ABOUT THOSE WHO ARE AGAINST PEACE

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CIA-RDP65-00756R000300270001-9
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427
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December 9, 2016
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August 24, 1998
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Publication Date: 
December 16, 1959
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REPORT
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Approved For Release 2.001/07128 : CIA-RDP65-00756R0003002704001-9 FOR OFFICIAL USE ONLY ABOUT THOSE WHO ARE AGAINST PEACE Translation No 732 16 December 1959 WARNING LAWS RELATING TO LIBEL, SLANDER AND COMMUNICATIONS REQUIRE THAT THE DISSEMINATION OF THIS TEXT BE LIMITED TO "OFFICIAL USE ONLY." EXCEPTION CAN BE GRANTED ONLY BY THE ISSUING AGENCY. USERS ARE WARNED THAT NONCOMPLIANCE MAY SUBJECT VIOLATORS TO PERSONAL LIABILITY. Prepared by Foreign Documents Division CENTRAL INTELLIGENCE AGENCY 2430 E. St., N. .W., Washington 25, D.C. FOR OFFICIAL USE ONLY Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 FOR OFFICIAL USE ONLY ABOUT THOSE WHO AB E AGAINST PEACE (0 Tekh, Kto Protiv Mira) (Articles, Sketches, Pamphlets, TRANSLATION NOTE [READILY IDENTIFIABLE :PERSONAL. AND PLACE NAMES AND ORGANIZATIONAL TITLES '?AREAIENDERED HERE IN STANDARD ENGLISH FORM. HOWEVER, TIME LIMITATIONS MADE IT NECESSARY TO APPROXIMATE FROM THE RUSSIAN LESSER KNOWN NAMES AND TITLES.) State Publishing Haase for Political Literature, Moscow, 1957 FOR OFFICIAL USE ONLY Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 FOR OFFICIAL USE ONLY V. KUJORTAVCHIKOVA, Editor V. MCA:EVA, General Editor B. UPIMOVA, Artist Cover and Caricatures E. KROTOV, Caricature Captions The articles, sketches, and. pamphlets, as well as the caricatures of B. Yefimova and the epigrams of E. Krotov are being published for the first time in this book. * * * It is requested that comments on the book be forwarded to the Pub- lishing Rouse for Political Literature at the following address: Room 417, 15 B. Ealuzhskaya Ulitsa, Moscow. FOR OFFICIAL USE ONLY Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 FOR OFFICIAL USE ONLY ABOUT THOSE WHO ARE AGAINST PEACE (0 Tekh, Kto Protiv Mira) TABLE OF CONTENTS Article Author Unmask the Forces of War -- Aid the Cause of Peace Page 1 USA The Staffs of the American Plutocracy D, Asanov 2 Uncrowned Kings of America V. Moray 24 Oil, B1oo6, and Dollars O. Feofanov 41 herchants of Death C. Dad' yenta 52 Plunderer First Class M. Andreyev 58 The iinEncivl "Empire" of the Mellons I. L-Titskiy 73 Hell's Kitchen of Charles 1] Wilson V. Voloan 83 The Bank of the Dillons and Its International Ventures V. Morey 93 American Atom-Mongers N. Novosellskiy 102 The Dirty Work of Allen Dulles V. Mrkhov 114 The Atom-Monger Senator and His Sermons 7. Leontlyev 125 "The Police -- Above All" O. l'ruelkov 132 "SACEUR III" M. Vilcnskiy 143 The Legion of American Reaction Yur. Chaplyi;in 153 Behind the Labor-Union Screen G. Kulikova 166 - a - FOR OFFICIAL USE ONLY Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 209,4076ificaetP6A65u)1756R000300270001-9 Article Author Page Great Britain Captains of British Industry P. Snegov 182 The Intelligence Service Man A. Leonidov 195 Agent of the International of Death A. Leonidov 206 Field Marshal Montgomery ?s Obsession A. Leonidov 217 The Bonn Ropublic The Smithy of War M. Sturua 226 The War-Criminal Company A. Galkin 241 The Generals Return .. O. Nakropin and 247 D. Mellnikov Leader of the German Revenge-Seekers A. Galkin 260 Master of Black Deeds A. Galkin 266 Shadow Over Europe N. Gribachev 272 Prance Politics and Profits N. Molchanov 277 ' The Bank of War A. Alekseyev 291 The Tral4br Bank A. Alekseyev 304 The. DolIarloTraVelling SalesMan A. Khazanov 313 Belgium The "Common Denominator" of Mr. Speak M. Sturua 323 Asia and Africa The Last Comprador of China Puppet of American Monopolies D. Zaslavskly 334 D. Zaslavskiy 356 - b -- FOE OFFIPIAL USE ONLY Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 FOR OFFICIAL USE ONLY Article Author Page Betrayer of the Vietnamese People S. Ivanov 368 The Suez Canal and the Imperialists D. Danis 379 Enemy of the Freedom of the Arab Countries D. Danis 393 Appendix 4o6 - c - FOR OFFICIAL USE ONLY Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 FOR OFFICIAL USE ONLY 1Laws relating to libel, slander and communications require that the dissemination of this text be limited to "Official Use Only." Exception can be granted_ only by the issuing agency. Users are warned that noncompliance may subject violators to personal liability.] Unmask the Forces of War -- Aid the Cause of Peace Millions of people all over the world are asking: Is it possible to avert war, to avoid the spilling of blood, the destruction of enormous material, spiritual and cultural values accumulated by the labor of many generations: The Soviet Union gives a direct answer to this question: Yes, there is sucli a possibility. It is based on the Leninist principle of the peaceful coexistence of states with different social and political systems, which is the foundation of the foreign policy of the Soviet state. The Leninist idea of peaceful coexistence and cooperation between states is winning more and more supporters. In the capitalist world it is supported not only by the toilers, on whom is laid all the burden of war, but also the most sober circles of the national bourgeoisie who understand what a mortal danger a new war offers for them. The idea of peaceful coexistence is rejected only by the monopo- listic circles of the U. S. and their allies. In the chase after profit which presages new bloody conflicts, these monopolistic circles strive to hinder the development of cooperation between peoples, to hinder reduc- tionpf tension in international relations. Enriching themselves in the arms race', they do not even want to hear about banning atomic and other types of weapons of mass destruction, about the reduction of armed forces. Hatching aggressive plans, the imperialist organizers of bloody wars and conflicts count on the peoples not rendering serious resistance to. them. But the times when the peoples looked upon war as an inevitable evil have vanished eternally. The peoples have acquired enormous politi- cal experience. They no longer want to make sacrifices for the sake of the enrichment of a clique of magnates of capital. The movement offighters for peace is placing a mighty obstacle in the path of the warmongers. This movement is achieving newer and. newer 'Victories, is drawing into its ranks millions of peace partisans in all countries. The unmasking of the aggressive policy of the imperialist powers, and above all, the American imperialism, has great significance in this struggle. To show the roots of this policy, to reveal its moving forces, to show those to whom a war is necessary and who are preparing it -- this is the goal which the publishing house placed before itself in publishing the present collection. -1 FOR OFFICIAL USE ONLY Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 The facts cited in the book are taken from varied international life. All of them were cited in the foreign press. These facts confirm the depth of the danger which the aggressive policy of the imperialists of the U. S., England, France, and other assistants of American imperial- ism reprents. The articles, essays, and pamphlets cited show the power of the monopolies and their responsibility for the policy of unleashing war. A number of articles, essays, and pamphlets depict the antipopular activity of the most notorious, most typical eervants of monopolistic capital. The striving of US monopolies to hide their activity from the masses, the severe, if unseen, censorship, limits the factual material at the disposal of the authors. Many facts are still unknown. But even those materials which are cited in the collection make it possible for the reader to obtain an answer to the question of Who is against peace, Who is preparing a new imperialist war. ILM "They speak pompous words about a 'sacred struggle for independence of the peoples, and they themselves, in a cold- blooded way, play with the lives of millions, puahing the peoples into war for the sake of profits of a clique of merchants and indus- trialists." -- V. I. Lenin "Capitalists of all countries are an identically repulsive and inhuman tribe, but Yours are the worst." -- M. GorkiY, "Answer to an Inquiry of an American Journal" The ptafte of the American Plutocracy D. Aaanov ...December 1952. In one of the most fashionable hotels in New York there is being held a regular annual congress of the association of American factory and plant owners -- the National Association of Manufacturers (NAM). While the delegates of the congress -- solid businessmen -- listen to the speeches of the mighty representatives of large-scale monopoly capital of the US, or of their proteges, an editorial commission is working out the draft of 'orders to the new government Which is to take into its hands the reins of state rule in Washington. The government of the Republican Party, Which received a majority in the eleptions of November 1952, had not yet been formed -- the change of. authority did not take place officially until two months after the Approved For ele e 2001/07/28 : CIA-RDP65-0075 R000300270001-9 F Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 presidential elections, but the representatives of the largest groupings of monopolistic capital of the United States of America had already been placed at the head of the various departments (ministries). Neither had American businessmen been at a disadvantage under the government of the Democratic Party headed by President Truman. However, _ in the Truman cabinet, if one does not count Harriman, monopolistic capital was represented only through secondary lackies. But now, the most .powerful representatives of the American "billionaires' club" had come to power. At the congress of the National Association of Manufacturers, the new cabinet officers made speeches presenting their programs. The congress approved the program set forth by them of an arms race, an aggressive foreign policy "from positions of strength," of a further attack on the working class, and of an intensification of reaction within the country. ...Opposite the iron fence of the White House in Washington, behind narrow Lafayette Square stands a four-story building. A fantastic mixture of the ancient Greek style with the modern, a massive balustrade, and marble columns give the building a solid appearance. Here is located the American Chamber of Commerce (ACC). The internal adornment of the building resembles its external appear- anceg oak panels, marble staircases, broad corridors. On one of the upper floors is located a hall with a queer concave ceiling and an in- genious cornice. At a table resembling two horseshoes meets the Council of the Chamber -- representatives of the largest financial, industrial and trade. monopolies. Here are decided the important questions of the state policy of the US. The residence of the Chamber of Commerce is located in the political capital of the country, Washington; the headquarters of the National Association of Manufacturers is placed in the financial and business capi- tal of the US, New York. This symbolizes and confirms the fact that the NAM and the ACC, these staffs of the imperialist monopolies, occupy ruling positions both in the political and in the economic life of the American state. The declaration of the NAM that "the Association supports close contact with the government in the execution of its measures" ts a reflec- tion, even if not afull one, of that role Which the National Association of Manufacturers plays in the administration of the country. The Chamber of Commerce describes its role more openly. "The special staff of the Chamber of Commerce In Washington," it says in the report of the 001321,94W thq.,9410er to its annual congress, "follows the work of Congress closely... The workers of this staff continually keep on the alert not only with regard to what is taking place in Congress at the given mo- ment, but also in regard to everything that can testify to possible Changes..." 3 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 * * * The National Association of Manufacturers was created in the period when capitalism in the US, as in a number of other countries, was entering its higher and final phase, imperialism. The American state, being an instrument of the dictatorship of finance capital, began to carry out the broad plans of the imperialistic plunderers beyond the borders of the country. Powerful monopolistic associations grew up on the basis of un- restrained exploitation. The lack of rights of the workers spread the doctrine of revolution among the proletarian masses, broadened the workers' movement. The year preceding the creation of the NAM went down in the history of the American labor movement as a period of the high upsurge of the class struggle in the United States of America of the nineteenth century. :In this period of the stormy rise of American imperialism and of the growth of the labor movement, 600 of the largest industrialists of the US gathered on 22 January 1895 at a conference in the capital of the state of OhioxtbeelAy ofCancimati[siel. It was at this conference that the National Association of Manufacturers was created. In 1912 the NAM organized the American Chamber of Commerce. The propaganda of the American monopolies loves to preach about the "representative" nature of these two staffs of large capital. Thereby, allusion is made to the tact that there are 21,000 concerns, trusts', and corporations in the NAM, from the very largest to the very smallest. Seventy-five percent of all the workers of the country are employed in corporations belonging to the NAM, Which put out up to 80% of industrial production. Advertising brochures invariably mention the fact that the American_Chamber of Commerce unites 500 trade associations and 2,600 local Chambers of Commerce, that in it, together with the most important executives, there are thousands of small businessmen. However, the decisive voice in these two organizations belongs to a small clique of the largest magnates of capital. In the NAM and the ' American Chamber of Commerce there is the undivided rule of the "billion- aires1 c1ab" -- the largest concerns and banks of the country, Whose capital exceeds billions of'dollars. The_organization of the American economists -- the Aosociation for Research in. Problems of Labor in the United States -- reckons there to be 127 of the largest monopolists within the narrow circle of the ruling upper clique of the present day United States of America. People of the "billionaires' club" hold directors? posts on the boards of powerful con- cerns, banks, and insurance companies. To them, indeed, belong the ruling posts on the staffs of large capital -- the National Association of Manufacturers and the Chamber of Commerce. Approved For ele 4 - e 2001/07/28 : CIA-RDP65-00756R000300270001-9 _4! Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 The most important executives of American business are represented on eighteen committees of the NAM, and in twenty-one "'specialized depart- ments" and other organs of the Chamber of Commerce. These committees and departments were created in accordance with the image and likeness of the government and Congress of the US. Among these are committees and departments on foreign policy, international political and social prob- lems, foreign trade, national defense, finances, legislative proposals, labor policy, government contracts, budget, taxes, and so forth. There are even organs called on to watch over the activity of the go ernment.. In the Chamber of Commerce, for example, there is a department for govern. ment affairs and for the organization and structure of the government apparatus. In the NAM, there exists a special committee on governmental expenditures. In all these committees and departments, the decisive voice belongs to the representatives of the largest monopolies. In the Council of Directors of the Association and the Chamber there are represented -- through their presidents or vice-presidents -- such gigantic concerns, which are the largest in the world, as the military- industrial and electrotechnical General Electric concern (the Morgans); the automobile and military-industrial corporation, General Motors (the DuPazts); the oil trust, Standard Oil of New Jersey (the Rockefellers); the aluminum monopoly, the Aluminum Company of America (the Mellons)3 the international atomic-dynamite and chemical trust,Du Pont de Nemours (theDuPonts ); the agricultural machinery company, International Har- vester (a Chicago monopolistic group), and so forth. If one takes the NAM committee on foreign policy, then it tarns out that, active in it are the representatives of almost all the monopo- listic plunderers in the category of billionaire corporationsg the Chase Manhattan Company Bank (the Rockefellers);Du Pont de Nemours, Standard Oil Company of New Jersey, General Motors, that giant of the steel indus- try, the United States Steel Corporation (the Morgans), the Morgan bank, Guaranty Trust Company, the Boston bank, First National Bank Of Boston, the Chicago bank, First National Bank of Chicago, and others. Only rarely do scant data penetrate into the American press about the still narrower circle of financial bigwigs Who are in control behind the scenes of the NAM and the Chamber of Commerce. We have in mind the so-oallekspecial consultative committee, to which belongs a small group of concerns tied in with the most powerful monopolistic groupings of the US. Even in the report of one of the Senate committees (on the activ- itre this special consultative committee, it was noted that the repre- sentatives of the corporations belonging to it met to "select a common line of conduct... The majority of the concerns that are members of the - 5 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 special consultative committee are simultaneously members of the inner leading group of the National Association of Manufacturers. They play a ,guiding role among American industrial giants in the appropriate fields, uniting in secret coalition..." Robert A. Brady, a Columbia University professor, noted in one of his research works that "nowhere is displayed more clearly the ruling position of these concerns, the members of the special consultative com- mittee, than in the National Association of Manufacturers." * * * The chief managers of business who figure in the capacity of direc- tors, vice-presidents, and also as members of the majority of the corn mittees and departments of both staffs of monopolistic capital of the US, also occupy the most important posts in the government and in government institutions, ruling the roost in the Senate and in the House of Rep- resentatives of the Congress. Secretary of State John Foster Dulles is an extremely important jurist of the monopolies and partner in the legal firm of Sullivan and Cromwell, vihich serves many of the magnates of American capital and in particular, the oil empire of the Rockefeller and the Morgan corpora- tions. He, indeed, was a director of the International Nickel Company and was chairman of the board of the Rockefeller Fund. Representatives of the Rockefeller trusts and the Morgan companies are distributed in a powerful flock in the Council of Directors and in the majority of the other organs of the NAM and the Chamber of Commerce. ,pie American foreign political US Department of Stataicssomichofoftth? Dulles had to admit this openly, when, in January 1957, he explained to the members of the Congress why the US was burning with desire to proclaim the "Eisenhower Doctrine," that immediate plan of foreign political ex- pansion intended to hold the countries of the Near and Middle East within the system of colonial rale of the imperialist powers. Senator Langer permitted himself to ask Dulles about the capital investments of Sullivan and Cromwell in the oil industry, about the foreign states where that firm has capital, about the concerns which took part in forming the inter- national oil consortium, and about the role of Dulles?_ deputy, Hoover, in this matter. There was nothing left for Dulles to do but acknowledge that his "offspring," Sullivan and Cromwell, "perhaps indeed has capital in- vested in oil." The former Secretaryof Defense Charles Wilson came to the Pentagon from the post of president of the General Motors concern, representatives of which sit in thecommittees and departments of the Association and the Chamber; to the family of the Du Ponts and to General Motors belongs the most influential voice in the rale of these two organizations. Approved For 6 elea e 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 The P4per Secretary cf the Treasury? George Humphrey, in the past was a director of more than thirty Companies and chairman of the Board of Directors of the Pittsburgh Consolidated Coal Company. Humphrey con- trolled the large iron ore and steel monopoly, M. A. Hanna and Company, the vice-president of which controls the NAM committee on taxes. ;The retired Secretary of the Army Robert Stevens unites with the NAM and the Chamber of Commerce his directoral posts in the Morgan concerns of General Electric and General Foods, the managers of which figure in the capacity of directors, nvice-presidents, and also members of the majority of the committees and departments of the Association and the Chamber of Commerce." The SecretarT:of_Commerde,Weeks, a former director of one of the largest barks,of the US, the First National Bank of Boston, before entering the government held the post of regional vicepresident of the NAM, heading the activity of the Association in the northeastern states .of the country. Weeks belonged also to the NAM committee on governmental expenditures. The Former Under-Secretary of the Treasury and now Secretary of Edu7 cation of EeE)Itn, Edu,cation, aid.W:l.fare? Marion Folsom previcusly was a director and Treas- urar of the bug? :monopoly Eastman Kodak and of a number of other companies. , Simultaneously, he was a member of One of the committees of the NAM. The monopoly Eastman Kodak is represented in an extremely fundamental way both in the Association and in the Chamber of Commerce. .Many deputy secretaries, ambassadors, and high ranking Persons in the Ministries and the various governmental institutions are connected in one degree or another with the National Association of Manufacturers, and the Chamber of Commerce. Thus, Nelson Rockefeller, son of the oil magnate John Rockefeller -- the actual owner of Standard Oil -- from time to time occupies different governmental posts, including such posts as, that of special adviser to the White House on questions of foreign policy, and of head of the "psychological warfare" department. Winthrop Aldrich, son-in-law of -John D. Rockefeller, former Chairman of Rockefeller? s Chase Manhattan 'Bank, for a long time occupied the post of ambassador to England. Douglas Dillon, one of the directors of the bankers? house of Dillon, Reed and Company, was US ambassador to France. Thomas Gates, a partner of the Morgan banking firm Drexel and Company (Philadelphia) was appointed Secre- tary of the Navy. The NAM and the Chamber of Commerce actively exercise control in many International organizations, including some where the American government has official representatives. Both organizations are represented in the International Chamber of Commerce, in the Inter-American Council of Trade and Production, in the International Organization of Employers, in the International Labor Organization, and so on. They maintain their open Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 and covert observers at the United' Nations Organization. Representatives of the NAM and the Chamber of Commerce were invited by the State Depart- ment to the conference in San Francisco convened in 1945 to complete the preparations for and to sign the charter of the UN. The "brain centers" of the American monopolists attentively follow the activity of this organization, persistently striving to tarn it into a branch of the American State Department. It is they Who, with all their strength, are striving to revise the UN charter, trying to undermine its most fundamental basis -- the principle of the unanimity of the great powers in deciding the most important questions of maintaining peace and security throughout the world. In its annual report for 1953, the Chamber even emphasized that it was the Chamber which had "laid the basis for a study of the problems connected with the UN, for the preparation of American proposals for a revision of the charter." Control of the monopolies of the NAM and the Chamber of Commerce over the legislative organs of the country -- the Senate and the Rouse of Representatives -- is no less firm than that over the government. This is testified to, above all, by the social makeup of the Congress. Thus, according to the estimates of the American press, in the 83rd Congress (1952-1954) there were 279 lawyers closely connected with capitalist monopo- lies (they represent their bosses in courts, and they also represent them in Congress), 138 businessmen, 37 professional politicians, 18 journalists, 18 landowners, 8 military men, and 33 other persons. In the last two Congresses, as before, businessmen and lawyers of large-scale business predominate. In them there has not been and there is not a single worker or a single toiling farmer. It is such a makeup of Congress which permits the Chamber of Commerce to declare, like something self-evident, that "for the adoption of laws... Congress needs the arrangements and recommendations of business.... The Chamber of Commerce informs Congress of its point of view by two means; by sending directly to Congress the recommendations of business about bills; and by advising business people in localities to influence, with their ideas, Congressmen representing their election districts." Besides the open henchmen of the Association and the Chamber, numerous "lobbyists" act in Congress -- special agents of capitalist monopolies striving for the adoption or defeat in Congress of one bill or another by means of Corridor deals and bribes, and by winning over those Congressmen who are not directly in the service of the monopolies or Who, indeed, per- mit themselves to play at democracy. The American journalists Allen and Shannon write that "the scope of the lobbies, their influence, capacity to do evil, greed, machinations, deceit, and falsification have reached such a scale...that they threaten the government itself." The Most power- ful, naturally, are the "lobbies" of the National Association of Manufac- turers and the Chamber of Commerce. - 8 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 ,A certain colonel, Martin M. Mulhill, who for a long time was one of the paid lobbyists of the NAM and the organization connected with it, the National Council for the Defense of IndustrY, had a disagreement with his bosses. The latter simply fired him. The furious Muihill wrote revealing articles in the newspaper Ite_gitgaggLREillmne. He described in 4041 the methods by which large capital, and above all the Associa- tion, hold Congress in their.hands. Mulhill handed over to the newspaper 65 dossiers Showing how the NAM exercises influence on presidents, vice- presidents, and many senators and members, of the House of Representatives of the American Congress. The colonel?8 articles told how the NAM organizes the promotion in Congress of people advantageous to it, their being named to committees of Congress, and so forth. .A..0ongress of businessmen," declared one far from progressive US , political leader, "has sold millions of American voters to a small clique of people Who have paid with ready cash." When a well-known American servant of the Church was asked Whether he prays for the members of Congress, the answer followed. g "No, I look at the members of Congress and I pray for the country," , * * * The existence and activity_of the National Association of Manufac- turersand the Chamber of Commerce -- the staffs of US, large finance capital -- does not mean, of course, a weakening of the extremely sharp etruggle among the monopolists. On the contrary, the struggle among them for sources of raw materials and markets, for spheres of influence, for power in the country, for pr fitable governmental orders -- above all, military orders for .in and profit, is becoming ever more persistent and merciless, In all this, in these conflicts, robbers take part, Whose loot is.reckoned-not by the hundreds of thousands and millions, but by the hundreds of millions and billions of dollars. Anexa4ple of each a struggle is the fight for the largest trans- portation arteries of the country, which has developed in recent years between, the magnates of the Middle West (Chicago and Cleveland monopolistic groups) and an association of financiers representing the power and in- fluence of Wall Street. As a result of this struggle, the Cleveland rail- road king Robert Young, having formed an alliance with a number of monopo- lists.of the 1444le West and "nouveau riche" millionaires from the state of Texas in 1954, tore away from the Morgans the New York Central System, the, second railroad in size in the 7L whose assets exceed 2.5 billion dollars, and established his control over it. Discussing the ins and outs of this struggle, one of the most well informed.US press organs, the newspaper The New York Times, wrote that "a_financia1 wax has broken out on a scale such as has rarely been observed in this century.... On the horizon, conflicts are drawing near, in comparison Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28: CIA-RDP65-00756R000300270001-9 with Which the fight for the New York Central system possibly will seem only a duel with pistols. The financial and industrial capital of the Middle West..., apparently, is testing its strength for a decisive con- flict with the eastern groups..." In the bitter struggle with the other groupings of Wall Street, the Rockefeller Masse National Bank in January 1955 &allowed up the Bank of Manhattan Company, which had been controlled by the Kuhn-Loeb family. Having gained Control of the assets of this bank, the Rockefellers turned their bank, now under the name of the Chase Manhattan Company, into one of the largest banks of the capitalist world. Throughout the period 1954-1957, even experienced American observers were perplexed by a series of "mergers", "absorptions", and failures in the competitive struggle of the largest enterprises of the country in all branches of industry and spheres of economic and financial activity. In January 1957, the magazines kVA and Look destroyed their long-standing competitor, the magazine Colliers. They thus compelled one of the oldest American magazines, with a circulation of 4.5 million copies, to cease existence. The magazine IAA inherited all of Colliers business, and, of course, its subscribers. The unrestrained struggle of the magnates of large capital for power in the country finds its reflection also in their striving to strengthen their influence in the two main coordinating centers of the monopolies the National Association of Manufacturers and the Chamber of Commerce. The distribution of forces of the monopolies within these organizations and the influence in them dependi on those positions which the monopolies occupy in the economy of the country. The Association and the Chamber of Commerce are cartels of a certain type, roles in which are distributed In conformity with the real balance of forces. inasmuch as all the monopo- lies are striving to change this balance to their own advantage, the role of one monopolistic group or another in the HAM and the Chamber of Commerce does not remain. unchanged. With every year, imperialist contradictions become more and more pro- found, and intensify the competitive battle for the expansion of the sphere of monopolistic rule, for the conquest of ruling positions in the economic and political life of the country. But in such questions of foreign and domestic policy as the militarization of the economy, preparation for war, opposition to peace-loving forces and to democracy throughout the world, as well as to the labor movement within the US -- in all these extremely important questions the various groupings of monopolistic capital act with closed ranks. They dictate their reactionary, aggressive policy to the upper Cliques of both main bourgeois parties of the US -- the Republican and Democratic parties. Congress acts according to their in- structions. Satisfaction of their interests is the law for the apparatus of state administration of the country. - 10 - Approved For Release.2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 * * * If 0.210u takes the constitution (by-laws) of the National Association offrianufacturers, which is often dhanged and amended in conformity with the demands of the moment, we see that in one of its variants, adopted in 1950, there Is inscribed the following official goale of this organiza- tion; "Securing the indaetrial apd financial interests of the USA"; joint action for the development of foreign trade"; "securing the interests of capital in its struggle against the labor movement"; the struggle. for the preservation of the foundations of private property"; "propaganda of ideasTAnd,dissemination of information" having as their purpose the defense of the interests of American imperialism; "support of legislative acts" aimed at carrying out these purposes, and "checking upon. their im plementation by the state apparatus." However, the activity of the NAM and the Chamber of Commerce goes far beyond the bounds of even these officially proclaimed-programmatic provisions... Both staffs of American monopolistic capital keep under their unsleckening observation all sides of the activity of the present-day Amer- ican state. From the 'very first days of the existence of the NAM and the Chamber of Commerce, their activity had an imperialist character. They displayed exceptional activity in working out and executing numerous expansionist "programs" and "plans" which so persistently bind the United States of America to. the other countries of the capitalist world. Yithin_thehsart of the Association and the Chamber were worked out _ . the "Truman Doctrine," the "Marshall Plan," the program for rendering "aid" to the so-called underdeveloped countries, and the "Eisenhower Doctrine". ,For example, it is. pointed. out, in the programmatic document of the Chamber of Commerce devoted to setting forth its "position in questions of world policy," that the Chamber had Approved the "Truman Doctrine", 7- that plan for military and economic seizure of new territories and colonies in the eastern portion of the Mediterranean Sea -- even before it "became an object of examination by both houses of Congress." As far as the "Marshall Plan" is concerned, the NAM has boasted that it was the "first organization in the US which Wholly supported the crea- tion and principles of action of the Economic Cooperation Administration: many recommendations advanced by the NAM were made the basis of the activity of this Administration; and people were supplied by the Association for leading posts." The Chamber of Commerce published a statement which set forth the goals and tasks?. methods and means of carrying out this "aid." In 1952, the Chamber noted that "Congress has used many of its principles in legislative activity on the given question." -11- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 The "Eisenhower Doctrine," that child, of the imperialist policy of the US, is just such a product of the activity of the Chamber and the Association as the rest of the "doctrines," "plans" and "programs" kindred to it. Eisenhower, the President'of the country, presented his doctrine to the Congress on 5 January 1957. But prior to him-, clear demands on this question had been noisily formulated by two other presidents who were no less influential: Henry Alexander, president of the J. P. Morgan and Company, and. Rathbone, the president of the Standard Oil Company of New Jersey. These are the heads of two concerns playing "first fiddle" in the NAM and the Chamber. On 7 December 1956, that is, almost a month before the official proclamation of the "Eisenhower Doctrine," Alexander, speaking in Chicago at a meeting of businessmen who were leaders of enter- prises, demanded that the government carry out a more decisive policy in the Near and Middle East, and defined the bases of this "doctrine." "We cannot," he declared, "disavow what is our own...An American doctrine Is necessary for the Near and Middle East, precisely in the same way that there exists an American doctrine for Greece and Turkey and an American doctrine for Formosa (that is Taiwan -- D. A.), Quemoy and Matsu." Within a short time, Rathbone spoke before the Chamber of Commerce of the state of Oklahoma, giving advice -- sounding like an order -- to carry out a "firm policy" in the Arab East: "The United States should exercise leadership for the restoration of peace and stability in this region... This, without doubt, is a problem from which we shall not be able to separate ourselves easily... We shall go forWard prudently and decisively..." The activity of the NAM and the Chamber of Commerce, the speeches of these two presidents, the adoption by the government and the Congress of the course proposed by the monopolies, pre-determined the adoption of the "Eisenhower Doctrine." The USA took one more adventuristic step in its irrational and dangerous game directed at establishing its world rule. One day the ruling circles of the US felt the need of carrying out a special check on the states receiving American "aid." The goal of the check was to establish whether the "aid" rendered these countries answers the interests of American capital sufficiently. A group of 55 employers and financiers -- in essence fully controlled by the NAM and the Chamber of Commerce -- was designated to carry out the check. At the head Of the group of investigators was placed the chairman of the board of directors of Morgan's General Foods Corporation. As it turned out, the represents, tive of this "General Foods," C. M. Chester, is honorary vice-president of the Association. The sub-group for checking England was headed by Henning Prentis, honorary vice-president of the NAM and head of a number of departments of the Chamber of Commerce. The sub-group for checking France was led by Joseph Spang, vice-president of the NAM. At the head of the group of investigators in Italy was placed Frederick Crawford, an hon- orary vice-president of the National Association of Manufacturers. -12- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 In recent years, a number of conferences of magnates of large capital have been held by the association and the chamber for the purpose of strengthening the positions of American capital in the world market. One of these meetings was the attentively prepared conference of industrialists of the USA and the countries of Western Europe, held in Paris in 1954. The decisions of this conference were not published. But even the reactionary press admitted that the basic purpose of this gathering of imperialists was "the strengthening of the struggle against the USSR." In February 1955, in New Orleans, at the initiative of the associa- tion and chamber, and with the assistance of the American ruling circles, a convocation of industrialists of Western hemisphere countries was held. Four hundred. representatives of the comprador bourgeoisie of the Latin American countries met with .400 of the largest American businessmen. The tasks of this convocation included the creation, for the monopolists of the USA, of still more favorable conditions for the investment of their capital in the countries of Latin America. In 1957, the second such convocation of leaders of industrial and financial capital of the countries of the American continent was held in Caracas. * * * The Second World Wer was a genuine orgy of profit for the American monopolists. From June 1940 through September 1944 the value of the fundamental military orders issued by the American government to the monopolists amounted to 175 billion dollars. One hundred of the largest concerns received 117 billion dollars in military orders. The profits of these concerns rose 370 percent by 1944, in comparison with 1939. During the period of the war, the businessmen of the monopolies, the NAM, and. the Chamber of Commerce seized all the key positions in the state apparatus, They dictated conditions. In the fall of 1942, representatives of one of the leading organs of the National Association of Manufacturers gathered at the Pennsylvania Rotel in New York to work out their program. Lammot Du Pontl,a vice- president of the NAM, made a speech. "Toward the government and toward all squawkers," he said, we must conduct ourselves as we do toward buyers of goods in short supply. We dictate the prices. They need our goods. Fine; Let them pay in flail" The well-known liberal American journalist William Allen White ironically noted that the representatives of the monopolies, having im- planted themselves in the state apparatus of the USA, had the firm inten- tion of "profiting by this war for their own benefit," at any price. -13- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 The arms were stacked. The peoples who had borne upon their Shoulders all the misfortunes of war demanded the establishment of a firm, lasting peace. But how did the Imperialist monopolies, the NAM, the Chamber of Commerce behave toward this great and important task? As early as November 1945, the Association and the Chamber convened a meeting of pe, magnates of American finance capital, in order to work out a common line among the US monopolies on opestions of foreign and domestic policy. Among those who took part in the conference, which was held in strict secrecy in the small town of Absecon, were W. Aldrich, president of Rockefeller?s Chase National Bank, LammottuIbnt and J. Dupont from the Eurbnt do Nemours concern, the leaders of such monopolies as General Motors, General Electric, and others. The result of the con- ference was the proclamation of a "tough policy" and the beginning of the "cold war" against the USSR. This directive of the meeting was carried out precisely by the Truman government. At the annual congress of the NAM in 1945, [RobertR.1 Was on, its president at that time, proclaimed the imperialist doctrine of the "American era": "The United States has become a leading world power," he declared. "The 20th century is the century of America." Right after this, Truman, the President of the country, officially declared the US's pre- tension to "leadership of the world." The entire postwar policy of the ruling circles of the US has con- slated of attempts to put this aggressive doctrine into effect. In the execution of the course laid down by the EAR and the Chamber of Commerce, laws were approved and principles of policy were declared which placed the peoples of the entire world under a threat to their peace and security; the forces of international imperialist reaction were consolidated against the countries of the socialist camp. 400n after the start of the war in Korea, the NAM and. the Chamber of Commerce proposed to the government to demand of its allies in the Atlantic Bloc an intensification of the arms race, a reorganization of their armed forces. This course was planned in documents of the Associa- tion and the Chamber adopted as early as July 1950. The official organ of the Association, The 1AM News, emphasized that "as a result of the events in the Par East, the basic buttress to the foreign policy of the US has been transferred from economic pressure to the use of armed force. We should decisively re-examine our plan, and hasten to the maximum the rearming of the countries of the Atlantic Bloc ... Now the buttress is being formed in the creation of armed forces..." Soon afterward, resolutions of the Council of Directors of the NAM and the Chamber of Commerce appeared, in which it was cynically pointed out; "The West European countries should make heavy sacrifices in the interest of the creation of armed forces... The American government should receive firm assurances from these countries with regard to the effective mobilization by them of popular and materiel resources." - 14 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28: CIA-RDP65-00756R000300270001-9 'This was the policy of the unleashing of local wars and the prepara- tion of a "large" third world War. The enthusiasm with Which the executives of the NAM and the Chamber of Commerce welcomed the war in Korea is understandable. The total sum of allocations for the production of arms and for military construction during the two and one-half years of the war in Korea reached, according to the official data of theDepartammtof Defense, 169.7 billion dollars. This was almost equal to the cost of the basic military orders in the US daring the Second World War. As a result, the profits of the cannon kings and, concerns working for the war rose sharply. The profits of the US monopolies daring the war reached 118 billion dollars. The NAM, together with the D6p9drtniembof Defense, informed the monopo- lies in detail how and by what means government orders would be granted. "In order not to create chaos in Washington," the NAM prepared special drafts regulating the order and sequence of the issuance of contracts. Immediately after the beginning of military operations a meeting was held between the leaders of the Association and members of the government. Putnam, president of the Association, sent President Truman a telegram which revealed with cynical frankness the NAM9s readiness to work even further together with the government toward the unleashing of a general armed cOnflicts "American industry with its productive might publicly assumes the obligation of fully satisfying the needs of the United States and its allies"... If Korea leads to a general war...American industry is ready for this, too." Making ,profit out of the war in Korea, the American monopolies hindered its ending in every way. In a special memorandum of the NAM sent to the government, it was pointed out that the war in Korea had deferred .a sharp economic crisis on whose threshold the US had been in 1950. The cessation of military operations and removal of American troops from Korea, it was pointed out in this memorandum, would have "a pernicious influence" on the economy of the USA. In December 1950, Putnam, the president of the NAM, declared in the name of the NAM8s members that the condition of the US economy depended on how long military operations would continue in Korea and Viet Nam, and how much longer government military expenditures would be made. The magnates of American finance capital, the NAM and the Chamber of Commerce, used the Korea War as a pretext to shunt the economy of the US onto military rails. A military economy became the source of further enrichment for the directors of monopolistic capital, and a necessary condition for the receipt of the maximum possible profits. The arms race in the US took on a scope unprecedented in history. In the ten years following the completion of the. Second World War (from 1946 - 1955), direct military expenditures of the US reached astronomical figures -- 303 billion dollars. This exceeds the entire "gross national product" of the country - 15 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 for 1954. The state apparatus of the USA was converted into a gigantic press, squeezing enormous taxes out of the workers. These funds were sent into the safes of the largest monopolies In the form of payments for military orders and as various sorts of subsidies. At the present time military production constitutes about 20 percent of the entire value of US industrial production. That is why the National Association of Manufacturers and the hamber of Commerce are trying to tarn the arms race and the "cold war" policy into a permanent factor. In the declaration "on the policy of the Chamber of Commerce," adopted at its congress in 1954, it is said that, in planning their policy and their expenditures, the ruling circles dhould base themselves on the fact that "the existing state of tension throughout the world will continue indefinitely." In this same declaration, the Chamber approvingly pats the government circles on the back for the policy conducted by them of "creating strong offensive and defensive armed forces, calculated for undetermined periods of time." In the interests of the execution of this policy the congress of the Chamber adopted a series of resolutions -- on the principles of mobilization of the economy, on the number of men in the armed forces, and so forth. The decisions of the congress on questions of foreign policy touch on all aspects of the official political course maintained by the American ruling circles. Here are "the merciless struggle against communism," the blockade of the People's Republic of China, the organization of sub- versive activity in the countries of the democratic camp, the embargo on trade with the USSR and the plans of rearming West Germany. It is in- structive that US Vice,President Nixon, the earrentSecretauof Defense Wilson, and other state leaders made speeches at the congress. Wilson devoted hiss?peeCh to a description of the "new military policy of the US." He assured the Chamber that; the ruling circles were ready to give that policy an even more bellicose character in. .the event of "critical" events in Europe and Asia. * * * While working out and dictating a policy to the American state -- a policy completely alien to the interests of the common people of America the National Association of Manufacturers and the Chamber of Commerce simultaneously carry out furious propaganda, striving to exercise the in- fluence necessary to them on public opinion in the country. Hundreds of transmitters broadcast and televise special programs prepared by the NAM and the Chamber. They distribute millions of books, brochures, pamphlets, and informational materials; they create special films, and organize numerous conferences, meetings, and gatherings. The NAM alone supplies "guidance information to 20700 leading journalists, Washington capitol correspondents, and columnists. News, cartoons and other materials are sent out free to 5,540 newspapers and journals. The NAM daily spends one - 16 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 million dollars in order to Compel tbe American people to believe a direct lie -- to believe that the imperialist monopolies are the "benefactors' of the US. A significant portion:otthe funds allocated by the EAM to educational institutions is designed to form the consciousness of youth in a spirit beneficial to the forces of reaction. The Chamber of Commerce also conducts advertising and. propaganda activity on the same enormous scale. It publishes about 20 press organs, including the monthly journal N? whOse circulation is 800,000 copies. The press service of the Chamber serves 1,400 daily said. more than a thousand weekly US newspapers. Just as the NAM does, the Chamber of Commerce provides journalists .and radio commentators with "guidance" information. .111ekindling of enmity for the Soviet Union and for the people's democracies is a common note in all the propaganda of the association and the Chamber. Day after day, the thought is instilled in readers that the arms race ts "neceseary," that war is supposedly inevitable, and peaceful coexistence 0 countries and peoples allegedly impossible. "There ,can be to compromise Whatever between the USSR and the USA," asserts the NAM in one of J4e144meraus brochures. "We stand for a pitiless struggle, against communism," ,reads a declaration of a recent congress of the Chamber of Commerce, And in his report to the 61st Congress of the NAM held iniPecember 1956, -- Parker, a former president of the Association,. called. for re-examination of the question of breaking off diplomatic rela- tions between the USA and the USSR. The striving to_blacken:the Soviet Union drives the leaders of the EAR and the Chamber of Commerce to the wildest fabrications and slanders. T.. A Senate Committee which carried out an investigation of the activity of the Association in 1940 was obliged literally, tO declare the following:- "The National Association of Manufacturers has deluged: the country with anonymous propaganda for the purpose of disorienting and deceiving public opinion.... That propaganda, Whose origin Within tho-EIM is almost completely hidden from public opinion, is persistently displayed from day to day with the aid of all means of press, radio, schools, lectures, and so forth... The NAM contrives to carry on its propaganda through subsidiary organizations, in order to disorient public opinion and to :convince it that this propaganda eminates from independent sources.: The leaders of the Association boast that their propagandaAnfluences the - political views of millions of citizens and their choice of candidates for etateposts." The. unbridled, aad open, or subtle and hidden -- depending On circiat- stancea propaganda carried on by the EAM and the Chamber of Commerce represents a complex of ideas and principles, the operative goal of which is to corrupt the consciousness of the ordinary American, to subordinate him to the interests of the riling groups, to poison him with the preaching - 17 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 of "class harmony," with the chauvinistic venom of "Americanism," with hatred, for the ideas of socialism and. toward the countries which are putting these ideas into effect. All actual class relations are made con- fused, Profit is proclaimed the highest meaning of human existence. The close ties between the Association and the Chamber with the press, radio, information agencies, and publishing concerns make the scope of this propa- ganda flooding the American people indeed ominous. Many of the executives of the leading organs of press and radio and publishing concerns are members of committees of the Association and of departments of the Chamber. Some of them have fought their way up to the higher leading posts. Walter Fuller, chairman of the board of directors of the Curtis Publishing Company, which issues the magazine Saturday Evening Post, known for its extremely reactionary nature, has been a president of the NAM. Fuller is now an honorary vice president of the Association. One of the directors of the Chamber of Commerce and leader of its department of foreign trade is Arthur Motley, vice president of the Crowell-Collier Publishing Company, a large publishing concern. A vice president of the NAM committee for foreign policy questions is James McGraw, one of the owners of the McGraw-Hill Publishing Company, and of the journal Business Week. [Charles] Douglas, publisher of the journal Fortune, who for a long time was President Eisenhower's assistance for the planning of the "cold war," also is a member of this committee. In the various departments of the Chamber of Commerce one can find the pub- lishers of each journals and newspapers as Look, Readers Digest, The Christian_n_vloitor, and many others. At the NAM Congress in December 1956, together with other plans of political activity of the monopolies, there was approved the new, grandiose program for the intensification of propaganda set forth in the report of the Managing Director of the NAM, Kenneth Miller. Addressing the delegates of the congress, he stated literally the following: "Our task consists in obtaining the loyalty and good-will of the American people, their faith in the leadership of manufacturers... In conformity with our program of influencing the public, we constantly maintain working contact with the press, radio, and. television, with magazines distributed throughout the country, with economic newspapers, and with all the other organs of the printed word. Week after week and month after month the number of pages depicting the goals and intentions of industry is becoming more and more imposing... We penetrate clubs and military organizations. With the aid of our educational and training programs, we act in closer and closer cooperation with schools and colleges. Our departments for work among women not only maintain close ties with women's organizations and groups, but also cover women in everyday life through the publication of materials which interest them in magazines and newspapers, as well as in radio and television broadcasts. Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 "By making use of our program for ties between industry and the church, we bring acquaintance with the affairs of industry to the dhurdh -goers, whose interest in economic matters and in the factors leading to economic progress has been rapidly growing in recent years. ?Thanks to all our chosen activity, we are achieving a great deal of 'success in our work of influencing the Ameriean People, using for this purpose every channel and every Means leading to the masses. However, the only way that all this expanded activity can be successful Is for businessmen to take part in the battle for the Minds of people everywhere they live and act. That battle must be carried on constantly, not only with the aid of money, but also on a still greater scale devoting personal time and attention to It. * What the NAM and the Chamber of Commerce are striving for within their, country, what policy they are following with regard to the American workers, can be 80031 especially vividly from the activity of these organiza, tions_d4ring the economic crises of the 1930s, daring the Second World Wax, and especially in the postwar period. When:the 000nomic crisis was raging in the USA in 1929 to 1933 and the revolutionary movement was expanding, plans were being prepared within thejte4r:cf, tbe NAM and the Chamber for establishing a fascist dictator... ship within the USA in the image and likeness of Nazi Germany. The fact that such plans were seriously being prepared is testified to by the evidence Which General Smedley Butler gave at one time to the committeeothe US Congress known under the name of the MacCormack, Dickstetn Committee. The GeneralreIatadthat Gerald JeretulahDe suet?] Maguire, 6. certain banker ar theMprgaa grpuRtriedto persuade him to become the head of a military plat having as its purpose establishment of a fascist-military dictatorship in the US. The organizers of this black adventure proposed to create a fascist army of 500,000 soldiers. It was planned to obtain arms for the army from the Du Font armaments firm, the Remington Arms Company. Mavire spoke in the name of the fascist organization "The League of Preedom, enjoying the support of the largest magnates of capital. 