April 5, 1998

THE SWISS, THE GOLD, AND THE DEAD
By Jean Ziegler.
Translated by John Brownjohn.
322 pp. New York:
Harcourt Brace & Company. $27.

(Review)

Gnomes and Nazis
An account of Switzerland's role in financing Germany's war machine.
By PETER GROSE

(Peter Grose, a research fellow at Harvard's Kennedy School of Government, is 
the biographer of Allen Dulles. He is completing a book on covert action in 
East Europe during the cold war.)


The day of reckoning for mighty Switzerland has been long in coming. In the 
manner of a post-modern Zola, an angry man of letters, Jean Ziegler, has thrown 
down his "J'accuse" with "The Swiss, the Gold, and the Dead," and brigades of 
auditors, financiers, factors, historians, lawyers and publicists are trying to 
cope with it.

During the cold war, successive Swiss generations wrote off the ambiguities of 
the World War II era as the time-honored way of neutrality. The enormous self-
enrichment that grew from the financing of Hitler's war machine came, it was 
always said, through Switzerland's normal banking acumen. The disappearance 
into Swiss public and private coffers of assets seized by the Nazis from Jews 
and other victims was beneath polite discussion. For half a century, 
Switzerland lived as a nation in denial.

But the country has been set aflame by this modest volume, published last year 
by a petulant professor of sociology at Geneva University, a longtime Member of 
Parliament and a socialist, too left wing for the bankers' tastes yet Swiss 
through and through. Readers of English can now savor his polemic for 
themselves (in a fine translation from the German by John Brownjohn).

"The awesome, world-encompassing financial power wielded today by the major 
Swiss banks is founded on wartime profits," Ziegler writes. And, he says, the 
Swiss public, those who benefited directly or indirectly from these profits, 
accept this outcome with pride and an absolutely clear conscience.

Ziegler's fundamental aim is one that no board of auditors would presume to 
undertake: "to analyze sociological factors and human behavior, complicities 
and constraints." His is a book about the Swiss people, his own countrymen, a 
"nation of guilty innocents and innocent guilty," consumed in a "mania for 
self-righteousness, guiltlessness and perpetual purity."

"What never fails to fascinate me about Swiss business tycoons, industrial 
magnates and bankers is their combination of great professional ability and 
infinite political naivete," Ziegler declares. "We Swiss are 'available,' as 
Bernese political jargon still calls it. We have no political opinions, we 
merely offer our services."

Ziegler is no stranger to the Swiss banking community. His scholarly works over 
three decades have dwelt on capitalist exploitation in the third world. More 
than 20 years ago, he turned his acerbic scrutiny inward, to lift the story of 
his own society "out from under the stifling and alienating blanket of fog 
which is produced by the ruling discourse and produces the silence and 
uniformity of consent." This first tentative foray was published in 1976, but 
attracted little notice in or out of Switzerland; an English edition entitled 
"Switzerland Exposed" found no American publisher.

But in the changed mood of 1997 Ziegler's latest broadside has provoked anguish 
among the Swiss. At best they are astonished; more often they are outraged. 
Geneva television held a three-hour town meeting on the issues raised by 
Ziegler's book; the studio audience jeered its author and applauded his 
critics. "The Foreign Minister instructed all our embassies to persuade 
'friendly' journalists to denigrate the book in the foreign press," Ziegler 
writes in an afterword for this American edition.

He also reports on a long-scheduled parliamentary debate about "dormant Jewish 
bank accounts" that was canceled in September 1996, a few moments before it was 
to start. The presiding officer "seems puzzled by my indignation," says 
Ziegler, one of those listed to speak in the debate.

"His rosy face registers profound surprise, his response strikes a reproachful 
note: 'You surely don't want us to make an exhibition of ourselves in front of 
all these foreigners?'" The press galleries were indeed crowded with American, 
French, British and German correspondents; the Ambassadors from Israel and the 
United States were settled in the diplomatic gallery. They were incredulous as 
word spread of the cancellation.

The issues that have to be aired have mounted far beyond the capacity of any 
single debate or author. Even as Ziegler was writing his book, the British 
Foreign Office put out a hastily assembled review of evidence from its official 
archives. In May 1997 the United States weighed in with a more thorough 
investigation led by Stuart Eizenstat, then an Under Secretary of Commerce; 
disputing Eizenstat's conclusions (which largely coincided with Ziegler's), the 
Swiss Government nonetheless declared the research "factual and balanced."

On the defensive, the Swiss Bankers Association asked Paul Volcker, the former 
chairman of the United States Federal Reserve, and three major international 
auditing firms for a comprehensive investigation of Swiss banking records. The 
Swiss Parliament has established an official commission of historians, with 
members from Britain, the United States and Israel, as well as Switzerland. 
(Why did they not include a German historian?)

