasinspiredbyFBIinformantsor agentsandKlansman. Thiswritercanrememberwitheeriefeelingsnewsclipsofwatercannons,teargasandpolicedogsbeing used to break up peaceful marches or sitins. These tactics that are associated with third world banana republicsoccurredonlythirtyyearsagointhiscountry.EventuallyittookaPresidentialorderfromLBJforthe FBItoinvestigatethedeathsofthreecivilrightsworkers.Yetalltoomanyinthiscountryseemtothinkthatwe aresomehowmorecivilized. OnMay12,1961HooverwasinformedoftheKlansplantoattackfreedomridersinBirmingham,Alabama andthatthelocalpolicewascooperatingwiththeKlan.Theyhadagreedthatnopolicemanwouldbeonthe scene for at least fifteen minutes, that no Klansman would be arrested and that all the violence would be blamedontheNegroes.Thiswastwodaysbeforethedemonstration.Hooverdidnothing. InthebloodbathonMay14,onesquadleaderstoodoutinthemindsofthewitnesses.Hesavagelyattacked a black man. This man also beat a newsman unconscious and smashed his camera. He was armed originally with a baseball bat then a blackjack, eventually he had his throat slit requiring eight stitches. His name was GaryThomasRowe,Hooverspaidundercoverinformer.Hereceived$50dollarsforhismedicaltreatmentand another$125dollarsasabonusforservicesrendered. A1980DepartmentofJusticereviewreportsthatRowewasnomereinformer.Hehadvetopoweronany violent acts considered by the Eastview 13 Klavern. Rowe twice failed lie detector tests involving his participation in the bombing of the Sixteen Street Baptist Church in which four young girls were killed. He failedanotherliedetectortestconcerninghimbeingthegunmankillingcivilrightsworkerViolaGreggLiuzzo. Between1960and1965theFBIpaidRoweatleast$22,000.[75]HooverknewallofthisaboutRowe,likewise HooverknewthatRowehadbraggedaboutkillingablackmanin1963. Justasthefeministmovementchallengedtheestablishedpowerbasethroughtheballotbox,thecivilrights movementwasmadepossiblebySupremeCourtrulingsaffectingtheballotboxandtherealissueunderlying the opposition: loss of power. Unlike the feminist movement, there is plenty of evidence of the FBI inciting much of the violence. We have already credited the FBIs COINTELPRO program with the destruction of the Black Panthers. Likewise, the FBI can be credited with the destruction of AIM. We have also shown that COINTELPRO was used to help hard right hate groups. Once again we will take a look at a brief timeline to illustratetheimportanteventsandhowtheyrelatedtothelossofpowerfortheestablishment. 1953 TerryversusAdamswasthelastofthesocalledwhiteprimarycases.Thecaseinvolvedthe Jaybird Democratic Association in Texas. The Jaybirds was a white only political club. For years whoever the Jaybirds nominee became the partys standard bearer in upcoming elections.TheSupremeCourtruledthatsincetheJaybirdshadbecomepartofthemachinery for choosing officials, and therefore required Constitutional scrutiny, and was unconstitutionalastheyexcludedblacks. 1954 BrownversusBoardofEducationwasthecaseinwhichtheSupremeCourtoverturnedthe separatebutequalpolicyestablishedin1896inPlessyversusFergusonruling.Therulingled directlytotheintegrationofschoolsandbussing. 1955 RosaParksarrestedforrefusingtogiveupherseatonabustoawhitemaninMontgomery, Alabama.Heractionsledtothebus boycottorganized atthe DexterAvenueChurch;oneof theorganizerswasDr.MartinLutherKing. 1957 Eisenhowerordered1,000paratroopersand10,000NationalGuardsmentoendsegregation ofCentralHighinLittleRock,Arkansas.

1961 FreedomRiderstoendsegregationatbusterminals. 1963 John F. Kennedy ordered federal marshals to escort James Meredith at the University of Mississippisothathemayenroll.Twostudentswerekilledintheresultingriot. 1963 MarchonWashington,Dr.KingsIHaveaDreamspeech. 1964 CivilRightsActsigned. 1965 Selma, Alabama march over killing of a black demonstrator by law enforcement. LBJ intervenedafterGovernorWallacerefusedto.TheVotingRightsActwasadirectresultofthis demonstration. 1966 HarperversusVirginiaBoardofElections,SupremeCourtoutlawedpolltaxes. 1971 BullockversusCarterthecaseinwhichtheSupremeCourtoverturnedthehighfilingfeesfor politicalcandidatesinTexas.[67] Looking back in history from WWII neither the Democrats nor Republicans have anything to be particularly proud of as far as civil rights go. Yes, Lincoln freed the slaves, but his motivation for do so is still open to question. This began to change with Trumans integration of the armed forces. From that point on the civil rights issue has been claimed rightfully by the Democrats. Eisenhower did little for civil rights; in fact his refusaltoleadwasalmostcriminal.Infacthewasopposedtoschoolintegration.Justpriortothedecisionof Brown versus Board of Education, he held a dinner in the White House for Warren. Throughout the dinner Eisenhower wentto greatlengthexplaininghow great JohnDaviswas,whosatonthe othersideofWarren. Daviswasanavowedracist.AsWarrenwasleavingthatnightEisenhowergrabbedhisarmandtoldhimofthe southernersthatwereguests: Thesearenotbadpeople.Alltheyareconcernedaboutistoseethattheirsweetgirlsarenotrequired tositinschoolalongsidesomeovergrownNegroes.[69] Perhaps,hisgreatestcontributiontocivilrightswastheappointmentofEarlWarrentotheSupremeCourt,a decision he later regretted. Yes, he did use troops to desegregate the Little Rock schools, but only after it became clear that violence would result. This move was perhaps the cornerstone of the modern civil rights movement;itbroughtwailsofprotestfromacrossthecountryandfrombothparties.Includingthefollowing statementfromalateradvocateofcivilrights,LyndonJohnson: Thereshouldbenotroopsfromeithersidepatrollingourschoolcampuses.