In January 1946, a secret report issued by the Public Safety Branch revealed the true extent of opposition that General Clay and the occupying army faced. This report estimated that only one percent of the German population were committed anti-Nazis. In the same month David Robinson, an American negotiator for General Clay reported that German political leaders admitted that a free election then would bring a modified Nazi government to power.
Bishop Wurm was relentless in his opposition to the 4Ds program and pushed General Clay into setting up tribunals with two of the members German citizens to review and remove known Nazis from positions of power. Under pressure, Clay relented to the bishop’s demands. The resulting tribunals made a mockery of justice.
Special Agent, Charles Hick visited the villages of Marktheidenfeld and Aschaffenburg after hearing rumors that the local denazification panels were dubbed Nazi Welfare Organizations by the locals. He reported that the conditions were far worse than could be imagined. The case against the Nazi wartime mayor, Wilhelm Siebenlist had collapsed. Siebenlist had made a fortune by exploiting his office under the Nazis and had been a longtime party member. This Nazi profiteer had fourteen witnesses willing to speak in his favor, including ten employees and there was only one witness for the prosecution, who was suspected to be a Nazi.
Hick first believed the case collapsed because of Horst Schutze, the prosecutor. Schutze had been jailed three times in three months for embezzlement and was a former nazi Party member. Hick also thought Heinrich Muller, the second prosecutor, might also be to blame. Muller had been a long time party member, and had nine charges of fraud levied against him. However, Julius Listmann publicly claimed credit for Siebenlist’s acquittal. Listmannwas the tribunal's investigator and was the proud owner of a new car given to him by the former Nazi mayor.87
The Siebenlist case was not exceptional. Rather, it was typified the findings of the tribunals across Germany. Much of the blame for the failure of the tribunals could be laid to the Catholic Church. Local priests created the impression that it was a sin to give damaging testimony. Instead it became an honor to testify that former Nazis were good churchgoers and not Nazis. Such testimonies soon became known as fragenogen, or a pledge that the accused was whiter than white. The Catholic Church even went as far as toorder its members not to work in any of the tribunals.
The Catholic priest in Steinach went even further. He convinced a practically illiterate panel that even the most rabid Nazis were just mere followers. The panel then ranked these rabid Nazis in the "lowest threat" categories. The priest had joined the Nazis in 1925. In Uffenheim, the local priest warned his followers not to speak to the prosecutor, who was a Jew that had just returned from Auschwitz. In Unterfranken and Mittelfranken, Nazi profiteers such as Hans Glas a former SS member, were fined only two thousand marks. Glas had an annual income of over two thousand marks. Xavier Lang another Nazi profiteer was also fined the same paltry sum. Lang had an income of over seven hundred thousand marks annually.89
The American forces failed to protect the few tribunal members and prosecutors that were really anti-Nazi. Those members were subject to intimidation and assault from former Nazis. Some were murdered by the werewolves, an underground Nazi organization that continued a guerilla war after the surrender of Germany.
The primary reason for such opposition to the 4Ds program by the German clerics was simply a fear of the left, particularly communism. The churches sought their own revitalization and were very concerned over the growing menace of the perceived hordes of godless reds. Former Nazis were in positions to exploit this fear. In fact, that was precisely the plan revealed in the captured documents. A quote below from the July 28, 1946 edition of The New York Times by Bishop Wurm provides little doubt of his fears. "extreme left-wing elements are using denazification laws to destroy Germany’s leading classes of educated men…There is something Bolschevistic about it."90
This was the same argument that right wing elements in the United States were promoting. Many of those that were advancing such ideas in America’s homeland had been supporters and sympathizers of the Nazis before the war. American Nazis, like their German confederates, felt the events of World War II did not lessen their right to rule.
The condition of Germany after the failure of the 4Ds program was perhaps best summed up by Strang and Steele, two British political officers that toured Germany. They reported that the Nazis remained a privileged class. The failure to remove Nazi foremen and shopkeepers left the Nazis in control of the daily lives of the German population. The anti-Nazis did not have the strength to challenge the former order. The foremost anti-Nazis had already perished in the concentration camps or were executed by Nazi courts.
