The following directive was issued by the Chief of the Intelligence Division of the German High Command, Admiral Walter Wilhelm Canaris, in 1944. The document lays bare the basic German strategy of scaring the U.S.A. with Bolshevism but-at the same time--recommends a long-range policy of Russo- German collaboration.
SECRET STATE MATTER
March 15, 1944
At a meeting of the representatives of the Foreign Office, the Security Division, ("SD") and the Department of Defense, (" Abwehr") , the following resolutions were adopted for unified action by all our agents in foreign countries:
I. Utilize to the fullest extent all available possibilities in neutral and enemy countries, in order to support our military efforts with political and propaganda campaigns.
2. Our goal is to crush the enemy's plan whose object it is to destroy forever the German Reich militarily, economically, and culturally.
The new regulations put into effect by the political leaders for the dissolution and disintegration of the enemy bloc should be carried out more intensely. We must do our utmost to create a state of confusion and distrust among our enemies. Such a state of disunity would enable us to sue for a quick separate peace with either side. While it is true that the efforts made in that direction have failed so far due to the implacable hate policy of Roosevelt and Churchill it does not mean that some day, under different conditions, the unnatural front of our enemies could not be broken. Roosevelt's electoral defeat this year could have immeasurable political consequences.
The political and military leaders are of the opinion that Germany cannot expect any mercy from the Soviets; on the contrary, should the war take a turn for the worse, we must assume that the Slavs will do everything in order to retaliate against the harsh treatment we have inflicted upon them. In spite of everything, no effort should be spared to stir up, through carefully directed propaganda, political animosity inside the Anglo-Saxon countries which would enrage the Soviets to such a degree that, as a consequence, they would welcome a chance to conclude a separate peace with Germany.
In the event of a negotiated peace, or should we be defeated, Germany would have everything to gain-in the long run-by joining' the East.
Right now, the chances for a separate peace with the West are a little better, especially if we succeed, through our propaganda campaign and our confidential" channels, to convince the enemy that Roosevelt's policy of "unconditional surrender" drives the German people towards Communism.
There is great fear in the U.S.A. of Bolshevism. The opposition against Roosevelt's alliance with Stalin grows constantly. Our chances for success are good, if we succeed to stir up influential circles against Roosevelt's policy. This can be done through clever pieces of information, or by references to unsuspicious neutral ecclesiastical contact men.
We have at our command in the United States efficient contacts which have been carefully kept up even during the war. The campaign of hatred stirred up by Roosevelt and the Jews against everything German has temporarily silenced the pro-German bloc in the U.S.A. However, there is every hope that this situation will be completely changed within a few months. If the Republicans succeed in defeating Roosevelt in the coming presidential election, it would greatly influence the American conduct of war towards us.
The KO-leaders abroad and
their staffs have
innumerable opportunities of constantly referring to Roosevelt's hate
They must use in this campaign all the existing contacts and they
try to open up new channels. We must point to the danger that Germany
be forced to cooperate with Russia. The greatest caution has to be
in all talks and negotiations by those who, as "anti-Nazis,"
maintain contact with the enemy. When fulfilling missions, they have to
comply strictly with instructions.
(Memorandum from Dr. Colin Ross to the German Foreign Office, 1943.)
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."
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 blackmail diplomacy in post-war America. Here follow some significant parts of the memorandum.
PLAN FOR AN IDEOLOGICAL CAMPAIGN IN THE UNITED STATES
The Prerequisites for psychological warfare
more the prospects for outright
victory diminish, the more urgent becomes the necessity for all-out
In analyzing this problem we can disregard completely the possibility of total victory through military might alone, because in such a case psychological warfare is superfluous. However, in the case of total military collapse, we must continue the struggle by means of psychological warfare until the day arrives when weapons can speak again. In my opinion it is important to point to this ultima ratio now and emphasize it more than ever before. Psychological warfare will prove especially successful in the U.S.A. where many groups (weite Kreise) are fed up with the war. . . .
all circumstances we should prepare
for the worst, not in a spirit of defeatism, but in order to cope more
effectively with defeatism in the hour of collapse. It is important
we see to it that our enemies, especially the Americans, should not
themselves in the sun of victory or that they enjoy the role of being
liberators of Europe. Therefore, it is necessary to set up a far- flung
organization in every country which, under enemy occupation, must carry
on the task from the underground. We must do everything possible to
upon American public opinion that after the liberation of Europe they
become involved in an endless maze of insoluble contradictions. However
great their sacrifices may be they will end up in a blind alley exactly
as it happened in 1918 under Wilson's grandiose planning.
