The Real Reason the Government Won't Debate Medical Cannabis and 
Industrial Hemp Re-legalization

 An Open Letter to All Americans By R. William Davis 

 Documented Evidence of a Secret Business and Political Alliance 
Between the U.S. "Establishment" and the Nazis - Before, During and 
After World War II - up to the Present. 


 Before the Gatewood Galbraith for Governor Campaign in 1991, few 
Kentuckians knew that the plant that the federal government had 
demonized for over 50 years as "Marijuana - Assassin of Youth," was, 
in fact, Cannabis Hemp, the most traded commodity in the world until 
the mid-1800s, and our state's number one crop, industry, and most 
important source of revenue, for over 150 years. 

 Today, thanks to the efforts of pioneer hemp researchers and public 
advocates such as Galbraith, Jack Fraizer, Jack Herer, Chris Conrad, 
Ed Rosenthal, Don Wirtshafter and others, the federal government's 
unjustifiable suppression of our state's right to develop our most 
valuable and versatile natural resource, is facing increasing 
opposition from an informed public. Hemp is now recognized as the 
number one agriculturally renewable raw material in the world, and 
perhaps the only crop / industry which can guarantee us industrial 
and economic independence from the trans-national corporations. 

 "Shadow of the Swastika" is a follow-up to my earlier work, 
"Cannabis Hemp: the Invisible Prohibition Revealed," which I wrote 
and published in support of the Galbraith Campaign. Since 
publication of that booklet, there has been growing public 
acceptance of the evidence that Marijuana Prohibition was created in 
1937, not to protect society from the "evils of the drug Marijuana," 
as the Federal government claimed, but as an act of deliberate 
economic and industrial sabotage against the re-emerging Industrial 
Hemp Industry. 

 Previous investigations by hemp researchers have been limited to 
the suppression of free-market competition from the hemp industry, 
and focused on the activities of three prominent members of 
America's corporate, industrial and banking establishment during the 
mid- to late-1930s: 

 WILLIAM RANDOLPH HEARST, the newspaper and magazine tycoon.

 The expected rebirth of cannabis hemp as a less expensive source of 
pulp for paper meant his millions of acres of prime timberland, and 
investment in wood pulp papermaking equipment, would soon be worth 
much less. In the 1920s, about the same time as the equipment was 
developed to economically mass-produce raw hemp into pulp and fiber 
for paper, he began the "Reefer Madness" hoax in his newspaper and 
magazine publications.

 ANDREW MELLON, founder of the Gulf Oil Corporation.

 He knew that cannabis hemp was an alternative industrial raw 
material for the production of thousands of products, including fuel 
and plastics, which, if allowed to compete in the free-market, would 
threaten the future profits of the oil companies. As Secretary of 
the Treasury he created the Federal Bureau of Narcotics, and 
appointed his own future nephew-in-law, Harry Anslinger, as 
director. Anslinger would later use the sensational, and totally 
fabricated, articles published by Hearst, to push the Marijuana Tax 
Act of 1937 through Congress, which successfully destroyed the 
rebirth of the cannabis hemp industry. 

 A prominent member of one Congressional subcommittee who voted in 
favor of this bill was Joseph Guffey of Pennsylvania, an oil tycoon 
and former business partner of Andrew Mellon in the Spindletop oil 
fields in Texas.


 which owned the patents on synthetic petrochemicals and industrial 
processes that promised billions of dollars in future profits from 
the sale of wood pulp paper, lead additives for gasoline, synthetic 
fibers and plastics, if hemp could be suppressed. At the time, du 
Pont family influence in both government and the private sector was 
unmatched, according to historians and journalists.

 This publication, however, reveals documented historical evidence 
that the suppression of the hemp industry was only one key part of a 
much larger conspiracy in the 1930s, not only by the three corporate 
interests named above, but by many others, as well. 

 Congressional records, FBI reports and investigations by the 
Justice Department, during the 1930s and 1940s, have already 
documented evidence of this wider plot. A list of the corporations 
named include Du Pont, Standard Oil, and General Motors, all of 
which were proven to be conspiring with Nazi industrial cartels to 
eliminate competition world-wide and divide among themselves the 
Earth's industrial resources and commercial markets, for profitable 

 This conspiracy succeeded. It is now obvious that this lack of 
serious competition in the industrial raw materials market caused 
our present - and totally contrived - addiction to petrochemicals. 
Its success is directly responsible for the most troubling problems 
we now face in the 1990s; serious damage to our environment, 
concentration of economic and political power into fewer and fewer 
hands, and the weakening of the rights of individuals and states to 
determine their own futures. 

 It is more and more evident that, given the historical record, the 
structure of the New World Order is being built upon the Foundation 
of Marijuana Prohibition, and only the relegalization of free-market 
hemp competition can save us.

 R. William Davis July 4, 1996 Louisville, Kentucky


 To clearly understand the circumstances which existed during the 
1930s and 1940s, and are the subject of this booklet, it would be 
helpful to first put the hemp / petrochemical conflict into 
historical perspective. The events which took place in the years 
leading up to World War II were a continuation of a struggle between 
agricultural and industrial interests that began before the American 
Revolution, a struggle which has yet to be decided, even today. 


 The historical record, at least as it has been presented to us in 
the public school system, is that the Civil War was fought to end 
slavery. This is not the whole story. The truth of the matter is 
that it was also a clash between Northern industrialists and 
Southern agriculturists, over control of the expansion into the 
newly opened West. 

 In 1845, Abraham Lincoln wrote, "I hold it a paramount duty of us 
in the free states due to the union of the states, and perhaps to 
liberty itself, to let the slavery of other states alone." (1) 

 Concerning the Western territories, he said "The whole Nation is 
interested that the best use shall be made of these territories. We 
want them for homes and free white people. This they cannot be, to 
any considerable extent, if slavery be planted within them." (2) 

 Lincoln was caught in the middle between the Northern 
industrialists and the Southern agriculturists, who both wanted to 
dominate Western expansion because of the wealth it offered. The 
industrialists knew that the agriculturists depended on slavery 
because cotton, upon which Southern wealth was based, was very labor 
intensive and required the inexpensive labor that slavery provided. 
They knew that if the Western lands were declared "free states" then 
the Southern agriculturists would be unable to compete, and would be 
forced to leave Western expansion, and its potential profits, to the 
Northern industrialists. 

 Quoting "The Irony of Democracy," by Thomas R. Dye and T. Harmon 

 "The importance of the Civil War for America's elite structure was 
the commanding position that the new industrial capitalists won 
during the course of the struggle. . . . The economic transformation 
of the United States from an agricultural to an industrial nation 
reached the crescendo of a revolution in the second half of the 
nineteenth century. 

 "Civil War profits compounded the capital of the industrialists and 
placed them in a position to dominate the economic life of the 
nation. Moreover, when the Southern planters were removed from the 
national scene, the government in Washington became the exclusive 
domain of the new industrial leaders." (3)

 The Northern industrialists used this increased capital to build 
the system of transcontinental railways, linking the Northeast with 
both the South and West. The labor for this undertaking was from the 
Northeastern Establishment's own source of cheap labor - recently 
freed slaves and poor immigrants from Europe and China - who 
suffered under living conditions which were often little better than 
those which existed under the Slave System just a few years before. 

 It was during the years between the Civil War and the beginning of 
the Twentieth Century that the Northern industrialists altered the 
role of the American government. Originally established by the 
Revolution to protect and preserve the lives, property and freedoms 
of all Americans from repressive government, it was transformed into 
an agency to protect the economic future of Northern industrialists. 

 "[T]he industrial elites," according to Dye and Zeigler, "saw no 
objection to legislation if it furthered their success in business. 
Unrestricted competition might prove who was the fittest, but as an 
added precaution to insure that the industrial capitalists 
themselves emerged as the fittest, these new elites also insisted 
upon government subsidies, patents, tariffs, loans, and massive 
giveaways of land and other natural resources." (4) 

 The struggle between Western farmers and the railroads owned by the 
Northern industrialists is a good example. To protect their 
interests, citizens created "the Grange," an organization which 
helped to enact state laws regulating the "ruthless aggression" of 
the railroads. In 1877, these laws were upheld by the Supreme Court 
in the Munn v. Illinois decision. But, a few years later, Justice 
Stephen A. Field changed the role, and the very definition, of the 
corporation. He gave a new interpretation to the Fourteenth 
Amendment that actually gave corporations legal status as citizens . 
. . as artificial persons. (5) 

 It was not long after this change in the interpretation of the 
Fourteenth Amendment that John D. Rockefeller, the father of the 
modern-day corporation, created the great Standard Oil Corporation 
which, by the late 1880s, gained control over 90% of all the oil 
refineries in America. (6) 

 The roots of 20th Century American politics can best be illustrated 
by the 1896 Presidential Election, won by Republican William 
McKinley by a landslide. The McKinley campaign was directed by 
Marcus Alonzo Hanna of Standard Oil and raised a $16,000,000 
campaign fund from wealthy fellow industrialists, (an amount that 
was unmatched in Presidential campaigns until the 1960s). The major 
theme of the campaign, and one that would echo far into the future, 
was "what's good for business is good for the country." (7) 

 This emerging political and judicial misuse of power in America was 
feared by Thomas Jefferson who, in 1787, wrote, "I think our 
governments will remain virtuous for many centuries; as long as they 
remain chiefly agricultural; and this will be as long as there shall 
be vacant lands in any part of America. When they get piled upon one 
another in large cities as in Europe they will become corrupt as in 
Europe." (8) 

 It is important to remember that the American Revolution was a 
clash between the agriculturists in the colonies, and the British 
industrialists who controlled the government in England. Almost 100 
years later the Civil War was fought as a continuation of the same 
basic struggle, but with the victory going back to the 
industrialists. This began the erosion of the American government 
"of the people, for the people and by the people." The buying of the 
1896 Presidential Election, by Hanna of Standard Oil and the 
Northern industrial interests, was the next important step on the 
long road to the American government "of the corporation, for the 
corporation and by the corporation." 

 A few years later, World War I would forge an even closer 
relationship between corporations and government in the United 
States, as well as around the world. Anthony Sampson, in his book 
"The Arms Bazaar," notes that "the American companies, led by US 
Steel and du Pont, were transformed by war orders. US Steel, which 
had absorbed Carnegie's old steel company, had made average annual 
profits in the four pre-war years of $105 million, while in the four 
war years they were $240 million; and du Pont's average profit went 
up from $6 million to $58 million. . . . 

 "Certainly the arms companies had become much richer through the 
war, and there were widespread suspicions that they were actually 
trying to prolong it." (9) 

 The bottom line is, of course, victory or profit, and in what 
proportions? To what lengths would this nation's top industrial 
leaders go to secure their share of the profits before and during 
the next "war to end all war?" 


 1.American Political Tradition, Hofstadter, p. 109. (As reprinted 
in The Irony of Democracy, Thomas R. Dye and L. Harmon Zeigler, p. 
72) 2.American Political Tradition, p. 113. (As reprinted in The 
Irony of Democracy, p. 72) 3.Irony of Democracy, p. 73 4.Ibid., p. 
74 5.Ibid., p. 75 6.Ibid., p. 76 7.Ibid., p. 82 8.Ibid., p. 62 9.The 
Arms Bazaar, Anthony Sampson, p. 65


 "A clique of U.S. industrialists is hell-bent to bring a fascist 
state to supplant our democratic government and is working closely 
with the fascist regime in Germany and Italy. I have had plenty of 
opportunity in my post in Berlin to witness how close some of our 
American ruling families are to the Nazi regime. . . . 

 "Certain American industrialists had a great deal to do with 
bringing fascist regimes into being in both Germany and Italy. They 
extended aid to help Fascism occupy the seat of power, and they are 
helping to keep it there." - William E. Dodd, U.S. Ambassador to 
Germany, 1937.(1)

 A large volume of documentary evidence exists that reveals that 
many of the richest, most powerful men in the United States, and the 
giant corporations they controlled, were secretly allied with the 
Nazis, both before and during World War II, even after war was 
declared between Germany and America. This alliance began with U.S. 
corporate investment during the reconstruction of post-World War I 
Germany in the 1920s and, years later, included financial, 
industrial and military aid to the Nazis. 

 On the pages which follow we will review which prominent Americans 
and corporations were involved, what aid and comfort they gave our 
nation's enemies - treasonable offenses during time of war, and 
investigations into these matters which produced evidence of a 
US/Nazi corporate conspiracy to bring a fascist state to America, 
and eliminate competition in the industrial raw materials market in 
order to force world-wide dependance on oil-based petrochemicals. 


 Hearst, who was so concerned about the American public's health and 
safety on the matter of marijuana use, apparently had no such fears 
when it came to Hitler and the Nazis. According to journalist George 

 ". . . Hitler had the support of the most widely circulated 
magazine in history, 'Readers Digest,' as well as nineteen big-city 
newspapers and one of the three great American news agencies, the 
$220-million Hearst press empire. 

 ". . . William Randolph Hearst, Sr., . . . was the lord of all the 
press lords in the United States. The millions who read the Hearst 
newspapers and magazines and saw Hearst newsreels in the nation's 
moviehouses had their minds poisoned by Hitler propaganda. 

 "It was . . . disclosed first to President Roosevelt [by Ambassador 
Dodd] almost on the day it happened, in September 1934, and it is 
detailed in the book 'Ambassador Dodd's Diary,' published in 1941, 
and again in libel-proof documents on file in the courts of the 
state of New York. William E. Dodd, professor of history [at the 
University of Chicago], told me about the Hearst sell-out . . . 

 "According to Ambassador Dodd, Hearst came to take the waters at 
Bad Nauheim in September 1934, and Dodd somehow learned immediately 
that Hitler had sent two of his most trusted Nazi propagandists, 
Hanfstangel and Rosenberg, to ask Hearst how Nazism could present a 
better image in the United States. When Hearst went to Berlin later 
in the month, he was taken to see Hitler." 

 Seldes reports that a $400,000 a year deal was struck between 
Hearst and Hitler, and signed by Doctor Joseph Goebbels, the Nazi 
propaganda minister. "Hearst," continues Seldes, "completely changed 
the editorial policy of his nineteen daily newspapers the same month 
he got the money." 

