cj#1144> Fresia: The Secret Government and the Rise of Nazi Germany


Richard Moore


                    Toward an American Revolution

            Exposing the Constitution and other Illusions

                            Jerry Fresia

                             Chapter 5

          The Constitution and Secret Government
              (a) The Constitution and Secret Government
              (b) The Power of the President and the Role of Congress

          (c) The Secret Government and the Rise of Nazi Germany

              I have suggested that the military defeat in
              1787 of Daniel Shays and others who resisted the
              advancement of market relations expressed
              counter-revolutionary tendencies because it
              marked a return to the imperial values of Great
              Britain. As market relations became fully
              capitalist and spread from Europe and the United
              States into other parts of the world, resistance
              was organized by those who, similar to the
              participants of Shays Rebellion, sought either
              to defend or create space for an alternative way
              of life. And like the Framers of 1787, U.S.
              government leaders together with private elites
              have often felt compelled to organize
              counter-revolutionary armies to protect property
              and market relations or what they prefer to call
              "freedom." The first counter-revolutionaries or
              "freedom fighters" were the Framers themselves
              when they put down Shays Rebellion. The next
              organized effort to enlist Freedom Fighters to
              put down a revolution was in response to the
              overthrow of the Russian czar by the Bolsheviks
              after World War I.

              International bankers and lawyers in the
              Northeast, alarmed by the Bolsheviks but
              determined to press on with the expansion of
              foreign investments and operations, established
              the American branch of the Round Table Groups, a
              set of "semicovert policy and action groups"
              formed at the turn of the century by English
              aristocrats and bankers who sought to create a
              federation among the English speaking peoples of
              the world. The American group, centered in New
              York and led by the Rockefeller-Morgan financial
              establishment, has since come to be known as the
              Council on Foreign Relations (CFR) which was
              then committed to bringing the government and
              "all existing international agencies...into
              constructive accord." A second response was to
              assist the displaced armies and supporters of
              the czar, or White Russians, who were poised to
              restore the czar, his court, and his
              industrialists to power. Fourteen nations,
              including the United States, placed troops
              inside the borders of the Soviet Union. And
              still other responses were combinations of the
              two. But significant for us is the mixture of
              private interest and public policy particularly
              with regard to the use of the government for
              counter-revolutionary measures. With this in
              mind, let us outline the linkage of private and
              public power, in the immediate post-war era, of
              Herbert Hoover.

              Hoover, a former mining engineer employed by
              British concerns, had become a successful
              entrepreneur in Russian oil wells and mines. He
              had major investments in eleven Russian oil
              companies. By 1912, together with British
              investor Leslie Urquhart, Hoover had formed the
              Russo-Asiatic Corporation which was worth (in
              1912 dollars) $1 billion. After the Russian
              revolution, Hoover's property was seized and a
              claim was filed with the British government by
              Russo-Asiatic Consolidated, a new cartel which
              Hoover and his partners had formed to protect
              their Russian interests, for $282 billion for
              damage to properties and loss of probable annual
              profits. Hoover, however, was also director of
              the American Relief Administration for the
              United States government. And it was in this
              capacity that he was able to use food relief to
              covertly support the White Russian army.13

              The interest of the government of the United
              States was, by 1917, part of the interests of a
              North Atlantic class of capitalists. The
              armistice of 1918 (the Treaty of Versailles)
              between Germany and the allied powers contained
              in Article 12, for example, a clause stipulating
              that German troops should remain, with the
              consent of the allies, in whatever Russian
              territory they then occupied. It was understood
              that these forces would be used against the
              Bolsheviks. The British directed the remnants of
              the German army against the Red Army under
              General Rudiger Vondergoltz and later under the
              czarist, General Nicolas Yudenitch. In each
              instance, Hoover placed food supplies, which
              were intended for the relief of starving
              Europeans, under the direction of these generals
              who were proceeding with wholesale executions
              and campaigns of general terror. The money for
              the food relief had been in part appropriated by
              Congress and some of it had been privately
              donated. The point should not be lost, however,
              that Hoover was using an Executive branch of the
              government, covertly, to advance his private
              interests and the counter-revolutionary
              interests of his class. But he was not alone. In
              February of 1922, the New York Globe
              editorialized, "Bureaucrats centered throughout
              the Department of Justice, the Department of
              State, and the Department of Commerce...are
              carrying on a private war with the Bolshevist
              government..." There was in 1922, in other
              words, just as there had been earlier, a secret

              The penetration of the Soviet Union by the
              allied supported czarist Freedom Fighters was
              turned back. Moreover, to the horror of Western
              elites, enthusiasm among peasants and workers
              for various anti-capitalist ideologies spread
              throughout the West including the United States.
              It was in this context that many Western elites
              believed that their salvation lay in the
              rearmament of Germany. In other words, a rearmed
              Germany, together with royalist White Russians,
              would constitute the ultimate
              counter-revolutionary force both within Europe
              and against the Soviet Union.