We have to use the argument that if the enemy succeeds in stamping out "Fascism" or "Nazism" there will remain only Bolshevism. Thus, a Germany threatened by the Anglo-Americans with dismemberment, will throw herself completely into the arms of the Soviets, and in that way will make Bolshevism unconquerable.
is the time to make up the balance
and to start with large scale preparation in order to meet the coming
Our defense must not remain limited to military measures alone but must
employ every available weapon of psychological warfare. The
offensive is the order of the day.
On March 30, 1945 the U.S. State Department announced that "reliable information collected by Allied Governments clearly indicates that the Nazi regime in Germany has developed well arranged post-war plans for the perpetuation of Nazi doctrines and domination. Some of these plans have already been put into operation and others are ready to be launched on a widespread scale immediately upon termination of hostilities in Europe:'
From the official release, the following parts are quoted:
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.
German technicians, cultural experts, and undercover agents havewell-laid plans to infiltrate foreign countries with the object of developing economic, cultural and political ties. German technicians and scientific research experts will be made available at low cost to industrial firms and technical schools in foreign countries. German capital and plans for the construction of ultra-modern technical schools and research laboratories will be offered at extremely favor- able terms since they will afford the Germans an excellent opportunity to design and perfect new weapons. This Government is now in possession of photostatic copies of several volumes of German plans on this subject. The German propaganda program is to be an integral part of the over-all post-war program. The immediate aim of the propaganda program will be directed at removing Allied Control measures by 'softening-up' the Allies through a subtle plea for 'fair treatment' of Germans and later the program will be expanded and intensified with the object of giving re-birth to all Nazi doctrines and furthering German ambitions for world domination. Unless these plans are checked they will present a constant menace to post-war peace and security."
Excerpts of statement by William L. Clayton, former Assistant Secretary of State, to the sub-committee of the Committee on Military Affairs, U.S. Senate.
The second matter I should like to discuss relates to the current and urgent problem of frustrating German attempts to hide abroad a stake for another gamble at world domination.
The Department of State has abundant evidence that the Nazis, in anticipation of military defeat, made careful plans to carry on in Foreign countries a wide range of activities necessary to support an eventual resurgence of German power. For this purpose plans were made, and carried out in part, to transfer abroad sufficient funds and specially trained personnel to carry on pan-German activities, even while the Allied armies were in occupation of Germany.
"The success of German efforts to carry on in foreign countries activities inimical to the United Nations must depend on their ability to mobilize funds to support the execution of their plans. Consequently, they have made strenuous efforts to move abroad assets of all kinds, which can be converted into funds for the financing of 10stile activities.
Our safehaven program is a combined effort of the Department of State, the Treasury Department, and the Foreign Economic Administration to deny to Germany, in the interests of justice and future security, the economic power arising from (a) the organized looting (a) occupied countries, (b) the flight of German capital in anticipation of defeat, and (c) the German capital investment already located abroad when the war began.
"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 can be said in every neutral country to have been the fault of private individuals alone is problematical.
The Germans systematically looted all manner of valuable property, not only to satisfy the esthetic sensibilities of such celebrated collectors as Goering, but to acquire wealth cheaply for concealment abroad.
Looting reached its all-time low when gold was picked from the teeth of gas chamber victims. A more subtle form of outright looting was outright purchase with occupation currency from fearful sellers.
Report on Germany's War Potential On July 10, 1945, Senator Kilgore of the Subcommittee on War Mobilization, submitted the following report to the Senate Military Affairs Committee, a part
Mr. Chairman, we have the honor to submit to you a preliminary report on the sub-committee's studies of German resources for a third world war. In its report of November 1944 on Cartels and National Security, your subcommittee found that the Germans systematically engaged in economic warfare as a prelude to military conquest. Our investigations even at that date supported the conclusion that-
The German aggressors have begun to pursue a strategy which they found successful a quarter century ago; they are already deploying their economic reserves throughout the world in preparation for a third attempt at world domination. . . .
Germany in defeat remains a major threat to the peace of the world. The Germans, who have twice within the century launched the most devastating wars, have already set in motion plans for a third attempt to enslave the world. No peace making can be successful which does not at the outset thwart these plans and destroy Germany's potential for war making. This is the indispensable condition to peace in Europe. Lasting world peace requires also the unconditional defeat of Japan and the smashing of her war potential. . .
Germany today is better prepared to implement her plot for world conquest than she was at the end of World War I. Her major resources include (I) the world's third strongest industrial economy; (2) tremendous industrial recuperative power; (3) a world-wide network of economic and political reserves and a system of commercial interrelationships penetrating the economies of other nations; and (4) the science of aggression perfected by her leading Industrialists, militarists, and politicians to reverse the decisions of the battlefield.