 In the court documents filed on behalf of Dan Gillmor, publisher of 
a magazine named "Friday," in response to a lawsuit by Hearst, under 
item 61, he states: "Promptly after this said visit with Adolf 
Hitler and the making of said arrangements. . . said plaintiff, 
William Randolph Hearst, instructed all Hearst press correspondents 
in Germany, including those of INS [Hearst's International News 
Service] to report happenings in Germany only in a friendly' manner. 
All of such correspondents reporting happenings in Germany 
accurately and without friendliness, sympathy and bias for the 
actions of the then German government, were transferred elsewhere, 
discharged, or forced to resign. . . ." 

 In the late 1930s, Seldes recounts, when "several sedition 
indictments [were brought by] the Department of Justice . . . 
against a score or two of Americans, the defendants included an 
unusually large minority of newspaper men and women, most of them 
Hearst employees." (2) 


 "Thurman Arnold, as assistant district attorney of the United 
States, his assistant, Norman Littell, and several Congressional 
investigations, have produced incontrovertible evidence that some of 
our biggest monopolies entered into secret agreements with the Nazi 
cartels and divided the world up among them," states Seldes in his 
book, "Facts and Fascism," published in 1943. "Most notorious of all 
was Alcoa, the Mellon-Davis-Duke monopoly which is largely 
responsible for the fact America did not have the aluminum with 
which to build airplanes before and after Pearl Harbor, while 
Germany had an unlimited supply." (3)

 Alcoa sabotage of American war production had already cost the U.S. 
"10,000 fighters or 1,665 bombers," according to Congressman Pierce 
of Oregon speaking in May 1941, because of "the effort to protect 
Alcoa's monopolistic position. . ." 

 "If America loses this war," said Secretary of the Interior 
[Harold] Ickes, June 26, 1941, "it can thank the Aluminum 
Corporation of America." 

 "By its cartel agreement with I.G. Farben, controlled by Hitler," 
writes Seldes, "Alcoa sabotaged the aluminum program of the U.S. air 
force. The Truman Committee [on National Defense, chaired by then-
Senator Harry S. Truman in 1942] heard testimony that Alcoa's 
representative, A.H. Bunker, $1-a-year head of the aluminum section 
of O.P.M., prevented work on our $600,000,000 aluminum expansion 
program." (4) 


 General Motors is included here because, by 1929, the Du Pont 
corporation had acquired controlling interest in, and had 
interlocking directorships with, General Motors. 

 Irenee du Pont, "the most imposing and powerful member of the 
clan," according to biographer and historian Charles Higham, "was 
obsessed with Hitler's principles." "He keenly followed the career 
of the future Fuhrer in the 1920s, and on September 7, 1926, in a 
speech to the American Chemical Society, he advocated a race of 
supermen, to be achieved by injecting special drugs into them in 
boyhood to make their characters to order." Higham's book on this 
subject, "Trading with the Enemy: An Expose of the Nazi-American 
Money Plot 1933-1949," is highly recommended. 

 Du Pont's anti-Semitism "matched that of Hitler" and, in 1933, the 
Du Ponts "began financing native fascist groups in America . . ." 
one of which Higham identifies as the American Liberty League: "a 
Nazi organization whipping up hatred of blacks and Jews," and the 
"love of Hitler. 

 "Financed . . . to the tune of $500,000 the first year, the Liberty 
League had a lavish thirty-one-room office in New York, branches in 
twenty-six colleges, and fifteen subsidiary organizations nationwide 
that distributed fifty million copies of its Nazi pamphlets. . . . 

 "The Du Ponts' fascistic behavior was seen in 1936, when Irenee du 
Pont used General Motors money to finance the notorious Black 
Legion. This terrorist organization had as its purpose the 
prevention of automobile workers from unionizing. The members wore 
hoods and black robes, with skulls and crossbones. They fire-bombed 
union meetings, murdered union organizers, often by beating them to 
death, and dedicated their lives to destroying Jews and communists. 
They linked to the Ku Klux Klan. . . . It was brought out that at 
least fifty people, many of them blacks, had been butchered by the 
Legion." (5)

 Du Pont support of Hitler extended into the very heart of the Nazi 
war machine as well, according to Higham, and several other 
researchers: "General Motors, under the control of the Du Pont 
family of Delaware, played a part in collaboration" with the Nazis. 

 "Between 1932 and 1939, bosses of General Motors poured $30 million 
into I.G. Farben plants . . ." Further, Higham informs us that by 
"the mid-1930s, General Motors was committed to full-scale 
production of trucks, armored cars, and tanks in Nazi Germany." (6) 

 Researchers Morton Mintz and Jerry S. Cohen, in their book, "Power 
Inc.," describe the Du Pont-GM-Nazi relationship in these terms:

 ". . . In 1929, [Du Pont-controlled] GM acquired the largest 
automobile company in Germany, Adam Opel, A.G. This predestined the 
subsidiary to become important to the Nazi war effort. In a heavily 
documented study presented to the Senate Subcommittee on Antitrust 
and Monopoly in February 1974, Bradford C. Snell, an assistant 
subcommittee counsel, wrote: 

 "'GM's participation in Germany's preparation for war began in 
1935. That year its Opel subsidiary cooperated with the Reich in 
locating a new heavy truck facility at Brandenburg, which military 
officials advised would be less vulnerable to enemy air attacks. 
During the succeeding years, GM supplied the Wehrmact with Opel 
"Blitz" trucks from the Brandenburg complex. For these and other 
contributions to [the Nazis] wartime preparations, GM's chief 
executive for overseas operations [James Mooney] was awarded the 
Order of the German Eagle (first class) by Adolf Hitler.'"

 Du Pont-GM Nazi collaboration, according to Snell, included the 
participation of Standard Oil of New Jersey [now Exxon] in one, very 
important arrangement. GM and Standard Oil of New Jersey formed a 
joint subsidiary with the giant Nazi chemical cartel, I.G. Farben, 
named Ethyl G.m.b.H. [now Ethyl, Inc.] which, according to Snell: 
"provided the mechanized German armies with synthetic tetraethyl 
fuel [leaded gas]. During 1936-39, at the urgent request of Nazi 
officials who realized that Germany's scarce petroleum reserves 
would not satisfy war demands, GM and Exxon joined with German 
chemical interests in the erection of the lead-tetraethyl plants. 
According to captured German records, these facilities contributed 
substantially to the German war effort: 'The fact that since the 
beginning of the war we could produce lead-tetraethyl is entirely 
due to the circumstances that, shortly before, the Americans [Du 
Pont, GM and Standard Oil] had presented us with the production 
plants complete with experimental knowledge. Without lead-tetraethyl 
the present method of warfare would be unthinkable.'" (7) 

 At about the same time the Du Ponts were serving the Nazi cause in 
Germany, they were involved in a Fascist plot to overthrow the 
United States government. 

 "Along with friends of the Morgan Bank and General Motors," in 
early 1934, writes Higham, "certain Du Pont backers financed a coup 
d'etat that would overthrow the President with the aid of a $3 
million-funded army of terrorists . . ." The object was to force 
Roosevelt "to take orders from businessmen as part of a fascist 
government or face the alternative of imprisonment and execution . . 

 Higham reports that "Du Pont men allegedly held an urgent series of 
meetings with the Morgans," to choose who would lead this "bizarre 
conspiracy." "They finally settled on one of the most popular 
soldiers in America, General Smedly Butler of Pennsylvania." Butler 
was approached by "fascist attorney" Gerald MacGuire (an official of 
the American Legion), who attempted to recruit Butler into the role 
of an American Hitler. 

 "Butler was horrified," but played along with MacGuire until, a 
short time later, he notified the White House of the plot. Roosevelt 
considered having "the leaders of the houses of Morgan and Du Pont" 
arrested, but feared that "it would create an unthinkable national 
crisis in the midst of a depression and perhaps another Wall Street 
crash." Roosevelt decided the best way to defuse the plot was to 
expose it, and leaked the story to the press. 

 "The newspapers ran the story of the attempted coup on the front 
page, but generally ridiculed it as absurd and preposterous." But an 
investigation by the Congressional Committee on Un-American 
Activities - 74th Congress, first session, House of Representatives, 
Investigation of Nazi and other propaganda - was begun later that 
same year. 

 "It was four years," continues Higham, "before the committee dared 
to publish its report in a white paper that was marked for 
'restricted circulation.' They were forced to admit that 'certain 
persons made an attempt to establish a fascist organization in this 
country . . . [The] committee was able to verify all the pertinent 
statements made by General Butler.' This admission that the entire 
plan was deadly in intent was not accompanied by the imprisonment of 
anybody. Further investigations disclosed that over a million people 
had been guaranteed to join the scheme and that the arms and 
munitions necessary would have been supplied by Remington, a Du Pont 
subsidiary." (8)

 The names of important individuals and groups involved in the 
conspiracy were suppressed by the committee, but later revealed by 
Seldes, Philadelphia Record reporter Paul French, and Jules Archer, 
author of the book, "The Plot to Seize the White House." Included 
were John W. Davis (attorney for the J.P. Morgan banking group), 
Robert Sterling Clark (Wall Street broker and heir to the Singer 
sewing machine fortune), William Doyle (American Legion official), 
and the American Liberty League (backed by executives from J.P. 
Morgan and Co., Rockefeller interests, E.F. Hutton, and Du Pont-
controlled General Motors). (9) 


 "On November 23, 1937," states Higham, "representatives of General 
Motors held a secret meeting in Boston with Baron Manfred von 
Killinger, who was . . . in charge of West Coast espionage [for the 
Nazis], and Baron von Tipplekirsch, Nazi consul general and Gestapo 
leader in Boston. This group signed a joint agreement showing total 
commitment to the Nazi cause for the indefinite future. . . ." (10) 

 Seldes describes the plotters as "the great owners and rulers of 
America who planned world domination through political and military 
Fascism" including "several leading American industrialists, members 
of the Congress of the United States, and representatives of large 
business and political organizations . . ." 

 He obtained the text of the agreement, and published it in his 
newsletter, "In Fact," on July 13, 1942. The plan "goes much further 
than the mere cartel conspiracies of Big Business of both 
countries," writes Seldes, "because it has political clauses and 
points to a bigger conspiracy of money and politicians such as 
helped betray Norway and France and other lands to the Nazi machine. 
The most powerful fortress in America is the production monopolies, 
but its betrayal would involve, as it did in France, the 
participation of some of the most powerful figures of the political 
as well as the industrial world." (11) 


 "On February 27, 1942," according to Higham, "Arnold, with 
documents stuffed under his arms, . . . strode into the lion's den 
of Standard at 30 Rockefeller Plaza. Just behind him were Secretary 
of the Navy Franklin Knox and Secretary of the Army Henry L. 
Stimson." They confronted Standard official William Farish and 
"Arnold sharply laid down his charges" that "by continuing to favor 
Hitler in rubber deal and patent arrangements," Standard Oil "had 
acted against the interests of the American government . . . 
suggested a fine of $1.5 million and a consent decree whereby 
Standard would turn over for the duration all the patents" in 

 "Farish rejected the proposal on the spot. He pointed out that 
Standard" was also selling the U.S. a "high percentage" of the fuel 
being used by the Army, Navy, and Air Force "making it possible for 
America to win the war. Where would America be without it?"

 Blackmail? Yes, says Higham. And effective. Arnold was finally 
reduced to asking the oil company official "to what Standard Oil 
would agree. After all, there had to be at least token punishment. . 
. . Arnold, Stimson, and Knox soon realized they had no power to 
compare with that of Standard." 

 The price Standard Oil "agreed" to pay for its crime? A modest fine 
of a few thousand dollars divided up among ten defendants. "Farish 
paid $1,000, or a quarter of one week's salary, for having betrayed 

 In New Jersey, charges of "criminal conspiracy with the enemy" were 
filed against Standard, then "dropped in return for Standard 
releasing its patents and paying the modest fine." But Arnold, and 
his ally, Secretary of the Interior Harold Ickes, weren't finished 
with Standard Oil just yet. They approached Senator Truman, chairman 
of the Senate Special Committee Investigating the National Defense 
Program. "With great enthusiasm Give 'em Hell Harry embarked on a 
series of hearings in March 1942, in order to disclose the truth 
about Standard." 

 Between the 26th and the 28th of March, 1942, Arnold "produced 
documents showing that Standard and Farben in Germany had literally 
carved up the world markets, with oil and chemical monopolies all 
over the map," according to Higham. (12) 

 Mintz and Cohen describe the confrontation:

 "Four months after the United States entered World War II, the 
Justice Department obtained an indictment of Exxon and its principal 
officers for having made arrangements, starting in the late 1920s 
with I.G. Farben involving patent sharing and division of world 
markets. Jersey Standard agreed not to develop processes for the 
manufacture of synthetic rubber; in exchange, Farben agreed not to 
compete in the American petroleum market. After war broke out in 
Europe, but before the attack on Pearl Harbor, executives of 
Standard Oil and Farben, at a meeting in Holland, established a 
'modus vivendi' for continuing the arrangements in event of war 
between the United States and Germany - although the arrangements 
interfered with the ability of the United States to make synthetic 
rubber desperately needed after it entered the war in December 1941. 
Rather than face a criminal trial, Exxon and the indicted executives 
entered no-contest pleas - the legal equivalent of guilty pleas - 
and were fined the minor sums which were the maximum amounts 
permitted by law. A few days later, on March 26, 1942, the Senate 
Special Committee Investigating the National Defense Program held a 
hearing at which Thurman Arnold, chief of the Antitrust Division, 
put into the record documents on which the [criminal] indictment had 
been based, including a memo from a Standard Oil official on the 
'modus vivendi' agreed to in Holland. After the hearing, the 
committee chairman, Harry S. Truman, characterized the arrangements 
as treasonable." (13)

 Another source book on this subject of US / Nazi corporate 
activities is "The Secret War Against the Jews," by Mark Aarons and 
John Loftus. Here is their version of the events:

 "Before the war Standard of New Jersey had forged a synthetic oil 
and rubber cartel with the Nazi-controlled I.G. Farben," which 
"worked well until the United States joined the war in 1941. . . . 
Next to the Rockefellers, I.G. Farben owned the largest share of 
stock in Standard Oil of New Jersey. Among other things, Standard 
had provided Farben with its synthetic rubber patents and technical 
knowledge, while Farben had kept its patents to itself, under strict 
instructions from the Nazi government."

