FACTS AND FASCISM
CHAPTER VI: THE NAZI CARTEL PLOT IN AMERICA
ONLY THE little seditionists and traitors have been rounded up by the F.B.I. The real Nazi Fifth Column in America remains immune. And yet there is evidence that those in both countries who place profits above patriotism -- and Fascism is based entirely upon profits although all its propaganda speaks of patriotism -- have conspired to make America part of the Nazi Big Business system.
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 among them. 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. Of the Aluminum Corporation sabotage and that of other leading companies the press said very little, but several books have now been written out of the official record.
The document which follows, and which was first published by In Fact on July 13, 1942, goes much further than the mere cartel conspiracies of Big Business of both countries, 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. The real Fifth Column is built on more than economic penetration, and much more than a few pro-Nazi preachers, red network manipulators, publishers of cheap and lying anti-Semitic pamphlets, and crackpots of all sorts. In Spain, where the term Fifth Column originated, it was not reported generally that the pro-Franco traitors within Madrid, who hid on roofs and murdered people in the streets, were -- except for hired gunmen -- members of the upper ruling class, the aristocrats, the landowners, and the members of the big business ruling families, and all the dead and wounded were working men.
Our press, which had nothing but praise for Mussolini for almost a generation, and which has always protected Fascism, Naziism and reaction in general by redbaiting every person and movement which is anti-Fascist, anti-Nazi and anti-reactionary, later made a grand noise over the traitors, seditionists and propagandists such as Coughlin, Fritz Kuhn and Pelley, who were the outstanding loudmouths at the time of Pearl Harbor. These small-fry fascisti and the Rev. Gerald Winrod and numerous others spread the same lies which they received from Hitler's World-Service (Welt-Dienst) of Erfurt; all these noisy propagandists and traitors, repeating Hitler's propaganda, did succeed in raising a huge smokescreen over America. Behind this artificial redbaiting, anti-Semitic, anti-New Deal fog of confusion and falsehood, however, there was a real Fifth Column of greater importance, the great owners and rulers of America who planned world domination through political and military Fascism, just as surely as Hitler did in Germany, and like groups and like leaders did in other countries. There is no reason to believe that the United States was the one exception to the spread of Fascism.
Nine men, two representing Hitler and several leading American industrialists, members of the Congress of the United States, and representatives of large business and political organizations met at the Hotel S______ in Boston, on November 23, 1937 -- at a time Hitler was trying out his Condor Legion, his divebombers, his new tanks and his Panzerdivisionen and his Blitzkrieg tactics on the poor and practically unarmed people of Spain -- to formulate a working agreement by which American forces would join Nazi forces in the monopolistic control of the world's business and the political and military domination of the whole world.
The document which follows is a memorandum written at the conclusion of the meeting. The secretary who collected the notes from five of the persons present, each of whom contributed a part ... was not versed in social, economic and political matters, but was impressed somehow with the importance of the event, and although her notes were taken away from her, she did succeed in retaining a carbon copy of the document. It had a long journey, went to Scotland, was copied by persons who realized its value, and brought back to the United States, where I was able to obtain it for the readers of In Fact. Here it is in its entirety:
TEXT OF THE NAZI-U.S. CARTEL MEMORANDUM
"The purpose of this draft is not to commit anyone who attended our formal conference. On the contrary, the memorandum should only retain and preserve the main topics of our conversation which, if desired, could be reported to proper organizations or individuals having the competence and privilege to draw practical conclusions or take appropriate steps.
"1. One of our German guests emphasized in his statement that he has no authority to give any official viewpoint. Nevertheless, his personal impression is after years-long service in connection with consular representations here that radical changes took place in America's foreign policy with regard to Germany. 'Our country,' he said, 'was accustomed to regard the United 'States as a source of friendly influence. Its contributions have alleviated Germany's burden under the peace treaty. President Hoover's step leading up to the complete elimination of the financial debt resulting from the Versailles treaty was considered always as characteristic manifestation of the American attitude towards the German people.
"'The Roosevelt Administration has introduced important changes which tend to alter the German opinion concerning the American attitude. A certain agitation was allowed to interfere with German-American relations. Instead of cooperating in the opening of tremendous potential markets, Germany and America were forced to join hostile diplomatic camps. The potential markets China and Russia cannot be organized with(out) the active collaboration of American capital, however. World recovery is thus delayed.
"'Germany is therefore willing to undertake everything humanly possible, in order to approach directly the financial and industrial leaders of the United States. The creation of a Japanese monopoly in the Far East is not desirable. Nor is for that matter a Chinese victory. The new Presidential elections must bring the United States on the side of the powers fighting for the reorganization of the world markets.
