-Caveat Lector- Treason in America -- From Aaron Burr to Averell Harriman ANTON CHAITKIN (C)1984 New Benjamin Franklin House P. O. Box 20551 New York, New York 10023 ISBN 0-933488-32-7 ----- This book has been out of print and hard to get for years, but a NEW second edition is just out. Highly recommended, there are charts, pix and more. Only $15.00 retail. Om K --[19a]-- -19- The Partnership of Harriman and Dulles On October 18 and 19, 1945, a Swiss-based organization calling itself the World Council of Churches came into the war-wrecked city of Stuttgart, Germany, to meet with certain German church leaders. The meeting issued a statement declaring the collective guilt of the German people for the crimes of Nazism. A month later trials began at Nuremberg: Twenty-two Nazi leaders were tried for conspiracy, war crimes, and crimes against humanity, crimes which had led to the deaths of 50 million persons during World War II. The declaration of "collective guilt" was intended, among other things, to blunt the question of individual guilt at the Nuremberg trials, and has confused the central issue of actual criminal guilt since that time. Hjalmar Schacht got off without punishment. Many of the most important Germans, and foreign nationals, who helped Hitler rise to power, make war and carry out mass murder, were not even at Nuremberg, and were never tried for these crimes. The chief failure of the Nuremberg trials was not insufficient hangings, but rather that there was no general inquiry into the disaster which had befallen the world: Who had backed the Hitler revolution and what were their strategic aims? Such an inquiry is still vital today, because the international gang which created Nazism and backed Hitler is active, and very powerful, in today's world. What follows is the story of this gang as it operated in America, centering in the political and commercial partnership of Averell Harriman and John Foster Dulles. As this chapter shows, Harriman and Dulles—two men, with their families, who have dictated so much American policy in this century—were central to putting Adolf Hitler in power. And, as we show, Dulles and Harriman in commercial partnership profited from Hitler's accession to power. Institutions and individuals associated with the pro-Soviet Eastern Establishment today, were architects of Nazism in the prewar period. Among those individuals and institutions, whose stories are bound up with the Harriman-Dulles combine, are the World Council of Churches, and the psychoanalyst Carl Jung—in his own lifetime a Nazi, now a symbol of "liberalism." This narrative is a contribution to a second, more effective "Nuremberg," a process of inquiry which may help prevent an even greater disaster than the Holocaust of the 1940s. The Heritage of the Dulles Brothers The Dulles brothers, Allen and John Foster, stood at the top of American policymaking in the 1940s and '50s. In the '20s and '30s, they helped create Hitler. Their family background prepared them well for this. Allen and John Foster Dulles were brought into the U. S. State Department as intelligence agents by their uncle, Secretary of State Robert Lansing, just before the American entry into the First World War. Secretary Lansing and his young Dulles nephews perfectly exemplify the State Department's tradition of treachery to American interests and ideals, going back, with few exceptions, to the beginning of the Republic. President Woodrow Wilson, elected in 1912, had made Robert Lansing chief counselor in the State Department, while the populist William Jennings Bryan was Secretary of State. When the war started in Europe in 1914, the Wilson government declared American neutrality, and the President announced his strong interest in ending the war. But a powerful combination of American public figures acted for the British to pull the U.S. into the madness of World War I as Britain's ally. The most prominent in the British party here were: • Former president Theodore Roosevelt, who by family connections and personal inclination was "British Empire" to his very marrow; • Massachusetts Senator Henry Cabot Lodge, the anglophile Boston Brahmin who, with Teddy Roosevelt, had created the Spanish-American War in 1898; • President Wilson's confidential adviser Col. Edward House, whose British father had run guns into Texas for the Southern Rebellion, and had taken young Edward back to England for a thoroughly anti American education. House later returned to Texas and became the Texas political boss, in alliance with the Harrimans; and • Robert Lansing, who had married a daughter of the anglophile former Secretary of State, John Watson Foster. Another Foster daughter married Rev. Allen Macy Dulles, and gave birth to Allen and John Foster Dulles. While Teddy Roosevelt and Henry Cabot Lodge campaigned openly for American entry into the war, House and Lansing betrayed and lied to the President, l misrepresenting themselves as neutral while carrying on continuous covert political operations on behalf of the British. The British Navy enforced a blockade on the Atlantic, commandeering American ships for inspection and rerouting to stop American goods from going to Germany. Yet British ships openly sailed back and forth from legally neutral U.S. ports, carrying weapons and soliciting American passengers to ride alongside the guns being shipped. When the Germans protested the use of the British Cunard liner Lusitania as an arms supply ship, the German note went to Counselor Lansing, who ignored it. When a German submarine sank the Lusitania, Lansing persuaded Woodrow Wilson to protest against the "cold-blooded murder" of American passengers. William Jennings Bryan resigned at this obvious and bloody manipulation of the American population, and Lansing replaced him as Secretary of State. Secretary Lansing and his allies, aided by increasingly gross attacks by the politically blind Germans, finally brought Wilson and the U.S. into the First World War. After trying unsuccessfully to provoke war between the United States and Mexico, Lansing was fired by President Wilson. In the Dulles family biography, written with the cooperation of the Dulleses, author Leonard Mosley politely states: One of the reasons why Robert M. Lansing knew exactly how flagrantly the British were breaching the United States neutrality laws was because he had become dose friends with the two chief British agents in charge of the operation, Sir Courtney Bennet and Captain Alex Gaunt. Both were spies operating under the intelligence network run from London ... [out of ] the British Admiralty.... Gaunt ... would keep Allen [Dulles] entranced for hours with stories of his prewar missions into Germany and eastern Europe.... Lansing ... introduced [Gaunt] to American special agents and ordered one of them, Bruce Bielaski, to cooperate with Gaunt.... Bielaski ... was chief of the investigative division of the Department of Justice. ... Robert Lansing was . . . so pro-English that he even took elocution lessons to perfect the English accent he was cultivating. Allen . . . thought Gaunt was one of the most exciting men he had ever met, and he made up his mind that one of these days he would become an intelligence operative just like him-except for the accent, of course.