 Evidence which Thurman Arnold turned over to the Truman Committee, 
which Truman would declare "treasonous," included "Standard's 1939 
letter renewing its agreement, which made it clear that the 
Rockefellers' company was prepared to work with the Nazis whether 
their own government was at war with the Third Reich or not. 
Truman's Senate Committee on the National Defense was outraged and 
began to probe into the whole scandalous arrangement, much to the 
discomfort of John D. Rockefeller, Jr. Suddenly, however, the whole 
matter was dropped. 

 "There was a reason for Rockefeller's escape: blackmail. According 
to the former intelligence officers we interviewed on this point, 
the blackmail was simple and powerful: The Dulles brothers [John 
Foster, later Secretary of State, and Allen, later director of the 
CIA] had one of their clients threaten to interrupt the U.S. oil 
supply during wartime." 

 When confronted by Arnold on the Standard - Farben arrangement 
"Standard executives made it clear that the entire U.S. war effort 
was fueled by their oil and it could be stopped. . . . The American 
government had no choice but to go along if it wanted to win the 
war." (14) 

 July 13, 1944, Ralph W. Gallagher, attorney for Standard Oil, filed 
a lawsuit against the U.S. government's seizure of the contested 
patents. "On November 7, 1945, Judge Charles E. Wyzanski gave his 
verdict," according to Higham. "He decided that the government had 
been entitled to seize the patents. Gallagher appealed. On September 
22, 1947, Judge Charles Clark delivered the final word on the 
subject. He said, 'Standard Oil can be considered an enemy national 
in view of its relationships with I.G. Farben after the United 
States and Germany had become active enemies.' The appeal was 
denied." (15) 

 One aspect of this Standard - I.G. Farben relationship, revealed in 
testimony during the Patents Committee hearings, chaired by Senator 
Homer T. Bone in May 1942, is of interest to those who seek direct 
evidence of a conspiracy by big oil companies to suppress 
development of synthetic substitutes to petrochemical products such 
as industrial chemicals, aircraft lubricants and fuel, all of which 
can be made from hemp: 

 "On May 6th, John R. Jacobs, Jr., of the Attorney General's 
department, testified that Standard had interfered with the American 
explosives industry by blocking the use of a method of producing 
synthetic ammonia. As a result of its deals with Farben, the United 
States had been unable to get the use of this vital process even 
after Pearl Harbor. Also, the United States had been restricted in 
techniques of producing hydrogen from natural gas and from obtaining 
paraflow, a product used for airplane lubrication at high altitudes. 
. . ." 

 On August 7th, "Texas oil operator C.R. Starnes appeared to testify 
that Standard had blocked him at every turn in his efforts to 
produce synthetic rubber after Pearl Harbor. . . ." 

 On August 12th, "John R. Jacobs reappeared in an Army private's 
uniform (he had been inducted the day before) to bring up another 
disagreeable matter: Standard had also, in league with Farben, 
restricted production of methanol, a wood alcohol that was sometimes 
used as motor fuel." (16) 

 The restriction against methanol production apparently did not 
apply to the Nazis, however. "As late as April 1943," Higham 
reveals, "General Motors in Stockholm [Sweden] was reported as 
trading with the enemy. . . . Further documents show that, as with 
Ford, repairs on German army trucks and conversion from gasoline to 
wood-gasoline production were being handled by GM in Switzerland." 

 The use of hemp as a source of methanol was known to the Nazis, 
revealed in the pamphlet "The Humorous Hemp Primer," published in 
Berlin, also in 1943. This document, recently re-published in the 
1995 edition of "Hemp and the Marijuana Conspiracy: The Emperor 
Wears No Clothes," by veteran hemp conspiracy researcher Jack Herer, 
states that:

 "Crops should not only provide food in large quantities, they can 
provide raw materials for industry. . . . Among such raw materials 
of especially high value is hemp . . . 

 "The woody part of this large plant is not to be thrown out, since 
it can easily be used for surface coatings for the finest floors. It 
also provides paper and cardboard, building materials and wall 
paneling. Further processing will even produce wood sugar and wood 
gas. . . .

 "Anyone who grows hemp today need not fear a lack of a market, 
because hemp, as useful as it is, will be purchased in unlimited 
amounts." (18) 

 The Nazis obviously considered hemp a vital war material that could 
be used to produce methanol, or "wood gas," at the same time, in 
1943, that Du Pont-controlled General Motors in Switzerland was 
"converting from gasoline to wood-gasoline production." This, taken 
into consideration along with the earlier statement that Standard 
Oil-I.G. Farben had "restricted production of methanol" and the GM-
Standard Oil-I.G. Farben joint venture, Ethyl, Inc., whose 
profitability depended on the production of lead-tetraethyl for oil-
based petrochemical gasoline - in direct competition with the 
alternative methanol, or "wood gas," certainly opens new avenues of 
investigation into the existence of a conspiracy against hemp as an 
alternative, and competing, industrial raw material, by these very 
same corporations which sold America out to the Nazis for profit and 
control of world resources and markets. 

 "Just after Pearl Harbor," writes Seldes, "the Assistant Attorney 
General, Mr. Thurman Arnold, issued a sensational report of the 
sabotage of the national [war production] program, the first report 
naming the practices which were later to be referred to as the 
treason of big business in wartime. Said Mr. Arnold:

 "Looking back over 10 months of defense effort we can now see how 
much it has been hampered by the attitude of powerful basic 
industries who have feared to expand their production because 
expansion would endanger their future control of industry. 

 "Anti-trust investigations during the past year have shown that 
there is not an organized basic industry in the United States which 
has not been restricting production by some device or other in order 
to avoid what they call 'ruinous overproduction after the war'." 

 By "ruinous overproduction," of course, they meant free-market 
competition. So, to question the existence of an industrial 
conspiracy against competition, during the 1930s and 1940s, is 
pointless. It has long been totally documented by volumes of 
evidence, available in the public record. And among this list of 
convicted corporate conspirators are murderers, racists, pro-Nazi 
collaborators, blackmailers and American Fascists who plotted at 
least one armed take-over of the U.S. government. And the list is 
not yet complete. 


 Henry Ford, writes Higham, "admired Hitler from the beginning, when 
the future Fuhrer was a struggling and obscure fanatic. He shared 
with Hitler a fanatical hatred of Jews." 

 "Ford's book 'The International Jew' was issued in 1927. A virulent 
anti-Semitic tract, it was still being distributed in Latin America 
and the Arab countries as late as 1945. Hitler admired the book and 
it influenced him deeply. Visitors to Hitler's headquarters at the 
Brown House in Munich noticed a large photograph of Henry Ford 
hanging in his office. Stacked high on the table outside were copies 
of Ford's book. As early as 1923," when Hitler heard that Ford was 
planning to run for President, he "told an interviewer from the 
'Chicago-Tribune,' 'I wish that I could send some of my shock troops 
to Chicago and other big American cities to help'." 

 As late as 1940, Ford Motor Company "refused to build aircraft 
engines for England and instead built supplies of the 5-ton military 
trucks that were the backbone of German army transportation." (20) 

 The Ford Motor Company was also aware of the potential of hemp as 
an alternative industrial resource, devoting many years research to 
the subject. 

 In a 1989 ABC Radio broadcast, Hugh Downs reported that in the 
1930s, "the Ford Motor Company also saw a future in biomass fuels. 
Ford operated a successful biomass conversion plant that included 
hemp at their Iron Mountain facility in Michigan. Ford engineers 
extracted methanol, charcoal fuel, tar, pitch, ethyl acetate, and 
creosote - all fundamental ingredients for modern industry, and now 
supplied by oil-related industries. . . . Henry Ford's experiments 
with methanol promised cheap, readily-available fuel." (21) 

 As reported in "Popular Mechanics" in December, 1941, Ford's 
research represented "an industrial revolution in progress . . . a 
revolution in materials that will affect every home." (22) 

 So, it is possible, even likely, that Ford and General Motors 
conversion "from gasoline to wood-gasoline production" for Nazi 
Germany, as earlier reported by Higham, involved at least some 
consideration of hemp as a resource, if not actual production of 
"wood-gas" from hemp. After all, Ford had already committed several 
years and significant research dollars to the subject. 

 The implication of methanol fuel patents, hemp industry research 
and production facilities, all in the hands of this cabal of Nazi-
allied American corporations, during a proven period of anti-
competition conspiracies, and wartime blackmail against the U.S. 
government, should provide additional support for the hemp 
conspiracy theories. The fact is that Nazi Germany recognized hemp 
as a vital war material - one which, just before America's entrance 
into World War II, was positioned to compete in the free-market 
against the products controlled by the Pro-Nazi American 
corporations. Unrestricted expansion of United States industrial 
hemp production threatened not only the profits of these treasonous 
corporations, but the degree of their control over America's 
production of vital war materials. 

 This view of hemp, not as a "dangerous drug" but as a vital war 
material, was acknowledged by the Kentucky Legislature a little over 
100 years before the Japanese sneak attack on Pearl Harbor. In 1841, 
according to Professor James F. Hopkins, author of "A History of the 
Hemp Industry in Kentucky," published by the University of Kentucky 
Press in 1951: 

 "When the farmers of Woodford County [KY] assembled in October, 
1841, to consider a program of hemp production for the navy, they 
only went as far as to express an opinion that the government should 
employ a rope spinner in Kentucky for the purpose of converting the 
fiber into yarns, which could be transported much more cheaply and 
safely than the bulky raw material. The Committee on Agriculture of 
the Kentucky House of Representatives inquired into the matter early 
in 1842 . . . 

 "Both houses of the General Assembly sent to the Senators and 
Congressmen from Kentucky a request that they use their 'best 
exertions' to have established in the state one or more agencies for 
the inspection and manufacture of hemp for the navy. A select 
committee of Congress, appointed to consider the resolutions from 
Kentucky, reported three resolutions of its own: that the navy be 
directed to construct a factory at Louisville 'for the purpose of 
depositing and manufacturing . . . such hempen fabrics of domestic 
water-rotted hemp as the public service may require'; that 
inspectors be appointed to test the fiber that might be offered for 
sale; and that, after due notice to the public, purchase of the 
necessary amount of fiber be made at the factory. The Committee 
contended that its plan would build up during peacetime a source of 
hemp which would be vitally important in case of war, encourage 
American agriculture and manufactures, and decrease the unfavorable 
balance of trade." (23) 

 [NOTE: For many years we Kentuckians have had a good deal of our 
heritage and history buried beneath a thick layer of propaganda from 
a source of power and control in this country which knows neither 
honor nor justice. Now, we are learning the truth. Our history as a 
state built upon the foundation of a long- and dishonestly- outlawed 
industry endures.] 


 Even after Pearl Harbor, ITT was working for the Nazis, reports 
Higham: ". . . the German army, navy, and air force contracted with 
ITT for the manufacture of switchboards, telephones, alarm gongs, 
buoys, air raid warning devices, radar equipment, and thirty 
thousand fuses per month for artillery shells used to kill British 
and American troops." 

 ITT also "supplied ingredients for the rocket bombs that fell on 
London," and other devices as well, without which "it would have 
been impossible for the German air force to kill American and 
British troops, for the German army to fight the Allies in Africa, 
Italy, France, and Germany, for England to have been bombed, or for 
Allied ships to have been attacked at sea." (24) 

 In 1938, "following a series of meetings with Luftwaffe chief 
Herman Goring, [ITT founder and chairman Sosthenes] Behn encouraged 
ITT's Lorenz subsidiary to purchase 28 percent of the Focke-Wulf 
firm, manufacturer of the bombers that were to sink so many Allied 
ships during the war," according to researcher and author Jim 
Hougan. (25) 

 Anthony Sampson, in "The Sovereign State of ITT," reports on what 
is perhaps the most bizarre aspect of the US/Nazi corporate 
partnership, war reparations:

 ". . . ITT now presents itself as the innocent victim of the Second 
World War, and has been handsomely recompensed for its injuries. In 
1967, nearly thirty years after the events, ITT actually managed to 
obtain $27 million in compensation from the American government, for 
war damage to Focke-Wulf plants - on the basis that they were 
American property bombed by Allied bombers." (26)

 The Foreign Claims Settlement Commission was responsible for this 
payment to ITT, and other U.S. corporations as well. 

 Bradford Snell reports that "After the cessation of hostilities, GM 
and Ford demanded reparations from the U.S. Government for wartime 
damages sustained by their Axis facilities as a result of Allied 
bombing. By 1967 GM had collected more than $33 million in 
reparations and Federal tax benefits for damages to its warplane and 
motor vehicle properties in formerly Axis territories . . . Ford 
received a little less than $1 million, primarily as a result of 
damages sustained by its military truck complex at Cologne." (27) 


 Contemporary history records Allen Dulles as one of America's top 
spymasters, from his early days in the Office of Strategic Services 
(OSS) in World War II, to his position as Director of the Central 
Intelligence Agency (CIA) in the 1950s and early 1960s (until 
President John F. Kennedy fired him over the Bay of Pigs disaster in 
1961), and finally to his membership on the controversial Warren 
Commission, which investigated President Kennedy's assassination. 
Until recently, his pivotal role in promoting a U.S. corporate 
relationship with the Nazis was little known. Loftus and Aarons 
describe the post-World War I role of Allen, and his brother, John 
Foster, in the following terms:

 "We first turn to Dulles's creation of international finance 
networks for the benefit of the Nazis. In the beginning, moving 
money into the Third Reich was quite legal. Lawyers saw to that. And 
Allen and his brother John Foster were not just any lawyers. They 
were international finance specialists for the powerful Wall Street 
law firm of Sullivan & Cromwell. . . . 

 "The Dulles brothers were the ones who convinced American 
businessmen to avoid U.S. government regulation by investing in 
Germany. It began with the Versailles Treaty, in which they played 
no small role. After World War I the defeated German government 
promised to pay war reparations to the Allies in gold, but Germany 
had no gold. It had to borrow the gold from Sullivan & Cromwell's 
clients in the United States. Nearly 70 percent of the money that 
flowed into Germany during the 1930s came from investors in the 
United States, many of them Sullivan & Cromwell clients. . . 