Ziegler defers to these professional resources in ferreting out the scope and 
methods of Switzerland's gold trade during World War II. But he yields to no 
one in his accusations, and he warns against any facile hope that gold and 
jewelry taken from Holocaust victims, either before or after their deaths, can 
ever be identified: "The profits from Nazi gold are not simply lying around in 
their vaults; they have been invested and reinvested, laundered and 
relaundered. . . . The vanished Holocaust funds have long ago been converted 
into real estate and portfolios under new names." And, it might be added, they 
now figure in the capital flowing into the venerable American financial 
institutions that Swiss interests acquired in the 1990's.

Approaching the end of the 20th century, many countries have been roused to 
turn cruel historical hindsight inward, owning up to national error and 
tragedy, internalizing the lessons and moving on with strength restored. The 
United States went through this painful process after Vietnam, Britain after 
the Suez debacle of 1956 and the loss of empire. From the World War II era, 
Germany was necessarily among the first; Japan, Austria and France have started 
but have a long way to go. For now, it is Switzerland's turn. Others, surely, 
will follow.

**********

Bill Heinzen
citynet.com

During World War II, the trains traveling nightly through Switzerland between 
Germany and Italy shook the house of Swiss legislator and sociologist Jean 
Ziegler. Although the Swiss government claimed that they contained only 
civilian goods, Ziegler saw military hardware spilling out of an overturned 
train. His book details "neutral" Switzerland's complicity in the war, 
primarily as chief banker for the Nazis.

The Germans needed access to raw materials for military supplies, but the world 
market would not accept German currency. Switzerland had the most acceptable 
currency, but Swiss banks would only accept gold in exchange. Despite Germany's 
minimal gold reserves, it managed to purchase enough Swiss Francs to finance a 
six-year war and to salt away money in South America for the benefit of Nazi 
refugees.

Germany's gold came from the looted national treasuries and private banks of 
Europe, and from the jewelry and teeth of its millions of prisoners. The gold 
was formed into bars and stamped with a pre-1939 date in order to perpetuate 
the fiction that Germany was merely using its own pre-war reserves.

Ziegler illustrates the coldly efficient way that Swiss financiers and 
politicians went about this slimy business, and the efforts the Allies took to 
stop them. While his perspective as a Swiss national is interesting, the book 
is repetitive, padded and meandering, and he includes more information about 
Switzerland than most readers need.

**********

The Swiss, the Gold, and the Dead
Jean Ziegler, et al

At what price neutrality? For the 50 years following World War II, Switzerland 
has maintained that whatever collaboration it may have engaged in with Nazi 
Germany was undertaken in hopes of avoiding invasion. Recently, however, 
foreign governments and the families of Holocaust victims have begun to take an 
interest in the fate of the many millions of dollars' worth of Jewish gold, 
works of art, and money that disappeared into numbered Swiss bank accounts 
during the war, never to be seen again.

In The Swiss, the Gold, and the Dead, Swiss professor and parliamentarian Jean 
Ziegler provides a provocative, damning portrait of the Swiss banking community 
and his fellow countrymen. According to Ziegler, the global financial power 
that Switzerland now wields is the direct result of the Nazi plunder laundered 
in Swiss banks, a result that the Swiss people have accepted without guilt or 
question. It's not surprising that Ziegler's book is controversial in his own 
country; the Swiss people are understandably reluctant to accept the complicity 
of their government in funding Hitler's war effort. What is disturbing is the 
Swiss government's continued attempts to obstruct open discussion of the past. 
The Swiss, the Gold, and the Dead will certainly make official denials a little 
bit harder to swallow.

copyright: discovermilitaryhistory.com

4/19/02 7:00:59 AM, Louis Proyect <[EMAIL PROTECTED]> wrote:

>On Fri, 19 Apr 2002 22:46:00 +0900, Charles Jannuzi wrote:
>>US policies toward New Zealand came damn close
>>when NZ objected to US ships not confirming
>>whether or not they carried nukes in NZ waters
>>and harbors.
>>In the case of Australia, the US has taken the
>>place of GB as key 'military ally' and you could
>>argue the post-war US-
>>Australia relationship has become neo-imperial.
>
>Perhaps we have a different definition of imperialism. I don't regard 
>US bullying and imperialism as the same thing. Switzerland and Sweden 
>have never bullied anybody in recent years, but they are imperialist 
>powers. US imperialism rules the roost, but it has junior partners 
>including Australia and New Zealand. One of the unfortunate 
>consequences of the "humanitarian intervention" in East Timor is that 
>it has legitimized the imperial ambitions of the Oceania powers.
>
>-- 
>Louis Proyect, [EMAIL PROTECTED] on 04/19/2002
>
>Marxism list: http://www.marxmail.org
>
>


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