With Rooseveltís death, his pledge to bring all war criminals to justice would evaporate in less than a year. The first sabotage effort came almost immediately after FDRís death. On April 25, 1945, Drew Pearson reported in his column that Rooseveltís plan for post war Germany had been dropped in favor of a soft peace for Germany by an inside group of military planners. This small circle of military planners included representatives of big business who had served in the military planning groups during the war.38
This group had adopted former President Herbertí Hooverís plan for a "cooling-off period" and a soft peace. The Hoover administration was instrumental in helping I.G. Farben in reestablishing itsí cartels after WWI.
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 Hoover to review the relief situation. Stimson was sure Hoover would demand the revitalization of the German economy and industrial base. Stimson in his diary, deprecated FDR and Morgenthau and referred to Hoover as a master of the subject and FDR and his administration as amateurs.140
Stimsonís diary reveals how deep the opposition to Roosevelt and a
hard peace for German ran. Stimson was an integral part of the
Roosevelt administration efforts to rid the world of the Nazi
menace but his diary reveals he bitterly opposed FDR's plan for post
war peace. Truman did appoint Hoover to tour Europe to seek out a
solution for relief. Hoover used the tour to enrich himself much as he
used his position during WWI to enrich himself. Moreover, one can be
certain Hoover vacuumed Europe for any incriminating evidence of his
efforts to prolong the first world war and his involvement with the
Within a few months, this group had found a political platform in the voice of a young State Department official, George Kennan. In early 1946, Kennanís memorandum on Soviet foreign policy had attracted the groupís attention and he was recalled to Washington to act as the State Departmentís deputy in the newly-formed War College.
Kennanís formula for rebuilding Germany as a bulwark against the East was soon adopted. All subsequent decisions by leaders within the Pentagon and the State Department were based on Kennanís premise. The last ditch attempt to compromise between a one-sided pro-Germany policy and one more amenable to the Soviets was made by Secretary of State Byrnes. On October 3, 1946, Byrnes proposed a program of Allied control over all of Germany for a period of 40 years.
Byrnesí plan for a peaceful relationship with the Soviets was opposed by the policy shapers inside the Pentagon, as well as by a large faction within the State Department. In 1947, George Marshall replaced Byrnes. 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 pro-Germany adherents the US was poised to rush headlong at full throttle into the Cold War. Our former ally against the Nazis was now our enemy. Denazification of Germany was dead; there would be no more trials of Nazi war criminals, no investigations of corporate America and its support of the Nazi regime. The native Nazis within America had won; their crimes would be swept under the rug.
Kennan was a Germanphile having studied at Heidelberg and at the Hochschule fuer Politik in Berlin. He was taught, and believed in the teachings of the Hochschule that Germany was a bulkhead against the East. Kennan did post graduate work in four German universities: University of Heidelberg, University of Berlin, Oriental Seminary and the Hochshule fuer Politik. All of these institutions were well-known for their extreme pan-German views.
Kennan was interned with other diplomats in the Grand Hotel in Bad Nauheim, Germany when the US entered the war. During his internment at the Grand Hotel, he gave lectures in which he expounded on the thesis that Germanyís defeat would extinguish the 2000-year-old history of European civilization. What kind of US diplomat would deplore the defeat of the Nazis in 1942 after the ruthless attack on Pearl Harbor? While in Berlin, Kennan had to be aware of the genocide being conducted in Poland, yet he deplored the defeat of the very regime that was giving new meaning to "barbaric behavior." The German newspaper, Die Spiegel confirmed that Kennan did lecture his fellow inmates at the Grand Hotel about the undesirability of the defeat of the Nazis in 1952.39
There were many officials inside the State Department and high-ranking military officials that shared Kennanís geo-political theories of General Haushofer and that led to Kennan becoming the leading Cold war theorist. Unfortunately, Kennanís premise was a house of cards built on lies and deceit. By 1945, the State Department had ample evidence that the German High Command had made extensive plans for a continuation of political warfare against the allies after a military defeat. The State Department had files detailing how German authorities had laid the groundwork for continuing the activities of the Nazis in foreign countries and the preservation of the German cartels. The State Department also, had files detailing the continuation of Nazi scientific research in foreign countries.
The State department was divided between those who favored a harsh peace and the pro-fascist faction who promoted an easy peace. By the end of the war, many of those that opposed fascism vigorously had been removed. The State Department was now in the hands of the fascist sympathizers. The State Department was busting at the seams with incriminating documents detailing Nazi plans to continue the war once hostilities ended. Excerpts from two of the announcements by the State Department and one from a captured Nazi document confirms State was well aware of the danger posed by the Nazis following the end of hostilities follows. The full text of these announcements and additional captured Nazi documents are given in the appendix.
