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WORST KEPT SECRETS OF THE BUMBLING BEAR (Part 1 of 2)
by Jared Israel
[Originally Posted 22 May 2001]
[Reposted 2 December 2001]
=======================================

Below is an article from the 'San Francisco Bay Guardian', entitled, 'The CIA's 
Worst-Kept Secret.' It discusses some recently unclassified CIA files. These 
documents, 18,000 pages in all, confirm that U.S. intelligence recruited and protected 
Nazis starting at the end of World War II.

I am posting and writing about this article for two reasons. First, it includes some 
useful information about the Nazi-CIA marriage. Second, it presents that information 
from a perspective that I consider at once mistaken and widespread; hence worth 
discussing.

The article was written by Martin Lee. Mr. Lee argues that after World War II, Nazi 
spies duped the U.S. into hiring them, thereby protecting themselves and their 
networks from prosecution.

He cites the example of General Reinhard Gehlen. Gehlen had been chief of Nazi 
intelligence in the Soviet Union and Eastern Europe. According to Mr. Lee, Gehlen 
fooled spymaster Allen Dulles, who later became Director of the CIA, in the following 
way:

"Gehlen was quickly spirited off to Fort Hunt, Va. The image he projected during 10 
months of negotiations at Fort Hunt was, to use a bit of espionage parlance, a 
"legend" --one that hinged on Gehlen's false claim that he was never really a Nazi, 
but was dedicated, above all, to fighting Communism. Those who bit the bait included 
future CIA director Allen Dulles, who became Gehlen's biggest supporter among American 
policy wonks. " (From the text below)

There's a bit of a problem here.

Starting more than a decade earlier, Allen Dulles, a leading diplomat and spy, and his 
brother, John Foster, a Wall Street insider, had created a financial-intelligence 
apparatus to assist the Nazis. So Dulles had long-standing, friendly relations with 
Nazis. That being the case, why would Dulles be upset if he 'learned' that Gehlen (a 
top Nazi spy) was a Nazi? (1)

Moreover, Gehlen had not been some cloistered spy. His job had not been simply to 
coordinate the gathering of information. He had been a key leader of the work of 
fascist groups in the occupied East, such as the Iron Guard in Romania, the Latvian 
Vanagis and the Croatian Ustashe. These groups committed the most unimaginably brutal 
atrocities against 'Untermenschen', Jews, 'gypsies', Serbs and other Slavs and 
Orthodox Christians, as well as against anti-Nazis, both Communist and non-Communist, 
including various Nationalist groups, which resisted the Nazis. Gehlen was a leading 
war criminal.

Did Allen Dulles know all this? Of course he knew all this. He was a U.S. spymaster 
with almost three decades experience and he had worked with the Nazi leadership for 
two decades. Dulles arranged to have Gehlen secretly brought to the U.S. precisely so 
that the Russians wouldn't get hold of him and put him on trial for war crimes and 
hang him.

Once they had Gehlen safely in the U.S., Allen Dulles and other top U.S. Intelligence 
operatives met with Gehlen and planned a nightmare creation: a vast European 
spying-and-subversion apparatus, controlled by Washington but staffed by hundreds and 
then thousands of Nazi war criminals. The Nazis may have lost the war but Nazism had 
found new life. (6)

Since Allen Dulles knew that Gehlen commanded an army of monstrous war criminals in 
Eastern Europe and Russia, what is the significance of Dulles' supposed (though 
frankly unbelievable) belief that Gehlen was not a Nazi?

Mr. Lee's suggestion that Dulles' rescue and empowerment of Gehlen was somehow less 
monstrous because he was 'fooled' about Gehlen's Nazi beliefs is typical of the way 
the mass media has been whitewashing American foreign policy since 1945.

According to this reasoning, it is a crime if Nazis (or Islamist terrorists) go out 
and commit atrocities on their own. But if they commit atrocities at the behest of 
American leaders who are a) naive about who these Nazis (or Islamist terrorists) are 
and b) are only using these Nazis or terrorists in pursuit of good American values, 
then it is OK. This treats the American foreign policy establishment as if it were 
some perpetual teenager who may have fallen in with a bad crowd, but heck, he'll grow 
out of it.