1938, that is, in the period When the USA was falling intt a new econozto crisis, and into the period of intensive preparation by the im- perialist powers for the unleashing of the Second World War, the Chamber of :Commerce convened a meeting of 200 of the largest industrialists. At this meeting, H. Prentis, head of the Armstrong Cork Company Who was one of the directors of the NAM and the Chamber of Commerce, and Who was subsequently president and honorary vide-president of the NAM, declared to those gathered that the necessity of resorting to "some form of hidden dictatorship..." was rising before the employers. -19- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 About a year before Munich, on 23 November 1937 -- that is, soon after the meeting at which Hitler acquainted his military chiefs with the plans for aggression against Austria and Czechoslovakia (the genuine record of this meeting was furnished to the Nurenburg tribunal which tried the chief Nazi criminals) -- there took place in the USA a secret meeting of representatives of American "big business" and German fascism. "Big business" was represented by several eminent leaders of the NAM, including Lammot DuPont, former president of General Motors and one of the chief executives of the Association. At this meeting, which was described in detail in the $0 August 1942 reports of Congress, representatives of the American monopolists and the German fascists Von Killinger, German Gonsul,General in San Francisco, and Tlppelkitch,, Consul General in Boston, disaassed the question of joint activity directed against the USSR, the question of the division of spheres of influence in the world, and of the possibility of applying German-fascist methods in the internal affairs of the USA. In 1939, the Second World War, fostered by international imperialist reaction, broke out, Within two years, the USA was obliged to become one of its direct participants. And immediately, the groups of maganates of capital ruling within the USA, fearing the consequences of the war on internal political life, and recalling with fright the sharp strengthening of the labor movement within the country after the end of World War I, planned an unbridled program for curbing the labor movement. That program was worked out by Lammot DuPont, vice president of the National Associa- tion of Manufacturers, and adopted in 1942 at a closed session of the committee on resolutions. .As soon as the war ended, the program of struggle against the labor movement was developed further. Broad measures began to be carried out toubring order" into the state apparatus, Congress, the trade unions, and into the personal and public life of the common American people. Within the very shortest period, all those who had more or less soberly Judged existing international conditions, and the paths of development of Soviet-American relations in particular, all those who appealed for caution in the execution of foreign policy, were expelled from the government of President Truman, that "provincial politician . from the state of Missouri," as American journalists christened him. Assiduous preparation was began for the elections to the 80th Congress, as a result of 14hich a legislative organ was elected in 1946, which was called "a Congress of Businessmen." This congress was literally flooded with bills directed. against the workers. Hundreds of anti-labor bills, one after another, were advanced for its examination. There began in the country the still-continuing "witch-hunt" -- the campaign of destruction of the progressive and democratic forces of the American people, with the purpose of consolidating the control of the monopolists over the labor - 20 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 movement. And it was not seldom that textual similarities were observed between decisions issued by American state organs and the recommendations worked out by the lAM and the Chamber of Commerce for a struggle against the "red danger." When the Association and the Chamber obtained the adoption in 1947 of the draconic Taft-Hartley law, Congressman O'Toole of the House of Representatives openly testified that this law "was phrase for phrase, point for point, page for page, written by the National Association of Manufacturers." The anti-democratic program of the Chamber of Commerce and the NAM found its refleotion also in the extraordinary order of President Truman on testing loyalty; in the "internal security" law (McCatran-Pyrd Act adopted in 1950); in the law on immigration and naturalization (McCarran-Walter Act, adopted in 1952); and in the decision placing the American Communist Party outside the law (the BrownellBUtler Act, adopted in 1954). These laws, together with the Taft-Hartley law, become ominous landmarks of the era of police terror and political oppres- sion in present-day America. Por the struggle against the labor movement, the rulers of the Association and the Chamber made wide use not only Of a number of terroris- tic organizations of monopolistic capital, but also of the reactionary upper clique of the largest association of American trade unions, the American Federation of Labor-Congress of Industrial Organizations: Mieny, Carey, and the other servants of the magnates of Wall Street like them. The reformists within the labor movements, as well as the broad network of spies, informers, and provocateurs spread by the monopolists throughout the country, helped the monopolists to a considerable degree in carrying out their plans for the still greater economic and political enslavement of the people. The NAM and the Chamber of Commerce finance such organizations as the American Legion, the black-hundred band of the Ku Klux Klan, and many other fascist organizations. In the year 1951 alone, a group of the largest monopolies which held command in the NAM and the Chamber of Commerce allocated 350 million dollars to various reactionary organiza- tions occupied in provocatory activity among the American workers and conducting subversive work in.foreign states. - The ChaMber and the Association, in trying to hinder the growth of the labor movement and seeking to place it under the complete, control of the monopolies, makes use of numerous detachments of professional spies, informers, and provocateurs. According to the evidence of the bourgeois journalist Gunther, the worker "never knows Who his neighbor on the con- veyor belt is -- a spy or an honest man." - 21 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 :In 1954 a new monstrous plot of the NAM and the Chamber of Commerce against the workers became known. One American trade union journal succeeded in obtaining and publishing the secret "Report No. 60," en- titled "On Security in Indastry" prepared by the NAM and distributed only to "cooperating companies" and "for the information" of a small circle of reactionary journalists. This was .a carefully worked out plan for the further development of the. capitalist_incraisition in the country, for the creation_ef, a still wider netwerk of detectives and professional informers to spy on the ordinary American. In "Report No, 60" the companies are in- structed how to create_ special "committees of security" and how to direct their activity. Among the tasks of these committees, "Which are under the supervision of the higher admiaistratiqn-g the enterprise," is included the denouncing of all "nnfnitl4nr. Workers with, the purpose of isolat.ing them and persecuting then further. In this connection, it is recommended, :or example, that the fingerprints of all workers be taken, that a, "loyalty oath" be extracted from them, and that a "system of obeel7Vatien of ,Werkere W.Oreated. That '!system" provided for the organilation? in each shop, of secret groups to which persons should be drawn "who enjoy trust" among the workers and who would, therefore, have more opportunity "to carry on observations of the actions and.conduct" of.the4x comrades. At the aame_time? it is suggested that the companies compile "files" on each worker, bringing into them all materials "com- promising" him; to record what a worker has said in a locker room or at a,trade-union meeting, Whom he has met, to what organizations he belongs, and so_forth, A =Aber of_oonoerns, including the billionaire corporation General Electric, have already announced that any worker accused of being a "Red," or refusing to betray anyone at all to investigating committees oeaupied with hunting down democratically-minded persons, will be fired. In the spring of 1954, the Chamber of Commerce adopted, at its annual congress, a 27-page program on the trade union and labor movement, in which it openly demanded the banning of "solidarity strikes" and "picketing with the purpose of gaining recognition of the rights of trade unions," and also:the adoption by the American Congress of other measures aimed at depriving the workers of the most elementary rights in defense of their interests. George Armstrong, a representative of the National Association of Manufacturers, spoke before Congress -- the Committee on Labor Affairecf the. 'louse of Representatives -- with analogous demands. At the am time in, their press organs Washington Revort and Washington Bulletin, the NAA and the Chamber deman4ads4',Congress the adoption of "tougher" anti-lator legislation than:the Taft-Hartley Law. The U. S. Congress did not delay in satisfying these demands. A number of bills were presented in the House of Representatives and Senate during both sessions of the 83rd Congress, including those of Butler, Miller, Goldwater-Rhodes, Veldte, Benson and Brownell. These bills found -22- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 their fulfillment in the :Brownell-putler Law, adopted by the Congressmen. In appraising this activity of Congress, the trade-union press emphasized that the adoption of anti-labor laws by Congress "is exactly what the National Association of Manufacturers and the American Chamber of Commerce had demanded." Industry is ceasing rear guard battles and is Shifting to mass attack" thus did NAM director Miller describe yet another program of the rulers of American capital advanced by the 61st congress of the in- dustrialists in 1956. The congress announced a new campaign against the workers and ,toilers to secure the interests of the monopolies. At the congress a five-year plan was advanced for the reduction of taxes on corporations; the execution of this plan would permit such taxes to be lowered about one-half. Inasmuch as no reduction in expenditures by the government was simultaneously envisaged, it becomes clear that the working people were supposed to compensate to the state treasury for this half. At the same time, social legislation was subjected to ferocious attacks by the industrialists. Parker, the president of the Association, called social security, pensions, unemployment aid, trade-union rights secured by law, and even.., hot breakfasts for school children "an alien body in the social svstem of America" Which Should be eliminated in order "to save the USA from creeping socialiSm." A demand was put forward for the adoption of "the toughest measures" and for the use of "police clubs" to curb the workers and the trade unions, for the application of the Taft- Hartley law against strikers on a still wider scale, for the use of the "anti-trust" laws against trade unions (although those laws are intended to battle the arbitrary rale of the monopolies), for the mass applica- tion of so-called "labor laws" setting forth the "right" of strike- breakers to work, and for a number of other draconic measures. In dis- cussing ways of putting the planned anti-popular measures into effect, the orators at the congress unanimously noted that the climate for this His now more favorable in Washington than at any other time", and that the voice of the industrialists would be listened to there with great attention. One day one of the aUxilliary organs of the NAM, the so-called National Council of Industrial Conferences, held a special convocation to discuss .ways and means to fight the trade unions. There spoke the convocation Colonel John F. Moran, the head of the division for questions of security in industry under the main chief of military police. "Industrialists," he declared, "should be ready to adept police measures -- to surround plants with dual barbed wire fences, electrically charged, to set up steel towers. with guards possessing fire- arms, to take Use fingerprints of all workers." One of the industrialists attending the meeting displayed vivid interest in the experience of the Hitlerites; "What did the Germans do under Hitler to prevent the - 23 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 interference of the communists?" he asked.. "They put them in concentra- tion camps. They uncovered them with the aid of the secret policy. They did precisely what I have advised you to do this morning," answered Moran. This is the fate which is being prepared for the American workers by the magnates of large capital in the US -- the Morgans, the Rocke- fellers, the Du,Ponts? the Fords, and the like. Into concentration camps! Behind bars: Behind electrified barbed wire! Against this the best of the American people are fighting now. The toilers are rebuffing the all-powerful monopolies. This is testified to by the growth of the strike movement, by the stubborn character of the strike battle of the workers. The American plutocracy is striving to suppress this valiant struggle. It ts,persecuting the militant organizations of the American working class. It whips itself into a fury, lies, slanders, deceives, undertakes desperate adventures, trying, with the help of a terroristic dictatorship, to support the foundations of capitalism. But there are no forces in the world that can halt the forward de- velopment_ of mankind, or prevent the common people of all countries, in,- eluding the American people as well, from taking the path of freedom, progress, universal happiness and prosperity. Uncrowned Kings of America V. Morev A gloomy, narrow stone canyon. Along both sides rise the somber facades of multi-storied buildings. The windows of the floors are barred with heavy grates behind Which thick dusty window panes are glimpsed. Massive metal doors, copper signs with embossed letters. This is Wall Street in New York. Here, in Wall Street is the center of American finance capital, the lair of the largest monopolistic associations. Here are found the real rulers of present-day America -- the largest industrial monopolies, banks, and financial concerns. A, few decades ago, this was the only center of power in the USA. But later, other groupings of American finance capital also became stronger. La _Salle Street in the business district of Chicago has long become a cen- ter of capital rivaling and competing with Wall Street and conducting a bitter struggle against it. In America, eight groups of finance capital can be counted. One of the mightiest of them is the oligarchy of the Morgans. - 24 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 * * * In the editorial office of one of the "respectable" American bourgeois newspapers, they stowed a visiting Soviet journalist the research section. In high iron cabinets stood meticulous files supplied with dividers and indices. In them was gathered everything which had been printed at any time about the heroes of the day of America -- financiers, politicians, gangeiters. A special "file" was devoted to each. From the number of newspaper and magazine clippings existing in them one can judge how famous is one or another "hero" of contemporary America. The "files" of the most well-known figures, who are now in their declining years, contain prepared obituaries to which there only remains to add two or three lines in case of need. The journalist asked them to dhow him the "files" of the most well- known. people in the USA. They brought him dozens of swollen files. A renowned baseball player, half a dozen motion picture actors, two or three boxers. nut is it impossible to see what you have about the Morgan financiers?" the journalist asked the workers in the editorial office. Within a minute, there lay on the table a thin cardboard file. In it there turned out to be no more than, two or three dozen yellowing newspaper clippings. These were notes of the most innocent, chronicle-type nature. Attempts to clarify the causes of such "modesty" by the American press in depicting the activity of the uncrowned kings of America did not lead . to anything -- the workers of the editorial office did not desire to reveal their secrete. Everything that concerns the magnates of American monopolistic capital is sUbjected to the strictest invisible censorship in the largest American newspapers and magazines. There is nothing surprising here -- it is rare for one of these organs of the American press not to be dependent on finanCe capital. Burning incense of the most delicate flattery to them, depicting them in the role of "philanthropists" and "benefactors," the bourgeois press at the same time carefully masks and hides their real business. And only in a few progressive newspapers, which experience continual financial difficulties and which are baited by the "large" capi- talist press and by the entire apparatus of subtle, dangerous and pernicious propaganda, is it possible to find unmasking words of truth about the dic- tatorship of financial monopolistic capital of the US and about its most influential representatives, the Morgans. The dynasty of the Morgans is represented now by two brothers. On the board of the bank of J. P. Morgan and Company in Wall Street sits the vice president of this bank, Junius Spencer Morgan. His brother Henry Sturgis has, since 1928, been a partner in another Morgan bank, Morgan, - 25 - Approved For Release 2001/07/28: CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Stanley and Company, and a director in the huge concern of General Electric. The present-day sprouts of the oligarchic empire of Morgan, evidently, :do not shine with talents ,- they strive to keep themselves in the shadow and occupy secondary posts in their banks. The posts of presidents and chairmen of the board of the Morgan banks are held by more experienced executives of Wall Street0 each as Whitney, Leffingwell, Alexander, and others. For the purposes of advertising, the press agents of the Morgans have spread_ a_nromantic," legend about their origin. They assert that these magnates of Wall Street trace their ancestry to the pirate Henry Morgan, who a,century and a half ago plundered English and Spanish Ships in the Gulf of Mexico and. the Carribbean Sea. One of the Morgans, John Pierpoint the younger, even named his steam yacht -- to all appearance recalling a miniature ormiser -- "The Corsair" (The Pirate). More objective research has dispelled this legend. It has turned out that the founder of the banking dynasty, Joseph Morgan, was only an owner of taverns, inns, and stagecoach lines in Hartford (state of Connecticut). The first insurance company in the USA was created by this Morgan. His son, Junius Spencer Morgan, entered trade; the stores and factories of his firm were located in New York and. Boston. In 1853, the young Junius Morgan took all of his capital with him to London. There, he soon became a partner in the banking house of Peabody and Company. Within ten years the American newcomer had forced out his English patron; the banking firm began to be called "J. P. Morgan." It exists to this day as a branch of the New York beak of the Morgans and is called Morgan, Greenfell and Company. The first executive of the basic American branch of the dynasty of the Morgans was John Pierpont Morgan I. His father, Junius Spencer, sent John Pierpont to New 'York not long before the start of the civil war in the USA.. The bank of tbe Morgans in New York was created in 1863. Wars sup- plied this bank with "primary accumulation." During the period of the civil war between North and South the Morgan bank, through corrupt persons, purchased from the government rifles rejected by the war department, and then sold them to the very same government. This led to a noisy scandal, but it did not touch the Morgan profits. One of Morgan?s biographers wrote about this activity of his daring a difficult time for the American people: "During the trying days of the civil war, the young Morgan, con- centrating strictly on his own affairs, advanced himself slowly but surely. In 1863 he speculated in gold in an extremely unpatriotic way." * * * -26.- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 The young banker's complete lack of patriotism was felt not only in this. In 1863, after a number of heavy defeats of the Northern troops, the US Congress passed a law on military conscription. The businessmen and their lackeys seated in Congress introduced into this law a special article permitting rich men of conscription age to supply other recruits in place of themselves. Enterprising businessmen immediately created special offices to seek out young Americans whom need or other misfortunes compelled to undergo the fire of the southern racists for a comparatively small aim, John Pierpont Morgan was also released from military service -- for 300 dollars one of these offices found A lad who was Sent into the army in place of the young banker. . :More than one young employer who bought himself off in this way -- wrote R. Boyer and G. Moreys, historians of the American labor movement -- discovered that he was fully reimbursed. Looking through the lists pub- lished in the newspapers, many of them learned that the poor lads who had gone into the army in their place had laid down their lives on the fields of battle. Three hundred dollars was not high payment for preserving one's life, particularly under conditions when life brought greater and greater profits with every day, to the extent that millions of dollars were spent in the form of military orders. In. 1890, the center of the Morgan financial empire was finally trans- ferred from London to New York, to 23 Wall Street. The crude, powerful, and aggressive John Pierpont Morgan, with a massive head, an enormous mastache, and deeply inset eyes, behaved scornfully toward people. He had almost no friends. Even the paid biographers of Morgan said that he had a "feudal tarn of mind." Expanding his financial empire, Morgan pitilessly destroyed his rivals and competitors. "He fought with the financial pirates of his time, using their own weapons, and, sustaining a victory over them, acquired great influence," one of his biographers wrote about Morgan. Morgan seized the Albany and. Susquehanna Railroad from D. Gould and James Fish, great mag- nates of that time. Making use of a normal economic crisis, he ruined another magnate of Wall Street, a certain Jay Cooke. By the end of the last century, Morgan had already become a force which was far from small. Granting the American government a private loan of 50 million dollars, he helped it to stabilize state finances. The government has come under the power of private financiers," American newspapers wrote at that time. Morgan. refused to inform the press how madh he profited by this operation. More dollars, more might, more power. Morgan ruins Carnegie, Moore, Gates -- among the largest capitalists of that time. He tears the Northern Pacific Railroad away from Edward Harriman. When, in 1907, a cruel crisis broke out, Morgan, with the aid of complex operations, saved the state - 27 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 finances which were invested in private banks. In gratitude for this, the government silently consented to his seizure of his recent competitor, the Tennessee Coal and Iron Company. Theodore Roosevelt, the President at the time, approved this transaction, although it represented a clear violation of the so-called "antitrust laws.!' *eying seized the?OOmmanAing heights of the American economy, Morgangs banking house was the first of the American banks to begin to invest capi- tal outside the USA, As early as 1870, when the workers of Paris were raising the ideals of the commune in France in a straggle for their rights, and the government fled from Paris to Tours, Junius Spencer Morgan I or- ganized a loan to the French government. After the end of the Franco- Prassian. war the bank of J. P. Morgan took part in an international syn- dicate which profited from the payment of many millions in war indemnities by Prance, Since the turn of the century, Morgan?s dollars have poured in a broad stream abroad -- into Argentina, Honduras, Bolivia, and Peru. They have penetrated into Europe and. Asia. The labor of thousands of people and t4e. natural riches of these countries have become sources of um.- precedented enrichment for the American magnates of finance capital. Not organizational talents, not capacity for invention, not great scientific discoveries, but money, the power of the dollar placed the Morgans at the helm of the administration of entire branches of industry. American economists calculated in 1957 that the three Chief Morgan financial concerns alone -- J. P. Morgan and Co., Oaarantee Trust, and Bankers Trust -- now control hundreds of industrial concerns, trusts and companies with a total capital of 106 billion dollars -- about one-tenth of the: entire national wealth of the USA. The financial "empire" was created by the Morgans in a bitter struggle for sources of new profits, for new means of exploitation of the toilers. In this struggle their rivals and competitors are inflicting painful blows on them. The Hooke- feller, bank, Chase Manhattan, through unknown means has acquired part ownership in Morganos General Electric, and Rockefellerus capital is oozing into the holy of holies of the Morgans -- the 14 billion dollar concern, American Telephone and Telegraph (ATT). Bat the Morgans, too, are not behindhand. Their capital is oozing into the Mellon machine-building trust, Westinghouse Electric, into DuPont's General Motors, and even...into the patrimony of the Rockefellers, Standard Oil of New Jersey. A brawl has not ceased, either, for rule within the apparatus of the state administration of the USA. Representatives of the Rockefeller oil monopolies have expelled Morgan representatives from many government posts in Washington. -28- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 But the last decisive word in this struggle has not yet been said. The Morgans in essence have engulfed the Boston financial grouping, they are approatbing the Giannini banking system (Bank of America, on the West Coast), and they have no intention of yielding the reins of state rule to their competitors. The financial empire of the Morgans 'contains industrial concerns, and railroads, municipal trusts (mainly electric power and gas), banks and insurance companies. Three-quarter of them belong to the 250 largest concerns of the US. The banking oligarchy of the Morgans uses its con- trol for the brutal exploitation of millions of Americans, which bringb it fabulous profits. The Morgan trusts and concerns, in a number of cases-, almost wholly embrace entire branches of industry, United States Steel, the steel trust of the Morgans, produce more than 35 percent of all the steel in the USA. At the disposal of the trust are two shipping companies and 107 ships. The steel trust possesses four railroads and the largest COmpany for cement production in the USA. To it belong the largest iron ore beds in the US. -- Mesabi (state of Minnesota). Nowadays this Morgan trust is closing in on the reserves of iron Ore in Venezuela (Cerro- Bolivar Mountain), and the ore of Canadian Labrador. The first president of United States Steel was a judge by the name of E. Gary. The workers hated him; they said of him that he "saw a blast furnace for the first time only after his death -- in hell." Gary was replaced by Myron Taylor who was subsequently the personal envoy of the President of the US to the Vatican; Taylor was replaced by Edward Stettinius, Jr., who at one time held the post of US Secretary of State. At the time of the creation of the steel trust in 1901, its capital amounted to over one billion dollars. Nowadays that capital exceeds 3.5 billion dollars. This was the first billionaire concern, which laid the foundation of the "billionaire& club" to which 77 of the largest banks and industrial concerns now belong. . -Savage terror has always reined in the plants of United States Steel. Company epic's and hired criminals have expelled progressive workers and trade-union organizers, have expelled all those who have tried to unite the workers to rally them for a straggle against savage exploitation. But as early as 1919 American metallurgical workers began to organize themselves into trade unions. In that year, under the leadership of William Z. Poster (subsequently the eminent leader of the Communist Party of the UV) the first general metallurgists strike unfolded, laying the basis for the unification of the workers into a trade union of steel workers. 29 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 To this day they remember that strike in America; it has gone down in the history of the US labor movement as the "great strike." Three hundred and sixty-five thousand workers struck in 50 cities; 1,5 million Americans, together with their families, entered into a difficult, tense struggle against the capitalist exploiters. In all, 4,0000000 workers struck in the USA during that year. For the suppression of the strike, the Morgans threw against the workers troops willingly furnished them by the authorities of the states and, the government. At the center of the strike -- the city of Gary in the state a Indiana, which has almost merged now with the suburbs of Chicago -- government troops sent to suppress the strike were commanded by Major General Wood. Hundreds of strikers were beaten and wounded, thousands arrested, and 22 American workers gave their lives in this struggle. * Gary, president of, United States Steel, frightened by the events of the Great October Socialist Revolution in Russia, asserted that the goal of the strike was. allegedly "the Sovietization of the US metallurgical industry." In. answer, the workers cited facts: the unbearable 12-hour working day, and the high prices for objects of primary necessity, prices which had leaped by two times on the average during the participation of the US in the first world war. Three months of bitter strike straggle brought the workers the main and most valuable thing -- organization, the ability to fight the class enemy in strike battles. The present-day strikes of the steel workers are the most. decisive class battles, of labor against capital in America. The present president of the company, Benjamin Fairless, is famous for his savage violence against the workers. During one of the strikes at the, plant in Massillon, Fairless drove 500 strike-breakers to the plant, and led. them himself in an attack on the strikers. His name is hateful to every worker in the plants of the steel trust of the Morgans. The electric machine-building trust General Electric, and the grain.. milling plants of Genera]. Mills, the enterprises of the food industry (General Foods), and the enormous system of electrical communications (American Telephone and Telegraph) have plants in Japan, Germany, France, Italy, Morocco, England, Austria, Belgium, Chili, Spain, Turkey, Sweden, Rolland, Argentina, Mexico, Brazil, and Uruguay. Maxy hundreds of thou- sands of persons labor in these plants, multiplying the wealth of the Morgans, The Morgans have long invested their capital in the production of military and strategic raw materials. Their company Kennecott Copper, together with Phelps Dodge and Anaconda Copper Mining, hold in their - 30 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 hands one third of the copper extracted in the capitalist countries. To the bank of J, P. Morgan and Co. belongs 16 director's posts in trusts of the copper industry. And this is no accident. It is evident that copper has long had enormous significance for military production. The appearance of a new type of weapon -- atomic -- has opened a new source of enrichment for the Morgans. The oligarchic group of the Morgans, from the very beginning occupied a ruling position in the development of the atomic armament industry. Together with the concerns of the Du Pots and the Rockefellers, the Morgans "administer" the enterprises of the atomic industry of the USA. The system of this "administration" represents a cunning device of the American monopolies, with the aid of Which they kill at least three birds with one stone. Understanding what enormous responsibility they would bear in unleashing the armament race, the rulers of the American monopolies managed to have the enterprises of the atomic industry (in which more than 12 billion dollars are already invested) declared the "property of the state." The private capitalist monopolies took on them- selves only the "administration" of them. Thus, the atomic armament indus- try has been built with funds of the American taxpayers, and the monopolies have not had to risk their own capital. The concerns "administering" these plants nominally receive, in all, only one symbolic dollar a-Year. However, enormous profits fall to them in the guise of payment of expenses of "administration.," through the transfer to them of rights to patents to individual processes of atomic production, patents to apparatus, equipment, and so forth. Responsibility for the production of atomic weapons and for the consequences connected with its application is borne by the government, but only formally. In the field of US atomic armament, the Morgans act not only as suppliers, but also as bosses. The recommendation to use atomic weapons against Japan was adopted by a special committee created under the US War DepartmentinMarch 1945. The leading role in this committee was played by George Harrison and James Byrnes, Who later held the post alas Secre- tary of State. Harrison at that time was president of the Morgan insurance company, New York Life Insurance. Byrnes, both then and now, is closely connected with the Morgan Newmont Mining Company, occupied in prospecting for uranium and the exploitation of uranium beds. Sedrettry of War Stimson, who headed that special committee, was closely connected with firms in which Morganis capital was invested -- the legal firm headed by him had fulfilled important tasks for this banking house and received large fees from it. This is on Whom lies the genuine, and not the formal responsi- bility, for the fate of the victims of Nagasaki and Hiroshima% - 31 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 A strong chain of Morgan financial ties binds the companies extracting uranium. nn4 the government organs for control over atomic raw materials with the banking house of J. P. Morgan and Company. These ties have been partially shown by James Allen, a well-known specialist on American monopo- listic associations. When, in the United States, there was created a government organ -- the Commission on Atomic Energy -- to Which the "state" atomic enterprises were subordinated, then a certain John Gustafson, a representative of the Morgan company Newmont Mining, was named director of the atomic raw mate- rials division in this commission. Six out of the eight members of a consultative committee created somewhat later by the government to handle questions of prospecting and extracting atomic raw materials were employees of the Morgans. These were a certain Fred. Searles (president of Newmont Mining). A. Gray (the Morgan copper mining company Kennecott Copper), T. Brtdgeman (the firm Guggenheim Brothers, closely connected with the Morgan banks), R. McConnell .(with ties with Morgan capital through the firm RoxanpaGarporation), W. Judson (director of the company Texas Gulf Sulphur, belonging to Newmont Mining and to the Mellons jointly), and also german garnPho.diPectOr of one of the Morgan mining companies and brotlieT_CI the well-known Morgan financier Bernard Baruch. Within the very shortest period the Morgan monopolies have grasped within their.han40 the riChest,sources of atomic raw material. Now they are striving for control over uraniUM ore beds throughout the entire capi- talist A.main weapon of theirs in this straggle is the interna- tional concern International Nickel Company, in which the Morgans rule jointly with the financial groups of the DaPonts, the Rockefellers, the Mellons, and the British Imperial Chemical Trust. The interests of the Morgans 4n1it1is concern are defenfed auth leadersas R. [Isaac CubittRaymbM?J Atkin, yine president of the banking house of J. P. Morgan and Company as well as Lewis Doug].as, a representative of the concern Phelps Dodge-Morgan, who for a long time held the post of U. S. ambassador to London. In addition, on the board of International Nickel Company, Bell Telephone System. The head of, the nickel-uranium concern International Nickel, R. Stanley, is simultaneously a director of Morgan?0 United States Steel and General Electric, The greedy hands of the Morgans stretch out Also toward the mineral riches of Africa. The "Anglo-American Corporation of South Africa," in which a prominent role belongs to the capital of the Morgans, through dozens of smaller mining companies Which are subordinate to it financially, holds in its hands a considerable part of the mineral riches of the Congo, including uranium deposits. Moreover, the raw materials division of the government commission on atomic energy, in which, as has been shown above, the representatives of the Morgan monopolies rule, has concluded an agree- ment with the government of the South African Union granting the monopolies of the US., and above all the Morgans, a considerable portion of control over South African uranium deposits. Approved For Release 2001/07/2if :HK:RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 The monopolistic position of the Morgans in the field of atomic prodne- tion, a position Which they Share with only a small number of the other of the largest monopolistic groupings of the US, has permitted them to seize the commanding heights in other fields of atomic energy as well. The chief representative of the Morgans in this field is their electro- machine-building company, General Electric, Which "manages" a plant for the production of plutonium in Hanford with 'a value of 350 million dollars. General Electric has spent another 400 million dollars on additional con- struction and expansion of this plant. George kraut, vice-president of General Electric and manager of the atomic plant in Hanford, his set forth the Morgan program in the field of atomic armament as follows; to put an end to handicraft methods in the production of atomic weapons, and to place that production on a modern industrial basis. To the Morgans there belongs also the renowned Knowle Laboratory, which is concerned with experiments in the field of adapting atomic engines for military purposes (for submarines, military airplanes, and so forth). The Morgans are also using their ruling position in this field to establish their monopoly in the field of peaceful ayplication of atomic energy, Which they are hindering, inasmuch as the electric power companies are in their hands. It is therefore not surprising that the representatives of the Morgans have a place on all the committees named by the government Of the USA to work out Plans of "international control" (in essence, the rule of the American monopolies) in the field of atomic weapons and atomic energy. -Included on the consultative committee which at one time prepared the Acheson,Lilienthal report that laid the basis of the well-known "Baruch plan"were.azoldWilm%vio??TatbditarGener9.1.Eledtria, G. [amrster,IndngnBai'Aard, president of Morgan's New York Bell'Te1ephone, and other representatives of companies tied with the banking house of Morgan Fred Searles, presi- dent of Newmont Mining, was on the US delegation in the UN for negotia, tions on questions of atomic energy. Bernard Baruch who headed the delegation, had long been connected with the Morgan mining companies. That delegation tried to drag through the UN plans for the creation of an "international organ" possessing all the atomic enterprises in the world, an organ in which American -- above all Morgan ?.monopolies would rale. Such plans are still being advanced in order to torpedo the estab- lishment of genuine international control over atomic energy, and to obstruct the banning of the use of atomic weapons; the American monopolies categorically object to such banning. * * * -33- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Like other magnates of finance capital of the US, the Morgans are not content with their role Of Manufacturers, industrialists, and bankers, In order to secure the greatest possible profits for themselves, they seize the apparatus of state administration of the country, they dictate theirWill to the political ,leaders and legislators. !'We (that, is, above all the Morgans -- V. M.) are no longer only industrialists. and merchants of electrical equilment"boasted ChariesE. Vidlard?1 Wilson, president of the Morgan concern General Electric in September 1949. We play a significant role in science, in education, in the government, _ , and *# social progress." Both parties of the American bourgeoisie -- the Republican and the Democratic parties -- secure the political power of the monopolistic capital of the USA. The leading hierarchy of these parties is in the service of he largest financial oligarchies of the USA. It is precisely they Who rule in these parties, Who determine their policy, and who advance their own henchmen. to the highest posts in the state. Morgan's capital has brought more than one politician into the White _ _ Rause, to the post of president of the US. Theodore Roosevelt -- who was virtually the most aggressive representative of the American monopolies to occupy the White Rouse,7-_was a henchman of the Morgans. To him be.- longs the swing; "Speak softly and carry a big stick.." These catchwords have long become the motto_of the foreign policy of American imperialism. The well-known American journalist Landberg wrote; "Theodore Roosevelt was raised by the Morgan clique from the first stages to the very height of .,140 political career... When one studies Theodore Roosevelt's two terms at president it becomes obvious that, thanks to his assistance, this period was*periOd of the greatest flourishing of the firm J. P. Morgan and Co., and of As clients.., The evidence of this is irrefutable." , To deceive the voters, Theodore Roosevelt made demagogic speeches in which he "destroyed" the magnates of Wall Street. But to strengthen his tied with finance capital, he gave secret dinners for Morgan in the White Rouse, President Coolidge was, according to the testimony of the American journalist Landberg, "simply a marionette," a "henchman of John Pierpont Morgan." In 1933, one of the committees of the American Senate estab- lished. that Coo1idge enjoyed great privileges in the bank of J. P. Morgan and Co. With the aid of that bank, the man who was then President bought stock of different companies at large discounts, Thus was bought the influence of the banks of Wall Street over the entire policy of the coun- try, foreign and domestic. - 34 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 The Republican President Herbert Hoover was also a henchman of Morgan in the White House, Hoover was placed in the government apparatus of the USA after the first world war on the recommendation of one of Morgan's partners, a oertainThompson. In the government headed by Hoover were representatives of the banking house of J. P. Morgan and Co, Among them wereHenry_Stimson,,Secretary of State, and S. Adams, Secretary of the Navy. Hooyees chief advisers on questions of foreign policy were Morgan's associates in his bank, D. Morrow and T. Lamont, The White House in Washington was linked with Morgan's office at 23 Wall Street in New York by a direct telephone connection. Through this telephone line there came to the White House "advice" which eounded like orders. Sherman Adams, a very cloie relative of Henry Sturgis Morgan, director of many trusts and concerns connected through the Boston group with the Morgans, is presently one of the Chief political advisers of the White House. Many direct representatives of the banking house of the Morgans occupy leading posts in the apparatus administering the machine of American diplomacy. US Assistant Secretary of State John Perkins is the son of a Morn partner. For a long time the post of US Ambassador to England was held by Gifford, a Morgan partner. The textile manufacturer Robert Stevens, fOnnerSeczetarythe ArraY,,. is connected with the Morgan concerns, and ep on4. Carrying out the will of the largest oligarchic groups of US finance capital, these people lead the country Along the path of reac- tion, the path of an armament race and preparation of a new war. In order to plunge the people into the abyss of military adventures, it is, necessary to deceive them, to make them senseless through malicious propaganda. For this, the Morgans need not only police, courts, prisOns and soldiers. They need skilful demagogues and deceivers, people propa- gandizing their "ideas," people capable of creating in Americans the nOtions, ideas, tastes and aspirations necessary to Wall Street. ,A wide- spread system of hired propaganda serves this purpose, existing on the money of the monopolies and acting according to its order. In the USA there are no large radio companies, publishing houses, or newspapers which are not tied in with the monopolies of Wall Street or wiliCh could be independent.of them. Here are a few facts. Within the sphere of Morgan capital is the publishing house, Curtis Publishing Company,, and the publishing company, McCall Corporation. John Cowles, the publisher of the magazine Look, is a director of the Morgan concern General Eleotric., H. Luce's publishing concern, which puts out the ardhreactionary magazines Time, Life, and Fortune, was created with the money of the Morgans and is Closely coinected with them. - 35 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 The largest American companies in radio broadcasting (Radio Corpora- tion Of America) and in motion pictures (RK0 -- "Radio Keith-Orpheum", Warner Brothers, and others) are controlled by the Morgan and Rocke- feller banks and are financially dependent on them. Row Wall Streets conducts propaganda for reaction, fascism, and war is clearly visible, from the example of, say, the magazine Colliers. This magazine in a "special issue", in October 1951, depicted the fantastic details of an armed occupation of the Soviet Union by American neo4(albruckians; they dream about such an occupation both asleep and awake in Wall Street. The filthy dish of the editors of Colliers aroused enormous indigna- tion throughout the entire world. It compelled even those who at times have silently listened to the militaristic propaganda of the Morgan literary day laborers to say a word of protest. * * * The great American satirist Mark Twain, who hated American imperialism with all the strength of his great soul, and Who boldly unmasked its monstrouverimes, ironically wrote, unmasking the wretched ideology of capital, an ideology of bloody profit: ";Let us pray. Oh God, help us tear their soldiers to pieces with our shells, help um sow their flowering fields with the bodies of their patriots, help us destroy their peaceful homes with a hurricane of fire: help us break with inconsolable grief the hearts of widows who are not guilty of anything; help us deprive them of shelter and compel them to wander With their children in rags, without refuge, across the ravaged land, suffering from hunger and thirst." And this is what Thomas W. Lamont, Morgan's chief partner, said in his speech at the American Academy of Political and Social Sciences in Philadelphia in 1915: "If the war continues so long that we Shall come to occupy such a position," (under which the USA "would be turned into a creditor of the entire world" -- V. M.), "and if we have safficient resources to cope with this task, then we inevitably would be turned from a debtor country into a creditor country, aad such growth will sooner or later result in the fact that the dollar, insteadofthepoundstlitgoallbpatmejnterriaticrial exchange unit." Lamont cynically declared that protraction of the war has "the most important financial significance for the country." War and imperialist aggression have always served as a source of enormous gain, of monstrous enrichment for the mOnopolies of Wall Street. -- 36 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 When,one of the most bloody pages in the history of imperialism opened, and the deadly thunder of weapons of the first world war resounded in the fields of Europe, an atmosphere Of joyful excitement ruled in Wall Street. A time of military business had arrived -- the most profitable business for the Morgans and their colleagues -- bankers, industrialists, landowners. As early as the first few months after the start of the war, the banking house,of J. P. Morgan and Co. sent to Europe Morgan's partner, Henry Davison, 'bo negotiate the financing of military orders. . The banking house of Morgan became the main trade representative of the Entente countries in America. Morgan's agents bought up everything that could be needed by the warring powers -- from munitions and ammunition to provisions and canned meat -- thus gaining enormous commissions. Sixty. Wall Street banks took part in these operations of the Morgans. During the period. preceding the entry of the US into the first world war, the banking house of Morgan granted loans of 1.5 billion dollars to England and France alone. In America they say: the heart of a banker is where his money is. The magnates of Wall Street, their henchmen and their agents attentively followed the fate of their loans, percentages, and dividends. When con- ditions on the fronts were not going well for England and Prance -- the main debtors to Wall Street -- and the billions of dollars invested by the American financiers in the war appeared to be threatened. Wall Street decided to intervene. All the more, since direct participation in the war opened perspectives for still greater profit. Walter Haynes Page the US Ambassador to England, telegraphed President. Wilson on 5 March 1917z "The international financial situation is threatening for the financial and industrial prospects of the United States. The danger of a complete breach of Prance-American exchange is approaching. An inevitable consequence would be the sharp reduction of orders by all the allied governments and the practically complete Cessa- tion of transatlantic trade. As a result, a crisis would begin in the USA... If the United States declares war on Germany, then...the USA waaldcontinue to receive profit continuously, and would expand its trade for a number of years..." "The only way of preserving the present advantageous position of the US in trade, and of averting a crisis, is in , declaring war on GerMany," Page concluded. The ambassador was connected with the Morgan banks in the closest way. To make the dollar the master of the world -- this is the task which Wall Street posed for itself even then. Under the roofs of the Wall Street skyscrapers they dreamed not of peace, but of a long, profitable war, calculated to establish the world rule of the American bankers. 37 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 "We are entering the war at the order of the 'golden calf'," declared. Senator Norris. "Soon, we shall place the dollar sign on the American flag." To Washington streamed bankers, industrialists, factory-owners, speculators and. camp followers in. frock coats and dress shirts. Govern- ment posts were seized. by bankers from Wall Street, captains of industry, and. enterprising businessmen. They were helped by ties with leaders of the political parties, who well understood from whom and. in what sums the checks came to them to carry on election campaigns. The leadership of the war industry apparatus was in the hands of the Morgan henchman Bernard Baruch. Leading posts in the system of the administration of war industry were occupied by Walter Gifford, vice- president of Morgan's American Telephone and Telegraph Company, D. A. Pixel', president of Morgan's United States Steel, John Ryan, president of Anaconda Copper Corporation, and others. Edward Stetinius Sr., a partner of J. P. Morgan, was Assistant Secretary of War. Another Morgan associate ? Russell Leffingwell ? was until very recently president of the bank of J. P. Morgan and Co., and. during the first world war was named Assistant Secretary of the Treasury. Dozens of other representa- tives of the greatest financial oligarchies of the US have held. the most important posts in the governmental apparatus. These merchants from Wall Street controlled the entire war industry of the United States. They distributed profitable war orders. On them depended the distribution of short-supply raw materials, fuel, and. labor. Wall Street threw ten billion dollars of the taxpayers' money annually into the cauldron of war. Wall Street profited from the first world. war as from no other war before that time. Direct military expenditures of the US from April _ 1917 through November 1919 amounted to 35.5 billion dollars. Prom January 1916, when Wall Street began to prepare itself for entry into the war, through July 1921, when military production was stopped in the US, the profits of the corporations amounted. to 38 billion dollars. Enormous sums accrued to the largest imperialist plunderers. The government o:f the USA paid out 400 million dollars to Morgan's bank to cover loans issued by Morgan to the English government. The Morgan con- cern United States Steel increased its profits by twelve times in the first two years of the war. The blood profits of other monopolies of Wall Street also grew sharply. Hundreds of millionaires appeared in the USA during the first world war. ?n America they called them the "war millionaires." - 38 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 The United States, Which at one time had owed money to Europe, now became a?warld creditors by 19210 European countries owed it 15 billion dollars. America alone gained from the war. It turned from -a country having a mass of debts to a country to Whom all were indebted. The billionaires of Wall Street profited from the war more than anybodY. The arms were stacked, the first world war had ended. Included in , the American delegation, emissaries of Morgan were sent to the Versailles Conference. Baruch and Thomas Lamont took active part in working out the Versailles treaty. The American press blundered one day, revealing that the text of the peace treaty had came to the bank of J. P. Morgan and Co. for approval before it was presented for ratification to the US Senate. The ink had not winpiced to dry on this treaty when American banks, and eajp? all 11)e. bank of J. P. Morgan, undertook the restoration of the military and Industrial potential of Germany. J. P. Morgan himself took part in the working out the "Young plan," as a member of the international committee of experts. This plan, which received. its tit1e from the name of its authar.-- Owen D. 'Twang, chairman of the board of Margan?s General Electric -, provided for the financing of the rebirth of the German military machine. Prom 1924 through 1929, Wall Street granted Germany loans and credits of four billion dollars for these purposes. A. considerable part of these funds was granted by the Mprgan banks. The preparation of war, of new profit on mass killings, death.and,destraction, went an at full speed. The second. world war brought the Morgans and the other financial oligarchs of the USA new profits. At once, into Washington there streamed representatives of the largest monopolies; at once, they seized the apparatus of administration of the war industry; at once, a bitter struggle began for war orders, for profit. The profit carve at once began to creep upward sharply. It is not surprising therefore that the end of the second world war was greeted in Wall Street as a deadly threat to the profits of the monopolies. Large capital decreed a "cold war" an armaments race, and preparation for a now slaughter. * * * The American working class does not calmly put up with the policy which Wall Street dictates. It fights against this policy. _ . T4eiwave of the strike. movement reached its greatest height (two million strikers) precisely in 1952, when the drawn,-out war in Korea had sharply. worsened tension in international relations and had increased the danger of war. 39 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 The rulers of Wall Street know of these sentiments of the American people and fear them. They strengthen reactionary terror. The Morgans and their agents and representatives play a considerable role in this. At the beginning of the 1930s, there had been created in the House of Representatives of the American Congress a committee for the investiga- tion of so-called "Un-American activities." The committee paid almost no attention at all to investigating the truly un-American activity of the Hitlerite fascist underground in the USA during the war.' But it became the center of bitter persecution of all organizations that were in any way progressive, and of individual social and political leaders. When, after the War, Karl Mundt, a member of the House of Representatives from the state of South Dakota, entered this committee, he turned for instruc- tions -- according to the words of the American journal The New Republic -- to John W. Davis. In a special letter Mundt asked that he be given precise instructions as to what the committee dhould concern itself with. The instructions Which Mundt received from Davis formed the basis of the work of the committee. Who is this John W. Davis, and why is it precisely to him that the American gaper-reactionaries tarn for advice and schooling? He is the chief legal consultant of Morgan's bank. By the grace of the Morgans, he waa at one time placed in the post of Assistant Attorney General, and then was US Ambassador to Great Britain. This is what Davis said of himself: "Vire have an excellent clientele. What lawyer does not envy me? In the list of py clients are included J. P. Morgan and Co., (the Erie Railroad, the Guaranty Trust Company, Standard Oil Company, and others of the most eminent American concerns. These are the greatest organizations, and I am happy to work for them... We are for large capi- tal." Davis is one of the chief authors of the anti-labor Taft-Hartley law. The assistants of the American monopolies are trying -- not for the first time -- to inflict a regime of black reaction on the American people. They have always supported pro-fascist organizations in the USA. On the eve of the second world war there were 109 of these in the US, and five million Americans were connected with them. H. V. Prentis, then president of the National Association of Manufacturers, indeed admitted -- revealing the plans of the large monopolies -- that American capital possibly "would tarn to some variety of disguised fascist dictatorship." The henchmen of the Morgan monopolies take active part in subversive diversionary activity directed against the countries of the camp of peace, democracy and socialism. One of the organizers of the notorious com- mittee "Crusade for Freedom," on which the radio transmitters of the "Voice of Free Europe" relies for support, was the not-unknown General Lucius Clay, president of Morgan's Continental Can Company. These -40? Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 organizers led the "crusade" of the monopolies for the restoration of the power of the capitalists and landowners in the socialist countries; together with other. emissaries and agents of American intelligence, they provoked the fascist putsch against the people's authority in Hungary. On then: fell the blood of the patriots of new, free Hungary, spilled, by the Hungarian fascists who were agents of the American espionage services. * * * The hired propagandists of the imperialist monopolies of the US knock themselves out to disguise the true reactionary role of large monopolistic capital, to hide the rags of the bourgeois democratic dicta- torehip of this capital ruling in the USA. But life and daily reality do not leave one Stone of these false assertions standing. Facts -- stubborn, unalterable facts -- unmask the rule of the uncrowned kings of America and. their responsibility for that path, dangerous for the American people and. for the cause of peace, along Which the lords of capital are leading the TJSA. Oil. Rlookand Dollars O. Peofanov When American bombers rise into the heaven and American tanks creep along foreign soil, dollars pour into the safes of the Rockefellers. When in the oil-refining plants of Arabia workers perish under the weight of hard labor, in another hemisphere, it New York, in the office of the Rockefellers, they count up the dividends without any emotion. When the American fleet ploughs the waters of the Taiwan Straits, insolently trampling on the rights of the Chinese people to the territory which has been theirs since time immemorial -- the island of Taiwan -- into the current account of the Rockefellers are entered new profits. Oil and war are business for the Rockefellers. * * * In the center of New York, in a narrow strip of Manhattan between West 48th and West 51st Streets and Fifth and Sixth Avenues, there rises a group of skyscrapers erected with the money of John D. Rockefeller Jr. Itis no accident that these skyscrapers are called "Rockefeller Center": here is the residence of the American "oil king." The black shadow of the Rockefeller palaces extends far beyond the bounds of the United States of Americas - 41 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 gere, at 30 Rockefeller Plaza, is located the center of administra- tion,Of the six largest companies, controlling more than half the oil industry, headed by the renowned Standard Oil of New Jersey. Prom here the greedy hands of the Rodkefellers stretch out to Arabia and Venezuela, to Iran and Canada, Here too, in the center of New. York, the transactions of the family banking house of the Rockefellers, the Chase Manhattan Bank, are carried out in quiet offices. This beak, with a capital of almost 8 billion dollars, is one of the largest in the capitalist world. Included in the financial empire of the "oil kings," besides the Chase Manhattan Bank, are also the insurance companies Metropolitan Life Insurance and Equitable Life Insurance. The operations of these companies are extremely varied -- from the renting of railroad cars, to machinations ruining farmers of the South Who have been obliged to mortgage their lands. The Rockefellers make profit also on the daily needs of Americans. If an American smokes a cigarette, bays a sandwich or a package of meat, or drinks a glass of Coca-Cola, he increases the wealth of the "oil king" of America. Many other trusts and concerns in the USA are linked to the throne of the "oil king" with a dollar chain. They all serve one and the same goal of the uncrowned autocrats of America -- unrestrained profit through the exploitation, robbery, and deceit of the workers. 