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Nazis in the attic 

By Randy Davis 

This is part 3, click for part 4

 

]THE NEW WORLD (DIS)ORDER

"The first truth is that 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 essence, is fascism - ownership of government by an individual, by a group, or by any other controlling power.

"Among us today a concentration of private power without equal in history is growing."

-- President Franklin Delano Roosevelt (1)

As mentioned earlier, the secret U.S./Nazi corporate alliance during World War II was the result of substantial American investment in post-World War I Germany. In order to protect these investments, and the accumulating profits, the U.S. multinational corporations remained an important part of the Nazi war machine until the final defeat of Germany in 1945. What effect did the end of World War II have on this faction of American Nazi collaborators?

In this section we will review the evidence, much of it from recently de-classified documents, that this pro-Nazi faction, rather than facing charges of high treason, became an integral part of the United States national security apparatus, extending its fascist influence in both foreign and domestic policies and, in effect, creating what has been referred to as America's "Invisible Government." The excuse, of course, was Communism.

THE BUGGING OF WALL STREET

Aarons and Loftus' research, which documents the Dulles brothers' pro-Nazi activities, did not go unnoticed. "Before his death, former Supreme Court Justice Arthur Goldberg granted one of the authors an interview. Justice Goldberg had served in U.S. intelligence during World War II. Although he said little in public, he had collected information on the Dulles boys' activities over the years. His verdict was blunt. 'The Dulles brothers were traitors.' They had betrayed their country, by giving aid and comfort to the enemy in time of war." (2)

Much of what is now known about the activities of the Dulles brothers and other American Nazi collaborators in banking and industry came as a result of a top-secret joint U.S.-British intelligence program known as the Ultra Project. "Prior to the United States' entry into the war," write Loftus and Aarons, "Roosevelt permitted British intelligence to wiretap American targets.

"According to our sources in the intelligence community, the area of coverage included a good bit of the New York financial district, several floors of Rockefeller Plaza, part of the RCA Building, two prominent clubs, and various shipping firms. . . .

"The wiretap unit reported to Sir William Stephenson, a Canadian electronics genius better known by his code name, 'Intrepid.' From his headquarters in the Rockefeller building, Stephenson's job was to identify U.S. companies that were aiding the Nazis." (3)

"Several months before the United States declared war," continue Loftus and Aarons, "Bill Donovan invited Allen Dulles to head up the New York branch of the Office of the Coordinator of Information (COI), President Roosevelt's new intelligence agency and the precursor to the Office of Strategic Services (OSS). Its primary mission was to collect information against the Nazis and their collaborators. In other words, Dulles was asked to inform on his own clients in New York. . . ."

"Roosevelt had approved his selection as head of the COI Manhattan branch because he wanted Dulles where the British wiretappers could keep an eye on him. . . .

"One floor below Dulles was Stephenson's wiretap shop. Inside Dulles's operation was one of Roosevelt's spies, Arthur Goldberg . . ." who, "confirmed . . . that Dulles's appointment was a setup. . . .

"Roosevelt was giving Dulles enough rope to hang himself. From Stephenson's Manhattan wiretaps, it is known that Dulles was continuing to work with his German business clients, who wanted to remove Hitler and install a puppet of their own who would make peace with the West while forging an alliance against Stalin. It was to be a kinder, gentler Third Reich, favorably disposed to American financial interests. . . . (4)

"The wiretap evidence against Dulles originally was collected by a special section of Operation Safehaven, the U.S. Treasury Department's effort to trace the movement of stolen Nazi booty towards the end of the war. Roosevelt and Treasury Secretary Henry Morganthau had set up Dulles by giving him the one assignment - intelligence chief in Switzerland - where he would be most tempted to aid his German clients with their money laundering."

Roosevelt had one thing in mind: "The sudden release of the Safehaven intercepts would force a public outcry to bring treason charges against those British and American businessmen who aided the enemy in time of war." Among the targets were Allen Dulles, Henry Ford, and other U.S. industrialists. (5)

The plan failed, however, due to Dulles being "tipped off . . . that he was under surveillance" in time to cover his tracks. One possible source of the leak was Vice President Henry Wallace, "who constantly shared information with his brother-in-law, the Swiss minister in Washington during the war."

"Wallace," the authors reveal, "gave many details of his secret meetings with Roosevelt to the Swiss diplomat." The problem was that, at the time, the Nazis "had recruited the head of the Swiss secret service."