[70] The importance of Brown versus the Board of Education cannot be overemphasized. Following the decision, StromThurmondmastermindedtheSouthernManifestomoreformallyentitledDeclarationofConstitutional Principles. The manifesto argued essentially that the civil rights decisions by the Supreme Court were unconstitutional and part of a communist inspired subversion of America. All but three southern Senators signed the manifesto. The three Senators refusing to sign were Estes Kefauver and Albert Gore, Sr., both of Tennessee,andLyndonJohnsonofTexas.[71]Noteonceagainhowthehardrightblamedcommunismforan antiracistview. Throughoutthischapterwehavenotedwhereahandfulofpoliticianswerewillingtoforgoanypersonalor partisan gain and take the honorable action for the betterment of the nation. This is the mark of a true statesman.ItsasaddayforAmericawhentheRepublicanPartyusesthedivisionistpoliciesofthefascistto gainpower.ItsagrievousdayforAmericawhentheRepublicanPartycannotpointtoasinglememberoftheir partythatisastatesman.ItsatragicdayforAmericawhentheRepublicanPartyworshipsknownfelonssuch asNixon,andNewtGingrichanddismissesthecrimesofRonaldReagan,theworstandmostcorruptPresident todate. Both sides recognized the importance of education as the key to the future. The integration of schools quickly became a dominant issue in the civil right movements. It is also the one issue that probably did the mosttopolarizethecountry.Thissingleactionspawnedmanyfurthereventsontheroadofcivilrights.Itled directly to the integration of Ole Miss in 1962. Once again Federal Marshals had to be ordered up by then PresidentKennedytoenrollJamesMeredith.Theresultingriotlefttwodead.Theriotingwastheresultofover 2500roughnecksandracistsfromthroughoutMississippi.[70]Itleddirectlytobusingtoachieveintegrationin manycitieswhichinturnledtofurtherviolenceandpolarization.UpuntiltheCourthadorderedbusingasa means to achieve integration, the trouble was confined primarily to the south, with busing the problem was

now national. Buses in Michigan were firebombed to prevent integration as violence broke out across the country. TheMarchonWashingtonconfirmedtoeveryonethattheproblemofcivilrightswasrealandcouldnotbe swept under the rug. Kennedy received Dr. King as a guest in the White House, admittedly somewhat reluctantly.Thisinitselfwasavictoryforthecivilrightsmovement.Rememberatthistime,itwasarareevent tohaveablackpersonfeaturedonthefrontpageofnewspapers.ButitwouldremainforLBJtojumpstartthe movementwiththesigningoftheCivilRightsActof1964. The act also contained provisions for withholding federal funds from schools or organizations that had failed to integrate according to the 1954 Supreme Court case. By signing the act, Johnson knew he was also signing the end of the domination of the Democratic Party in southern politics. This is the true mark of a statesman;Johnsonsetasidepartisangaininfavorofdoingthehonorablething;contrastthistotheNixons southernstrategyinwhichheandtheRepublicanPartyexploitedtheracialstrifeinthesouthforpartisangain. Even in the 1990s the Republican Party still uses racist issues to divide the nation. Reagan used a black welfarequeentodemonizethepoor.BushusedtheWillieHortonadwithitssubtleracistmessagethatblacks were felons. In the 1998 election the Republican National Party ran ads in an Indiana Congressional race portraying the Democratic black Congresswoman in a grainy black and white picture as a friend to drug pushers.VariousRepublicanofficialsatthenationalandstatelevelopenlyproclaimedtheyweregoingtopost pollwatchersatthevotingboothsprimarilyinthedistrictswithahighnumberofminorities. InMaine,whichallowssamedayregistration,RepublicanPartyexecutiveDirector,RickTylerwasquoted: Wearepreparedtochallengepeoplewhoarenotregisteredorwhowefeelarevotingillegally,Tyler said Wednesday, acknowledging that Republicans have undertaken similar action in the past but addingthattheeffortismuchmoreintensethisyear.[72] Why would any political party in a democracy go to great lengths to make it harder for people to vote? The Republicansareacutelyawareofthefactthathighvoterturnoutworkstotheirdisadvantage.Inshort,their platformistheplatformfortheeliteinsocietyandnotfortheworkersorthepoor.Theywouldpreferthatyou stayedhomecomeElectionDay.ThiswriterbelievesasCarvillebelievesthattheyactivelytrytodisgustvoters toturnthemoff.[73]NorisCarvillealone,Diamondstatesthat: UnderlyingthetacticspromotedbytheChristianCoalitionwasthetheorythatlowvoterturnoutisthe keytowinning.Sinceonlyabout60%ofalleligiblevotersareregisteredtovote,andonlyabouthalfof thoseactuallydovote,slightlymorethan15%oftheelectoratecandetermineelectionoutcomes.[102] Themagical15%isroughlythepercentageofthereligiousrightinthetotalelectorate.Thus,asagroup,the religiousrightcancontroltheoutcomesofelections.Ofallgroupsmakinguptheelectorate,theyareoneofthe mosthomogenousintheirpoliticalviewsandhaveahigherpercentageofactualvotersthananyothergroups. Essentiallytheyvoteasablocwiththecandidateoftheirchoicereceiving70%ormoreoftheirvotes.America deservesfarbetterthantohaveitselectionscontrolledbyasmallsubsetofthepopulationandtheirextremist views.HencetheauthorinalaterchapterproposesamandatoryvotingamendmenttotheConstitutionasthe onlyeffectivewaytopreventsmallradicalgroupsfromcontrollinganelection. Nor do the Republican efforts to keep the minorities from voting stop at the polls. We have already mentionedthehilariousadventuresofB1BobDornanraidingnunneriesandMarinebasesinsearchofillegal immigrantsthathadvotedinthe1996election.Republicanshavekilledastatisticalcorrectiontotheupcoming censusthatwouldcorrectfortheundercountingofthepoorandhomeless,simplybecausethecensuswillbe usedinthereapportionmentofCongressionaldistrictsforthenextdecade;thelargestcorrectionswouldbein