1 Bow did the dynasty of the "oil kings" arise? What does it represent? Where did its infinite wealth dome from? Why does it -- together with a little group of other oligarchs of Wall Street -- rale America, and propel the affiars of the capitalist world? The founder of the dynasty, John Davison Rockefeller I, at one time a government clerk, and later a cashier in a private firm, always -- accordineto his own admission -- thirsted "to make money." Much later When the income of this oil magnate exceeded the fortune of the English royal family, he said to reporters, "I believe that the capacity to make money is a gift from above, like a capability in art, music, or litera- ture... Being gifted with this capacity, I consider it my duty to make more and more money..." * * * In 1859, the first oil. well was drilled in the USA. Soon after this, Rockefeller organized the Standard Oil Company in the state of Ohio. A monopolistic position in the oil business, securing for him the title of "oil king," did not come at once. It was brought about by the cold- blooded ruining of rivals and competitors, by money-grabbing which had become the purpose of life, by the ability to profit from the labor of -42- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 others. By the time Rockefeller had become the first billionaire in the world, an entire clique of "robber barons" had become firmly consolidated behind him. That clique follows the Rockefellers from generation to generation, John Davison Rockefeller Jr. resembles his father not only in name, but also in habit. Be persistently continnes to multiply the Rockefeller capital. In the bitter struggle for profitable economic positions, the un- crowned autocrats of America are guided by the laws of the jangles the victor devours the vanquished.. In Wall Street such means of destroying competitors is diffidently called "merger." The bloodless but cruel struggle among the monopolies of the US does not cease for an instant. The journal Fortune, organ of American large capital, wrote in November 1954 that there takes place in the USA on the average of 45 mergers of American industrial concerns per month, and that annually dozens of small companies are engulfed by larger competitors in the country. In recent years, the Rodkefellers and the groups connected with them have considerably expanded their positions at the expense of Morgan, their most da.ngerous rival and competitor. In economics -- writes V. Perlo, an expert on the American monopolies, in his new book The Empire of Large Finance Capital, published. in Naw York in August 1957 -- this displacement is related to the flourishing of the oil oartel, and its conversion into the largest, ruling source of profits in the world. In politics, this displacement is associated with the con- version of the government of the USA into the most militarized aad geo- graphically expansionist force, as a new, disguised form of colonial empire. While half a century ago the steel trusts (Morgan) possessed 30.8 percent of all the capital of the 100 largest trusts aad concerns of the US, and the oil trusts (Rockefeller) only 7.4 percent, forty years later 28 percent of the capital has already become the share of the oil com- panies, and 11.9 percent that of steel. In 1954, reckoned among the largest concerns of the US were 14 oil concerns with a total capital of 23 billion dollars, 8 steel-processing concerns (capital of 9 billion dollars), three automobile (8 billion) and six chemical (5.5 billion dollars). The growth of the capital of the Rockefeller group is accompanied by a strengthening of its political influence. Its henchmen and emissaries now rale in the high governmental apparatus of the US. But the Morgans do not intend to yield their positions without a battle. Experts on the American monopolies predict new, bitter encounters between these largest monopolistic oligarchies of the US, - 43 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 In 1967, the Rockefeller oligarchy of American oil industrialists controlled a capital of 61.4 billion dollars. The precise size of the Rockefeller fortune is a state secret of America; the American press . noted at one time that special measures are taken so that data concerning the largest fortunes of the US are not published. ; The,Rockefellers do not buy yachts worth many millions, like the Vanderbilt magnates; they do not install doorknobs and water faucets of pure gold in their palaces. But love for luxury is not alien to them. The play house where the Children of the Rodkefellers frolic cost a half million dollars. Bourgeois newspapers, willingly "forgetting" about such "trifles," relate with tears of sympathy how the children of the billionaire earn pocket money by raising rabbits, cleaning boots, and even by destroying flies at ten cents per hundred. The Rodkefellers do not like to speak of their capital. But no one hap long since believed the words of Rockefeller the elder, "God gave me money." The people want to know the truth. And the truth about the wealth of the Rockefellers consists of dark deeds, thousands of rained families, hundreds of thousands of workers in many countries of the world tormented by work beyond their strength. The truth is the concealed history of many wars -- it is oil stained with blood. John Do Rockefeller II does not direct his wide empire along. He has five sons -- John D. III, Lawrence, David, Winthrop, and Nelson. They are all large capitalists. Each has his role, his department. Only Winthrop has not become famous for anything, unless one counts a scandalous divorce case. The task of John III is to personify the imaginery "philanthropists" of the family. Bourgeois newspapers paint him as the embodiment of "modesty" and even "shyness." So that he may consolidate his reputation for "philanthropy," John III heads a council of guardians of a Rockefeller philanthropic fund- From time to time he is entrusted with more responsible missions. Not as a tourist, bat as a very large creditor, John D. III was present in the American delegation at the signing of the San Francisco treaty with Japan; it is evident that this country is enveloped by a net- work of branches of the Chase Manhattan Bank. Lawrence Rockefeller, a middle-aged gentleman with a square beard, is well-known at the. New York Stock Exchange. He is one of the directors of the Chase Manhattan Bank. In this same bank, in the capacity of a vice president, the fourth offspring, David is striving. Behind the concrete walls of the bank the Rockefeller brothers jealously guard the interests of their oil dynasty. - 44 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 David Rockefeller directs the international operations of this bank, The bourgeois press advertises him as the owner of the best collection of insects in the world, and as possessing extremely gentlemanlymanners. But When he enters the office of the bank and the steel doors close behind his back, the lover of butterflies turns into a greedy seeker after dollars. The hired biographers have every basis for calling him "the personifica- tion of the virtues of Wall Street." The American press advertises Nelson, the fifth and most active of the young Rockefellers, as an "entrepreneur of aalture" and a "patron of the muses". He is one of the directors of the Museum of Modern Art in New York. But considerably better known is his activity in the diplomatic field. Included in the American delegation to the conference organizing the UN in San Francisco in 1945, he did everything, even then, to worsen relations between the USA and the USSR. When former US President Traman proclaimed the notorious "four point" program, with its purpose of strengthening the penetration of American capital into the colonial and dependent countries, Nelson Rockefeller became a leader of the government organ to carry out this program. Should one be surprised at the fact that the Rockefeller bank held first place on the list of 54 American banks which received financial jobs from the government for US operations abroad? Half of all private foreign capital investments made after the Second Wbrld,Wkr have long been those of the American oil companies. In 1953, more than half of all foreign profits received by American private? in- vestors entered the safes of the oil companies. This, of course, to a considerable degree has been the1 doing of that same Nelson Rockefeller. The Rockefellers have long nourished an irresistible attraction for the countries of Latin America: the provocatory smell of oil reaches them from the South American continent. Therefore, Nelson Rockefeller, who had long been trying to turn South America into his family estate, was at one time placed at the head of the so-called "Bureau of Inter- American Affairs." For a long time Nelson Rockefeller held the post of special assistant to the President for foreign policy matters. He took part in cabinet meetings and meetings of the most important US government organ, the National Security Council. This council works out and directs the entire policy of the United States. ,Nelson is not the only "arm" of the oil magnates in the American government. Attorney General [minister of Justice] Herbert Brownell Jr. is a henchman of the "oil king." At his order, a court suit against the oil monopolies of the US, accused of violating the Sherman Antitrust Act, was -45- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 discontinued., Brownell has labored much to unleash, in the Gauntry, baiting of the Communist Party and of many progressive and liberal or- ganizations in the USA. Lewis D. Straus,the head of the Atomic Energy Commission, is a financial adviser and director of tbe "Rockefeller Brothers" firm, John Foster Dulles, who holds the post of U. S. Secretary of State, is a co-partner in the law firm of Sullivan and Cromwell. That firm has long upecialized in defending the interests of the largest monopolies of WaIl Street in general, and of the "oil king" of America in particular. And can it be otherwise? It is evident that John Poster Dulles was at one time, 4 member of the board of Rockefeller's Standard Oil of New Jersey,. The attractionof.the post of Secretary of State (Minister of Foreign Affairs) for the Rockefellers is understandable. This post makes it possible for them to interfere in the foreign policy of the USA, to give it the direction necessary for them. Edwin Johnson, a senator from the state of Colorado, indeed declared in 1947 in Congress that the ' oil companies of the US are making broad use of the State Department to obtain oil concessions in the Middle East. "The policy of the State Department," the newspaper Daily Compass wrote in this regard several years ago, "is born in the offices of Standard,Oil. Prom .there it Is transmitted to the Department of Defense, Where the_heads of the Army and Navy approve it. When this policy gets to the State Department, it becomes the policy of the government and is supposed to be confirmed by Congress quickly and without any changes what- ever. When an order for laws designed to protect the interests of the oil kings comes from the Rockefeller dynasty itself, the entire Congresss from the small to the great -- comes to "attention" and does what the bosses order it to do." Recently Senator 0?Mahoney confirmed this impartial truth about America. With the purpose of placing his rivals -- the Republicans -- in an unfavorable light, 0?Mahoney, a representative of the Democratic Party in Congress, undertook an investigation of the influence of the US monopolies on the foreign policy of the country. On 22 February 1957 he made an extremely eloquent statement to a correspondent of one of the newspaper trusts of America, the essence of which amounted to an admis- siOn,Of 0,0 40,0 that the: large oil companies of the USA determineUS policy in the Near East. The Senator related, for example, that on 13 August 1956, that is, three days before the start of the London meeting on the Suez question, Secretary of State Dulles and his assistant at that time, R. Hoover Jr, consulted in the State Department in Washington with representatives of the large, American oil companies on the position of the USA at the meeting in London, _Dulles gave, at this consultation, firm guarantees that the -46- Approved For Release 2001/07/28: CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28: CIA-RDP65-00756R000300270001-9 interests of these companies would determine the policy of the State Department in the Suez question. Present at the consultation were representatives of Rockefeller 's Standard Oil of New Jersey, ARAMOO, Standard Oil of California,, and others. In his conversation with the correspondent, 00Mahoney was obliged to admit the existence of "a close alliance between the leaders of the oil corporations that operate in the Middle East and the State Department in carrying out foreign policy in this region." *5* - In recent years the Rockefellers have been taking hold of ever newer sources of oil. Rockefeller's oil companies are unceremoniously crowding out their English colleagaes in the Near East. They have already deprived them of domination in the extraction of Near Eastern oil. The heavy hand of the "oil king" of America is also stretched over the French possessions in Africa. When, in; 1949, representatives of the largest American banks created a special committee for the "stimulation and facilitation of the development of the overseas territories of France," Winthrop Aldrich, a close relative of John D. Rockefeller Jr., was at the head of the committee. In subsequent years the Rockefellers have taken over one more important post -- that of Ambassador to England, rep- resented by that same Aldrich, Who was replaced in this post by another henchman of the Rodkefellers, D. H. Whitney. Before Aldrich, this post was held by 7,Leis - Douglas,, a representative of Morgan. ,The "oil king" is consolidating his rale in Latin America, from whence the USA receives up to ninety percent of its oil imports. In Venezuela alone, almost three-fourths of the extracted oil belongs to Americans, Who have obtained almost a billion dollars in profit there in six years. The Rodkefellers are strengthening their penetration into West Germany. The share of American capital in the extraction of oil in that country reached 62 percent in 1950. In the year 1951 alone, American capital in the oil industry of West Germany amounted to 172 million marks. The capital of the Rockefeller companies also plays a significant tole in the oil industry of Japan. One of the basic methods of knocking out profits used by the Rodke- fellers is that of openly predatory speculation. Here is an examples the net cost of one barrel of oil in the countries of the Near East does not exceed ten cents; in the USA it amounts to about 80 cents. The oil is sold, however, at a price of $1.75 per barrel. This makes it possible for the oil profiteers to put hundreds of millions of dollars into their 'pockets annually. The one oil company of ARAMCO alone, in Arabia, received about 425 million dollars of profit in 1952, or about 1.4 dollars of profit from each barrel of oil. This is undisguised robbery, not only of the countries of the Near and Middle East, Where the Rockefellers obtain the free oil, bat also of the European countries, where the oil monopolists supply oil at fabulous prices. -47- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 The oligarchy of oil industrialists is continually perfecting the process of squeezing out profits. In enterprises of Rockefeller's ARAMCO, less than two percent of the amount received from the sale of oil goes for the wages of the workers. In Venezuela, Standard Oil pays the oil workers five times less than workers in the USA. Therefore its profits per company worker in Venezuela are over four times greater than those in the USA. At one time, when seeking a confidential assistant for himself, John D. Rockefeller I cynically declared that he needed a man capable of "ruining thousands of families." "In one word," he boastfully added, "I am seeking a second Rockefeller." It is difficult to define the predatory essence of capitalism more precisely and more cynically. The American people hate the plunderer billionaires. The Rocke- fellers know this and fear the people's anger. Therefore, they spend enormOus sums on special advertising agents- The capitalist press assidnously spreads the myth of the Rockefellers as benefactors. The bourgeois press depicts with tears of compassion the sacrifices of the "oil king" for philanthropic purposes. They speak, write, and all bit sing songs in the US about the Rockefeller "philanthropic funds." Bat the motives of the ostentatious Rockefeller "unselfiShness" are extremely selfieh The dynasties of the "oil kings" are annoyed by taxes on their doldasal profits. Moreover, in the USA, inheritance taxes also exist. And lo, the inventive lawyers of the monopolies found a way out for their bosses. They proposed to create a philanthropic fund, free of taxes. This hypocritical artifice of the "oil king" has evoked a storm of praise in the corrupt press. The Rockefeller "philanthropic fund" is nothing other than his own purse, in Which the "oil king" can keep part of his capital without paying taxes. The money in the fund is managed by a "council of trustees" con, slating of representatives of the largest monopolies -- mainly Rocke- feller's. Among them are John McCloy, former American High Commissioner in West Germany, Robert Lovett, former Secretary of Defense, and others. In 1950 John Foster. Dulles, Who had been a member of this council since 1926, became chairman of the "council of trustees". Row heading the fund is the oldest son of the "oil king" of America. Out of the Rookefellers' philanthropic fund are financed jobs involving the creation of new types of armament. The "oil, kings" display special interest in the atomic bomb. "Without the aid of Rockefeller," the magazine Colliers wrote in 1951, "the United States would have been without the atomic bomb daring the second world war or even now." As the American press has stated, the most important research connected with the creation of the atomic weapon was conducted at Columbia, Princeton, and other - 48 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 American universities, financed by Rockefeller. At California University, work on the splitting of the atom was conducted with Rockefelleris money. According to the-testimony of Colliers, an important discovery in the field of the atomic weapon was made at Chicago University, which was founded by Rockefeller and which received considerable swine from him for work in the field Of atomic weapons. In 1950, John D. Rockefeller II travelled to West Germany for negotia- tions with the German concern I. G. Farben Industrie on drawing up a con- tract; for research in the field of atomic energy. In 1953, the Rockefellers bought up the stock of the largest uranium mines in the Belgian Congo. Hidden behind the payments from the philanthropic Rockefeller fund into the tills of the universities, are avaricious calculations. With the aid of these payments, the system of higher education is subordinated to the interests of large capital. The Rockefellers display considerable interest in higher educational institutions. Within their walls, the Wall Street moneybags Want to train for themselves servants of monopolistic capital. For this, they name their own representatives as "trustees" of the universities. "The trustees," it is said in the Charter of Columbia University, "always keep complete authority in the field of the direction and guidance of the entire educational process.. They choose the president of the university...they name the professors and teachers..." Columbia University in New York has long enjoyed donations from the Rockefellers. Its "trustees" are henchmen of the "oil king": Thomas Parkinson, the president of the Rockefeller insurance firm EquitabI&Life Insurance, and Marcellus Hartley Dodge, son-in-law of the "oil king" and the chairman of the board of directors of the military concern, Remington Arms Company. An object of special concern for the Rockefellers is the 86-Called Russian Institute of Columbia University, created in 1946. This "educe, tional institution" has an extremely distant relation with science and education. It is characterizedby the closest ties with the intelligence organs of the State Department, for which the "institute" prepares cadres of "specialists on Russia." The overwhelming majority of the students of the "Russian Institute" are officials of the State Department, cadets of the military school at West Point, and students of the naval academy. Since the "institute" was created, its director has been Gerold Robinson, a "specialist on Russian affairs". During the war, Robinson was chief of the "Russian section" of strategic intelligence of the American Army. Under his direction, there worked: in: the "Ruesian Institute" -49- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 sUPh,double-dyed reactionaries as Professors Mosley and Simmons and the pseudo-expert Harry Schwartz; one of the violent propagandists of hatred toward the USSR in the pages of the newspaper The New York Times. The "oil king" trains cadres not only for anti-Soviet diversion. Through AHAMOO in Arabia he supplies the so-called "school of eastern studies" in Jerusalem with money. In this "school" American officers are tatiOat_eslaiotage in the Near East. Thus the links are forged in one and the same chain -- the preparation of a new war of the monopolies against the camp of peace, democracy, and socialism, ? *-* * The first fortune of.Rodkefeller, the "oil king," was occasioned by the war ,boom evoked by the civil war in UK, USA. The first world war brought Standard Oil unheard-of profits. After the end of this bloody slaughter, the dollars of the "oil king," like those of other American monopolies, facilitated the revival of the Germany war machine and its preparation of the second world war, Rockefeller's Standard Oil had long been connected with the German con,- cernj, G. Farben Industrie', which reared Eitlerism, that monstrous offspring of German imperialism. Without this industry of the weapons of war, faec145.74. aggression Wad have been impossible. I. G. Farben Iu- dustrie filled Eitler's shells with TNT, supplied mechanized and air force units with rubber and fuel, and finally, supplied the poison gases for the mass .murders of people in the camps of death ?Auschwitz and Majdanek. This concern was the only producer of synthetic rubber and gasoline in the country; in its factories 95 percent of the German poison gas and 84 percent of the explosives were produced. The Standard Oil Company was an ally and partner of I. G. Farben Industrie._ The cartel agreement of 1938 concluded between them granted I. G. Farb= Industrie the opportunity to create enormous reserves of aviation gasoline for, the war being prepared by German imperialism. In addition, this agreement granted I. G. Farben Industrie a share in the profits from the production of aviation gasoline in the USA. T#0 Second World War did not break these cartel ties, it only temporarily weakened them, drove them underground. Thanks to them, the Hitlerites received secret technical information from the USA even during the war, and with the aid of their agents in South America, they bought aviation gasoline from Standard Oil. It is not surprising that only two out of the 55 enterprises of I. G. Farben Industrie ouffere4 from the Anglo-.American bombings. 50 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28: CIA-RDP65-00756R000300270001-9 ? While the people's of the world were celebrating the victory over ' fascism, alarm was ruling in Wall Street; a threat to the enormous profits of wartime had arisen. But the New York stock profiteers did not intend to give Up their fabulaue profits. The "cold war" was one of the main factors of profit. The AmeriCan oil co4anies received over four and a half billion dollars in'profits in the very first years of the cold war. :Half of these profits were the share of the Rockefeller concerns. Dollars flowed in a still broader stream into the safes of the "oil king" after the start of the war in Korea. By as early as the first quarter of 1951, the profits of 23 oil companies of the US had risen one and a half times. The cessation of the Korean War did not stop the stream of profits -- it was evident that the arMs rade continued With unrelenting force. And while, during the last year of the iar in Korea, the profits of Rockefeller ?9 Standard Oil reached a hitherto unprecedented level -- 553 million dollars, in 1955 the profits topped 700 million dollars, and they continue to grow. HThe EoCketellers are once again profiting from the arms race from war 'preparations. -The bloody events in the Near East in the fall of 1956, the war against Egypt begun by England,' France and Israel with the silent protec- tion and secret instigation of the US monopolies, brought new profits to the American oil monopolies. In February 1957, Rathbone, president of RoCkefelleres Standard. Oil of New Jersey, told a committee of Congress that the increase in oil prices evoked by the Suez crisis Would increase the profits of the American oil companies by 100 million dollars in 1957, would bring those profits up to a fabulous gam -- 900 million dollars This, it appears, was Why the houses of Port Said burned, why the blood of Arab women and children was spi1led1 * * * ,Now much ink has been spilled by the propagandists of the American monopolies in attempts to assure the entire world that American "aid" is rendered "unselfishly" to the countries receiving it, with the only purpose being that of facilitating a raise in the standard of living of their peoples. But then in February 1957 a secret letter of Nelson Rockefeller, one of the representatives of the dynasty of the "oil kings" of the US, became the property of world public opinion; Rockefeller, to this day, enjoys great influence in the White Nouse. In this letter, 4 broad program is set forth for the use of the so-called economic "aid" of the USA for the political and military enslavement of underdeveloped countries by American imperialism. -53.- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 With the ultimate in cynicism, the "oil king" of the US proposes a "total" foreign policy Which would unite political, psychological, economic, military, and special methods into one Whole. The author cites Iran as an example of the application of such methods. "By rendering economic aid," he writes, "we have succeeded in obtaining access to Iranian oil, and now we have already firmly consolidated ourselves in the economy of this country. Consolidation of our economic positions in Iran has made it possible for us to place its entire foreign policy under control, and, in particular, to persuade Iran to enter the Bagdad Pact." Nelson Rockefeller calls for a strengthening of American military alliances with the help of a "large program of economic development."... basic _part of our (that is, US -- 0. F.) economic aid," he declares, X5110113,d oOMO.to underdeveloped countries through channels which should serve thaeagse_of our military alliances." The Rockefeller program sets forth a plan .for. the utilization of private capital investments with the purpose of securing the political rale of the USA in the countries receiving aid.. For what ;reason? In order, it is said in Rockefeller' s letter, that "the development of economic, relations with these countries" may give the USA "the oppor- tunity to take into its own hands the key positions in the economies of these countries." This is where the plans for imperialist enslavement of the !landerdeVeloped" states, for their subordination to the mercenary Interests of the ,monopolies of the. US, for their plundering by the in- satiable 04 trgets and other trusts of the United States of America originate. .The,etruggle against these plans of the imperialist monopo- lies is an important part of the straggle against a new world war, which is being prepared by the American magnates of capital. Merchants of Death G. Dad'yants When the advertising agents of theDul'ont family of billionaires want to demonstrate the might of this dynasty, they relate how once US President F. Roosevelt, in one of his personal meetings with Irenee Du Paot, invited him to visit the White House. "This invitation was never accepted," the magazine The Saturday Evening Post, an organ of large US capital, wrote subsequently, not without self-satisfaction. The American press breathlessly describes the luxurious estates of the DuPont, scattered throughout the territory of the state of Delaware, which has _long been nicknamed in the US as the_"dukedom of the Du Pont." More than a, few newspaper and magazine pages have been devoted to a description of the fabulous estate of the Du Pouts, "Longwood," located on the ,outskirts of Wilmington. - 52 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 This, as the biographers of theDU.Ponts testify, in a medieval castle, surrounded by a thousand acres of attentively cultivated land. In the greenhouses of"Longwooduare grown all year round oranges, lemons, peaches, and also all possible sorts of exotic fruits. The owner of the estate dare?or his greenhouses: during the 1930s he spent $25,000 for one cultivated bash alone, which was supplied teLongwooe.. Besidestongwoog Which, according to careful estimates of investi- gators of the American way of life, is valued at about fifteen million dollars, another 23 suburban castles of theDu Ponts are located near Wilmington. ? Each 9f them is famous for its sights. At "Nemur," the residence of Henry I. [llenryFianpia?] DuPont, fo,r example, there esepld at taken at one time from the. medieval English estate of Wimbleton. Here, too, there are luxurious gardens, located. below the level of the sea... The state of Delaware is called the "dukedom of theDu Pants" pot only because the estates of theDu.Ponts exceed, in their magnificence, the castles of medieval feudal lords. This state is in essence their feudal dominion. TheDu Pontshere own everything: schools, hospitals, bridges and roads. The local newspapers belong to them, the courts and the authorities of the state serve them. They establish the rules that are suitable to them. TheDu Pontshere are masters in the full meaning of this word. Their luxurious palaces, valued at 150 million dollars, are only insignificant grains of sand in the sea of their wealth. The capital controlled by theDu Pont oligarchy now amounts to 16 billion dollars. Their power -- the power of the dollar -- extends far beyond the boundaries of the state of Delaware, and even beyond the boundaries of America. Back in 1934, John Jacob Rascob, the chief assistant of Pierre S. Du Por4Ithe owner oftongwood: boasted: "TheDra Pont group, with the aid of joint-stock capital, controls a larger share of industry than any other group in the US. Not one of the groups, including those of Rocke- feller, Morgan, Mellon, or any other, controls industry on such a scale or bears such responsibility for it as does theDu Pont company." Since that time, more than twenty years have passed. Daring those years the might of theDu.Pont group has grown still farther. They can rightfully be called the kings of American Chemistry and automobile ,building. - 53 - " Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 At the present time, three enormous monopolistic associations of the US are under the control of the Du Fonts; the gigantic chemical concern Du.P.0.3b, de Nemours, the United States Rubber Company, and the largest military-industrial enterprise of the capitalist world, General Motors Corporation. In order to disguise their control over these associations, the Du yonts have created the holding companies, Christiana Securities and Delaware Trust. All the stock in them belong to the Du Potts themselves or to members of their enormous family. Formally, the concerns Du Pont de Nemours, United States Rubber, and General Motors are also joint stock enterprises, that is, any businessman can participate in them with his capital. However, in fact all power in the boards of these companies belongs to the Du Ponts. It is sufficient for these gentlemen, for example, to own 17 percent of the stock of United States Rubber Company, in order to dictate their will within the company, since all the other stock is distributed -- more accurately, atomized -- among 14,000 small stock-traders and other lovers of profit... The Du.Pontos have turned the companies controlled by them into markets for the sale of their own products. They compel United States Rubber, for example, to buy raw material from the concern E. I. Du Pont de Nemours. It stands to reason that the prices for that raw material are established by the Du pOnts themselves. Part of the production of United States Rubber is sold to General Motors, and the Du Polite again dictate the prices in just #10.same way. And those who acquire the products -- the consumers -- pay for these prices. Thus enormous profits grow, permitting the Du Pouts as they admitted in the advertising brochure This isDu Pont, which they published for the stockholders -- to subsidize its own expansion." For the sake of what is this unending expansion carried out? For the sake of what is the artful mechanism of the stocks established, the complex, disguised control of the holding and stock companies, the lowered and increased prices, the hidden monopolistic market? What is the moving force of the growth of the industrial empire of theDu Ponts? In the. same brochure, This isDu Pont, they themselves answer this question; "The impelling motive..., without doubt, is the attractive force of profits." The force of profits. TheDu Pants do not exist in order to grow peaches in the state of Delaware. The meaning of their existence is in the incessant chase after profits. With the Du Ponta, everything is subordinated to an increase in profits. In the enterprises of Du Pont de Nemours and United States Rubber, a bestial speed-up system is established. This is that scientific system of "squeezing out the sweat" from the worker about which V. I. Lenin wrote with such anger; but a system still more highly perfected, carried to - 54 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 genuine fanaticism. While in 1929 the worker in the DU,Tont concern produced, in a nine-hour working day, 250 pounds of zinc Paint, now, a shorter time," his production -- 3,000 pounds -- is twelve times greater. And at enterprises of General Motors, according to the testimony of the American trade-union press, the conveyors are moved at such speed that people often faint away and die at the conveyor. But what is a man to theDu, Ponts They count profits... And the profits of General Motors. grow with every passing year, with every day. While, for example, in 1954 profits had grown to the fabulous sum of 806 million dollars, in 1955 they reached figures never been seen in the hist ry of the American monopolies -- more than one billion dollars. The Du. Ponts had. exceeded themselves. r In. their unquenchable thirst for profits, theDu Ponts do not content themselves with the exploitation of the American workers chained by need to the conveyor belts. People work for them also in Canada, where their firm. E., I.Du Pont de Eemaurs owns enterprises that extract pyrites; in Mexico; and. in Chili, where enterprises of the processing industry belong to theR9' The. . Ponts have plants in. Argentina and Brazil. Du Pontls General Motors directly or indirectly controls 36 branch companies abroad. Among them are the plants of the "Opel-Werke" company in West Germany, and the "Velox," rTalden," and "Wevern" automobile plants in England. Du 1,9TA! )!Futt 04 ,States Rubber Company has branches in. Argentina, Columbia, Vener1,44 Scotland, Cuba, and Mexico. Rubber plantations on Sumatra and in Naive belong to it. The press calculated one day that about one million !/91*Prs in various parts of the world work for the enrichment of the Du Ponts. * * * In America they call the Du Ponts the "hereditary merchants of death." And indeed, the greatest profits are brought to them by death, destruction, and wars. It was precisely due to war orders during the period of the First World War that the compankyDu. Pont de Nemours was turned from. a comparatively small dynamite and gunpowder firm into one of the gigantic world trusts. The enormous profits realized by the DpPontedurizig the First World War permitted them to own General Motors from the beginning, and then, also, the United States Rubber Company. If the income of the Du T'onts during the period of the First World Wax was enormous, then the profits they acquired during the Second World War,were fabulous.. DuFing the years of. the First World War the entire turnover of theDu,.Pont dynamite and gunpowder concern amounted to a billion,dollars. During:the years of the Second %rid. War, just one of theDu I3.ont concerns General Motors -- received war orders of 14.6 billion dollars from the US government. - 55 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Reared by war, the Du Pontsfear peace. If several years of the postwar peace were "lost years" for the kings of dynamite and gunpowder, they cheered up in 1950, when the war began in Korea. Orders worth billions at once flowed into the bulky safes of the owners of General Motors; during the years of the Korean war that concern received some seven billion dollars in war orders. Behind these dry figures was the roar of the motors of American bombers over peaceful Korean cities, and the thousands of tons of deadly load thrown down by them upon the heads of women, old men, and children. The name of the Du Pouts is inseparably connected with the most sinister activity of4.merican monopolistic capital -- with the produc- tion of American atomic and hydrogen weapons. The Du Pont gentlemen with light hearts profit by many millions of dollars from this black business. No one but the Du Fonts was given the task of building the first complex American atomic enterprises for the production of plutonium in Hanford (state of Washington), enterprises Which were subsequently transferred to the Morgans. The main atomic plant at Oak Ridge (state of Tennessee), where the atomic bombs are produced, was also built precisely by theDu Pouts' concern. When Truman gave an order to the Atomic Energy Commission in 1950 to begin creating hydrogen bombs, the Du Pomba once again were right on the spot. The commission immediately concluded a contract with them entrusting them with the construction of a plant for the production of deutertum (a constituent part of the hydro- gen bomb) at the Savannah River (state of South Carolina). The rulers of the US knew to Whom to entrust this black business. * * * In order to direct the policy of the government along paths profitable to themselves, the monopolies need state power. Together with the other oligarchic groups of US finance capital, the Du Ponts guarantee themselves ruling positions in the apparatus of state adminis- tration of the USA. They maintain close ties with the ruling hierarchy of the Republican party, making large contributions to its treasury during the period of election campaigns. Thus securing for themselves decisive influence in the leadership of this party, the Du Ponts send their direct agents and henchmen into the apparatus of state administration of the US. Representatives of the Du Pont concerns hold cabinet posts in the government of the US. The policy of the Du Pont henchmen in the government is fully subordinated to the interests of the industrial and financial oligarchy, as well as to the interests of US monopolistic capital as a whole. -56- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 It is therefore not difficult to understand why the USA so per- sistently, opposes the redaction of armaments and armed forces, the banning of the production, testing and use of weapons of mass destruction. It is evident that tanks, planes, and nuclear weapons are business for the American monopolies. The Du Fonts are assigned an honored place in the general staff of the American monopolies -- the National Association of Manufacturers. LammotDu Pont has long been a vice-president of this association. The representatives of theDu.Ponts belong to many of the secret organizations of large capital, rendering determining influence on the course of state administration in the country. At one time, one of the committees of the Senate, under the pressure of the indignant public opinion of America, published data on the secret forces of Wall Street that finance the most reactionary organizations of the US -- the "League of Freedom," the "Crusaders," the "Defenders of the Eepublic," the "Economic Council of the State of New York," and others. /t appeared that out of about one million dollars paid into the funds of these organizations by the largest industrialists and bankers of America, 356,000 was the contribution of theDu.Ponts and their agents. TheDulponts rale in the so-called "National Economic Council," Which is occupied with reactionary propaganda and with active secret activity in circles of the US Congress. It is precisely that organization Which strives for the adoption of the arch-reactionary bills aimed at under- mining and destroying the trade unions and the organized labor movement in the United States of America. TheDu Ponts. finance the American Legion, out of Whose.ranks the monopolies of Wall Street prepare American storm troopers to make Short shrift of progressive workers organizations and trade unions. The kings of the dynamite and atom business do not stint their dollars it is evident that in these detachments of American reaction they see one of the chief means of suppressing the democratic forces of the American people. Like the other magnates of large US capital, theDu.Ponts fear that the truth about the activity of their concerns will reach the common people, arousing anger and indignation in them. Therefore, they hire dozens of paid journalists, commentators and writers to spread myths and legends about their "philanthropy," "kindness," and "sympathy," At one time a tearful legend made the rounds of the American press about how a certain feeble old woman hobbled up totongwoodt the estate of the Du, Ponts, and, turning, at the entrance of the park, to an old man whom she. took for a gardener, asked him to dhow her the strange plants. This little old man supposedly seated the old woman in a mobile armchair and wheeled her for several hours around the lanes of the park, telling her all sorts of facts and fables about the Du_Pottorchids, rhododendrons, palms and cacti. The legend had it that the inquisitive old woman thus -57- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 did not recognize that the master of the castle, Pierre S. Du Pont, was wheeling her around the lanes. If the old woman had come to the gates of the hydrogen weapon plant at the Savannah River, a few minutes would have been enough for her to understand who and what the Du Portgentlemen are. Plunderer First Class :A Gigantic Octopus M. Andreyev A swift elevator noiselessly lifted the correspondent of Time magazine to the fourteenth floor of a large, glass and metal building located on the Great West Boulevard of Detroit. On the massive front supported by marble columns glittered the name "General Motors." The .correspondent enteTed a large, carpeted room finished in oak paneling. On a wall beside a writing table hangs the photograph of the President of the United States, animatedly conversing with Curtis, the president of General Motors. Alongside it hangs a comical drawing in which a father, seated in a chair, is telling a seven-year-old tomboy-son of "the great and free country of America" Where "anyone can become president." "I do not want to be.president of the United States" answers the,boy. "I want to become president of General Motors." Viewing this room, the correspondent experienced mixed feelings of usual respect, apprehension, and pride. Apprehension would not please the man who heads the largest concern in the world, nor would pride of one's missions. The correspondent was sent to interview Curtis, whom Time selected as "the most outstanding man of 19550 from among hundreds of other honorable buslnessmen. The interview was Short. The president of General Motors or GM, as this concern is familiarly and at the same time respectfully called in the United States, was Short-spoken. It was not necessary for him to persuade Or convince the representative of the press. Henry Luce, pub- lisher,ofliat and other journals, himself a great businessman, not only does not tolerate that his brother in business and class be spoken of disrespectfully in the press, but even takes steps in order that all Which Curtis says and has in mind to pay is published on the pages of his magazine in a most favorable light. In addition, and this is paramount, both Curtis and the correspondent know well that profite of American newspapers and magazines from advertisements are significantly greater than from subscriptions. More than $30 million is received each year from General Motors alone for this purpose. Advertising is the motive, power of trade, the straitjacket and means of bribery of the American "free press," which serves as a slave to monopolies including the richest Detroit, client, General Motors. - 58 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 ,A)12.2 Janaary 1956, Time declared that "the most outstanding man of 19p is .62-year-old Harlow HerbertCurtice, president of General Motors, the largest monopoly in the world, and recipient of the highest salary in the United_ltates -more than $800,0.00 a year. The best journalists, photographers, and artists of the Luce newspaper empire were coMmissioned j(p: demonstrate the greatness, dignity, and vast importance for America 4.4dAgaMA4k1Ad. of the president of GM and the concern which he heads. Noweverinot only.Time, but even all organs of the capitalist press of the UnAted:States have attempted to whitewash and ennoble the activities of American, monopolies in recent years. Not only the press is involved in this effort, but also those people who are paid by monopolies to di- rectly or indirectly represent their interests; government and political figures, members of Congress, economists, historians, jurists, and even , somp,ofthe leader! of American trade unions, Which is not strange. This whitewashing is done to conceal from the workers the conversion of American monopolies into a gigantic amalgamation and to veil their anti,national activities which are becoming even more criminal in nature. The blood and deprivation of the nation's masses, the suffering and tears cf millions of workers have created these vast monopolistic amalgams, tionsand,that invisible slicysoraper in which the "multi-millionaire club" is qaartered! Invisible because such an organization does not formally exist in the United States. American industrialists, with envy, and the people, with Abhorrence, attached the nickname "multi-millionaire club" to those,carporations and concerns Which amassed capital exceeding the vast plmcf_one billion dollars. . ,?., , , 40,991 the first malti-millionaire corporation appeared in the United States --.Korgan?0 "United States Steel,." which absorbed its com- petitors including "Carnegie Steel," one of the oldest steel companies. Soon after the first world war six malti-millionaire corporations appeared .1,mthe United States. The second world war and the course of preparing for a new war and the militarization of the economy, accompanied by the impudent robbery of the AmeriCan,people and the peoples of other countries, gave rise to newl,large-scale plunderers. In January 1953, the number of maiti- milli9naire:concerns rose to 66, and their capital -- to $173.4.billion. In 1955 there were 77 multi-millionaire concerns with a capital of $224 billion. P.941,Prel Motors, the largest military-industrial corporation in the world entered this "multi-millionaire club." Its capital at the beginning of 196.3 was estimated at the astronomical figure of $4 billion. Toward the middle of 1956 this had increased to $6.3 billion. -59- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 The corporation has 157 plants, of Which more than 30 are abroad. The tentacles of this gigantic octopus extend into 20 countries of Europe, Latin America, Asia, Africa, including England, West Germany, France, Pakistan, Australia, and other countries. In 1955, 624,000 blue and white collar workers were employed in its enterprises. In 1941, when the United States entered the war, the value of all products sold by this corporation was $2.4 billion. In 1955 it reached $12.4 billion and its gross profits before deducting taxes were $2.6 billion. For the first time in the entire history of the United States this concern earned a pure profit of more than one billion dollars, occupying first place among all other industrial concerns. The largest mechanized transportation concern in the capitalist world, General Motors manufactures not only automobiles, but airplanes, powerful tractors, airplane engines (including jet engines), railroad diesel locomotives, diesel engines for heavy machinery, mechanisms, and naval craft, road-building machines (power shovels, scrapers, etc.), mobile electric-power stations, refrigerating plants, and refrigerators, etc. . , The company organized a research group for work in the field of atomic energy to Which until recently, only the elect, the largest corporations -- plunderers Who jealously guard this golden source of enormOUs profits -- were admitted. Military orders or "defense" work played and are playing a special role in enriching General Motors as well as other large monopolistic amalgamations. In the United States this practice is hypocritically termed criminal use of the government treasury by monopolies, which is made up of the hard-earned pennies of the American people. General Motors' d4arg in government military orders during the second world war, the Sprean aggression, and the militarization imposed on the American people has varied between ten and twenty percent, depending on the proddings of its representatives in Washington and the market conditions of its civil- ian production. How did this, concern achieve its wealth and power? Perhaps the Curtices andtheir brothers in business actively achieved power and glory by persistent, honorable labor and legal means, as corrupt scribblers and bourgeois scientific and political figures reiterate? Bourgeois his- torians and economists, and especially the Curtices themselves have reluctantly revealed the secrets of their profit. The entire origin, development, and activities of General Motors demonstrate convincingly enough that the history of American monopolies is a disgrace and an Un? broken chain of crimes against the people of the United States and other countries. * * * Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Spiders in the Bank 4ung1es, dark jungles, where the strong devour the weak, Where no lawaxiits but force -- such is the kingdom of capital. At the end of the 19th and the beginning Of the 20th century., imperialism -- monopolistic capitalism -- finally matured and the struggle for profit acquired gigantic proportions. It became more violent and universal; methods of this struggle became more refined. Gigantic monopolies, whose supremacy is the main distinguishing feature of the monopolistic stage of capitalism, entered the melee. This struggle was led by well-educated but calculating, well- mannered .but unfeeling, cleanly dressed but with corrupt conscience, handsome and at the same time criminal and brutal gentlemen Who comprised the aggressive circles of imperialistic countries. In the first decade of the 20th century the industrialist William Durant waewell-known not only in the closely neighboring cities of Detroit and Flint, bat in the district as well. Carriages, vans, coaches, and bicycles manufactured in his plants were known far beyond the borders of the state of Michigan. The production of railroad cars was an espe- cially profitable undertaking. During one of the difficult crises Durant bought enterprises and shares of his rained competitors cheaply. Unsm, ployed European immigrants and negroes from the South consented to work for any beggarly wage, Which created very favorable conditions for the profit which Durant and his friends were seeking. In 1905, exploiting the grievous situation of the Buick Company Which, not long before had began to produce automobiles, Durant bought its plant in the city of Flint for $10 million. By this time the experi- enced plunderer began the merciless struggle, typical of monopolies, for supremacy in the automobile industry which, though young, still promised large profits. The Ford Company barely escaped falling into the traps arranged by Durant. Henry Ford was already on the verge of aggressing to sell his plant to him for $8 million, but the more cautious bankers, Whose capital he controlled, did not support Durant. Together with Ford, Durant utterly ruined four other automobile companies; Oldsmobile, Cadillac, Norsway, and Oakland. Almagamating them with the Buick company, he founded a new concern in 1908 -- General Motors. But When the concernos profits achieved considerable proportions, big-shot Detroit bankers came to replace the comparatively small plunderer. They acquired his concern by unceremoniously chucking out -blirill-starred competitor. Many crimes were committed by American businessmen in pursuit of profit. But their most terrible crime against mankind was war. During this-first world war, Durant became rich. His striving to regain General Motors increased proportionately as the profits of this concern grew. Durant founded a new automobile company -- Chevrolet, Whose capital before the, war reached $94 million, an enormous gam for those times. The straggle for General Motors entered a new phase. By enlisting the support of banks -61- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 associated at this point with the Du Pontplunderers, Durant again acquired a portion of the GM Shares by means of various intrigues. Joining to these Shares the capital and plants of the Chevrolet company, he stood at the head of a mach larger concern, whose capital and profits galloped -Sharply upwards during the First World War. However, attracted by the prospect of unprecedented profit, still greater plunderers of the dynamite- powder clan of Du Pontfollowed Durant and General Motors. They lay in wait for Darant during one of his shady operations in the jungles of big business. Making use of the crisis of 1920, they forced him to sell his shares to ,the businessmen of Du Po/Ade Nemours. Owning 23 percent of the General Motors shares, they began to dominate this concern. The remaining Shares were diaper sed among a great-number of companies and individuals. Thus did the General Motors monopoly grow fat in the brutal struggle with its competitors, swindling, profiteering, resorting to unlawful actions, and cruelly exploiting the workers. In 1927 its capital was $1,227 million, and in 1956 constituted $6.6 billion ($10 billion including branch enterprises). The profits of General Motors rose from $154 million to $2.6 billion in 1955. With, the growth of the GM coneern?s financial power, the scale of its intrigues in the United States and abroad and its impudent inter- ference in the economic and political life of countries increased. The number of companies absorbed and forcibly annexed by General Motors began to increase by tens. In 1890 the United States Congress passed the so-called Sherman Law, supplemented later by "antitrust" laws. But capitalism would cease to be capitalism were these laws not constantly violated. Since 1952 the large monopolistic sharks swallowed on the average of 800 small companies a-P.011.year, ensuring them a dominant position in related industrial fields. By ruining, ousting, or subduing other competitors, General Motors now became a monopolist in the manufacture of motorized transportation. TA 1921, General Motors manufactured 12 percent of all motor vehicles produced in the United States. More than 50 percent of this production was manufactured by Ford Motors. In addition, there were another 86 small companies engaged in the manufacture of automobiles. Their share [of the total 1921 motor vehicle production] comprised 33 percent. In the first half of 1956 General Motors delivered 54 percent of tall] motor vehicles. After a desperate fight, Ford was compelled to be satisfied with 27 percent, while the small automobile manufacturers ceased to exist. General Motors graciously conceded to the activities of three other com- panies. Nineteen percent of the motor vehicles manufactured in the United States remained their Share. They were left only in order that lawyers and legal advisers of GM could Jesuitically repudiate the charge of its ruined competitors that this octopus-.concern was a monopolist. -62- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 The patter of legitimate plundering and destruction of concerns was handled in General Motors= one, "scientific basis." A special section eiisted in. its Management Whose sole purpose was to study the Yields of profitable application of capital and to discover ways and means of invading these areas. Highly-Paid economists, engineers, and. lawyers from this' section developed new methods of usurpation. ,The morale and lawfulness of these experts was unquestioned: every means is suitable in the Struggle for profit. It is_interesting that in the course Of ten years (from 1928 to 1939). the then-vice-president of GM, Charles Wilson', directly supervised this section. His activities in this field Vital to the concern were so fruitful that he later became president of General- Motors, 0, E. Wilson was Secretary of Defense for five years Row did Charles Wilson and his section operate? They Somehow directed the attention of the boss 'of General Motors to the-advantageof the diesel locomotive over the steam engine. Thus', when technical progress. premised great profits to busineasmen," they Were for technical pregreil, 4hi1e such "trifles" as ruining plants Which competed with them did not worry them. What were laws of ethics and simple human conscience to them: They paid no attention to this. This is how Wilson and his section operated. In accordance with a plan of sabotage painstakingly conceived by them in 1929 and 1930, 'two petty companies which manufactured a small number of diesel locomotives ceased to exist. In 1941 General Motors turned Out 13 percent Of all diesels. In 1956 the trade-mark of CM Shown on 76 percent of all diesels manufactured in the United States. ,Oho-hoW. the General MotOre Stockholders thanked fortune that they lived in this "free" capitalistic country where -workers' toil, technical progress, initiative, and war are converted into profits for those Who Own capital. Is it not the "great" mission of the no less "great" - America to chastise those atheists outside the United States who term these Miraculous conversions crimes? If these lines ever catch the eye of some well-educated gentleman Of General Motors, that is, our commentary on the feelings of stockholders of this corporation who dream of a:"great mission," he will respond with a curt, angry "That's ridiculous!" Curtic,preeident of GM, replied in just such a manner to demeiderably more inoffensive statements of American Congressmen and associates of the Department Of Justice in WaShington,:when they eautiously questioned him concerning' certain shady aspects of the corporation's activities and asked, surprisingly enough, "Doesn't this disturb you?" It is very likely his answer would be "Red propaganda:" In this ease the gentleman from Well Street might be reminded of the Statement of that "famous pilot and businessman" Rickenbacker Who was quite popular in the United States, On 19 December 1955, in glorifying the greatness of General Motors at a press Conference, he came to the -following "profound" conclusion: "Christianity inspired in mankind a hope and faith in freedom. Without Christ America could not be, Our country Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 is founded on a belief in It was predestined that we, Who possess the God-given advantage -of freedcm_anci the ability to: produce practical miraclOR With the Ata of the, free enterprise system, must be. the,hope of mankind, When the time comes, we must have the moral and physical strength to point the Wel' to freedom and peace for all peoples of the universe. This is the mission Of America 444 .her_leaderW_ Monopolists and their apologists have carried,into politics the principle of "he who does not deceive does not sell," 'which is broadly accepted in trade, For this reason, when speaking about freedom,' they always have in mind the freedom of capitalists to plunder the workers. They term free enterprise that system under Which, the large monopolistic plunderers make short work of the smaller companies with impunity. As tar as the,AmeriCan way_ of ti.freedom" is concerned, all the people of the world know th.044 translated into the language of facts, this means cruel a44,elrer7innreasing exploitation of workers, a policy of militarism and imposition. Of fascistMethede, saversiyQ activities against peoples of: other countries, and preparation for war. ".11. Government of Bankers for Bankers", the hills near the small peaceful town of Gettysburg, in the southern part of the state of Pennsylvania, still remain those remnants which are guarded as relics of the glorious past of the United States, remnants of the decisive battle in July 1863 between forces of the Northern states and the armies of the Southern slaveowners. The battle ended in the defeat of the Southerners and the victory, according to Marxts determination, of the system of hired labor over the system of slavery. On the site of the tattles, on a large stone slab, is hewn the famous speech of the then President Lincoln in which he solemnly declared that a government of the people, elected by the people, for the people, Shall not ,Perish from the face of the earth. !rasa progressive political figure of his time. In 1865, through the initiative of Marx and ngels, the General Council of the First International sent salutations to Lill.0O3.11 in connection With his re-e100.4.0,4-ge.13resident of the United States. However, the_peopleos government of Which Li.ncoln_Spoka or, what is truer, dreamed about, did not exist in theUnited States..., The American poet Walt Whitman, who lived around the time of Lincoln, depicted the political figures Of his tiswand their relations with rep- resentatives of business; "People who secured government poste, robbers, rich men, malefactors, creatures of the president,.gossips, organizers of Pre-electioncaMpaigns, bowlers, grafters, lobbyists, parasites, politicians, motley dressed, with gold chains forged from the peoplels money, innate tradesmen of freedom..." - 64 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Thls was' in the 19th century; but in the 20th the Unsightly pictare of political dispositions painted by this great poet bedame-still gloomier* In the report of the Central Committee of the OPSU to the 20th Party Congress, N. S. IhradhChev stated that "monopolistic capital directly Sab- ordinates government organs to it by sending its representatives into it and by forcing the government Ito regulate' the economy of the country in the interests of monopolies." ' Even before the first world. war, on 13 Pebraary 1913 at article by Woodrow Wilson was published in the Forttightly Review on the eve of his -assumption of the post of President of the United States, At the height of a bitter controversy, Wilson made the following interesting admission: "The real masters of the United States government are the amalgamated bankers and industrialists. This is apparent from every page of Congress' decisions and from all meetings in the White Rouse._ the people from Whom the government seeks advice concerning its policy are the large bankers, industrialists, and leaders of the trade, railroad, and steamship com, panies. The United States government at the present time is the off- spring of monopolies. Senator Morse recently expressed this opinion concisely bat no less eloquently. Paraphrasing the words of Lincoln, he said that the Eisen, :hower government is a government of bankers, selected by bankers for bankers* In November 19559 senators in one of the commissions of the American Congress demonstrated unusual spirit. They set about the "study" of General Motorst,as Senator O'Mahoney announced, not without bragging. The reasons for this Zeal will be explained. below0 At this point it is teceisarY to cite one of the statements which Characterize the relation- ship be#Teen te.:government and. Imm0es. 