 "Foster Dulles, as a member of the board of I.G. Farben, seems to 
have had little difficulty in getting along with whoever was in 
charge. Some of our sources insist that both Dulles brothers made 
substantial but indirect contributions to the Nazi party as the 
price of continued influence inside the new German order. . . ." 


 1.Facts and Fascism, George Seldes, p. 122 Trading with the Enemy, 
Charles Higham, p. 167 2.Even the Gods Can't Change History, Seldes, 
pp. 140-144 3.Facts and Fascism, p. 68 4.Ibid., p. 262 5.Trading 
with the Enemy, pp. 162-165 6.Ibid., p. 166 7.Power, Inc., Morton 
and Mintz, pp. 497-499 8.Trading with the Enemy, pp. 163-165 9.The 
Plot to Seize the White House, Jules Archer, Hawthorn Books, 1973 
(Quoted from It's A Conspiracy, National Insecurity Council, 
EarthWorks Press, 1992, pp. 179-184) 10.Trading with the Enemy, pp. 
167-168 11.Facts and Fascism, pp. 68-70 12.Trading with the Enemy, 
pp. 45-46 13.Power, Inc, pp. 499-500 14.The Secret War Against The 
Jews, Aarons and Loftus, pp. 44-65 15.Trading with the Enemy, pp. 
61-62 16.Ibid., pp. 49-52 17.Ibid., p. 176 18.The Emperor Wears No 
Clothes, Jack Herer, pp. 127-130 19.One Thousand Americans, Seldes, 
pp. 142-143 20.Trading with the Enemy, pp. 154-156 21.Ain't Nobody's 
Business If You Do, p. 734 22.Popular Mechanics Magazine, Vol. 76, 
No. 6, Dec. 1941 (The Emperor Wears No Clothes, 1995 edition, p. 
199) 23.A History of the Hemp Industry in Kentucky, Professor James 
F. Hopkins, University of Kentucky Press, 1951 24.Trading with the 
Enemy, p. 99 25.Spooks, Jim Hougan, pp. 423-424 26.The Sovereign 
State of ITT, Anthony Sampson, p. 47 (Power, Inc., pp. 500-501) 
27.GM and the Nazis, by Bradford C. Snell, Ramparts Magazine, June 
1974, pp. 14-16 (Democracy for the Few, Michael Parenti, pp. 91-92) 
28.The Secret War Against the Jews, pp. 55-60


 "The first truth is that the liberty of a democracy is not safe if 
the people tolerate the growth of private power to a point where it 
becomes stronger than their democratic state itself. That, in 
essence, is fascism - ownership of government by an individual, by a 
group, or by any other controlling power. 

 "Among us today a concentration of private power without equal in 
history is growing." - President Franklin Delano Roosevelt (1) 

 As mentioned earlier, the secret U.S./Nazi corporate alliance 
during World War II was the result of substantial American 
investment in post-World War I Germany. In order to protect these 
investments, and the accumulating profits, the U.S. multinational 
corporations remained an important part of the Nazi war machine 
until the final defeat of Germany in 1945. What effect did the end 
of World War II have on this faction of American Nazi collaborators? 

 In this section we will review the evidence, much of it from 
recently de-classified documents, that this pro-Nazi faction, rather 
than facing charges of high treason, became an integral part of the 
United States national security apparatus, extending its fascist 
influence in both foreign and domestic policies and, in effect, 
creating what has been referred to as America's "Invisible 
Government." The excuse, of course, was Communism. 


 Aarons and Loftus' research, which documents the Dulles brothers' 
pro-Nazi activities, did not go unnoticed. "Before his death, former 
Supreme Court Justice Arthur Goldberg granted one of the authors an 
interview. Justice Goldberg had served in U.S. intelligence during 
World War II. Although he said little in public, he had collected 
information on the Dulles boys' activities over the years. His 
verdict was blunt. 'The Dulles brothers were traitors.' They had 
betrayed their country, by giving aid and comfort to the enemy in 
time of war." (2) 

 Much of what is now known about the activities of the Dulles 
brothers and other American Nazi collaborators in banking and 
industry came as a result of a top-secret joint U.S.-British 
intelligence program known as the Ultra Project. "Prior to the 
United States' entry into the war," write Loftus and Aarons, 
"Roosevelt permitted British intelligence to wiretap American 

 "According to our sources in the intelligence community, the area 
of coverage included a good bit of the New York financial district, 
several floors of Rockefeller Plaza, part of the RCA Building, two 
prominent clubs, and various shipping firms. . . . 

 "The wiretap unit reported to Sir William Stephenson, a Canadian 
electronics genius better known by his code name, 'Intrepid.' From 
his headquarters in the Rockefeller building, Stephenson's job was 
to identify U.S. companies that were aiding the Nazis." (3) 

 "Several months before the United States declared war," continue 
Loftus and Aarons, "Bill Donovan invited Allen Dulles to head up the 
New York branch of the Office of the Coordinator of Information 
(COI), President Roosevelt's new intelligence agency and the 
precursor to the Office of Strategic Services (OSS). Its primary 
mission was to collect information against the Nazis and their 
collaborators. In other words, Dulles was asked to inform on his own 
clients in New York. . . ." 

 "Roosevelt had approved his selection as head of the COI Manhattan 
branch because he wanted Dulles where the British wiretappers could 
keep an eye on him. . . . 

 "One floor below Dulles was Stephenson's wiretap shop. Inside 
Dulles's operation was one of Roosevelt's spies, Arthur Goldberg . . 
." who, "confirmed . . . that Dulles's appointment was a setup. . . 

 "Roosevelt was giving Dulles enough rope to hang himself. From 
Stephenson's Manhattan wiretaps, it is known that Dulles was 
continuing to work with his German business clients, who wanted to 
remove Hitler and install a puppet of their own who would make peace 
with the West while forging an alliance against Stalin. It was to be 
a kinder, gentler Third Reich, favorably disposed to American 
financial interests. . . . (4) 

 "The wiretap evidence against Dulles originally was collected by a 
special section of Operation Safehaven, the U.S. Treasury 
Department's effort to trace the movement of stolen Nazi booty 
towards the end of the war. Roosevelt and Treasury Secretary Henry 
Morganthau had set up Dulles by giving him the one assignment - 
intelligence chief in Switzerland - where he would be most tempted 
to aid his German clients with their money laundering."

 Roosevelt had one thing in mind: "The sudden release of the 
Safehaven intercepts would force a public outcry to bring treason 
charges against those British and American businessmen who aided the 
enemy in time of war." Among the targets were Allen Dulles, Henry 
Ford, and other U.S. industrialists. (5) 

 The plan failed, however, due to Dulles being "tipped off . . . 
that he was under surveillance" in time to cover his tracks. One 
possible source of the leak was Vice President Henry Wallace, "who 
constantly shared information with his brother-in-law, the Swiss 
minister in Washington during the war." 

 "Wallace," the authors reveal, "gave many details of his secret 
meetings with Roosevelt to the Swiss diplomat." The problem was 
that, at the time, the Nazis "had recruited the head of the Swiss 
secret service." 

 It is, perhaps, no coincidence that Roosevelt dropped Wallace 
during the 1944 election, choosing instead Senator Harry S. Truman 
as his new running mate. (6) 


 "After the Nazis' 1943 defeat at Stalingrad," write Loftus and 
Aarons, "various Nazi businessmen realized they were on the losing 
side and made plans to evacuate their wealth. The Peron government 
in Argentina was receiving the Nazi flight capital with open arms, 
and Dulles helped it hide the money. . . . 

 "The Guinness Book of Records lists the missing Reichsbank treasure 
[estimated at $2.5 billion dollars] as the greatest unsolved bank 
robbery in history. Where did it go? . . . . 

 "According to our source, the bulk of the treasure was simply 
shipped a very short distance across Austria and through the Brenner 
Pass into Italy. Dulles's contacts were waiting at the Vatican. The 
German-Vatican connection was how Allen Dulles and the Nazi 
industrialists planned to get away with it. . . ." (7)

 The effort was successful, according to the authors, who state that 
the "vast bulk of the wealth of the Nazi empire" which "disappeared 
before the end of World War II" reappeared "within a decade in the 
hands of the same men who financed Hitler's war against the Jews. 
Allen Dulles's clients were not defeated, only inconvenienced." The 
authors identify two of Dulles's accomplices as James Jesus Angleton 
and his father, Hugh Angleton. The Angletons were members of X-2, 
the OSS counterintelligence branch in Italy, in 1943. 

 Like Dulles, Hugh Angleton was financially involved with Axis 
powers. He was the European representative for National Cash 
Register in Italy before the war and business associate of Dulles. 
When World War II broke out, the authors write, 

 ". . . Angleton was crushed financially as all his investments were 
in enemy hands. 

 "Like Dulles's clients, he wanted his money back. Like Dulles, Hugh 
offered his services to the OSS." With high-placed contacts in 
Mussolini's Interior Ministry, Hugh was accepted and "promoted 
rapidly in U.S. intelligence. He became second in command to Colonel 
Clifton Carter, the OSS commander in Italy at the end of World War 
II." (8)

 Perhaps the most controversial information which is now emerging 
with the release of recently declassified documents concerning World 
War II, is the role of the Vatican, both in its pre-war German 
investments, and its role in helping Nazi war criminals escape 
justice after the war. Concerning the Vatican-German investments, 
Loftus and Aarons are quite clear:

 "That the Vatican encouraged such investments and even donated 
money to Hitler himself cannot be denied. A German nun, Sister 
Pascalina, was present at its creation. In the early 1920s she was 
the housekeeper for Archbishop of the Vatican-Nazi connection . . . 
Eugenio Pacelli, then the papal nuncio in Munich. Sister Pascalina 
vividly recalls receiving Adolf Hitler late one night and watching 
the archbishop give Hitler a large amount of Church money."

 In addition, Eugenio Pacelli 

 "later convinced the Vatican to invest millions of dollars in the 
rising German economy, money from the Vatican's land settlement that 
ended the Pope's claim of sovereignty over territory outside the 
walls of Vatican City. It was Pacelli who negotiated the Concordat 
with Germany and then had to deal with the consequences of his own 
mistakes when he became pope on the eve of World War II. 

 "The Vatican and the Dulles brothers had the same problem. Once 
their money was in Hitler's hands, how would they get it back?"

 The authors interviewed "a former colonel in U.S. Military 
Intelligence who specialized in tracing enemy assets. He claimed 
that only a tiny portion of the Reichbank's gold ingots actually 
reached the Vatican Bank, while the rest was held in cooperative 
banks in Belgium, Liechtenstein, and especially Switzerland." It was 
only necessary to transfer the paperwork on the gold, not the gold 
itself. Since, by that time, Dulles knew his telegraph 
communications were being monitored by the British wiretap operation 
in New York, he instead used couriers to "ensure absolute secrecy in 
moving the foreign currency and the ownership documents out of 
Switzerland . . . special agents of the Vatican who had diplomatic 
immunity to move back and forth across both Nazi and Allied lines. . 
. ." (9)

 ". . . . The Vatican's eminence grise for Balkan intelligence, the 
Bosnian-Croat priest Krunoslav Draganovic, was involved in 
transporting large quantities of Nazi booty, especially gold 
bullion, from Austria to the safety of the Holy See with the help of 
the Dulles-Angleton clique in Rome. Some of the booty was 
transported in truck convoys run by British troops. Other shipments 
were carried in U.S. Army jeeps provided to Father Draganovic so 
that he could conduct pastoral visits' on behalf of the Vatican. 

 "Another ardent Nazi propagandist and agent, Slovenian bishop 
Gregory Rozman, was sent to Bern with the help of Dulles's friends 
in U.S. intelligence. Declassified U.S. intelligence files confirm 
that Bishop Rozman was suspected of trying to arrange the transfer 
of huge quantities of Nazi-controlled gold and Western currency that 
had been discreetly secreted in Swiss banks during the war. For a 
few months the Allies prevented Rozman from gaining access to this 
treasure, but then the way was mysteriously cleared. In fact, the 
Dulles-Vatican connection had fixed it, and before too long the 
bishop obtained the loot for his Nazi friends, who were hiding in 

 "Such instances turned out to be only the tip of the iceberg. It 
has long been acknowledged that it was Allen Dulles who tipped off 
General Patton about the buried German treasure that lay in the path 
of the U.S. Third Army. Patton explicitly urged General Eisenhower 
to conceal as much of the gold as possible, but his advice was 

 "Our sources claim that Dulles and his colleagues exerted a great 
deal of influence to ensure that Western investments in Nazi Germany 
were not seized by the Allies as reparations for the Jews. After 
all, much of 'Hitler's Gold' had originally belonged to the bankers 
in London and New York. The . . . captured Nazi loot went 
underground. . . . 

 "In the cause of anticommunism, and to retrieve its own investments 
in Germany, the Vatican agreed to become part of Dulles's smuggling 
window, through which the Nazis and their treasure could be moved to 
safety." (10)

 On April 12th, 1945, Roosevelt died, and Truman became President. 
May 7th, Nazi Germany surrendered after the suicide of Adolf Hitler. 
September 2nd, Japan surrendered. 

 World War II finally ended, but at the cost of more than 35,000,000 
lives, over half that amount civilians. The death toll for the 
United States was 294,000. (11) 


 "Dulles and some of his friends volunteered for postwar service 
with the government not out of patriotism but of necessity," 
according to Loftus and Aarons. "They had to be in positions of 
power to suppress the evidence of their own dealings with the Nazis. 
The Safehaven investigation was quickly stripped from Treasury . . . 
and turned over to the State Department. There Dulles's friends 
shredded the index to the interlocking corporations and blocked 
further investigations. 

 "Dulles had this goal in mind: Not a single American businessman 
was ever going to be convicted of treason for helping the Nazis. 
None ever was, despite the evidence. According to one of our sources 
in the intelligence community, the U.S. Army Counter Intelligence 
Corps had two large 'Civilian Internment Centers' in Occupied 
Germany, code named 'Ashcan' and 'Dustbin.' The CIC had identified 
and captured a large number of U.S. citizens who had stayed in 
Germany and aided the Third Reich all through World War II. The 
evidence of their treason was overwhelming. The captured German 
records were horribly incriminating. 