(2) The history of the Dulles family is an epic of British Empire intrigue and sensational aristocratic criminal activities. Two Scottish Dulles (originally "Douglas") brothers left Ireland around 1780: Joseph Dulles went to South Carolina, William Dulles to India as a soldier for the East India Company. While the Company army was conquering most of the Indian subcontinent in the years 1797-1803, William Dulles was making a fortune in his own side business providing financial and security services for the Company's officers, and for Indian and Persian princes who cooperated with the British conquest. William Dulles came to South Carolina in 1807; his India loot bought the family a substantial slave plantation, which the Dulleses held through the American Civil War. Joseph's son Joseph Heatley Dulles (1795-1876) joined many other young plantation gents at Yale University. He worked with some of the Connecticut organizers of the secessionist Hartford Convention in 1814,- and became an intimate lifelong friend of New York lawyer Daniel Lord, founder of the Lord, Day and Lord firm which represented the Astor family and New York's financial elite. It was at this point that the Dulles money and investments moved primarily into the North. Joseph H. Dulles, having been a member of the secret "Society of Brothers in - Unity" at Yale, emerged in the religion business as Secretary of the American Sunday School Union, a post he held for 40 years. Joseph H. Dulles's son John Welsh Dulles (1823-89) went to British India as a missionary, later took his father's post as Secretary of the American Sunday School Union, and for 16 years was Editorial Superintendent of the Presbyterian Publications Board. He and his sons played major roles in«thefPresbyterian church; a close relative, William Dulles, was treasurer of the Presbyterian Board of Foreign Missions. Before his missionary stint in India, John Welsh Dulles had attended the University of Pensylvania (his uncle was Provost Charles Stille). It is likely that he befriended there one Grayson Mallet-Prevost, since both Dulles and Mallet-Prevost attended the Medical School in 1844, and Dulles's son Petit Dulles later married Mallet-Prevost's daughter Julia Mallet-Prevost. Thus the Dulleses married into one of the premier families of treason. Among the children of John Welsh Dulles were: Petit Dulles (1852-83), who married Julia Mallet-Prevost; Rev. Joseph H. Dulles III (1853-1937), who reorganized and supervised the Library of the Princeton Theological Seminary for 45 years; and Rev. Allen Macy Dulles (1854-1930), father of Allen, Eleanor, and John Foster Dulles. Reverend Dulles became director of Apologetics at the Auburn Theological Seminary in Auburn, New York. He and his son John Foster were to lead a "liberal" coup within the national Presbyterian church, preparing for John Foster Dulles's publicly obscure but historically crucial church leadership role. Fresh out of Princeton University, John Foster Dulles was hired as a lawyer by William Nelson Cromwell of Sullivan and Cromwell, law firm to the Eastern Establishment financial oligarchy. The founder of the firm, Algernon Sydney Sullivan, was an early legal associate of John Foster Dulles's maternal grandfather, John W. Foster, who recommended young Dulles to Cromwell. Sullivan represented leading Civil War-era Virginia families and business interests. He served as an attorney for men captured as "Confederate" pirates for attacking American commercial shipping just after the outbreak of the Civil War. At one point, the U.S. government briefly jailed Sullivan, a Northerner, on treason charges because of this close relationship with the leaders of the Southern insurrection. Sullivan's partner Cromwell came to represent the J.P. Morgan bank in its takeover of the American steel industry, and aided Edward H. Harriman in his railroad operations. In 1903 Cromwell organized the "revolution" which detached the Isthmus of Panama from the nation of Colombia, creating a new country ("Panama") and making himself and the Sullivan and Cromwell law firm the official counsellors to the new country Cromwell used as his revolutionaries the employees of the Panama Railroad, which was controlled by his client Edward H. Harrimam The secession better, theft—was backed by gunboats sent to the Caribbean by President Theodore Roosevelt, who broke off congressionally authorized negotiations with Colombia for the purchase of canal-building rights through the isthmus. William N. Cromwell was a director of one of the strangest instruments for the penetration of Central and South America, and southern and eastern Europe: the American Banknote Company. American Banknote's Albert Gallatin Goodall (director, 1863-87) arranged with Russia, Greece, Italy and many Ibero-American governments to have his company print the money and securities of those countries. This was no "American" operation: Mr. Goodall was the personal Freemasonic representative of Britain's Edward VII; Company employees had previously printed counterfeit American money for the British troops in the 1770s, and currency and bonds for the Southern insurrection in the 1860s. J.P. Morgan's early partner, the Austrian-American banker Joseph W. Drexel, was a Banknote director in the 1880s; the company became the chief printer of the securities traded on the New York Stock exchanges. Sullivan and Cromwell became the corporate attorneys for American Banknote, and successive S.&C. chief executives (Cromwell, 1900-48; Alfred Jaretski, 1906-25; John Foster Dulles, 1925-49; and Arthur Dean, beginning 1952) sat on the Banknote board. Allen Dulles left the Banknote board in 1951 to become director of the United States Central Intelligence Agency. The old Cromwell-Hartiman commercial tie was officially renewed in 1937, when E.H. Harriman's son Roland, brother of Averell Harriman, joined John Foster Dulles on the American Banknote board of directors. By this time, as we shall see, the Harrimans and the Dulleses had long been engaged in a joint political venture which was to bring tragedy and chaos to the world. When young John Foster Dulles was called into Central American intelligence work for the State Department by his uncle, Robert Lansing, he was gaining experience as a neophyte lawyer in a region which was in some ways Sullivan and Cromwell's private preserve. The Mind of John Foster Dulles On Aug. 18, 1911, John Foster Dulles sent a statement summing up his philosophical standpoint to his father for review. It is the worldview of Darwin, of the eugenicist Harriman—and of Hitler: a bald declaration of war against Judeo-Christian moral principles, the principles of Western civilization itself. We read that Joshua commanded the sun and the moon to stand still, and that "the sun stood still and the moon stayed, until the people had avenged themselves upon their enemies." A good- many legislators are attempting to imitate Joshua and to arrest the working of a natural law. Joshua did not succeed for very long, and it is doubtful if the commands of our present day legislatures will have even as much effect as this temporary staying of Joshua's. The natural laws to which I refer are biological and economical laws which produce disagreeable results. And in an attempt to eliminate these consequences, man is generally found opposing himself directly to the natural law which creates them.... Under natural conditions all species tend to increase with great rapidity . . . [after] a few generations the world would be literally crowded with life.... There is a check, however . . . the limited capacity