It is, perhaps, no coincidence that Roosevelt dropped Wallace during the 1944 election, choosing instead Senator Harry S. Truman as his new running mate. (6)

THE ENEMY OF MY ENEMY

"After the Nazis' 1943 defeat at Stalingrad," write Loftus and Aarons, "various Nazi businessmen realized they were on the losing side and made plans to evacuate their wealth. The Peron government in Argentina was receiving the Nazi flight capital with open arms, and Dulles helped it hide the money. . . .

"The Guinness Book of Records lists the missing Reichsbank treasure [estimated at $2.5 billion dollars] as the greatest unsolved bank robbery in history. Where did it go? . . . .

"According to our source, the bulk of the treasure was simply shipped a very short distance across Austria and through the Brenner Pass into Italy. Dulles's contacts were waiting at the Vatican. The German-Vatican connection was how Allen Dulles and the Nazi industrialists planned to get away with it. . . ." (7)

The effort was successful, according to the authors, who state that the "vast bulk of the wealth of the Nazi empire" which "disappeared before the end of World War II" reappeared "within a decade in the hands of the same men who financed Hitler's war against the Jews. Allen Dulles's clients were not defeated, only inconvenienced." The authors identify two of Dulles's accomplices as James Jesus Angleton and his father, Hugh Angleton. The Angletons were members of X-2, the OSS counterintelligence branch in Italy, in 1943.

Like Dulles, Hugh Angleton was financially involved with Axis powers. He was the European representative for National Cash Register in Italy before the war and business associate of Dulles. When World War II broke out, the authors write, ". . . Angleton was crushed financially as all his investments were in enemy hands."

"Like Dulles's clients, he wanted his money back. Like Dulles, Hugh offered his services to the OSS." With high-placed contacts in Mussolini's Interior Ministry, Hugh was accepted and "promoted rapidly in U.S. intelligence. He became second in command to Colonel Clifton Carter, the OSS commander in Italy at the end of World War II." (8)

Perhaps the most controversial information which is now emerging with the release of recently declassified documents concerning World War II, is the role of the Vatican, both in its pre-war German investments, and its role in helping Nazi war criminals escape justice after the war. Concerning the Vatican-German investments, Loftus and Aarons are quite clear:

"That the Vatican encouraged such investments and even donated money to Hitler himself cannot be denied. A German nun, Sister Pascalina, was present at its creation. In the early 1920s she was the housekeeper for Archbishop of the Vatican-Nazi connection . . . Eugenio Pacelli, then the papal nuncio in Munich. Sister Pascalina vividly recalls receiving Adolf Hitler late one night and watching the archbishop give Hitler a large amount of Church money."

In addition, Eugenio Pacelli "later convinced the Vatican to invest millions of dollars in the rising German economy, money from the Vatican's land settlement that ended the Pope's claim of sovereignty over territory outside the walls of Vatican City. It was Pacelli who negotiated the Concordat with Germany and then had to deal with the consequences of his own mistakes when he became pope on the eve of World War II."

"The Vatican and the Dulles brothers had the same problem. Once their money was in Hitler's hands, how would they get it back?"

The authors interviewed "a former colonel in U.S. Military Intelligence who specialized in tracing enemy assets. He claimed that only a tiny portion of the Reichbank's gold ingots actually reached the Vatican Bank, while the rest was held in cooperative banks in Belgium, Liechtenstein, and especially Switzerland." It was only necessary to transfer the paperwork on the gold, not the gold itself. Since, by that time, Dulles knew his telegraph communications were being monitored by the British wiretap operation in New York, he instead used couriers to "ensure absolute secrecy in moving the foreign currency and the ownership documents out of Switzerland . . . special agents of the Vatican who had diplomatic immunity to move back and forth across both Nazi and Allied lines. . . ." (9)

". . . . The Vatican's eminence grise for Balkan intelligence, the Bosnian-Croat priest Krunoslav Draganovic, was involved in transporting large quantities of Nazi booty, especially gold bullion, from Austria to the safety of the Holy See with the help of the Dulles-Angleton clique in Rome. Some of the booty was transported in truck convoys run by British troops. Other shipments were carried in U.S. Army jeeps provided to Father Draganovic so that he could conduct pastoral visits' on behalf of the Vatican.

"Another ardent Nazi propagandist and agent, Slovenian bishop Gregory Rozman, was sent to Bern with the help of Dulles's friends in U.S. intelligence. Declassified U.S. intelligence files confirm that Bishop Rozman was suspected of trying to arrange the transfer of huge quantities of Nazi-controlled gold and Western currency that had been discreetly secreted in Swiss banks during the war. For a few months the Allies prevented Rozman from gaining access to this treasure, but then the way was mysteriously cleared. In fact, the Dulles-Vatican connection had fixed it, and before too long the bishop obtained the loot for his Nazi friends, who were hiding in Argentina.