The views of Strang and Steele deepened the British lack of interest in pursuing denazification further. Only American criticism prevented the British from fully removing themselves from the denazification program.
In 1952, McCloy returned to the United States and became a consultant for the Rockefeller financed Ford Foundation, a foundation that has close ties with the CIA and is closely associated with the Council of Foreign Relations. In 1953, McCloy became chairman of Chase National Bank, which soon merged into the Chase Manhattan Bank. After the assassination of John F. Kennedy, McCloy served on the Warren Commission. From then until his death he was involved in many dealings between the US government and other governments, private industry and banks.
McCloy’s departure from Germany marked the beginning of a new phase of post war Germany. Germany from then on was self-governed with little interference from the occupying armies. Adenauer had been elected 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 ex Nazis. 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, such as Fredrich Flick, who gave generously to Adenauer’s party.
The state of Adenauer’s government can best be determined 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 loathsome records were entrusted by Adenauer to the rebuilding of the government.
Hans Globke served the Nazis as the top official in the Office for Jewish Affairs in the Ministry of Interior. He was directly involved in the formation of the racial laws and drafted the text of Hitler’s race laws. Globke was also the author of the notorious Commentary that interpreted the Nuremberg laws, paving the way for the Holocaust. When the Nazis decided on mass extermination of the Jews, Globke’s superior resigned as a matter of conscience. Globke filled his position. As chief legal advisor and head of Jewish Affairs Globke was a direct participant in the Holocaust.
On Spetemeber 28, 1960, Der Spiegel reported Globke had direct dealings with Eichmann. The article quoted testimony from war criminal Max Marten, who had been convicted of war crimes. Eichmann, had requested Marten to send 20,000 Jews in Macedonia to Palestine in 1943. Globke’s permission was needed for the release however; Globke refused to release the Jews insisting on a strict adherence to Hitler’s order for liquidation.92
On October 30, 1955, Der Welt described Globke as the second in command of the German ship of state. The paper reported that Globke alone had access to Adenauer at all times. Globke used his power to appoint many Nazis to important positions within the government. Some suggested Globke had done more to renazify West Germany than anyone else.93
McCloy and the Military Occupation Government had to have known of Globke’s record. As there was criticism of his record from almost the beginning. On July 12, 1950, the legal expert of the Social Democratic Party, Dr. Adolf Arndt, spoke in front of the Bundestag describing Globke's record in detail. He accused Globke of committing mass murder with legal paragraphs. On October 16, 1951, Dr. Gerhard Luetkens, the Social Democrat’s deputy, charged Globke before the Bundestag with packing the Foreign Office with ex-Nazis.94
On June 11, 1958, Deutshce Zeitung in a full-page article explained how Globke was able to maintain rigid control over every ministry. As Secretary of State, Globke convened all cabinet meetings and determined the agenda. All appointments had to cross Globke’s desk. Therefore, Globke was able to install loyal friends in every ministry.95 Globke was also an old friend with Reinhard Gehlen, and provided Gehlen with his access to Adenauer. In 1955, when the federal Republic became a sovereign state, Gehlen’s network of spies was openly recognized as an arm of the Bonn government. Gehlen’s network was home to ex SS and other Nazis.
In effect once West Germany became a sovereign state, Gehlen’s
network was under the direct command of Globke.
Another organization under the control of Globke was the Federal Press Department. Throughout the 1950s, the department was involved in several scandals in connections with the use of multimillion-dollar slush funds. Globke was charged with paying journalists 1,000 or 2,000 marks for political analysis. Such payments were obvious bribes to play along with Globke’s agenda. Other funds were spent on friendly publishers. Additionally over 40,000,000 marks in secret funds must be added to these sums that is earmarked for discretionary use of the Chancellor and Secretary of State. 91 It is obvious, Globke was adhering to the Nazi comeback plan.
Dr.Blakenhorn’s record is as dark as Globke’s record. Nevertheless, Adenauer was allowed to appoint Blankenhorn to rebuild the Foreign Office and he served as chief of the office for many years. The occupation government had been warned about him in a letter from Stettinius, Secretary of State to Robert Murphy on April 20, 1945. An excerpt from the letter follows below.