 "Yet Victor Wohreheide, the young Justice Department attorney 
responsible for preparing the treason trials, suddenly ordered the 
prisoners' release. All of the Nazi collaborators were allowed to 
return to the United States and reclaim their citizenship. At the 
same time, another Justice Department attorney, O. John Rogge, who 
dared to make a speech about Nazi collaborators in the United States 
was quickly fired. However, the attorney who buried the treason 
cases was later promoted to special assistant attorney general. 

 "Dulles and his clients had won. The proof is in the bottom line. 
Forty years after World War II, Fortune magazine published a list of 
the hundred richest men in the world. There were no Jews on the 
list. The great fortunes of the Rothschilds and Warburgs had been 
diminished to insignificance by the Depression, the Nazis, and World 
War II. 

 "Near the top of the list were several multibillionaires who had 
been prominent members of Hitler's inner circle. A few even had 
served time in Allied prisons as Nazi war criminals, but they were 
all released quickly. The bottom line is that the Nazi businessmen 
survived the war with their fortunes intact and rebuilt their 
industrial empires to become the richest men in the world. Dulles's 
clients got away with it. President Roosevelt's dream of putting the 
Nazis' moneymen on trial died with him."

 England also failed to see justice done, according to the authors: 
"The British authorities in Germany ordered the U.S. Army to release 
all of the VIP British Nazis and hand over the evidence against 
them. Even before Roosevelt's death, Churchill had already begun to 
withdraw from his commitment to prosecute Nazis." The reason?" Too 
many British industries might be seized as Nazi fronts. Too many 
upper-class collaborators might have to be prosecuted. The Germans 
were defeated, and the Soviets were now the enemy.

 "Funding for British war crimes investigations suddenly dried up. 
Nazi bankers such as Herman Abs were released from prison to work as 
economic advisers in the British zone of Germany. The history of 
British 'efforts' to punish Nazis after the war is aptly summarized 
in Tom Bower's book, 'The Pledge betrayed'. . . . 

 "The pattern was repeated all over the remnants of the Third Reich. 
Despite direct orders from President Truman and General Eisenhower, 
I.G. Farben, the citadel of the Nazi industrialists, was never 
dismantled. Dulles's clients demanded, and received, Allied 
compensation for bomb damage to their factories in Germany. Only a 
few of the top Nazis were executed. Most of the rest were released 
from prison within a few years. Others, . . . would go virtually 
unpunished. No one ever investigated the Nazi sympathizers in 
Western intelligence who had made it all possible." (12)

 As we have seen, the American industrialists who did business with 
the Nazis were in no way inconvenienced by war crimes trials, and 
even received compensation for damages to their Nazi war plants. 
Some Nazi industrialists were charged and convicted by the Nuremberg 
war crimes trials but, in their book, "The American Establishment," 
authors Leonard and Mark Silk observe that in the late 1940s "the 
United States and its leaders faced an agonizing moral problem in 
coming to terms with those German industrialists who had willingly 
done business with the Nazis and who were now just as willing to do 
business with the Americans in the reconstruction of Germany. The 
problem was dramatized when those German industrialists who had been 
convicted of war crimes at Nuremberg were all released from 
Landsberg prison in early 1951, their sentences commuted by the 
American High Commissioner [of German Occupation], John J. McCloy. 

 ". . . . Whatever the motivation," the authors continue, "the 
blanket release of the convicted industrialists was taken within 
Germany - and by them - as a sign that businessmen were not to be 
seriously blamed for their involvement in matters for which others 
were hanged or suffered long imprisonment." (13) 

 The motivation for the mass release of imprisoned Nazi war 
criminals is described in the book, "The New Germany and the Old 
Nazis," by T.H. Tetens, an expert in German affairs. 

 Tetens observes that in "1950, when Washington showed its eagerness 
to create a new German army of 500,000 men, the SS [at that time 
reorganized into a neo-Nazi front group called HIAG, which stands 
for 'mutual assistance,' a so-called veterans organization], 
together with the old Wehrmacht officers, started an all-out 
campaign for the immediate release of all war criminals. It was a 
superbly organized blackmail action, enjoying wide support from the 
public, from all parties, and carried toward success by Dr. 
Adenauer's astute maneuverings. 

 "The Chancellor suggested an inconspicuous way to solve the problem 
with 'parole,' 'sick leave,' and other roundabout methods. The more 
the U.S. High Commission in Germany showed leniency, however, the 
stronger the pressure became: either 'all so-called war criminals 
are released or there will be no German army.' American diplomats 
followed Dr. Adenauer's plan to feed the nationalistic monster 
piecemeal. Every few days we quietly released one or two more from 
prison - the Krupps, the I.G. Farben directors, and dozens of former 
Wehrmacht Generals. On friendly advice from Washington, the British 
and the French, extremely reluctant, had to follow suit. When the 
supply dried up, there remained behind bars only the SS, the mass 
murderers from Dachau, Belsen, and Buchenwald, and the toughs from 
the Waffen SS who had massacred American, British, and Canadian 
prisoners of war. This put High Commissioner John McCloy in a most 
embarrassing position. . . ." 

 Tetens explains how Chancellor Adenauer helped High Commissioner 
McCloy and the U.S. State Department avoid this embarrassment: 
Adenauer "suggested the formation of a review board, with three 
German members sitting in and having equal voice in making 
recommendations. The whole procedure was to be shrouded in secrecy, 
and it was decided that the names of those released should not be 
revealed to the public. In this way the last few hundred 'poor 
devils,' those SS mass killers and sadists, were quietly set free 
within two or three years." (14) 

 Christopher Simpson, in his extensively documented book on the 
subject of U.S. recruitment of Nazis, "Blowback," goes into more 
detail of the backgrounds of those released: 

 "The beneficiaries of this act included, for example, all of the 
convicted concentration camp doctors; all of the top judges who had 
administered the Nazis' 'special courts'" and dozens of similar 
cases. In addition, "McCloy's clemency decisions for the Landsberg 
inmates set in motion a much broader process that eventually freed 
hundreds of other convicted Nazi war criminals over the next five 
years. . . . By the winter of 1950-1951 the most senior levels of 
the U.S. government had decided to abrogate their wartime pledge to 
bring Nazi war criminals to justice. . . . in the interests of 
preserving West German military support for American leadership in 
the cold war. While nazism and Hitler's inner circle continued to be 
publicly condemned throughout the West, the actual investigation and 
prosecution of specific Nazi crimes came to a standstill." (15) 

 One case merits special attention: Sepp Dietrich, "the organizer of 
the Fuehrer's bodyguard. Dietrich carried out Hitler's personal 
murder assignments" and, Tetens continues, "was in charge of the 
liquidation of the Jewish population in the city of Kharkov. During 
the Battle of the Bulge his troops committed the Malmedy massacre, 
killing more than 600 military and civilian prisoners, among them 
115 American G.I.s. He was sentenced to death, and the sentence was 
later commuted to life imprisonment. In 1955 he was one of the last 
poor devils' quietly released from prison and greeted by the Bonn 
government with the homecoming pay of 6,000 marks." (16) 

 In a "New York Times" article published February 1, 1951, one 
prominent American expressed support for the reduction of sentences 
for those responsible for the mass murder of the 600 unarmed 
prisoners of war at Malmedy, describing the decision as "extremely 
wise." The American was Senator Joseph McCarthy, Republican from 

 Tetens observes that, despite the wide-spread fear by "the French, 
the British, and the smaller European countries" of a re-militarized 
Germany, "the outbreak of the Korean War (June 1950) brought a total 
change. The provisions which banned all military and veterans' 
organizations lost all their meaning and were no longer enforced. 
Western Germany was allowed by the Allies to set up its own General 
Staff, camouflaged under the name Blank Office. Supported by Bonn 
and tolerated by the United States, a nation-wide network was 
created to reactivate the experienced officers and the man power of 
the old Wehrmacht. The short period of 1950-51 must be marked as the 
time when Hitler's old officers, SS leaders, and [Nazi] party 
functionaries returned to power and influence." (17) 

 Tetens' comment that the Nazi's return to power in Germany was 
"tolerated by the United States" was a historical understatement. By 
the time Tetens' book was published in 1961, hundreds of convicted 
Nazi war criminals had already been smuggled out of Germany to avoid 
prosecution at the war crimes trials at Nuremberg, recruited by, and 
on the payroll of several U.S. government agencies, including the 
Army CIC, the OSS, and the Office of Policy Coordination within the 
State Department. 

 Over the past fifty years, it is now documented, these Americanized 
fugitive Nazi war criminals have been involved in, and in many cases 
in charge of, many U.S. government covert operations -- 
international weapons smuggling, drug cartels, Central American 
death squads, right wing anti-communist dictatorships, LSD mind 
control experiments -- the Republican National Committee's Ethnic 
Heritage Councils, and the Presidential campaigns of Richard Nixon, 
Ronald Reagan, and George Bush. 


 Probably the most influential Nazi to come to work for the United 
States intelligence agencies during the Cold War was named Gehlen. 

 "Reinhard Gehlen," writes author Christopher Simpson, "Hitler's 
most senior military intelligence officer on the eastern front, had 
begun planning his surrender to the United States at least as early 
as the fall of 1944." Of "several hundred" high-ranking Nazi 
officers who switched sides at the end of World War II, Gehlen 
"proved to be the most important of them all. 

 "In early March 1945 Gehlen and a small group of his most senior 
officers carefully microfilmed the vast holdings on the USSR in the 
. . . military intelligence section of the German army's general 
staff. They packed the film in watertight steel drums and secretly 
buried it in remote mountain meadows scattered through the Austrian 
Alps. Then, on May 22, 1945, Gehlen and his top aides surrendered to 
an American Counter-intelligence Corps [CIC] team." (18) 

 According to Tetens: ". . . [Gehlen] immediately asked for an 
interview with the commanding officer . . ." and offered the United 
States "his intelligence staff, spy apparatus, and the priceless 
files for future service." 

 Gehlen was sent to Washington and his offer was taken. "The 
Pentagon-Gehlen agreement," states Tetens, "in practice guaranteed 
the continuation of the all-important Abwehr division of the German 
General Staff. Hundreds of German army and SS officers were quietly 
released from internment camps and joined Gehlen's headquarters in 
the Spessart Mountains in central Germany. When the staff had grown 
to three thousand men, the Bureau Gehlen opened a closely guarded 
twenty-five-acre compound near Pullach, south of Munich, operating 
under the innocent name of the South German Industrial Development 
Organization. . . . 

 "Within a few years the Gehlen apparatus had grown by leaps and 
bounds. In the early fifties it was estimated that the organization 
employed up to 4,000 intelligence specialists in Germany, mainly 
former army and SS officers, and that more than 4,000 V-men 
(undercover agents) were active throughout the Soviet-bloc 
countries. Gehlen's spy network stretches from Korea to Cairo, from 
Siberia to Santiago de Chile. . . . When the Federal Republic [of 
West Germany] became a sovereign state in 1955, the Bureau Gehlen 
was openly recognized as the official intelligence arm of the Bonn 
government." (19) 

 How important was the Gehlen Org, as it became known, to the 
history of the Cold War? Simpson's research documents that it was 
perhaps the most significant element of all:

 ". . . . The Org became the most important eyes and ears for U.S. 
intelligence inside the closed societies of the Soviet bloc. 'In 
1946 [U.S.] intelligence files on the Soviet Union were virtually 
empty,' says Harry Rositzke, the CIA's former chief of espionage 
inside the Soviet Union. '. . . . Rositzke worked closely with 
Gehlen during the formative years of the CIA and credits Gehlen's 
organization with playing a "primary role" in filling the empty file 
folders during that period. . . .' 

 "'Gehlen had to make his money by creating a threat that we were 
afraid of,' says Victor Marchetti, formerly the CIA's chief analyst 
of Soviet strategic war plans and capabilities, 'so we would give 
him more money to tell us about it.' He continues: 'In my opinion, 
the Gehlen Organization provided nothing worthwhile for the 
understanding or estimating Soviet military or political 
capabilities in Eastern Europe or anywhere else.' Employing Gehlen 
was 'a waste of time, money, and effort, except that maybe he had 
some CI [counter- intelligence] value, because practically everybody 
in his organization was sucking off both tits.'" (20) 

 By 'sucking off both tits' Marchetti is referring to the fact that 
Gehlen's elaborate operation was penetrated by Soviet spies at the 
very time it was our most important source of intelligence upon 
which the Cold War was based. In fact, the Communists had 
infiltrated Nazi intelligence long before Gehlen switched sides. 


 "In each generation," write Aarons and Loftus,"Soviet intelligence 
created 'anti-Communist' emigre front groups, ostensibly to foment 
revolution and topple Bolshevism. The front groups attracted support 
from the West. Considerable financial assistance was supplied and 
close ties forged with various Western intelligence services. This 
enabled the Communist double agents running the front groups to co-
opt the legitimate emigre opposition, splinter their leadership and 
provoke them into premature and poorly organized rebellions which 
were easily defeated. More importantly, the false front groups were 
a vehicle for long-term Soviet penetration of Western society. . . 

 The authors identify one of these groups as the Narodny Trudovoi 
Soyuz (NTS), or the People's Labour Alliance. The NTS represented 
itself as a group of anti-communist "moles" inside the Kremlin and, 
in the 1920s, recruited a Communist agent named Prince Anton 
Vasilevich Turkel. Turkel, who actually worked for Soviet Military 
intelligence (GRU), went on to penetrate French, Japanese, Italian, 
British, German, and even the Vatican intelligence services before 
the end of World War II. 