theinnercitiesinwhichtheDemocratsholdanadvantage.ThetargetingofcertainCongressionaldistrictsand state races in the last election and the 2000 election for support from the National Republican Party has nothingtodowiththeissuesorthecandidates;itissolelybasedongainingcontroloverthereapportionment in2000.Iftheyaresuccessfulintheirefforts,itwillbealongtimeto2010andthenationwillnotbebetterfor it.Theyactivelyopposedthemotorvoterbillandactivelyopposefurthereffortsinmailvoting,whichhasbeen asuccessinOregon. Norwilltheysupportanycampaignfundingreform.Theyweresuccessfulinplacingaballotmeasureon theCaliforniaballotin1998thatwouldhaverequiredtheunionstogettheirmemberssignedpermissionto useanyoftheirunionduesforpoliticalpurposes.ThisharksbacktoNixonsdefundtheleftmethods.Itsfunny how they believe corporations should be allowed to donate freely to political campaigns, but somehow

consider it heresy if unions have the same right. Fortunately the measure failed, but the hard right vows to placesimilarmeasuresontheballotsinthenextelections. This leaves us in the 1990s with the Republicans trying to dismantle Affirmative Action and with many memberssupportingknownracistorganizations:DavidDukeaformerKlansmanandnowaproudmemberof theRepublicanParty;PatBuchananwithtiestoantiSemiticgroups;Boob(typofullyintentional)77Barrand Senator Lott with ties to the racist white supremacy group, Council of Conservative Citizens (CCC) in which Barr was a keynote speaker.[76] The CCC claims that socialists and communists elected Abraham Lincoln. Furthertheyclaimthatinterracialmarriageisgenocide.Barrhastrieddenyingthatheknewoftheviewsofthe CCC, but those denials have proven false. Likewise both Barr and Lott along with many other GOP members havetieswiththeJohnBirchers,anotherracistgroup. The1980shasseenaspateofhardrightgroupsariseinareactiontocivilrightsthatareracistinnature, althoughmanytrytodisguisetheirracismliketheBirchers.Groupssuchastheskinheads,theAryannations, The Order and even many of the militias have arisen since the election of Reagan and have racist policies. LikewisethewidespreadhardtimesunderReagansinepteconomicpolicycontributedtotheriseofbigotry. ForexampleseethesectiononthePosseandthelatenthatredofJewsintheMidwest. Theremainingmovementfromthe60slikethecivilrightsandfeministmovementstillisadominantissue inthe1990s,butunlikethefeministandcivilrightsmovements,itwasnotamovementthatgrewinthe60s; ratheritisthedeclineofunionmembership.UnionmembershipintheUSpeakedlateinthe1950s,declined slowlyinthroughoutthe60sandthandeclinedmorerapidlyinthelate60sandearly70s.Norwasthedecline inunionmembershipconfinedtoonlytheUS;itwasaglobaldecline.Thuswehavetolookforcausesbehind thedeclineonaglobalbasis. Manyreasonshavebeenadvancedforthereasonbehindthedeclineandtosomeextenttheyareallvalid. Somewritershavesaidthattheunionswerevictimsoftheirownsuccess.Andtosomeextenttheyarecorrect; minimum wage laws, unemployment insurance, shorter hours and middle class wages have no doubt contributed some to the decline. Others have written that it was their involvement in organized crime. Yes, some unions were involved in crime and paid a heavy price during Robert Kennedys term in the Attorney General office. Lets note here that the LaRouchians have presently infiltrated the Teamsters. Others have blamed it on many of the antiunion laws and antiunion activities of Hoovers FBI. Many of labors most progressiveleadersweresimplytakenoutbytheFBIandeitherdeportedorimprisoned. Thiswriterbelievesthebulkofthedeclinehereandgloballycanbeexplainedbythechangeswithinthe workplace, as well as the changing demographics of the labor force. Since the peak in union membership occurredinthelate1950s,thedomesticandglobaleconomyhasundergonetwodramaticshiftsinaspaceof onlythirtyyears. The first factor concerns the decrease as a percentage of the total economy of industries that had been strongly organized in the past. Using the steel industry as an example of an industry that now employs considerablyfewerworkersasapercentageofthetotalworkforcethaninthepast,yes,partofthatdecline cameaboutthroughimprovedefficiencyandimports,butalargepartcamethroughthediminishedstatureof thesteelindustry.Thegrowthofthecomputerindustryforinstancehascomealmostfullysincethe1950sand todayisoneofthelargestindustrialgroups.ThegrowthofMicrosoftandIntelintomegagiantsoccurredonly duringthe1980s;priortothattimetherewasnoPCindustryforthemostpart.Oneneedlooknofurtherthan thechangeinthemakeupoftheDowJonesIndustrialaveragetoseethediminishedstatureofindustriesthat had been heavily organized in the past. For instance, International Harvester was replaced with Disney. The growthoftheservicebasedbusinesseshascomeaboutonlysincethemid1970s. Wefirsthadashiftawayfromanindustrialbasedeconomytoaservicebasedeconomy;traditionallythe servicebased businesses have proven difficult to organize. Secondly during the 1980s we saw a massive restructuringandrelocationofindustrialfirms.Manyoftherustbeltindustriesmovedtothesouthandright toworkstates.TheCorporationforEconomicDevelopment,aprobusinessthinktank,reportedin1996that the 21 right to work states posted below average grades in all three categories: economic performance, businessvitalityanddevelopmentcapacity.Infactthe10mostheavilyunionizedstatesoutperformedthe10 leastunionizedstates by nearlysevenpercent.In thedevelopmentcapacitycategory,the10 most unionized statesoutperformedthe10leastunionizedby61%.Developmentcapacitywasdefinedasastatescapacityfor future growth and recovery from economic adversity.[89] The steel industry for example, went from large centralizedfirmstosmallerminimills,oftenlocatedinthesouth.