'A cOrtaita Kuirich Etheodore KinggtQuirm? presi- dehtteAtelislaitAk equipment Corporation, voicing the apprehension Of small companies for their profits, on which large monopolies were encroaching, angrily declared that the decisions of owners of sach concerns as General Motors and United States Steel "could determine the complete policy of the country in defiance of the people and their representatives." Thi.s9 of course, is an open secret. One can only be astoniehed at the shamelessness of the American press and the government and political figurei who dare to 'dispute the generally known facts which dhow that financial and. industrial magnates, not satisfied with using dummies and professional politicians, themselves enter all organs of government administraUon. Lists of members of the last three governments serve as peculiar _ gaidee-to AMerican monopolies. The affiliatiOt of the President 'Ifidth one or another party plays no, role whatsoever.- Presidents come and go, bat the monopolies remain in power. As a rule, the composition of the - 65 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 United States government only reflects the existing correlation of forces between different groups of financial capital. In 1956 members of the American government occupied posts as directors and had financial connec- tiona,WiW85 corporations. which had A total capital of more than .20 billion dollars* The "new" government of.Bieenhower, established in Jatnary 1957, hardly differs from its predecessor.- ,According to the latestdata of the, eminent American economist V. Perlo, as cited in his new book, 150 of the highest posts in the present apparatus of the United States, government are occupied by capitalists, 14 by higher military men, and .0B by lawyers and professional politicians Who have proven them- 84*(313, in the service of capital. ? At the Service, of Business Every four years9 in connection with the election of the President and the Congress, the leadership of the Democratic and Republican parties arrange noisy spectacles -4 electoral campaigns. The foreign and internal policies of,both_partieeis practically identical* The leaders of both parties represent the American monopolies. During electoral-campaigns the struggle between them for posts in the government, for, the right to make advantageous use of the government apparatus and the Congress in their coin intePeete* is in,tenaifi!04, - 'Baying become politicians, businesemen.convert the various departme , into branches of their corporations and the government into a business:, club, or rather into a board of directors of a large company, and the American .taxpayers, into providers of the capital for their companies. This concept is quite openly expressed by the millionaire Sloan, who occupied,thepost of chairman of the board of General Motors continuously for 20.yeare until April l956! Sloan defined_the tasks of the _"peoples" government of UPA.44- States in the following statement. "Our country*" 4Sdeolared,_llisprimariiy a business society g as go the affairs of the, businese 1,7911,04 s9 -go the,effiars of us all. Our government is partly the general staff ,of Aur society and thus for business also*" In order te,enrge,themeelves profits, the bosses of General Motors took steps to place this,general staff in tizeir hands. ts In 1940 when the smell of gunpowder and unprecedented profits was in the, air? the_Geperal,Motorscorporation was so powerful and influential that .1 demanded 1,no1ilsion of t A. representative on the government commissioli,on defense, :upon which the dietribution of military contracts ando_consequently, profits depends The president of the corporation,. Knudsen, went to Washington. As a result of its "patriotic" activities during World War II, General Motors received government orders for the vast els of $15.6 billion. , Attertheyar, theDujpqnts and General Motors began to take over the most important elements of the United States government apparatus. In. 1952 Arthur Summerfield, head of the Summerfield-Chevrolet firmyhih was, - 66 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 the, largest division of General Motors in the sale of automobiles, was promoted to chairman of the National CoMmittee of the Republican Party. Of the two aspirants to the post of president at the 1952 conven- tion of the 'Republican Party, Taft and General Eisenhower, the Du Pohts and General Motors preferred the latter. The son of the president of GM, Wilson, headed one of the committees for the election of Eisenhower. He was supported by the vast empire of General Motors with its divisions situated :in a majority of the United States. Wilson, the president of GM, and. his assistants played an important role in promoting Eisenhower's nomination for the post of president daring the Republican Party Convention. It is quite astonishing then that in January 1953 Wilson was appeinted Secretary of Defense and SuMmerfield -- Postmaster General? Douglas McKay, director of a division of General Motors in Oregon, was confirmed as Secretary of the Interior, and Robert Stevens, former director of this and other CorpOrationb L.- the Secretary Of the Army. Roger Keyes, a former vice-president of General Motors, became Assistant Secretary of Defense. When GM was assured of profitable government contracts, Keyes, who retired in May 1954, returned to his office in General Motors, for the government really had began to resemble a Washington division of General Motors, What Is Good for the United States The Department of Defense and other commanding heights of the'govern- ment-apparatus of the United States were controlled by the General' Motors concern; but not without difficulties.' It was not because this operation was illegal, but because it was oondudted in the interests of this monopoly and not the masses of people. The difficulties were engendered by the fact that many other concerns besides General Motors reached for ,..the government treasury and power. This was demonstrated with great clarity when the United States Senate appointed Wilson secretary. This appointment was a simple formality for Wilson. The enormous capital of General Motors was quite a sufficient recommendation for this important post. However, senators connected with those firms who had been dealt with unfairly in the distribution of military contracts timidly and respectfully raised the question concerning the legality of Wilson"s appointment. Back in the good. old days when monopolies were still not so all-powerfal, a law was passed which forbade Persons in government service from doing business with those companies in which these government offi- cials had capital invested. The question posed to Wilson was quite timely. Everyone knew that General Motors had long used the Department of Defense for indrea6ing its own capital. Prom the moment of Wilson's appointMent'it waS Clear- that-he Owned aock in General Motors valued at-least $2.5 million. In addition, he had invested money in theDu,PontNational Bank of Detroit 67 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 and also in a company exploiting oil-bearing land in Texas and Colorado. It also became,well-known that his wife's capital was invested in a number of companies, including General Motors. This woman also acquired "In all only" 7,500 shares of the Greyhound Bus Company whose lines cover a major portion of the United States. - The question of Wilson's appointment was a polite hint that General Motors and Wilson :himself were using the government treasure in their own self-interest. Nonetheless, the punctilious senators were still able to e moderately reconciled, with this factq quite recently former Attorney General Biddle lamented the fact that Americans "forget what public dis- lionesty always creates." The senators Were more indignant over the fact ?that GeneralMotorvwas 'W) high-handed in driving its competitors away from the government feed box. Voicing their interests, Johnson, leader of the ,Democrats in the .Senate? declared that "no one privately owned enterprise is more important to the Department of Defense than General Motors. On the,other.han4 no One government institution is more im- portant to General Motors than the Department of Defense," Wilson decided that the senators' hints were improper ahd that the parliamentarians must be put in their place. In the beginning he menacingly declared that he intended to retain his stock. It was implied that he reserved the post of Secretary of Defense for himself. The senators stood their ground. The incensed Wilson hurled a catch-phrase at_a?meeting of the commission: "What is good for General Motors is also good for the United States." Who knows how this Whole affair would. have. ended had.19.1son not announced that he_would sacrifice and sell all his ahares. It remains only to point out that he recovered his share holdings with interest as soon as he left the Pentagon. The satisfied senators approved Wilson as secretary. The appreciative Du Pont3estalaiShed a.life "pension" of $40,000 a year for him as com- pensation for his "sacrifices" and "distressing experiences." In addition, by agreement with General Motors, he retained the right to a bonus of the vast pam of $800,000 for three years. Wilson did not remain under obligation to the bosses of the concern. By September 1953 General Motors had sliced off a thick piece of govern- ment pie. The Department of Defense (Wilson) signed a contract with G14 (friends and colleagneeof Wilson) for $204 million for the delivery of medium tankg, to the American Army. Following this, the government en- trusted General Motors with the production and delivery of army trucks. The concern received $85 million more. And the contracts kept growing, 4 one point General Motors declared, not without self-satisfaction, that 4.19q (4e, firSt,year'of Wilson's "selfless" activities in govern- ment) its gross profits (before paying taxes) amounted to $1,716,341,000. - 68 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 In that same year 557,260 white and blue collar workers were employed at enterprises of this concern. Prom each worker the company received a gross PrOfit of $3,080. A Kowtowing Revolt An unusual event took place on 8'November 1955 in the building of the United States Congress. Many correspondents of American and foreign news- papers, photographers, cameramen, associates of radio and TV broadcasting stations, government figures, members of Congress, and representatives of the largest industrial Companies and banks crowded the halls. This day marked the first meeting of the long-threatened commission for "examining the activities of monopolies." Some people expected a sensational expose. At last, they said triumphantly, a commission is engaged in the study of the activities of that gigantic monopoly, General Motors, the largest military-indUstrial concern in the world. Ctrtice, president of the con- dern the 80-Year-old Sloan, chairman of its board and one of America's richest businessmen, two first vice-presidents, 14 "ordinary" vice-presi- dents, and experienced lawyers and economists of this monopoly were invited to appear before the commission. -.People uninformed of the secret interrelationships of this monopoly with the government and Congress, naively believed that the day of reckon- ing had come. There was no end to the intrigues and crimes of General Motors. The concern's guilt could easily have been proven on every point of the charge: the seizure of government posts and their use for personal enrichment; unlawful establishment of a monopoly in a number of fields of industry, displacement from these fields of other companies, and their ruin; exploitation of the difficulties of other countries to penetrate their markets and force out local companies; criminal connections with Ritlerite Germany; use of the second world war and the war in Korea for personal enrichment; complicity in formulating a policy of militarization and imposition of fascist methods upon the United States and use of this policy for purposes of profit; bribery of the American press by means of advertisements, etc. A special charge could have been made that the con- cern had Used a significant portion Of the value produced by the workers of its enterprises for purposes of personal enrichment, and that the con- cern was waging a systematic attack on the elementary rights of workers through its use of the government apparatus. The Congressional =mission began its work. Senators 00Mahoney, Wiley, and Langer made their opening speeches before the objective scrutiny of the movie and TV cameras and photographers. Their statements, however, immediately Showed that the long-planned "investigation" of the activities of General Motors was a Shameful farce. The address of Senator OlMahoney, acting chairman of the commission, had a strange effect. One would have thought that the charge was being impuned against the commission -69- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 and not against General Motors. The senator began by refuting reports in newspapers that the concern would be made to answer. He assured its directors that the commission was convened merely to study and not to hold an inquiry. He declared that there would be neither defendants nor accusers at meetings of the commission. The remainder of his speech was reminiscent of a report of the chairman of the board of UM on the successes of the concern. At the end of his Address 01Mahoney rebUked the company for its monopolistic position in several fields of industry and for dis- lodging its competitors. The commission met for more than a month. Specially selected IIwitnesses" appeared. They spoke on Whatever they liked, but not about the lawlessness of General Motors. ,Representatives of trade unions were not invite0o appear before the commission. A report on the results of the "study" was published in April 1956. The mountain bad. brought forth a mouse. The suggestions of the commission represented no danger whatsoever to the concern. It recommended that the question of restricting the expansion of activities of this monopoly be again studied and examined anew. The American press maliciously noted that the kowtowing revolt was undertaken by members of Congress manifestly for pre-election purposes, to fool voters, and we add, to create the appearance of contending with a big monopoly. For these same purposes the government joined in "battle" with General Motors. The speech of Brownell, Attorney General of the United States, Which loudly proclaimed that the General Motors monopoly had been made to answer was advertised in every possible way before the 1956 elections. "At last:" Americans exclaimed. But this time also dis- appointment befell them. Proceedings were actively begun against the corporationc but only for the fraudulent seizure of motor bus manufac- turing, for one-thousandth part of all the lawlessness Which this monopoly had perpetrated. It would also seem that the demands of Attorney General Brownell Were ridiculously modest. He wanted neither the return of capital to ,ruined companies, nor the imposition of a fine, nor any other punish- ment,. Outwardly currying the favor of the monopolistic plunderers, Brownell turned to the corporation with the loyal appeal that it reduce its Share in the manufacture of motor buses from 85 to 50 percent. The shyness which the Attorney General displayed with regard to General Motors, is completely understandable. He well remembered the history of his assistant who, whether as a result of remorse ox' because hehadulot unravelled the simple question of Who his boss was, came out, nevertheless, with a number of quite reserved "friendly warnings" addressed to General Motors in connection with its violations of laws on monopolies, In answer to these statements it was sufficient for GM - 70 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 president Ourticeto hurl bitterly a single word, "Bidiculoust" The 44eietant Attorney General vas relieved of his responsibilities and sent far away to the West as a judge. Let us keep in mind that the Chief activity of the Attorney General of the American government is reprisal against and. the persecution of workers and progressive organizations and figures and not monopolies and the reverend gentlemen of corporations. In its almost 50 years of existence General Motors was brought to court only five times for violation of anti-trust laws; in three of these eases, proCeedings against it were discontinued. In capitalistic America GM can calmly continue its activities with fear that its crimes will be discovered. A Conspiracy Against the People Dhr1.n4;the second world war Downey, a representative of General Motors, cynically declared that mwar is a struggle for control over the world. It undoubtedly represents one of a series of wars, the first of which occurred 1311914.1918. The Anglo-Saxons must rale the world." ,Along with the directors of other monopolies the businessmen of General Motors bear a portion of the responsibility for unleashing the second "mad war. The criminal ties between the Hitlerites and the directors of this concern were uninterrupted right up to the beginning of this war. In 1937, Sloan, representing the board of directors of the concern, together With Senator Vandenburg. of Michigan, Who in the United States is called the Senator -.roln General Motors, and other figures conferred with the Hitlerites concerning important economic and political questions. A year later, after Musaich,Knudsen, former president of the concern, sent Hitler a congratulatory telegram. In 1938 Hitler awarded a medal to Mooney, vice-president of General Motors. As for back as 1929 the concern estab- lished its control over the German automobile company Adam Opel. Thus, it happened that the production of half of all automobiles manufactured by fascist Germany before the war was in the hands of GM. Apparently, considering this the American government in 1949 invited Charles D. Wilson, president of the corporation, to take part in the work of the commission on reparations. With suspicious unanimity the commission came to the conclusion that it was 5inexpedient" to dismantle German military plants in which not only Wilson and his concern, but also his partners in big business were interested. After the second world war the monopolies dictated to the American government an aggressive course of preparation for a new war, for artifi. eta]. aggravation of international relations. This was done to insure vast Profits from military contracts by again militarizing the economy. or these very purposes the American monopolies prepared and unleashed the war in Korea with the appearance of the first signs of economic crisis in 1948-1949. Approved For Release 2001/07/28 : CIA-RI5PA-6-0756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Rahn Tucker, the chief economist of General Motors declared, fliere-it,not for the Korean war, we would already have ;altered difficult The 19 May 1953 issue of United States News and World Reoort etatedirankly, 'Business activity will not weaken because each warning lignal can be used to increase expenditure of defense appropriations within tbe country and on foreign aid abroad...Bit in the end shooting is the result of foreign policy." IG , adh time =American or Korean boy dies in Korea the cash box ring* on Well Street." Thus did the American film actress Karen Morley, Whose name was entered on the blacklist because she dared to speak the troth, express the opinion of the progressive people of America toward the war in Korea. Alie_cash box in the office of Charles Wilson's concern rang more often than.the others. Of the companies working for the war, General itOorg Again captured most of the contracts. During a three-year period (19504953) it received contracts for more than WM= billion dollars. 1110= and. the concern which he represents became quite familiar wit4-0;Uacting profits by such a method. To receive greater profits, it was necessary to obtain more military contracts from the government treasury. For this it was necessary to juggle the military budget throats* Congress, and if there was no war, then a budget for "defense.' Members of Congress would not object. If the taxpayers Objected, it would b. neceseary to intimidate them with a fictitious 'threat of aggression' on_the part of the USSR and China. And if words were not effective, the monopolies of the United States, through their servitors in American Amtelligence, would arrange provocations not unlike the Hungarian situa- 'tion.- -And Wilson is doing his best. In 1954 he declared that "militant Communism is a military, political, social, and economic threat.". In 1955 he threatened the American man in the street with the statement that the Soviet Union, in his words, represented "the main threat to peace throughout the entire world." In 1956 Wilson, =confused by the complete lack of logic, declared, "The United States in the next years intends to retain the present size of its Armed Forces and provide them with the best weapons, in spite of talk about lessening international tensions.' Incidentally, the, number of United States troops in the middle of 1956 was 2,285,000 soldiers and officers. This is the largest Army the United States has maintained at any period in peace time. Wilson achieved new heights of hypocrisy and dissimulation in 1957. Trying to convince the American taxpayer of the "necessity" of voluntary sacrifices in connec- tion.with Congress? examination of the military budget, and the approach of actual military expenditures to $43.5 billion, he declared that 'events in Hungary and the Middle East show the correctness of the decision to - 72 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 maintain large armed forces over a long period." Preparing provocations in Hungary and shutting their eyes to the aggression of their partners in the Middle East, American ruling circles are forcing Americans to pay for the profits of monopolies. Such is the role which the General Motors corporation and its representatives in the government of today's America play in the United States., The Financipl "Empire" of the Mellons I. Lapitekiy On that very cold wintry day in the beginning of 1953 when the Republican Party again returned to power in Washington after a twenty-year interruption, a little-noticed but quite Significant event took place in the separate, massive, granite building of the Treasury Department on the corner of 15th Street and Pennsylvania Avenue in Washington. The portrait of Andrew Mellon, which had hung for 20 years in a reception room, had been moved over to a more prominent spot. Hy instructions of the new Secretary of the Treasury, George Humphrey, it was displayed in the office of the Secretary. The new Secretary knew What he was doing. He was director of more than 30 industrial companies and chairman of the board of directors of the Mellon coal concern,Pittsburg Consolidated -- one of the largest coal companies in America. The re-positioning of the portrait was sym- bolic. It bore witness to the firm resolve of millionaires of the new government to follow the methods of the head of one of the largest finan- cial-industrial empires of the United States, Who ran the American treasury under three presidents: Harding, Coolidge, and Hoover. Andrew Mellon, who held the post of Secretary of Treasury for ten years at a stretch, admittedly created "standards" -- until recently con- sidered. classics -- of manipulating the financial and taxation policies in the interests of the largest monopolies of the United States. The American publisher F. Landberg wrote this about Mellon in his hook, Sixty American Families: "Immediately after the inauguration of the President (Harding), the piratic team of poker players, seizing the ship of state, began a struggle for the strong-box with the faultless instinct of burglars searching for family jewels." Historians have calculated that during Mellon's tenure as Secretary of the Treasury, income tax collected from millionaires and billionaires was reduced by $6 billion. Mellon perfected the art of shady intrigues which the Treasury Departments Skillfully developed during his tenure in office. Approved For Release 2001/07/28 : CIA-RD 3 - P765-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 , Bow did the Melons enter the tight circle of rulers of modern An04.00, and. how was the dynasty of aluminum kings of the United States created? The Melons laid the basis for their fortune by speculating in real estate ii Pittsburg and its environs. Then their capital entered banks and subsequently the coal, metallurgical, oil, aluminum, electrotechnical, and glass industries of this rapidly developing industrial region. Merciless exploitation of American laborers and of the Cheap labor of immigrants, especially from countries of Eastern Europe, wars, and crises enriched the Mellon family. Dozens of banks and vast land tracts still comprise a significant part of the Mellon wealth. it the largest profits are made in the large scale monopolies controlled by the Mellons, such as Aluminum Company of America (ALMA), Gulf Oil Corporation, Westinghoase Electric Corpora, tion, Koppers and Company, Jones and Laflin, and dozens of other concerns, truets and corporations in the coal, electric, gas, copper, chemical, and aircraft indastries, and also railroad transportation, municipal services, the insurance business, etc. By the beginning of 1957 the financial group of Mellons had amassed capital amounting to $10.5 billion. A. progressive American newspaper once carried a caricature: a fat gentlemen calming a crying woman: "Someone mast bear the sacrifice, madam," he said. "In time of war we lose song, in time of peace -- profits." War and its preparation always brou&t enormous profits to the Mellons. /t was not accident that the capital of the Mellons was invested in fields of industry tied with the production of weapons of war -- in the manufacture of aluminum and steel, in the production of oil, electri- cal machinery building, atomic production. The basic modern industrial empire of the Mellons is ALCOA, a monopoly in the strict meaning of the word. It was able to seize control of the sources of raw material (bauxite) and the patents to the basic production process of this important field of industry. For 50 years ALCOA was the sole supplier of aluminum in the United States. The first world war led to a vast increase in the demand for aluminum. ALCOA. did not sail to exploit this demand. In the period of 1914-1916 it tripled the price of aluminum. The war gilded Aura, that is, the Mellons with gold. After the war ALCOA paid out as a dividend one thousand percent of:its initial capital. Thin company, which held controlling shares in many large electric power companies, provided itself with cheap sources of electrical energy needed for production of aluminum. - 74 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 The sphere of ALCOLIs influence extended far beyond the limits of the United States. It enveloped Canada (the entire aluminum industry) and the bauxite mines of countries of Latin America, Britain, Dutch Guinea, and the Gold Coast. In addition, ALCOA controls many trusts and enterprises in. France, Italy, England, Germany, Switzerland, India, and other countries. Autu rules in world aluminum market. It closes cartel agreements with all large producers of aluminum in other capitalistic countries. At one time it signed such an agreement with the German concern I. G. Farben. This gave the Mellon monopoly the opportunity of seizing the patents for the production of magnesium and its alloys. nou gained con- trol over the Dow Chemical Company -- the sole producer of magnesium in the United States. The second world war, the postwar arms race, and the war in Korea brought now riches to the Mellon aluminum monopoly, which is closely connected with the aircraft industry and the production of radar equip- ment in the United States. These fields of military production now yield the greatest profits. James Kindalberger, representative of the aircraft company North American Aviation philosophized several years ago, "One can compare an airplane to an egg. It is necessary to sell it while it is fresh..." So reason the owners of ALCOA, which sells more than three-fourths of its production to the aviation industry. The profits of the aircraft industry monopolies in the past years acquired such incredible proportions that in 1956, in the United States, demands were heard to investigate the sources of these superprofits as well as the suspicious activities of a large number of retired generals and admirals Who migrated from different military departments into offices Of aircraft corporations. Speaking before one of the Congressional subcommittees, William Allen, president of Boeing, the largest aircraft monopoly, declared plainly, "Congress must not ponder whether we are earning too much; it must be concerned whether we are earning enough..." And the subcommittee agreed with him. Despite lessening of international tension, appropriations for military needs in the United States were again increased in the 1956/1957 budgetary year. United States News and World Report again declared tri- umphantly, "The Armed Forces are the largest business of America." The enemies of disarmament and the advocates of maintaining international tension again won the upper hand. Approved For Release 2001/07/28 : CIA-RI5Z-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 One can judge that cOnclasion the directors of Mellon's ALCOA drew from all this, from the statement of its president Wilson, Who reported in the summer of 1956 that his company intended to Spend $600,000,000 in expanding its production during the next five years. Of course, nom is basing its plans on continued vast military appropriations and very profitable military contracts. Exploiting its monopolistic position, ALCOA continues to inflate its production prices. It instituted a regular price increase on aluminum in March 1956; two months later its president spoke of a new price increase. '"But in the United States a special law against monopolies exists -- the so-called Sherman Antitrust Law," says a reader. "In such a case how can ODA -a tYpical monopoly as ALCOA continue to operate with impunity?"' Actually, the monopolistic practices of ALCOA have acquired ea& a scandalous nature and caused so mach harm to the national interests of the country, that in 1937, under public pressure, the United States goVertkett undertook "antitrust" judicial action against the aluminum nempany. But this "action" is dragging out up to the present day. In 1954 the court affirmed that ALGOL is a monopoly; in 1956 the government confirmed that despite the appearance of several small, new companies, ALCOA as before rules the aluminum market. The Wall Street Journal Trete in 1956, "The officials conducting the antitrust action for Uncle Sam (i.e., the United States government) decided that they needed five more years to. determine how to deal with the Aluminum Company of America. The investigation of the ALCOA action was again postponed, this time until 1961. This is the way the "antitrust" law "operates" in the United States. The Melons began to demonstrate an interest in oil at the end of the last century. The Mellon oil company, Gulf Oil Corporation, was born and raised in the bitter competitive struggle against Rockefeller's Standard Oil. Golf Oil acquired oil deposits in Latin America, Canada, the Near Bast and the Philippines. It penetrated into Italy, Spain and Denmark. Gulf Oil actively interferes in the internal affairs of other coun- tries. One of the greatest scandals of its time was the gross inter- ference of American ruling circles in the affairs of Columbia for the purpose of ensuring the transfer of rich oil concessions in this country to the Mellon Oil trust. Ear obvious .purposes of extortion, Ameridan bankers introduced a, financial embargo against Columbia which provoke a political and economic crisis in this country. They forced Columbia to adopt a new law on exploitation of oil deposits Which allowed the Mellon condom: to obtain the right to work the largest oil deposits in the world for 50 years. Approved For Release 2001/07/28 :-CIVREIP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 The activity of Gulf Oil outside the United States was especially intensified after the second world war. It demanded a re-examination of Brazilian laws to facilitate seizure of Brazilis oil industry. In this period Gulf Oil obtained a concession in Portugese East Africa involving an over-all acreage of 45,000 square miles, and in 1956 -- a concession for prospecting and extracting oil in Bolivia covering a territory of 1.6 million hectares for a period of 40 years. Gulf Oil cruelly exploits the workers of many countries at its numerous enterprises situated through- out the entire world, especially in the Near and Middle last and In Latin America. It invariably encourages feudal-serf relations and the most reactionary forces. These serve to support it and help to extort profits. The Gulf Oil Corporation is an active participant in the interna- tional oil cartel in which American monopolies run the show. Joined with four other American and two English corporations, the cartel actually controls all extraction of oil in the capitalist world outside the United. States. According to data in Busin_x_i_al_kiee, daring the six:postwar years these seven corporations received $12 billion in super-profits from their foreign operations. (Super-profits, as interpreted by the magazine, is that surplus over the profit the corporations would have received had they invested capital in their own countries.) It is difficult to find a field of defense industry in which Mellon capital has not been invested. The atomic arms race and the prodaction of mass destructive weapons have brought it even greater profits. ,The Mellon-Rockefeller Westinghouse Electric Company wages a persistent struggle against Morgan's General Electric for control over the atomic industry. This large-scale (second to Morgan's General Electric) American electrical concern manufactures more than 8,000 different types of articles, valued generally at one and one-half billion dollars a year, in its 87 plants throughout the United States. Among these products are equipment for atomic plants, jet engines for the air force and the Navy, and many other military products. "We place the highest priority on atomic production now," says president Price of Westinghouse Electric. In this connection, the magazine Time remarked that "atomic produc- tion is_the favorite child of Price. It grows not by days but by the hour..) The owners of Westinghouse, as well as other monopolies who profit from atomic and hydrogen weapons, impede the use of atomic energy for peaceful purposes not only in their own country but in other capitalist states. They are successful in this in particular, because over the past decade concerns controlled by Morgan, the Mellons, the Bockefellers, and Du Pont, lad their hands on the most important deposits of uranium in the capitalist world. - 77 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 rae.Mellons are seizing the command positions in the industry of many countries. The Westinghouse concern owns shares of the West German electrical mamhine7b4ilding trust of Siemens. After the war it bought Many Shares cheaply of the Japanese concern of Mitsubishi and encroached on the4ndastry of Italy and other West Nuropean countries. The Westinghouse _concern has become interested in a most direct way in maintaining the American occupation of the Chinese island of Taiwan. Westinghouse contraeover thirty electric power stations there. In order to make sure that the flow of military contracts does not cease, American monopolies need tension .in international relations. Per many years the Mellons have liberally financed a number of newspapers in Pittsburg and other cities of Pennsylvania, dictating a propaganda line to them. They seized control over a whole series of newspapers, magazines, radio stations, and television centers outside of Pennsylvania. Pahl Mellon, one of the representatives of this dynasty, acquired Aa large number of shares of the magazine Newsweek, which occupies itself with systematic propaganda for war and malicious slandering of countries of the camp of peace and democracy, Many Mellon monopolies directly own means of propaganda. The Westinghouse concern alone owns six large radio stations and two television stations. The financial empire of the Melions is powerful. But the workers' movement, which is growing and becoming stronger in the bitter skirmishes with its, mortal enemy -- monopolistic capital, is shaking the Mellon empire and other oligarchies of big capital to their foundation. 5* * A dismal court building in Pittsburg. Judges, lawyers, the prosecutor. The accused speaks. The speaker is a courageous man, deeply convinced in the right of his action. He does not defend himself. He is on the offen- sive, exposes, and accuses. III am a member of the Communist Party," he save, "the party of the working class, because I believe in it with all ay heart." These are the words of Steve Nelson, leader of the steel workers and miners of Pennsylvania. Nelson has spent many years of his life struggling against the yoke of monopolies. His childhood was spent in need and deprivation. As a youth, he worked as a carpenter and Later , as steel worker in a plant of the Jones and Laflin company in Pittsburg, where he fought for the creation of a trade union with other comrades, mmarter of a century ago, Nelson, together with a group of young unem- ployed workers, was arrested by police for demanding work and bread. Five days later he again marched in a number of demonstrations staged by the unemployed. These were black years of crisis, mass unemployment, Approved For Release 2001/07/28 :-CIZIR15P65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 bleek: hunger, and. misery. But they were also the years of the rise of the workers 1 movement. Nilson organized the then unemployed in a struggle for their rights, for grants-in-aid, an for work. The police beat him mercilessly and threw him in jail. But again he joined the ranks of the fighters for the cause of the working class. The course of the struggle against the oppressors of the people brought Nelson into the glorious ranks of the International Brigade which fought against German-Italian fascism on the battlefields of Spain. A determined, selfless fighter, he enjoyed the general confidence and love of his comrades. Nilson was a lieutenant colonel in the Abrabant Lincoln (15th) Brigade. There were 3,000 American compatriots in that brigade; 1,800 of them died bravely in battles with fascism. Nilson modestly tells of this heroic period in his life in the book Volunteers. He returned from Spalswith a deep scar; a fascist bullet had passe& several inches from the spot where, all his life, he retained reminders of the bludgeons of the Chicago police. But let us return to the Pittsburg court building. Nilson is on crutches: he had received serious injuries in an automobile accident. They dragged him directly into court from a hospital, where they attempted to "take care" of him by sending in a hired killer. But presence of mind and courage did not fail Nelson. He had disarmed the bandit.... Agents of monopolies judged Nelson. Edward Boyle spike as the chief accuser. He was charged to let Nilson and. his comrades rot in prison. The purpose was to terrorize workers and their organizations in the largest center of the defense industry, the state of Pennsylvania. This happened at the height of the wax in Korea. Plants in Pittsburg labored over fulfillment of large military contracts. Into the safes of the Hellons and other manufacturers flowed many billions in profits. With violent malice the cannon kings of America pounced on those who demanded a termination of the war and a renunciation of the arms race. In search of means to mete out punishment to active proponents of peace, they._grasped the so-called law on "incitement to revolt," adopted in Pennsylvania in 1919 daring the period of the powerful rise of the strike movement., The Stockholm Appeal for banning atomic weapons, and brochures calling for a struggle for peace against the unleashing of a third world war figures as "material evidence" at the trial, together with the classical works of Marxism-Leninism. .Net. one of the 700 lawyers in Pittsburg and neighboring cities decided to undertake the defense of Nelson. They feared persecution and repres- sion. The experienced anti-fascist was forced to defend himself. - 79 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 OM the head. of his judges Belson appealed to the people. He related_how_Mellon and -other monopolists profited from war, how they were attempting to undermine and crush the growing movement of the advocates of4sace -- the insuperable movement of our time. They repeatedly inter- rupted him and tried to silence him. But Nelson, a Communist-revolu- tionary, angrily unmasked the enemies of peace and democracy, those who want to fling mankind into the gulf of a new world war. "We are,victims of legal frame up organized by large monopolies profiting from U28 war in Urea," said Nelson. "Look out the window of the. courtroom. No matter Where you look, you. will see the buildings of large Monopolies. You will see the building of the Mellon oil company -- GulLOil, the building of the Mellon aluminum company, the building of an Aslectrical-company which belongs to the latter, the Mellon bank. F:sv,oqhey arrested um," said Nelson, "when we disseminated the Stockholm Appeal aimed at banning atomic weapons, mending cooperation between all peoples of the world, and ensuring peace. Behind these arrests was also concealed the ttempt to check the huge M8V88 of the strike movement whiCh are sweeping over the coal and metallurgical industries." , -11The chief criminals in this judicial farce," said Nelson, "are Mellon and Morgan, and the rich men of Pittsburg.... They are making millions from the war..-. They say: 'If you interfere in our plans, you land behind bars.' They bear the responsibility for high prices and (maraud taxes." "They judge me," continued Nelson, "because I fought against war and fascism here in Pittsburg. I uphold the right here in this court, L.:to.defend_peace no matter what the personal consequences ...n ,The. sentence resounded -- twenty years in prison. They threw Nelson into a dark, damp basement, denied him the right to visitors, the receipt of mail, refused him medical aid, and denied him the right to consult lawyers. broad campaign developed throughout the entire country to repeal this. brutal sentence, to liberate this courageous fighter for peace. .Angry protests came from every corner of the earth. Judge Montgomery, who passed the sentence, was compelled to admit that "so many telegrams and. letters had been received that Nelson's prison cell could be filled with them." According to information of the Congress of the Struggle for Defense of Civil Rights, 10,000 letters and telegrams demanding Nelson's liberation on bond were sent to Pittsburg. Under public pressure, the state supreme court was compelled to satisfy the petition to set a bond and to liberate Nelson temporarily after 239 days of imprisonment. Four days later, he was again dragged into court, this time accused of violating the reactionary Smith Law. Nelson was sentenced, in all, to 25 years' Approved For Release 2001/07/28 : bl9RDP65-00756R000300270001-9 Approved For Release 2001/07/28: CIA-RDP65-00756R000300270001-9 imprisonment. The campaign for Nelson's release broke out with new force. Reaction was forced to recede. The Pennsylvania State Supreme Court admitted that Nelson's conviction for 20 years on the basis of the local law of 1919 on "incitement to revolt" was improper, tut the sentence for violation of the Smith Law remained in force. In the spring of 1956 a federal court was obliged to set aside the execution of this sentence also. The State of Pennsylvania has long been the arena of the most bitter battles of the United States proletariat against its oppressors. An old man grey with age sat among the spectators in that Pittsburg court room. A wrinkled face, a firm jaw, eyes that shown angrily beneath busby eye- brows. The old man intently followed the trial of Nelson and his comrades James Dolson, the 68-year-old correspondent for the Daily Worker in Western Pennsylvania, and Walter Lowenfels -- a correspondent for the same news- paper in Eastern Pennsylvania. Pat Cash is 85 years old, bat he has a lucid mind and perfect memory. Cast is one of the veterans of the straggle of the American working class. He took part in the famous strike of steel workers of Homestead (near Pittsburg) in 1892 And since that time tad not ceased the straggle in behalf of the working-people. He began working at the age of ten after his father was cradhed to death by a ranaway freight ear. Pat was proud that his father -- an immigrant-worker Who fled from Ireland during the potato famine -- was one of the pioneers of the Sons of the Vulcan, the first trade union of workers of the metallurgical industry of the United States. Pat recalled how, on 21 June 1877, ten Miners in Pottsville and Mauch Chunk: were hanged because they refused to tolerate unbearable working conditions. Later, When the indignation of workers had become still more intensified, Mellon agents hanged ten more miners. The fortune of the Mellons is founded on the blood of workers, monstrous exploitation, and bloody terror. "It is impossible to control coal miners without machine-gans," asserted. Richard Mellon. Brutal exploitation and violent terror was the Mellon policy toward workers. If reprisals against workers acquired an especially scandalous nature which provoked public indignation, the Mellons took steps to con- ceal evidence of their crimes. When the Senate was compelled to set up an investigatory commission to pacify the public daring the 1927-1928 strike of Pennsylvania miners, the Mellon Pittsburg Coal Company sent the following instructions to its manaeerss "The United States Senate investigatory commission is now travelling in the Pittsburg area. Cover up eterytbing that is unsightly. Restrain the police somewhat; try not to resort to arrests; instruct everyone to ) Approved For Release 2001/07/28: CIA-RDP6SS1 -09-756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 avoid disorders. If the commission desires to interrogate our employees, present to them those Who will give proper answers to their questions. It the commission interrogates you personally, do not answer questions which In your opinion could damage our interests. The company will protect You..." The militant speeches of the workers and their craving for organiza- tion did not cease. The strike movement in the United States assumed peat proportions after the first world var and the Great October Socialist Revolution in Rassia. In 1918-1919, more than a qaarter of a million steel votkers and nearly half a million coal miners, railroad and other workers -- in all, over a million people -- went on strike. The Pittsburg steel workers were among the first ranks of the working class. They were led by William roster, a prominent figure of the left-wing socialist movement who later became one of the organizers and leaders of the Communist Party of the United States. The difficult coarse of the straggle brought Pat Cash into the ranks of the Communist Party. He joined it When he was 60 years old. "I could not do otherwisei" he said. "I was born into the straggle..." Cash was not alone. Sons of the working class of America enter their Communist Party to fight among its tanks for their rights, for peace, and against Wit and. Capitalistic oppression. , * * * The steel workers and miners of Pennsylvania are keenly aware of the attack on living conditions and rights of American workers Which became intensified after the second world war. In pursuit of maximum profits, the Morgans, Mellons, and other uncrowned kings of America converted the country into a military economy. They increased taxes, inflated prices, and engineered a reduction in wages. The sweatshop system of labor was becoming stronger. The number of workers killed from year to year in industry is figured in five-digit numbers and those maimed -- in seven,- digits. kkeime,j...teek wrote, "Workers must labor for longer periods and with greater intensity. But instead of better pay they must be satisfied with lese...The die is cast. This time nothing remains but the Whip." The latter, phrase was underlined by the magazine. 'Life completely corroborated the sinister prophecy of this organ of big capital. A worker of a Pittsburg metallurgical plant declared to a correspondent of the Daily Worker, "The owners have set a killing pace of work. Many workers cannot bear it. Pensions and social security are as :available to workers as a lark in the Sky. Workers are dying before they can deant on receiving a pension." - se - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 But the workers refused. to tolerate such a situation. They launched a counterattack. The strike movement in the years after the Second World War assumed. unprecedented proportions in the United States. Statistics bear witness to this fact. In the prewar decade (1931-1940), no more than 22,000 strikes were registered. in the United. States; 9.5 million workers took part and 145 million man-hours were lost. In the postwar years (1946-1955), the number of strikes increased to 43,000. More than 26.5 million people took part and. more than 434 million man-hours were lost. 4 keen class struggle has been developing in the United States during these years. The New York World Telegram and Sun wrote in 1955 that the United States had. entered. a new "period of war on the labor front." The great heat of the strike struggle gloved. brightly in 1956 when. the strike of 54,000 workers of the Westinghouse company, begun the year before, continued and 650,000 metallurgical workers, 60,000 dock workers, 27,000 workers of aluminum plants, and many others went on strike in. the first national strike in the history of the United States. 1957 was marked by a great number of strikes. In the first half of that year alone, 2,075 strikes occurred, many of them of considerable size. The workers of America., struggling for their daily economic demands, come out more often against the oppression of monopolies, against the aggressive foreign and reactionary internal policy of the ruling circles of the country, and for peace and. lasting democracy. 'W_Asken,:pf ,C.harlea. E/Nilsc_a _ V. Volodin A swearing-in ceremony was taking place in one of the offices of the White House in Washington. Placing his left hand. on the Bible and raising his right, Charles E. Wilson -- former head of the Morgan General Electric concern -- in a resounding voice repeated the words of an oath which Truman, then President of the United States, read from a paper. Undersized and unobtrusive in appearance and dressed with the refinement of a commercial traveller, the latter kept in the background beside the stalwart Wilson. Photographers, admitted by the secretaries, rushed into the office. They had. to memorialize that moment when Truman presented Wilson with the scroll of office, which contained unprecedented, indeed dictatorial powers in the field. of "industrial mobilization." The reporters were not success- fu.1 in taking pictures. A triumphant smile broke on Wilson? s face with its short, narrow nose and. broad, oaken jaw. Now he held power in his hands the like of which his predecessors in the leadership of the United. States war industry - 3 - Approved For Release 2001/07/28 : CIA-RDPh35-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 did, not have, even in the years of the second world. war. The director of ,the Office of Defense_Mobilization, just created, had had. concentrated. In his hands the control levers of the American indusrtry for the purpose of controlling the growing armaments rice. Wilson's appointment did not surprise anyone. 1950 was coming to an end.. On Wall Street, there were expressions of dissatisfaction over the "sluggishness" with which the American economy was converting itself into a military one daring the military ventury in Korea. Banks and. monopolies tried. to step up the armaments race sharply, to speed. the militarization of the United. States economy. The first steps in this direction had. already been taken. On _orders from Wall Street, Truman declared. a "state of emergency" in the country. In the salons of luxurious clubs, to which access was denied even for many "beginning" millionaires* it was decided. that leadership of the armaments race _should be entrupted._to a re1iab3.e man. It was considered on Wall Street that an iron band, an economic dictator was.. needed. Who could. fit this post better than Wilson of the Morgan General Electric, whom American news- papers with respectful familiarity call "Electric Charlie"? It was for this very reason that the telephone rang on a December &Ander of 1950 in the, leJakrious, twelve-room private residence of Wilson. The Whit.e,goupe was Truman was on the phone. Respectfully inquiring after the health of the president of General Electric, the President of the United. States declared. that he needed Wilson for a very important and urgent business. He asked him to fly to Washington quickly. On Monday the massive figure of Wilson appeared in the White House. As the Washington newspapers reported, Wilson confronted. Truman with stiff conditions, --- ,completa freedom of action. subordination (in essence only ormal) on,1,7 to the President, complete power in economic questions, and the right to give orders directly to the secretaries and members of the Cabinet.. Truman asked. bim to grant one day for consideration. The next d,ay all, of Wilson? s conditions were accepted. When the President' aI'lexecutive order" granting dictatorial powers to Wilson in the military mobilization of the United States economy was published in the o.ewspapers, even the worldly-wise Washingtonians gasped. :It was stated in the order. _that Wilson would "manage, control, and coordi- nate all activities of the government in the field. of mobilization... Ze can realize such functions through such officials and such organs and in such a manner as he sees fit..." Any previous order or directive of the President which conflicted with this order, was superceded. ? 1 , The Wall Street press, choking, publicized the newly-made economic dictator. , Business Week, an organ of big capital, condescendingly patting Truman? s shoulder, wrote that there was no need. to persuade him and prove - 84 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 to him that it was proper in this manner "to lash the country With a whip In order to place it in a position Where it could wage war." "The powers conceded to Wilson," wrote the magazine, "permit him to interfere in qmestions of taxation, foreign policy, an even leadership of military operations (in Korea V.), so far as questions of military supply are Concerned." The Morgan press did not conceal its jubilation. Morgan's com- petitors were passed over; the distribution of military contracts fell into the hands of "his own man." The Morgan magazine Life was delighted. It wrote that Wilson received "the broadest powers ever conceded a United States civilian, outside of the President himself." "The Office of Defense Mobilization," the magazine observed, "Is a super-secretariat whose task is to expand sharply industrial production for war. It will operate as a council which develops policy and issues orders to all other organs connected with defense." In blurting out the innermost secrets of the American governmental machine, which consists of serving the monopolies, the Morgan magazine revealed the secret of government leadership in America. "Members of government over Whom Wilson has certain power" it wrote, "will act as directors of corporations with Wilson as head of the board. Directors of governmental organs will represent vice-presidents of companies, each of Whom answers for his particular department and all of Whom are accountable to Wilson. Thus, the Morgan magazine compared the United States government to a concern at the complete disposal of the magnates of financial capital. The comparison is a fully legitimate one. Armaments production, which was not curtailed by Wall Street after the war, was now sharply increased. From now on, everything in the country was subordinate to the general plan of monopolistic capital of the United States; gnus, guns, and more guns. This program left its mark on every field of public and political life in the country. One of the Washington magazines declared in plain terms that Wilson headed a machine, "which will control the daily life of every person" in the United States. * * * Opposite the left wing of the White House is an old-fashioned building ornamented with pretentious flourishes. In former days there was located here the State Department, in Whose many offices sat the diplomatic hench- men of Wall Street. Here Wilson resided with his numerous bureaus and committees. The empty corridors and vestibules were filled with hundreds of officials. Many did not have sufficient room, so anterooms and hall- ways were subdivided by numerous partitions. - 85 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Over the,bastling, noisy crowd reigned the voice of Wilson, Who spoke by telephone to one or another office. Gruff, unrestrained in his expressions, Wilson often used words which even the impertinent American' press could not repeat. He issued orders, demanded, threatened, and berated: The machine of military production, Whose tentacles covered the entire United States economy, was turned upside down and gathered momentum. Newspapers published diagrams of the new system of administration of the United States war industry. From a portrait of the new "economic dictator" in the center of the diagram stretched thick, black threads of control, like a spider's web, to countless circles, squares, and rectamees depleting the different fields of the American economy. Morgan's deputy seised machins-tools, ray materials, and the labor force and Concentrated them in his mina greedy, tenacious hands. The administrative apparatus of the "industrial mobilization" became known in Washington as "the second Cabinet." Wilson appointed more than 100 representatives of the largest monopolies on Wall Street to the most important posts in this cabinet. Twenty of them formed a tight, internal circle representing the Morgan "government within a government" and directing affairs in Washington. ,Allhot were these people? Whom did they represent? Whose interests did they uphold? Whose business did they promote? For Whose sake did they come to Washington, forsaking profitable, plush jobs on the boards of banks and.. industrial concerns? Wilson entrusted the selection of "his people" for the most important posts in his off100 to banker Sidney Weinberg. It was said in Washington .abeut_thisamall:Hactive, lively man with bustling mannerisms and hurried speech, that he is not only a symbol throughout all large businesses of the,mutry, but is also excellently informed on the actual state of their affe4s. WW,Aberg is a partner in the well-known Morgan bank of Goldman-Sachs. Re is a member of the board of 13 large Morgan companies. _Weinberg appointed representatives of large Morgan companies to magiAiportant posts in the system of the Office of Industrial Mobilization. When the :American press, prompted by Morgan's resentful competitors, raised a fuss over this question and Weinberg was forced to retire, all the chief pests of Wilson's office were filled by direct representatives of the Morgans. The Morgan Moor had done his duty. liesUltswere not long in coming; the profits curve began to rise abruptly. - 86 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 . During this year following Wilson's appointment as "economic dictator" profits of the Morgan General Electric increased 81.9 percent; profits of Morgan's Continental Can rose 35 percent; and Morgan's Kennecot Copper increased its profits by 102.9 percent. Yearly profits of monopolies in:theiJnited States reached an incredible level, exceeding $50 billion. Here is where the genuine roots of the frenzied arms race lay, and where the initial causes of the aggressive ventures of the United States beyond its borders profits -- are found. *5* What does Wilson, this former powerful boss in Washington, represent? According to Time, his father died When Wilson was three years old. The family lived in the western port area of Lower Manhattan in New York -- in wretChed slums which recetwed the curt nickname among the people of Kitchen." Great physical strength and a gruff, aggressive nature helped young Wilson to become ringleader in one of the many gangs which prepared neighborhood youths, transformed into inveterate criminals by capitalist conditions, for gangster "business." According to Time, many childhood friends of "the second. President" of Ulf:United States, as the press subserviently called Wilson, are now serving lengthy prison sentences in famous Sing Sing Prison. Wilson never made a secret of the fact that striving to get rich and make a fortune was the basis of his living philosophy. "I always wanted to make more money," he later related cynically in his biography. "And as quickly as possible." possessing great practical gumption, Wilson decided that the gangster business can bring only temporary profits. Either land in prison or, what is truer, be destroyed by a competitor in overt robbery. Wilson decided to undertake completely "legal" robbery, and where more profitable than Wall Street, located next to "Hell's Kitchen." At the beginning of the century, When Wilson went to work at the Sprague plant, later turned over to Morgan's General Electric, the workers sought to stick together to repulse their bosses and their watchdogs -- the foremen. This did not sait Wilson. He decided to deal with the boss by, himself. In plants, shops, and mines of America, workers waged a tense straggle to Organize trade unions. Plant and factory-owners replied to this struggle with cruel repressions and secret murders of trade-union organizers. Shots often rang out in narrow alleys at night. Leaders of workers engaged in the one-sided battle with monopolists were felled by police bullets. - 87 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 -120it Wilson advanced steadily forward. In 1923 GerardSwop; president of GeneraIElectric, Who had long noticed Wilson, appointed him chief engineir'et'a plant of thisMorgan company in. Bridgeport (Connecticut). AioOnifiXson_became assistant vice-president of this company and in 1930 -- its Vicepresideni, When Swope retired, Wilson was appointed to the post Or President of Genera]. Electric, At the same time, he became a member Ofte board's of the Morgan rubber company Goodyear Tire and Rabber and the Morgan bank Guaranty Trust. He became owner of 2,698 shares of General Electric. His galaxy reached $200,000 a year, not counting different gratuities. The young assistant boss of the Sprague plant had become a partner to the largest imperialist plunderers in profits and exploitation of workers. Profit was the chief motive for all Wilson's actions in the service of the 'Mar:genii. Th intrusive businessman had only approached the top of the hierarchy in GeneralXeCtrio When be developed an increasing interest in government polite in Washington ,This matter, of course, was not his sole personal, interest. '71heritorgans needed mailed fists similar to Wilson in government posts. Even in 1933 Wilson held the post of deputy director of the National Recovery Administration, created by Roosevelt. . -Wilson was ordered to Washington for the second time in 1942. His secret task was to provide his firm and other Morgan companies with the largest possible number of military contracts and scarce raw materials. Being in ..the War Production Board, he .quickly started a noigy-' squabble with the deputy director of the Board, ,Eberstadta banker, who managed the distribution of raw materials and who represented the interests of the banking house of Dillon, Read, and Company. When the skirmish had ended, Eberstadt had been driven into retirement and WilioilladHbeen appointed in his place. , Relating this commonplace episode from the point of view of the Wall Street morals, Wilson's biography states that while occupying Eberstadt's position,.. the Morgan henchman "directed materials where they were most needed." One can imagine that they were "most needed" by Morgan companies. In Washington the Morgan henchman behaved like an all-powerful boss. At one of the meetings of the Aircraft Industry Committee, the chief of the Servicesof Material Supply of the United States Army, General Brehon Somery,41 (now president of the Mellon Koppers Company), forgetting that 4t was the chief of American militarists and ,not their servant Who sat before him4 attempted to raise his voice to Wilson. Wilson jumped up from his place, rem over to the general, and seizing his collar, began shaking wish such force that the medals and badges of excellence on his breast began to jingle. Growling something and reddening, Somervell humbly remained in his place. Since that time the general has displayed Approved For Release 2001/07/28-1 a:RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 the greatest respect in dealing with the deputy of Well Street. But, In the words of the newspapers, "Of the many nicknames conferred on Wilson In Washington, there were many Which were unprintable.! The ambitious efforts of Wilson were not hampered by the War Produc- tion Brd. e waved inupu J.ntruesegel4et'Aild .