 "After World War II, Turkel worked for West German intelligence 
(the Gehlen Org), collaborated with many of the spy services of 
NATO, including the American Military Intelligence Service (MIS - 
for offensive intelligence), the US Army Counter Intelligence Corps 
(CIC - for defensive purposes), the ultra-secret State Department 
Office of Policy Co-ordination and the Central Intelligence Agency. 
. ." (21) 

 "Just before World War II began," according to the authors, "an 
Austrian Jew named Richard Kauder created a secret intelligence 
network, code named MAX." Kauder, using the name of [Max] Klatt - 
Turkel's intelligence chief ["Unholy Trinity," Aarons and Loftus, p. 
166] - "worked exclusively for Admiral Wilhelm Canaris, the German 
spy chief who collaborated with the Vatican and the British to 
topple Hitler during the war [the group known as the Black 

 The Nazis thought the Max network was made up of "so-called Fascist 
Jews" who "were willing to spy against the Soviet Union, not for the 
glory of the Third Reich but to save themselves and their families 
from the concentration camps." The Max network was supposed to have 
had "the only communication link to a secret network of 'White' 
Russian Fascists inside the Kremlin [Turkel's NTS], who had 
supposedly infiltrated Stalin's military headquarters prior to World 
War II." But, the authors continue, "the Max network was not made up 
of Fascist Jews. They were, in fact, Communist Jews who risked their 
lives inside the heart of the Third Reich's intelligence service." 

 The Max network actually misled the Nazis, feeding them false 
intelligence on the capabilities and intentions of the Soviet Union, 
leading "the Nazi divisions into a series of death traps on the 
Eastern front." The Max double-agents were responsible for the Nazis 
defeats at Stalingrad, "the giant battle of Kursk where Hitler's 
tank divisions were slaughtered. The final sting," continue the 
authors, "was to mislead Germany into believing that the Red army 
was on the verge of collapse in 1944, when in fact the Soviets were 
preparing for the most massive onslaught of the war. 

 "It would not be an exaggeration to say that the 'Fascist Jews' of 
the Max network did more to defeat the German army than all the 
Western intelligence services combined. Seventy percent of all 
Hitler's divisions were destroyed on the Eastern front, largely as a 
result of the misleading intelligence supplied by Max." (22) 

 When Gehlen was recruited by the United States, Allen Dulles 
ordered the ex-Nazi spymaster to "revive the Max network." Gehlen 
already had plans to do just that, intending "to make Turkel's Max 
network the centerpiece of his new West German intelligence agency. 
As soon as a Republican president was elected in the United States, 
Dulles intended to take over the CIA and make Gehlen and Turkel the 
heart of his anti-Soviet network. The Soviets, of course, were 
delighted as they watched Dulles and Gehlen attempt to plant a 
Communist spy ring in the heart of Western intelligence. . . .

 ". . . [E]ventually, in 1956, the Allies decided that the whole 
thing had been a giant Soviet-controlled operation. Dozens of 
operations, hundreds of agents, thousands of innocent civilians had 
been betrayed. . . . 

 ". . . [T]hree years after Dulles became head of CIA in 1953, his 
pet 'Fascist,' Turkel, broadcast the CIA codes to start the 
Hungarian uprising prematurely. Thousands of innocent Hungarians 
rushed on to the streets of Budapest to start the revolution. 
Instead of American paratroopers dropping supplies, they found 
Soviet tanks waiting in the suburbs."

 By 1959, the collapse of Dulles's spy network was almost total: 
"U.S. Military Intelligence admitted to the National Security 
Council that it did not have a single network of couriers or safe 
houses left in Communist territory, apart from East Germany. 
Dulles's Nazi 'freedom fighters' had sold him out." (23) 


 It was Harry Rositze who best described the attitude of the United 
States military-intelligence establishment after the end of World 
War II: "Any bastard as long as he was anti-Communist." Rositze, the 
"former head of secret operations inside the USSR" for the CIA, was 
correct. (24) 

 We have seen that many Nazis - including those who committed 
atrocities - returned to positions of power and influence inside 
Germany after the war. Unknown until fairly recently was the extent 
of Nazi recruitment by U.S. intelligence agencies and political 
organizations, in the 1940s and 1950s. 

 Perhaps the most publicized program of Nazi recruitment is that of 
Project Paperclip, which involved the collection of Nazi rocket 
scientists and facilities, all of which were later incorporated into 
the U.S. Space Program. Klaus Barbie's employment by the U.S. State 
Department in the 1940s is another well-known incident. Barbie, head 
of the Gestapo in Lyons, France, was known as the "Butcher of Lyons" 
and was sought by the French Government for atrocities committed 
against French Resistance fighters captured by the Nazis. Barbie was 
recruited as a U.S. intelligence "asset" in 1947 by one branch of 
the State Department's Counter-intelligence Corps (CIC), while 
another branch, the Operation Selection Board, a joint U.S./British 
project, was trying to put him in prison for war crimes. 

 Eventually, according to Aarons and Loftus, "Barbie's employment 
(and protection) by the Americans began to reach French newspapers 
and politicians at least as early as 1948. They, in turn brought 
increasing pressure on the U.S. government through publicity and 
eventually through official notes requesting Barbie's extradition 
from Germany. That, in the final analysis, is why the CIC chose to 
provide Barbie with a new identity and safe passage to Argentina in 
1951, while thousands of other ex-Nazis who had been 'of interest' 
to the CIC at one time or another have simply lived out their lives 
in Germany. If the CIC had dumped Barbie when the French government 
began requesting his extradition, he would have had plenty of 
compromising things to say about the CIC. . ." (25) 

 But when Barbie was eventually captured by Bolivian authorities in 
the early 1980s, and returned to France to face charges of war 
crimes, the U.S. government was forced to conduct an investigation 
into the Barbie affair. The official position? ". . . [T]his 
investigation concluded that the United States had indeed protected 
Barbie in Europe and engineered his escape but that Barbie was the 
only such Nazi who had been assisted in this fashion." (26) 

 As documented previously, this statement was false. Hundreds, 
perhaps thousands, of Nazis were employed by the several U.S. 
agencies, from the CIC to the CIA, and used in covert operations 
overseas, as our first line of defense against Communism. Others, 
equally as guilty of wartime atrocities, were brought into the 
United States for domestic political purposes. This aspect of the 
U.S.-Nazi connection is well-documented, and deserves closer 
attention by the mainstream press. 

 One of the first researchers to reveal the connections between the 
U.S. government and the Nazis, was a lady named Mae Brussell of 
Carmel, California. Her career as a conspiracy researcher and host 
of the weekly radio program "World Watchers International" began 
with the Kennedy assassination. "In ferreting out every morsel from 
the Warren Report," writes Jonathan Vankin, author of the book 
"Conspiracies, Cover-ups and Crimes," "supplementing her research 
with untold amounts of reading from the 'New York Times' to 'Soldier 
of Fortune,' Brussell discovered not merely a conspiracy of a few 
renegade CIA agents, Mafiosi, and Castro haters behind Kennedy's 
death, but a vast, invisible institutional structure layered into 
the very fabric of the U.S. political system.

 "Comprising the government within a government were not just spies, 
gangsters, and Cubans, but Nazis. Mae found that many of the 
commission witnesses -- whose testimony established Oswald as a lone 
nut' -- had never even spoken to Oswald, or knew him only slightly. 
The bulk of them were White Russian emigres living in Dallas. 
Extreme in their anti-Communism, they were often affiliated with 
groups set up by the SS in World War II -- Eastern European ethnic 
armies used by the Nazis to carry out their dirtiest work. 

 "Brussell also discovered an episode from history rarely reported 
in the media, and not often taught in universities. Those same 
collaborationist groups were absorbed by United States intelligence 
agencies. They hooked up with the spy net of German General Reinhard 
Gehlen, Hitler's Eastern Front espionage chief."

 "'This is a story of how key Nazis . . . anticipated military 
disaster and laid plans to transplant nazism, intact but disguised, 
in havens in the West,' wrote Mae Brussell in 1983. She didn't 
author too many articles, but this one, 'The Nazi Connection to the 
John F. Kennedy Assassination' (in 'The Rebel,' a short-lived 
political magazine published by 'Hustler' impresario Larry Flynt), 
was definitive, albeit convoluted. 

 "'It is a story that climaxes in Dallas on November 22, 1963, when 
John Kennedy was struck down,' Brussell's article continued. 'And it 
is a story with an aftermath -- America's slide to the brink of 

 Mae Brussell quit broadcasting her radio show in Spring of 1988, 
after receiving a death threat from a "man who is said to have 
identified himself as 'a fascist and proud of it.'" 

 The last project she worked on, before her death from cancer on 
October 3, 1988, writes the author, "was a study of Satanic cults -- 
within the U.S. military. The hidden fascist oligarchy had 
progressed far beyond the need for patsies like Oswald. They were 
now able, Brussell asserted, to hypnotically program assassins. 

 "Satanic cults are the state of the art in brainwashing. With 
drugs, sex, and violence, they strip any semblance of moral thought. 
They are perfect for use in creating killers. The United States 
military, Brussell found, was using them." (27) 


 1.One Thousand Americans, George Seldes, p. 5-6 2.The Secret War 
Against the Jews, Loftus and Aarons, p. 71 3.Ibid., pp. 73-74 
4.Ibid., pp. 75-76 5.Ibid., p. 77 6.Ibid., p. 78 7.Ibid., pp. 79-80 
8.Ibid., pp. 82-83 9.Ibid., pp. 84-85 10.Ibid., pp. 85-86 11.Tragedy 
and Hope, Prof. Carrol Quigley, p. 827 12.Secret War Against the 
Jews, pp. 100-102 13.The American Establishment, Leonard and Mark 
Silk, p. 249 14.The New Germany and the Old Nazis, T.H. Tetens, pp. 
99-102 15.Blowback: America's recruitment of Nazis and its effects 
on the Cold War, Christopher Simpson, pp. 191-192 16.The New Germany 
and the Old Nazis, p. 103 17.Ibid., pp. 112-113 18.Blowback, pp. 40-
41 19.The New Germany and the Old Nazis, pp. 42-43 20.Blowback, pp. 
54-55 21.Unholy Trinity, Mark Aarons and John Loftus, pp. 151-152 
22.The Secret War Against the Jews, pp. 135-136 23.Ibid., pp. 151-
152 24.Blowback, p. 159 25.Ibid., pp. 187-189 26.Ibid., pp. 192-193 
27.Conspiracies, Cover-ups and Crimes, Jonathan Vankin, pp. 101-104


 In this section we will explore the Nazi connections of Richard 
Nixon. To do so we must return to the years just after the end of 
World War II and, of course, a man named Dulles. 

 The irony of Nixon's political career ending with a cover-up can 
only be appreciated with the knowledge that this turbulent career 
also began with one. Loftus and Aarons state that: 

 "According to several of our sources among the 'old spies,' Richard 
Nixon's political career began in 1945, when he was the navy officer 
temporarily assigned to review . . . captured Nazi documents." The 
documents in question revealed the wartime record of Karl Blessing, 
"former Reichsbank officer and then head of the Nazi oil cartel, 
Kontinentale Ol A.G. 'Konti' was in partnership with Dulles's 
principal Nazi client, I.G. Farben. Both companies had despicable 
records regarding their treatment of Jews during the Holocaust. 
After the war Dulles not only 'lost' Blessings Nazi party records, 
but he helped peddle a false biography in the ever-gullible 'New 
York Times.'" 

 The authors' sources reveal that not only did Dulles help cover up 
his Nazi client's record, he "personally vouched for Blessing as an 
anti-Nazi in order to protect continued control of German oil 
interests in the Middle East. Blessing's Konti was the Nazi link to 
Iben Saud [King of Saudi Arabia] and Aramco [the Arabian- American 
Oil Company]. If Blessing went down, he could have taken a lot of 
people with him, including Allen Dulles. The cover-up worked, except 
that U.S. Naval Intelligence scrutinized a set of the captured Konti 

 According to the "old spies," Allen Dulles made a deal with the 
young navy officer who was reviewing the Konti files - Richard 
Nixon. Nixon would help Dulles bury the Konti files. In return, 
Allen Dulles "arranged to finance [Nixon's] first congressional 
campaign against Jerry Voorhis." (1) 

 Dulles's support for Nixon paid off in 1947 when, as the freshman 
congressman from California, he "saved John Foster Dulles 
considerable embarrassment by privately pointing out that 
confidential government files showed that one of Foster's foundation 
employees, Alger Hiss, was allegedly a Communist. The Dulles 
brothers took Nixon under their wing and escorted him on a tour of 
Fascist 'freedom fighter' operations in Germany, apparently in 
anticipation that the young congressman would be useful after Dewey 
became president." [He would be useful anyway, despite the fact that 
incumbent President Truman won reelection in 1948, defeating Dewey.] 

 After Truman's victory, write the authors, "Nixon became Allen 
Dulles's mouthpiece in Congress. Both he and Senator Joseph McCarthy 
received volumes of classified information to support the charge 
that the Truman administration was filled with 'pinkos.' When 
McCarthy went too far in his Communist investigations, it was Nixon 
who worked with his next-door neighbor, CIA director Bedell Smith, 
to steer the investigations away from the intelligence community.

 "The CIA was grateful for Nixon's assistance, but did not know the 
reason for it. Dulles had been recruiting Nazis under the cover of 
the State Department's Office of Policy Coordination, whose chief, 
Frank Wisner, had systematically recruited the Eastern European 
emigre networks that had worked first for the SS, then the British, 
and finally Dulles. 

 "The CIA did not know it, but Dulles was bringing them to the 
United States less for intelligence purposes than for political 
advantage. The Nazis' job quickly became to get out the vote for the 
Republicans. One Israeli intelligence officer joked that when Dulles 
used the phrase 'Never Again,' he was not talking about the 
Holocaust but about Dewey's narrow loss to Truman. In the eyes of 
the Israelis, Allen Dulles was the demon who infected Western 
intelligence with Nazi recruits. 

 "In preparation for the 1952 Eisenhower-Nixon campaign, the 
Republicans formed an Ethnic Division, which, to put it bluntly, 
recruited the 'displaced Fascists' who arrived in the United States 
after World War II. Like similar migrant organizations in several 
Western countries, the Ethnic Division attracted a significant 
number of Central and Eastern European Nazis, who had been recruited 
by the SS as political and police leaders during the Holocaust. 
These Fascist emigres supported the Eisenhower-Nixon 'liberation' 
policy as the quickest means of getting back into power in their 
former homelands and made a significant contribution 'in its first 
operation (1951/1952).'"