of the world to sustain life. As the numbers of a species increase it becomes more and more difficult for each individual to find means of sustenance . . . some must perish, and what is known as the law of natural selection says that the ones who will perish will be the weakest. The strongest will survive.... With man, as with every other form of life, there is this same tendency for the birth rate to far exceed the death rate, with the inevitable result of an overcrowded population in which some must be eliminated [emphasis added]. Who those to be eliminated are depends upon who are weakest and who are strongest in the competition which necessarily ensues. Biology tells us that it is only by means of this competition and elimination that progress is made. For the tendency of a race is to retrograde and it is only by eliminating the lower members that a higher average is maintained.... [Emphasis added. ] The impelling power which has led to a great part of our laws has been sympathy.... In England people saw men -starving because of the high price of bread . . . they must have a given amount of money or starve.... So ... a law was passed that bread should not be sold at more than a certain sum a loaf.... In this kind of legislation . . . man has been acting in a more or less unconscious manner.... Human society can be likened unto a wheel. One section is always down, in the mud, if you will. .. . Laws should not . . . have for object,. the doing away with all poverty and distress; but rather in so determining the conditions of competition that the most desirable [sic] find themselves best adapted to succeed, while the least find themselves to succeed. To have progress some must [emphasis in original] be eliminated, but let us scrutinize conditions carefully so that we will get all the progress possible out of that elimination, and that there shall not be any waste [sic!], suffering and misery. . . .It is among the poor that the process of elimination takes place.They are not killed outright, but they do perish indirectly They do not have sufficient shelter, their food is insufficient and perhaps . . . impure. Consequently they and their children fall an easy prey to disease.... Legislation may do somewhat to keep down in a more humane way this sector of population only born to perish. Some efforts have been made, and it would seem that more might be made to restrict the increase of population among the less desirable [sic] class of our population, particularly among those classes where any children would be apt to inherit the same defects which have made their parents unable to successfully adapt themselves to circumstances. Any legislation which would prevent the increase of population among those persons who are diseased, insane, criminals, etc. would be economically wise [emphasis added].... There is of course the fundamental problem of whether we want to progress. Whether it is worthwhile that we should have so much pain and misery simply in order that our part of the human race may not be eliminated by another part some generations hence.... If we do not want progress, we can do away with it and the suffering which it involves by preventing the increase of our population, or by reducing it.... Another remedy, though one that is only temporary, is a kind of communism. This too destroys progress. But if all the resources of a country are divided up equally among all the population more will be able to be maintained than if the division is unequal.... As the population keeps increasing each one's share becomes smaller and smaller, until at last it becomes insufficient for him, and then elimination with its attendant misery must recommence [emphasis in original]. But in a wealthy country like our own, such a division would postpone this time for a considerable period.(3) With these views, John Foster Dulles was later to become an international representative of American Protestant Christianity—and to turn that position into a forum for promoting the politics of genocide. Divergent Objectives in World War I The Dulles brothers were involved from the period of the Versailles Treaty onwards, in the attack on Germany which created the conditions for Hitlerism. During World War I, Allen Dulles was posted by his uncle, Secretary Lansing, to Switzerland, the home base for the Dulles cousins, the Mallets; he took the job of chief of intelligence in the American legation at Berne. Among his fellow operatives was a young code clerk named Robert Murphy, who, as we shall see later, had a role to play in the Hitler project. Dulles family biographer Mosley retells the following story from Allen Dulles's own lectures and his private discussions with Mosley. Vladimir Ilyich Lenin, in exile in Switzerland, was accustomed to talking over Russian affairs with diplomats at the American mission. On April 11, 1917, after Lenin was informed that the Germans were about to send him back to Russia to overthrow the government, he telephoned the legation and asked to meet immediately with an American to confer on this momentous occasion. Allen Dulles spoke with Lenin and told him to forget about coming in that day. Lenin said he could only come today, that tomorrow would be too late, Dulles terminated the conversation, and Lenin decided to go ahead to Russia.(4) Six months later, he directed the Bolshevik revolution there. At the end of World War I, Secretary of State Lansing brought both his Dulles nephews into the Paris peace treaty negotiations. Lansing had not even wanted President Wilson to attend the negotiations. Mosley says that Lansing "saw the forthcoming Versailles Conference as an occasion where wile, guile, and maneuver [Lansing's] would be more important than high ideals and lofty aspirations [Wilson's]." Despite Wilson's presence and "high ideals, " the British, with French- urging, bulled through a treaty calling for drastic reparations payments from Germany. The British delegation was headed by Prime Minister David Lloyd George, who insisted that Wilson's famous Fourteen Points for peace were inadequate because they had no provision whatever for reparations damages. But the Conference in fact was guided by members of a British organization known as the Round Table, one of whom was Lloyd George's private secretary, Philip Kerr, Lord Lothian. It was the Round Table, including Lothian, which later promoted Hitler. At Versailles, Lothian drafted the amendment to Woodrow Wilson's Fourteen Points to call for reparations.(5) Lloyd George later told the House of Commons that the leaders of the Conference treated Lothian "not as a Prime Minister's Secretary, but as if he were an emissary to the Conference, and a very important one."