Secondly during the 1980s we had a massive increase in the use of part time workers, temps and independentcontractors.Byandlargethemovetolessthanpermanentworkerswasaploybymanagementto skirtthelawsgoverningfulltimeemployees.Likewiseitwasaidedbythedismaleconomicconditionsunder Reaganomics.Itwasaidedbythelackoflawsatfirstandthenlaterbythelackofeffectivelaws.Manyfirms todaycanhiretempsyearround,skirtingmanystatelawsthatprohibittheuseoftempsformorethanayear, bylayingthemoffforaweekortwoduringaslowperiodandthenrehiringthem.Presentlymorethan25%of thelaborforcearehired astemps or independentcontractors or,interms ofrealnumbers,some 25million people.[92] Such unscrupulous business practices have become all too common in the 1980s and 1990s. Reports of sweatshops,violationsofchildlaborlawsandmanagerschangingtimecardsorpunchingemployeesout,but forcingthemtostayoverandfinishajob,havebecomealltoocommonplaceinthenewstoday.Nordoesitstop withjustabusivelaborpractices. Thelawsdesignedtoprotectwhistleblowersareineffectiveandthewhistleblowerissoonunemployed. JustasinthecaseinMinnesotainvolvingthreewhistleblowersattheKochrefinery.[88]Thecourtshavesided with the corporations and have ruled that older workers may be fired if they are more highly paid than youngerworkers,voidingagediscrimination. AnotherareaofconcernisthewholesaleviolationsofOSHAandEPAlaws.Itsoftencheapertopaythefine whencaughtthanitistocomply.Doesanyonerememberthenewsreportsofthecoalminersthatwerekilled in a gas explosion? The owners of the mine failed to provide adequate ventilation to remove the build up of methane.Yet,insteadofbeingtriedformurder,theCEOsreceivedlittleinthewayoflegalpunishment.This writer can recall only one incident in the past of CEOs facing murder charges for gross violations of OSHA regulations. That was the deaths of workers from cyanide in a Chicago area photoshop recoveryrecycling businessintheearly1980s. Theproblemisthelaborlawsneedtohaveteethputintothem.Buttherealproblemherehasbeenthat corporationshavesucceededinusingthecourtstooverturnlaborlawsthroughoutthehistoryofthiscountry. OneofthehardrightsfavoriteorganizationsistheFederalistSociety,agroupdedicatedtobrainwashinglegal studentsintopromotingcorporatism.Hereistheirowndescriptionofthemselvesliftedfromtheirwebsite. Lawschoolsandthelegalprofessionarecurrentlystronglydominatedbyaformoforthodoxliberal ideology, which advocates a centralized and uniform society. While some members of the academic community have dissented from these views, by and large they are taught simultaneously with (and indeedasiftheywere)thelaw. TheFederalistSocietyforLawandPublicPolicyStudiesisa groupofconservativesandlibertarians interestedinthecurrentstateofthelegalorder.Itisfoundedontheprinciplesthatthestateexiststo preservefreedom,thattheseparationofgovernmentalpowersiscentraltoourConstitution,andthatit isemphaticallytheprovinceanddutyofthejudiciarytosaywhatthelawis,notwhatitshouldbe.The Societyseeksbothtopromoteanawarenessoftheseprinciplesandtofurthertheirapplicationthrough itsactivities. This entails reordering priorities within the legal system to place a premium on individual liberty, traditional values, and the rule of law. It also requires restoring the recognition of the importance of thesenormsamonglawyers,judges,andlawprofessors.Inworkingtoachievethesegoals,theSociety hascreatedaconservativeintellectualnetworkthatextendstoalllevelsofthelegalcommunity.[87] Note the use of code words such as traditional values, a euphemism for the religious right, and the outright vindictivenatureoftheentiredescription. Even before the transformation from an industrial to service economy was complete, the second more massivechangetookplacechangingtheglobaleconomyforever.Thatchangeiseasytodate;ittookplacein the1980swhenIntelannouncedtheavailabilityofthe286chip.Wenowhadthedawningoftheinformation age, leaving behind the industrial age. Once again unions are facing the organization of businesses that have been traditionally hard to organize. The computer and electronic business have relied on temps and independentcontractorsformuchoftheirlaborforce,furthercomplicatinganyorganizationalefforts.Infact doesanyonerecallthenewsreportsofseveralRussianprogrammersbeingheldinavirtualstateofslaverya fewshortyearsback? The International Confederation of Free Trade Unions Union Rights Survey has identified the following abusesandproblemsofunionsintheUnitedStates:

TheslownessofproceduresundertheNationalLaborRelationsBoard Intimidationbyupto25%oftheemployerswhofireemployeestryingtoorganize.(Thereportcited theclosurebySprintofasubsidiaryeightdaysbeforeaunionelection.) Double standards that allow employers to use company time and premises, but not unions in organizationalcampaigns. Longdelaysbecauseoffrequentchallengesbyemployersofunionvictories. Restrictionsonpartialstrikes,intermittentstrikes,secondaryboycotts,otherformsofmutualaidand variousonthejob activities;whileemployerscanimposelockouts,transferworkto anotherjobsite, andhirenonunionworkers.Thewriterwilladdtheuseofcourtinjunctionsbyemployerstolimitthe numberofpickets.