"Nazi party members, German industrialists and the German military, realizing that victory can no longer be attained, are now developing post-war commercial projects, are endeavoring to renew and cement friendships in foreign commercial circles and are planning for renewals of pre-war cartel agreements, An appeal to the courts of various countries will be made early in the post-war period through dummies for 'unlawful' seizure of industrial plants and other properties taken over by Allied 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 re-establish German control at the earliest possible date. German attempts to continue to share in the control and development of technological change in the immediate post-war period is reflected in the phenomenal increase in German patent registrations in foreign countries during the past two years. These registrations reached an all-time high in 1944. The prohibition against exporting capital from Germany was withdrawn several months ago, and a substantial outflow of capital has followed to foreign countries."
"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 but retained a firm grip on manufacturing concerns through domination of technical processes. They have transformed their holdings into bearer shares in order to take advantage of the fact that the title to such shares can be traced only with extreme difficulty. Moreover, the Germans have also taken advantage in some countries of: administrative inefficiency and corruption. The extent to which this reaches can be said in every neutral country to have been the fault of private individuals alone is problematical."
"On July 27, 1943, the German Foreign Office expert on the U.S.A., the geo- politician Dr. Colin Ross, suggested in a fifteen page memorandum a "Plan for an Ideological Campaign in the United States:í Recognizing Germany's 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 U.S. 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 guidepost for Germany's highly successful black-mail diplomacy in post-war America."40
The passages referring to German corporations confirm the German concept of total warfare outlined in the chapter on the 1920s and the success and quickness with which the cartels were reestablished following the end of WWI. Moreover as confirmed in these documents plans were well afoot at an early date to reestablish economic control once the war ended.
The date of the third excerpt above coincides exactly with the
native fascists' desperate three-prong attack within the United States
as detailed in the previous chapter. Further, the documents in the
appendix confirm that Nazi agents were well placed within the United
States to effect the political doctrine and policy.
The intent of the Nazis can best be summarized by an excerpt from a 1944 French weekly Combat written by General von Stuepnagel in analyzing the causes for German military set backs in WWII.
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 beginningÖOur defeat in the present war need not be considered except as an incident in the triumhal march of Germany towards the conquest of the world, and from now on we must give a defeated Germany the spirit of a future conqueror. What does a temporary defeat matter if, through the destruction of people and material wealth in enemy countries, we are able to secure a margin of economic and demographic superiority even greater than before 1939? If we can succeed in doing this, this war will have been useful, since it will enable us, within the next 25 years, to wage another war under better conditionsÖOur enemies will grow weary before we do. We shall have to organize a campaign of pity designed to induce them to send us needed supplies at the earliest possible moment. Above all we must hold on to the assets we have deposited in neutral countries. The present war will thus have been victorious, in spite of our temporary military defeat, because it will have been a march forward towards our supremacy. We have not to fear conditions of peace analogous to those we have imposed, because our adversaries will always be divided and disunited.41
There is no more dramatic evidence that the State Departmentís plan of a German bulkhead against the Soviets and the resulting Marshall Plan were written in effect by the Nazis than the passage above. The writer is not implying here that Marshall or any particular individual was a Nazi. However, the State Department had reams of captured Nazi documents and was well aware of the post war plans of the Nazi leadership to continue the war economically and psychologically. Yet, the State Department embarked on a course that could not have pleased the Nazi leadership more. The Nazi psychological warfare campaign was extraordinary successful in playing the United States for a bunch of saps.
While the State Department was correct in opposing the Soviet Union or any other totalitarian form of government, pushing the world to the brink of a nuclear holocaust was foolhardy at best. Moreover, as we learned later in the 1960s and 1970s dťtente and trade were more effective weapons against the Soviets. By pursuing a path of belligerence rather than peaceful co-existence, the US forced the Soviets to arm themselves and their Eastern European satellites to the nth degree. The Marshall Plan would propel the world towards nuclear brinkmanship.
Evidence that the Nazis were trying to split the Allies was abundant. Captured Nazi documents prove it. Those documents reveal that the German High Command channeled proof about their secret negotiations with Americans to Stalin through agents who were in contact with von Papen. This was the source of the serious discord between FDR and Stalin in the closing months of the war. The Big Three had agreed to hold no secret talks separately with the Nazis. Yet, Allen Dulles was holding talks with General Woff and other Nazi officials. All reports suggest that the talks held by Dulles were unauthorized. While FDR had neither authorized the talks or was aware of them, Stalin had been informed of them with the aid of the Nazis. At one point prior to this incident, the Nazis had the audacity to propose that the West join with them in a war against communism. The Americans that had engaged in these secret talks had been played as either a bunch of fools or were part of the Nazi ruse, including Allen Dulles.45
In addition to the reams of documents, that the State Department had acquired the press reported further proof regarding the establishment of a Nazi underground network. On December 13, 1944, an Associated Press article reported that Himmler had started such plans. The article further claimed that many party members had established double identities and that the aim of the propaganda was to drive a wedge between the Allies.