(6) The Round Table had been organized by Lord Alfred Milner in the tradition of Oxford feudalist John Ruskin, and was designed to fulfill the yearning of Cecil Rhodes for a new kind of white racialist world empire, in which the independence of the republican United States in particular was extinguished. The core of the Round Table group was assembled from among the "Kindergarten" of Oxford-trained aides to Lord Milner in South Africa. Lord Lothian was the first editor of the "Round Table" quarterly, and one of the spiritual leaders of the group—he moved from early training for the priesthood at the (Benedictine) Oratory School at Edgbaston, into Christian Science. Lothian was the chief executive of the Rhodes Trust, adminstering the Rhodes Scholarships to bring Americans and other "colonial" students to Oxford. At the peace conference, Allen and John Foster Dulles made the acquaintance of the principal members of this faction, and were all but formally inducted into the Round Table group. In a letter to Round Table founder Lionel Curtis, Lord Lothian expressed the crucial difference between the British Round Table's racial views shared by the Dulles brothers, as we have seen in John Foster's letter to his father—and the viewpoint of the American System: The real problem is going to arise from the treatment which must be accorded to politically backward peoples. The difficulties which I foresee will arise from the fact that there is a fundamentally different concept in regard to this question between Great Britain and South Africa on the one side and the United States and Canada . . . on the other. I need not of course expound our view- as to the necessity of civilized control over politically backward peoples.... The inhabitants of Africa and parts Asia have proved unable to govern themselves . . . because they were—quite unableto withstand the demoralizing influences [i.e. desire for self-sufficient modern industry] to which they were subjected in some civilised countries, so that the intervention of an European power is necessary in order to protect them from those influences.... The American view ... is quite different.... The extent of this work after the war, sometimes known as the white man's burden, will be so vast that it will never be accomplished at all unless it is shared.... Yet America not only has no conception of this aspect of the problem but has been led to believe that the assumption of this kind of responsibility is iniquitous imperialism. They take an attitude towards the problem of world government exactly analagous to the one they took during the first three years of the war toward the problem of the world war [emphasis added]. ...[It makes] an immense difference ... whether America comes to learn its responsibility in regard to this matter quickly or slowly. If they are slow in learning we shall be condemned to a period . . . of strained relations between the various parts of the English-speaking world. [We must] get into the heads of Canadians [sic] and Americans that a share in the burden of world government is just as great and glorious a responsibility as participation in the war.(7) To continue the relationship they had established at the peace conference with Americans who agreed with these objectives— including ending American national sovereignity—Lothian, Curtis and the other Round Tablers set-up two organizations: in England, the Royal Institute for International Affairs, and a sister organization in America, the Council on Foreign Relations.(8) John Foster Dulles was to assume great responsibility for the development of the latter British-initiated group in New York. A 1953 CFR publication on the problem of "Intimate Cooperation by Two Democracies" (i.e., Britain and the U.S.) described the relationship: "The Royal Institute of International Affairs and the Council on Foreign Relations were founded in 1920 as a result of discussions between members of the British and American delegations at the [Versailles] Peace Conference in Paris in 1919. The two institutions, though completely independent, have developed their work along parallel lines in Britain and the United States." The officers of the CFR, in 1953, included R.C. Leffingwell, a partner of J.P. Morgan, Jr., Chairman; Henry M. Wriston, chairman.of First National City Bank, President; David Rockefeller, chairman of Chase Manhattan Bank, Vice-President; George S. Franklin, Jr., the protege and inductee of John Foster Dulles, Acting Executive Director; Allen Dulles and Averell Harriman, Board Members; and Arthur Dean, chief executive of Sullivan and Cromwell, member of the Committee on Studies. The State Department and the Hitler Project At Versailles Allen Dulles met and professionally fused himself to a man through whom he could fulfill his early desire to "become an intelligence operative just like" British spy Alex Gaunt: T.E. Lawrence, "Lawrence of Arabia." The world of British intelligence which Dulles entered, which through the Dulles brothers was amalgamated with the American service, was not in the philosophical sense a Western agency. • T.E. Lawrence was chief of the Arab Bureau, using British run radical Arab movements such as the Islamic fundamentalist Muslim Brotherhood to reorganize power in the Middle East. • The "idea man" for the British Intelligence Arab Bureau at that time, and head of Saudi Arabian operations, was Harry St. John Philby; his son and disciple Harold "Kim" Philby was to take official charge of coordinating the American and British intelligence services beginning in 1949. He trained the American officers for the Central Intelligence Agency then being formed, and was in "close, almost daily contact with Allen Dulles. "(9) Kim Philby finally defected to the Soviet Union as a "lifelong communist." • Director of British Intelligence for the Balkans and the Middle East in the post-World War I period was Oxford historian Arnold Toynbee, the pro-feudalist who would become chief of the combined British intelligence services for World War II. The official history of Allen Dulles's career path in the post-World War I era is as follows. By mid-1920 he was First Secretary of the American Embassy in Berlin, where he could help set in motion the operations for a New Germany in which older brother John Foster would play such a large part. In 1920 he was posted to Turkey, where he wrote back reports on T.E. Lawrence's entire gamut of interests: Arab nationalism; Britain's rivalry with the French in the Near East; and the problem of Turkey's "dictator" Kemal Ataturk, who moved to free his country of the entire British- Islamic fundamentalist priestcraft. From 1922 to 1926 Allen Dulles was head of the Near Eastern section of the U.S. State Department. Allen Dulles was in post-Versailles Germany (1919-20) as First Secretary (day-to-day operations chief) of the U.S. diplomatic mission in Berlin; the American charge d'affaires in Berlin was Ellis Loring Dresel, who had worked on intelligence and counterespionage with Dulles in Berne, and before that with Dulles at the Versailles Conference. Both Dresel and Allen Dulles were appointed and closely supervised by Dulles's uncle, Secretary of State Robert Lansing. While Dulles and Dresel worked out of Berlin, a young American captain, 25-year-old Truman Smith, was rapidly gaining contacts and sophistication as the chief political assistant to the Office of Civil Affairs in the U.S. Army occupying Germany. Smith hailed from an old Connecticut establishment family: A brother of his great grandfather named Nathaniel Smith had been a principal organizer of the Hartford Convention for the diehard Tories in 1814; his grandfather, Connecticut Senator Truman Smith, was the national manager of the Whig Party when it collapsed and disintegrated in the 1850s. In June 1920, Smith was brought into the Berlin diplomatic mission to be "military observer," a post he held on and off until 1939. In mid-July 1920, Allen Dulles was back in Auburn, New York at his parents' house, announcing that he would marry Clover Todd, the daughter of a Columbia University professor, and a very dose friend of Truman Smith since 1915. In 1921, Robert