"Such instances turned out to be only the tip of the iceberg. It has long been acknowledged that it was Allen Dulles who tipped off General Patton about the buried German treasure that lay in the path of the U.S. Third Army. Patton explicitly urged General Eisenhower to conceal as much of the gold as possible, but his advice was refused.

"Our sources claim that Dulles and his colleagues exerted a great deal of influence to ensure that Western investments in Nazi Germany were not seized by the Allies as reparations for the Jews. After all, much of 'Hitler's Gold' had originally belonged to the bankers in London and New York. The . . . captured Nazi loot went underground. . . .

"In the cause of anticommunism, and to retrieve its own investments in Germany, the Vatican agreed to become part of Dulles's smuggling window, through which the Nazis and their treasure could be moved to safety." (10)

On April 12th, 1945, Roosevelt died, and Truman became President. May 7th, Nazi Germany surrendered after the suicide of Adolf Hitler. September 2nd, Japan surrendered.

World War II finally ended, but at the cost of more than 35,000,000 lives, over half that amount civilians. The death toll for the United States was 294,000. (11)

A PLEDGE BETRAYED

"Dulles and some of his friends volunteered for postwar service with the government not out of patriotism but of necessity," according to Loftus and Aarons. "They had to be in positions of power to suppress the evidence of their own dealings with the Nazis. The Safehaven investigation was quickly stripped from Treasury . . . and turned over to the State Department. There Dulles's friends shredded the index to the interlocking corporations and blocked further investigations.

"Dulles had this goal in mind: Not a single American businessman was ever going to be convicted of treason for helping the Nazis. None ever was, despite the evidence. According to one of our sources in the intelligence community, the U.S. Army Counter Intelligence Corps had two large 'Civilian Internment Centers' in Occupied Germany, code named 'Ashcan' and 'Dustbin.' The CIC had identified and captured a large number of U.S. citizens who had stayed in Germany and aided the Third Reich all through World War II. The evidence of their treason was overwhelming. The captured German records were horribly incriminating.

"Yet Victor Wohreheide, the young Justice Department attorney responsible for preparing the treason trials, suddenly ordered the prisoners' release. All of the Nazi collaborators were allowed to return to the United States and reclaim their citizenship. At the same time, another Justice Department attorney, O. John Rogge, who dared to make a speech about Nazi collaborators in the United States was quickly fired. However, the attorney who buried the treason cases was later promoted to special assistant attorney general.

"Dulles and his clients had won. The proof is in the bottom line. Forty years after World War II, Fortune magazine published a list of the hundred richest men in the world. There were no Jews on the list. The great fortunes of the Rothschilds and Warburgs had been diminished to insignificance by the Depression, the Nazis, and World War II.

"Near the top of the list were several multibillionaires who had been prominent members of Hitler's inner circle. A few even had served time in Allied prisons as Nazi war criminals, but they were all released quickly. The bottom line is that the Nazi businessmen survived the war with their fortunes intact and rebuilt their industrial empires to become the richest men in the world. Dulles's clients got away with it. President Roosevelt's dream of putting the Nazis' moneymen on trial died with him."

England also failed to see justice done, according to the authors: "The British authorities in Germany ordered the U.S. Army to release all of the VIP British Nazis and hand over the evidence against them. Even before Roosevelt's death, Churchill had already begun to withdraw from his commitment to prosecute Nazis." The reason? "Too many British industries might be seized as Nazi fronts. Too many upper-class collaborators might have to be prosecuted. The Germans were defeated, and the Soviets were now the enemy.

"Funding for British war crimes investigations suddenly dried up. Nazi bankers such as Herman Abs were released from prison to work as economic advisers in the British zone of Germany. The history of British 'efforts' to punish Nazis after the war is aptly summarized in Tom Bower's book, 'The Pledge Betrayed'. . . ."

"The pattern was repeated all over the remnants of the Third Reich. Despite direct orders from President Truman and General Eisenhower, I.G. Farben, the citadel of the Nazi industrialists, was never dismantled. Dulles's clients demanded, and received, Allied compensation for bomb damage to their factories in Germany. Only a few of the top Nazis were executed. Most of the rest were released from prison within a few years. Others, . . . would go virtually unpunished. No one ever investigated the Nazi sympathizers in Western intelligence who had made it all possible." (12)

As we have seen, the American industrialists who did business with the Nazis were in no way inconvenienced by war crimes trials, and even received compensation for damages to their Nazi war plants. Some Nazi industrialists were charged and convicted by the Nuremberg war crimes trials but, in their book, "The American Establishment," authors Leonard and Mark Silk observe that in the late 1940s "the United States and its leaders faced an agonizing moral problem in coming to terms with those German industrialists who had willingly done business with the Nazis and who were now just as willing to do business with the Americans in the reconstruction of Germany. The problem was dramatized when those German industrialists who had been convicted of war crimes at Nuremberg were all released from Landsberg prison in early 1951, their sentences commuted by the American High Commissioner [of German Occupation], John J. McCloy.