 The authors point out that "over the years the Democrats had 
acquired one or two Nazis of their own, such as Tscherim Soobzokov, 
a former member of the Caucasian SS who worked as a party boss in 
New Jersey. But in 90 percent of the cases, the members of Hitler's 
political organization went to the Republicans. In fact, from the 
very beginning, the word had been put around among Eastern European 
Nazis that Dulles and Nixon were the men to see, especially if you 
were a rich Fascist . . ." (3) 

 This relationship between Richard Nixon and the Nazis developed 
because both he and Allen Dulles "blamed Governor Dewey's razor-thin 
loss to Truman in the 1948 presidential election on the Jewish vote. 
When [Nixon] became Eisenhower's vice president in 1952, Nixon was 
determined to build his own ethnic base.

 "Vice President Nixon's secret political war of Nazis against Jews 
in American politics was never investigated at the time. The foreign 
language-speaking Croatian and other Fascist emigre groups had a 
ready-made network for contacting and mobilizing the Eastern 
European ethnic bloc. There is a very high correlation between CIA 
domestic subsidies to Fascist 'freedom fighters' during the 1950s 
and the leadership of the Republican party's ethnic campaign groups. 
The motive for under-the-table financing was clear: Nixon used Nazis 
to offset the Jewish vote for the Democrats. 

 "In 1952 Nixon had formed an Ethnic Division within the Republican 
National Committee. 'Displaced Fascists, hoping to be returned to 
power by an Eisenhower-Nixon "liberation" policy signed on' with the 
committee. In 1953, when Republicans were in office, the immigration 
laws were changed to admit Nazis, even members of the SS. They 
flooded into the country. Nixon himself oversaw the new immigration 
program. As vice president, he even received Eastern European 
Fascists in the White House. After a long, long journey, the 
Croatian Nazis had found a new home in the United States, where they 
reestablished their networks. 

 "In 1968 Nixon promised that if he won the presidential election, 
he would create a permanent ethnic council within the Republican 
party. Previously the Ethnic Division was allowed to surface only 
during presidential campaigns. Nixon's promise was carried out after 
the 1972 election, during [George] Bush's tenure as chairman of the 
Republican National Committee. The Croatian Ustashis became an 
integral part of the campaign structure of Republican politics, 
along with several other Fascist organizations." (4)

 The authors describe Nixon's pro-Nazi activities in no uncertain 
terms: "Nixon himself personally recruited ex-Nazis for his 1968 
presidential campaign. Moreover, Vice President Nixon became the 
point man for the Eisenhower administration on covert operations and 
personally supervised Allen Dulles's projects while Ike was ill in 
1956 and 1957." (5) 

 One of the Nazis recruited by candidate Nixon was Laszlo Pasztor, 
described by Aarons and Loftus as "the founding chair of Nixon's 
Republican Heritage Groups council" who, "during World War II . . . 
was a diplomat in Berlin representing the Arrow Cross government of 
Nazi Hungary, which supervised the extermination of the Jewish 

 "[A]fter Nixon won [the 1968 Presidential Election], he approved 
Pasztor's appointment as chief organizer of the ethnic council. Not 
surprisingly, Pasztor's 'choices for filling emigre slots as the 
council was being formed included various Nazi collaborationist 
organizations.' The former Fascists were coming out of the closet in 

 "The policy of the Nixon White House was an 'open door' for emigre 
Fascists, and through the door came such guests as Ivan Docheff, 
head of the Bulgarian National Front and chairman of the American 
Friends of the Anti-Bolshevik Bloc of Nations (ABN). . . . an 
organization dominated by war criminals and fugitive Fascists. Yet 
Nixon welcomed them with open arms and even had Docheff to breakfast 
for a prayer meeting to celebrate Captive Nations Week." (6) 

 "During Nixon's 'Four More Years' campaign in 1971-1972, Laszlo 
Pasztor again played a key role in marshaling the ethnic vote. No 
longer a marginal player on the fringes, now he held a key position 
as the Republican National Committee's nationalities director. . . . 

 "The Republican leadership cannot claim ignorance as a defense. 
[Syndicated Columnist Jack] Anderson's famous expose of Nixon's 
Nazis appeared in 'The Washington Post' at the same time as the 
November 1971 convention. Among those mentioned was Laszlo Pasztor, 
'the industrious head of the GOP ethnic groups, [who] was never 
asked about his wartime activities in Hungary by the four GOP 
officials who interviewed him for his job.' It was too embarrassing 
for Nixon to admit that Pasztor had been a ranking member of a 
Fascist government at war with the United States. 

 ". . . . It is one thing to promote obscure Eastern European 
Fascist movements in the Republican party. It is quite another to 
let the German Nazis have a major influence. After 1953, the 
Republican administration changed the rules, and even members of the 
Waffen SS could immigrate to the United States as long as they 
claimed only to have fought the Communists on the Eastern Front." 

 The Republican/Nixon attraction to Nazism was also observed by 
Robert J. Groden and Harrison Edward Livingstone, authors of the 
book, "High Treason," dealing with the Kennedy Assassination. Groden 
and Livingstone write: "Nixon surrounded himself with what was known 
as the Berlin Wall, a long succession of advisors with Germanic 
names: We recall at the top of his 'German General Staff' as it was 
also known, Haldeman, Erlichman, Krogh, Kliendienst, Kissinger (the 
Rockefellers' emissary) and many others. 

 "The selection of German names was no accident. Many of the 
brighter staff people close to Nixon came to him from the University 
of Southern California, and the University of California at Los 
Angeles, where there were fraternities that kept alive the vision of 
a new Reich. America has for a long time harbored this dark side of 
its character, one of violence and the Valhalla of Wagner and 

 "But Gordon Liddy was the one in whose mind 'Triumph of the Will' 
was the most alive. Some of these men would watch the great Nazi 
propaganda films in the basement of the White House until all hours 
of the night, and drink, in fact, get drunk with their power, with 
blind ambition, as one of them wrote." (8) 

 "According to several of our sources in the intelligence community 
who were in a position to know," continue Loftus and Aarons, "the 
secret rosters of the Republican party's Nationalities Council read 
like a Who's Who of Fascist fugitives. The Republican's Nazi 
connection is the darkest secret of the Republican leadership. The 
rosters will never be disclosed to the public. As will be seen in 
Chapter 16 dealing with George Bush, the Fascist connection is too 
widespread for damage control. 

 "According to a 1988 study by Russ Bellant of Political Research 
Associates, virtually all of the Fascist organizations of World War 
II opened up a Republican party front group during the Nixon 
administration. The caliber of the Republican ethnic leaders can be 
gauged by one New Jersey man, Emanuel Jasiuk, a notorious mass 
murderer from what is today called the independent nation of 
Belarus, formerly part of the Soviet Union. But not all American 
ethnic communities are represented in the GOP's ethnic section; 
there are no black or Jewish heritage groups. . . . 

 "The truth is that the Nazi immigrants were 'tar babies' that no 
one knew how to get rid of. Dulles had brought in a handful of the 
top emigre politicians in the late 1940s. They in turn sponsored 
their friends in the 1950s. By the 1960s ex-Nazis who had originally 
fled to Argentina were moving to the United States. . . ." (9)

 It is clear that, even before the break-in at the Democratic Party 
Headquarters on June 17, 1972, the Republicans were on the brink of 
having their pro-Nazi activities over the past four decades become a 
matter of mass-media attention. After the Watergate Break-in, as the 
Congressional Hearings began to reveal the slush-funds, money-
laundering, illegal corporate campaign contributions, the political 
sabotage of the 1972 Presidential election process, the involvement 
of ITT and the Nixon Administration into the assassination of 
Salvador Allende, the democratically elected president of Chile, and 
many other aspects of Nixonism, the floodgates of truth were about 
to open. Only one thing averted this wholesale learning of the truth 
by the American people: Nixon's resignation and subsequent pardoning 
by his hand-picked successor, Gerald Ford. 


 1.The Secret War Against the Jews, p. 221 2.Ibid., pp. 221-222 
3.Ibid., pp. 222-223 4.Ibid., pp. 122-123 5.Ibid., pp. 224-225 
6.Ibid., pp. 297-298 7.Ibid., pp. 298-299 8.High Treason, Robert J. 
Groden and Harrison Edward Livingstone, pp. 417-418 9.The Secret War 
Against the Jews, pp. 300-301


 Like Richard Nixon, George Bush was a strong anti-marijuana/hemp 
president, escalating the so-called "war on drugs" begun by Nixon. 
And, like Nixon, George Bush was deeply involved with supporting the 
Nazis in the Republican's closet. In fact, support for the Nazis was 
a Bush family tradition which goes back more than six decades and, 
once again, to Allen Dulles. 

 Loftus and Aarons write: "The real story of George Bush starts well 
before he launched his own career. It goes back to the 1920s, when 
the Dulles brothers and the other pirates of Wall Street were making 
their deals with the Nazis. . . ." 


 "George Bush's problems were inherited from his namesake and 
maternal grandfather, George Herbert 'Bert' Walker, a native of St. 
Louis, who founded the banking and investment firm of G. H. Walker 
and Company in 1900. Later the company shifted from St. Louis to the 
prestigious address of 1 Wall Street. . . . 

 "Walker was one of Hitler's most powerful financial supporters in 
the United States. The relationship went all the way back to 1924, 
when Fritz Thyssen, the German industrialist, was financing Hitler's 
infant Nazi party. As mentioned in earlier chapters, there were 
American contributors as well. 

 "Some Americans were just bigots and made their connections to 
Germany through Allen Dulles's firm of Sullivan and Cromwell because 
they supported Fascism. The Dulles brothers, who were in it for 
profit more than ideology, arranged American investments in Nazi 
Germany in the 1930s to ensure that their clients did well out of 
the German economic recovery. . . . 

 "Sullivan & Cromwell was not the only firm engaged in funding 
Germany. According to 'The Splendid Blond Beast,' Christopher 
Simpson's seminal history of the politics of genocide and profit, 
Brown Brothers, Harriman was another bank that specialized in 
investments in Germany. The key figure was Averill Harriman, a 
dominating figure in the American establishment. . . . 

 "The firm originally was known as W. A. Harriman & Company. The 
link between Harriman & Company's American investors and Thyssen 
started in the 1920s, through the Union Banking Corporation, which 
began trading in 1924. In just one three-year period, the Harriman 
firm sold more than $50 million of German bonds to American 
investors. 'Bert' Walker was Union Banking's president, and the firm 
was located in the offices of Averill Harriman's company at 39 
Broadway in New York. 

 "In 1926 Bert Walker did a favor for his new son-in-law, Prescott 
Bush. It was the sort of favor families do to help their children 
make a start in life, but Prescott came to regret it bitterly. 
Walker made Prescott vice president of W. A. Harriman. The problem 
was that Walker's specialty was companies that traded with Germany. 
As Thyssen and the other German industrialists consolidated Hitler's 
political power in the 1930s, an American financial connection was 
needed. According to our sources, Union Banking became an out-and-
out Nazi money-laundering machine. . . . 

 "In [1931], Harriman & Company merged with a British-American 
investment company to become Brown Brothers, Harriman. Prescott Bush 
became one of the senior partners of the new company, which 
relocated to 59 Broadway, while Union Banking remained at 39 
Broadway. But in 1934 Walker arranged to put his son-in-law on the 
board of directors of Union Banking. 

 "Walker also set up a deal to take over the North American 
operations of the Hamburg-Amerika Line, a cover for I.G. Farben's 
Nazi espionage unit in the United States. The shipping line smuggled 
in German agents, propaganda, and money for bribing American 
politicians to see things Hitler's way. The holding company was 
Walker's American Shipping & Commerce, which shared the offices at 
39 Broadway with Union Banking. In an elaborate corporate paper 
trail, Harriman's stock in American Shipping & Commerce was 
controlled by yet another holding company, the Harriman Fifteen 
Corporation, run out of Walker's office. The directors of this 
company were Averill Harriman, Bert Walker, and Prescott Bush. . . . 

 ". . . In a November 1935 article in Common Sense, retired marine 
general Smedley D. Butler blamed Brown Brothers, Harriman for having 
the U.S. marines act like 'racketeers' and 'gangsters' in order to 
exploit financially the peasants of Nicaragua. . . . 

 ". . . A 1934 congressional investigation alleged that Walker's 
'Hamburg-Amerika Line subsidized a wide range of pro-Nazi propaganda 
efforts both in Germany and the United States.' Walker did not know 
it, but one of his American employees, Dan Harkins, had blown the 
whistle on the spy apparatus to Congress. Harkins, one of our best 
sources, became Roosevelt's first double agent . . . [and] kept up 
the pretense of being an ardent Nazi sympathizer, while reporting to 
Naval Intelligence on the shipping company's deals with Nazi 

 "Instead of divesting the Nazi money," continue the authors, "Bush 
hired a lawyer to hide the assets. The lawyer he hired had 
considerable expertise in such underhanded schemes. It was Allen 
Dulles. According to Dulles's client list at Sullivan & Cromwell, 
his first relationship with Brown Brothers, Harriman was on June 18, 
1936. In January 1937 Dulles listed his work for the firm as 
'Disposal of Stan [Standard Oil] Investing stock.' 

 "As discussed in Chapter 3, Standard Oil of New Jersey had 
completed a major stock transaction with Dulles's Nazi client, I.G. 
Farben. By the end of January 1937 Dulles had merged all his 
cloaking activities into one client account: 'Brown Brothers 
Harriman-Schroeder Rock.' Schroeder, of course, was the Nazi bank on 
whose board Dulles sat. The 'Rock' were the Rockefellers of Standard 
Oil, who were already coming under scrutiny for their Nazi deals. By 
May 1939 Dulles handled another problem for Brown Brothers, 
Harriman, their 'Securities Custodian Accounts.' 

 "If Dulles was trying to conceal how many Nazi holding companies 
Brown Brothers, Harriman was connected with, he did not do a very 
good job. Shortly after Pearl Harbor, word leaked from Washington 
that affiliates of Prescott Bush's company were under investigation 
for aiding the Nazis in time of war. . . . 