Murphy, who had served under Allen Dulles in Berne, Switzerland, during World War I, was called in to serve as consul in Bavaria. These were the State Department representatives on the scene as the Weimar Republic was born in Germany. On October 301 1922, Benito Mussolini's fascist Black Shirt army entered Rome and seized power in Italy. British diplomat Ivone Kirkpatrick revealed later that Sir Samuel Hoare, a British "staff officer in charge of certain branches of military intelligence," had instructed Mussolini to beef up his fascist gangs for use against anti-war elements during World War I, and that British intelligence had begun paying Mussolini at that time. Two weeks after Mussolini took over Italy-(November 1522, 1922), Truman Smith was dispatched to Munich by the new U.S. Ambassador to Germany, Alanson B. Houghton. In Bavaria, Smith set himself to the task of helping spread the fascist revolution into Germany. Smith gave only this report of the visit in his memoirs: I talked at length about National Socialism with the Munich consul, Mr. Robert Murphy (later a very distinguished American ambassador), General Erich Ludendorff, Crown Prince Ruprecht of Bavaria, and Alfred Rosenberg. The latter became the political philosopher of the Nazi party. On this visit I also saw much of Ernst F. S. Hanfstaengl, of the well-known Munich art family. "Putzi" was a Harvard graduate and later became Hitler foreign press chief. Hanfstaengl states in his 1957 memoirs, Unheard Witness, that it was I who brought him into contact with Hitler. This may well be so, but the actual facts of this introduction are not firmly fixed in my memory. My interview with Hitler lasted some hours. The diary I kept in Munich indicates that I was deeply impressed by his personality and thought it likely that he would play an important part in German politics. I must confess, however, that I did not see him as the future ruler of most of Europe. (10) On November 25, 1922, the Military Attache's Office in Berlin filed Smith's report to the Division of Military Intelligence in the War Department in Washington. In that report, Smith pitched in to help "sell" Hitler to the Americans, as the necessary stern medicine to ensure Germany's responsibilities for its debts despite public opinion, to stop Communism, and to break labor resistance to austerity. [In the] World War [Hitler was] wounded several times, he was given the Iron Cross, 1st class, for bravery.... His ability to influence a popular assembly is described as uncanny. In private conversation he disclosed himself as a forceful and logical speaker, which, when tempered with a fanatical earnestness, makes a very deep impression on a neutral listener. Smith paraphrased Hitler: His basic aim is the overthrow of Marxism . . . and the winning of labor to the nationalist ideals of state and property.... The clash of party interests has proved stronger than love of nation . . . demonstrat[ing] the impossibility of Germany's rescue from her present difficulties through democracy. His movement aims at the establishment of a national dictatorship through nonparliamentary means. Once achieved, he demands that the reparations demands be reduced to a possible figure, but that done, the sum agreed on be paid to the last pfennig, as a matter of national honor. To accomplish this, the dictator must introduce universal reparations service and enforce it with the whole force of the state. Es power during the period of fulfillment cannot be hampered by any legislature or popular assembly.... He believes that the "war of revenge" preached in certain national circles is an utter absurdity.... The question whether Hitler's National Socialists can play a role in Germany equivalent to that played by the Fascisti in Italy can still not be answered with any degree of certainty.... It is believed that not only in Munich, but in all Germany, there is a fertile field even among the factory workers for a national movement.... The discipline of the German laborer to his union is a well-recognized fact. The breaking off of this relationship is fundamental for the success of any nationalist labor movement.(11) Smith's report echoed an entry in his diary for November 19, 1922. General Erich Ludendorff, who had-first deployed Corporal Adolf Hitler as his political spy and in 1919 directed him into the tiny Nazi Party, told Smith "America must understand that only a strong nationalist government in Germany can preserve the country from chaos and insure reparations being paid to the Allies."(12) In a draft magazine article prepared in June 1924, Smith reports: "Preaching a gospel of work and attacking labor leader and socialist agitator as false friends of the German people, the Hitler doctrine has done its share to resurrect again the old will to love in their work, formerly so deeply embedded in the German. The results have become more and more noticeable to the foreign traveler in Germany in recent months.... It is perhaps a pity, but if merely the tremendous tasks bound up with the execution of Germany's reparations obligations are considered, much can be said for the necessity of Germany's adopting a dictatorial form of government for the next decade." Smith relates how useful anti-Semitism may be in drawing the ire of the German population away from those Round Table bankers responsible for the Versailles Treaty, and the plunder and collapse of the German economy that followed- from it. ". . . More serious, is the charge that an undue percentage of Germany's wealth has passed during the war and the period of inflation into Jewish hands. This cannot fail to stir the German middle-class citizen who has not been financially acute enough to save his little wealth from submergence.... The success or failure of the Racialist movement is, however, unimportant in comparison with that dim, scarcely yet felt, reawakening of the patriotism of the German people, of which it is but an excrescence.... The probability of a patriotic, nationalistic Germany of the future must still be faced."(13) We may now see if perhaps Truman Smith was less than candid when he called Nazism "but an excrescence" of "the reawakening of the patriotism of the German people." 'Putzi' Indeed, it was Truman Smith who introduced Hitler and Hanfstaengl deployment which Hanfstaengl, as we shall see, viewed as an assignment from "American" intelligence to work for the Nazis. A recent slogan in Boston politics had it that "before Hitler there was Harvard. " Its truth is borne out in the person of Ernst "Putzi" Hanfstaengl. Putzi's father was a fancy art dealer in Munich, catering to the art-trading aristocratic flotsam and jetsam from eastern Europe who tended to collect in Bavaria. The Hanfstaengls had been privy councilors to the Coburg Princes. Putzi's mother was a Sedgewick from Boston, a "Boston Brahmin." Thus, around the turn of the century Hanfstaengl came to America and entered Harvard University. At Harvard Putzi became close to a son of President Theodore Roosevelt, and was invited to the White House. He and Teddy Roosevelt hit it off, and their friendship continued until Roosevelt's death in 1919. After Harvard, Hanfstaengl went to work managing his family's bookshop-to-the-aristocracy on New York's Fifth Avenue. When World War I came, he would normally have been interned along with other German aliens, but he was kept free by a well-connected lawyer—Elihu Root, who had