-numercua rivals and competitors. Washington newspapers reported at this time that Wilson had. arranged for the wire-tapping of telephone conversations in the office of his chief rival and competitor, the then Secretary of the Navy, James Forrestal of the bank of Dillon, Bead, and Company. A noisy scandal broke out. Nothing remained for Wilson it to deny the accusation. The newspapers published a refutation conveying their spologies to Wilson. There were few-people in Washington Who doubted that Wilson simply compelled the newspapers to "eat their words" in order to shield himself from the unpleasant incident in Which he had become involved. While in Washington, Wilson energetically increased the profits of the Morgan General Electric or GE, as the American press sometimes called it for short. During Wilson's tenure in the post of director of aircraft production, the industrial empire of the Morgans increased by 35 plants and the number of workers rose to 94,000. Physical output of the indus- trial production of GE increased five times. Does not this testify to how the imperialist monopolies of the United States grew rich and profited from war? The second world war was nearing an end. Wilson's task was completed -- GE had picked up many billions of dollars of military contracts and had been transformed into one of the largest "dealers in death." Wilson retired from government affairs. In 1944 he was again "elected" president of General Electric. * * * If Charles E. Wilson had been inclined to reminisce While sitting once again on the board of the Morgan concern of General Electric in Schenectady, New York, he could have recalled several incidents of great value to the concern. During the first 50 years of its existence, this Morgan concern (four representatives of Morgan banks sat on its board) achieved a monopolistic position in the capitalistic world. Sixty per- cent of all American electrical machine-building production belong to it. Even at the beginning of the century General Electric, together with the German :Universal Electrical Company (AEG) exercised almost complete rale of electronic equipment in the world market. Toward the end of the second world war, the Morgan giant of the electrotechnical industry proceeded to seize the productive might of all its rivals and competitors. After the war General Electric gained large amounts of stook (from 15 to 49 Approved For Release 2001/07/28 : CIA-R1510-0756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 percent) in electrotechnical firms in Japan, West GermanYi Frances inglando italyi Morocco, Austria, Belgium, Chile, Holland, Spain,-Sweden,:and Turkey. The GB trademark was stamped on articles mamnfactured In plants in Argentina, Brasil, Mexico, Uruguay, and South Africa. According to James Allen, an eminent American economist and expert on monopolies in the United States, almost one quarter of a million workers are employed in. firms under the control of the General Electric concern or connected with it outeide of the_Dnited States. Within the United States, While the incalallable profits of the Morgans multiply, more than a quarter of a million workers toil in 153 plants of the concern. The production of the General Electric concern is worth mom than $3 billion. An analysis of the profits received by this Morgan concern showed that its yearly profits were approximately 19 percent of the capital invested within the United States and 94 percent of the capital invested abroad. The arms race and production of weapons for the destruction of people has always been a source of enormous profits for General Electric. After the second world war the bosses of GE, the Morgans, displayed no intention of abandoning profits in the war business. or this reason,' it January 1944, speaking to the so-calledAnnyArma- Meattp,Asp904#944fricanOrdpancVissodatian?]WilsoncalledfartteimpleMtntation. fte them,.ef a broad program Which would enable the United States "to be constantly prepared for war, industrially and technically.? The.Morzan General Electric concern is now fulfilling this program. MiliaryProduction of this concern constitutes nearly 45 percent of its total, Jet engines for bombers and fighters, atomic engines for wol- Wlnes, rocket weapons, military communications equipment, including the newest and most highly specialized types -- these are only a part of the list of articles for whose manufacture GE receives enormous contracts from the United States Armed Forces. fl..AeOret_A.entracta for research. and design in the field of radar, sonarlsound-locater equipment), guided missiles, and aviation devices are. aligmentipg.an. already large volume of contractsPwrotetheMagmdmeafUall 15t1 gad 1),:s.inemAn3jai 29 September,1956. Tais verymagazine announced that the GE concern is"guaranteed leadership" in the field of military con- tracts, whiCh it accepted in 1955 for no more and no less than $570,200,000. The main objective of profits for this concern now is the produc- tion of atomic and hydrogen weapons and the scientific-research work connected with this production. 90 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 After 1946 when the Morgan General 'Electric won out after a lengthy competitive struggle with theDaPon-Wover the production of plutonium in Hanford, Gil became a monopolist in the manufacture of the main integral component of atomic and hydrogen weapons. In truth, the Hanford plant formally belongs to the American government. GB only "manages" it. This, however, does not prevent it frti obtaining solid profits disguised as expenses in the management of thieplant. In 1949 this concern received from the government commission on atomic energy Which directs all atomic enterprises in the United States. $120 million to defray its empenses in producing plutonium. Naturally, the Horgan monopoly has not lost sight of the vast opportunities Which the use of atomic energy for peaceful purposes creates in the way of profits for capitalist concerns. In his thorough study, Atomic Imperialism, James Allen presents a rather indicative statement by the vice-president of General Electric, Winne., to the Joint Commission of t4e, Congress on Atomic Energy. Chairman: Doctor Winner, General Electric will naturally enjoy great advantages in comparison to any other firm which is active in the produc- tion of electronic equipment when it becomes possible to use atomic energy for peaceful purposes. Winne: In My opinion the basic consideration Which we are guided by generally in this matter (Atomic energy), is the fact that atomic energy to a lesser degree is fully capable of becoming a contributing factor in the production of electrical power in the future with greater ease, its dissemination over much wider areas, and at much lower prices than at the present. Any work of such a nature is of interest to General Electric... But let us return to Wilson. This sworn enemy of the organized labor movement in the United States went at one time, on behalf of the employers-of the staff of the so-called National 3LabOr RelatiOnsI Board?) a strikeb?eaking,governMentotganizatiorC.rereated tO stifle the strike movement in the United States.. Be made every effort to unwrap the American military machine, to prepare for a now arms race and a new war. Together with his numerous partners, Wilson increased reactionary terror against all progressive organizations, against the American people who abhor monopolies and their policy of the arms race, aggression, and war. In different committees of the National Association of Manufacturers, in which large monopolies of the United States rule, directives were worked out in the struggle not only against Communism, but against all progressive, anti-military sentiments of workers. In August 1954, a law went into effect which banned the Communist Party of the United States. Another step was taken by the will of big capital on the road to reaction and fascism. - 91 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 .40* WaShIngtenzestapo -- the Federal Bureau of Investigation (FBI) and.",imestigatory" commissions in the Roast, of Representatives and the Senate --spies on American citizens day and night. The Wilson apprentices and.their partners in profits from military business -- the lastlands, Jenners, Faith's, and others -- are frantically raving. , Several years ago the Morgan General Electric stepped up its attack on the progressive trade-union of workers of the electronic and radio industries, attempting to disrupt and destroy it. The notorious Senate Subcommittee on investigations was summoned to Schenectady, New York where large General Electric plants are located and to Albany, New York. ,:li:717:9'The commission immediately got down to work: it summoned the trade- union bosses and the rank-andr-file workers and subjected them to an inquisitorial cross-examination. To each was posed the same question.: "Are you not a mentor of the Communist Party of the United States?' Even before the meeting began, the General Electric concern announced that everyone Who refused to answer the questions of the commission would be fired. :71.7rit But workers gave the inquisitors a fitting rebuff at the meeting in Albany. Amid the storm of applause of workers in the audience, A. L. Owens, a welder, angrily retorted to the notorious obscurantist Joe McCarthy, the chairman of the subcommittee: 1.Lhave no rights before this fascist commission. Your Ku--Klux--- Klan commission intends to deprive me of work. Why dont you, you fascist loafer, undertake an investigation of the activities of General Electric and-the-profits which it extorts from my people?" The commission was compelled to break off the meeting. Followed by the, contemptuous hooting of the workers, it ran back to Washington under ?..a. heavy policy escort. ' 0harleigOwardlitIvOuianot formally in power now; he does not hold an ogicial,post in the government apparatus of the United States. Ke is tin,..0M-X9Serves of. Wall Street. Charles Edward Wilson, whom the American press calls "Electric Charlie" was replaced as president of the Morgan concern of General Electric by Charles Erwin Wilson, whom the newspapers nicknamed "Motor Charlie," a deputy of big capital and the president of the 1)u Pont-Morgan concern General Motors. The far from accidental succession was reflected in the accidental circumstance of the almost complete coincidence of names. No matter who predominates in Washington, the Republicans or the Democrats, the real power lies in the hands of large monopolies Which reign within the government apparatus of,the Urdted States. - 92 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Just as before, henchmen of monopolies grab military contracts from each other; just as before, they create international conflicts and strengthen tension in international relations. And the straggle against their criminal activities is, as before, the chief task of the people and, above all, of the people of America. The Bank of the Dillons and Its International Ventures- V. Morey Once, in one of the buildings of the French Council of the Republic in Luxembourg Palace in Paris, a verbal inquiry was made to then Prime Minister of France, Mendes-France. The prime minister was asked whether he deemed it necessary to protest immediately "against announcements and speeches of government figures and ambassadors with whose aid leaders and representatives of the allied governments -- England and America -- in defiance of international law and customs, unhesitatingly and openly exert pressure on the government, the parliament, and public opinion of our country by recommending to the parliament that it approve a treaty which it did not sign itself and Which is so poorly conceived and composed that no one at the present time can doubt its ruinous effect on all of Europe." Let us elucidate. The speech concerned the usual American maneuver designed to compel France to ratify a treaty for the creation of a so- called "European army." Unprecedented pressure was exerted by Douglas Dillon, then American ambassador in Paris, speaking before the Associa- tion of the American Press in Paris on 29 Jane 1954. Recalling quite unceremoniously the dollars Prance received through the Marshall Plan, the American diplomat intimidated the French, threatening them with un- restrained arming of West Germany. Arming for What? In France this was well understood, too well. Those who knew the hidden circumstances of the matter were not ear- prised at the statement. Douglas Dillon represented in France not only, or perhaps, not so mach the United States as the famous investment bank of Dillon, Reed, and Company which has long been connected with the German military-industrial machine, financing it and pushing mobilization for its OVA capital. Douglas Dillon has given long service to this bank. As early as the age of 22 he was a member of the New York Stock Exchange and at 29 -- vice-president and member of the board of Dillon, Read, and Company, From January 1946 until January 1953, he was its president. Receiving the appointment of ambassador to France, he left the bank, but maintained close ties with it. In all his activities Dillon was governed by its interests. - 93 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 this was no accident.lio:diebutClarencerdUo;tbe Dallerofthe present,- da y banker ,diplomat, transformed the -banking .house of William Read - into What it is today -- a bank which exerts influence on the foreign policy of the United States and engages in large-scale internatiOnal ventures directed toward the preparation and launching of new world wars. According to an American magazine Avert World War III the William Reed banking house, located. on Wall Street in New York, quite recently wai-eaected from among ten other banks for its significant capital and influence on the large financial hierarchies of the United States. Its coiveriiOnlnto a plunderer of the first magnitude reverts to that time which Clarence Dillon was in the bank. Read entrusted to Dillon the sale of Stook at the largest industrial center of the country -- Chicago. Dillon zealously undertook thisbrokerage job. A cunning dealer and expert 1n the psychology of the American wealthy Who are prepared to go to any length for profit, be engaged in several speculations which netted large profits not only for, the bank but for himself. Resourcefulness and the ability to make a profit under any circumstances were Clarence ,D1I1onts:best recommendations. In 1919 be worked in the office of the . lead -bank in New York as its vice-president. The profits of the William Readiminking house grew. And Dillon grew. Soon he gained such great influence in the bank's affairs that he became its president. On the eve of the 1929-1933 crisis the banking house -- now called Dillon, Read, and Company -- took the first step on Wall Street in spreading out its brokerage operations, whose volume was $3 billion a year; The Dillon bank quickly found the most profitable field for its activities -- it reinvested practically all of its capital abroad. This was the bestmethod to penetrate the economies of foreign states, to place them at the service of its own mercenary interests, and to assure itself fabulous profits. The bank offered loans to Brazil, Holland, and Japan. For a Short period it became enmeshed in promissory notes of nearly a dozen Latin. AseriCan countries. The Dillon, Read, and Company banking house was one of those which financed the German military machine revitalized after World War I. On 5 January 1932 Dillon boastfully declared, "During the postwar period the slim total of loans executed through us -- I do not include loans executed by other banking houses or in Which we placed small sums -- was equal to $1,491,228,549." The statement concerned loans and credit for revitalizing the military-industrial potential of Germany. The Dillon, Read, and Company bank, together with the National City Bank Which belonged to the group of big bosses on Wall Street, served as the basic channels through which American financial magnates were in- vesting in German industry profits made during World War I. Prior to 1932, these two banks floated 20 German loans in the United States. Approved For Release 2001/07/287 n-TRDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 HPenetrating into the German economy, whose conversion to a military economy had been prepared by Krupp, Stinnes, Thyssen, andSChaeh, the banking house of Dillon, Read, and Company together with the Morgans, Rockefellers, and other American magnates exerted decisive influence on thaTolicy of German monopolies. It is no accident that the head of Ferman metallurgical concern, Fritz Thyssen, once declared in answer to a question concerning his attitude toward the notorious Dawes Plan kl); "My position was determined Chiefly by What an American banker told me. I have in mind Clarence Dillon, Who represents the banking house of Dillon, Reed, and Company, with which we had quite friendly relations." Some time later the same Thyssen published a book in which he related with cynical frankness how German monopolies cultivated Hitlerism and brought Hitler into power. The book was boastfully entitled "I Paid Hitler." Not only did Thyssen and Krupp pay Hitler, but also his followers. Wall Street monopolists reared fascism and aggression. The financial suppOrt of the ruling circles of the United States, by rehabilitating and renewing the heavy and military industries of Germany, was the most im- portant prerequisite to fascist aggression. The Morgans, Rockefellers, and Dillons paid Thyssen. Thyssen paid Hitler. Hitler prepared for a bloody war of nations. * * * Several days after the end of World War II two gentlemen appeared on the board of directors of the German ferrous metal concern, Pereinigte Stalverke in Dusseldorf. One of them with a short, passerine nose and a crude haircut with a part, was Paul 1Rite, vice-president of Dillon, Read, and Company banking house. The gentlemen represented a special Americaa organization, officially created to determine the extent of damages inflicted on German and Japanese industry by Anglo-American "strategic" bombers and, essentially, to establish to What degree the capital investments of American bankers in these countries suffered.. Nitze was vice-chairman of this organization, which was called the "Strategic Bombing Survey" (Study of Results of Strategic Bombing). It is opportune to point out that this organization affirmed that only 15 percent of the industrial power of the Fereinigte Stalverke was destroyed by bombers. American generals knew where not to drop bombs: (1). The Dawes Plan was formulated by the American banker Dawes and instituted in 1924 at the London Convention of Victor States #. the first world wir. The Chief purpose of this plan was to strengthen German im- 'pail:a/ism and revive German militarism, with whose aid imperialists of all 'countries intended to destroy the USSR. - 95 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 JI,114,?V - and his companion demanded that they be directed to Walter Bochlandt,Noecainelthedtectorarttecoodernwho was appointed to this post by HitlerJiS4S. The American spent ten pleasant days in discussions With Rochland; the old partners in commercial death net and they had much to talk about. The, content of the conversation between Nitza and Rochland woad have remained unknown had, not officials of the section of decarteliaa- tion if tlelimertoanMilitary Government in Germany examined the archives of EerePligte Stalverke shortly afterwards. They found a copy of a letter 1,0404.4414.44,Wrote to one of his friends after this visit. The letter reported that during their ten-day stay "as guests" of Rochland, Bitzt and his companion discussed with him the problem of the German,milttary industry!s rehabilitation. Eitze then assured Rochland -- an old,SAW Of,bilitQwW.Va0k.-- that he and. his colleagues had nothing to fear and that "nothing would happen" to their shops, mines, and plants. Bochland enthusiastically corresponded with monopolies in Germany, the United,States, and Eggland and the "bridge of friends" was reconstructed. ? ReetgratiOP,of tbe,"bridge of friends" was entrusted to William per. This_talls young banker with a drawn face and short delicate ears, served eacceeeful.l.y..in the rear services during the first world war and thus heax4 nOt gunshot throughout the war. When the war was ended, Draper, who had time after all to acquire the rank of major, joined the Dillon, Bead, and Company bank. ?tting behind his desk in the bank and correcting profits summaries, the young banker nonetheless advanced within the military ranks. Soon he was promoted. to lieutenant colonel and later to colonel. Simultaneouar his advanoement,in his banking career continued. He became vice-president of the, Dillon, Read, and Company bank. When_the_second world war broke out in Europe, Draper in 1940, trans- ferred his_servicev to the War Department located in Washington. The resouroefal)ankor found a safe place for himself here. He was appointed chief of_the !gurlough:Group, Morale in the Army Section". ';t Was 1941. The United Staten had entered the war. But the Dillon, Rea4, and Company bank had no intention whatsoever of subjecting its vice- president to the dangers of war. In March 1944 banker Draper, who by now had reached the rank of general, was transferred to the headquarters of the American army, to the section on military contracts. He served there until the end of the war. entions of Draper began to appear in the American press as the war neared to an end and Soviet guns pounded the den of the fascist aggressors. quickly liquidating his supply affairs in Washington, Draper, in May 1945, was sent to Germany literally days before the end of the war. Concealed - 96 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 as a harmless economic advisor to the American military command, "Oeneral" Diaper, vice-president of the Dillon, Read, and Company banking house, went to MVO the German clientele of his bank from destruction -- the Hitler cartels, to revive old ties with them, and establish new ones. Draper was not sent to Germany alone. He accompanied a group of representatives of large Wall Street monopolies deeply interested in preserving the German monopolies in which they had large capital invest- ments. Among them was Phillip Reed, chairman of the board of the Morgan General Electric; Rafts Wiser(?)director of Republic Steel Corporation; appointed later to head the department of ferrous metals of the economic administration of the American Military Government in Germany; and a certainrrederickDevereu4, former president of one of the many affiliates of Morgan's International Telephone and Telegraph Company. Arriving in Germany, Draper quickly surrounded himself with repre- sentatives of German banks and monopolies with Which the Dillon, Reed, and Company bank had close business connections before the war. As his closest advisor he appointed the German financier A. Kreiter, who for many years headed the German Credit and Investment Corporation, estab- lished in 1920 through American loans and Whose obligations were held in the United States by the Dillon, Read, and Company bank. It is quite interesting that the Kreiter corporation, which was closely connected with the Dillon, Read, and Company bank, organized a special banking syndicate in 1942 to plunder European countries occupied by German Hitlerite armies. Although the snydicate-maraader, which was called Societe. du Credit Internationale, was located in Vichy, banks of Hitlerite Germany were active in it. But let us return to the postwar period. . With the aid of a group of people selected by him, Draper entered upon the realization of a Wall Street program aimed at disrupting decisions of the Berlin Three-Power Conference, which was committed to liquidate Nazi cartels and the German military-industrial potential. The story of all the intrigues of Draper, Wall Street's deputy, would take mach space. We shall limit ourselves to merely a few, of them. Omm_of Draper's first moves was the rescue of German war criminals -- leaders of large German financial and industrial monopolies. .How was jaie 4onP3 First of all, Draper saw to it that Judges were chosen Who :were obedient to Wall Street. Robert Jackson served as chief prosecutor At the trials of_ war criminals at Nuremburg. He was a member of the United, States?Suprene Court, the same man about whom the famous American journalist George Marion wrote: he advised former President of the United States Truman ''not to conduct trials of war criminals Who were industrial- ists in common with Russians, Englishmen, and Frenchmen," because "the Russians are unmasking the role of big capital in war and aggression." On Jackson's advice, the President announced that the United States would conduct this trial separately. Approved For Release 2001/07/28 : CIA-RDP%g-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 13y that time the selection of judges had. been undertaken by the then Assietant Secretary of War, Patterson, who had direct connections with the occupation government of West Germany. He was closely connected with the ksifilmlafennadildeGaisdadr,[8wEdnel and Wood, which represented., at that time in the United States, the interests of the omnipresent German monopoly of I. G. Parben and. received large fees for services rendered to it. 4!, Is it no wonder that the American judges selected in such a way attempted to relieve their German Wall Street partners of responsibility for profiting from wars and imperialistic usarpationl In the spring of 1948 the trial of 1RqmaxISchmidt, George von Schnitzler, Karl Krauch, Max Ilgner, and others, directors of the I. G. Farb= monopoly-octopus, ended. The people who headed IGF completely admitted their responsibility for the policy of war and aggression conducted by the Hitlerites. Never- theless, they were adjudged innocent "of crimes against peace and criminal conspiracy to wage aggressive war." Merely to calm public opinion, 13 of the 22 accused were sentenced to short prison terms. How did Draper and his apprentices from Wall Street disrupt the program established at Potsdam to liquidate Nazi cartels? 4 In September 1947 Martin, former director of the department of so- called decartelization of the American Military Government in Germany, published a series of articles in the New York Post in which he presented interesting information on Draper's activities. Martin asserted that "reorganisation ?cartels in Germany has been cancelled and an opporta nity has been given to Basis to resume their old posts." /t is hard to believe, reported the Hay York Post on 8 December 1950, that 20 large German steel concerns have become "stronger than ever before." Here, for example, is how American monopolists have "revived" the German cartel of Robert Bosch, which produces electrical equipment for automobiles and aircraft engines. The Daily Compass gave an account of this history on I March 1950, The Hertsos brothers, who representedBosch's concern in Athena before the war, opened the Industrial Products Trading Company in Switzerland. Although the Hertsos brothers maintained that they had founded the company on their own capital, it was clear that they were dummies.Bdaehv had loaned them the basic capital. Thelfosch commercial traTelers permitted Americans to take part in this company. Upon the recommendation of one of the offi- cials of the American, Military Government in Germany, whose name the news- paper did not give, they enlisted Major General Wilson into the company. One-,third of all the company's stock was transferred to him without charge. Actually, this was a poorly disguised bribe. ? Approved For Release 2001/07/287 C91W-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 One of the numerous Washington commissions Which investigated the activities of the American Military Government in the United States summed Wilson for qaestioning in connection with this affair. "How- ever," wrote the Daily Compass, "the fact was that the general was very intimate with Clay (then American deputy in West Germany) and his deputy General Hayes." Moreover, Wilson was also intimate with another general, Vaughn, aide to former President Truman. His shady transaction was left unpunished. With the loyal collaboration of German monopolies, who were prepared to betray the national interests of the Germany people, American capital rushed into the West German economy, capturing its most important sectors. The New York Times in November 1949 wrote that the foreign affairs ministers of the United States, England, and France received a memorandum from West German circles appealing for strengthening of foreign (i.e., American) capital in the German steel trust of Fereinigte Stalverke. Negotiations were quickly began concerning the transfer to American companies ?Du.Pont's General Motors, Morgan's General Electric, and the Ford company -- of stock in the Fereinigte Stalverke steel trust in Dusseldorf, essential plants of Knapp, the machine building concern of Mannesmang,the Otto Wolf concern, and others. While Draper and ..Nitze- operated "locally" in the name of profit for the Dillon, Read, and Company bank, James Forrestal, former president of this bank, ruled in Washington. Forrestal obtained viick promotions in the bank. In 1923, seven years after his joining this bank, he was joint owner of it. Forrestal played a prominent role in credit operations for German heavy industry, the basis of the German military.-industrial potential. In 1937, he became president of the bank, replacing Clarence Dillon, who had temporarily retired from this post. Forrestal used transactions with German monopolies to take part in the direction of these monopolies and share in their profits. In 1941 and 1942 Forrestal, being Assistant Secretary of the Envy of the United States, was a member of the board of an American affiliate of I. G. Farben -- a company called General Aniline and Film Corporation. Before the end of the war Forrestal became one of the chief repre- sentatives ofAinll Street in Washington who directed the United States policy of renouncing international collaborations. In May 1944 he decieively opposed ideas for establishing an international organization of peace and security, about which negotiations were then being conducted which would lead subsequently to the founding of the UN. Forrestal declared plainly that "the basis of any new international system ... must be the naval and air power of the United States Navy." - 99 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Attempting to provide a "theoretical" basis for his aggressive activities, Forrestal openly advocated the Hitler "theory" that war supposedly represents "the normal state of mankind." Such statements were mere hollow declarations. Attempting to realize quickly the general plans of Wall Street for militarizing the country, Forrestal promoted feverish activity aimed at reorganizing the armed forces. Hie efforts to a significant degree made possible the creation of the so-called Department of Defense -- the unified center which directs the aggressive military machine of the United States. James Forrestal was appointed Secretary of 'Defense." In. March 1947, urging the Senate Armed Services Committee's swift adoption of a. project to combine the armed forces, Forrestal declared that this project "will enable the United States to use its entire defensive force against any future enemy.. .to insure the agreement of foreign and internal policy, the civilian economy, and military demands, and will foresee the cease- less fulfillment of United States needs for raw materials." The international public estimated the true worth of Forrestal's feverish activity, which was aimed at militarizing the country, When it nicknamed it the "Forrestal war." The Dillon, lead, and Company investment bank, with which Forrestal Constantly maintained close ties throughout his stay in the Pentagon, had long since fulfilled numerous missions for the Rockefellers, the American "oil kings." When the Rockefellers organized the Arabian American Oil Company (ARMCO) to steal oil riches from Saudi Arabia, a company in which there was only one Arabian name, the Dillon, Read, and Company bank floated several loans for the Rockefeller oil companies on the New York Stock Exchange for $185 million. In one year alone (by far not the most profitable) ARANO paid the two Rockefeller companies $22 million in profits. At this time a large sum found its may to the Forrestal bank of Dillon, Read, and Company. It is not surprising then that all of Forrestal's activities smelled strongly of oil. While still Amsistant Secretary of the Navy, and later as Secretary Forrestal bought oil for the United States Navy from Rockefeller's ARMCO at $1.05 a barrel, When it could have been purchased at $0.40 a barrel. How mama of this money found its way to the personal account of Forrestal remains a secret. Forrestalls shady oil transactions caused quite a sensation. Com- petitors of Rockefeller oil companies opened a campaign arOand these trans- actions. But, as the New York Post reported on 22 May 1948, Forrestal hushed up the affair in the end. It is quite characteristic that statements, as a decisive argument against such investigations, were expressed to the effect that an investigation leads to the secret sources of American policy Approved For Release 2001/07/28 TC1619RbP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 and enables the democratic foreign press to "compromise," that is, unmask and dhow in an authentic, unfavorable light one of the inspirers of the aggressive American policy of the arms race. "the cold war." and the policy of force. * * * In Bethesda, one of Washington's suburbs, not far from aibreadlhighmay rises the sombre, tall, narrow, like an elevator, building of the Naval Hospital., Here on a Kay morning in 1949 on the veranda of the third floor was' found the body of James Vincent Forrestal. Be had jumped at night from an eleventh-story window. Thus did the former president of the Dillon, Bead, and Company bank, the great leader of Wall Street, the inveterate enemy of peace, the initiator of numerous imperialistic ventures of American monopolies end his life. But Forrestalti colleagues in the Dillon, Read, and Company bank are continuing his activities, which were inimical to the interests of the people. The diplomatic office-: of Douglas Dillon in Paris bearing the sign "United States Embassy in Paris" is operated in grand style. According to an August 1956 issue of United States News and World Revort, the staff of this embassy consists of 2,465 people (It). It is located in seven buildings and $11.5 million are expended each year for its mainte- nance. Special telegraph lines connect it directly with American 0,311;0413stef4 in London, Rome, Brussels1, The Hague, the Scandinavian coun- tries, Bonn, Tunis, and even Karachi. "The communications system," the magazine wrote, "testifies to the scale and complexity of the functions of the United States embassy in Paris, which are partially dictated by its geographical location in the center of Western Europe. This network was created ata time When Paris was the regional headquarters for ful- fillment of the Marshall Plan, When the United States was expending up to $5 billion a year in aid to many European countries. This network was expanded when D. Eisenhower directed his activities from Paris While creating the KATO army with the aid of billions of American dollars and weapons." The magazine noted that many small American missions are also found. in Paris, representing 15 US government establishments and organiza- tions, which fulfill obligations abroad Which the development of events demands as, for instance, strengthening American military power in the world. "Ambassador Dillon," the magazine concluded, "coordinates the activities of all American representatives in Paris." The Dillon, Read, and Company bank and its agents weave their in- trigues throughout the entire world. But the democratic people of the entire world keep a vigilant watch over this mischievous activity. -101- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Llat4311714""3-7; N. Hovosel'skiy on the -morning of 6 Angust 1945 an American heavy bomber dropped an atom bomb on the Japanese city of Hiroshima. Later a second atom bomb was exploded, this time over the city of Nagasaki. Tens of thousands of peaceal citizens were killed and maimed. Harry Tram, then President of the United States, gave the order for the atom bombing of these lapfanfs'i course, the barbaric maps killings in, Nagasaki and Hiroshima were not provoked. by any military necessity. The bombs were not dropped for the purpose of speeding the war's end. There was another purpose here -- to set the stage for atomic blackmail and to intimidate those who opposed American plans- to establish the world sapremacy of Wall Street imperialists, monbpoly in the field of atomic weapons was viewed by ruling circles in the United States as a reliable guarantee that these plans would be crowned.with success. But this monopoly had been in existence for only a short time, In 1949 the whole world learned that the Soviet Union had atomic weapons at its disposal. Soon everyone was convinced that the USSR was not only not lagging behind the United States in the production of new types of weapons -- atomic and hydrogen -- bat in some respects had'OaiStriPped it. '-However, this indisputable fact did not sober the American imperial- ists. They, stubbornly pursued the hazardous "policy of force," the strategy of lightning atomic war. Aircraft and weapons of mass annihila- tion are assigned the role of the striking force. The "air doctrine" of war has now become the official doctrine in the United States. "The doctrine of the future has been created," wrote Brigadier General D. 0. Smith of the United States Air Force in his book Mllitarv Doctrine of the Un.t.ted States. '"For the first time in our history the decisive role of the Air force has received official acknowledgement." Admiral Bedford, former chairman of the American Joint Chiefs of Staff, says that at the present iiie-inpdamental emphasis has been placed on the maintenance and Ute-Oi6dern aircraft Which is needed above all to perform offensive and 6feigive-operations and to sapport other forces. , Adoption of this doctrine by American imperialism is no accident; on the contrary, it reflects the current stage of its development, when, for the sake of its own excess profits, American monopolies are prepared - to commit serious crimes against all mankind. "The transition to a strategy of atomic air war," Herschel Meyer, a progressive American publisher, wrote in this connection, "completely agrees by accident' with efforts of large monopolies to obtain still higher profits. Monopolists have discovered that production of ordinary munitions provides, a mach lower rate of profit than experimentation, - 102 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28: CIA-RDP65-00756R000300270001-9 research, and production of superpower weapons...High military authorities in Washington recognize that the Soviet Union cannot be cowered, and that it is impossible to hamper four-fifths of mankind living in. Europe and Asia and alter their social systems, with guns alone. For this reason their aim ts to bring life itself to a standstill by calling forth vast destruction by means of hydrogen bombs which can destroy Whole cities in an instant. ? "They hope that war, resulting in vast destruction, will not only retard the material growth of socialist countries, but will halt the advance of other countries toward socialism; it will secure the preserva- tion of a status quo; and it will 'convince' mankind that henceforth those governments which follow the road to socialism will be plunged into war to their. destruction. Wall Street's plans for World War III and its decision not to par- ticipate_in land wars and 'not to place great emphasis on infantry,' reflect the historical fact that imperialism is losing power on land and. therefore entrusts its last hopes to ruling the world from the air." The essence of the modern military doctrine of the United States 443 absolutely clear. In the system of military blocs of modern im- perialism, the United States has concentrated.in its hands the producT- tion of powerful strategic aviation and aircraft for delivering atom bombs. They plan to use them chiefly from air bases situated around the Soviet Union. To their partners in the military blocs the United States has entrusted the creation of ground troops, combat or front aviation, auxiliary troops, placing greatest emphasis upon the development of West German .armed forces. .-:Often. repeated in statements of American political and military leaders there Is the opinion that American strategy must be based on the use of. atomic weapons, as they say, "for tactical purposes," that is, wtthin_the limits of battle fields and theaters of military operations. What is concealed behind such arguments? Considering the geographic remoteness of America, these rulers have considered the fact that atomic weapons would find their chief use above all on the territory of Europe and certainly far from the industrial centers of America. Mexican monopolists seemingly understand the reality of atomic counterattacka. and do not object if, in the course of armed conflict, millions of people and much that is valuable in countries to Which they are allied -- West Germany, Italy, France, England, and others -- are destroyed by these death-dealing weapons. Can these schemes oft "cunning strategists" be realized? EC, they cannot, It is now impossible to wage war without exposing oneself to counter blows, If one wants to strike atomic blows on an enemy, then he should be prepared to receive the same and perhaps more powerful blows. - 103 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 The chief threat to peace now comes from the United States. Aggres- sive circles in the United States do not want peaceful coexistence and collaboration among nations, They foster the reckless dream of world domination and therefore oppose any disarmament and feverishly prepare for var. Their chief stake now lies in building up atomic-aviation arms with which they hope to win in a fature war. But this stake of aggressive American imperialism can be considered nullified, for the Soviet Union, apart from all its other advantages, is not only not lagging behind in the field of armaments of this type, but, in many respects, has outstripped the United States. The decisive in- nuance of air forces and antiair defense troops has increased signifi- cantly with the Soviet Armed Forces. The Soviet Armed Forces now possess a sufficiency of different types of atomic and thermonuclear weapons, powerful rocket and jet arms of different types, and also long-range rockets. The party and government are directing special attention to the development of the armed forces as the most important means of ensuring the security of our motherland. The first-rate jet aircraft of the USSR is capable of solving any tasks which would confront it in the event of an, aggressor's attack. In spite of everything, however, American monopolists and the military clique in the Pentagon by no means want to part with their impossible dream of achieving "air superiority." As usual, Senator Richard Russell demanded of the United States Congress the creation in the coming years of "the strongest air force in the world." With each year, the United States government and Congress assign greater appropriations to military aviation and different atomic weapons, including intercontinental ballastic missiles with atomic warheads. Through the demands of atomic maniacs in the Pentagon and the Congress, the post of Assistant Secretary to the Secretary of Defense for Guided Missiles was even established, to which Edgar Murphy, president of the Esso Research and Engineering Company, was appointed. Atomic aviation generals now occupy dominating positions in the Pentagon. They cooly formulate plans of atomic war which threatens the mass annihilation of people and vast destruction in all countries of the world. These generals, closely connected with military-industrial monopolies, have gained mach greater influence in the policy of the United States. Who are these leaders of this "assault" atomic-aviation force which is preparing to repeat the crimes committed at Hiroshima and Nagasaki for the sake of profits of American monopolistic capital? General Twining. General LeMay? General Worsted. * * * - 104 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28: CIA-RDP65-00756R000300270001-9 The Pentagon in Washington, Room No 0-929. Behind a desk sits a "mem with four gold stars on his Shoulders, with greying hair, but dark- browed, with a square nose and a large jaw." Such, according to Time, is the appearance of General Nathan Twining, chief of staff of the American Air Forces. Be did not achieve this high post without reflection: the 60-year-old professional militarist enjoys the special confidence of Ameri- can monopolies. The son of a rich banker from the city of Monroe, Wisconsing Twining is committed to his class body and soul. A graduate of the United States Military Academy at West Point, Twining devoted almost 40 years of his life to a military career, of Which 30 were in the air force. It is said that the American pilot who dropped the atomic bomb decided to end his days at a monastery. But Twining, commander of this operation, has seemingly experienced no such pangs of conscience. Arguing furiously, he propagandizes atomic war as usual. In his first public address (in Dallas, Texas) after his appointment as chief of the Air Force, Twining stated that "strategic aviation bombard- ment of Soviet Russia is more expedient than operations against it from the East." Like other leaders of the Pentagon, Twining is an ardent proponent of the strategy of surprise attack andtka"strike't6tfirst.bldw"With nuclear weapons. "Striking-atAlintblole now promises much greater advantages to the attacker than ever before," declared Twining in his speech atthe congress of the Association for the Air Force in the city of Omaha, Nebraska. Neither the Soviet Union, nor China, nor other countries of the socialist camp have any intention, as is well-known, of attacking the United States. They have not built military bases around. America. HY talking about the "defensive" mission of American bases on foreign territory and about the readiness of the United States to "counterattack," American ideologists of atomic aggression want to delude the American people and other nations of the capitalist world. Twining considers American air bases on foreign soil an important weapon for realizing the aggressive plans of the United States. Here is what he said in an interview published in United States News and World Report: "Question: Do you consider it absolutely necessary to have bases situated quite close to the territory of the enemy for the purpose of performing frequent raids? Answer: I consider this highly advisable. Question: Does this mean that long-range bombers cannot cope with their missions? - Approved For Release 2001/07/28 : CIA-RDP2f5 -00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Answer; Jaw m,iesion will be more difficult and demand. more time for fulgUlientif,we are compelled to operate only from bases locatai within aur own, hemisphere." The growing defensive might of the Soviet Dili= and the entire camp Of democracy will not let the bellicose chief of the American Air Forces sleep placidly. Be is compelled to consider this power. His statements on this Consideration are quite typical. "We, of course, do not know everything about the Soviets," he said in the above interview, "but we do know that they are not lagging. If they want something and know firmly that they want, in ey opinion, they are prepared to go to any length to get it... We of course moist not assxne that they are not progressing in the field of long-range aviation, too.0 It amid seem that there is present here a telling, Persuasive argument in favor of giving up a "policy of force" and the arms race which is ruinous for nations. But no, for Twining and his chiefs this is only grounds for farther, more intensive military preparations and continua- tion of a feverish pursuit after a spectral "military superiority." Attempting to convince the peoples of countries in the North Atlantic bloc that 4 superior military force ostensibly remains, nevertheless, on the side of the United States, atomic-aviation strategists advertise such "new" means as gnided atomic missiles. In Twiningls words, work is underway in the United States to create an "intercontinental ballistic missile" capable of travelling at 10,000 miles an hour. "We must achieve the creation of suCh a missile before the Communists." But on 27 August 1957 4 T464 announcement published in the Soviet press told of the success- ful testing in the usa of an intercontinental ballistic rocket as well as the explosion of nuclear and thermonuclear weapons. ' Theglight of the rocket," said the announcement, "occurred at a very great altitude which, until recently, had not been reached. Traveling a tremendous distance in a short time, the rocket fell in an appointed area., T received allowed. :that it is possible to send rockets to any region on the earth. The solution of problems in the creation of inter- continental ballistic rockets makes it possible to reach remote regions without resorting to strategic aviation..." Atomic war is extremely dangerous for western countries with their heavily populated industrial centers concentrated in comparatively limited areas. This is fully relevant to the United States, General Twining knows this. But he does not care for the people or their interests. The atomic 106 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28: CIA-RDP65-00756R000300270001-9 maniac who dreams of a "push-button war" which he could wage sitting in his office, is prepared to sacrifice millions of lives of his compatriots to his greedy bosses on Wall Street, who consider war as a means of escaping from ruinous economic crises. "Even an attack on our large cities," declared Twining, NW matter bow terrible, cannot break us. We plan to win the war no matter how many Americans might be killed..." "This gives little consolation to people living and working in Boston, Chicago, Detroit, Washington, and other large American cities," dolefully observed the American journalist Shriner, to whom Twining expounded these delirious ideas in an interview. But these ideas provided General Twining new advancement. On 15 August 1957, he assumed the post of chairman of the Joint Chiefs of Staff of tbe United States, that is, the actual leader of all three branches of American armed forces. * May and Jane of each year, when the American Congress discusses and adopts a budget for the new fiscal year, is a period of especially frenzied military hullabaloo in the United States. Especially loud calls for strengthening the arms race are raised from the rostrums of both houses of Congress and their commissions, and from the pages of newspapers and magazines. Air force and other generals, Who distribute government con- tracts to industrial monopolies for military aircraft, atomic weapons, etc., have played a most active role in this propaganda in recent years. A significant number of American generals have been transformed over recent_years into direct agents of monopolies and their "lobbyists", with Whose aid Wall Street receives large military appropriations from year to year. Monopolies pay generously for these services. They appoint retiring generals to high-paying positions in industrial concerns. Examples are not hard to find. All top military leaders of the United States Who retired in recent years -- G. Marshall, Douglas MacArthur, Bradley, Ridgway,, Van Fleet, Clay, and many others -- now hold "cushy" jobs on the boards of the largest industrial monopolies in the United States. The incredible salaries Which the monopolies pay them is compen- sation for valuable services rendered. "A?,pew phenomenon after the second world war," wrote the liberal Aperican_weekly Nation, "was the mass movement of high-ranking military figures, even four-and five-star generals, to private industry, where high-paying administrative posts have been prepared for them. Companies have done this to hire their influence in military circles.... Thus, such a case is possible: an officer on the General Staff of the Air Force urgently recommends the purchase of aircraft from a certain aviation - 107 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 concern, although the airplane, perhaps, has provoked many arguments among the experts. Then, two years later, you find that same four-star general, now retired, in the post of a hieji-payed president of the corporation which manufactures this airplane..." This is one of the examples reported in the American press in October 1955. Thel4walldr(Xne concluded a contract for delivery of Fai jet fighters from the McDonnell Aircraft Corporation and Westinghouse. Al- though 11 of these airplanes crashed, killing several fighter pilots, the contract was continued for some time. An official investigation showed. that Rear Admiral Lloyd Inc son, former deputy chief of the Aero- tantics Administration of the Navy, (now retired) had been opposed to revoking the contract, despite the accidents involving the airplanes. Re explained that the opinions concerning the production of the companies involved were !mad. Bat then, one pleasant day in September 1955, Lloyd Nricaon went into retirement and assumed the position of vice-president of the McDonnell Aircraft Company. Before a Congressional committee he admitted that this position had been offered to him in. March 1955, approximately five months before his retirement. Just as the now retired generals once strove for monopolies, so generals now holding leading positions in the Pentagon are striving, with the Air Force generals headed by Twining taking first place. Congress appropriated $16.9 billion for the United States Air Force in 1956-1957. But for General Twining this was a small mnount. He called this budget gstingy." Outfitting 137 regiments of the Air Forces with modern equip- ment, he declared, requires a significant increase in appropriations for aviation, Of course, atom-monger-generals who fight for continuation of the arms VACS by order of the monopolies are not along. Senators, members of the House of Representatives, and also numerous press organs assist them. Take, for example, such a magazine as United States News and World Report. The inveterate wax-monger, D. Lawrence, owns it and is its editor. The magazine is closely associated with both the leaders in Washington and military-industrial companies, in particular, aircraft firms. Tbe latter generously finance this magazine, by publishing adver- tisements of their own products in it. Being at the same time a foreign political reviewer for the New 'York Herald Tribune, Lawrence, like many other journalists such as the Alsop brothers and Talbert, who is the special military reviewer for that newspaper, eystematically intimidates Americans with the threat, fabricated by himself, of a "Soviet air attack" and demands greater and greater increases in government expenditures for military aviation, atomic weapons, and "intercontinental missiles." * * * Approved For Release 2001/07/287 191k8-RTDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 General Curtis LeMay has served in American military aviation for over a qmarter of a century. The first seven years he flew in fighters and in 1937 selected bombers as his specialty. LeMay commanded a bomber squadron of the 8th Air Regiment of the United States in England and later was transferred to the Far East theater. It the age of 38 be became a major general (this rank correspond to lieutenant general in European armies). With the end of the war be commanded the Air Forces of the United States in Western Europe. From the end of 1948 until 1957 LeMay commanded the strategic air force of the United States. Now he is deputy Chief of the American Air Forces. 