Exclusionofalargenumberofworkers.[90] Inanaverageyearsome10,000workersarefiredwhileattemptingtoorganize.Antiunioncampaignsarenow commonplace in all private sectors. For example the Communication Workers of America has reported that over 50,000 workers were interested in organizing in one year, but, due to union busting practices of the companies involved, only 16,000 were successful. One such company was Harper Collins Publishers in San Franciscothatrananastyantiunioncampaign.ByusingtheNLRBtodelaytheelectionsevenmonths,inwhich time many of the employees had quit in disgust. Companies are spending large sums to prevent their employees from exercising their right to organize. They are hiring specialists to come in and disrupt the organizingeffortsortoprotectscabs. But if the shifts in the economy and adverse legal rulings were not enough, the demographics of the workplaceaddedfurthertothewoesofunioneffortstoorganizedworkers.Currentlymorethan70percentof the workforce is under the age of 45.[91] For the most part these people have no idea of the past abuses of laborlikeolderworkersdo.TheyhavenoideaofwhatkindofsafetyhazardsexistedbeforeOSHA.Theyhave spent their entire working life protected by such social programs as the minimum wage, unemployment insurance,andahostofothersocialprograms. Likewise they dont have any respect for the picket line and the issues. Since 1982 there hasnt been a single year in which there was a strike involving over 1,000 workers; from 1950 to the 1980s the average numbers of strikes with over 1,000 averaged approximately 300 per year. Secondly the workers that have enteredtheworkforcesincethe1980sandeventhelate1970shaveonlyhadexperiencewithaneconomyin verybadshape.ItwasonlyaftertheelectionofClintonin1992thattheunemploymentratedroppedtonormal fullemployment.TheRepublicans,includingBush,weretryingtopeddletheideathat5%unemploymentwas reallyfullemployment.Howsoontheyforgetthat,evenunderNixon,a5%rateofunemployedwasindicative ofseriouseconomicproblems.Thusmanyoftheyoungerworkershavecometoacceptlowwagesandabusive workingconditionsforafalsesenseofeconomicsecurity. The complexity of the decline in unions can be seen in the Union Triangle, the AFLCIOs strategy for renewing unions. One leg of the triangle is the recruitment and organization of new members, including recruitingoncollegecampuses.Thesecondlegisbargainingandrepresentingcurrentworkersinterests.The finallegislegalaspectsandlobbyingefforts. Nottodetractfromtheenormousgainsmadebythefeministandcivilrightsmovements,butthedeclinein union membership has left perhaps as great a change on the domestic landscape. With the decline in union membership has come a decline in the living standards of a large segment of America. In 1973 the average wagewas$13.89(in1995dollars),butin1995theaveragewagehaddeclinedto$12.26.Thisisadeclinein buyingpowerofroughly12%.Since1980when84%oftheworkersreceivedapension,by1995thefigurehad droppedto52%.Nordoesthefutureholdmuchpromiseforimprovement,sixoutofthetenjobsprojectedto be in the greatest demand by 2006 have average wages below the current poverty line.[93] The unionized worker in 1995 earned on average $640 a week; the nonunion worker earned only $478. Surveys and researchamongbusinessownersandmanagersthathaveexperiencewithbothunionandnonunionworkers haveshowntheypreferunionworkers,astheyarebettertrainedandproducebetterqualitywork,afactthat corporatepropagandistsliketoomit.[94] ThisleavestheAmericanworkerasthepoorestpaidandmostabusedworkerintheindustrialcountries.A probusinessgroupinitsWorldCompetitivenessReportstatedthattheUSistopsamongtheindustrialnations becauseAmericansareworkingmoreforless.AnaverageAmericanworkerworks200hoursmoreinayear

thanhiscounterpartinEngland,SwedenandFrance,and400hourslongerthanhisGermancounterpart.[95] Norarewagesandhourstheonlydifference.Inearly1998theFrenchlorrydriverswentonstrike,oneofthe bargaining points that they gained was the ability to retire on a full pension at age 55. Workers in most WesternEuropeancountriesreceivefiveweeksofvacation,anexpandedlistofpaidholidaysincomparisonto his American counterpart and medical and old age benefits that an American worker can only dream about. Additionally the European worker has a much easier time of obtaining disability benefits; in the US the corporatethugswantyoutoworkuntilyoudropdead. Unions strengthen the economy by raising wages and benefit levels for all workers. With better trained workersunionshelpanationtostaycompetitive.Thiscanbeshowninthefollowingtable. Wagesin TradeBalance Country Percent Unionized ComparisontoUS inBillions[89] Germany 33 +85% $14.45 Sweden 83 +24% $3.20 Norway 56 +42% $1.80 Canada 36 7% $18.00 Japan 25 +38% $59.20 ThisdeclineinunionmembershiphasledtothestratificationofAmerica.Presentlynoindustrialnationisas dividedalongeconomiclinesasistheUS,evenGreatBritain,withalonghistoryofnoblesandlords,hasamore equitable division of wealth. Figures from the Federal Reserve for 1989 show that the wealthiest 1% of householdsownapproximately40%ofallthewealth,contrastedwithonly18%inGreatBritain.Thepoorest 20%ofhouseholdsreceiveonly5.7%oftheaftertaxincome,whilethetop20%receiveover55%oftheafter taxincome.