been Teddy Roosevelt's Secretary of State. Around 1920 Hanfstaengl returned to Germany. Wanting it to be understood that he did his work as an "American agent, " Hanfstaengl recorded in his memoirs 14 his assignment by U.S. military attache Captain Truman Smith, during Smith's fateful visit to Bavaria in 1922: To link up with a rising young politician who seemed certain of success— Adolf Hitler. Under the watchful eye of Consul General Robert Murphy, Putzi Hanfstaengl joined Hitler's Nazi movement. He personally financed the conversion of the Nazi newspaper into a daily. He introduced Hitler to the top ranks of the Bavarian aristocracy, the friends of the Hanfstaengls, who opened their purses for the mustachioed Corporal. Among these family friends were the Bruckmanns, the publishers of British-linked geopolitician Karl Haushofer. In 1923 Hitler made his first attempt at revolution, the "Beer Hall" putsch. Personally, physically on hand, throughout the entire affair, was U.S. Consul General Robert Murphy in the Beer Hall and in the streets when the shooting started. (15) So was Putzi Hanfstaengl, at Hitler's side as the Fuhrer's representative to the foreign press correspondents who gathered in Munich. The coup attempt collapsed. Hitler fled Munich and was driven to Hanfstaengl's country house, where Putzi's wife and sister hid and nursed him. Hitler was arrested there after two days, and sentenced to prison for treason. There he wrote Mein Kampf, and there Putzi and his aristocratic circle visited him to plot the future of the Nazi movement. As the Nazi movement grew, Hanfstaengl with his American connections remained Hitler's spokesman to the foreign press, most importantly the New York and London papers. He held this job until 1937. But Hanfstaengl had other talents. When in Boston, he had composed marches to be played at the Harvard football games. He explained to Hitler how the masses were in this fashion whipped into mindless enthusiasm, and suggested he should do the same for the marching band of the SA, the Nazi private army. Hitler agreed, and Hanfstaengl composed new marches, including the one the Nazis played as they marched through the Brandenburger Gate after Hitler finally became Chancellor. Hanfstaengl reports that what was first "Harvard, Harvard, Rah Rah Rah!" became "Sieg Heil! Sieg Heil!" Ernst Hanfstaengl eventually fled Germany, in the late 1930s. He was interned in a British prison camp, but was released with the help of "London friends in high places," and was eased into a job with American military intelligence—"interpreting the Nazis to the Americans." This lasted only a few months, however, until President Franklin D. Roosevelt decided that Putzi was an unregenerate Nazi and dumped him back in prison. World Government: First Approximation- While the Hitler project was being assembled and pumped up in Bavaria, John Foster Dulles was helping to fashion an international political and financial system which could use the services of Hitler. In post-World War I Europe, attorney Dulles officially represented the British banking group—the Bank of England and the J. P. Morgan firm—to which the victorious Allies had given the power to arrange Germany's reparations payments. Just after Versailles, John Foster Dulles roamed chaotic Germany gathering intelligence, wandering in and out of areas controlled by communist rebels, while his brother Allen put together the Berlin mission which included Truman Smith. In Germany, like his younger brother Allen, John Foster made connections which turned out to be central to the Hitler project: among them, a minor official of the Allied-created German banking authority, Hjalmar Schacht—the man who later organized financing for Hitler, from American, British and German oligarchs, and ran the Nazi economy for Hitler. On March 20, 1922, the minor official Schacht addressed a proposal to John Foster Dulles, Esq., for a new international system. (16) Schacht and Dulles were already on the same team; Schacht's father had been an employee of the Equitable Life Assurance Society from 1885 until 1919, and had been made the co-director of Equitable's German branch in 1914 when J. P. Morgan owned Equitable. Hjalmar Schacht proposed: . . .A solution of the reparation problem . . . to give Europe a couple of years say five to restore . . . steady conditions in the different countries.... Germany must find a loan of say 5 billions of gold marks, proceeds of which have to be handed at once to France.... My idea is, not to issue a state-loan but a loan of private corporations. I want to form, say, four private German corporations; to each of these 4 corporations the German government has to grant the monopoly of exports of some bulk articles as for instance coal, potash, sugar and cement, each corporation controlling the export of one of these articles. The monopoly has to be granted for 20 years. The inland producers have to deliver their production to the corporations.... The corporations are to issue loans at a total amount of 5 billions gold marks.... As the total export of the 4 corporations can be estimated at 500 million gold marks, the amount of the loan will be repaid within 10 years.... The loan which I propose is not . . . based on any political treaty.... The repayment of the loan is under control of first [sic] industrial and commercial people of the highest standing.... This letter was forwarded by its addressee, John Foster Dulles, to Thomas W. Lamont, partner of J.P. Morgan, with Dulles's plaudits: "Dr. Schacht is one of the ablest and most progressive of the younger German bankers, and it seems to me that his plan may contain some thoughts which may have some merit."(17) Two weeks later Dulles responded enthusiastically to Schacht's proposal: "If a period of political stability could be assured, I have no doubt that bonds issued by such monopolistic corporations as you mention would command the confidence of the investing public." Dulles added his own suggestions: "I assume that if the bonds were tax exempt in Germany quite an amount could be raised in Germany." Over the next several years, the years of the Weimar Republic, the essence of this Schacht-Dulles-Morgan plan was put into effect. Hjalmar Schacht was appointed President of the German national bank, the Reichsbank; he carried out austerity programs and shut down productive investment, to "save money" that could go for debt payments. Certain German coporations, attaining monopoly status, were linked with foreign concerns in world-spanning cartel arrangements. The most famous cartel was the fusion between the I.G. Farben chemical company and the Standard Oil Company of New Jersey. Others involved metals and primary agricultural and industrial commodities. In such a cartel, the parties set certain world price structures and production limits for their industries, pooled their patents, and agreed to block or destroy any parties outside the agreement, in any country, who set competitive pricing or production policies, or who came out with new inventions or technology which might disturb the cartel's control. The cartels were simply the extension onto a world scale of the "trusts" built up by J.P. Morgan to control and police American industry during Teddy Roosevelt's presidency. With massive credit flows associated with reparations going into and out of Germany, the entire arrangement amounted to a British-directed, German-centered