"While in Washington, Blankenhorn is known to have been active and aggressive as a propagandist working through mainly social contacts, for the Nazi party and hitler. Racialism was one of his favorite subjects. While professing great sympathy for the United States, he was yet an ardent and convinced member of the Nazi party and was also a member of the SS."109
Stettinius sent his warning letter after receiving from Murphy, an OSS report that had summed Blankenhorn up as truly and thoroughly anti-Nazi. Three weeks after Stettinius letter, Grew sent another warning to Murphy.
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 emergency shelters such as directors of orphanages or were employed by the Evangelical Relief Society.96 The positions seemed harmless. Their intent was not.
Many of the Nazi diplomats were strongly implicated in war crimes. However, only a few of them were ever investigated by the allies in the Wilhelmstrasse Trial of 1949. As early as 1949, the Neue Zeitung, the official American newspaper in Germany warned preparations were underway for the Ribbentrop clique to recapture the Foreign Office. In 1950, when Adenauer asked Blankenhorn to establish a new Foreign Office, Blankenhorn presented Adenauer with the nucleus of the Ribbentrop group. Adenauer must have known that Blankenhorn was implicated in war crimes of deportation and mass murder. On April 22, 1952, the Swiss newspaper Die Tat reported that in the trial of Rademacher certain documents implicating Blankenhorn had never been introduced as evidence despite their presence in the prosecutor’s files. The article stressed the Bonn Foreign Office had pressured the court not to introduce the incriminating files.97
The persistent attacks by a few democratic papers over the reactivation of the Ribbentrop group was soon echoed by the Social Democratic opposition in the Bundestag. After two broadcasts on Bavarian Radio Network by Wilhelm von Cube, a fighting democrat, public anger was aroused. Von Cube had proven 85 percent of the leading officials of the Foreign Office had been Nazi Party members and had served Hitler. The Bundestag then took up the investigation by investigating twenty officials. The Bundestag report confirmed 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 affidavits---Perilshiene (false testimony that they had been resistance fighters). 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 diplomatic missions abroad.98
Additionally the report also established that the Foreign Office had conspired to protect Dr. Rademacher. The report had clearly established Rademeacher’s guilt in the murder of 1,500 Jews in Belgrade. Rademacher was sentenced to only three years and eight months in prison. The court allowed him to remain free pending his appeal. Rademacher promptly escaped to Argentina where he was greeted as a hero that had escaped the clutches of Jewish jackals.99
On October 23, 1952, in a debate before the Bundestag Adenauer admitted that two thirds of the diplomats in higher positions were former Nazis. He lamented that he could not build a Foreign Office without their skills and promptly ignored the Bundestag’s report. After the 1953 election, Adenauer presented his second cabinet members as staunch democrats. However, the truth was this cabinet was full of Nazi Party and SS members. Few of those Nazis were ever removed from office.
One exception was the Minister for Expellees, Dr. Theodor Overlaender. Overlaender was the Reichsfuehrer of the German Alliance in the East. He had packed his ministry with ex-Nazis. However, he became the center of a storm when it was revealed that he was responsible for the liquidation of thousands of Jews and Polish intellectuals in July 1941. A special SS task force under his command had committed the mass murder when it occupied the Polish city of Lvov. In 1960, Overlaender was forced to resign.100
In the early 1960s more than sixty, West Germany ambassadors and foreign diplomats were former Nazi party members who had worked with Radermacher in organizing the Final Solution. Hans Albers formerly assigned to Warsaw by Ribbentrop became ambassador to Nicaragua. George Vogel a former SS officer was appointed ambassador to Venezuela. The South America appointments are particularly noteworthy, since South America became a favorite destination of war criminals escaping from Europe.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 governments. All across Germany various city governments, schools and the police were rife with former Nazis. Nazi penetration of the police was particularly acute in Germany’s larger states such as North Rhine-Westphalia, Scheswig-Holstein and Bavaria. On October 16, 1959, the Social Democrats exposed twenty SS officers who held the top police positions in the state of North Rhine-Westphalia. The Social Democrats specifically charged that former SS officers held the chiefs of the criminal divisions in such cities as Cologne, Dortmund and Essen. The Social Democrats charged that former Nazis dominated the whole police organization and that promotion and appointments were awarded to reliable SS men.101
In March 1959, the government of Baden-Wuerttemberg 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 Gestapo officer sentenced to death by a French court in absentia for torture and manslaughter.102
In the late 1950s, an avalanche of reports, investigations and charges surfaced charging current police officials with war crimes. In April 1959, the State Prosecutor launched an investigation of 23 police officers in Berlin. All were suspected of the mass murder of 97,000 Jews in Bialystok, Poland. In July of 1959, the chief of the criminal division in the state of Palatinate, Dr. Georg Heuser was arrested for the liquidation of Jews in Minsk. Then 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 chief of the criminal division in the state of Hesse was arrested. He was charged with mass murder in Maidanek concentration camp.