Very few of us will ever read the declassified Nazi-CIA documents. Articles like Mr. 
Lee's from the 'San Francisco Bay Guardian', a left-leaning newspaper, must inform our 
view. Throughout the article, Mr. Lee portrays Washington as naive, trapped by a Cold 
War mentality into recruiting Nazis (or, as he suggests at the end of his article, by 
recruiting too many of them...you know, Nazis are OK, but only if taken in 
moderation...)

Can it be that a smart guy like Mr. Lee really believes that the very sophisticated 
men who shaped US foreign policy over the past 50 years unknowingly blundered into bed 
with the worst butchers of the century? I cannot say; but by making this absurd idea 
the theme of his article, Mr. Lee, the critic, makes himself an apologist for the 
thing he is seemingly attacking.

DID THE NAZI-CIA MARRIAGE TAKE PLACE BECAUSE WASHINGTON WAS IN A "COLD WAR MENTALITY"?

This notion, which is put forward by Mr. Lee, is contradicted by two important facts:

Fact # 1 - No, Because It Started Too Early

Washington began working with high-placed officials in the Vatican at the end of the 
war to set up Nazi escape routes. Some of the Nazis whom they cooperated in rescuing 
were spies. Others were just Nazi butchers.

The escape routes, appropriately called 'ratlines', started in Eastern Europe and the 
Balkans, particularly Croatia, and terminated in the U.S., Canada, Australia, Latin 
America, and so on. How could it be true that the U.S. got swept up in organizing the 
ratlines due to a Cold War mentality when the Cold War hadn't yet begun? (2)

Mr. Lee is aware that the U.S. began rescuing Nazis before the Cold War began. He 
points out that this:

"...belies the prevalent Western notion that aggressive Soviet policies were primarily 
to blame for triggering the Cold War."

Point well taken. But at the same time, Mr. Lee writes:

"The early courtship of Gehlen by American intelligence suggests that Washington was 
in a Cold War mode sooner than most people realize." (From the text below)

What does this mean? If aggressive Soviet policies were not to blame for triggering 
the Cold War, why does Mr. Lee say that "Washington was [already] in a Cold War mode" 
at the end of World War II? Doesn't a "Cold War" require two sides?

What Mr. Lee probably means is that at the end of W.W. II; Washington was in an 
"Attack Russia!" mode. Indeed, it was precisely Washington's belligerent and criminal 
actions, such as rescuing Nazi war criminals, that created the international climate 
of hostility and threat which became known as the "Cold War".

In the decade and a half before World War II, Washington and Wall Street, including 
the the Dulles brothers and the grandfather and great grandfather of President Bush, 
played a dangerous game. They helped put the Nazis in power and aided them once they 
got in power. With their assistance, the shattered German war industry was rebuilt in 
record time.

Why did Dulles and the Walker/Bush family and others in the U.S. Establishment help 
finance the creation of a powerful, fascist state in Germany? They did it in large 
measure because they planned to use the Nazis to attack Soviet Russia.

Alas, as the poet says, the best laid plans of mice and men often fail. Instead of 
settling for their assigned role, of conquering Russia, the German Nazi/Corporate 
state decided to conquer everyone. Washington and London responded to this 
unacceptable ambition in a measured fashion. First, they allowed the Nazis to inflict 
maximum damage on the Soviet Union. Then they opened a Second Front (the Normandy 
Invasion) in order to prevent the USSR from liberating all of Europe and to make sure 
the Nazis were not completely crushed.

After World War II Washington didn't go into "Cold War mode." It simply continued with 
its plan of using Germany and the Nazis against the USSR. Except now the Nazi 
apparatus existed all over Eastern and Southern Europe (including in Russia) and 
Soviet influence was far more extensive as well.

Fact # 2 - No, because the U.S. Foreign Policy Establishment Didn't Use the Nazis Only 
to Spy

The Nazi murderers whom the U.S. helped rescue, in violation of law and decency, were 
not simply spies. Many of them were monstrous war criminals. And these war 
criminal/spies were not simply rescued, dumped in various countries, and then 
forgotten.