"'To support those trends in the American public opinion which definitely favor such a change, is the paramount task of the German foreign policy. This support does not only include the swinging of the German-American vote to a presidential candidate definitely sympathetic to the aforementioned aims, but also all possible cooperation with truly national forces. This, of course, cannot be construed as interference into American internal affairs, since the concrete form as well as the extent of that support must be determined by the political groups concerned.'
"2. Our second German guest, who was just recently appointed to a diplomatic post in this country, supplemented the above statements with the following points:
"Germany has been grossly misrepresented before the American public by Jewish propaganda. 'In order to clarify the picture,' he said, 'it is necessary to recall that Germany of the Republican period has thrown a remarkable confusion into the minds of the Germans. The state has been identified with some popular welfare institution. Creative capital was overburdened by the effects of a Utopian "social welfare" legislation. Unemployed insurance, sick, old-age, and death benefits, social security and war pensions meant terrible handicaps already. Trade union wages and hours have lifted productive costs above world standards.'
"What is the paramount achievement of National Socialism? 'The spirit of New Germany was conducive to a kind of national solidarity. Exaggerated demands and "social service" were reduced and production costs realistically brought into harmony with the requirements of competition on the world markets. This is what we have done. Not more and not less. It is true that many objections had to be overcome. The conception featuring the State as a supreme welfare agency had to be eradicated and a policy of increased production pursued instead. We had to silence therefore all centers from where class struggle was being fomented and imprison dangerous Utopians and sentimental philanthropists. It is true that Jewish propaganda was able to capitalize on some stern measures and slander New Germany before the world opinion. This is undoubtedly a detrimental fact. But we have gotten more by the rebirth of national solidarity and the cooperation of all for the same purpose.
"'Without wishing to arouse any semblance of interfering with domestic questions in the United States, I cannot help mentioning that today's America presents a very close picture of Social-Democratic Germany. Unrealistic "welfare legislation" sponsored by the Administration, chaotic class struggles and wage demands absolutely out of any proportion, strong Jewish influence in the political, cultural and public life of the country are disquieting phenomena. We Germans, at any rate, are disquieted. We carry on a good work for world recovery and we know what potential danger an increasing red influence in the United States would mean for the whole world.
"'Another disquieting characteristic of the situation is the lack of unity and clear-sighted leadership in the scattered national camp. You cannot stand a strong concerted drive of all forces and agencies for the revival of American nationalism as long as this situation prevails.
"'It is time to think seriously of the centralization of all forces of American nationalism and traditionalism. We Germans are seeking the cooperation of all American nationalists. Above all we believe in cooperating with the economic leaders of the country, whatever the suitable form of the cooperation may be. There is little comprehension on behalf of the United States Government, but in our belief there must be comprehension for our viewpoint on behalf of business.
"'We would advance the idea of such informal conferences between responsible business and political leaders in order to consider questions of national and international importance affecting economic and, yes, political recovery.'
"The following opinions were expressed by the American participants of the conference:
"(a) The substance of the German suggestion amounts to changing the spirit of our nation as expressed by recent elections. That is possible but by no means easy. The people must become aware of the disastrous economic effects of the policies of the present Administration first. In the wake of the reorientation of the public opinion a vigorous drive must start in the press and radio. Technically it remains a question as to whether this drive may center around the Republican National Committee.
"(b) Farsighted business men will welcome conferences of this kind. A tremendous inspiration might come out of them. There is no reason why we should not learn of emergencies similar to those prevailing in our own country and the methods by which farsighted governments were trying to overcome them. It is also clear that manufacturers, who usually contributed to the campaigns of all candidates, must realize that their support must be reserved to one, in whose selection they must take an active hand.
"We must just as well recognize that the business leaders of this country must get together in the present emergency. By now they must have realized that they cannot expect much from Washington. We will have to resort to concrete planning.
"We can all agree that it is desirable to convince our business leaders that it is a good investment to embark on subsidizing our patriotic citizens' organizations and secure their fusion for the common purpose.
"Unified leadership with one conspicuous leader will be a sound policy. We will be grateful for any service our German friends may give us in this respect.
"(c) American foreign policy must be chiefly guarded against the danger of the sovietization of the Far East. More than ever we must supervise by Congress what the State Department does. Rapprochement with Germany, while unpopular, is a necessity, if we consider the strong pro-Soviet agitation going on and finding patronage in the United States. It is of the greatest importance that leading and influential figures in our business life and the policy-making bodies of both political parties should be appraised of this first conversation and prevailed upon to discuss the possibilities of a non-partisan cooperation on the subject."