[96]Certainly,thereisplentyofwealthtobeshared.The50corporationsoftheFortune500with the largest profits reported profits totaling over $184 billion.[97] To put this in perspective, that is enough money to provide 7,360,000 people, or approximately a little over 25% of the population, with an annual income of $25,000. As those figures show, America can certainly afford to take care of all its citizens. The questionisnotoneofbeingabletoaffordit;itsoneofwantingto.Noristhereanyreasonthosecorporations cannotaffordtopaytheiremployeeswell.Withprofitsofthatmagnitude,thereisnoneedtocutbenefits,to downsize or in any other way to abuse the employees, but every last one has done just that in the past few years. Reagansdummysideeconomicsandhisdemonizationofthepoorhaveledtoasituationthatisunhealthy and unstable. It can only lead to social unrest if the trend is not reversed before a serious downturn in the economy.Thiswriterhasobservedanalmostvisceralhatredofthepoorandwelfarerecipientsamongmany bluecollar workers, as well as those workers in the upper income brackets. The one successful aspect of Reagansagendawashispromotionofclasshatred. ThisleavestheUSinanunstablestate,astatethatcannotbeallowedtocontinue.YettheRepublicanshave replacedwelfarewithworkfare.Underworkfareclientscanbeforcedtoworkforlessthanthepitifulminimum wage of$5.25anhour;refusaltodo sowouldresultinthelossofallbenefits.Failuretocorrectthepresent situation beforethe economy goesintoaseriousdownturnisonly goingtoleadtoserioussocialunrest,the likesofwhichthiscountryhasneverseen.ThesearepreciselytheconditionsthatallowedtheNazistoseize power in Germany. Hitler seized power during an economic depression (actually an anemic recovery was somewhatunderway),unemploymentwasstillhighandtherewaslittleeconomicequality.Thisiswherethe economicpolicyoftheRepublicansisleading. Beforeconcludingthischapter,thewriterfeelscompelledtodismissthemythofthe60sbeingadecadeof violence.Yes,threesummersweremarkedwithriotsintheinnercities,butthentherehavebeenriotsinthe 1980sand1990saswell:theLAriotinresponsetotheRodneyKingverdict,anotherinNewYorkCityover policebrutalityandblackimmigrantsandothersinFlorida.Yes,therewerewidespreaddemonstrationsand marchesbythecivilrightsandantiwarmovement,butforthemostparttheywerepeaceful.Theleadersof thosedemonstrationsandmarchesshouldbecommendedfortheirefforts.Andwehavealreadyshownthatin many cases of violence associated with both movements that it was inspired by the FBI in an attempt to discreditthewholemovement. Allmovementsspinoffmoreradicalandviolentgroups,asgoalsarenotachievedasfastastheyhadhoped for. The movements from the 60s were no different. The Weathermen were a violent offshoot from the SDS; theywereinvolvedinsomeratherminorpipebombings.Butthe60sdidnthaveanygroupsthatwerefounded asviolentandradicalasthe80s.The60sdidnthavemilitias,theOrder,orthePosseComitatusthatpromoted

violencefromthestart.Nordidthe60sseetheWorldTradeCenterbombed,nordidthe60shaveanOklahoma Citybombing.The60sdidnthavetheviolentgroupslikethegroupsspawnedinthe80sthathavewidespread disrespectforauthority,inparticularthefederalgovernment.Thegroupsfromthe60ssawthegovernmentas partofasolutiontoaproblemforalargepart,notastheproblemasthehategroupsfromthe80sprofess. Therewere nosuchthingsascarjackingsinthe 60s,norwas thereroadrage,norwerethereany SWAT teamsthataresowidespreadtoday.Infactifonelooksatthecrimeindex,wefindthatthefiguresfrom1976 (thelastdateavailable)werelowerbyapproximately2,500,000than1995.Ifonelooksatthefiguresinterms ofcrimesper100,000,thenforthefirsttimesince1976thecrimeindexdroppedbelowthe76figurein1995. What the crime figures in the time span 1976 to 1995 does show, however, is much higher figures during periods when unemployment was high. The numbers peak with some lag from the severe recession in the beginning of the 80s, only to rise later in the decade after the economy went into another recession. Yet the hardrighthammersawayatlawandorder,buildingmoreprisonsandprovidinglocalpolicewithmoreassault weapons,allthewhileoverlookingpreventivesocialprogramsthataremuchcheaperinthelongterm. No,dearreader,the60swasnotadecadeofviolence;the80sweremoredeservingoftheterm.Butthen themediahasnodesiretoreportthetruth.Violence,justassex,sells,particularlyifyoucanconnectitwiththe liberalsortheleft.