police apparatus over the world's business a first approximation of the world government spoken of by Lord Lothian. John Foster Dulles had been, since 1919, the lawyer for Richard Merton, founder of I.G. Farben. In 1924 attorney John Foster Dulles was selected by J. P. Morgan to draw up the Dawes Plan, for reshaping Germany's reparations payments; that same year, Thomas Lamont arranged official loans from J. P. Morgan to bail out the new, shaky dictatorship of Benito Mussolini over Italy. John Foster Dulles became in 1926 chief executive of Sullivan and Cromwell—the law firm by which all the cartels were represented. After Hitler's 1933 takeover in Germany, the cartels provided the main industrial and commercial underpinning for the Nazi rearmament of Germany. Among the clients of Sullivan and Cromwell were: • I.G. Farben, the chemical giant which ran the factory at the Auschwitz death camp, under a cartel agreement with Jersey Standard. I.G. Farben was also fused in a cartel with International Nickel of Canada, of which John Foster Dulles was part owner and a director. When I. G. Farben's workers at the Auschwitz factory grew exhausted, they—with masses of Jews and other prisoners—were exterminated with I. G. Farben's poison gas, Zyklon B. • Steel baron Fritz Thyssen, who confessed his financial backing for Hitler in a famous book called I Paid Hitler(perhaps Dulles should have written a foreword titled, "I Brokered the Deal"). • Gestapo General Kurt von Schroeder and the Anglo-German Schroeder Bank. Allen Dulles was a director of the Bank throughout the 1930s, as Schroeder's shamelessly supported Hitler's election efforts and backed his dictatorship's commercial ventures. • Schroeder, Rockefeller and Company investment bank of New York. • The North German Lloyd shipping line; Dulles represented this company in a 1933-34 New York court case, when its New York office was the location of a Nazi Party recruiting and espionage cell involving 500 individuals. (18) • International Telephone and Telegraph Company of Germany, of which Dulles's law partner Gerhardt Westrick was Chairman. ITT ran Germany's telephones and produced fuses, radar and other equipment for the Nazi army throughout World War II. • Ford of Germany, of which Dulles's law partner Heinrich Albert was chairman. Ford built cars, trucks, and armored vehicles for the Nazis. and • General Motors of Germany. Filling the Strange Gap in Averell Harriman's Biography In 1930, Dulles's correspondent Hjalmar Schacht resigned from the presidency of the Reichsbank, to spend the next three years recruiting support for a Hitler dictatorship. After Hitler took power in January 1933, he made Schacht the Nazi economic czar, with special responsibility for the creation of a war machine. Then, at the outset of 1933, Germany was bankrupt, masses of its workers were unemployed, and the country had no significant military power. In these early months the entire Nazi enterprise was vulnerable to outside intervention, which could have crushed it. It was at this point that the commercial and political partnership of Averell Harriman and John Foster Dulles played a central role, with the British Round Table faction, in cementing the Nazi regime in power. In May 1985, the 94-year-old Harriman received a medal from the government of the Soviet Union commemorating what is, in the Soviet view, his exemplary work for peace; Harriman has been for many years the "elder statesman," the power center of the Democratic Party's pro-Soviet wing. But Harriman also had another political career: pro-Nazism, which entirely coheres with pro-Sovietism. To situate Harriman's pro-Nazism, and the Harriman-Dulles partnership, it is necessary to fill what has been a large gap in the heretofore published biography of Averell Harriman: his international political and racial-pro-eugenics, pro-Nazi—activities in the decades before World War II. W. Averell Harriman's father, Edward H. Harriman (1848-1910), was a small New York stock broker who was boosted into wealth and powerful connections by association with managers of the old-line pro-slavery wing of the Democratic Party— the Schell brothers, August Belmont, and Sin forth--and through them the Astors, Vanderbilts and other British-linked financiers. Great fame came to E.H. Harriman as an owner and monopolist over railroads. His most consistent financial backing came from the Kuhn Loeb investment banking firm.(19) Kuhn Loeb's chief executive, Jacob Schiff, was himself a lifelong partner, in fact a disciple, of the British financier Sir Ernst Cassel, Schiff and Cassel interested themselves in the railroad investments of many nations, but Cassel's trips to America were not merely for the purpose of talking business, as business is normally understood. Ernst Cassel was the personal banker for the British Round Table, for their Fabian Society, and for many of the Round Table's investment schemes in the Middle East. Another partner of Jacob Schiff, and the eventual chief executive of Kuhn Loeb, was Felix Warburg, whose brother Max ran the M.M. Warburg banking firm in Germany. These family connections were crucial for E.H. Harriman's son Averell, in his career as an American representative of the British Round Table faction. Late in his life E.H. Harriman became very much involved with the racialist "Conservation" movment, and with the affairs of the American Museum of Natural History in New York. After his death in 1910, his wife and children used considerable sums from his immense fortune to finance the new work of the "Conservation" movement: eugenics, or Race Purification.(20) Widow Mary A. Harriman donated 80 acres of land and buildings in 1910 to establish the Eugenics Records Office (ERO) and the Eugenics Research Association in Cold Spring Harbor, New York. Mrs. Harriman, her daughter Mary Rumsey Harriman, and her son Averell invested over $500,000 in the eugenics center over the next several-years, making it the international center for race science. The monthly Eugenical News, put out by the ERO director Charles Davenport and superintendent Harry H. Laughlin, was circulated to top policymakers throughout America, and its articles were translated into German for use by the fledgling Nazi Party. The ERO's Committee to Study and Report on the Best Practical Means of Cutting Off the Defective Germ-Plasm in the American Population released its final report in 1914. It called for the forced sterilization of "defectives" including paupers, the blind, the deaf, criminals, the feebleminded, epileptics, the weak and people with tuberculosis and "hereditary laziness." The Harrimans' ERO report, mass-distributed to American legislators, clergymen, editors and professors, is identical in viewpoint to the philosophical statement written by John Foster Dulles in 1911—and to Mein Kampf: It is held by some schools of social workers that better schools, better churches, better food, better clothing, better living and better social life will remedy almost-any social inadequacy in individuals. The studies of this committee point strongly in the opposite direction.. They prove conclusively that much social inadequacy is of a deep-seated biological nature, and can be remedied only by cutting off the human strains that produce it. The Harrimans' Eugenics Records Office wrote an implementation report in 1915,21 calling for 15 million Americans to be sterilized—to produce "the perfect