". . . . Whatever the motivation," the authors continue, "the blanket release of the convicted industrialists was taken within Germany - and by them - as a sign that businessmen were not to be seriously blamed for their involvement in matters for which others were hanged or suffered long imprisonment." (13)

The motivation for the mass release of imprisoned Nazi war criminals is described in the book, "The New Germany and the Old Nazis," by T.H. Tetens, an expert in German affairs.

Tetens observes that in "1950, when Washington showed its eagerness to create a new German army of 500 000 men, the SS [at that time reorganized into a neo-Nazi front group called HIAG, which stands for 'mutual assistance,' a so-called veterans organization], together with the old Wehrmacht officers, started an all-out campaign for the immediate release of all war criminals. It was a superbly organized blackmail action, enjoying wide support from the public, from all parties, and carried toward success by Dr. Adenauer's astute maneuverings.

"The Chancellor suggested an inconspicuous way to solve the problem with 'parole,' 'sick leave,' and other roundabout methods. The more the U.S. High Commission in Germany showed leniency, however, the stronger the pressure became: either 'all so-called war criminals are released or there will be no German army.' American diplomats followed Dr. Adenauer's plan to feed the nationalistic monster piecemeal. Every few days we quietly released one or two more from prison - the Krupps, the I.G. Farben directors, and dozens of former Wehrmacht Generals. On friendly advice from Washington, the British and the French, extremely reluctant, had to follow suit. When the supply dried up, there remained behind bars only the SS, the mass murderers from Dachau, Belsen, and Buchenwald, and the toughs from the Waffen SS who had massacred American, British, and Canadian prisoners of war. This put High Commissioner John McCloy in a most embarrassing position. . . ."

Tetens explains how Chancellor Adenauer helped High Commissioner McCloy and the U.S. State Department avoid this embarrassment: Adenauer "suggested the formation of a review board, with three German members sitting in and having equal voice in making recommendations. The whole procedure was to be shrouded in secrecy, and it was decided that the names of those released should not be revealed to the public. In this way the last few hundred 'poor devils,' those SS mass killers and sadists, were quietly set free within two or three years." (14)

Christopher Simpson, in his extensively documented book on the subject of U.S. recruitment of Nazis, "Blowback," goes into more detail of the backgrounds of those released: "The beneficiaries of this act included, for example, all of the convicted concentration camp doctors; all of the top judges who had administered the Nazis' 'special courts'" and dozens of similar cases. In addition, "McCloy's clemency decisions for the Landsberg inmates set in motion a much broader process that eventually freed hundreds of other convicted Nazi war criminals over the next five years. . . . By the winter of 1950- 1951 the most senior levels of the U.S. government had decided to abrogate their wartime pledge to bring Nazi war criminals to justice. . . . in the interests of preserving West German military support for American leadership in the cold war. While nazism and Hitler's inner circle continued to be publicly condemned throughout the West, the actual investigation and prosecution of specific Nazi crimes came to a standstill." (15)

One case merits special attention: Sepp Dietrich, "the organizer of the Fuehrer's bodyguard. Dietrich carried out Hitler's personal murder assignments" and, Tetens continues, "was in charge of the liquidation of the Jewish population in the city of Kharkov. During the Battle of the Bulge his troops committed the Malmedy massacre, killing more than 600 military and civilian prisoners, among them 115 American G.I.s. He was sentenced to death, and the sentence was later commuted to life imprisonment. In 1955 he was one of the last poor devils' quietly released from prison and greeted by the Bonn government with the homecoming pay of 6,000 marks." (16)

In a "New York Times" article published February 1, 1951, one prominent American expressed support for the reduction of sentences for those responsible for the mass murder of the 600 unarmed prisoners of war at Malmedy, describing the decision as "extremely wise." The American was Senator Joseph McCarthy, Republican from Wisconsin.