 ". . . The government investigation against Prescott Bush 
continued. Just before the storm broke, his son, George, abandoned 
his plans to enter Yale and enlisted in the U.S. Army. It was, say 
our sources among the former intelligence officers, a valiant 
attempt by an eighteen-year-old boy to save the family's honor. 

 "Young George was in flight school in October 1942, when the U.S. 
government charged his father with running Nazi front groups in the 
United States. Under the Trading with the Enemy Act, all the shares 
of the Union Banking Corporation were seized, including those held 
by Prescott Bush as being in effect held for enemy nationals. Union 
Banking, of course, was an affiliate of Brown Brothers, Harriman, 
and Bush handled the Harrimans' investments as well. 

 "Once the government had its hands on Bush's books, the whole story 
of the intricate web of Nazi front corporations began to unravel. A 
few days later two of Union Banking's subsidiaries -- the Holland 
American Trading Corporation and the Seamless Steel Equipment 
Corporation -- also were seized. Then the government went after the 
Harriman Fifteen Holding Company, which Bush shared with his father-
in-law, Bert Walker, the Hamburg-Amerika Line, and the Silesian-
American Corporation. The U.S. government found that huge sections 
of Prescott Bush's empire had been operated on behalf of Nazi 
Germany and had greatly assisted the German war effort." (1)


 "Try as he did," continue the authors, "George Bush could not get 
away from Dulles's crooked corporate network, which his grandfather 
and father had joined in the 1920s. Wherever he turned, George found 
that the influence of the Dulles brothers was already there. Even 
when he fled to Texas to become a successful businessman on his own, 
he ran into the pirates of Wall Street. 

 "One of Allen Dulles's secret spies inside the Democratic party 
later became George Bush's partner in the Mexican oil business. 
Edwin Pauley, a California oil man, was . . . one of Dulles's covert 
agents in the Roosevelt and Truman administrations . . . a 'big 
business' Democrat. . . ."

 Among the key posts held by Pauley were: treasurer of the 
Democratic National Committee, director of the Democratic convention 
in 1944 and, after Truman's election, Truman appointed him the 
"Petroleum Coordinator of Lend-Lease Supplies for the Soviet Union 
and Britain." 

 Just after the end of World War II, "in April 1945 Truman appointed 
Pauley as the U.S. representative to the Allied Reparations 
Committee, with the rank of ambassador," as well as "industrial and 
commercial advisor to the Potsdam Conference, 'where his chief task 
was to renegotiate the reparations agreements formulated at Yalta.' 
As one historian noted, the 'oil industry has always watched 
reparations activities carefully.' There was a lot of money 
involved, and much of it belonged to the Dulles brothers' clients." 

 At the same time, report Loftus and Aarons,

 "the Dulles brothers were still shifting Nazi assets out of Europe 
for their clients as well as for their own profit. They didn't want 
the Soviets to get their hands on these assets or even know that 
they existed. Pauley played a significant role in solving this 
problem for the Dulles brothers. The major part of Nazi Germany's 
industrial assets was located in the zones occupied by the West's 
forces. As Washington's man on the ground, Pauley managed to deceive 
the Soviets for long enough to allow Allen Dulles to spirit much of 
the remaining Nazi assets out to safety. . . . 

 "Pauley, a key player in the plan to hide the Dulles brothers' Nazi 
assets, then moved into another post where he could help them 
further. After successfully keeping German assets in Fascist hands, 
Pauley was given the job of 'surveying Japan's assets and 
determining the amount of its war debt.' Again, it was another job 
that was crucial to the Dulles clique's secret financial and 
intelligence operations." (2)

 After Pauley retired from government work he went back to being an 
independent oil man. Loftus and Aarons state that: "In 1958 he 
founded Pauley Petroleum which: . . . teamed up with Howard Hughes 
to expand oil production in the Gulf of Mexico.

 "Pauley Petroleum discovered a highly productive offshore petroleum 
reserve and in 1959 became involved in a dispute with the Mexican 
Government, which considered the royalties from the wells to be too 

 "According to our sources in the intelligence community, the oil 
dispute was really a shakedown of the CIA by Mexican politicians. 
Hughes and Pauley were working for the CIA from time to time, while 
advancing their own financial interests in the lucrative Mexican oil 
fields. Pauley, say several of our sources, was the man who invented 
an intelligence money-laundering system in Mexico, which was later 
refined in the 1970s as part of Nixon's Watergate scandal. At one 
point CIA agents used Pemex, the Mexican government's oil monopoly, 
as a business cover at the same time Pemex was being used as a money 
laundry for Pauley's campaign contributions. As we shall see, the 
Mexican-CIA connection played an important part in the development 
of George Bush's political and intelligence career. . . .

 "Pauley, say the 'old spies,' was the man who brought all the 
threads of the Mexican connection together. He was Bush's business 
associate, a front man for Dulles's CIA [Allen Dulles was CIA 
director then], and originator of the use of Mexican oil fronts to 
create a slush fund for Richard Nixon's various campaigns. . . . 

 "Although it is not widely known, Pauley, in fact, had been a 
committed, if 'secret,' Nixon supporter since 1960. It should be 
recalled that Nixon tried to conceal his Mexican slush fund during 
the Watergate affair by pressuring the CIA into a 'national 
security' cover-up. The CIA, to its credit, declined to participate. 
Unfortunately, others were so enmeshed in Pauley's work for Nixon 
that they could never extricate themselves. According to a number of 
our intelligence sources, the deals Bush cut with Pauley in Mexico 
catapulted him into political life. In 1960 Bush became a protege of 
Richard Nixon, who was then running for president of the United 
States. . . . 

 "The most intriguing of Bush's early connections was to Richard 
Nixon, who as vice president had supervised Allen Dulles's covert 
planning for the Bay of Pigs [invasion]. For years it has been 
rumored that Dulles's client, George Bush's father, was one of the 
Republican leaders who recruited Nixon to run for Congress and later 
convinced Eisenhower to take him on as vice president. There is no 
doubt that the two families were close. George Bush described Nixon 
as his 'mentor.' Nixon was a Bush supporter in his very first tilt 
at politics, during his unsuccessful run for the Senate in 1964, and 
turned out again when he entered the House two years later. 

 "After Nixon's landslide victory in 1972, he ordered a general 
house cleaning on the basis of loyalty. 'Eliminate everyone,' he 
told John Ehrlichman about reappointments, 'except George Bush. Bush 
will do anything for our cause.' . . . According to Bush's account, 
the president told him that 'the place I really need you is over at 
the National Committee running things.' So, in 1972, Nixon appointed 
George Bush as head of the Republican National Committee. 

 "It was Bush who fulfilled Nixon's promise to make the 'ethnic' 
emigres a permanent part of Republican politics. In 1972 Nixon's 
State Department spokesman confirmed to his Australian counterpart 
that the ethnic groups were very useful to get out the vote in 
several key states. Bush's tenure as head of the Republican National 
Committee exactly coincided with Laszlo Pasztor's 1972 drive to 
transform the Heritage Groups Council into the party's official 
ethnic arm. The groups Pasztor chose as Bush's campaign allies were 
the emigre Fascists whom Dulles had brought to the United States. . 
. . 

 ". . . Nearly twenty years later, and after expose's in several 
respectable newspapers, Bush continued to recruit most of the same 
ethnic Fascists, including Pasztor, for his own 1988 ethnic outreach 
program when he first ran for president. 

 "According to our sources in the intelligence community," state the 
authors, "it was Bush who told Nixon that the Watergate 
investigations might start uncovering the Fascist skeletons in the 
Republican party's closet. Bush himself acknowledges that he wrote 
Nixon a letter asking him to step down. The day after Bush did so, 
Nixon resigned. 

 "Bush had hoped to become Gerald Ford's vice president upon Nixon's 
resignation, but he was appointed U.S. ambassador to the UN. Nelson 
Rockefeller became vice president and chief damage controller. He 
formed a special commission in an attempt to preempt the Senate's 
investigation of the intelligence community. The Rockefeller 
Commission into CIA abuses was filled with old OPC [Dulles's Office 
of Policy Coordination] hands like Ronald Reagan, who had been the 
front man back in the 1950s for the money-laundering organization, 
the Crusade for Freedom, which was part of Dulles's Fascist 'freedom 
fighters' program." (3)

 In 1988, Project Censored, a news media censorship research 
organization, awarded the honor of "Top Censored story" to the 
subject of George Bush. The article revealed "how the major mass 
media ignored, overlooked or undercovered at least ten critical 
stories reported in America's alternative press that raised serious 
questions about the Republican candidate, George Bush, dating from 
his reported role as a CIA 'asset' in 1963 to his Presidential 
campaign's connection with a network of anti-Semites with Nazi and 
fascist affiliations in 1988." (4) 


 1.The Secret War Against the Jews, pp. 357-361 2.Ibid., pp. 362-364 
3.Ibid., pp. 365-371 4.The 1993 Project Censored Yearbook: The News 
That Didn't Make The News - And Why, Project Censored; Dr. Carl 
Jensen, Director., pp. 230.


 If, before you finished reading this publication, you ever wondered 
why the U.S. federal government refuses to consider the medicinal 
and industrial value of cannabis hemp, despite widespread and 
growing support from the public, medical experts, industry leaders, 
and a growing number of state legislators across this nation . . . 
you now have the answer. 

 For the past several generations, Americans have been 
systematically deceived about the true nature of cannabis hemp. Many 
Americans have died - victims of political murders. Millions have 
been imprisoned, their children and their property taken away, their 
futures destroyed. The history of my own state - Kentucky - and 
others as well, have been "sanitized," rewritten, our heritage 
deleted, our citizens defrauded and impoverished to bury the truth. 

 And if, before you finished reading this publication, you ever 
wondered why the U.S. federal government would train and finance 
Central American death squads; or why, while waging the so-called 
"war on drugs," the U.S. federal government would operate cocaine 
and heroin smuggling operations around the world, bringing in tons 
of drugs to places like Mena, Arkansas; or why the U.S. federal 
government would "spread democracy" throughout the world by 
assassinating democratically elected politicians - both at home and 
abroad - replacing them with right-wing dictators and training their 
secret police in the latest techniques of torture, terrorism, and 
mind control; or why the U.S. federal government would conduct 
deadly medical and radiation experiments on unsuspecting citizens - 
including pregnant women, the mentally impaired, and children . . . 
you now have the answer. 

 The last question is "what are we going to do about it?" 

 BIBLIOGRAPHY (By section)


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Politics - Second Edition, By Thomas R. Dye and L. Harmon Zeigler - 
Duxbury Press, CA. 1972 

 The Arms Bazaar: From Lebanon to Lockheed - By Anthony Sampson - 
The Viking Press, NY. 1977


 Facts and Fascism - By George Seldes (Assisted by Helen Seldes) - 
Sixth Edition - In Fact, Inc., NY. 1943 

 Trading with the Enemy: An Expose of the Nazi-American Money Plot 
1933-1949 - By Charles Higham - Delecorte Press, NY. 1983 

 Even the Gods Can't Change History: The Facts Speak for Themselves 
- By George Seldes - Lyle Stuart, Inc., NJ. 1976 

 Power, Inc.: Public and Private Rulers and How to Make Them 
Accountable - By Morton Mintz & Jerry S. Cohen - Viking Press, NY. 

 The Plot to Seize the White House - By Jules Archer - Hawthorn 
Books, 1973 

 It's A Conspiracy!: The Shocking Truth About America's Favorite 
Conspiracy Theories - By Michael Litchfield/The National Insecurity 
Council - EarthWorks Press, CA. 1992 

 The Secret War Against The Jews: How Western Espionage Betrayed The 
Jewish People - By John Loftus and Mark Aarons - St. Martin's Press, 
NY. 1994 

 HEMP & the Marijuana Conspiracy: The Emperor Wears No Clothes - By 
Jack Herer (Editors: C. Conrad, L. & J. Osburn, E. Komp , and J. 

 H.E.M.P. (Help Eliminate Marijuana Prohibition), CA. 1995 

 One Thousand Americans - By George Seldes - BONI & GAER, NY. 1947 

 Ain't Nobody's Business If You Do: The Absurdity of Consentual 
Crimes in a Free Society - By Peter McWilliams - Prelude Press, CA. 

 A History of the Hemp Industry in Kentucky - By Professor James F. 
Hopkins - University of Kentucky Press, Lexington, KY. 1951 

 Spooks: The Haunting of America - The Private Use of Secret Agents 
- By Jim Hougan - First Bantam Edition - William Morrow and Co., NY. 

 The Sovereign State of ITT - By Anthony Sampson - Stein and Day, 
NY. 1973 

 Democracy for the Few - By Michael Parenti - Fourth Edition - St. 
Martin's Press, NY. 1983


 Tragedy and Hope: A History of the World in Our Time - By Carroll 
Quigley, Second Printing - Wm. Morrison, NY. 1974 

 The American Establishment - By Leonard Silk & Mark Silk, First 
Discus Printing - Avon Books (by arrangement with Basic Books), NY. 

 The New Germany and the Old Nazis - By T.H. Tetens - Random House, 
NY. 1961 

 Blowback: America's Recruitment of Nazi's and Its Effect on the 
Cold War - By Christopher Simpson - Weidenfeld & Nicolson, NY. 1988 

 Unholy Trinity: The Vatican, the Nazis, and Soviet Intelligence - 
By Mark Aarons & John Loftus, First U.S. Edition - St. Martin's 
Press, NY. 1992 

 Conspiracies, Cover-Ups and Crimes: From JFK to the CIA Terrorist 
Connection - By Jonathan Vankin - Bantam Doubleday Dell Publishing 
Group, Inc., NY. 1992


 High Treason: The Assassination of President John F. Kennedy and 
the New Evidence of Conspiracy - By Robert J. Groden and Harrison 
Edward Livingstone, Berkley Edition - Berkley Books, NY. 1990


 Censored: The News That Didn't Make the News - And Why - By Carl 
Jensen - Shelburne Press, Inc., NY. 1993

 Dedicated to the principals of an open discussion of the issues. 
Copy and distribute freely. Please credit direct quotations where 
appropriate. R. William Davis - Founder and Director, The Elkhorn 
Project "Restoring Kentucky's Proud Heritage and Bright Future" All 
email responses should be directed to: Hemp for 
Victory! Thank you r