'rl'he headquarters of the Strategic Air Command is located at Offut _Air Base near the city of Omaha. From here the headquarters directs a bread network of American bomber bases situated on United. States territory aid. abroad, on the territory of countries dependent on the United States. American pilots and crews of medium and heavy bombers are trained on these bases. :Time stated that the American air force is preparing for bombing raids. ? It turns oat that crews of airplanes of the Strategic Air Command "describe. arcs of greater circles around the earth every day, in any weather, at altitudes of 12 kilometers and more, training and increasing tbeir "Once every three months," wrote Time, "the crew of each airplane performs a fatiguing training flight over a distance equal to that between the United States and Russia, and back. This is a realistic exercise to test the condition of flight personnel.... Each of the crews now has a definite objective assigned to him in Russia or in other countries. The pilots mast know by heart and to the smallest detail everything which con- cerns the fulfillment of their future mission in bombing these objectives and in returning the airplane to one of the American bases. Like his chief, Twining, LeMay is an advocate of the theory of the "strike the first blow." .A correspondent of the British newspaper Daily Mirror, who visited the Offut Air Base in February 1955 told about the atmosphere of war hysteria rihich reigns in the headquarters of the Strategic Air Command. and about the frantic war propaganda which is spread among pilots. He wrote, "The headquarters of the Strategic Air Command is located in Omaha in the very center of America.... Here doctrines supporting world superiority by means of aviation are studied, developed, and boldly enunciated... The first and most important responsibility of the Strategic Air Command is that it be in a state of readiness at any moment to begin a full atomic war. It could begin operations against Russia with- in two hours.... - 109 - Approved For Release 2001/07/28: CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 ?."1,1t has never ,occurred to American pilots to doubt who their enemy might be in time of war. It is Communiet Russia, Communist Russia, and 0ACtleOre ComMUnist Russia. They are absolutely concentrating their attention_q4 the SovittJanion and speak out against the Soviet Union." ,The Britt& correspondent might easily be convinced that in General LeMay he is dealing with one of the most zealous advocates of "preventive" war. LeMayls blunt calls for unleashing atomic aggression jarred even this worldly-wise journalist of a bourgeois British newspaper. "I told him," wrote the correspondent later. "that many of us in England consider that 10 hydrogen bombs dropped on 10 of our largest cities will undoubtedly destroy us, and we will be out of the war for good. I further said that, in our opinion, as soon as nuclear weapons are used we will be drawn into the war and that such a prospect is hardly attractive." " The uneasiness expressed by this British journalist, and shared by the wide masses of British people, is completely valid. England is now one of the chief centers of concentration of Strategic Air Command bases. More than 24 air bases, on which are deployed two Air Force divisions and other similar units totaling 45,000 soldiers and officers, are located in the British Isles. Brigadier General Stevenson, commander of one of these divisions (the 49th), declared in 1954 that his division was equipped with bombers designated for atomic strikes on the Soviet Union and that this mission was assigned to the division two and one-half years before. Otevensonts admission attracted the attention of the British public to the throat lihich .the presence of the Mr Force bases of the American aggressors Om their soil represented to the security of England. The BritiehMilitary writer, Liddell Hart, who has no special sympathy for the Soviet Pailla, gave this wise advice: "If American leaders want to start hurling atom bombs, our leaders must demonstrate greater wisdom in order to-Xeetraim them from this ... He who lives in a glass house should not throw stones." The network of American Air Force bases is expanding each year not only in England but in other countries of Western Europe. While the impudent frankness of the ZeMays, Stevensons, and other American militarists have 40.tunmasIced it, American propaganda is prone to depict these bases as a harmless means of 4ofonoo", against mythical threats. Thispropaanda is spread for purposes of deceiving the people. Every sensible person understands that United States Military bases situated around the USSR, China, and countries of the people?s democracy were not - 110 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 created, for defense because they are situated for mew from the Objectives which they must defend. These bases were created., of course, for purposes of aggressive strategy and for delivering blows with atomic aviation. According to information which is far from complete, the United States has no less than 100 air bases on foreign soil. There are espe- -dially.mamy bases in Western Europe. Within the blessing of the council -6f the aggressive North Atlantic Bloc (NATO), which adopted a decision in December 1954 on preparing for atomic operations in a future war, all these bases and the air units stationed on them have now been rebuilt in conformity with "atomic," that is aggressive, offensive strategy founded on the use of mass annihilation weapons. These American bases and; their airplanes were aimed at preparing for atomic war long before the NATO council's decision was made. It was no accident that the ruling circles in Washington entrusted the command of all these bases to a third -- after Twining and LaKay -- inveterate atom-monger from among the Air Force generals -- Lauris Norstad. * * * The bloody atomic slaughter, Which cost the lives of thousands of peaceful Japanese citizens, brought satisfaction to the ambitious efforts of 50-year-old General Norstad. "Tall, lean, with the appearance of a Hollywood film actor, Norstad was a first lieutenant when the Basis in- vaded. Poland. By the end of the war he was a major general," wrote Newsweek. Now Norstad wears the four stars of a full general. Until recently he occupied the position of deputy supreme commander-in-chief of the Air Forces, and now he is supreme commander-in-chief of NATO armed forces in Europe. Located at his headquarters in Wiesbaden, West Germany, Earstad took an active part in putting together an aggressive military bloc in Western Europe, and in. preparing West Germany's involvement in it. Each year he conducted large-scale maneuvers of air units of the United States and its West European satellites, achieving coordination of operations among them and their eventual consolidation into one air army under the American command. His chief demand was "More basest" "The construction of new bases and the modernization of those now in existence is the chief task which stands before me," Norstad declared in 1951. The general lamented that the creation of a network of bases was still proceeding "very slowly." "He considers that the chief fault lies in politics," wrote Newsweek in a feature story devoted to Norstad's activities, meaning by "politics" the resentment of social circles in Western European coun- tries against American occupation. Narstad admits, the magazine dis- closed, .that there is a very strong sentiment in Prance against any type of system of "European command." - 111 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 For this Peas= orstad demanded that American diplomacy exert greater pressure on the governments of Western European countries in order to break the resigtauce of their peoples to the building of American bases. Washington pressured, and more circles with symbolic images of airplanes appeared on the map of Western Europe. The French, West German, and Belgian peasants left their homes of many years, tore down their villages, and conxerted their fields and pastures into airfields to which the newest American planes, together with maintenance personnel, soldiers, and officers, came from the United States. The replacement of General Gruenther in the post of supreme commander- in-chief of NATO armed forces in Europe by General Norstad is new evidence that American strategists are shifting their chief emphasis to an atomic- hrdrogen war. Norstad. had hardly received his new appointment when he demanded "further strengthening of NATO's military might." Speaking at a press conference in Key 1956, he welcomed the decision of the United States to *apply armed forces of the North Atlantic bloc with new atomic weapons and emphasized that he considers the accelerated rearmament of West Germany one of NATO's Chief tasks. "It is vitally important," he declared, "that Germany fulfill her military obligations as soon as possible. The slow rate of rearming Germany is one of the weak points in the military might of NATO." Norstad belittled in every possible way the new peaceful act of the US54 -- the reduction of the Soviet Union's armed forces by 1,840,000 men. In contract to tbe coerce martinet LeMay, General Norstad at times loves to discuss his "ideological principles." He once said that "modern wars are waged not over boundary lines or economies, but over philosophical principles." Victories, he declared, are gained not by armed forces alone and, although economic aud military power "can be a basic ideological knock- out, the only weapon against any idea is a better idea." Norstad, never- thelessuissilept about what kind.of "philosophical principles" or ideas he holds TheAdeas,which inspire the people of our times are well-known: ideas of peace, cessation of the "cold war," and revival of international confidenceiy ending the arms race, liquidating foreign military bases on foreign salt and banning atomic and thermonuclear weapons. The realiza- tion of these 'ideas is now being achieved by the governments of the Soviet Union, China, and other countries of the democratic camp. The "ideas" of Norstad and other American militarists, together with ruling circles in the United States, are unremitting international tension, a "policy of force," brandishing an atomic bludgeon, inter- ference in the internal affairs of other countries, and subordinating them to American. monopolies. American generals are trying to educate American soldiers and officers in the spirit of these "philosophical principles" of international robbery. - 112 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 The American command is more afraid of ideas which reign Over the minds of modern mankind, ideas in the true sense of the word, than it is of fire. It tries in every possible Manner to prevent their penetration into the aril*, to remove them from the consciousness of American soldiers and officers, and to instill savage instincts in their place. Before' Us is a photograph published in Time together With an article about the American air force. An emblem is painted on a:fighter plane -- a circle with a figure of a tiger and an inscription on the border -- "School of Fighters. Every pilot is a tiger." "A tiger," the article explains, "is the simultaneous state of mind and precious qualities which Nat Twining tries with all his might to develop in pilots. A good pilot is a tiger; a very good pilot -- a hungry tiger. At one of the flying schools located at an airbase in Nellie, Nevada,the walls of the lodgings are covered with posters bearing the figure of a tiger. The striped beast- is arching its spine, preparing to spring on itsprey At several bases cadets, running out of barracks for morning roll-call, growl like tigers...." Such is the "ideological education" of American But the habit of American "aces", as Time irreverently calls them, is still not an indication of a high fighting capacity, 'Which is ineon, 04iyabli without deep ideological conviction, Without unshakable trust in the righteousness of onels cause. And thisis the very thing:Which American pilots or the American Armed Forces as a whole, do not and can- not have. American pilots committed unprecedented atrocities in Korea, but this did not save them from defeat. For this reason even the American press, in all its attempts to provide a strong advertisement for the American Armed Forces and above all the Air Force, was compelled time after time to admit that the "morale" of American troops is very low. Baldwin-, Military reviewer of the New York Times, acknowledged that ."there is not enough enthusiasm" even among military cadres. Luring the war in Korea, he dolefully narrated, it was revealed that 200 officers of the American Air Force, rebelling, refused to take part in combat sorties. Military service in the United States, Baldwin admitted, "is ideal for only a very small number of young men." In this regard, Time bitterly lamented the shortage of cadres in the Air Force. It cited the follOWing comment of General LeMay concerning the Strategic Air Command; "This entire machine can fall to pieces and fly off in every direotion in two Weeks." The reason? "People," the general answered bluntly. The policy pursued by the rUling circles of the United States of preparing for a new atomic war is unpopular among the American people. Like other peoples, American Workers Want peace; they know that atomic war Wthild bring them incredible disaster. Millions of Simple People around the world, including America, are firmly resolved to snare insti- gators of a new war and prevent them from putting their bloody projects into effect. - Approved For Release 2001/07/28 : CIA-RDP-80-756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 More. Americans Are now. sharing the opinions advanced by the American publisher?ILDIetldwilbkoerinhisbockThe Last Illusion. "The United States," he,wrote,,,"cannot win, no matter what type of war it wages against the socialist pimntriesc" for the basic calcnlations ofArneric44,4trAtegists are fomnded not ox the real situation, but on illusions. Illusion is a dangerous thing for those American strategists who dream of a "lightning" atomic strike,p4ainst the Soviet Union, Now there is no corner of the world where an aggressor can hide. Soviet Armed Force's are capable of delivering, destructive blows, on Any enemy no matter where he is or wherever he conceals himself. - ,w Soviet Union is steadfastly achieving agreement "on cessation of testiKAnd_the banning of atomic weapons, on the problem of die- armament 44 ,4 Whole, in whose positive solution every nation in the world is interested," stated 4 TASS announcement of 2? Amgast 1957, This announcement was respectfully assessed by the most sober, responsible circles of the United States. "Emssian military power has made a great leap forward since the explosion o1 the first Soviet hydrogen bomb in Aagmst 1953," the New York, Herald,Tribmne was compelled to admit. "IA the present time there is no defense against an intercontinental ballistic rocket carrying a hydrogen bomb." The TA,S,S announcement, said Senator Long, is a very serious affair." ,Tee, gentlemen American senators. This, truly, is a serious affair. -414dit.411 h4,.:04V00X,IorAmerican.atom-mongers themselves, if their bosses,and,inspirers gave some Serious thought to this serious affair, and if thy stop sabotaging the ban on nuclear weapons and disarmament, which the people demand. The Dirty Itork_of Allen Dulles V. Makhov , SP7,44 howl uneasily over the capital of a peaceful country which, though small, is proud of its independence from US imperialism. Foreign mercenaries burrow into this country in order to foist on it reactionary rulers andthe_henchmen of US monopolies. A. faction composed of military conspirators overthrows the legal government, hangs hundreds of democrats, and shoots representatives of any opposition, including even the bour- geois element. All this is done to: transfer the riches of the country to US magnates. In the dark of night a US plane stealthily threads its way toward the border of one of the countries of peace and democracy, and - 114 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 saboteurs, armed with poisons, demolition explosives, and addresses of contacts, parachute into a remote area. Behind all this dirty, mibsersiVe activity hides the hand of Allen Dalles. This is the business of his accomplices from the Central Intelligence Agency which he heads in Washington. An enormous staff of spies of the most varied specialties and masters of diversion and sabotage are active within the system of CIA. The activities of this headquarters of the American intelligence are Shrouded in deep secrecy. For purposes of conspiracy, the agency is located in 34 small, isolated buildings in Washington and 22 email buildings in New 'fork. As evidenced in Ameridan newspapers, the names of not only supervisors of separate services and Dulles' deputies, bit even the rank and file employees of the Central Intelligence Agency, are kept secret. Row many agents, large and small, work in CIA is not known. In the opinion of the more informed US newspapers this agency has 15,000 people at its disposal, including employees at headquarters and agents in the foreign network -- an entire division of spied. Information concerning the budget of this sinister agency is not published. But several US news- papers have reported that secret appropriations for its operations reach one billion dollars a year. Hundreds of millions of dollars Are officially and specifically earmarked for financing espionage, sabotage, and subversive activities in countries of the aapp of peace, democracy, and socialism. A. the US press has reported, for purposes of concealment, appropriations for "activities" of CIA are allocated by Congress within the badgets of various government departments and later transferred by them to the current account of the agency. Vat does the notorious CIA do and on what does it spend these extremely sizeable mime Let us hear the testimony of authoritative organs of the US press, Shich are informed on the activities of Washington's masters of espionage and sabotage. In January 1953 the Washington Post, disturbed by comments unfavorable to US policy which were stirred by provocative activities of CIA abroad, published an article which sharply criticized its methods. The newspaper declared in plain terms that CIA was engaged in "black," that is, false provocative propaganda. "CIA serves as a refuge for dare-devel cutthroats... Through their activities these masters of their trade," the Washington Post, pointed out, "are able to start the ball rolling in the field. of foreign policy -- to cause trouble and even involve a country in war." These are the affairs of Allen Dulles' agency. - 115 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 ,IThe newspapwr cited several examples of US intelligence (by far not the Most indicative) in Which it mentioned the financing (and undoubtedly "ideolOgiCal and practical" leadership) of neo-Nazi organizations in West Germany. The, Burmese and Siamese, declared the Washington Post, suspected that CIA incited the defeatedChiangKai-shek remnants to make raids on China through Burmese territory. * * * ;numerating by dint of broad publicity all these facts which occurred at different times and Which were far from comprehensive of the entire subver471,40,ivitiee of the agency headed by Allen Dulles, the newspaper grigy concluded that the Central Intelligence Agency "can bring trouble" to the United, Atates! After a short time Representative Mansfield (Democrat, from Montana) spoke to the House of Representatives on the very same subject -- the provoCative? incendiary activities of US intelligence. pie .US legislature declared that from the very beginning CIA engaged itself in: very secret activities -- espionage -- and rendered assistance WsUOversive elementsincountries of the people's democracy. This pronouncement, Whose purpose was undoubtedly to prevail upon US. agents for greater secrecy, contained a warning that the activities of CU and its inIerference in, the affairs of other countries was provoking -"many private complaints" in countries of the capitalist world which are also be object of the fixed attention and secret activities of Allen Dulles' agents, Neither the Congressman's hypocritical speech nor the feigned lamenta- tions of "liberal" newspapers concealed even the slightest part of those dirty affairs on which Washington leaders waste hundreds of millions of dollars. * * * 4411X04 41 Washington, at the White Haase, the military cabinet of the United States, the so-called National Security Council, convenes at a long, narrow table resembling a diamond, truncated with sharp corners. The President of.,the United,States presides at these meetings. The Vice- President, .the Secretary of Defense, the Secretary of State, the Secretary of the Treasury, and the director of the "Defense" Mobilization Administra- tion AP,ke part in the discussions. A group of "consultants" lies under the National Security Council. General Twining, representative of the Joint Chiefs of Staff, Allen Dulles, Chief of the Central Intelligence Agency, and others make up this group. There is a small staff of experts and technical workers under the control of the Council. Approved For Release 2001/07/2i: C11-14DP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Intensifying preparations of the US military machine for a new world war, .of Which banks and military-industrial concerns are dreaming, the US Congress is 1947 passed the so-called law on national security. Then :and there the narrow-minded military cabinet, the Rational Security Coun- cil. Was created. What does this cabinet do? What state matters does it settle? In October 1950 the Council examined the general problem of the five-Tear program of the "Cold War" against the Soviet Union and Countries of the people's democracy. As newspapers then reported, it was decided that the US would spend 200-250 billion dollars over a five-year period on armaments, assist in the creation of a "European argryn of 75 divisions, and supply arms to countries located on the borders of the "Soviet zone." ? Here, based on the information from the US press, is snot of prob- lems on Which the Council labored during 1953: an embargo on maritime shipments to the Chinese People's Republic; a complete ban on trade with "Communist countries"; plans to interfere in the war in Indonesia; And the military budget. According to reports by the American press, the decision concerning the anti-national revolution in Guatemala was made at a meeting Of the National Security Council on 17 June 1954. The Council ratified a program for sharply expanding the US armed forces. Many aggressive plans have been approved at meetings of the National Security Council. In May 1954 the New York Post told of a meeting of the Council at Which the plan for US operations in Indochina was discussed. At this very meeting the decision was made to create an aggressive military coalition of colonial powers (the so-called "South-east Asia Pact -- SEATO"). In the beginning of June of that year plans for expending and continuing the. war in Indochina were examined here. Thus, the Council determines the foreign and military policies of :the, US and coordinates the activities of US diplomacy and the military machine. How does one explain the narrow-mindedness of its members? Why are the leaders of the US government, with the exception of the secretaries of State, Defense, and the Treasury, not always permitted to take part in its discussions? Because matters dealt with at the meetings of the Council are top secret. The National Security Council long age became -a hotbed of plans for subversive, sabotage activities. For this reason the Central Intelligence Agency and its leader, Allen Dulles, play s) important a role in the affairs of thii Council. The journal United States News and World Report acknowledged that the reactionary revolution in Guatemala was brought about through the efforts of CIA. Other organs of the US press announced that the intervention in Guatemala -- inspired, organized, and supported by the US -- was for a - 1 Approved For Release 2001/07/28 : CIA-RDP615-700756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 long time beaded by US intelligence agencies. The New York Tines reported then that, "Allen Dulles -- head of the Central Intelligence Agency.... has kept watch over the situation in Guatemala for a long time." The newspaper told of the "active operations" of his associates in this country. Peurifoy, former US Ambassador to Guatemala at the time of the revo- lution, is known for his close association with CIA. As the journal Newsweek wrote. "He was not sarprised by the events resulting in the collapse of the Arbens government." When it appeared that the situation of the Guatemalan government was completely stable, Peurifoy asked if disorders would. soon break out. "I will not indulge in predictions," be said, "but I will tell you one thing. We are now preparing invitations to our Fourth of july reception and we will not include one iember of the present government on that list." In plain terms the London Times declared that Peurifoy "operating behind the scenes, contributed math,. to the ,overthrow of the Arbens government." , Adapting to a new situation, the National Security Council in the fall W 2.9,56 approved, in the words of the US press, the idea of expanding contacts with the Soviet,Vni.on in the field of culture and art, with the obvious, openly stated purpose of using these contacts in the interests of US intelligence agencies. ?Ihrw.gh the active participation and incitement of US intelligence agencies the anti-national mutiny of the Hungarian counterrevolution was organized,. To _a great degree it resulted from rabid, malicious urgings on t,440 part of _such US propaganda organs as the Voice of America and -114410 Pree_Europe, which are financed, according to the US press, by the US, espionage and sabotage agency. .Such authoritative press organs as the Chicago Daily News and others were compelled to acknowledge the subversive role of these radio services and their connection with US intelligence. -J1 With the first shots of the fascist putschists resounding in Budapest, CIA in Washington began working at full speed. General Donovan, former head of US intelligence during World War II, was quickly sent to Vienna. His task consisted of supplying arms to the fascist putschists and organ- izing assistance and support for them. Acting under the guise of leader of the se-called International Rescue Committee, Which coordinated and directed the activities of the emigrant, fascist remnants, Donovan roamed along the Hungarian borders looking for less protected points through which it would be possible to supply the poorly armed counterrevolutionary bands whiol; were stirring up revolt against the national power. They attempted to. impose on the Hungarian people the power of Hungarian and foreign capitalists and landowners, the power of Horthy, listerhazy, and the obscurantist Mindszenty. - 118 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Ile counterrevolution collapsed. It was blocked by the Hungarian people with the brotherly support of the Soviet Union. Donovan returned to Washington with nothing for his pains. But in an interview with press correspondents he again urged that arms be supplied the fascists. As evidenced in the Washinaton Daily News, in answering the questions of correspondents, Donavan declared that the best means of assisting the Hungarian revolutionaries was "to supply arms to those who are still fighting." In answer to a similar question he urged the US to do every- thing in order that "the battles in Hungary would continue." In all these operations of the Central Intelligence Agency a dominant role was played by Allen Dulles -- banker, diplomat, and leader of the agency Which united and coordinates all types of American military, politi- cal, diplomatic, and)aconomic espionage. The activities of this sinister agency of espionage, sabotage, and terrorism are directed not only againet countries of the camp of peace and democracy, bat against the satellites and "allies" of the US. As the United States press has reported, the espionage-sabotage "service" of the Ritlerite intelligence officer; General Reinhard Gehlen- lives on in West Germany on American dollars -ander the guardianship of By a military agreement concluded between the US and Thailand in October 1950, a large center of US espionage was created there. Sheldon, the US Military Attache, supervised it. Special courses for training US agents are given in Chiang Mai in the northwestern part of Thailand. All espionage work in Thailand was headed by the hardened intelligence officer, Genera1U-rsicthaaman,who served there until recently as ambassador. Agents of the US espionage service operate everywhere including the territories of US allies -- Britain, Prance, Italy, and other countries -- to the detriment of their national interests. It is no accident that Allen Dulles, a specialist in international ties of American monopolies, heads this ramified system of espionage, proVecation, and sabotage. Wall Street has always given great attention to international espionage. As regards Allen Dulles, being in the service of American banks, he long ago became famous as a scout of monopolistic US capital. * * * "Allen Dulles," the New York Times Magazine once announced, "began his activities in the field of espionage almost immediately after his graduation from Princeton University. This was in 1916 when, as a 23- year-old employee of the US Embassy in Vienna, he was commissioned to - 119 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 to swim contact with dissident forces (i.e., dissenters) in Austria." The fasten Post reported that Allen Danes brought with him into CIA imagination and. zeal plus a bent for adventure.* Biographies of Allen Dulles assert that from his birth he was pre- pared. for diploiatic pursuits. Dulles? grandfather, John Watson Foster, served. as Secretary of State under President Harrison and. earlier was US emissary to Mexico and Tsarist Russia. Allen Dulles' uncle, Robert Lansing, a great advocate and. attorney of Wall Street monopolies, served. as Secretary of State under President Woodrow Wilson. In 1910 Allen D.t11es was admitted into the US diplomatic service. Secretary of Hmbassy in Vienna, Bern and Berlin, and finally chief of the Near last Section of the State Department -- such was the impetuous ascent of Dulles up the ladder of the US diplomatic service. In. 1926, appointed adviser of the US Embassy in Peking, Dulles resigned and. entered the law firm of Sullivan and Cromwell, one of whose owners was his older brother, John Foster Dulles. J. Ap firm of Sullivan and Cromwell established a reputation as legal steward of many US monopolies and banks. La_ r, the US trade union news- paper, reported that a fee of millions of dollars was nothing remarkable for this firm. Lawyers of Sullivan and Cromwell formed cartel agreements, loan. operations, mergers, and. reorganizations of large monopolies. Before the almond %rid Mar, the firm of Sullivan and Cromwell actively assisted the Bri,tish affiliate of the German banking house of Schroeder in inten- sifiring its financial operations in the United States and. expanding its Hex ToFk`akfiliate, the John Henry Schroder and Company Bank. John Poitir. and. Allen Dulles, Partners and. co-owners of this firm, became board. members of the New York Schroder Bank. Sitting solemnly in an office of the firm? s bailding on Wall Street, Allen Dulles did not lose touch with the diplomatic machinery of the US. In. 1,927 he WEI legal adviser to the US delegation at the three-power maritime conference. His duties included preventing anyone from limiting the siale and ,sphere of operations of the US Navy to which the oil empire of lioc,ksfe3.1er supplied many millions of barrels of oil. Dulles also serves). ALdAr 1,tier to US delegations at disarmament conferences in 1932 and. 1933. If one is to judge by the results of these conferences, which prometed not one iota of armaments reduction, Dulles and. his colleagu.es on the delegations fulfilled. the order of American monopolistic capital which attempted, thereafter to make a fortune in arms production. The exploed.on of imperialistic contradictions, which kindled the flame s;tf the World War II, aroused. great uneasiness on Wall Street. Monopolies wanted. to conceal from the public their Secret ties with the criminal German concerns which fostered. and unleashed the war, and at the Approved For Release 2001/07/28 :CIALFRDID65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 sometime maintain these ties in order to divide the profits with German monopolies after the war. Not only US banks were concerned with this problem, but German monopolies as well. At this time, in October 1942, Allen Dulles was sent by DB monopolies to serve in the US intelligence orgaditation, OSS -- Office of Strategic Services. He was swat to one of the most important areas, to head the OSS section in Basel. This selection was no accident. Located in. Basel was the so-called International Savings Bank, created in. 1926 in connection with the 'Young Plan" for effecting operations between German military industrialists and the US and British banks Which financed them. Three German bankers sat on the board of this bank daring the war: Baron Kurt Von Schroeder, president of Hitler's Reichebank; Walter Funk, minister of the German econoty;-andHermaniSchmidt, president of I. G. larbenindmetrie. The US bank we represented by three members of its board. The Well Street deputy in this bank was its president and chief director, ThomotMaittrick representing the Morgan. First National Bank of New York. Q. D. White, then special consultant to the secretary of the US treasury, gore an evaluation of the activities of this bank. "Germans control it," he declared on 23 November 1943. "The American president of the bank conducts business with Germans, While at the same time our soldiers struggle with Germans on the fields of battle." In the yammer of 1944Aolittrick himself told a United Press correspondent the following: "We will not permit the machine to stop. You know that when the armistice comes, former enemy powers may be in great need of such a powerful tool as the International Savings Bank." To this one could add that "enemy powers" also needed the bank during the war. It was mainly throne* this bank that German monopolists estab- lished contact with Allen Dulles during the period when the inevitable destruction of Germany on the Soviet-German front became evident. In February 1943 (after the defeat of the Germans at Stalingrad) none other than Allen Dulles, going under the less attractive nickname "Bull," conducted on behalf of the US government negotiations with Prince M. Mohonlohe, Who was close to the ruling circles of Hitler's Germany and acted as Hitler's representative under the nickname "Peals." Dulles, wielding great power, assured him that "the German state must continue to exist as a factor of order and rehabilitation." Re- peating Hitler's nonsense, Dulles declared that "the expansion of Poland to the east and the preservation of Rumania and a strong Hungary would serve_to,aupport the creation of a cardon sanitaire against Bolshevism and Panalavism." Thus Dulles acknowledged the claim of German industrial- ists to. supremacy in Europe. Notes of a conversation discovered among documents of the Gorman Ministry of Foreign Affairs state that "Bull is more or less agreeable to the state and industrial organization of Europe Approved For Release 2001/07/28 : CIA-RDM-60756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 onj4ebasis ofjarge areas, suggesting that a federated Greater Germany (like_the,US) with a Danabe confederation joined to it will be the best guarantee of order and rehabilitation of Central and Eastern Europe." HeieLzihen is recognition of Hitlerss fundamental plans for "organizing" Europe.. 44s, daring the war Mr. Allen Dulles labored over the realiza- tion of such adventurtstic_plans in Basel. e _purpose of these plans was to reach agreement with the Hitlerites _gond:440 a_separate peace with them in order to preserve the German millitaryrmachine, save it from destruction by Soviet troops, and nee it in, theLdtre against the Soviet Union. BIt_was hoped to realize this sabotage by organizing an attempt on Hitlarls life and staging a "coup" in Berlin. For this purpbSe Dulles keptim-touch with prominent figures close to Hitler. According to the - ,11,P press, Allen Dulles was informed of all plans for the Attempt on Hitler's like" through Giesevias, German vice-counsel in Bern. After the war Dulles headed the OSS section in West Genie:my'. %is duties were to strengthen and expand the position of US capital in the 0l-man-economy. Speaking at a meeting of US bankers in November 1946, Dulles declared: "We mast play a leading role in the rebirth of the German economy in order to stabilize the economic position of the 'US by establishing control over the German economy and assuring US firms of Actlittrable profits." Fulfilling this task of US monopolistic capital, Alien Dulles had not forgotten his own personal, mercenary interests. With the active Assietance and cooperation of the Nazi bankers Schacht and Schroeder-, he bought up shares of enterprises excluded by control groups of the Amerioanlxmit of the supreme commission of the I. G. Parben and Verein,i, igte Stahlwerke concerns. ,.'17P_WNPer-intelligence officers and super-spies of Allen Bailees agency conducted their subversive sabotage work with great thoroughness. More fandswerkallocated,to_Dalless CIA than to the State Department; the most qualified cadres of the various US espionage services were placed at his disposal. , Central Intelligence Agency", the journal Colliers once. reported to OA 1719adeTe, "is an. agency consisting mainly of intelligence officers of tie Arm, Navy, and Air Force intelligence services. Their diplomats and attaChes send from countries in which they are accredited allinforma, tion_Which they gather in these countries... CIA is commissioned to hire, train, and place in foreign countries secret agents who mast perform 540 percent of the dirty work connected with intelligence." Approved For Release 2001/07/28 :-CIV-RIIP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 "CIA," Colliers related, "plants its people in other countries as consulate workers and other less important official representatives." The journal gave examples of CIA leaders publicly announcing "Who their agents were in an embassy and what posts they occupied." It is an interesting circumstance that When Allen Dulles was appointed chief of the OSS section in Switzerland during the war, according to the New York:Times Magazine, "he was, for cover purposes, held to be a special assistant to the US ambassador in Bern." The military reviewer of the Now 'fork Times once wrote that there are many CIA spies among US workers abroad. "Representatives of CIA abroad," wrote Baldwin, "An every case are in fact connected to US embassies and usually avail themselves of State Department communica- tions." The "means of communication of the State Department" are at the dis- posal of the organizers of espionage, sabotage, provocations, and revolts. For purposes of concealment they are listed as diplomats at US embassies and are authorized to "hire, train, and place secret agents in foreign governments." Allen Dulles' agency makes wide use of this ramified system of espionage and sabotage to shover the territory of the Soviet Union and other countries of socialism with its agents, who are elpplied with arms, Counterfeit documents, poison, ciphers, and secret radiotranamitters for reporting information from spies. Captured and exposed agents of US -imperialism, as well as those agents Who gave themselves up to the motherland and were thereby pardoned, recently told the Whole world about their foul activities. Their stories have taught the Soviet people to maintain sharp-sighted, watchful vigilance against the intrigues of enemies of peace and happiness of peoples. , Alt the ruling saboteur in Washington is not only occupied with plotting secret espionage activities. The organization of a police service and the struggle against national movements throughout the entire capitalist world are also subjects of his concern. In October 1955 Dulles addressed the 65th annual congress of the International Association of Police Chiefs (it so happens there is such an organization) with an appeal to study the police business in order to be ever ready to crash the onslaught of national forces everywhere. The conference of heads of governments of four powers in Geneva in 1955 had hardly concluded when Allen Dulles demanded, "Don't yield to the spirit of Geneva." 123 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 In the interval between hi narrow, departmental activities the younger Dulles supervised the state of affairs in the field of atomic and naclear arms. In June 1956 be accompanied Admiral-Banker Lewis Strauss, head of the US Atomic Energy Commission, to the Pacific Ocean area Where US atomic and hydrogen bombs are tested. 'Tension 1.1.1 international relations is relaxing. Socialist and workers parties are making new steps toward unified action in the struggle against reaction, poverty, the armaments race, high taxes, and the danger of war. But Allen Dulles is dashing around to the Congressional commis- sion for investigating "un,American activities." In a speech published on 1 September 1956 he demanded, "How it is impossible to ignore the danger of parliamentary compromises with Communists." The hated system of colonialism is crumbling. The peoples of Asian countries led by an impassioned striving for peace, a better life, for science, light, state independence, And soveriegnty, are uniting in a zone of peace. Allen Dulles is not sitting placidly in Washington. In September 1956 he set out on a round-the-world tour. His itinerary included India, Indonesia. Australia, the Philippines, South Korea, and. Japan. Oddly enough the capitalist press writes very little on the con- crete purposes of this trip. The Indian newspaper Blitz gave a Slight glimpse into the deep secret behind this Voyage. Allen Mullet:: and his associates, the newspaper noted, travelled through countries of Southeast Asia and the Par East in order to reorganize the activities of the Central Intelligence Agency on the basis of "materials" obtained locally. But this tour of the master of provocation and sabotage has not found syMpathy and approval. His airplane had no more than landed at Djakarta when representatives of official Indonesian circles promptly announced that A. Dulles was not a guest of the Indonesian government. It is very necessary to soothe public opinion Ada& is aroused and incensed by the appearance of an old enemy of the Asian people. It is possible, perhaps, to appease public opinion temporarily, but it is impossible to decette the watchfulness of the people who vigilantly protect their own achieve- ments. The perspectives of Mr. Allen Dulles and his agents are joyless: espionage, sabotage, and other means of waging of Wall Street's secret war Cannot be effective when nations resist them. A saboteur can destroy a dam and poison water in a well, but he will never succeed in destroying the inviolable will of people for a new, bright life and returning them to slavery under the masters of the Dulleses and their bosses on Wall Street. No matter how Allen Dulles and his division of agents try, their activities are inevitably doomed to failure. - 124 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 The Atom--Monger, Senator and His Sermons B. Leontlyev -- Exclude the Soviet Union from the United Rations. Sever diplomatic relations not only of the United States but all capitalistic governments with the USSR and other socialist countries. , Refuse trade with the Soviet Union and countries of the people's democracy. Use economic sanctions against the USSR all4 her allies. In the guise of creating "international volunteer forces," launch an armed invasion into Hungary. All these suggestions were loudly and openly proposed by Senator Knowland of California in November 1956 when a wild, provocative campaign against the Soviet Union was waged in the United States and other coun- tries of the Atlantic military bloc, in connection with the failure of a counterrevolutionary revolt in Hungary. Indeed, this senator had proposed such suggestions many times earlier, advancing implacable, aggressive, misanthropic appeals. Any circumstances and events regardless of their character or trend were used for this purpose. Senator Knowland grieved at tidings of the strengthening of world peace and rejoiced at each aggravation of international relations. He is, in the fall sense of the word, the most thick-headed, inflexible preacher of preventive, that is, a completely uncalled for but in his opinion "necessary," war against the camp of socialism and democracy. Rowever, it would be a mistake to view the senator from California as some kind of "crank," "eccentric," fanatic, or even a ludicrous amateur in politics of the United States of America. No, this prominent figure of the Republican Party, the leader of its faction in the United States .Senate is'one of the most influential members of the ruling groups in this country. He expresses his pinions more frankly, more rudely, and more cynically than officials of the American government. Inowland is a phenomenon deserving the public's attention. His impetuous career is characteristic of modern America. Such people move forward in the United States. The atmosphere itself -- increasing reaction in the North Amerioan state, the situation of war hysteria, and the arms rade which enriches those Who actually rule America -- gives rise to the Knowlands. William Pife Knowland is not simply an enemy of peace. He is a preacher Of war. Approved For Release 2001/07/28 : CIA-R-Dlleg-0-0756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 &lowland is an adherent of the theory that peaceful coexistence of capitalism and. socialism on the earth is "impossible." He furiously defends the "doctrine" of political war against the People's Republic of China. He has threatened. to resign if China is returned to its legitimate seat in the UN. No coexistence whatever with Communism is Knowlandls motto. Only capitalism, he asserts, mast exist on the earth. As long as somehwere in some' Country socialism is building, as long as one nation lives in a new way which does not recognize capitalistic systems or the "leadership" of the United. States of America, capitalism cannot be confident of its future. All historical changes which have taken place in the world since the Great October Socialist Revolution in Russia, in the opinion of this Senator, must be completely liquidated. He will not agree to anything less, you. see. This symbol of faith," so close to the hearts of monopolists, which advanced. Kneil*d to the position he now holds, made him leader not only of tb!. epub11can faction in the Senate, but made him the leader of the extreme, it'Wind ef the American bourgeoisie. in:7?14-andis career was, indeed, a dizzy one. In all the posts which Knowlaa'aubssequently held he invariably was the youngest person who had. 5u ch Ch,a position. In the American biographic reference book, at,... ;.,,, ptcrai?h,r, the word. "youngest" is repeated many times in connec- tion with iiis name. "Youngest" member of the Legislative Assembly of California in 1933. "Youngest" chairman of the National Committee of the Republican Party in 1941. At the age of 49 Knowland was considered. the most influential figure of one of the ruling bourgeois parties in the United, States. In 1953-1954 he was leader of the Senate Majority and sine 955- leader of the Senate Minority (the Republican Party is now the mi*ority). , , __ !Mat As, the ideology of the &lowlands and all who stand behind them? What_ .s the ;foreign policy advocated by the sedate, influential group within the ruling clique of the United. States of America? Thexiorigin and. purely commercial interests of the Knowlancl family are of,..'great 's1.0aiticance in understanding the ideology of the "young" senator a4d'bie course in international policy. .. _ The 13Q33, of a great businessman and newspaper owner, William Knowland became one of the prominent political figures in California very early. ,... In 1945, at the age of 37, he became a member of the United States Senate. This advancement teok place without the participation of California voters as the goverhor'of the state appointed him to the post of the late Senator R. Johnson. - 126 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 It wa,s,hardly, by accident that this "happy o-pportnnityn befell ienowland. The capable young go-getter energetically supported the Republican governor of the state of California, E. Warren. This su.pport had some meaning: William Know3.and and his father, Joseph, controlled. the Tribe.ne, an_influentiai newspaper in those areas pu.bllshed in Oakland, Warren dAd not forget his sponsors. In appointing Knowlextd to the Senate, Warren had. merely repaid his political debt. ? Thus the advantageous position of his father in state political ciiOleS benefited Kn,owlandis life ,and. career: Thus this prospering American exploited. the Well-knOwn fact that in the United States the preUe belongs to big capitalists, bosses of financial capital and is used by them for their own mercenary interests. The ee0ond essential circumstance conneCted with the rise and, personal _ interests .?f the senator lies An the fact that numerous firms in California, of which he is even now, considered the director, have always been, interested. in the Par East market particularly in China. 1945, when Knowland became a senator, was not only the year of victory over the German and. Japanese aggressors, but also the year of the inten- sive economic penetration of the United States into China, which was then ruled by the Chiang Kai-shek clique. This, vast countxy represented, to ? American monopolists, a new "Eldorado," an inexhaustible source of profit, an almost gratuitous labor force, and a favorable sphere of capital invest- ment,. One-sided agreements concluded by Chiang Kai-shek with the United States government, it appears, transformed China into a semi-colonial American territory many decades before. At this point all American com- petitors were forced out -- Japanese, German, Italian, and., to a large degree, British and French monopolies. 1 But the first years of Knowland.? s "big" political activity coincided with the great anti-imperialistic war of liberation of the Chinese people and with, the d.ecisive defeat of the corrupt Kuomintang clique, Which was exiled. at last to the island of Taiwan. The senator from California, being vitally interested in the profits of American companies which have long enriched themselves in China and throughout the Par east, became the acimowledged leader of those forces which invariably supported and , , still support the Chiang Kai-shek clique, which in turn exerts great influence on the United States Congress. The nickname "Senator from Formosan has stuck firmly to Knowland. , Together with California plant owners and. bankers, he is interested in seeing 'that China never beeomes a free, sovereign country and that it remains under tile control of American monopolies as in the past. - 12? - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Knowland.,is the most malicious, uncompromising enemy of the Chinese people., Ea is famous for his anti-Chinese speeches both in America and abroad. But it would be incorrect to consider that, Knowland' a hatred of the People? s Republic of China is the sole and chief motivation behind , .? , , his political activities. This hatred, like his mercenary personal interests, is merely the seasoning in a much keener dinner, merely a graphic contirMation of the class base on which all aggressive American policy, the policy from "a position of strength," is founded. 'rep, it was no accident that this prominent capitalist, smart operator and careerist and dalifOrnia senator became the leader of the imperialistic , cliqUe in the United States and. one of the leaders of the "war party." The "loss" of China and significant portions of Indo-China, the "loss" of countries of the people? s democracy, as .American governmental. figures and. pampleteers prefer to express it, was painfully received by monopolies of, *mkt/nit-Oct States which determine the policy of this government. The arfived at their own special conclusions from these great events in world- history.- 'These conclusions formed the foundation of all the malicious appeals of American militarists for strengthening the arms race and halting the process of lessening world tension.s. Eere are -these "conclusions." Itioaand- rejected the -idea of coexistence of different social systems on^ tarth One Of peaceful competition among them. He spoke' out many times subject, arousing alarm time and. again in the bourgeois, '?al1y the British, press. He was repeatedly called. Upon to refute the -de9-rooted Opinion that in fighting for a "preventive" war, he propoiret; in essence, a War for achievement of American world. supremacy. Bit his "refutations" only confirmed this opinion. , In it December 1954. issue, the New York Timek Mae,azine published an ntervlew,e9it1t1ed "Know/and on United States Foreign Policy." This, you please, was the most complete, most frank statement of views on this idioloiy of a third world war, barely concealed by hypocritical phrases. -"A meeting with the Soviet Union on peaceful coexistence," the senAtOr' declared in it s interview, "would. be a fatal mistake." Knowland. wants neither a meeting nor coexistence itself. And Knowland. did not change his position even after the Geneva Conference. On the contrary, he began to defend and propagandize it more widely and more violently. Why l 3i4acense by the term "coexistence" Comnrunists imply peace and the peaetul collaboration of governments of different systems. This is un.- accePtible for Knowland 'because "coexistence will mean legal and moral recognition of the iron curtain which now exists." - 128 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 These words of the "Senator from Fromosa" on the "iron curtain" need. explanation, for not everyone grasps his allegory. In this case, by "iron curtain" the senator meant the mon-artificial curtain created by imperialistic countries around the states of the camp of socialism and democracy. Knowlan&opposes "legal and moral" recognition of the camp of socialism and democracy, the recognition of the right to life under the socialist system. In this sense he formulates his program quite clearly: if the United. States agrees to peaceful coexistence between the two systems, then, by this fact alone, it renounces the intention of destroy- ing the other, non-capitalist system. This Champion of preventive war wants to "save" the peoples of the democratic states from socialism, national democracy, and. national independence. Loathsome hypocrier has always been one of the distinguish- ing dharacteristics of imperialists: they have not committed one crime against freedom and independence Of nations, without peiforming masses, without praying to God, without proclaiming throughout the entire world their devotion to "freedom," "democracy," and "equality." Knosaand does not agree with the genuine independence of countries of socialism. Be wants to "free" them, that is, enslave them. True, to a direct question from a journalist, the senator answered cautiously, "This does mean, exclustvely liberation by means of armed fordes." Not exclusively, hut, it seems, preferably. However, there follows an Oilanation of - other !'methods" which differ little from war, althoUgh they are termed "establishment of contact" with American secret agents within these countries. For experienced readers of the New York Times Magazine the senatorle Aesopian language is understandable. He blandly and frankly states his Opinions. Expanding on the benefits of severing diplomatic relations with the USSR and the fact that the United States "does not feel animosity" toward the Russian people, Knowland declared that it cannot consider the Soviet Union "as having the right to occupy its place among law-abiding countries of the world." This means the Soviet Union was established "illegally" and that the senator does not consent to granting it the "legal" and "moral" right to existence. This is the first and fundamental point of Knowlandls "program" to which all the rest are subordinate. - 129 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 The Californian senator and his group exert great influence on AmeriOansolicy. They express the will and opinion of the all-powerful 4114924.04.100hopolies ? the actual bosses of the country with whom the PzeuldeAt?and. the secretaries reckon. If Kalov/land demands not a mo3,34f.14ation but a further aggravation of international tension, it mean.s this is the demand of American monopolistic capital* Ifaithful to his basic "program," the senator, in connection with the than so.atemplated four-power negotiations in Geneva, demanded, in May. ; '19255,9 int ertere ncjo. 42 _the affairs of countries of the people's democracy and. 4etac .);tpeart of several union republics from the USSR. World. war ? as soon, as is possible ? is the second point in Knowlandg s "program." ),04g article in Colliers was entitled. "We Must Be Prepared to %.iliaga War Xow," It _concerned large-scale, world, total war. "When I ?At wage yar, _I d.o_ not mean a .ziew small war," the senator emphasized. 11.9.APAN143.41,144.1t..447 failures in "small" wars, instigated or supported ttz, the T.Ipited. States. ,"Our inability to gain a victory in the Korean war," the senator wrote, in his article, "can prove to be one of the greatest mistakes in history." In one of his speeches to the American Senate, &lowland explained ? in hazy, unproven expressions but ones comprehensible to those who know W4t...04.1l.eing discussed. -- Idly he wanted. to launch a world. war as soon %It-possible. In his words, sometime "between 1957 and 1960" an "atomic ,isWe.afttes" as he calls it, will ensue, that is, a balance of the forces of tbe...397.19I...Unionk and the United States. By then it will be too late to,.?etar_t wax, by _then peace will be established for a long time. "Times .passes and. I repind the Senate," the bellicose senator said, "that now in the century of airplanes and. atomic weapons time is certainly not on the side of the free world." 7 1'41 Ilikat Soild 13e.. more clear and instructive than such an admission? It ?watsa40,..0 by a. man who eulogizes the "free," that is, the capitalistic world.. is mau.nnderstands that the system which he abhors and abuses in stray possible way, the socialist system, possesses greater oppor- ,itua,tieL.of Atrewtherting its material and. moral forces. Time works in. its behalf because it is better, it possesses more vital capacity, and the future belongs to it. For this reason, the Knowlands declare, it is oxequgpay to attempt to destroy it as soon as possible. -f 3 ? - - In. the same Senate speech, Knowland explained that it is necessary to wage war against the "chief enemies," whom he considers to be the Soviet Ui4..on and the. People's Republic of China equally. - 130 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 The third basic theeis of the zealous "Senator from Formosa" is implacable, ruthless war against the People' s Republic of China. Year after year, month after month KnowlaniMakes speeches replete iath hatred for the Chinese people, for the greatest nation in Asia which. "dares" to become ,sovereign and. Independent of American monopolies and. Californian capitalists' whose Interests and. piofits Knowland*defends In the American Senate. In 1951 Knowland. spoke 103 times in defense of Chiang Kai-shek and. against the People's Republic of China. In recent' years he has found. much greater pretexts for anti-Chinese "hysteria": he was "menaced" by the armistice in Korea and fought in every possible way against the possibility of its conclusion. However, it became a fact. In 1954 he fought against peace in Indo-Chin.a. In spite of the strength of the Knowl.Esnds, Indo-China was not successfully converted into a new base for aggression against the People's Republic of China. Me wages such battles with the ardour of an evangelist," wrote the New York Times, picturing the behaviour of this misanthrope," and in the course of his activities he creates most dramatic scenes which one can often see in the Senate. His appearance is sombre and decisive, and his face 18 crimeon red. from tension. He gesticulates energetically with a clenchea list to emphasis his ideas, while his angry voice thunders like an organ." Knowland is hostile to every event in the international arena which promises to lessen tension. He was delighted in the late months of 1956 when a new aggravation Of the international situation 'ensued. When 'the counterrevelutionary mutiny broke Out initungary, KnOwland was one o the first to declare himsef an ardent supporter and. patron of the fa n. scist reaction., which attempted. with weapons in hand to over- threw the power of the people. The ludicrous, provocative campaign around the notorious "Hungarian question," which was adopted in the General Assembly of the UN by order a American diplomacy, did. not 'even satisfy him. Knowland makes speeches, writes articles, and gives interviews. He asks, demelds, and. threatens Swift aid. to the Hungarian patchistet Zxpel Hungary from the UN% Yes, and not just Hungary ? &Lowland demanded. , the expulsion from this international Organization of one of its founders ? the Soviet Union, which went to the aid. of the Hungarian people and. rendered it brotherly pport in combating the fascist cou.nterrevolutiOn.? Knowland anatheMizes against the countries of Asia and Africa who refused to faSror tie row inspired by the United 'States in the United. Nations. The letikder of the P.epublica.ne in the Senate insisted, on the creation of an "international police force" of interventionists who, according to his plan, would. to to the aid of the forces of the reaction. He would Approved For Release 2001/07/28: CIA-RDPIE06756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 convertherpi into,aajnternational,police station where one could bring all,thpse Whodidn,!4 want_tg,bscome vassals.of the United States. ,.But forNea107 for Ith,Tgi and the.dissatisfaction of the Xhowlands, Ahie did:no.(depend on them. Th. sten is .Ws.441:7994te Of war,wtth.....tha mandate of a senator of the Dicif4d q,atql3.1,n_hip, pocket. He ha-tee-Peace because war is advanta- gedUs-to 'him. Andter.this all eke hate war despise him. , r . ; "The Police -- Above All" O. Prudkov E tOil the cover of Ti was portrayed a man with shaggy, beetling eyebrows. Behind the portrait the artist had. fashioned an original com- position symbolizing the profession of this man, pactylosoopic tracing -- tisemblin? fingerprints -- personified the system of shadowing and. espionage. 