Tetens observes that, despite the wide-spread fear by "the French, the British, and the smaller European countries" of a re-militarized Germany, "the outbreak of the Korean War (June 1950) brought a total change. The provisions which banned all military and veterans' organizations lost all their meaning and were no longer enforced. Western Germany was allowed by the Allies to set up its own General Staff, camouflaged under the name Blank Office. Supported by Bonn and tolerated by the United States, a nation-wide network was created to reactivate the experienced officers and the man power of the old Wehrmacht. The short period of 1950-51 must be marked as the time when Hitler's old officers, SS leaders, and [Nazi] party functionaries returned to power and influence." (17)

Tetens' comment that the Nazis return to power in Germany was "tolerated by the United States" was a historical understatement. By the time Tetens' book was published in 1961, hundreds of convicted Nazi war criminals had already been smuggled out of Germany to avoid prosecution at the war crimes trials at Nuremberg, recruited by, and on the payroll of several U.S. government agencies, including the Army CIC, the OSS, and the Office of Policy Coordination within the State Department.

Over the past fifty years, it is now documented, these Americanized fugitive Nazi war criminals have been involved in, and in many cases in charge of, many U.S. government covert operations -- international weapons smuggling, drug cartels, Central American death squads, right wing anti-communist dictatorships, LSD mind control experiments -- the Republican National Committee's Ethnic Heritage Councils, and the Presidential campaigns of Richard Nixon, Ronald Reagan, and George Bush.

THE GEHLEN ORGANIZATION

Probably the most influential Nazi to come to work for the United States intelligence agencies during the Cold War was named Gehlen.

"Reinhard Gehlen," writes author Christopher Simpson, "Hitler's most senior military intelligence officer on the eastern front, had begun planning his surrender to the United States at least as early as the fall of 1944." Of "several hundred" high-ranking Nazi officers who switched sides at the end of World War II, Gehlen "proved to be the most important of them all.

"In early March 1945 Gehlen and a small group of his most senior officers carefully microfilmed the vast holdings on the USSR in the . . . military intelligence section of the German army's general staff. They packed the film in watertight steel drums and secretly buried it in remote mountain meadows scattered through the Austrian Alps. Then, on May 22, 1945, Gehlen and his top aides surrendered to an American Counterintelligence Corps [CIC] team." (18)

According to Tetens: ". . . [Gehlen] immediately asked for an interview with the commanding officer . . ." and offered the United States "his intelligence staff, spy apparatus, and the priceless files for future service."

Gehlen was sent to Washington and his offer was taken. "The Pentagon-Gehlen agreement," states Tetens, "in practice guaranteed the continuation of the all-important Abwehr division of the German General Staff. Hundreds of German army and SS officers were quietly released from internment camps and joined Gehlen's headquarters in the Spessart Mountains in central Germany. When the staff had grown to three thousand men, the Bureau Gehlen opened a closely guarded twenty- five-acre compound near Pullach, south of Munich, operating under the innocent name of the South German Industrial Development Organization. . . .

"Within a few years the Gehlen apparatus had grown by leaps and bounds. In the early fifties it was estimated that the organization employed up to 4,000 intelligence specialists in Germany, mainly former army and SS officers, and that more than 4,000 V-men (undercover agents) were active throughout the Soviet-bloc countries. Gehlen's spy network stretches from Korea to Cairo, from Siberia to Santiago de Chile. . . . When the Federal Republic [of West Germany] became a sovereign state in 1955, the Bureau Gehlen was openly recognized as the official intelligence arm of the Bonn government." (19)

How important was the Gehlen Org, as it became known, to the history of the Cold War? Simpson's research documents that it was perhaps the most significant element of all:

". . . . The Org became the most important eyes and ears for U.S. intelligence inside the closed societies of the Soviet bloc. 'In 1946 [U.S.] intelligence files on the Soviet Union were virtually empty,' says Harry Rositzke, the CIA's former chief of espionage inside the Soviet Union. '. . . . Rositzke worked closely with Gehlen during the formative years of the CIA and credits Gehlen's organization with playing a "primary role" in filling the empty file folders during that period. . . .'

"'Gehlen had to make his money by creating a threat that we were afraid of,' says Victor Marchetti, formerly the CIA's chief analyst of Soviet strategic war plans and capabilities, 'so we would give him more money to tell us about it.' He continues: 'In my opinion, the Gehlen Organization provided nothing worthwhile for the understanding or estimating Soviet military or political capabilities in Eastern Europe or anywhere else.' Employing Gehlen was 'a waste of time, money, and effort, except that maybe he had some CI [counter-intelligence] value, because practically everybody in his organization was sucking off both tits.'" (20)

By 'sucking off both tits' Marchetti is referring to the fact that Gehlen's elaborate operation was penetrated by Soviet spies at the very time it was our most important source of intelligence upon which the Cold War was based. In fact, the Communists had infiltrated Nazi intelligence long before Gehlen switched sides.

Continue (Part 4) ...

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