THREE AMERICANS, TWO NAZIS WROTE MEMO
The importance of the foregoing memorandum, the first of a proposed series of notes upon which a political- Commercial pact between the Nazi regime and pro-fascist Americans could be arranged, was recognized at the time. Shortly afterwards a SO-called "little Dies" committee, one of several flourishing in many states in imitation of and sincerest flattery to the big native Fascist Martin, was invited to make an investigation into the origins of the plot. But the informant was told by a Boston member of the Massachusetts redbaiting organization that this was not the stuff it was after, this memorandum, in fact, was "all right." In other words, plots by Nazis and their American friends were passed over or approved in Boston in just the same manner Nazi activities throughout the United States were passed up by Martin Dies, the fair-haired boy of the Goebbels broadcasting stations.
Each of the five parts, listed as 1 and 2, and a, b, and c, was written by a participant in the 1937 meeting. No. 1 is the work of Baron von Tippleskirch, No. 2 that of Baron von Killinger, "a" was written by a member of the U.S. Senate who was at this meeting, "b" by a representative of General Motors, and "c" by the representative of the DuPont interests.
In 1939, shortly before Germany invaded Poland and started the Global War from which the Nazis and their Quislings and Fifth Columns in all lands but Russia hoped to emerge rulers of the world, a diplomatic representative visited the seven Americans each of whom owned a copy of the foregoing memorandum. The importance of the document lies largely in the prominence and importance of the nine men who attended the conference and the forces and corporations they represented. Of these nine, their governments, and their corporations and other interests, I have information on five. These are:
Baron von Tippleskirch, Nazi consul general in Boston.
Manfred Freiherr von Killinger, then newly appointed consul general in San Francisco. Killinger was one of the eight men who participated in the murder of the Catholic statesman Erzberger in Republican Germany. The fact that he was found persona grata by our State Department, where Mr. Hull has a dozen pro-Fascist assistants functioning even today, is interesting. Killinger arrived just before Japan began her invasion of China, and conferred also with Japanese agents.
General Motors Representative. General Motors was completely involved in Nazi affairs. Until Pearl Harbor it was the owner of the Adam Opel A.G., worth more than $100,000,000. It had paid $30,000,000 for 80% of the stock. It had made 30% of Germany's peacetime passenger cars. After Hitler came into power, it began manufacturing the trucks and panzer division equipment with which Hitler waged war. In 10 years it had made a profit estimated at $36,000,000. But, since Hitler banned the export of capital, and American stockholders were thereby denied these dividends, General Motors invested at least $20,000,000 in other industries, all owned or controlled by Goering and other Nazi officials, and thus General Motors was completely affiliated with Nazi success or failure. (Source for statistics: Poor's Manual.)
Alfred P. Sloan, president of General Motors and director of DuPonts, was charged by the U.S. Treasury (June 29, 1937), just five months before the date of our memorandum, with cheating the government out of $1,921,587 in three years through establishing personal holding companies to dodge taxes.
DuPont Representative. The four most important facts about the DuPont Empire are:
a. that it controls General Motors, owning $197,000,000 of General Motors stock;
b. that it financed the Liberty League, Sentinels, Crusaders and one dozen native American fascist outfits;
c. that it knowingly and secretly and in violation of the U. S. and other laws, aided Hitler to arm for this war;
d. that the DuPonts betrayed military secrets to Hitler.
One great cartel of the merchants of death is called Dynamit-Aktien-Gesellschaft (DAG). Exhibit 456 in the Nye Vandenberg munitions investigation shows that DuPonts not only own stock but a voting right and a voice in the management of the cartel. Exhibit 456 also shows DuPont has a financial interest in I.G. Farbenindustrie) the Nazi cartel which ties up with the Aluminum monopoly, Standard Oil, synthetic rubber, Sterling and other drug concerns.
The DuPont contract with DAG, British Imperial Chemicals and Nazi interests, as published by the munitions committee, says in part: "Each party agrees ... upon making or obtaining any patented invention or discovery or acquiring any secret invention, to disclose in writing to the other party immediately, or in any event within six months thereafter, full particulars." It may be noted that according to Thurman Arnold the Nazified I.G. Farben obtained Standard Oil synthetic rubber patents, that Standard Oil did not receive all German patents, and that Standard Oil refused to make the German patents known to the U.S. Government even after Germany attacked.