While other agencies of state and local government were just as infested with former Nazis, the infestation of the police was particularly odious. No citizen could report a war criminal without fear of reprisal especially when the criminal divisions of the police were under the control of former Gestapo and SS officers. With former Nazis in charge of the police citizens risked their lives and freedom if they challenged the Nazi line.
Again there is abundant evidence that this infestation of the police after the war by former Nazis was pre-planed before the war’s end lending further weight to the credibility of the Nazi's comeback plan and its implementation. The November 1957 issue of the Frankfurter Hefte exposed the number of the news and publishing media that was willing to promote the Nazi line:
"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 former Nazi publicists. In addition there are approximately 50 nationalistic youth organizations."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. General Otto Remer founded the Socialist Reichs Party, denied that the Holocaust ever happened and further claimed the allies had the ovens built after the war. In 1952, the Socialist Reichs Party was outlawed. Within the span of a few months authorities found that the Nazis had reorganized more than sixty tarn (camouflaged) groups in the state of Lower Saxony.
Perhaps one of the largest factors in the failing of the 4Ds program was the tragic death of Roosevelt a month before the surrender of the Nazis. The burden on Truman in his first year in office was immense, in the first month alone he had to deal with the surrender, and before the summer was out, the use of the atomic bomb and Japan’s surrender. Truman had no idea of Roosevelt’s Safehaven plan or the details of the atomic bomb when he came to office. He therefore put his trust in his advisors.
One of the advisors Truman came to rely on was independent oilman Edwin Pauly. Pauly, like Forestal, was a spy for Allen Dulles within the Roosevelt administration and the Democratic Party. Pauly had been part of Roosevelt’s Petroleum Administration for the War. Pauly also played a role in the selection of Truman as the vice presidential candidate in the 1944 election. Largely due to Truman’s gratitude for Pauly role in the convention, Truman appointed Pauly to be the US representative in the Allied Reparations Committee, despite his obvious conflicts of interest. Pauly was simultaneously made industrial and commercial advisor to the Potsdam Conference and given the rank of ambassador.
Using his position Pauly was able to help the Dulles brothers in shifting Nazi assets out of Europe. Pauly played a major role in helping the Dulles brothers and their clients. He knew that the bulk of the Nazi assets were located inside the western zone but deceived the Soviets long enough that Allen Dulles had enough time to spirit much of the remaining Nazis assets out of Europe.
After losing his nomination as Naval Secretary to replace Forestal, Pauly returned to the oil business. Pauly was soon embroiled in another controversy this one over Mexico and oil. In short, Pauly had been caught running a CIA shakedown of Mexican politicians. At one point, the CIA was using Permex as a business cover and as a money laundry for Pauly’s political contributions. The CIA-Permex connection lasted for many years. One notable employee of Permex during these years is William Buckley Jr. Pauly was known to play both sides of the streets and was a committed Nixon supporter.
George Bush established Zapata Petroleum during this time and leased oilrigs to Pauly. Pauly was Bush’s best customer. In 1959, Mexico changed its laws mandating oil companies had to be owned by Mexican nationals. Bush stood to loose his most lucrative account. Using a fiscal sleight of hand, Bush sold the Nola 1 rig, thus concealing a hidden American share of fifty percent. The only losers in the deal were the shareholders of Zapata according to Barons. Unfortunately, the details of the deal can now longer be scrutinized since the SEC destroyed all records for Zapata for the period 1960-1966. The destruction occurred shortly after George Bush was sworn in as vice president in 1981.119
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, it is obvious from the examples already cited that the Nazis were still in positions of power in the post war government of Germany. What had gone wrong was not a mere series of errors or mistakes. Rather it was an well-organized and -financed plot. The understanding of which is critical in understanding the rise of fascism late in the 20th Century and attempts to take corporate fascism global in the form of so called free trade and globalization of the world’s economy.