Instead the U.S. maintained a great network of the 'escapees' and their contacts all 
over Europe with three purposes:

* to spy;

* to nurture networks of fascists dedicated to infiltrating, subverting and sabotaging 
the socialist and non-socialist states of Europe, a network linked to U.S. 
intelligence (and to Germany);

* and to prepare a force that could be sent back into the socialist countries, 
especially the strategic Baltic states of Latvia, Lithuania and Estonia, and into the 
Balkans states, especially Yugoslavia, when the time was ripe.

The Nazi and pro-Nazi 'refugees' were maintained at the expense of U.S. taxpayers 
through programs such as the 'Assembly of Captive Nations' (3)

In the late 1980s and early 1990s many of the U.S.-protected Nazi war criminals 
(and/or their children) were shipped back to Eastern Europe and the Balkans where they 
helped to launch secessionist movements, install U.S. and German puppet governments, 
assassinate those who resisted and foster national hatreds. For example, returning 
Fascists helped Franjo Tudjman's neo-Nazi group, the Croatian Democratic Union, or 
HDZ, take over the Croatian Republic and launch a secessionist war against Yugoslavia 
in 1991. (4)

THE BUMBLING BEAR THEORY OF U.S. FOREIGN POLICY

Why do critics of U.S. foreign policy so often present Washington as a passive force? 
Why are we constantly told that the U.S. is being 'used by the Cuban exiles for their 
own agenda' or that the U.S. has 'screwed up once again by backing the Kosovo 
Liberation Army' and that 'sooner or later the Americans will find out what kind of 
monsters these Albanian secessionists are' and so on. (5)

Two explanations come to mind.

First, wittingly or unwittingly, people tend to censor themselves in confrontation 
with reckless power.

When one is criticizing an Establishment that bombs pill factories because it doesn't 
like the government (as the U.S. did in Sudan), that bombs Bosnia, Kosovo and Iraq 
with radioactive weapons and then sends its own and allied troops into the 
contaminated areas, that refuses to punish submarine commanders who cause the deaths 
of Japanese fishermen while performing daredevil stunts with nuclear submarines - in 
criticizing such an Establishment one may experience the temptation to exercise 
restraint.

If, for example, one argues that Washington was tricked into working with Nazis one 
may feel reasonably secure. One is not challenging the basic legitimacy of the Wall 
Street-Washington axis. But if one argues that the nightmares of U.S. foreign policy 
have been, like most large-scale human activities, planned, then one will be accused 
of being conspiratorial, or extremist, or worse. One may find that certain doors, 
previously open, are now shut tight. Or worse.

Second, American TV and films, viewed by people all over the world, project an image 
of the Innocent American official: kind hearted, too powerful for his own good; easily 
fooled and manipulated. This plays a big role in conditioning people to think of the 
U.S. government as a bumbling bear.

Since the movies are partly responsible for this nonsensical image of American 
leaders, let me paraphrase a famous movie speech by way of refutation:

"Don't be too sure we're as naive as we're supposed to be. That sort of reputation 
might be good business, toning down the critics and making it easier to deal with the 
enemy." (With apologies to Sam Spade in the 'Maltese Falcon', for which see 
http://www.filmsite.org/malt.html )

Was Washington an innocent bystander during World War II? It was most surely not. The 
OSS, predecessor of the CIA, was engaged all over Europe. OSS operatives knew - and 
reported - that monstrous crimes were being committed by Nazis, following which 
Washington recruited these same Nazis into its burgeoning covert apparatus, the most 
sensitive branch of the U.S. government.

Think about this. The OSS was a small organization. The Nazi apparatus was huge and 
well organized. Absorbing the Nazis into U.S. intelligence was like a garter snake 
eating a rat. What does this mean? It means the most powerful forces in the U.S.A. had 
decided that the CIA was to be, in essence, a Nazi organization.

Washington's goal was to break up the USSR and other Socialist states and bring them 
under U.S. domination. The way Washington planners viewed things, Nazis had many 
virtues. They respected capitalism. They despised a host of groups (including Serbs 
and other Slavs, 'Gypsies', other dark-skinned people, etc.) who tended to resist U.S. 
domination. They were good at playing on prejudice against these groups. Moreover, the 
intensity of their hate gave an energy of persistence to their work. They were skilled 
at demagoguery, subversion, assassination, and torture.