'A hand was thrust out of the tracing with a finger pointing at an American escaping in fright. ? . Before usis J. Edgar Hoover, head of the so-called Federal Bureau . _ _ of !ivestigation of the Department of Justice of the United ,States. Millions of simple Americans are enmeshed in the networks of the FBI. In itssafes are kept teas of millions of fingerprints, thick dossiers (compilations _of . document ) reports, poods of accounts, mate- rials, etc., etc. Congress appropriates vast sums for this. Thus, the ,FBI i,one_o,f_the chief weapons of the ruling circles of the United States in ?4plementing reactionary laws, Its .'40:k is to _organize reprisals against all differently Minded people and against progressive forces in the. country. , The FBI is an organization Which must suppress efforts of ,the,rai4randllile American ,for peace and prepare the country for war. ;Er/he head of the FBI, Edgar Hoover, supervises all this. The ,Napoleonic minister loouche was fequaLle_f or_ his cunning and peihAi. *limier, the Chief of the Gestapo, was an executioner and giadAit. If historians, are ever interested in the personality of Edgar OOver, they ,undoubtedly Will note that the, basic feature of his character and hypocrisy. :In Edgar, Hoovers hypocrisy lies his logic. , The American, people do bt support the aggressive policy Whidh the monopolists of the United States pursue, This policy is Shrouded in peace-loving positive state- ments. The Federal Bureau of Investigation hoists a sign "Loyalty, Courage, Incorruptibility," over its espionage activities. This is the Official motto of the FBI. _ - 132 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Edgar Hoover learned his hypocrisy as a child. He industriously attended Sunday school and sang psalms. in the church choir. His mother, Current Miograohj reports, was a religious woman, "a strong adherent to the 'principles of Calvinism.", The future chief aleuth listened to her extensive sermons On good aad evil and. dreamed of a career as clergyman. These plans were approved by a certain Reverend MacLeod. Mho poured out his eloquence upon Edgar. An atmosphere of sanctimonious piety reigned in. his home, "We never sat down at the table," recalled Hoover, "with- out gliing thanks to heaven..." In his school years, Current Biosranhv reports, Hoover "refined" his comrades' high morals. This, however, did not prevent him from carefully preparing his career by directing it on a. path quite apart from theology: Hoover's:mother wanted her son to become a minister. Finishing university and receiving his bachelor degree and later a law degree, Hoover began to clamber stubbornly upward on the ladder of ? ranks within the Department of Justice. He distinguished himself in the shameful Palmer raids in 1919 and 1920. War and. bitter economic crises stirred up the broad masses of American workers. The Great October Socialist Revolution brought the ideas of genuine sovereignty to the very shores of America. The rulers of ten's minds in the United States -- the Wall Street magnates -7 resorted to terror. Mass arrests, slaughter, deporting of "radicals" began Under the supervision of the Attorney General Palmer. More than 6,000 people were then illegally subject to police repression. Hoover stood behind the scenes of all Palmer's operations. Several years ago Kea:Lowenthal, in his book, Tjlel_e_dei_:._4g_BureauofInvestiation, bared irrefutable facts of Hoover's active participation in the "Palmer raids.," Cummings, former Attorney General in the first years of President Roosevelt's stay in office, testified that "under the direct adminis- Arative leadership of Hoover" in 1919 a "general bureau of investigation" was established,' and that the mrgpression of "radicals" was Hoover's chief responsibility from the very beginning of his career. Hoover and his bureau, which was called the "anti-radical" bureau, began to fill exten- sPre 4k2es with notes of any rumors and gossip concerning so-called "sabversive"_elements. Mass illegal arrests aud deportations in the period 101971920 were the first big job for Hoover. He personally mxpervieed all these operations and thereby made a career for himself. In 1919 Hoover was assistant to, the notorious Palmer, in 1921 -- assistant director of the FBI, and since 1924 -- its director. Hoover was then only 29 years old. It was not without reason that he received the nickname "Smartie" in school! - 133 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 ,Hoover made himself famous in another no lege shameful affair. Dating the, first world war American aircraft companies were manufac-. tiring wholly unsatisfactory airplanes aptly called "flying coffins." Aircraft industry magnates staffed their pockets with dollars as pilots were killed. When these unsightly facts became known to the public, a, storgrof indignation broke out in the country. But serene calmness reigned in the Department of Defense and the FBI. Themis kept silent. Attorney General Daugherty and his closest assistants, among whom was Edgar. Roover? made great efforts to hush up the scandal of the "flying coffins." Just as in the "Palmer raids," Hoover remained in the back- ground behind the scenes. But his zeal and loyalty to the interests of ionoPelies were undoubtedly noted. Hoover has held his post continuously for more than 30 years. The scent and habit of a police dog, the readiness to serve greedy magnates on Wall Street, and hypocrisy and bigotry helped him to retain his past through four presidents and ten attorney generals: Republicans and Democrats alike need Hooveranntbckhranka tatarist-Rxsiandecretpolitical police]. Monopolies, the real bosses of America, desperately needed his services., Congressional appropriations for espionage-information,service gr6iilfroM year to year. In 1917 the FBI was forced to be satisfied with $618,000. Now appropriations for the FBI run into the millions of dollars. , -idgar Hoover's hypocrisy, his indelicate ways, and his clever self- advertisement reached unprecedented heights. .Pages of the American and even Western European press are filled with eulogies of Hoover and the FBI. See what successes Hoover has achieved, the American press would have you believe. He cleaned the FBI of criminals 00, he created a ,"police of a new type," organized a criminal laboratory, and founded the "Academy of the FBI" in which "picked police officers from each state and Many foreign goVernments" study modern methods of coping with "sub- versiveeaements." In a word, Edgar Hoover works day and night expanding and. extending the system of police investigation and observation over all ,.Aniericans. In the opinion of his newspaper supporters, Hoover merits special thanks for creating an extensive collection of fingerprints. In the FBI, he boasted, there are even the fingerprints of Eleanor Roosevelt and former Mayor of Sew York City, La Guardia. The point here is, of course, not in these dactyloscopic souvenirs but in the fact that Edgar Hoover's ,dspartment firms the foundation of an espionage net which engulfs the country. The American press enthusiastically depicts the FBI building in Washington. Thousands of tourists visit this imposing building "full of air." Neat, carefully =informed guides conduct tourists through the - 134 - Approved For Release 2001/07/28: CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 spoils of the FBI. Here is the deathmadk taken from the Chicago gangster Dillingervkilled by FBI agents. Next to it is a, law library and a 'Shooting gallery. On the fifth floor is the office of the boss, humbly called the "cave of Winds." Workers in the FBI, relate, and. not without some witisfacWm4 that their famous card index contained 116 million fingerprints in 1952. "But," emphasizes Time, "visitors to the FBI will never see ie card index bureau, of thousands of simple citizens of the 'United States,"that is those who are under surveillance and Whom the American okhrnka watches. Thousands of simple citizens. Thousands of opportunities to put a man to a civil death, to snatch him off the street, and force him to die from hunger. Any "differently minded" person in modern America can be accused of "subversive" activities. At Hoover's service is the law on "internal security," which stipulates compulsory registration of "sub- versives" and actually all Who are objectionable to the 11,0m of organi- zations in the Department of Justice. In 1954 the United States Congress passed a new law Which declared the Communist Party Illegal. The FBI is .completing work on preparations for reprisals against differently minded and simple thinking Americans. Hoover and his agents are .gathering "evidence," "proof," and ascertaining people's "sentiments." How does Edgar Hoover and the okhranka which he heads operate? . Entering the FBI, Hoover leaves his mask of a pious Christian, democrat, and defender of the American family, together with his hat amd coat in the cloakroom. This well-bred gentleman and worthy student of Reverend MacLeod has turned into a detective who does not disdain to use the vilest, most Shameful means in his hunt for people. Bearded Bill, exhausted and emaciated, vent to a workers' meeting, held a poster bearing the words "National Unity," and joined the demonstra- tion. Bill was marching in a picket line and distributing leaflets con- cerning.a strike. Friendly relations with workers had been arranged, their confidence was assured. Bearded Bill is an FBI agent. This story, told, in Look,, dhows Hoover's working methods. Provocation, espionage, shadowing. One of Hoover's assistants declared that secret FBI agents "are sent on missions into labor unions, educational institutions, industrial, commercial, and other organizations." The "other" includes everything from churches to night clubs and Boy Scout organizations. Moat varied. information is placed in the extensive card files. Informant WiL4p? and his friends have reported that actress Helen Hayes spoke at - . an evening meeting organized by "Rods," and the Republican senator from New Hampshire, Tobey, visited a meeting of "leftists" in Madison Square Garden.. Husband X loves to read the bourgeois liberal newspaper, Bew Pepublic?retc.,etc. When it becomes necessary to rain a man, Hoover and the FBI fabricate a criminal case from this petty information. The result is always the same. At best -- loss of a job. Often -- a long prison sentence. Approved For Release 2001/07/28 : CIA-RD 1111-0-0756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Here is one of the cases of which the FBI has thousands on files report on it appeared in a Western European newspaper. John Lincoln, a scientist, naively believed in American "democracy." In the beginning oY 1949 he was drafted into the Army.. The chief of intelligencein_his unit suspected that Lincoln was a Communist, The investigation began. It turned out that the FBI ha information on Lincoln from the age of 12. The file contained many details of his conversations with teachers in his grade school and in high school. Teachers were asked about his views when he was 17, 15, and even 12 years old. Everything was interwoven and reported, rumours and gossip were summed up in a 7-page document. What "compromised" John Lincoln? A former landlord "had not recommended that he be entrusted with sedret work in the United States Army." One of the school teachers affirmed that Lincoln "had expressed radical ideas" at the age of 16. -I -A certain acquaintance had heard it said that Lincoln was a Communist during his student years. While serving in the Army, Lincoln had received a letter from a _ labor-Union worker which contained the latest labor-union news. Acertain informer reported that the "subject of investigation is , _ a great supporter of Franklin D, Roosevelt, The subject, It turned out, was filled with "reckless ideas" on culture and, in the words of the informer, read poetry, Apparently, this latter "offense" of Lincoln taxed the patience of - the powers that be. He was declared %nivel." The. trial of Lincoln was typical. A dossier like the one that ruined ,Lincoln, a dossier where efficiency is replaced with stupidity, follows a man even, when he leaves the territory of the United States. An example is the Ward case. Herbert and Jacqueline Ward are artists. A musician and a ballerina. RBI maintained careful shadowing of the artists. Then they took part in Ythe World Youth Festival, In 1953 the Wards traveled to Vienna. "Then we .idnot know that a dossier, compiled by the FBI, follows each 'suspect' American. Spinks, the vice-consul in Vienna later told me. As soon as we arrived in Vienna, our passports were taken from us. Later, for no reason at all I was thrown out of an American theater, the golm916 in Vienna. Interrogations and summons to the consulate coupled with endless -136- Approved For Release 2001/07/28: CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 j othreats, bean. For two yearp.I was subjected to this system of intimida- tion, which is now the chief feature of the American public life." These are the wordsef Aerbert Ward. He uttered them after requesting political asylum from the Czechoslovak government. Edgar Hoover is trying to place Americans in a state of ceaseless fear. This fear is necessary to counteract any opposition to American aggressive policy. No one can feel secure and no one can deceive ? "omnipresent" Hoover and his agents -- this is the leit motiv of all advertisements of the FBI in the press. Hoover and the bourgeois press are tirelessly pouring oil on the flame. On the pages of Pathfinder be wrote about perfected means of photography with secret cameras. "The subject does not know that he is being photographed. Pictures can be made day and night." An article in Look explained how FBI agents can overhear any telephone conversation. In This Week, Magazine Hoover extolled the cunning and resourcefulness of FBI agents. And in United. States News and Werld Report, reviewing the results of his work, he boasted, "The sixty-first Communist leader has been brought to justice and condemned to aperiod of 261 years and payment of court fines of $361,000L "More than 200 progressive organizations have been declared "subversive,"1 An Old Toatie. wing, "man if a wolf to man," resounds for Edgar Hoover:. menieoeoeleuth to man. ,An informer andoprevocator becomes a national hero in the UnItedAtatee The sleuth' ? Philbrick is solemnly ; henored in Beeton. American newspapers suggestively play up the sizeable *MS which are paid to informere., Recruitment of spies is in full swing, supplying monopolies with "cadres." ' In his efforts to secure more informers and spies, Hoover has even appealed to draggists. An article appeared in the apothecary magazine, . _ _ Drug Topics. The chief of the FBI wrote, "There are few people, un- doubtedly, who know the life of their area as well as American druggists. Their drugstores ,and dope are the center of all public life of their area. They are located in a conveniently strategic position for discovering... traitors and can render valuable service in catching and exposing them." The newspaper Peoples World ironically beer-fed that the following prescrip- tion will be sent to druggists: "Eavesdrop and report four times a day ... Doctor J. Edgar Hoover." The FBI is one of the chief weapons in the straggle against progres- sive forces in the United States, against the Communist Party. Informers, spies, and provecators of the FBI serve as witnesses for the Preeeantion in anti-Communist trials, On the basis of false testimony, leaders and. activists in the American Communist Party were thrown into prison. Time - 137 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 called ,these trials a "national phenomenon." How this "national phenomenon" rieUils the Gearing provocation of the burning of the Reichstag! Now even :the United States Supreme Court has cast d&ubt on the legality of convicting -rtantimber of Communists on the basis of the notorious Smith Law. Hoover's agents control an entire system of shadowing and espionage in enterprises. Bus, former director of the Detroit branch of the Federal Bureau of Investigation, holds the position of vice-president of the Ford Motor Company for "labor relations." The Bugasses openly implement their orders in plants and factories. Thus they are supervised by the direct:'insturctions of the rational Association of Manufacturers (BAK) headquarters of American monopolies. 44e'so-called apoument_No 60, formulated 17 the Council of the Natien4 IndUitzial"Conference (one of the departments of the PAM), _ amtboriZes Or tliirayarpose the use of informers and sleuths, the taking of fin erP , rints administering the "loyalty" oath; and "verification" of ,,.. - the opinions and sentiments of workers. . ITowte provvators themselves are masking Hoover's system. The . h e e un . _ . _ _ scan4alous)4s4:usow affairihed bright light on the activities of the Federal Bureau of Investigation and on Edgar Hoover; , When an FBI agent and Matusow, a provocator, confessed to giving false testimony, the whole unsightly kitchen of the Federal Bureau ,of Investigation and other organs of American justice was uncovered. Soon after MatUsow, another professional sleuth, a certain Browns who had been receiving about $200 a month from Hoover, publicly confessed. Elizabeth Bentley, the "'queen of spies," was unmaaked. These failures did. not disturb Hoover. After Congress passed a law banning the activities of the Communist Party, he again urged the "denunciation of the leaders and members of the Communist Party." Denounce, denounce, denounce.., the elle* rang Out from the Federal Bureau of Investigation. When informer BroWU-tOld'one of theFa workers that he cOns0Sred the'Reienburgs, who were etecUtedenfalse charges of "atomic espionage" to be innocent; the FBI men Ointo4ly answered, "Does it make any difference?" Yes, Hoover -Alloei not care a bit that the facts he needs do not exist, But ,"facts". can be fabrieited. And cheaply only $25 a day. Hoover has enough agents for this purpose. - - ? Matusow's admission threw great light on the vile activities of Hoover's department, which fulfills the will of American magnates of " capital. Here is what he related in his book, False Witness, concerning the penetration of American Political police into different organs of the 11100d States. When Matusow Served at an. air base in San Antonio, a' certain -Martha Edmiston -- an FBI agent operated there. Her husband, Alsoan agent of the Federal Bureau of Investigation, operated as editor of a loci. newspaper; .the Journal Herald. Jim Jenkins, an FBI agent, it a lawyer in Dayton. - 138 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 During the 1952 pre-election campaign, when Matiasow travelled through the states giving speeches in: favor of McCarthy and. his supporters, he ran. into FEI, agents all along the way Who bossed different organs of the Republican Party. In particularo'the committee whichdirected the eam- paign for the re7election'Of Senator Beton of Montana to the United States Senate was headed by a Certain J. K. MerrOi a "former" Fla agent. Several FBI agents handled the notorious Senate subcommittee on investigations which was headed by. McCarthy: a certain Don Conners -- ?"the investigator of the subcommittee,"and Donald Su:rine, "a former agent." To this category also belong MeCarthi's other assistants -- Hawkins and:Julian. Through these representatives the American okhranka undertook different"investigations" and palmed off their spies and provocative "materials" -- forged documents -- on the subcommittee. , McCarthy'S reputation was almost hopelessly tainted., and reaction for several years prior to his death did not find it necessary to resort to his services. Another "witch hunter," Senator Eastland, advanced to the forefront. -ge headed a subcommittee on questions Of internal security and also held the important poet of chairman of the Senate Judiciary Com- mittee, According to. an acknowledgement by Time. Eastland "belongs to thoseijeopla4ho, above all, are hated in the United States." He enjoys :the well-deserved reputation of an inveterate reactionary and racialist. Eastland is a yelLito.46, Southern planter and tries in every Possible way to maintain the status of the :Negro, who is deprived of civil rights. When the United States Supreme Court decreed that Negroes cannot be deprived of the right to vote, Eastland deelared that Communists operate the court from behind, the scenes. Throughout the war, he came out with such revelations as "The Negro soldiers does not want to fight," "He betrayed. his country's flag," "He does not want to work." The minutes of the Senate are, stained with the countless, racialist pronouncements Of Eastland, who heads the Moat reactionary'wing of the Democratic Party -- the so-Called Diliecrats. He violently protested the United States Supreme Court's ruling on. desegregation in state schools. Using Hoover's 'bloodhounds, Eastland followed the well-trodden path of provocations and different "investigations." In the spring of 1956 Edgar Hoover mulled over the days of his youth and the days of his collaboration with Palmer. In a truly Palmer spirit, FBI agents performed a series of raids on Communist Party offices and on the newspaper, Daily Worker. At the same time a trial of seven ComninTasts was proceeding in New York at which John Lwatner, Matusowle associate and a professional informer, like a schoolboy, repeated a lesson which be learned by heart at Edgar Hoover's establishment. The new wave of anti-Communist hysteria which surged throughout the United States was, as American observers justly noted, "like the ease of the burning of the Reichstag, only without the burning". It evoked. changes Approved For Release 2001/07/28 : CIA-R529- P6g-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 in the_irOernatiO4A1A,ituat,lon, AAA appeared to be the response of the "witch-14liter, tO'tbietrise of peaceful _sentiments of Americans. Pro- IrocatiTe,raMES 04 afAPIP.pf-t4,..P44141,1104;arti of the United States, new anti-Comm4niet /riti41.0an4 * series of investigations of_Eastlandld subcommittee,soughtAO ",.ilemionstrateli that peaceful coexistence is. in- possible and that is *possible to deal ?with the "HeAs." -4401-,n4 mad' VgAngements to ,announce an inveetigation on "the scale of Soviet activitiesli in the United qtates and Hoover of course, read.ie. paid. agents_fOr this provocation. They were delivered to Eastlandls subcoMmittee where they presented "evidence"on the "malicious projects" 4qi9P4nni*.e, Winst -the,4eric*n government, The switch hinters" dld not Opp!at itraightforwaii,Aarcegy*, piringthe interrogation before the eubOpmmi)tee.of the lieu? ,P,Atteit,was made clear tbet FE.; agents had secretly entered his living-quarters and stole "Communist literature" there*, By the way,_among,those "docnments",yas a newspaper, For A Lasting PqAce-andAlsqPVILPIS DemocragY1D anktheAireotivee of the. 20th Party q."41:131" on. the Five-leftr, ?Agn. 211,8e .r4 0,1sPlaYed before the rah- Ommptelelas, "material.evciAemoe" of anj47governmental sentiments_pf 1:OMMhni4s. By similar methods Eetstlend.Attempted to intimidate Americans -- wOrkers.of *yew Tork,ranch of 1,A?? ,-,-,in order to cast aspersions on the activities pf?the'.$oviet Hews Agency. Eastland's zeal was popularized in the. Aperipan bourgeoie preeso He attempted to accuse several New York Times employees of being "Commaniste." _Speaking about the investigation of the "scale of Soviet activities " an investigation unparalleled in its , btazenness,-Eastland,declare?rankly that, his purpose was to achieve adoption of new "legal measures." an attack on the rights of Americans AnA' on, their Constitution - - - was iraged by the united forces of the FBJ and reactionaries from Oongress. One Of the 4.1.2',4tsitejleeat bulletins , was recently entirely devoted to:detiitland "investigation." Stone asserted that "The Time has come to Aeli7er ablow to*it9h kintere. 111.?J0,94of the evil lies in the. existenOlkof Congressional committeesch are invested with the.alithority to,iveet:iiate peppiest opinions and label those whom the committees Inspect as "subversives" or "anti-Americans." It_is said that when !Agar, Hoover was appointed director of the FBI, the ollgM.,ng diaioeepasseebetween him and the attorney generals 'Young man," said the attorney general, sI want to appoint you director _ ,of the PHI." "I accept," replied Hoover, "on two conditions a first, 3710 politiv4second, no interference from 'without,* The attorney general, the biographers note, accepted these conditions. But for more than 30 years Hoover has engaged in an active politics. All Q f his,activities have been aimed at pipportingthe policies of American nOnOPOlies. In the 19400s he visited the pro-fascist saloon of the widow of Madeash *a publisher, where over cocktails, he shared secret opinions - 140 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 with the bo !es of American ramjets 64 the "American First committee. r The members of this committee were closely connected with Hitler's , underground in the United States.' It is clear why the Unmasking Of nntirouS-Naal agents operating 123:the United States was never effected by the '1131. The American press and. Hoover himself now advertise the FBI's role In the var. But a, fair evaluation of this role was made in Lowenthal's book mentioned above. He called these activities "comical" and showed that all cases of spy expods, *doh had been attributed to the Federal Bureau of Investigation, must be attributed to others as well. Two Nazis Who landed from a submarine were caught, not by an. FBI agent, but by a sevonteen=year-old boY. Lowenthal paid for his words of truth. His book was quickly Withdrawn from sale. There was no time for Hoover to contend with criminals and gangsters. According to information from the FBI itself, a serious crime Was COmmitted every 14.9 seconds in the United States in 1954. In 1956 a record'inmber of serious crimes -- 2,534,000 12 percent more, than in 1955 were com- mitted. Hoover and the FBI have been continUausly engaged in creating a situation of terror in the Country, spreading the "philosophy of fear," and suppressing progressive activity. Has this work been successful? Listen to Edgar Hoover himsel(. This cheerful man, as the magazine Eye and Ear calls him, has suddenly become a pessimist. In American Magazine, in an article entitled "Communists Are Trying to Master Our Minds," Hoover was forced to admit that in spite of terror, shadowing, and persecution, the Influence of the Communist Party of the United States is "much greater" than one might suspect. Hoover cannot but admit the popularity of the ideas of peace and democracy for which the Communist Party sturggles; he cannot but admit that the Communists exert influence on the workers2 movement. It Is with good reason the work of Edgar Hoover and his colleague, the A. F. Stone Weeeklv, is called an "act of despair." He wrote that "It appears that we are on the verge of terror, organized by frightened people who feel that power is slipping out of their hands." For this very reason Hoover shouts about fictitious dangers which threaten to ruin America. What are these "dangers" from his point of view? Hoover answered this question on the pages of United States News and World Report. The dangers, it seems, are that: 1) American Communists have demanded peace- ful settlement of the Korean military conflict; 2) they have appealed for the recall of American troops from foreign countries; 3) they want a pact of five great states, including People's China; 4) they want to trade with countries of the camp of democracy and socialism. It is in these things that Hoover sees danger for America -- in the reasonable - 141 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 and legal demands of sensible Americans who are fed, up with the policy "from a position of strencth." The number of people who raise their voicep fp;v9r of obli.kerating the spectre of atomic war is increasing i.te t gct e ? TW, 3dgar Hoover has faith in himself._ Re writes aitiates and speaks before Congress. His writings and his speeches are imbued with the spirit of the "cold war" and malice against Communists and, ,s1,1, progressives. As usual he intimidates Americans with a mythical COMM41;13 t conspiracy." ,4,e American press has called Hoover c !great crusader" and "great America." , Tlry portray him even as a certain "national tradition." But here s 4tere, Hoover. and,his co3.1eagu.es violated the law, in the opinion di New tork lJudge Frank Oliver. In New York, the judge declared, "a man's home is not his castle. It is merely a dust-bin in which police can rummage. One mention of order causes lawyers to roar with laughter. If rxx want to asp a policeman roll on the floor with laughter, mention fmt,arl?liattlirtant ,gonsfitutional rights on search and. seizure of roierty h - The police laugh at the Constitution. FBI agents smirk while popi?g handauffs. The lowly American does not trust the hypocritical, pro se talleof Hoover who, leaving the FBI building, wears along with his hat and coat, the mask of a one-hundred-percent democrat. Ordinary people see him as he really is -- the chief of the political police. ior a. .or:tg time Edgar 110037,er has persistently woven far-flung net- works of espionage. He wants to pow terror and confusion in the minds of the Amerifan people. But, unafraid of the Hoover's web which has entspglftd them, Americans who support all progressive mankind are waging the struggle for peace and for their democratic rights. - 142 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 M. Vilenskiy In a suburb of Paris between Versailles and Saint-Germaine stands a small town of brick buildings of the barracks type, differing in no way from dozens of other American military centers. Here the headquarters of the Supreme Commander of the North Atlantic Treaty Organization's Armed Forces in Europe are located. Disciplined military police in white gloves guard the entrances and exits. In front of the main entrance, on high poles, are the flags of the NATO member countries. Formally the headquarters employees call themselves "international soldiers." In fact, American generals are completely in charge here. A correspondent of the West German newspaper, Die Welt, after visiting the NATO headquarters, stated, "I heard the7WCTR-Tblitzkrieg' ('lightning war' LV,) in all the corners of these long barracks." A treaty, called the North Atlantic Treaty, was signed in 'Washington in 1949 by the representatives of 12 countries: the USA, Great Britain, France, Canada, Belgium, the Netherlands, Denmark, Luxembourg, Iceland, Italy, Norway and Portugal. In 1952 Greece and Turkey joined it, and in 1955,,West Germany. The new-born infant was diligently wrapped in swaddling clothes woven from lies about defense. The basic principles of the North Atlantic Treaty Organization (abbreviated in English to NATO) were formulated in a verbose declaration of the US State Department of 14 January 1949 with the hypocritical title, "Building the Peace. Collective Security in the North Atlantic Area." However, the aggressive nature of NATO was clear from the very first moment of this organization's appearance. And even earlier. A Declara- tion of the USSR Ministry of Foreign Affairs of 29 January 1949 on the North Atlantic Treaty and a Memorandum of the Government of the Soviet Union of 31 March 1949 clearly demonstrated that the North Atlantic Treaty was an aggressive, closed, military grouping directed against the Soviet Government and the people's democracies. Yes, and in the USA and England themselves, the birthplace of NATO, there was no lack of frank acknowledgements. Some of them were made with malicious, misanthropic joy, and others with unfeigned alarm. "This treaty," wrote the Wall Street Journals "is a triumph, on a world-wide scale, of the law of the jungle over international cooperation". In the same spirit the Chicago newspaper, Lally News, stated, "A military union of the North Atlantic Treaty type is not, despite optimistic affirmations, a step in the direction of peace. It is a preparation for war." Nor was the target of the brigandish surprise attack a secret to anyone. The Gazette and Daily wrote quite justly: "We are responsible for the organization of this coalition against the Russians. If it leads to war the whole world will know whose the fault is." - 143 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 The grim inventiveness of the designers of NATO extended so far that they were already concerning themselves over a pretext for a third world war. Article Six of the North Atlantic Treaty provides that any incident involving a vessel or aircraft in the vast territory of the Atlantic region between the North Pole and the Tropic of Cancer can serve as a cause for puttirg it into effect. In other words, as soon as the masters of the At?.antic Union consider that everything is ready, they can easily concoct the required trivial incident. NATO is .a gigantic Anglo-American octopus whose tentacles have wound around the territories and economies of the other member countries. Its military expenses are a heavy burden on the ordinary taxpayer. Gen- eral Gruenther, former Supreme Commander European Armed Forces, announced in the spring of 1955 that when NATO was created the countries belonging to it were spending 5 billion dollars a year for military purposes, but in 1955 their expenditures had grown to 16 billion dollars. Gruenther spoke of this undisguised robbery of the workers as of a remarkable event of which one could and should be proud. The imperialists tried to distribute the roles in NATO as it suited them beforehand* Once in 1951 the then US Secretary of Defense, George Marsha11, carelessly admitted: "Our contribution is dollars rather than soldiers, The other parties (the countries of Western Europe) are con- cerned with soldiers." However, even this most cynical declaration did not fully reveal the assignment of the roles in the North Atlantic Union. Not only does the US require cannon fodder from the other countries, but, as we saw above, they are also mercilessly squeezing money from them. The,United States has reserved the role of super slave driver for itself. Thisisconfirmed if only by the fact that until now only Americans have been supreme commanders of the NATO Armed Forces in Europe (abbre- viated in English to SACEUR). The first SACEUR was General Eisenhower, the second, General Ridgway. Until 31 December 1956, the NATO headquar- ters was directed by SACEUR III, General Alfred Gruenther. They are all representatives of the US military machine. .BACEUR,Ilas a not inconsiderable household. The armed forces com- mand in gent/11 Europe, the commands in Northern and Southern Europe, and the, Mediterranean command are subordinate to him. The British Secretary of State for Foreign Affairs, Selwyn Lloyd, speaking at a meeting held at the end of October 1956 in eulogy of Gruenther, was carried away and made one quite remarkable admission. All the NATO countries, he said, "have agreed that they will not move their armed forces about in General Gruentheris zone of command without his permission." Could it be possible to confirm more eloquently the sharneful fact that the decisive sovereign powers of the Western European countries have been given to the American general! - 144 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 These are some brief facts on the aggressive grouping created by the USA in Edrope and headed by SACEUR III, Alfred Gruenther. xxx Gruenther was born in 1899. His father was the editor of a newspaper in the remote town of Platte Center (Nebraska). We do not have any data on the childhood and youth of the future SACEUR III worthy of the reader's attention. There is worth mentioning only an insolent escapade of the twenty-year old Alfred, who, in his,parent's absence, inserted an article of his own composition directed against the US Congress, in his father's newspaper. The young Gruenther fulminated against the high legislative assembly because of the millions spent for military needs and (irony of fate:), and argued that it mould be better to use this money for libraries and the needs of society. After almost 40 years, General Alfred Gruenther? without hesitating, mould strip the insignia from any of his subordinates who dared to utter such a thought. However, the sportive son rather quickly atoned for his fault against his father. He entered a military life. Graduating in November 1918 from the Military Academy at West Point, he climbed the steps of a military career quite slowly. Only 17 years after leaving West Point did he reach the rank of captain, and in 1940 received a major's insignia. Probably Gruenther would have continued to climb the ladder of ranks at a snail's pace if Eisenhower, who, during maneuvers in Louisiana, took a fancy to the thin, wiry man of medium height with a loud voice like the horn of Jericho, had not taken him in tow. From the very first steps of his military career, Gruenther distin- guished himself as an armchair warrior. An armchair and desk attracted him more than a saddle or a battery commander's telescope at a command point. As the West German journal, Der Spiegel, points out, Gruenther's record stated that he "excelled in theory, but could not stay in the saddle of even a child's wooden horse." During World War II Gruenther served as Chief, of Staff under Eisenhower and Clark. He always was "in the background", i.e., he was always substituting tor someone or assist- ing somebody. "Gruenther," states the well-informed magazine, United States News and World Reports, never commanded in battle and continually had to do, "inferior, dirty military work." Thus the post of SACEUR, head of the NATO forces in Europe, is the first more or less independent post that Gruenther has had. It is not impossible that one of the reasons for appointing Gruenther to this position was his ability to keep refractory European allies in check. Gruenther acquired valuable experience of this sort at the end of the war when he was Chief of Staff of the 15th Army Group, where, according to his official biographers, he "came face to face with the problem of adOting a staff consisting mainly of Englishmen to the requirements a American command." Gruenther successfully adapted the Englishmen to the above-mentioned requirements despite an Anglophobia engrained in - 145 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 him.sincehis youth. Gruenther himself, in a rare moment of revelation, declared that until. the age of 16 he did not even suspect that the expression "damned Englishmen" was not one mord. As far as the purely military aspects are concerned, no matter where you look in, Gruenther's service record, there is nothing special to praise the general for. Blafthat,in Whi..gh he was a genuine genius, that which he knew best of all sciences, was the "science" of playing bridge. The general's exploits on the green card table are impressive and unquestioned. It is even difficu4 to say Whether Gruenther thinks in military matters as a -gambler or operates like a military strategist at the card table. Having learned the secrets ,obridge in 1920 while training at the Fort Knox Field Artillery School, he afterwards won the title of best American judge of bridge games and earned quite a bit as a judge (100 dollars a night). He made an invaluable contribution to the treasure-house of the science of bridge by publishing two thick studies on this game. "These treatises," wrote The New Yorker "are still regarded as the most valuable wprk in this field." Thus, apart from bridge, we apparently have a mediocre man, an Army hack not noted by the press as having great gifts. But such a conclu- sion would be too hasty and therefore erroneous. Gruenther's activity during thepost-war years showed with indisputable clarity that this general's spiritual mechanism lacks one part which, strictly speaking, gives a man the right to call himself a man: that is, humanity. Short, undersized AgrEd. Gruenther, in spite of so much unobtrusive external data, quite justifiably can be considered one of the worst enemies of millions -of peaceful workers, below we will try to prove this. * * * Gruent4er's activity is like an iceberg - one-seventh on the surface and, stx-seveOhs hidden from the observer's eye. But even Gruenther's public statements clearly show that he is a convinced supporter of atomic' warfare and an admirer of mass annihilation weapons. It is true that he, in advocating the use of atomic weapons, like Nozdrev[dxuaateT .."?itaLGogal's retie. Souls. Gambler and fichart.lctesnotpleyquitetiair,"krzwingmanydifferent /Imes prid of hisfb.vorite ttzthoas 1,stomilme the word "deem& in speeches and ablressgs. Rqwever, the veil of "defense" talk in no way conceals the aggressive intent of Gruenther's appeals especially since the general lets the truth slip out at every step. _ 0011ated, his statements on the question of atomic weapons make a rather gloomy collection. "We envisage the possibility of using atomic bombe against objectives in enemy territory," he declares without beating about the bush. Gruenther does not conceal that he intends the young - 146 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 girl at a rendezvous, the old bee-keeper, and the mother sitting at the cradle to be targets for atomic attack. "Nuclear weapons must be directed against military objectives. Towever, it must not be forgotten that in many cases the civilian population might also suffer from this," spoke the general who supports atomic warfare, in the British House of Commons in Westminster, that very Westminster which was turned into a pile of stones during World War II. In an atomic excitement, Gruenther prefers not to think about the fate of the thickly populated British Isles if he unleashes atomic war. Gruenther has raised Hitler's scale to an atomic level in accordance with which 100 and then even more, peaceful Soviet citizens were to be wiped out for each Fascist soldier killed. Speaking before a group of British manufacturers, he announced that for each city destroyed in the West "we could destroy 6 such cities in the USSR." On this occasion the English newspaper, The Daily Worker, indignantly wrote: "Even Hitler, in his worst moments of folly, did not dare to threaten a state with which Germany was at peace in the terms that Gruenther threatened the Soviet Union." But the men wishing to excel Hitler's record should be reminded how the raging Fuehrer adventure ended. It is amazing, but a fact - the supporters of atomic warfare sometimes forget that it is the same dis- tancefrom us to their bases as from their bases to us. And it is more than rash to forget this! In September 1953 Gruenther's staff, according to information leaking into the American press, had already formulated a detailed plan for atomic armament in Europe, and in December 1954 Gruenther thought he had finally untied the hands of the supporters of atomic warfare: a session of the NATO Council legalized atomic warfare. This criminal decision cloaked by an envelope of apparently innocent words, is con- tained in Paragraph 6 of the communique of the Paris session of the Council which ended on 18 December 1254. Here is how this remarkable Paragraph 6 reads: "The Council examined a report presented by the Military Committee on the question of a more effective system of organiz- ing NATO's military defensive power during the next few years in consid- eration of modern achievements in the development of arms and methods (speaking of thermonuclear weapons - M. V.). It approved this report as the basis for the planning of the defense and preparations being imple- mented by the military organs of NATO...". The Belgian Minister of Foreign Affairs, Speak, translating Paragraph 6 from a.deliberately ob- scure language into ordinary speech, declared that these decisions give "the military exactly what they need. They demanded permission to pre- pare for atomic war. This permission was given to them." Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Ekactly a year later, in December 19551 the policy of using atomic and hydrogen arms as the basic type of armament for the troops of the Atlantic Bloc countries was officially proclaimed at a session of the NATO Council. The task which Gruenther was given when he was appointed to his post c-onsists of two interwoven parts: first, to prepare the NATO military machine for conducting atomic war, and second, to re-establish the West German Wehrmacht. Gruenther devoted himself fully to the achievement of these two goals. He expressed his chief strategic aim as a two-fold formula. Two things are necessary said Gruenther to the Senate Foreign Relations Committee: "an effective contribution from Germany and the ability to use atomic weapons". He is indeed obsessed by the idea of real-mine-West-Germany. In everything Gruenther said and everywhere he spOke he invariably repeated the advantages of atomic warfare and of a new Wehmachtp A travelling salesman of death, he toured the European capital's plugging for the rearmament of West Germany. With threats and r.---s011es, promises and pleadings, Gruenther forded the Western European parliaments to ratify an agreement on the remilitarization of West , Germany and its inclusion in the Atlantic Union. Gruenther really "ham- med it up" in front of Danish journalists at a press conference in Copenhagen in January1955. Clasping his hand to his heart, he said that he understood the reluctance of the Danish people, having undergone the occupation, to see West Germany armed again. More than that, he admitted that the same feelings were also noticeable in other countries. But what can be done; the general sighed and lifted his hands in dismays Germany's contribution to "the defense of Europe is necessary." According to Gruenther, the remilitarization of Germany is a step in the direction of unifying Europe . Without West Germany, he "explains" elsewhere, the NATO armed forces "do not have sufficient depth." Behind all this chatter, designed for credulous simpletons, a cold, cruel plan is concealed. No matter what Gruenther repeats at press con- ferences and in parliaments, he needs the West German divisions as the basic shock force for aggression against the Soviet Union and the peo- ples democracies. With the bones of West German youths, he wishes to pi:lie a road to the East for American tanks. " I r He does not feel right without the German divisions. Gruenther scornfully calls plans drawn up without counting on a Wehrmacht "unsatis- factory, second-rate strategy .n On the other hand, the inclusion of Germany in -NATO will make it possible for him to conduct, as he expresses it, na first-class strategy." Despite Gruenther's wish to becloud the water, it is not especially difficult to guess that by "a first-class strategy" he has aggression in mind. His concern for the speedy rebirth of the Wehrmacht reached the point that (as the West German journal, Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Der Spiegel, wrote) he himself drew up a list of generals and field marshals from Hitler's army whom he would like to see 'in leading posts in the new Wehrmacht. While some may have done so, Gruenther never took seriously the paper "limitations" placed on the Wehrmacht by the Paris agreements. Even before the West European parliaments started to debate the question of the Paris agreements, Gruenther assured the Bonn generals, Hedsinger and Cruewell, that the new Wehrmacht would not consist of 12 divisions as the official propaganda proclaimed, but of 48. At one of the NATO sessions, when the Bonn representatives eagerly confirmed their agreement to play the role given them by Gruenther, the latter, according to his own statement, "wished to jump up and shout, 'Hip hip, hurrah!'" On 9 May 1955, the 10th anniversary of V-E day, as if to jeer at the memory of the millions of victims of Fascism, Gruenther, his bosses, and his subordinates, received West Germany as a member of the North Atlantic Union. * * * It would seem as though Gruenther and his bosses in the Pentagon, Wall Street, Downing Street and the Cite have a reason to rejoice: their plans have almost been realized. They have the decisions of the Paris NATO session "legalizing" atomic warfare and the Paris agreements "legal- izing" the rebirth of the Wehrmacht. Nevertheless, the general is in panic. To his horror, he discovered that he rejoiced too soon. Many months ago the American magazine, Colliers, farsightedly warned: "Gruenther's difficult mission will consist of convincing unen- thusiastic governments of the need to complete their military prepara- tion for a war in which no-one now believes and for which no one really wishes to prepare." Gruenther paid no attention to such warnings. In general, he paid attention to nothing except fulfilling the instructions given him: to prepare for atomic blitzkrieg and to forge a West German battering ram for new aggression. Such a limitation in point of view is perhaps permissible in bridge playing, but it is a fatal defect in politics. In the beginning, Gruenther tried to ignore the slow but steady process of enlightenment among the widest circles of the West European public. The unchanging and consistent peaceful foreign policy of the Soviet Union, the great peaceful deeds of the Soviet people, the unprec- edented growth in the Soviet Union's industry and agriculture witnessed by dozens of different visiting bourgeois delegations, unmasked the myth concocted by American propaganda of the imaginary aggressiveness of the Soviet state. And then in Western Europe they began to understand 149 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 the simple truth that the supporters of atomic warfare from over the ocean, ,Gruenther and Co., chattering about the defense of Europe from communism, were actually hatching sinister plans to use it in achieving their merce- nary motives. Fear is the ally of Gruenther and his bosses. This, in his opinion, is the cement which must glue together all the NATO member countries. And he encourages this fear in every way, ignoring the spirit of the times, the real facts. When, after the Geneva Conference of the four great powers, a certain lessening of international tension was noted, Gruenther hastened to affirm that this would not cause any changes in military prep- arations. The Soviet Union's announcement of a reduction in the size of its armed forces at first plunged Gruenther into confusion. Seeing the unanimous approval this measure of the Soviet state received everywhere, he lost his head and said that he was "meeting this step with caution." However, a week later he found himself and blithely announced that "sig- nificance should not be given to" this step. And finally, three weeks later, he solemnly said that a reduction in armed forces "could actually strengthen rather than weaken USSR military potential!" Thus, feeling that his main propaganda trump, the affirmation of the "aggressive designs" of the USSR, was knocked from his hand, the bridge champion drew a marked card from his sleeve without the slightest embar- rassment. Gruenther experiences about the same thing as the cheat, Gorekhvastov, described by Saltykov-Shchedrin. "Once I was keeping bank," relates Gorekhvastov, "and was keeping it rather well as usual when sud- denly one of the punters, a stranger about two feet high, seized Ry hands and squeezed them so hard that the bones cracked. 'You, sir, are a scoundrel,' he said to me.., land now I will prove it.' Well, he proved it... 'You, he said must now leave through this window." Gruenther was definitely afraid of the possibility of a similar ending. The general sounded the alarm. Speaking to the Senate Foreign Relations Committee, he anxiously reported: "Although atomic warfare is now an accepted part of NATO military doctrine, the communists are advancing rather effective propaganda in Europe against the use of atomic weapons. The Russian propaganda on peaceful coexistence is connected with this. The Russians are beating the US in the political war. Already a slight but clear tendency toward relaxation is noticeable. This is not alarming as yet, but can become alarming)' The ever increasing demand of the peoples to outlaw atomic and hydrogen weapons is throwing Gruenther into a panic. In his speech at the Waldorf-Astoria Hotel in New York, he sounds a really hysterical note. "There is a quite serious danger," Gruenther said excitedly, "that public opinion will force the political leaders to make a dangerous compromise, which, in the final analysis, can turn out quite unfavorably for us." And pointing once again to the danger represented by "communist propaganda" against the atomic bomb, the general hysterically cried: "It would be madness to relinquish it" (i.e., the bomb). - 150 - Approved For Release 2001/07/28: CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Fearing the insight of the peoples, Gruenther, with "genuine sadnese, admitted that one of the main problems of NATO was to force the public to recognize that it was a "defensive" organization, and not an "offensive one. In other words, he was trying to convince the peoples that the North Atlantic Treaty was intended for maintaining peace. Vain attempts: This propaganda maneuver was unmasked in a report of the Central Com- mittee of the CPSU at the 20th Party Congress... "The adherents of a 'position of strength' policy," the report states, "are presenting the armaments race as a basic recipe .., for maintaining peace! It is quite apparent that if states compete in increasing military might, the threat of war grows rather than diminishes". The aggressive nature of the Atlantic Treaty, apparent from the first moments of its existence, are being revealed and confirmed daily and hourly. The following fact is one of the clearest indications. When the Soviet Union announced its desire to join NATO, the Western Powers refused. Thus they themselves exposed the insincerity of their announcements as to the alleged defensive character of NATO and showed the closed, aggressive character of this grouping, directed against the Soviet Union and the peo- ple's democracies. Is it necessary to say that Gruenther began to exult when he learned of the bloody attack by Hungarian counterrevolutionaries, inspired by Western, mainly American, reaction. Gruenther labelled as "freedom fighters" the butchers and murderers who unleashed the white terror in the country, the torturers who hung by the feet and burned Hungarian patriots alive. What kind of freedom? His Gruentherite, capitalist freedom of the exploitation of man by man. The tragic Hungarian events delighted Gruenther even more because they in his opinion, slowed down and undermined the process of relaxation of international tension, a process so odious to Gruenther. In April 1956 SACEUR III announced that he was resigning from his NATO post to "make it possible to promote someone younger and to make way for new ideas." It was announced on the spot that Gruenther's successor would be Air Force General Norstad, again an American! Gruenther was re- placed by Norstad on 31 December 1956. As to the future activities of Alfred Gruenther, after many guesses and assumptions, it was finally announced that he had been appointed President of the American Red Cross. There is no doubt that General Gruenther will spare no pains to turn the American Red Cross into his kind of branch of NATO. - 151 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 However, there are weighty reasons for supposing that Gruenther's retirement was in no way dictated entirely by his wish "to make way for new ideas." A quite sad event for the diplomat-general preceded his departure. He let out a secret. Speaking to a group of journalists at the beginning of April, he gave them to understand that in case of war the armies of the European NATO countries would be no more than pawns in the bloody atomic game, which the imperialist robbers were intending to maneuver, sacrificing the lives of hundreds of millions of people! Gruenther's revelation caused an unbelievable stir in the Western press. Official protests followed, and, a week later, the forthcoming retirement of the chattering SACEUR III was announced. But he did not quiet down. Up to the very last day he travelled about the European capitals on farewell visits, intimidating, entreating them "not to relax their efforts", and brandishing atomic weapons. Everyone waves farewell in his own way. True to himself, Gruenther did not forget in the end (13 November 1956) to threaten the Soviet Union with an atomic fist, covered, of course, in a glove colored with defense. He announced that in case of attack by the Soviet Union (?!) the US "would resort to retaliatory measures", and "would destroy" the USSR. Thus, during three and one half years of NATO rule, Gruenther kept his style, the style of a militant atomic braggart, up to the end. ' It is characteristic that Gruenther gave his last long speech in Europe before his departure for the US in the Royal Festival Hall in London at a conference of the Federation of British Industries. Hardly had he arrived in the US when he spoke, where but at the convention of the National Association of Manufacturers calling for a continuation of the "position of strength" policy. Tell me who your friends are and I will tell you who you are. However, in this case it would be more cor- rect to speak of Gruenther's bosses, not of his friends... The lessening of international tension "is a fact to cause anxiety," and the outlawing of atomic weapons is "madness." Such is Gruenther's "creed." And although this distorted philosophy is deeply alien to the peoples, nevertheless statesmen at the helm of some Western countries considered it possible to decorate the general who supports atomic war- fare upon his departure. President Heuss of the Federal Republic of Germany gave Gruenther the "Great Cross for Services"; the former French Premier Guy Mollet pinned the "Military Medal" to'his dress coat. They wished in this way to convince the public of Gruenther's "eminence." But all the activity of SACEUR III inexorably shows that he belongs to those people of whom the eminent English satirist, Henry Fielding, said "their greatness consists of inflicting all sorts of evils upon mankind." -152- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 The Legion of American Reaction /kir. ChapIygin There is a sentimental legend about the birth of the American Legion, In 1918, according to this legend, when the last battles of World War I were dying away, two front-line fighters met in an American hospital in France. The history of the Legion colorfully describes the conversation be- tween these front-line fighters - Lieutenant-Colonel Teddy Roosevelt, Jr. and Sergeant William Patterson. The obscure sergeant and the brilliant officer had a friendly conversation about what they intended to do after the war. Both were fascinated by the idea of creating an organization which would unite veterans. The Legion "chroniclers," recalling this "historic meeting" with tears of tender emotion, write: "They (Roosevelt and Patterson) agreed that they wanted to return to their units as quickly as possible, tet the whole job over with,' and then to home and establish a veterans' association for the good of the country'." Patterson was later killed in action. Poor Patterson thus did not even succeed in "getting the whole job over with," i.e., the war, which was unnecessary and alien to his in- terests. However, the legend of the brotherly ties of friendship which so idyllically connected the aristocratic officer and the obscure ser- geant continued to live. It even was a success, and a far from acci- dental success; in the US even legends are business. And a new mass organization, the American Legion, needed publicity (advertising) during the days of its birth. ? Incidentally, this advertising was organized on such a "grand scale", that not even the most naive person could believe that it was paid for by Sergeant Patterson, living on a soldier's rations, or even the well-heeled officer, Roosevelt. Poor Patterson already lay in his grave, having died for the sake of profits for the fantastically rich monopolies and concerns. And thousands of journals, pamphlets and prospectuses shouted about the beauty of his idea of creating a legion of veterans, an organization in which there would be no ranks, in which millionaire and street-cleaner would be equal. No, it was not the dead Patterson's legacy, consisting of a mess kit and a spoon, which became the basic capital for establishing the Legion. From where did this by no means small capital come, then? - 153 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28: CIA-RDP65-00756R000300270001-9 , The American newspaperman, Justin Gray, did considerable work to ansiqer this question. The task he set himself was not easy; the Legion's financial matters are kept strictly secret. They were veiled with new legends. 