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Click Here: <A HREF="http://www.consortiumnews.com/051601a.html";>The 
Consortium</A>
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CIA's Worst-Kept Secret
By Martin A. Lee
May 16, 2001"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 late 1940s 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. 

Vilest
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 early 1950s. 

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 
It's long been known that top German scientists were eagerly scooped up by 
several countries, including the United States, which rushed to claim these 
high-profile experts as spoils of World War II. Yet all the while the CIA was 
mum about recruiting Nazi spies. The U.S. government never officially 
acknowledged its role in launching the Gehlen organization until more than 
half a century after the fact. 

Handling Nazi spies, however, was not the same as employing rocket 
technicians. One could always tell whether Werner von Braun and his bunch 
were accomplishing their assignments for NASA and other U.S. agencies. If the 
rockets didn't fire properly, then the scientists would be judged accordingly.

But how does one determine if a Nazi spy with a dubious past is doing a 
reliable job? 

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 IGW review 
panel and was author of Blowback: America's Recruitment of Nazis and Its 
Effects on the Cold War.
 
Unexpected Consequences 
Members of the Gehlen Org were instrumental in helping thousands of fascist 
fugitives escape via "ratlines" to safe havens abroad – often with a wink and 
a nod from U.S. intelligence officers.

Third Reich expatriates and fascist collaborators subsequently emerged as 
"security advisers" in several Middle Eastern and Latin American countries, 
where ultra-right-wing death squads persist as their enduring legacy.

Klaus Barbie, for example, assisted a succession of military regimes in 
Bolivia, where he taught soldiers torture techniques and helped protect the 
flourishing cocaine trade in the late 1970s and early 1980s. 

CIA officials eventually learned that the Nazi old boy network nesting inside 
the Gehlen Org had an unexpected twist to it. By bankrolling Gehlen the CIA 
unknowingly laid itself open to manipulation by a foreign intelligence 
service that was riddled with Soviet spies.

Gehlen's habit of employing compromised ex-Nazis – and the CIA's willingness 
to sanction this practice – enabled the USSR to penetrate West Germany's 
secret service by blackmailing numerous agents. 

Ironically, some of the men employed by Gehlen would go on to play leading 
roles in European neofascist organizations that despise the United States. 
One of the consequences of the CIA's ghoulish alliance with the Org is 
evident today in a resurgent fascist movement in Europe that can trace its 
ideological lineage back to Hitler's Reich through Gehlen operatives who 
collaborated with U.S. intelligence. 

Slow to recognize that their Nazi hired guns would feign an allegiance to the 
Western alliance as long as they deemed it tactically advantageous, CIA 
officials invested far too much in Gehlen's spooky Nazi outfit.

"It was a horrendous mistake, morally, politically, and also in very 
pragmatic intelligence terms," says American University professor Richard 
Breitman, chairman of the IWG review panel. 

More than just a bungled spy caper, the Gehlen debacle should serve as a 
cautionary tale at a time when post-Cold War triumphalism and arrogant 
unilateralism are rampant among U.S. officials.

If nothing else, it underscores the need for the United States to confront 
some of its own demons now that unreconstructed Cold Warriors are again 
riding top saddle in Washington. 

Martin A. Lee ([EMAIL PROTECTED]) is the author of Acid Dreams and The Beast 
Reawakens, a book on neofascism.
Back to Front
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