Numerous virtues; only one fault: a very bad reputation, regarding which, no problem 
unless the truth came out. And should the truth come out, (as it is indeed trickling 
out today) the important thing from Washington's point of view was and is to make sure 
the inevitable criticism has the proper slant. Let the critics declare that it was all 
a terrible, stupid, unforgivable mistake and we should learn 'our' lesson and never 
never do such bad things again.

Better to be attacked for being unforgivably stupid than for being unforgivably evil. 
To this end, President Clinton set up an 'Interagency Working Group' (IWG), made up of 
"scholars, public officials, and former intelligence officers who helped prepare the 
CIA records for declassification." It would appear that Mr. Lee has accepted the IWG's 
spin on the Nazi-CIA connection.

Below is the 'San Francisco Bay Guardian' article.

Following the article I have posted a few dissenting remarks.

-- Jared Israel, 21 May 2001

==================================================

The CIA's Worst-Kept Secret
>From 'San Francisco Bay Guardian', May 7, 2001

Newly Declassified Files Confirm United States Collaboration with Nazis
by Martin A. Lee

=============================================

"Honest and idealist ... enjoys good food and wine ... unprejudiced mind ..."

That's how a 1952 Central Intelligence Agency assessment described Nazi ideologue Emil 
Augsburg, an officer at the infamous Wannsee Institute, the SS think tank involved in 
planning the Final Solution. Augsburg's SS unit performed "special duties," a 
euphemism for exterminating Jews and other "undesirables" during the Second World War.

Although he was wanted in Poland for war crimes, Augsburg managed to ingratiate 
himself with the U.S. CIA, which employed him in the late1940s as an expert on Soviet 
affairs. Recently released CIA records indicate that Augsburg was among a rogue's 
gallery of Nazi war criminals recruited by U.S. intelligence shortly after Germany 
surrendered to the Allies..

Pried loose by Congress, which passed the Nazi War Crimes Disclosure Act three years 
ago, a long-hidden trove of once-classified CIA documents confirms one of the 
worst-kept secrets of the Cold War-- the CIA's use of an extensive Nazi spy network to 
wage a clandestine campaign against the Soviet Union.

The CIA reports show that U.S. officials knew they were subsidizing numerous Third 
Reich veterans who had committed horrible crimes against humanity, but these 
atrocities were overlooked as the anti-Communist crusade acquired its own momentum. 
For Nazis who would otherwise have been charged with war crimes, signing on with 
American intelligence enabled them to avoid a prison term.

"The real winners of the Cold War were Nazi war criminals, many of whom were able to 
escape justice because the East and West became so rapidly focused after the war on 
challenging each other," says Eli Rosenbaum, director of the Justice Department's 
Office of Special Investigations and America's chief Nazi hunter. Rosenbaum serves on 
a Clinton-appointed Interagency Working Group committee of U.S. scholars, public 
officials, and former intelligence officers who helped prepare the CIA records for 
declassification.

Many Nazi criminals "received light punishment, no punishment at all, or received 
compensation because Western spy agencies considered them useful assets in the Cold 
War," the IWG team stated after releasing 18,000 pages of redacted CIA material. (More 
installments are pending.)

These are "not just dry historical documents," insists former congresswoman Elizabeth 
Holtzman, a member of the panel that examined the CIA files. As far as Holtzman is 
concerned, the CIA papers raise critical questions about American foreign policy and 
the origins of the Cold War.

The decision to recruit Nazi operatives had a negative impact on U.S.-Soviet relations 
and set the stage for Washington's tolerance of human rights' abuses and other 
criminal acts in the name of anti-Communism. With that fateful sub-rosa embrace, the 
die was cast for a litany of antidemocratic CIA interventions around the world.

The Gehlen Org

The key figure on the German side of the CIA-Nazi tryst was General Reinhard Gehlen, 
who had served as Adolf Hitler's top anti-Soviet spy. During World War II, Gehlen 
oversaw all German military-intelligence operations in Eastern Europe and the USSR.

As the war drew to a close, Gehlen surmised that the U.S.-Soviet alliance would soon 
break down. Realizing that the United States did not have a viable cloak-and-dagger 
apparatus in Eastern Europe, Gehlen surrendered to the Americans and pitched himself 
as someone who could make a vital contribution to the forthcoming struggle against the 
Communists. In addition to sharing his vast espionage archive on the USSR, Gehlen 
promised that he could resurrect an underground network of battle-hardened 
anti-Communist assets who were well placed to wreak havoc throughout the Soviet Union 
and Eastern Europe.