man" by 1980. The Second International Eugenics Congress was held in New York's American Museum of Natural History in 1921. Averell Harriman, a member of the Museum's board since 1918, gave $1,000 of his own money and served on the Museum Executive Committee hosting the conference; his mother and sister were the primary hostesses. Members of a congressional Committee on Immigration were transported from Washington to view the racialist eugenics ex[h]ibits, and to hear tirades against allowing continued immigration of "inferior" ethnic groups such as Italians and Jews. Also in 1921, the Harrimans' Eugenics Records Office issued its "Model Eugenical Sterilization Law" drafted by ERO superintendent Harry H. Laughlin, which added to the earlier candidates for forcible sterilization "orphans, the-homeless, ne'er-do-wells,- and tramps." The Third International Eugenics Congress was held in 1932, again at New York's American Museum of Natural History. It was also financed by the Harrimans and hosted by Averell's mother and sister. This conference elected Dr. Ernst Rudin of Germany the president of the International Federation of Eugenics Societies and gave him a medal. It was Rudin who, in 1934, wrote the law "For the Protection of German Blood and German Honor," implemented by the Nazi regime to remove citizenship from Jews. Rudin also wrote the Nazi sterilization law "For the Prevention of Hereditary Diseases in Posterity," lifted almost word-for-word from the Harriman ERO text. Two million Germans and millions of conquered foreigners were sterilized by the Nazis between 1933 and 1945. While he and his family were financing the fascist movement in America, Averell Harriman became very interested in Germany. He formed a partnership with the Hamburg-American shipping line after the First World War, developing the largest merchant fleet owned by an American. He renewed his father's financial partnership with the Warburgs, underwriting the bonds of the new Soviet regime along with M.M. Warburg. Harriman, Dulles, and Hitler We now review the sequence of events in 1933, involving Harriman, John Foster Dulles and Hjalmar Schacht. Adolf Hitler took power in Germany in January 1933, after the Nazis scored a surprising success in the elections in the state of Lippe. Hitler put Dulles's friend, Hjalmar Schacht, in charge of the Nazi economy. Schacht declared that in most cases payments of German private and public debts to foreigners would be made in "blocked marks," or scrip which had no international value except to exchange for German exports under Schacht's rules. On May 19, 1933, a note (signed "R.M.") on the stationery of Brown Brothers Harriman(22) was addressed to John Foster Dulles, referring to instructions, advice and information Harriman's firm was giving Dulles for his imminent trip to Germany. On Saturday, May 20, 1933, the following article appeared in the New York Times financial section: Importers to Use 'Blocked' Mark Balances; Syndicate Formed for Trade With Germany The formation of a company to provide means for the liquidation of German blocked mark balances through the financing of imports to the United States from Germany was announced yesterday. The new company is to be called the Syndicate of American Creditors Owning German Blocked Accounts. The Harriman International Company is to be syndicate manager. . . .It is estimated that about $800,000,000 of American short-term capital . . . is locked up in Germany and cannot be withdrawn. The syndicate plans to use these "blocked" marks, with the consent of the German Exchange Control, for partial payment by American importers for German goods. About 150 firms and individuals holding from 25,000,000 to 30,000,000 of blocked marks are expected to become members of the syndicate. The Times article carried the byline of no reporter, and mentioned no names—other than "Harriman International."" How Harriman had worked out such a sweet arrangement with Hjalmar Schacht—to be manager of exports from Nazi Germany to America, under Schacht's dictatorial control—has never been revealed. On May 21, 1933, John Foster Dulles sailed to Germany as the representative of Brown Brothers Harriman, Dillon Read,Kuhn Loeb and all private investment banks and Wall Street firms. Accompanied by a Sullivan and Cromwell subordinate and three employees of Chase bank, John Foster Dulles negotiated in Berlin with Hjalmar Schacht on the financing of the new Hitler government. British, Swiss, Dutch and Swedish investors were also represented. A large pile of correspondence from that trip, between Wall Street and Dulles in Berlin, some of it in code, gathers dust in the Dulles papers at Princeton University. By the end of June 1933, Dulles, Schacht, and the others had worked out a deal for looting the German population and stopping payment to American holders of German bonds, while paying the Swiss their due. In November 1933, the father of the present author, Jacob Chaitkin, filed suit in New York municipal court, to compel the North German Lloyd company to pay a client of his $30 they owed her. Jacob Chaitkin's opponent in the court case was John Foster Dulles, representing the shipping line, claiming that North German Lloyd under German government decrees (which Dulles himself had personally arranged) was unfortunately forbidden to pay its American debts. Jacob Chaitkin argued that Schacht had not declared a legal debt moratorium, because his decrees were discriminatory between the creditors: against the Americans and for the Swiss. The suit had a desperate political motivation—to block the financial operations which Hitler was using to consolidate his regime of terror and to arm the Nazi state for war. Dulles lost the $30 case; a writ was issued to tie up a 30,000 ton Lloyd liner in New York harbor until the coupon was paid, and a precedent was set that Jacob Chaitkin and others used to stop millions of dollars from going to Hitler.(23) But Dulles, Harriman, and their allies stepped up the trade between -Nazi Germany and the United States. American Jews and others including the American Federation of Labor organized a boycott of German imports. In 1934 the American Jewish Congress hired Jacob Chaitkin as the legal director of their Joint Boycott Committee. Chaitkin negotiated with Macy's and other department stores; Macy's and others stopped selling goods from Nazi Germany under threats of demonstrations and boycott. With the news of increasing terror against German Jews, Americans paraded and held mass protest meetings to mobilize support for the boycott and other actions against Hitler. While the Jewish War Vets, Hadassah, many Zionist organizations, orthodox Jewish groups and Eastern Europeans participated in the boycott, two Jewish organizations opposed the boycott and warned Jews not to take any public action whatsoever against the Hitler regime. These two anti-boycott groups were the B'nai B'rith and the American Jewish Committee, whose leaders were deeply involved in the politics, commerce and—to the extent Jews were allowed—the social life of the pro-Nazi Harriman-Dulles circle, and the Venetian-German-"Jewish" Warburgs.(24) --cont-- Aloha, He'Ping, Om, Shalom, Salaam. Em Hotep, Peace Be, Omnia Bona Bonis, All My Relations. Adieu, Adios, Aloha. Amen. Roads End Kris DECLARATION & DISCLAIMER ========== CTRL is a discussion and informational exchange list. 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