Perhaps, the best summary of what went wrong is given in a quote by James Stewart Martin of the Department of Justice’s investigation team in Europe in his book All Honorable 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, or even by a change of policy approved by the President . . . in short, whatever it was that had 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 arranged the world's affairs."
Roosevelt understood this plot and planned accordingly. He knew that the industrialists would cover up their crimes. He had placed some of the suspected American supporters of fascism in positions where they could be watched closely by the British Intelligence service. He knew that evidence gathered in such a manner would be inadmissible in a court of law. However, Roosevelt realized this group of industrialists wielded far more power than the powers conferred onto the president of the United States. The only chance for success in bringing this group of traitors to justice lay with exposing their crimes and arousing the public opinion against them. He therefore planned leaking the evidence gathered to the press and counted on the reaction of the American people to demand full investigations. He had used the same tactic in foiling the coup attempt against him in the 1930s. Unfortunately the evidence and the plan were buried with Roosevelt and his pledge to bring all Nazis and their supporters to justice had died with him.
Moreover, there is evidence that total destruction of Germany was never part of the plan by the hidden powers. In May 1945, only a few days after the surrender of Germany a small group around William Stephenson, better known by his code name Intrepid formed a new company called British American Canadian Corporation S.A. This new corporation was based in New York but registered in Panama. On April 2, 1947, this corporation changed its name to World Commerce Corporation. The most remarkable aspect of this corporation was that with one exception all of its directors and almost everyone associated with it had connections with British or American intelligence.
All officers of the corporation were members of either the OSS or of Intrepid’s network. Included in the list of officers was Sir Charles Hambro, George Muhle Merten, David Ogilvy, John Arthur Reid Pepper. The officers selected at the formation were Pepper, president, Ogilvy and Merten as vice presidents and Thomas William Hill, who gave his title as Intrepid’s British Security Coordination in New York City.
Donovan apparently was not involved with either corporation until he became a director On October 23, 1947, at the same time Edward Stettinius, former secretary of state, joined. Stettinius had a considerable financial holding in the corporation. However, Donovan’s law firm acted as legal advisers from the beginning. Among the legal advisers was Otto Doering.
Soon World Commerce Corporation (WCC) attracted a number of other
prominent intelligence operatives to join as directors, officers or
stockholders. Included in this group was Russell Forgan, Lester Armour,
Sydney Weinberg, W.K. Eliscu, Lt Col Rex Benson and several others
connected with the Canadian intelligence service. Others included
Nelson Rockefeller, former head of the agency in charge of South
America intelligence. John McCloy, former under secretary of war also
came on board as did Richard Mellon and Sir Victor Sassoon. When Frank
Ryan took over as president, Stephenson provided him with connections
to a group of men prominent in government, intelligence and finance.
The WCC contact in Greece was a former member of the Greek and British
intelligence services. In Thailand the WCC’s contact person was a
former OSS agent. In short almost all members of the WCC and its
contacts were formerly connect with the intelligence services during
the war.124 Yet this remarkable company even with the
backing to the world’s financial elite would last only fifteen years.
In 1962 the WCC was liquidated for tax reasons.
One of the first clues as to what this strange corporation of former intelligence experts was, emerged in a letter Donovan sent to General Clay, high commissioner, Robert Murphy, political advisor to Clay and General Charles Saltzman, assistant secretary for occupied areas at the State Department in November 1947. WCC's new president Frank Ryan wrote the letter. In the letter Ryan defined the general purpose of the corporation in the excerpt from the letter below.
"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 and the creation of internationally exchangeable values, which are essential in supporting the continuance of productive operations. The restoration of production and the continuing processes 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 with official bodies."125
Ryan advised Clay that WCC had its head office in New York City, close connections in all other major centers in the United States and also representatives in 47 other countries. Ryan’s letter to Clay was more specific in regards to Germany as follows below.