Germany is an industrial giant whose economy for half a century was
developed by the Junker-industrialist clique as an engine of war. . . The strength of Germany's war machine lies not only in her over expanded metallurgical and chemical industries, but in her enormous industrial flexibility and recuperative power, displayed before and
throughout the war. . . It appears that if Germany had held out 6 months longer she would have been sending more destructive ~ V-2 bombs to smash the heart of New York. Germany's recuperative power rests on her greatly expanded machine-tool industry, her reserves of skilled scientists and technicians. Except for the United States, Germany remains the outstanding machine shop in the world. German science provided the synthetic fuels and rubber which enabled her armies to drive relentlessly over Europe. German scientists and technologists created new and diabolical weapons.
In the period between World War I and World War II, Germany created economic, political, and espionage outposts throughout the world. In the United States, Germany retrieved many of the properties which had been seized during the First World War. She penetrated so deeply into key industries of Latin-American countries that a State Department official testified before the subcommittee that liquidation of the German-controlled enterprises would have crippled the economies of a number of these countries. The Germans also made strong inroads into the economies of Spain, Sweden, Switzerland, Turkey, Portugal, Finland, Bulgaria, and Roumania
. . . German-owned or dominated firms not only served to procure raw materials, increase German trade, and obtain much-needed foreign exchange for Germany, but they acted as centers of espionage and as intermediaries for the financing of Nazi political activities . . .
During the war, in an endeavor to maintain intact its assets in enemy countries, it used the neutral countries as a cloak for German ownership or control. . .
Despite the strenuous efforts of the United States and the cooperation of a number of the Latin-American countries, the evidence is unmistakable that German influence is still strongly entrenched in this hemisphere, particularly in Argentina. The United States itself may be one of the most important safe havens for German assets. There is over a half-billion dollars of seized assets held in unnamed Swiss accounts, which are now blocked by the United States on reasonable suspicion that these assets may in fact be German. . . .
. . . Leading German industrialists, militarists, and politicians have at their disposal a long and carefully developed science of aggression. This science rests on a series of major deceptions: (a) that the war of aggression is the product of a few Nazi fanatics; (b) that the German economy is a normal civilian economy and should be maintained as such; (c) that the entire network of relationships between German cartels and monopolies of other countries is essential to the conduct of international trade and industrial progress; (d) that German science and German scientists are an instrument of human progress; and (e) that the Allies have less to fear from Germany than they have to fear from one another.
The evidence shows that German industry has been dominated by a number of combines and domestic monopolies, chiefly in the basic industries, and that the leaders of these combines, together with the Junkers and Nazis, were Germany's principal war makers. Constituting a kind of economic general staff, immediately after Versailles and with the assistance of the Weimar Republic which they infiltrated, they began to consolidate their position within the country and secretly to rearm Germany. By manipulating reparations, by planned bankruptcy, by Government subsidies and tariff protection, and by masterful use of international cartel relationships they disarmed their prospective victims and with the assistance of those prospective victims, perfected their own war machine. Hitler and the Nazis were late comers in these preparations. It was the cartel and monopoly powers-the leaders of the coal, iron and steel, chemical, and armament combines-who at first secretly and then openly supported Hitler in order to accelerate their ruthless plans for world conquest. By 1931 the coal cartel, one of the most powerful industrial combines in Germany, openly placed a royalty on every ton of coal sold, whether domestically or abroad, in order to finance the Nazi Party. . .
A witness before the subcommittee, who only recently interrogated some of Germany's key industrial leaders, now jailed, pointed out that these leaders confidently expect to be rescued from their present plight by powerful British and American friends who were their former cartel affiliates. . . These industrialists remain the principal custodians of Germany's plans for future war.
. . . Your subcommittee finds that the German economy was developed as a war economy, and that its vast industrial potential remains largely undamaged by the war; that Germany has a world-wide network-including even the United States-of commercial relationships and economic, political, and espionage outposts which she could mobilize for another war; that the leading German industrialists are not only as responsible for war crimes as the German General Staff and the Nazi Party, but that they were among the earliest and most active supporters of the Nazis, whom they used to accelerate their plans for world conquest, and that these industrialists remain the principal custodians of Germany's plans for renewed aggression. . . .
The experience of the years following World War I demonstrates conclusively that without the active understanding, support, and participation of the people as a whole, the efforts of a few commissioners and even an army corps can avail nothing against the desperate schemes of a determined and skillful group of German leaders who have thoroughly indoctrinated their own people and systematically deceived the rest of the world.