Notes
[1] Keepinmindthatthewriterisusingasomewhatdistorteddefinitionforthedecadestobeconsistent withwhatiscommonlyreferredtoasthe60sor80sbyothers.Inbothcasesthiswriterisextending thedecadesuntilafundamentalshiftinpowerorpublicattitudeoccurs.Thusthe60sextendsfromthe electionofJFKuntiltheresignationofNixon.Likewisethe80sextendfromtheelectionofReaganto theelectionofClinton.Moreproperlyotherwritersandmyselfshouldbeusingthe60sgenerationor era,butevenherethetimeunitimpliesdecade. [2] One wonders if it was not by sheer numbers alone of the baby boomers that overall as a group they favor the value of shared resources, after all they have had to compete for those resources from the delivery room to the morgue. The boomers have had to compete throughout their lifetimes for scare resources, educational facilities, jobs, affordable housing, to name but just a few. Meanwhile the GenerationXershaveneverhadtoshareresourcesorcompeteonthesamescale. [3] http://www.ratical.org/ratville/JFK/FRUSno167.html [4] http://www.ratical.org/ratville/JFK/FRUSno263.html [5] http://www.coha.org/ [6] MenoftheFarRight,RichardDudman,PyramidBooks,1962. [7] ChicagobusinessmanandformerFBIagent,WilliamCarol,formedtheAmericanSecurityCouncil(ASC) in1955.FiveformerFBIagentsaremembers;theorganizationgivestheimpressionthattheyhavefull accesstoFBIfiles.TheASCwasformedtoprovideaprivatelistofthosetheydeemedtobealessthan friendly to free markets (that can be read as those that had held membership in leftist groups or unions)toprovidecorporateAmericawithameansofcheckingthebackgroundofjobapplicants.The blacklistwasstillinoperationin1962andthelistcontainedoveronemillionnames.SeeMenofthe FarRight,p126. [8] MenoftheFarRight,p126. [9] ThePrize,DanielYergin,Touchstone,1992,ISBN0671799320,p566. [10] ThePrize,p591. [11] AbuseofPower,StanelyKutler,TheFreePress,1997,ISBN0684841274,p3. [12] LyndonLaRouche,DennisKing,Doubleday,1989,ISBN0385238800,p190. [13] OneHellofaGamble,AleksandrFursenko,TimothyNaftali,W.W.Norton&Company,1997,ISBN0 393040704. [14] Truman,DavidMcCullough,SimonandSchuster,1992,ISBN0671456547,p270. [15] DeterringDemocracy,NoamChomsky,HillandWang,1992. [16] DeterringDemocracy,p166. [17] ThePrize,p589. [18] ThePrize,p591. [19] ThePrize,p606. [20] IsraelsSecretWars,IanBlack,BennyMorris,GroveWeidenfeld,1991,p337.

[21] Keep in mind there is far more evidence to support each of these reasons and the conclusion drawn thanwhatI canprovide here.Inabooksuchasthis,whichis primarilyasurveyoftheoveralltopic, thereisnotroomformuchdetail.Indeedeachofthereasonslistedareworthyofacompletebookif notvolumes;alaswehavebutasinglechaptertocoveritall,achapterinwhichthewriterstruggledto keep from becoming bloodily long and risk his reader losing interest. The object here is not in providing excruciating detail, but rather to provide enough documentation to prove the points and issuesraisedandtostimulatethereadersinterestsandthinking. [22] ThePrize,p659. [23] ThePrize,p660. [24] ThePrize,p662. [25] ThePrize,p658. [26] http://www.pathfinder.com/fortune/fortune500/ind20.html [27] http://www.doe.gov [28] TheWealthandPovertyofNations,DavidLandes,W.W.Norton,1998,ISBN0393040178,p207 209. [29] http://www.energy.ca.gov/development/tax_neutrality_study/index.html [30] http://www.igc.apc.org/awea/faq/cost.html [31] FrancesPrimeMinisterstirsupadisputeover mutiny fromWorldWarI, Star Tribune,November8, 1968. [32] TheWealthandPovertyofNations. [33] http://www.weberman.com/monica.htm [34] http://www.taxpayer.net/PentagonFollies/toc.htm [35] http://sunsite.unc.edu/sullivan/CampDavidLegacy.html [36] http://207.25.71.25/US/9708/08/ups.strike/index.html [37] http://interactive.cfra.com/07/27/50470.html [38] http://www.uaw.org/bargaining/barginfo.htm [39] http://www.acluwa.org/pubs/religiousright/3.shtml [40] Two John Bircher leaders, William Cries and former Rep. Larry McDonald (RGA), who was the chairmanoftheJohnBirchSocietyatthetime,formedtheCouncilforNationalPolicyin1981.Seethe chapterontheCNP. [41] http://www.publiceye.org/magazine/culwar.html [42] TheHuntfamilynamepopsupinalmosteveryhardrightgroup,mostoftenasasourceoffunds.The Hunts were involved in the American Security Council, the John Birchers, Pat Robertson and many others.Perhaps,themostdamningofallofHuntsassociationwashisorganizingaparamilitaryforce dubbed the American Volunteer Group which