The DuPonts knew that according to the Thyssen plan German Fascism was nothing more than a system by which the biggest German industries got control of the nation, smashing small business, seizing political rule. Wendell R. Swint, director of DuPont foreign relations, testified the DuPonts knew of the "scheme whereby industry would contribute to the (Nazi) Party Organization funds, and in fact industry is called upon to pay one-half percent of the annual wage or salary roll to the Nazi organization." (Munitions Hearing, Vol. XII.)
The relationship of the DuPonts to Nazi Germany -- the story of how they armed Hitler with the help of Mr. Hoover -- as exposed by the munitions investigation, gives valuable support to the foregoing.
On December 4, 1938, the Associated Press, Moscow bureau, sent out a list issued by the official Tass government press bureau of a "fascist clique" in the United States, which list follows with explanatory facts about each person:
"War Industry Magnate" DuPont. The official statement said the DuPonts had "great capital investments in fascist Germany."
William S. Knudsen, president of General Motors. Knudsen told a New York Times reporter (October 6, 1933) on arriving from Europe that Hitler's Germany was "the miracle of the 20th Century." Nevertheless paragraph "c" in our memorandum was not written by Knudsen, but by another GM official of equal prominence.
Colonel Lindbergh. In addition to collaborating with the British Cliveden Set, Lindbergh had written an article for the reactionary Reader's Digest stating Hitler's Aryan myth and other fascist doctrines.
Former President Herbert Hoover. (See Bibliography.)
Ambassador to Britain Joseph P. Kennedy. Kennedy's secret report to Roosevelt on the war favored Britain going Fascist.
Henry Ford. (See Chapter IX.)
Bruce Barton. One of America's leading advertising men, head of an agency controlling $40,000,000, Barton has a tremendous influence on America's corrupt commercial press. Barton is a native Fascist. He praised "the sense of national obligation which Mussolini has recreated in the soul of Italy." He wrote: "Must we abolish the Senate and have a dictatorship to do it? I sometimes think it would be almost worth the cost." (American Magazine, June, 1930. Barton objected to ideas he had written being used against him when he ran for the Senate. He said they were years old. But when he wrote an endorsement of Mussolini, the Duce had already murdered thousands of persons, destroyed the labor unions, outlawed civil liberties.)
Senator Arthur H. Vandenberg. As part of the Nye-Vandenberg Munitions inquiry, Senator Vandenberg went after the DuPonts and exposed their relations with Hitler. This was not a hardship for Vandenberg. He has always been Ford's friend, and Ford was the rival of General Motors, which the DuPonts controlled. By Mussolini's definition of Fascism as Reaction, Vandenberg qualifies as one of America's leading Fascists. In his Congressional record are votes against the Wagner Act (the Magna Carta of American labor), the Wages and Hours Act, TVA, AAA. In opposing the Black-Connery Wages and Hours Bill, three months before the date of the foregoing memorandum, Vandenberg said it would make for a "centralized, authoritarian state with its tyranny of oppressive, government-blessed monopolies." In 1936 Vandenberg had urged a coalition of reactionary Republicans and reactionary Democrats to block the New Deal.
On November 27, 1937, Captain Fritz Wiedemann, Hitler's personal adjutant, en route to the U.S., was exposed in Paris as heading a Nazi political mission whose purpose was to seek the support of leading American reactionaries and pro-Fascists to further Hitler's aggressive aim in Europe.
Mme. Genevieve Tabouis, militant editor of L'Oeuvre, one of the 2% of the French press which was not bribed, wrote in her paper that day that it was the object of the Nazi mission to make contact with Senator Vandenberg of Michigan.
The United Press cabled a similar statement from Paris that day, adding that it was based on information from a reliable source in Berlin.
The New York Herald Tribune, which receives United Press service, suppressed the item concerning Vandenberg.
Mme. Tabouis stated that Germany was seeking assurances from the United States and Britain in order "to leave her hands free in the East, particularly concerning expansion in Central Europe towards Russia." (Note: Mme. Tabouis, also called "Cassandra," was proved absolutely right when Germany attacked Russia in June, 1941.) Mme. Tabouis continued:
"The aim of the mission is to try to convince the American people that Germany wants peace but desires facilities in Central Europe. It also wants to show that Germany's great aim is opposition to Communism throughout the world. This mission will enter into close relations with Senator Vandenberg. ..."
DOCUMENTATION AND REFERENCES:
Guenther Reimann, Patents for Rifler, Vanguard, 1942.
Joseph Borking and Charles A. Welsh, Germany's Master Plan, Duell, Sloan & Pearce, 1943.
Munitions Industry, 73rd Congress, Part 9 (Hoover and the Du Ponts, pp" 2138ff; 2150; 2169-70; 2242).