"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 information service are contemplated as proper elements of cooperative activity by WCC in Germany."
"WCC will submit offerings of raw materials, supplies or equipment which are required in Germany for the purposes of production.
WCC will submit bids for products of general commercial usage, which may become available for export out of German production.
WCC will develop and submit for coordinating the purchases, production and export sales of specific plant, of a group of plants or of an industry. These proposals will look toward a specifically integrated and self-supporting operation in which the facilities of the German producers on the one hand and the WCC on the other will be joined to accomplish the require result.126
Here in a nutshell we have the reason for the existence of this strange and short-lived corporation staffed by former intelligence operatives connected with the wealthiest groups of the English speaking world. In short the British, Canadian and United States intelligence services were running a corporation to rebuild Germany, in direct violation of Roosevelt’s orders.
Considering this corporation was formed only days after the war ended by a man who was at the top of the British intelligence services, suggests that the British never intended to destroy Nazi Germany. The inclusion of members of the OSS followed naturally as the OSS recruited heavily from Wall Street and families of the American industrial elite. It is also indicative that the world’s financial elite led by the British had a plan from the beginning not to destroy Germany totally and to reduce the cost of rebuilding after the war to protect German industry from bombing. It cannot be stated with any certainty that the reliance of the RAF on the terror bombing of civilian centers throughout the war was part of this plan until further classified government documents are made available.
Such a plan would fit with the British policy towards Europe for the previous century. Up until the WWI, England was the dominant power in Europe and the British were determined to maintain it. England’s strategic geographical location allowed it to block the sea-lanes of any European challenger to its power. The only serious threats to British power before WWI were France and Germany. Besides the threat of a blockade, Britain would foster wars between continental rivals, thereby weakening the dominant power on the continent. Using such tactics the cost to England in maintaining 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 potential threat was quickly dealt with.
However, towards the end of WWI a new threat to Britain rose. The Bolshevik Revolution in Russia presented a new threat to British imperialism if it were to spread beyond the borders of Russia. Between the war Britain regarded the Soviets as their prime enemy on the continent. Hitler’s armies had came within sight of Moscow, but at a heavy price to both the Soviets and the Nazis. Churchill delayed any invasion of Europe as long as possible. He was following the long English tradition of allowing Britain’s enemies to kill each other. Rather than a cross channel invasion he talked Roosevelt into an invasion of North Africa primary to protect the Suez Canal and British shipping lanes through it. He further delayed the Normandy invasion by promoting the invasion of Italy. Churchill then argued for an invasion through the Balkans, (What he termed Europe’s soft underbelly) and thereby cutting the advancing Soviets off from central Europe.
It was only with Roosevelt’s stern demand for a cross channel invasion after the meeting of the Big Three that Churchill acceded. Churchill favored an easy peace with Germany and only reluctantly accepted the Morgenthau Plan at Montreal. However, by this time Britain was reduced to beggar status and was desperate to hang on to its remaining empire and in no position to disagree if post war aid was at stake.
Thus, the formation of the World Commerce Corporation by one of England’s top intelligence officers dovetails with the British conduct of the war. Certainly those in the top ranks of the OSS who came from Wall Street or families of leading 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 or was it merely a plot by the elite in England to save themselves from financial ruin.
Historians have debated for decades if the Red House meeting informing the industrialists that the war was lost occurred. With the passage of time and the release of further documents it is now certain that the meeting did take place with the industrialists being informed that the war was lost and the need was to devise plans for a future comeback was at hand. Indeed the translated captured documents presented in Appendix II at the end of this chapter make it obvious that the Nazis had devised an elaborate plan for a comeback once hostilities ceased.
These plans had been carefully drawn by Bormann and had the support of Hitler. The plans relied solely on two proven methods and an indomitable loyalty to the fatherland and the Nazi Party. Bormann based his plans on the two successful methods the Germans used in WWI: the old German concept of total warfare and tarnung. Tarnung had proven itself as indispensable during WWI and in the aftermath. Indeed the chapter on the 1920s relates how successful the Germans were in hiding their capital assets and regaining those assets once hostilities ceased using tarnung. The following chapter will relate how successful Bormann’s Action Feuerland was in creating German corporations in foreign countries and how most of these hidden assets escaped confiscation by the allies’ Safehaven program.