intended to use death squads to eliminate political opponents.BunkerHuntisalsoamemberoftheOrderofSaintLazarusagroupthatcanbetracedto LadyHamilton,thehostoffleeingRudolphHessinBritain.Seehttp://www.isrp.org/obunk.html [43] TheHeritageFoundationhadagreatimpactontheformationoftheReaganadministrationformation ofpolicyandeventodayisnumberonequotedthinktankinthenewsmedia. [44] LordshearargumentsonPinochet,KevinCuller,BostonGlobe,November5,1998. [45] http://cnn.com/ALLPOLITICS/1998/01/25/tripp.goldberg/ [46] http://www.salonmagazine.com/1998/03/cov_11news.html [47] ReligionsofAmerica,EditedbyLeoRosten,Simon&Schuster,1975,p434. [48] ReligionsofAmerica,p442. [49] SkunkWorks,BenRich,LittleBrown&Company,1994,p72. [50] http://www.consortiumnews.com/archive/lost10.html [51] http://www.consortiumnews.com/archive/lost6.html [52] Truman,p213214. [53] TheWarWithin,TomWells,UniversityofCaliforniaPress,1994.Thisisthebestoverallbookonthe antiwar movement that I have found. It may be perhaps a bit biased to the right, but its biggest shortcoming is its glaring omissions. For example, the author only allots two paragraphs to COINTELPRO. Nor does it cover the beginnings of the antiwar movement. Thus the Port Huron document or the Berkley Free Speech movement are not mentioned or only mentioned in passing. It doesprovide,however,areasonablygoodcoverageofthemovementfrom1965to1975,focusingon

[54] [55] [56] [57] [58] [59] [60] [61] [62] [63] [64] [65] [66] [67] [68] [68] [69] [70] [71] [72] [73] [74] [75] [76] [77] [78] [79] [80] [81] [82] [83] [84] [85] [86] [87] [88] [89] [90] [91] [92] [93] [94] [95] [96] [97] [98] [99] [100]

theeffectsofthemovementontheJohnsonandNixonadministrationsandthelargerdemonstrations. TheWarWithin,p424. http://www.infoasis.com/people/stevetwt/Third_World_US/COINTELPRO70s_WAH.html http://connix.com/~harry/90sfbi.htm http://www.infoasis.com/people/stevetwt/Third_World_US/COINTELPRO80s_WAH.html TheWarWithin,p324325 TheWarWithin,p356. TheWarWithin,p464. TheWarWithin,p459460. TheWarWithin,p418. TheWarWithin,p549550. http://www.legacy98.org/ TheSixties,ArthurMarwick,OxfordUniversityPress,1998,p395. http://www.gate.net/~liz/SUFFRAGE.HTM Thisbrieftimelinecamefromthefollowingtwosites: http://world.std.com/~nvri/page2d.html#TheConstitutionalTheory http://www.wmich.edu/politics/mlk RoadstoDominion,SaraDiamond,GuilfordPress,1995. Eisenhower:SoldierandPresident,StephenAmbrose,Simon&Schuster,1991,p367. Eisenhower,p447. Kennedy,TheodoreSorensen.,Konecky&Konecky,1965,p483488. http://www.erols.com/kmdavis/lbj.html Republican Party Leader Vows Close Scrutiny at Polls, Francis Quinn, AP, October 22, 1998. Article appearedintheBostonGlobe. AndtheHorseHeRodeinOn,JamesCarville,Simon&Schuster,1998,p170. http://japan.cnn.com/US/9803/16/nixon.spy.ap/ Hoover,p183184. BarrSpoketoWhiteSupremacyGroup,ThomasB.Edsall,WashingtonPost,December11,1998. Name one other Congressman that has been photographed licking whipped cream off the breast of a wellendowedyoungladythathasexpressedsomuchpiousmoraloutragethatthePresidenthadan affair. TradingwiththeEnemy,CharlesHigham,Barnes&Noble,1995,p4546. TheWarWithin,p345. http://www.ausfv.org/pat_rob2.html AssociatedPress,BostonGlobe,October9,1998. http://www.wirthlin.com/publicns/report/wr9809.htm http://www.as.wvu.edu/~thumm/cultwars1.html ReligionsofAmerica,p448450. http://www.SecularHumanism.org/library/shb/robertson_13_4.html WhyAmericansHatePolitics,E.J.Dionne,Jr.Simon&Schuster,1991,p306. http://www.fedsoc.org/who.htm http://www.Channel4000.com/news/stories/news980204182333.html http://www.iamnow.org/articles/journal1.htm http://www.aflcio.org/publ/newsonlin/95jun19/icftu.html http://www.epf.org/labor/unions9.htm http://www.polisci.mit.edu/BostonReview/BR18.5/restoringright.html http://www.uts.cc.utexas.edu/rjensen/vol1no3/commonsense.htm http://www.wirthlin.com/publicns/report/wr9807.htm http://www.uaw.org/publications/wash_report/3620/wr362005.html http://www.crl.com/jeffj/incomedisp http://www.pathfinder.com/fortune/fortune500/perform2.html TheWorldAlmanac,1997,p958. http://www.shss.montclair.edu/english/furr/butler1.html RoadstoDominion,SaraDiamond,GuilfordPress,1995,p198.

[101] RoadstoDominion,p238. [102] RoadstoDominion,p293. [103] Two Sides of Abortion Issue Hold Rallies on Roe Anniversity, Katherine Q. Seelye, New York Times, January23,1999.