Although the Yalta Treaty stipulated that the United States must give the Soviets all 
captured German officers who had been involved in "eastern area activities," Gehlen 
was quickly spirited off to Fort Hunt, Va. The image he projected during 10 months of 
negotiations at Fort Hunt was, to use a bit of espionage parlance, a "legend" --one 
that hinged on Gehlen's false claim that he was never really a Nazi, but was 
dedicated, above all, to fighting Communism. Those who bit the bait included future 
CIA director Allen Dulles, who became Gehlen's biggest supporter among American policy 
wonks.

Gehlen returned to West Germany in the summer of 1946 with a mandate to rebuild his 
espionage organization and resume spying on the East at the behest of American 
intelligence. The date is significant as it preceded the onset of the Cold War, which, 
according to standard U.S. historical accounts, did not begin until a year later. The 
early courtship of Gehlen by American intelligence suggests that Washington was in a 
Cold War mode sooner than most people realize. The Gehlen gambit also belies the 
prevalent Western notion that aggressive Soviet policies were primarily to blame for 
triggering the Cold War.

Based near Munich, Gehlen proceeded to enlist thousands of Gestapo, Wehrmacht, and SS 
veterans. Even the vilest of the vile -- the senior bureaucrats who ran the central 
administrative apparatus of the Holocaust -- were welcome in the "Gehlen Org," as it 
was called, including Alois Brunner, Adolf Eichmann's chief deputy. SS major Emil 
Augsburg and Gestapo captain Klaus Barbie, otherwise known as the "Butcher of Lyon," 
were among those who did double duty for Gehlen and U.S. intelligence. "It seems that 
in the Gehlen headquarters one SS man paved the way for the next and Himmler's elite 
were having happy reunion ceremonies," the Frankfurter Rundschau reported in the 
early1950s.

Bolted lock, stock, and barrel into the CIA, Gehlen's Nazi-infested spy apparatus 
functioned as America's secret eyes and ears in central Europe. The Org would go on to 
play a major role within NATO, supplying two-thirds of raw intelligence on the Warsaw 
Pact countries. Under CIA auspices, and later as head of the West German secret 
service until he retired in 1968, Gehlen exerted considerable influence on U.S. policy 
toward the Soviet bloc. When U.S. spy chiefs desired an off-the-shelf style of nation 
tampering, they turned to the readily available Org, which served as a subcontracting 
syndicate for a series of ill-fated guerrilla air drops behind the Iron Curtain and 
other harebrained CIA rollback schemes.

Sitting ducks for disinformation

...Third Reich veterans often proved adept at peddling data -- much of it false -- in 
return for cash and safety, the IWG panel concluded. Many Nazis played a double game, 
feeding scuttlebutt to both sides of the East-West conflict and preying upon the 
mutual suspicions that emerged from the rubble of Hitler's Germany.

General Gehlen frequently exaggerated the Soviet threat in order to exacerbate 
tensions between the superpowers. At one point he succeeded in convincing General 
Lucius Clay, military governor of the U.S. zone of occupation in Germany, that a major 
Soviet war mobilization had begun in Eastern Europe. This prompted Clay to dash off a 
frantic, top-secret telegram to Washington in March 1948, warning that war "may come 
with dramatic suddenness."

Gehlen's disinformation strategy was based on a simple premise: the colder the Cold 
War got, the more political space for Hitler's heirs to maneuver. The Org could only 
flourish under Cold War conditions; as an institution it was therefore committed to 
perpetuating the Soviet-American conflict.

"The agency loved Gehlen because he fed us what we wanted to hear. We used his stuff 
constantly, and we fed it to everyone else -- the Pentagon, the White House, the 
newspapers. They loved it, too. But it was hyped-up Russian bogeyman junk, and it did 
a lot of damage to this country," a retired CIA official told author Christopher 
Simpson, who also serves on the IWG review panel and was author of "Blowback: 
America's Recruitment of Nazis and Its Effects on the Cold War."

CONTINUED, PART 2






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