Bormann’s plan not only relied on carefully chosen Nazi agents placed in foreign countries, but also upon Nazi sympathizers in those countries. Previous chapters have presented a wealth of information of the Nazi element within the United States in arming Hitler, in sabotaging our war effort and even their participation in US elections during the 1930s. The evidence implicated individuals in Congress, the military, business and Wall Street. Once the sabotaging of the 4Ds program is viewed in light of the captured documents, it confirms the sabotage was systematic and part of Bormann’s intricate and well-planned plot for the Nazis to regain power. This is further confirmed by the attitude of top IG Farben officials during their interrogation and trial. They were well aware; they would not suffer any harsh penalty and were indignant over having to suffer through the charade of an interrogation and trials.
The captured documents also confirm the distinct trends starting around 1943: the removal of officials that were steadfastly opposed to fascism, the rise in anti-Communism and the frantic peace efforts as presented in the previous chapter. These were all parts of the Nazi plot to regain power. Moreover, the captured documents note the connection between the Republican Party and the Nazis. Indeed the 1946 election played a pivotal role in the Nazi’s plan as the Republicans gained a majority in Congress. Once they held the majority in Congress the 4Ds program was dead, there would be no decartelization or harsh peace. Business would be free once again to renew their cartel ties to I.G. Farben and other German corporations. Standard Oil had been bold enough during the war to confirm that it intended to renew their cartel agreements once the war ended.
Moreover the disruption of the Malmedy trials in both Germany and
within the United States by such figures as Joe McCarthy reinforces the
plot laid out in the captured documents. It is a well-documented fact
that McCarthy received election funding from known fascists. However,
this was only the beginning of Tail Gunner Joe’s part in the Nazi plot
for a comeback. He would later play a greater part in the removal of
dedicated people from government offices that were staunchly opposed to
This chapter has presented a wealth of evidence to show that the sabotaging of the denazification program was systematic and proceeded at the highest levels of the occupation army as well as the lower ranks. The young lieutenant that wrote Pa Watson of his efforts to place a former Dehomag official in a position of power probably thought he was doing his best for his country, while putting a feather in his hat for his return to IBM. It is highly unlikely that he was part of this plot. It is more likely he thought that he was aiding his country. Nevertheless, his actions and the actions of hundred of other young officers similar actions protected IBM and Watson from being charged with aiding the Nazis.
However, the real rot and corruption came at the top ranks of the occupation army and the military government. The top echelon of the military government was filled with American business leaders with ties to the Nazis. The Kilgore congressional committee questioned the wisdom of appointing such business leaders to the control board. Both Rufus Wysor, president of Republic Steel and Fred Devereux, vice president of ATT were singled out in the committee’s 1946 report. Both served as section chiefs under General Draper. Wysor had signed several cartel agreements with Nazi steel companies and was particularly aggressive in defending cartels. However, the committee was powerless to prevent the appointment of such individuals or reverse their decisions. Therefore, the control board was able to act with impunity. General Draper had nothing to fear when he ordered the dismantling of an I.G. Farben plant to cease. John McCloy was able to free the war criminals on the flimsiest excuses with nothing to fear except a little bad publicity.
The sabotage conducted at the higher levels of the ranks revealed a larger plot of the part of the Nazi element within the United States to protect itself. Furthermore, the sabotage by Nazis within the United States was connected with and was an integral part of the Nazi’s plans to regain power as revealed in the captured documents. These documents stressed that their agents and friends within the United States would help protect them. They were not disappointed when McCloy opened the gates to Landsberg prison. Once freed Flick proceeded to fund Nazis within the new political system in Germany. The result was a German government composed largely of former Nazis.