The evidence of Nazi underground network and escape routes emerged as early as 1943 and was extensive by late 1944. The Nazis made good use of their occupation of France in sending carloads of files and secret formulas over the Pyrenees to neutral Spain. Burnet Hershey, the foreign correspondent of the Hearst press first reported of the German escape route through Spain on January 25, 1943. An excerpt of his statement follows.
"Every talk I had with the Germans in Lisbon made that fact clear. They may be defeated on the battlefield, as they were in 1918, but they expect to win again at the peace table as in 1919. Of course, they will sacrifice Hitler as they sacrificed the Kaiser; but the old gang---the generals, big industrialists, phony professors of mis-education about German race superiority---will try to go underground again to lay the eggs for another war of German conquest."42
A year later, on January 17, 1944 Harold Denny, of the Times confirmed the early report in the following dispatch from Madrid.
"Heavy new increments of German agents have been pouring into Spain in recent days in an obvious effort by Germany to save what she can of a situation that has gone badly against her.
A thousand Gestapo agents and other German representatives have appeared in Madrid alone in the past fortnight. Significant additions to the German population have been notes in other parts of Spain.
They are not easy to deal with, for Germany has extensive commercial interests in Spain and many of these agents are here in the plausible guise of executives, technicians and lesser employees of these interests as well as cogs in Germanyís vast diplomatic, consular and propaganda machinery.43
On April 13, 1944, The New York Herald Times carried a detailed report of records from the British Intelligence 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, Newsweek declared the following.
"Many of the men Himmler sent to Spain and Argentina to carry out Nazi plans for postwar survival, carried passports under false names and latter were reported dead in Germany. All have had training in Nazi political methods and experience abroad in commercial and other posts."44
In fact, the names of many of those deposed as plotters in the failed attempt on Hitlerís life were later used as false identities for escaping Nazis. The previous quoted documents about the Nazis planning a comeback was confirmed by a Reutersí News Wire of September 14, 2000. The new document was released under the 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 Nazi party after the war when it went underground. A Dr Scheid, an SS general and director of Hermsdorff & Schonburg Company presided over the meeting. Seven German companies including Krupp, Roehling, Messerschmidt, and Volkswagenwerk and officials of the ministries of armaments and the navy attended the meeting.
The SS general informed them they must prepare themselves to finance the Nazi party when it went underground. Additionally, German industry must make contacts and alliances with foreign firms and lay the groundwork for borrowing considerable sums in foreign countries. The SS general cited Kruppís sharing of patents with U.S. companies as an example of how to employ firms outside of Germany for the benefit of the Nazis. The three page document was sent from Supreme Headquarters of the Allied Expeditionary Force to the U.S. secretary of state in November 1944.79
It is clear that the State Department had a good idea as to the intent of the Nazis following a cease in hostilities. Even the press was full of articles reporting on Nazi escape plans. Likewise the papers particularly those that aligned themselves as pro-fascist before the breakout of war began a propaganda blitz for an easy peace with Germany. These papers claimed Rooseveltís call for an unconditional surrender was delaying the end of the war and in fact the issue was worked into the election campaign of 1944. Despite this barrage of propaganda, which the Nazis may very well have instigated as previous documents above suggest, there were thousands of articles and editorials against any appeasement of Germany and the Nazis. At the peak of this sympathy campaign for an easy peace Major George Fielding Eliot wrote in the Herald Tribune on June 27, 1945:
"Why shouldnít the German standard of living be lower than that of Germanyís neighbors? Since when has it been considered an obligation of civilized society to see to it that a criminal, in the custody of the law, must enjoy every privilege, every luxury and every article of Lucullan diet which may be available to the law-abiding members of the community?"46
When Rooseveltís Occupational Directive 1067 was published, it had the full support of the American people. This directive had been kept secret by the military command for months because it ran counter to their program. The essential objectives of the Allies were stated as follows in Directive 1067.
"The principal allied objective is to prevent Germany from ever again becoming a threat to the peace of 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 Germanyís capacity to make war and preparation for eventual reconstruction of German political life on a democratic basis."46
During the war, the allies solemnly agreed to remove all traces of militarism and Nazism to insure Germany would never again wage war on the world. At Potsdam, the allies agreed to abolish all veterans organizations and all other military clubs and organizations. The failure to pursue the 4Ds program vigorously and to follow the Potsdam agreement led to additional problems for the occupying forces. The ink was barely 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 the prison gates and was soon laying plans for a Nazi comeback.
During the first two years, the Brutherschaft operated in total secrecy. The inner circle was made up of top SS officers and important officers from the General Staff. Among the leaders were Lt. Gen.Hut von Manteuffell, former commander of the Panzer Gross Deutschland division, Alfred Franke-Grieksch, a high-ranking SS officer and Gottried Griessmayer, the former head of the Hitler Youth. The organization was well financed reaching across Germany and extending into Italy, Spain and Argentina.