              The first obstacle to overcome in the
              reindustrialization and rearmament of Germany
              was the Treaty of Versailles itself. The allies
              had imposed exorbitant reparations payments on
              Germany. Therefore, prominent U.S. bankers, such
              as J.P. Morgan, Charles G. Dawes, and Owen D.
              Young, with the support of the U.S. government
              came up with two plans, the Dawes and Young
              Plans, which would help Germany with its
              reparations payment problem through very
              generous international loans. The loans helped
              strengthen Germany's three largest firms (which
              had significant U.S. capital participation), IG
              Farben, United Steel, and German General
              Electric (30 percent of which was owned by U.S.
              General Electric) by enabling them to
              out-produce their competition and develop new
              product lines. It should be pointed out that IG
              Farben, a huge chemical and pharmaceutical
              conglomerate that enjoyed close ties to Standard
              Oil (now Exxon) even after Pearl Harbor, was,
              perhaps, the single most important firm in Nazi
              Germany. In addition it produced the gas for the
              Final Solution and built a synthetic fuel and
              rubber plant at Auschwitz, which it had created,
              in order to create an inexhaustible supply of
              slave labor.

              Two Americans who played a central role in
              successive secret governments were John Foster
              Dulles and his brother Allen. John Foster
              Dulles, as special counsel to the Dawes
              Committee, had drawn up the Dawes Plan and would
              eventually become Secretary of State under
              Eisenhower. Allen Dulles would become
              Eisenhower's CIA Director. Both Dulles brothers
              were partners in Sullivan and Cromwell which
              handled the legal affairs of American IG (the
              U.S. subsidiary of IG Farben). The Dulles
              brothers were also deeply involved in a number
              of U.S. and German firms and banks or their
              subsidiaries that contributed to the Nazi
              build-up and in U.S. firms which later traded
              with the enemy during World War II (such firms
              as the Chase Bank, Ford, ITT, General Aniline
              and Film, and Standard Oil).14

              Numerous other U.S. corporations also were
              deeply involved in the German military build-up.
              Hitler's two largest tank producers were
              Adam-Opel and Ford of Cologne, wholly owned
              subsidiaries of General Motors and the Ford
              Motor Company. The Curtis-Wright Aviation
              Corporation helped the German Air Force develop
              secret dive bombing techniques and they supplied
              the German air force critical parts which were
              desperately needed by U.S. aircraft. The
              research of Charles Higham is the most
              exhaustive in this area. Perhaps a brief excerpt
              from his work will helped us grasp the depth of
              the U.S. corporate-Nazi collaboration. In noting
              that his research was made more difficult
              because the "government smothered everything,
              during and even (inexcusably) after the war," he
              speculates as to the reasons why:

                   What would have happened if millions
                   of American and British people,
                   struggling with coupons and lines at
                   the gas stations, had learned that in
                   1942 Standard Oil of New Jersey [part
                   of the Rockefeller empire] managers
                   shipped the enemy's fuel through
                   neutral Switzerland and that the enemy
                   was shipping Allied fuel? Suppose the
                   public had discovered that the Chase
                   Bank in Nazi-occupied Paris after
                   Pearl Harbor was doing millions of
                   dollars' worth of business with the
                   enemy with the full knowledge of the
                   head office in Manhattan [the
                   Rockefeller family among others]? Or
                   that Ford15 trucks were being built
                   for the German occupation troops in
                   France with authorization from
                   Dearborn, Michigan? Or that Colonel
                   Sosthenes Behn, the head of the
                   international American telephone
                   conglomerate ITT, flew from New York
                   to Madrid to Berne during the war to
                   help improve Hitler's communications
                   systems and improve the robot bombs
                   that devastated London? Or that ITT
                   built the FockeWulfs that dropped
                   bombs on British and American troops?
                   Or that crucial ball bearings were
                   shipped to Nazi-associated customers
                   in Latin America with the collusion of
                   the vice-chairman of the U.S. War
                   Production Board in partnership with
                   Goering's cousin in Philadelphia when
                   American forces were desperately short
                   of them? Or that such arrangements
                   were known about in Washington and
                   either sanctioned or deliberately

              The U.S.-Nazi collaboration, we find, was not
              strictly a private matter. The tendency was for
              corporate elites to use their own organizations,
              private networks, and their positions in the
              government to form a secret government. Dean
              Acheson, for example, as Secretary of State and
              as former Standard Oil lawyer, together with the
              Treasury department issued licenses permitting
              Standard Oil and other corporations to trade
              with enemy collaborators during the war. Higham
              states that while President Franklin Roosevelt
              knew that these corporations were trading with
              the enemy, there was little he could do.
              "Roosevelt was blackmailed, " states Higham.
              "You can't run a war without Chase Bank, or
              Standard Oil of New Jersey, or ITT."17


              13. For information on Hoover and the post-war
              attack on Russia see Albert E. Kahn and Michael
              Sayers, The Great Conspiracy: The Secret War
              Against Soviet Russia (Boston: Little, Brown
              Books, 1946); also I have profited very much
              from the research of Dave Emory and Nip Tuck
              whose work in this area can be obtained on audio
              cassettes from Davkore Co., 1300-D Space Park
              Way, Mountain View, CA 94043.

              14. Leonard Mosley, Dulles (New York: Dial
              Press, 1978).

              15. Henry Ford received the Grand Cross of the
              German Eagle from Hitler, the highest award that
              the Nazis could give a foreigner. Ford had also
              written anti-Semitic texts, such as The
              International Jew which reportedly influenced

              16. Higham, Trading.

              17. Higham, 62; the last quote is taken from an
              interview conducted with Charles Higham by
              Louise Belloti, November 1982, broadcast on
              KPFA, Berkeley, CA

Coming next:
              The Secret Government Following World War II

Richard K Moore
Wexford, Ireland
Citizens for a Democratic Renaissance 
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