At the center of the sabotaging of the denazification program within the United States were three Wall Street firms: Brown Brothers and Harriman, Dillon and Reed, and Sullivan and Cromwell. At the very eye of this corruption was Prescott Bush, John Foster Dulles and Allen Dulles, three men that would rise in power. All were traitors to their country and all worked feverishly to cover up their own crimes and those of others. None gave up their Nazi connections, in fact the Bush family’s connection to known Nazis became a campaign issue in the 1988 election.
The second part of the Nazi comeback plot involved provoking a war between the west and east. While the Nazis felt secure in their program of tarnung and safely hiding a great deal of the treasure they looted, they realized their quickest and easiest way back to power would be during a period of war between the United States and the Soviet Union.
The Nazis recognized that the people of the United States harbored an abhorrent phobia towards communism and were wildly successful in exploiting it. General Clay’s 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. Clay’s message and the Gehlen group will be more fully discussed in a later chapter. Clay’s message could be regarded as the first shot of the Cold War.
Furthermore, they were willing to provoke a war even if it meant propelling the world to the brink of a nuclear holocaust. It was the only part of the Nazi plot for a comeback that rested almost solely on Nazi sympathizers within the United States. The Nazis were not disappointed. Joe McCarthy would soon transform the nation into a feverish peak of mass hysteria in Red hunting. The Dulles brothers would rise to position of power to further the anti-communist hysteria. John Foster Dulles would have a large role in the start of the Korean War. Any government official dedicated to fighting fascism would be removed from office often by branding them as a communist.
Throughout his administration Truman faced a hostile congress with a Republican majority during which the anti-communism hysteria would reign supreme. Old fascist supporters such as Fred Hartley, who was a staunch backer of fascism and Japan on the floor of the House would be rehabilitated. Within less than 10 years of having his companies seized from him for trading with the enemy, Prescott Bush would be elected to congress. He would face no charges of treason. Bush would play a pivotal role in the selection of Richard Nixon as vice presidential candidate in 1952. Nixon had gained his first step in politics by agreeing with Allen Dulles to hide the evidence from captured Nazi documents that would have implicated Dulles as a traitor. In return Dulles agreed to finance Nixon’s first election campaign. Much of Nixon’s funding for his race for the House of Representatives was provided for by the same New York banks that helped to fund the Nazis. Moreover, the man Nixon replaced was dedicated to remove the last traces of fascism in Europe and was a sharp critic of the direction the 4Ds program was taking in going soft on the Nazis and cartels. He had to be removed and the native fascists within the United States missed no tricks in branding Voorhis as a communist.
Indeed every Republican president and vice president since Eisenhower with the two possible exceptions of Agnew and Cheney have either direct ties in aiding the Nazis and Nazi war criminals or strong family ties which are directly linked to the Nazi cause.
Throughout the early years of the Cold War every brush fire or hot spot that flared up had an element of Nazi intrigue in it. The Cold War would drag on to span four decades. It was the early 1960s when the Cold War reached its feverish peak of hysteria as the world stood on the brink of a nuclear war during the Cuban Missile Crisis. It also marked the turning point in the Cold War. President John F. Kennedy against the advice of his advisors chose a path of détente with Khruschev. However, there was no greater threat to the Nazi’s plot than peaceful negotiations between the Soviets and the Untied States. Once, détente was established between the two superpowers the Nazi plot to regain power was dead. Indeed following the crisis, test ban treaties were completed and the Cold War was reduced to a series of small brush fires in the third world.
However, the full extent of the Nazis in fermenting the Cold War
will never be realized until all of the classified documents from World
War II and the post war period are released.
The Nazi plan for a comeback had two fatal flaws. The plan had called for their comeback to take place about fifteen years after the end of the war. The Nazis failed to consider that the allies would divide Germany. While the Allies had plans to reunite Germany as soon as possible, the Nazis had failed to realize the extent of the anti-communism hysteria, which could be achieved in the United States. Basically they overplayed their hand.
With the rising tide of anti-communism being whipped up by Nazi
sympathizers in the United States the Allies soon decided upon a
permanent division of Germany. The Korean War appeared too quickly for
the Nazis. Germany was still divided and while reconstruction had
proceeded at a rapid pace in the west, the Nazis still faced a large
force of allied forces in their homeland. They had overplayed their
hand. The Fourth Reich would indeed rise but it would not rise in
It would rise in the United States.