1111921 the Legion published a "Dictionary of Facts." This stated that 400 American citizens from 13 states raised $257,000 and presented it "for nourishment" to the forming Legion. In 1923 a Legion historian, James, apparently forgetting the first legend, gave another version. He affirmed that "213 Legionnaires" paid this money. In 1946 yet another historian, Jones, without any embarrassment stated that $305,255 was collected for establishing the Legion and that only 93 per- sons Contributed this sizeable sum. The further we go into historical research on the establishment of the Legion, the more we understand why the creators of the sweet, senti- mental legends have entangled themselves. Justin Gray energetically undertook to eliminate the uncharted areas in the history of the Legion. And he discovered that the version of the touching meeting of the military friends being treated for their wolinde in an American hospital in France, and thinking up the "happy idea" of creating a mass veterans' organization, was a cheap invention. The facts easily refute it. ,"Three ,years before Teddy Roosevelt was discussing the creation of an American Legion with his friend, Sergeant Patterson," writes Justin Gray in his book, "and four years before he 'introduced' his plan to fellow officers at dinner in Paris, he was already on record as one of the incorporators and directors of an organization called the American Legion." Three Years after this organization was established, they decided to arrange its second birth. The name of the obscure Sergeant Patterson was needed to put new "color" into the history of the veterans' organi- zation, to make this history more appealing for millions of GIs (CI is a nickname for the American soldier widely used in the US) who were about to exchange their rifles for the tools of peaceful labor. Th P facts which so decisively debunk the primitive, sentimental , legend show exactly who the friends were who supported Lieutenant- Colonel Teddy Roosevelt, Jr. The people making up the "big twenty" who created the Legion in 1919 were as remote from the obscure Sergeant Patterson as heaven is from earth. Theodore Roosevelt, Jr., himself was vice-president of Doubleday, Doran Publishers and director of the American, apress Company, which was affiliated with the Rockefeller interests through the Chase National Bank. And here, as an example, is some brief information on five of Teddy's friends who joined him in recreating the Legion. - 154 - Approved For Release 2001/07/28: CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 S. Franklin D'Olier, the First National Commander of the Legion, was president and director of the Prudential Life Insurance Company, connected with the Morgan group, director of the Rockefeller Chase National 'lank, director of the Pennsylvania Railroad Company, the National Biscuit Company, the American Bank Company, etc. David Marvin Goodrich was chairman of the board of the B. F. Goodrich Company, one of the largest concerns in the US rubber industry. BaLacy Kountz was chairman of the board of the DeVoe and Reynolds Company, director of the Metropolitan Opera and of the Real Estate Company. Edward Buxton was chairman of the board of the Five Textile Mills and director of the Theodore Foster and Brothers Textile Company. Francis Appleton was director of the Waltham Watch Company, the Mount Morris Bank, and the National Park Bank, and co-owner of the firm of Appleton, Rice and Perrin. The other members of the "twenty" who organized the Legion were also at home in the salons of capitalist magnates. It is characteristic that even the heads of the Legion were, from year to year, capitalist big shots, Wall Street manufacturers and bankers: Abel Davis, John Henry Sherbourne, Henry Fairfield Osborne, Jr,? Devereaux Milburn, Lawrence Harly Whiting, etc. The capitalist monopolies caused the Legion to be born. They paid for it. It faithfully serves their interests. The aims and tasks of the American Legion were already determined three years before the legendary "meeting in the hospital." These tasks were determined, of course, not by such simple fellows as Sergeant Patterson, but by the brilliant big-business friends of Theodore Roosevelt, Jr. And these tasks did not consist at all of putting an end to such a thing as war; on the contrary, they were directed toward pre- paring millions of simple Americans for war. The first National Commander of the American Legion, Franklin DrOlier, frankly defined another basic taskibf the Legion. In an article printed in the American Legion Monthly, capitalist D'Olier announced without beating about the bush that the Legion must prevent the develop- ment of progressive, democratic ideas, and the growth of the workers' movement in the US. "Let us remember the situation after the Armistice (World War I - Yu Ch.)," wrote D'Olier. "The nerves of the whole world were on edge. Fear of Bolshevism ruled. The social revolution in Russia was accom- plished by dissatisfied soldiers, and there are a great many soldiers in the world occupied only with thoughts of their troubles." - 155 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28: CIA-RDP65-00756R000300270001-9 To block-the stream of history, to force it to go backwards or at least to, stop - that was the idea controlling the minds of the frightened morlopoly bosses, before whose eyes blazed the glow of the Great October Socialist Revolution. And the friends of Theodore Roosevelt, Jr. did not spare funds for this job, for the job of struggling against life, progress, and the people who wish to be free of their adversities. The monopoly big shots called on each other to loosen their purse strings, to show kingly generosity to their donations to the Legion. Here is a typical letter from a representative of one of the largest meat-canning firms in the US to a Chicago meat seller: "NS are all interested in the Legion," said the letter, "and in the results it will have in realizing its ultimate aim - the suppression of radicalism. "It is extremely important that we help this worthy activity. The chairman of the meeting, has proposed that I approach various stockyard interests for contributionS." The "worthy activity" of the American Legion was wholly directed toward rousing war hysteria in the US, preparing the country for a new -military adventure of the imperialists, cruelly suppressing the progres- sive movement, and mercilessly putting down of any attempt by the workers to defend their rights and achievements. While hired historians, inspired by donations from the monopolists, are creating banal, sentimental legends of the brotherly friendship be- tween the capitalist officer and the poor sergeant, life is creating , another, truthful, genuine chronicle of the American Legion. And this chronicle shows that the Legion is used by its Wall Street bosses as a heald of new wars and as a true stronghold of Imperialists. There is no slander against the Soviet Union too vile and unscrupu- lous for the American Legion to take part in. Encouragement of anti- Soviet hysteria, appeals for more and more wars against the USSR and the people's democracies, and demands for a furious armaments race are heard at all the Legion conventions. 14 Here is the bare chronicle. 195? The National Convention of the American Legion adopts a recommenda- tion demanding that the Korean war be expanded; that US mastery in the Far East and Southeast Asia be strengthened; and that war be started with China. - 156 - Approved For Release 2001/07/28: CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 The Legion's Convention supports the demands of the secretaries of Argy and Navy, who are urging increases in military appropriations. 1953 The National Convention of the American Legion approves a resolution demanding total war against the countries of the socialist camp and the use of atomic weapons in this war. The Convention opposes the entry of People's China into the UN. 1954 The National Convention of the American Legion passes a resolution which states that the Legion is dissatisfied with the peaceful settle- ment of the war in Indo-China. The Convention opposes negotiations to relax international rela- tions and demands a policy of "concentrated retaliatory blows." The Convention also demands a most speedy establishment of a military bloc in Southeast Asia and the rearmament of West Germany as part of the armed forces of the North Atlantic Union. It further advised breaking with the USSR and the people's democracies. The Convention approves the government's program of creating 137 air regiments by 1957 and supports the proposal to introduce universal military conscription in the US. 1955 The Convention of the Legion censures the US government for aid to India, since India maintains friendly relations with the USSR. In a desire to frustrate peace, its resolution called on the US to withdraw from the Nilitary'Armistice ComMissinn in Korea. The National xecutive Committee of the American Legion passed a resolution demanding that the US continue to occupy the whole of Formosa (Taiwan). 1956 Alarmed by the collapse of the "position of strength" policy and the relaxation of international tension, the Legion's top echelon makes desperate attempts to resume the "cold war." At the Legion Con- vention there are speeches eulogizing the policy of strength, and harsh threats are heard against all progressive people in the US who desire peace and strive toward normalization of relations with the USSR. * * * -157- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 There are not the slightest doubts about the political sympathies of the Legion's top echelon. They are always with those who are preparing for war. They are mortal enemies of those who fight for peace. In 1933 the heads of the Legion awarded the title of Honorary Legionnaire to Benito Mussolini. .American reactionary circles more than once planned a Fascist revolution in the US with the assistance of the Legion. Its bosses never stop for a minute the frantic propaganda, full of furious anger, against the Soviet Union. Even in 1919 those who formed the Legion were worried about the mood of the rank-and-file soldiers, who thought about the needs of the people and clearly did not wish military adventures. It was not easy to keep the deceived Pattersons obedient or to educate them to be professional killers. But the leaders of the Legion dealt not only with some recalcitrant veterans. The Legion became the watchdog of reaction. How the Legion is used to suppress the constitutional rights of American citizens and how it puts down the workers in the US who are struggling for their vital rights, has long been known from the boastful stories in the American bourgeois press. In October 1935 the reactionary Time magazine wrote that the slaughter in Centralia, Washington, made the American Legion famous as the most potent strike-breaking organization in the country." In Centralia the legionnaires butchered the lumber workers organized in a labor union. Many workers were killed and mutilated during this un- bridled pogrom. Since then the sorry fame of the Legion as the most powerful strikebreaker in the US has spread. Those who enter the Legion are forced to pass a peculiar examination in strike-breaking. Here, for example, are the questions which the heads of one of the New York Legion posts give the new initiate: "Would you go on strike if the union told you to? "Would you carry out the Legion's order if it ordered you to break this strike? "If the Legion, through its officials, ordered you to break a strike in some other industry than your own, would you obey this order?" The role of strike breaker and policeman is not all that is required of the legionnaire. He must also be an agent of the police detective organization, the FBI (Federal Bureau of Investigation). The head of the FBI, Hoover, declared in a speech published in the Legion-distributed press: - 158 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 "For many years the Legion, in close cooperation with the FBI, has struggled to maintain order in the country. With the coming of war, business-like relations between them became even closer and the results were even more favorable." After World War II the "business-like cooperation" between the secret police and the American Legion strengthened. As the New Republic magazine states, "Hoovers people" still play a conspicuous role in Legion leader- ship. Justin Gray relates eloquently in his book, "The Inside Story of the Legion,? how Legion posts entangle whole cities in a spider web of inves- tigation and informing. Everywhere the eyes and ears of the Legion fol- low every step of the American citizen; they are ready, apparently, to take under special observation and examination even the dreams of a peaceful father of a family. "Informers," says Gray in his book, "can be both legionnaires and non-legionnaires. They can be an officer of the local post, the mayor of your city, or your nearest neighbor, a non-veteran with whom you chat each evening through your garden fence. He regularly reports to . Indianapolis (the city where the Legion staff is located) everything that you say, do or think." The power of the Legion over the fate of the ordinary American often becomes unlimited; in many US cities the Legion, in essence, controls all social and cultural life. In the US there are towns where the Legion holds all key positions. Without its assistance the demobilized soldier cannot find work. The politician who quarrels with the Legion post (the local organization) can say good-bye to his career forever. At one time truthful reports were printed in the American press about the cities of fear. One of these cities, Middletown, was described as a place where the whole population is benumbered; each step of the Middletown resident is controlled by reactionary zealots. A cruel pun- ishment by the Black Hundred threatened the citizen who joins a'labor union. Dozens of sinister voices on the telephone frighten the person seen reading a progressive book or newspaper. And the organizer of all this torture by fear, to which the whole population of the city is ex- posed, is the local American Legion post. The US ruling circles love to boast of their "objectivity?, their loyalty to freedom and democracy. Therefore, even when the remnants of democratic freedoms are violated through cruel laws, when reaction is disposing of them especially unceremoniously and brazenly, the so-called "social organizations" with a pro-Fascist slant of the American Legion type are called upon for help. Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 The workers and employees of a department store in the modest town of Galveston decided to join a labor union of office and sales personnel. One would think this was a quite innocent attempt, in permissible form, to defend the elementary and vital economic interests of the workers. But reaction gave the signal to deal with the progressive elements. The legislative organs of the state of Texas, making use of the "incident" of entry into the labor union of office and sales personnel, hurriedly worked out a bill prescribing the death sentence for every Communist found in the state. Under the guise of fighting against the danger of communism, it was decided to outlaw not only all progressives, but also those thinking only of defending the working rights of a citizen. An urgent investigation of communist activity in Texas was planned. No particular communist activity was noted in the state. How could it be fabricated? Here the masters of dirty business from the American Legion were called upon for help. Along with the legionnaires, professional false witnesses - the FBI provocateurs, especially the not unknown Harvey Matusow - also participated in concocting fantastic "crimes" of the communists. In his book, "False Witness," Matusow relates more than a little about the unsavory role which the American Legion plays in the country's political life. Where the government organs and the staffs of the two- ruling American parties (Republican and Democratic) must maintain the appearance of not being implicated in disgusting political maneuvers, the American Legion comes to the rescue. When the hired false witness, Matusow, had to appear as an agitator for the most reactionary candidates of the Republican Party, a "solid reputation" was created for him. It was the American Legion that did this. The American Legion magazine printed a long article advertising Matusow before his tour of agitation. This made it possible for him to implicate in a Communist plot everyone who did not support these reactionary candidates of the Republican Party, including personnel of the New York Times, hundreds of teachers, etc. When the pillars of reaction need to get rid of unsuitable people, they mobilize the legionnaires. The blackest pages in contemporary American life are connected with the American Legion. The mass assault on the audience at a concert in Peekskill by the outstanding singer and peace fighter, Paul Robeson, was organized with the active participation of the American Legion. Those who awarded the title of honorary legionnaire to the first "prophet" of Fascism, Mussolini, would very much like to train, from among the legionnaires, youths like the Black Shirts, who participated in the march on Rome, or Hitler's Brown Shirts. And the money-bags, interested in keeping their Black Hundred, do not grudge the funds for this training. However, it would be the grossest error to believe that all members of the American Legion are Fascists and confirmed reaction- aries, or hardened enemies of progress. -160- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Many of the present-day legionnaires have shared the sad fate of their, predecessor, Sergeant Patterson, with whose name the "chroniclers" of the American Legion have speculated so unceremoniously. Hundreds of thousands of Pattersons have been caught in its net of deceit. The fact that the real master of the Legion is the staff of the American monopolies, the National Association of Manufactuers, has been carefully hidden from them and remains hidden. The facts revealing the true purpose of the Legion have been hidden from them and remain hidden. Of course, many of them who have been forced to do the dirty business of strike breaking, secret investigation for the FBI, and getting rid of honorable people, have been decoyed into a trap out of which it is not so simple to break. Justin Gray gives a typical statement of one of the ordinary legionnaires, a worker who is a plumber: "I do not like this business of beating up people, but if I don't take part in it I'd have to go out of business.?" The tragedy of the majority of legionnaires is the tragedy of peo- ple drawn by deceit into proceedings hostile and foreign to them. The present-day Pattersons are beginning to understand that they have been deceived. However, the deafening propaganda, for which the monopoly big Shots grudge no funds, continues to influence these people, trying to convince them that the Legion is the most democratic organization in the world, and that the Legion is defending the veterans vital interests. The American press now speaks openly of how remote the leadership of the Legion is from its rank-and-file members. Not long ago an interesting article appeared in New Republic. It exposed the ever-growing sharp distinctions between the leaders of the American Legion and the mass of deceived and hoodwinked people who are its rank-and-file members. During the last seven years, this magazine affirms, the Legion has been controlled entirely by a very few people, directly affiliated with banks and monopolies. Each year in May important people, bigwigs from the largest monopolies and other powers-that-be, gather to name the new national commander who must officially be elected in September at the Legion Convention. All the decisions and recommendations adopted at these conventions are worked out by these leaders, who do not even bother to ask the opinion of those Pattersons in whose names these decisions are adopted. The warlike cliches and appeals for new military provocations that re- sound every fall from the convention hall have nothing in common with the opinion of the majority of the legionnaires. -161- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 ? Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 The internal procedures of the Legion symbolize, as it were,, that -outrage against democracy which the bosses of the monopolies openly allow themselves, while strenuously advertising benefits for the so-called "free world". The propagandists paid by the monopolies affirm that all of the meMbers of the American Legion are equal and that there is no difference in ranks here, no distinction between rich and poor. In practice everything appears otherwise. One of the commanders of the American Legion, Griffith, speaking before big businessmen, quite frankly spoke of the nature of that "democracy" which is cultivated in the Legion. "Ilan," declared Griffith, "is a donkey, and to make him move, it is necessary to lure him from ahead with a carrot or to urge him from behind with a stick. The carrot is an incentive. The stick is a means of com- pulsion. In America we always use the carrot." There are many caSes Showing that the attempts of the legionnaires to defend their rights have been blocked decisively and cruelly by Legion leaders. The story of the Duncan-Paris Post (local organization) is an example f this. This post, concerned over a serious housing shortage for veterans, decided to take the initiative. It began a campaign for mass housing con- struction for veterans in New York. Forty-three posts supported the Duncan-Paris Post. The former front-line fighters decided to show the public all the misery of their situation. The post negotiated with the owners of the Ludwig Baumann department store to have one of the legion- naires with his whole family, goods and chattels, settle in one of this store's windows. Two other families found a night's lodgings on the stage of one of the Broadway theaters. The Duncan-Paris Post devoted all its effort to support of the Nyatt-Patman bill providing an extensive veterans' housing program. The Legion heads made it appear that they were supporting the bill, "this carrot" for the legionnaires. But then the time came to fight for passage of this bill in Congress. The heads of the Legion did everything to make it fail. This business was not finished. The Legion post which had been bold enough to show initiative and fight energetically for veterans' rights was suspended by an order from above. The Legion's National Executive Committee simply crossed this post off its lists. -162- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 This episode, and there are many of them in Legion life, showed clearly not only the nature of the ostentatiously advertised "democracy" in the Legion, where there are allegedly no ranks and rich and poor are equal. It also showed the fundamental difference between the vital in- terests of the ordinary legionnaires, the former soldiers, and the heads of the Legion, the rich businessmen. The legionnaire who was compelled to spend the night with his family in the window of the department store or on the stage of the theater needed the vast housing construction pro- gram as much as he needed air. But this program was not acceptable to the Legion commander and his circle because it was against their interests. When we read the "recommendations", full of frantic hatred of progress and democracy and voicing hostility toward peace, adopted by the Legion's national convention, we can clearly see how antagonistic these anti-popu- lar writings are to the majority of the legionnaires. It would be naive to think that the legionnaires, former front-line fighters familiar with the horrors of war, have been completely uninfluenced by that great striv- ing for peace which is characteristic of the entire American people today. Certainly also in 1919, when the American Legion was reestablished on a new mass basis, the majority of the front-line fighters entered it pre- cisely because they sought a peaceful organization of their lives and the prevention of more wars. Here, for example, is how Justin Gray describes his intention on joining the Legion: ... I wished that the Legion would become a great force in the de- fense of peace; that it would support the majority against the minority; that it would fight for state housing construction, for price control and for racial equality." Even those front-line fighters who could not avoid realizing the reactionary nature of the statements of some of the Legion "leaders", be- lieved in the power of democracy and believed that the millions of vet- erans could realize their will, defend their interests and influence the leadership. Today these illusions have been scattered as ashes. The peace movement has grown immeasurably. And no matter how heavy the pressures exerted by the Legion top echelon, its rank-and-file members still at- tempt to express their views on peace. And this desire is so strong that the middle level of Legion command, the heads of the posts and divisions, can no longer ignore it. The peaceful mood of the masses even penetrates the sessions of the national convention, meeting annually at luxurious resorts far from the homeless veterans, and the sessions of the Legion's executive committee which take place under the direct con- trol of the "council of gods" of capitalist America, the National Association of Manufacturers. Here is an interesting case which enables one to understand how the Legion heads react to any stream of fresh wind bearing the breath of peace, which seems terrible to them. In May 1955 a -163- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 closed session of the Legion Executive Committee discussed a resolution on 1,1S foreign policy. One of the session's participants proposed a reso- lution encouraging peaceful foreign policy measures. The draft resolu- tion stated that the lessening of international tension had brought the US closer to genuine peace than at any time since the end of World War I. This innocent proposal struck the members of the executive committee with an impact as though someone had tried to set off a hydrogen bomb in the room where they were meeting. The seditious draft resolution was immediately turned down. It is not easy to arouse war-like feelings among people to whom war is not necessary but harmful, these people, in addition, being subject to the influence of public opinion which is coming out against war ever more actively. And it must be said that the Legion heads have to over- come serious crises within their own organization. Despite the cruel punishments falling on the head of the apostate who dares to leave the organization, resignations of rank-and-file legionnaires are increasing. Between 1947 and 1950 the Legion lost over a million members. The Legion heads sought to correct this matter with the Korean war. They drew soldiers returning from this war into the Legion. However, this artificially organized influx has been replaced by a new, strong outflow. As the New Republic affirms, despite the terror and the punishment of the recalcitrant, a series of quite significant rebellions has occurred since 1948 within the Legion. The ordinary Legion members are beginning to replace the leadership and to place people who are not so clearly con- nected with monopolistic circles at the head of this organization. But the crisis which the Legion is undergoing, of course, does not change the Legion's reactionary nature. The power of military reaction in the US is as great as before. As formerly, the Legion is its strong- hold and support. International imperialism is trying to take revenge for the defeats inflicted on it by the forces of peace. Reaction is mobilizing all its reserves. Here is how Legion Commander V. K. Daniels served these aims. Soon after his election to the position of Legion commander, he and three other legionnaires went to the Middle East, where the imperialists have increased their machinations against the peoples of the Arab countries, and primarily against the Egyptian people. Having visited Cairo, Daniels then spoke in the US, making a hostile statement against G. Nasser, Egypt's president. The commander did everything that he could, through congressmen associated with the Legion, to cut off economic aid to the Middle Eastern countries. He insisted on "condemning" the Soviet -164- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Union in connection with the events in Hungary, considering such "condemna- tion" a convenient reason for organizing military interference by the im- perialists in the internal affairs of the Hungarian People's Republic. The American Legion also participated actively in the slanderous uproar organized by American reaction in connection with the Hungarian events. The descendants of Sergeant Patterson are asking for new pogroms, wars and provocations. However, history is moving forward and reaction will have more than a little work to keep even its stronghold and support, the American Legion, unconditionally obedient. -165- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Behind ths Labor-Union Screen G. Kulikova The articles and speeches of George Meany... The voice of this inex- haustible orator is heard on the radio, resounds from the platform at meetings, gatherings and conventions, comes from university lecture stands, and its sweet syrup flows about the tables in the banquet halls of the luxurious hotels in the American capital city. What is the topic of the oratory of George Meany, President of the American Federation (4 Labor and the Congress of Industrial Organizations (AFL and CIO), which have 16 million workers of various industries as members? Is his voice perhaps thundering forth in defense of the needs and hopes of the American worker and appealing for a fight for his rights and vital interests? Especially since there is something to worry about here, something to sound the alarm about. Recent years in the US have been characterized by serious attacks by reaction against the labor unions, by an intensification of exploitation, by an increase in taxes, and by a decrease in real. wages. But the head of the AFL and CIO is not devoting his eloquence to these vital problems. Like a memorized lesson, he repeats from day to day scandalous nonsense, setting one's teeth on edge, about the conspir- acies of "international Communism" and its "drive toward world domina- tion." He advises a further armaments race and the creation of anti- Soviet military blocs, and appeals to the Western powers to refuse cooperation with. the Soviet Union. He pounces violently on all those who defend a policy of peaceful coexistence and friendship with the countries of the socialist camp. At the American Legion convention he howls about the "Red Bear" which allegedly intends to "attack" America. At a Catholic University commencement he grieves because at some places in the US "indifference to the threat of Communism" is appearing. At the National Academy of the Federal Bureau of Investigation he advises stopping the exchange of delegations with the Soviet Union and the people's democracies. At a banquet organized by construction companies he turns on the owners with reproaches t they, you see, are not fighting against the "Red Terror" decisively enough. In saying these things, he is in no way embarrassed by the circumstance that the hands of the police whom he is addressing are stained with the blood of striking workers or that the owners are not union members but enemies of the workers. No matter where Meany speaks, at a labor-union conference, on the radio, or at an assembly of inveterate reactionaries like the American Legion, everywhere he constantly appeals for aggression against the Soviet Union. He himself is a fervent advocate of the "crusade against Russia" and of the theory of "liberation" of the people's democracies, -166- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 i.e., of enslaving them to American capital. He is not only an enthusi- astic supporter, but also an active participant, of plans intended to eliminate the power of the peoples and return capitalism to the USSR and the other socialist countries. In distributing lies and scandal, Meany pretends to express the opinion of the workers who belong to the AFL - CIO. "We," "us," the "labor unions," the "rank-and-file workers" - these words literally per- meate his language. However the facts show that millions of American workers, as well as, by the way, even entire labor unions, in no way share the opinions which are so frequently expressed in their name by the man who is the head of the American labor unions in order to leave them without leadership. How did it happen that the head of the labor union association in the US turned out to be one of the worst sworn enemies of the first workers' government in the world, joining shameless warmongers in calling for military action against the Soviet Union? This question can only be answered by becoming acquainted, if only briefly, with the peculiarities of the labor movement in the United States. The American Federation of Labor was born in the days of a great upsurge of the labor movement, when the proletariat of this country was stubbornly fighting for an 8-hour workday. This was in the 1880's of the last century. A mighty-wage of strikes carried along all sorts of demagogues and traitors who regarded the labor organizations as profit- able business. For decades the labor unions were the private preserve of the highly paid top echelon of the laboring class, the so-called "worker aristocracy", which feeds itself with crumbs from the grand table of the monopolies._ The Federation was organized by crafts and consisted of numerous small unions. The union czars, the "bosses," warred with each other for the right to lead the workers of one or another trade, or, more accurately, to see who would get their membership dues and thus be- come rich. A man who seized leadership, placed his people in key posi- tions and thus ensured for himself many years of "presidency," became the master and acquired an income. "In his small kingdom he was almost a demigod, surrounded by a throng of courtiers who flattered and in- dulged him," wrote Fortune magazine, describing a typical union boss. Twenty-five, thirty or even forty years were common periods of leader- ship by a single man in the unions belonging to the AFL. Matters reached such a peculiar state that some of them proclaimed themselves president for life. Relations between these union barons and the owners were also peculiar. They were based on the opportunistic theory that the interests of labor and capital were the same, that it was possible to establish -167- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 peace and cooperation between the classes. This thoroughly false theory let down deep roots in the US, and found enthusiastic admirers and fol- lowers. Certainly it was quite convenient for the apologists of imperial- ism, who even now reiterate how "exceptional" is the American way of development and describe the system of "free ownership" as a special kind of capitalism not subject to its laws. From this also sprang the thesis that there are "no warring classes" in the United States, a thesis enthusi- astically held by the union leaders and used to avoid the class struggle and the implacable struggle for the interests of the workers. These words of V. I. Lenin apply fully to the reactionary leaders of the American unions: "persons within the worker movement who belong to the opportunistic school are better defenders of the bourgeoisie than the bourgeois themselves. Without their leadership of the workers, the bour- geoisie would not maintain itself in power." All the leaders of the American Federation of Labor have been this type of person, beginning with the first president, Samuel Gompers, a zealous proponent of the theory of cooperation with the monopolies. As early as 1915 V. I. Lenin warned the workers of the United States and other countries of the world, showing the treacherous role of the leaders of the AFL at that time. He stated that "Gompers and persons like him are not representatives of the working class: they represent only the aristocracy and the bureaucracy of the working class." Gompers, Green, Meany, one replacing the other as president of the Federation, belong to the same category of stewards of the monopolies, and henchmen of imperialism in the worker movement. The essence of their policy consists of forcing upon the unions the idea of "cooperation" with monopolistic capital, or, more accurately, of subordination to it, of renunciation of the working class's right to government power, and of support of an imperialistic foreign policy. In no other country have opportunistic, reformist leaders caused so much harm to the labor movement as in the United States of America. In no other country has the bourgeoisie succeeded on such a scale in buying out the heads of the working class as in the US. Nowhere are the cor- rupt ideas of subordinating the interests of the workers to the interests of capital implEmented as openly and shamelessly or are the labor unions, these mass organizations intended to unite the workers' efforts in the struggle for their vital rights, so undermined. The American monopolies could not have achieved all this if they had not been helped by their agents, the opportunistic leaders, the "lieutenants of capital" in the labor movement, as Lenin called them, if they had not exerted every effort to split the ranks of the workers, to fetter the unions, and to turn them into an appendage of the machine of the capitalist state. * * * -168- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 It was 1917. The Great October Socialist Revolution had triumphed. How should this victory be regarded? There was only one opinion on this score in the Executive Council of the American Federation of Labor. The birth of the proletarian state held the ruin of capitalism, and threatened to undermine the way of life so close to the hearts (and especially-to the pockets) of the union barons. In the hostile howl that rose from the bourgeois world the shrill voice of the American union leaders was also heard. Strangle and eliminate the country of the workers and peasants - that is that these people wished, dressed in the costume of labor leaders and pretending that they represented the interests of the workers. Many years went by. Many changes occurred. The capitalist states were compelled not only to discontinue the military and economic blockade of the Soviet Union, but even to enter into economic, commercial and cul- tural relations with it. The government of the United States also estab- lished normal diplomatic relations with the Soviet Union. More than that, the US and the USSR were allies during World War II against Hitlerite Fascism and Japanese imperialism. Only the leaders of the American Federation of Labor did not change. Vying with the most shameless reactionaires, they continued a fervent anti-Soviet campaign. Each step along the path of progress, each move toward improved relations with the Soviet government was accompanied by their hysterical howls. Paying tribute to their indefatigability and zeal, the Honorary Chairman of the US Communist Party, Willian Foster, noted in his book, The Twilight of World Capitalism: "The conservative leaders frequently surpass the capitalists themselves in their warlike chauvinism and their pathological hatred of the Soviet Union and the Communist Party.? The life of the American labor union bureaucracy was disturbed in the 1930's when, disregarding its will and wishes, mass labor organiza- tions, organized along industrial lines rather than along narrow craft lines, began to spring up. A severe economic crisis, changing to a lingering pre-war depression, stimulated the stormy growth of the union movement. Laws recognizing the rights of the unions (particularly, the so-called Wagner Act) passed during this period were the result of the ever-strengthening labor movement in the US. The heads of the AFL saw a challenge to themselves and their craft organizations in the formation of the industrial unions in which all workers participated, even the lowest paid. In 1.935 a group of such unions was expelled from the AFL. A second trade-union center, the Congress of Industrial Organizations (CIO), grew up. Its creation agitated all working America. The membership of the unions began to increase rapidly. During the last 20 years the number of workers organized into unions in the US has quadrupled and now totals 16 million. ?169- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Fora number of years the new labor-union center played a quite progressive role in the development of the labor movement in the country. The energetic activity of the labor unions and the powerful strike move- ment they developed led to a substantial increase in minimum wages, a reduction in the length of the workday, and an improvement in working con- ditions. The achievements of these years must also include the creation of a kind of social security system, the acknowledgment by many enter- prises of the right of the workers to paid vacations, etc. All this was achieved through violent battles and a long and stuboorn struggle which was successful thanks to the increasing organization and unity of the workers. * * * At the end of 1955 the two labor union associations, the American Federation of Labor (AFL) and the Congress of Industrial Organizations (CIO) were merged. This became possible partly because during the postwar years the position of the CIO leaders had come close to the position of the Green-Meany clique heading the Federation. This approach was espe- cially noticeable in the field of international relations: the heads of both organizations actively supported the aggressive US foreign policy, the policy of building up military blocs and fanning war hysteria. But the main reason prompting the leaders of the AFL and the CIO to take this step was that they were afraid the initiative would slip from their hands. The idea of unity had always been very popular among the US workers. They realize that the weakness of the labor movement is the result of breaking it down too far, of craft organizations, and of unnecessary and harmful rivalry among the unions. This made itself especially felt dur- ing the postwar period when the reactionary forces developed an attack on the democratic rights of the people. One after the other, Draconian anti-labor laws were passed. The most vile of them were: the Taft- Hartley Act, the McCarran Act, and the Brownell-Butler Act. Using these laws, the reactionary circles directed a blow against the labor figures who were most active and most true to the cause of the working class. Whole unions were affected by the blow, namely, those that fought most decisively for the workers' demands. Many strikes were suppressed and the unions and their leaders were placed under police control. An attack also developed against the people's standard of living. During the postwar years the workers' share in the national income fell steadily. The constant increases in prices, apartment rent, the cost of public services, etc., reduced all the workers' gains, achieved at the price of bitter strike battles, to nothing. The whole burden of the armaments race lay on the shoulders of the ordinary people. The rapidly increasing taxes are devouring at least one-third of the workers' and employees' income. According to union data, the income of at least two-thirds of American families was lower than the officially recognized minimum needed to live on. -170- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Only by uniting their forces and by an organized struggle would it be possible to repulse reaction's attack. Vast groups of workers under- stood that it was time to put an end to the smallness of units and to the craft organization in the labor movement. The question of unifying the unions became the order of business of the day. It was dictated by life itself, and had to be resolved regardless of whether the right-wing union leaders wished it. The heads of the AFL and the CIO understood the strength that the striving of the masses toward union unification was acquiring. And they could not avoid sensing the danger that, in view of the anti-labor ap- proach by the monopolies and the furious armaments race, they might lose control of the movement for unification. It was important to them to seize the initiative and to direct the movement for unity along a channel acceptable to the monopolistic circles. * * * 'long before the unification congress of the AFL - CIO, the press of the large monopolies began strenuously to publicize the President of the AFL, George Meany. The large weeklies praised his gentlemanly manners and bourgeois habits. Meany, they wrote, is a completely "decent," well-brought up fellow; you see, he rides to work in a luxurious limou- sine, is a judge of French wines, plays the piano and is even a poet. In this way the monopolistic circles expressed their approval of the activity of this union boss. What are the virtues of this so-called "labor leader" which are earning such unmistakeable good-will in Wall Street? It is certainly not his gentlemanly manners or of the exterior of this stout man with the flabby, fat face, who resembles a banker or manufacturer. George Meany began his career in the plumbers union. Becoming head of one of its divisions in his youth, he gained the company's good will because, as the Morgan magazine, Time, noted, "he never struck." "The employers respected the word of the devout Catholic, Meany," admits the magazine, apparently considering devoutness and humility very valuable qualities in a labor-union figure. It was obviously be- cause of these qualities that Meany soon became president of the New York State Federation of Labor, and in 1939, when the aging Frank Morrison re- tired, he was appointed Secretary-Treasurer of the AFL. Al]. his life George Meany has called on the American workers not to fight to obtain their rights, but to agree quietly and amicably to the prejudicing of these rights. He has not devoted his efforts to organiz- ing opposition to capital, but to suppressing the struggle of the exploited against the exploiters and oppressors. Along with this he, like other opportunistic leaders, has had to continually maneuver, con- cealing with loud, demagogic phrases, his capitulation and cringing before capital. -171- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Here is one of the characteristic dramatizations which Meany played as far back as the 1930's, concealing his true face from the workers. A bitter struggle for increased unemployment benefits was going on. It took an especially severe form in New York. Assuaging the mood of the mass of enemployed, Meany engaged in a noisy, demagogic campaign against the Government's New York District Administrator, General Johnson. "Meany grappled with the stormy General Johnson," said Time magazine, breathless with delight. "Meany and Johnson publicly denounced each other in state- ments on the radio and in the newspapers.., and peacefully dined together in private." Many years have passed since then and Meany has long since ceased to conceal his amicable relations with contractors, factory owners, plant owners, and merchants, in a word, with all the magnates of capital. He meets them quite openly as well as privately. Not many festive dinners, lunches and suppers are held in the restaurants of the fashionable Washington and New York hotels without his participation. He drinks the health of industrial and financial big shots and they condescendingly clap him on the shoulder and thank him for his faithful service. "During my whole life I never struck, never headed a strike, never ordered a strike, and never had anything to do with picketing," Meany admitted once. And this at a time when the workers are defending their vital rights in stubborn strike battles! About 30 million workers and employees of different trades have participated in strikes during the past 10 years. And only the right-wing socialist leaders of the labor unions have remained apart from the fight. Can there be a greater be- trayal of the interests of the American workers! Here is the kind of program that Meany proposed to the unions on the eve of their unification congress: "The AFL - CIO," he wrote in the New York Times Magazine, "will be ready and able to play an important part in establishing and maintaining peace in industry. The interests of the workers and of the owners are interconnected rather than hostile. The incomes of both depend on the continued prosperity of any given enterprise and of the country as a whole. Neither can produce without the other... The majority of conflicts between workers and management can be settled by peaceful means. And this is occurring now. The only difficulty is to work out a method for settling exceptional cases, be- fore a destructive strike or lock-out occurs." Meany concluded the presentation of his program for class coopera- tion with a proposal for concluding a "non-aggression pact" between the unions and the monopolies! "It is our duty to impose strict government control on the workers we represent. It is our duty to explain to the workers that they can- not receive the wages and working conditions that they want." Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 These are Meany's words. But they are spoken in the language of the owners. All the boundaries between such "labor" leaders and the capital- ists have been obliterated. The capitalist is plundering, and Meany blesses this robbery and appeals for humility to those who are robbed. The capitalist intensifies the squeeze of cruel exploitation, and Meany urges the oppressed workers, weakened by the monstrous sweat-shop system, hotto rebel. * * * The treacherous activity of the reactionary labor-union leaders toward the workers would likely have been worth only half as mach to the monopolistic circles if it had not been supplemented by anti-Soviet prop- aganda and by active participation in the realization of an aggressive foreign policy policy for the US. Meany, fortunately, is most zealous, most active and most diligent in this direction. He did not conceal his hostile feeling toward the Soviet Union even during the war, when the whole world was carried away by admiration for the heroism of the Soviet people in annihilating the Fascist horde. At this time Meany was worried only because the influence of the Communists was increasing among the workers. What can be said then about the "cold war" years, when all America was in the grip of violent propaganda of hostility and hate, and any expression in favor of peaceful coexistence with the socialist countries was considered almost a crime. That is when these sword-bearers of the monopolies appeared everywhere. They called for a military campaign against the USSR and demanded immediate overthrow of the Soviet power. And how many slanderous inventions were born in the bosom of the AFL, and were readily placed by Meany and Co. as salable goods on the anti-Soviet market! How much, for example, does the slander about "forced labor" in the USSR cost? How many times has it been put for- ward by the American reactionaries to poison the international atmos- phere? How many times have US delegations brought it up for discussion at sessions of the General Assembly of the UN, drawing public attention away from the most important international problems? However, this whole "problem" was a fantasy of a certain interna- tional committee of the AFL. "Theorists" of every kind from among the traitors to the socialists are at work in this union "state department." In particular, the renegade Lovestone plays no small role. He is con- sidered apparently not without some basis, to be the author of many of the speeches which Meany reads from paper. There is war in Korea. Unprecedented excitement reigns in the AFL Executive Council. With great enthusiasm they begin to disseminate chauvinist slogans. The union bureaucrats picture every strike and every attempt by the workers to improve their working conditions almost as though it were treason. When the US was compelled to seek an -173- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 armistice, the leaders of the AFL immediately appeared among thossA who were openly opposed to ending the armed conflict in Korea. The American newspaper, Worker, then justly noted the striking resemblance between the positions of Meariy and of the American puppet in Southern Korea, Syngman Rhee: each was demanding the continuation of the blood bath. All humanity sighed with relief when, in the summer of 1954, as a result of the peaceful initiative of the Soviet Union in Geneva, agree- ment was reached to conclude the 8-year old war in Indo-China. In Washington alone, tempers were not restored for a long time. The col- lapse of the aggressive plans and expansionist dreams caused an outburst of indignation there. Frothing at the mouth, Meany cried from the plat- form at the American Legion Convention that the Geneva agreement ',would go down in history as a point from which there is no return." By the way, Geneva more than once annoyed the warmongers and their union servants. The meeting of the heads of state of the four powers which took place in this city in the summer of 1955 seriously shook the ground under their feet. But even with a lessening of international tension, Meany and his associates continued their black deeds. They do not wish to reckon with the "spirit of Geneva"; they will have nothing to do with the desires of the peoples who are eager to be free of the threat of a new world war. The idea of peaceful coexistence between states with different social systems is undergoing a fierce attack from the adherents of the "position of strength" policy. In a whole series of speeches and articles, Meany is trying to vilify this idea, dear to the heart of every ordinary man. "A serious danger is threatening the free world today," he warns his audience. "It is engendered by the stupid, mis- taken opinion that we can safely accept the idea of coexistence with Soviet Russia," Commenting on these inflamatory statements of Meany's, the news- paper, Daily People's World, wrote: ?It must seem strange to the people of other countries that in the United States the bitterest opponent of peaceful coexistence between capitalist countries and socialist coun- tries is a union leader." Meany is trying to justify his anti-Communist position. A com- plete "theoryn? claiming to be scientific, has been worked out for this purpose. It is based entirely on one false principle: the concept of class peace and class cooperation. Since the workers and the owners have identical interests, affirm Meany and his accomplices, their enemy is identical. This enemy is Communism. Under Communism there cannot be private capital, private ownership, or private industry. And con- sequently, they say, there cannot be a free trade-union movement. As - 174 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 one can see, these pseudo-theorists consider union "freedom" to consist only of attack by reaction, anti-labor laws and persecution, and union subjugation to opportunistic doctrines concealing lawlessness and ex- ploitation. To defend the interests of the monopolies by identifying them with the workers' interests, this is what Meany considers genuine union freedom. "The free unions of America," he writes in the above- mentioned article in the New York Times Magazine, "are fighting against Communism in their own country and in the whole world. This unchanging opposition of the American union movement toward Communism is providing a basis of security for American business." Such is the "scientific basis" inspiring the anti-Soviet activity of Meany and Co. It is in this very theory that it is necessary to look for the main motives which led the reactionary leaders to waive their egoistical, mercenary interests and to approve the merger of the AFL and CIO. To turn the consolidated union center into a strong force for the "struggle with Communism" and to make it a hotbed of anti-Soviet propaganda--this is the aim of Meany and the other reactionary union leaders. It is enough to study the foreign policy resolution adopted at the consolida- tion congress. What doesn't it contains Appeals for an even greater armaments race and an expansion of the military blocs, the demand not to let the People's Republic of China into the UN, attacks against the idea of coexistence, appeals for "the liberation" of the people's democracies, etc.$ etc. All this was flavored with sizeable doses of anti-Soviet slander and demagogic statements about the "threat of Communism." The ruling circles of the US did not oppose the consolidation of the two union centers. "I hail the consolidation of the unions," spoke the Governor of the state of New York, Harriman, at the consolidation congress, "because the American unions have done more in the struggle with Communist subversion in the country and abroad, and have supported our government more straightforwardly than any other organizations in the us." Thus the monopolies expressed their approval of the action of Meany and his clique, through the words of this millionaire. * * In October 1945 the World Federation of Trade Unions was estab- lished. This was the most representative and inclusive international organization in the history of the labor movement. It included all the large national union centers, all, with the exception of the American Federation of Labor. The top echelon of the AFL was not in favor of the democratic forces which united to consolidate the victories achieved in the struggle against Fascism, and to ensure a firm peace in the future,c Even during the war the American Federation of Labor began to raise a fund to help the European unions. The last salvos had not died out when the Federation's ambassadors appeared in Europe. They came to help -175- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 reestablish the unions, they said innocently? As a matter of fact, their purpose was to split the ranks of workers and to repulse the upsurge of the labor movement resulting from the victory of democratic forces over Fascism. In Italy the "union" emissaries Dubinsky and Antonini were active, in France, Irving Brown, and in Germany, Rutz. They squandered money, bribing the labor leaders, spread anti-Soviet slander, and gathered the Quislings and Vichyites of yesterday around them. This was a carefully prepared plan to prevent the unification of the worker class. Its aim was the creation of a new international organization subordinated to the aggressive policy of the US ruling circles. This plan was created by the top echelon of the AFL. The union leaders served only to carry out the will of those who determine and the political program of the monopolistic circles. It was no accident that the ambassadors of this top echelon in Europe were also agents of the US State Lepartment and of the American secret political policel the FBI. In essence, the name AFL was only a screen concealing hardened spies and intelligence agents. We must give the French workers their due; they soon recognized the underlying intentions of the American salesmen operating under a union cloak and evicted Irving Brown from their country. "This lackey of the American reactionaries," wrote the workers' newspaper,La Vie Ouvrier, on 31 October 1946 "tried to make connections with everyone in France who wished to fight against the World Federation of Trade Unions. He sought out everyone, who, under the cover of anti-Communism, was ready to de- stroy union unity. He drew in Munichites and Vichyites, seeking to create from them a group of advocates of a new war." Brown was compelled to leave France and set up headquarters in Brussels. Here, in the luxurious Atlanta Hotel, was also located the suite of the so-called "European Bureau of the American Federation of Labor," a nest of spying and provocations, the center of anti-labor and subversive activity. From here, the threads of the conspiracy stretched into the countries of Western and Eastern Europe. Here the secret war against the international labor movement was begun. The reactionary press thinks highly of Meany because he was first among American union leaders to come out against the international asso- ciation of workers, the World Federation of Trade Unions. Meany has per- formed quite a few such "services." He directly supervised the perni- cious activity of the American agents operating in the European unions. It was certainly not without reason that he boasted that AFL money "split" the General Confederation of Labor of France." Actually, quite a lot of money was spent for the subversive activity. A figure of 160 million dollars was mentioned at the AFL congress in 1948 as having been - 176 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 spent to "bring life to the free union movement" ("free" in the American meaning). But, obviously the expenditures were not limited to this sum. In addition, it was discovered that considerable funds come to the union bosses from funds of the President and State Department of the US. The reactionary American newspaper, New York Journal American, admitted in May 1953 that the main center of American espionage, the US Central Intelli- gence Agency, "gave the AFL almost 3 million dollars for conducting secret political activity in France, Italy and some other countries." But the plans of international reaction failed. The AFL money did not undermine the General Confederation of Labor of France, nor did it undermine other labor centers in Europe. In 1952, after a 6-week trip to Europe, Meany was convinced of the stability and popularity of the pro- gressive labor organizations in France and Italy. This made the union boss so wild that he not only threatened his henchmen, but also sharply- criticized the European ruling circles, which, in his opinion, were not sufficiently fervent in the fight against Communism. "They let us work on this, but do not wish to raise a finger themselves," complained this defender of the interests of US monopolistic circles. International reaction's plans to destroy the World Federation of Trade Unions also fell through. The withdrawal in 1949 of the Congress of Industrial Organizations, the British Trades Union Congress and a number of small trade unions did not destroy the Federation. It not only maintained its influence, but even grew stronger, increased its member- ship and acquired great authority among the workers. The connection between the policy of preparing for war and the sub- versive activity of the trade-union schismatics is very direct. It is not difficult to be convinced of this. It is enough to remember the attitude of the leaders of the International Confederation of "Free" Trade Unions (ICFTU) towards the heroic struggle of the French dock work- ers against deliveries of American arms to West Germany. Irving Brown, an active worker in the Confederation, was sent to Marseilles. According to evidence of the French newspaper, Le Soil', a group of cutthroats re- cruited by him came with him. Writing about the activity of this group of criminals, the American magazine, Business Week, stated: "From time to time first one and then another of the confirmed Communists had to be brought to the hospital. Some of these Communists unexpectedly disap- peared into the dirty water at the wharf." The leaders of the ICFTU christened such gangs, "vigilance commit- tees," and tried to convince the public that they were formed by the workers themselves to fight against the "Communist threat." Recently there has been a notable development of contacts between different countries. There is a constant exchange of parliamentary, cul- tural, sports, trade-union and other delegations. Naturally, the -177- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 possibility of establishing relations with the workers of the socialist countries has received the attention of the trade-union public in America also. This has been encouraged since there has been an exchange of agri- cultural, construction, medical, journalist, etc., delegations between the US and the USSR. "Why not exchange labor delegations?" many union workers have proposed. But, like everything else that might lead to a strengthening of friendship and cooperation between the peoples, this pro- posal was shoved aside due to the emnity of Meany and his cohorts. They do not want the ordinary people of America to know the truth about the country of socialism. Let them live on slanderous nonsense, the fruits of the evil imagination of the adherents of aggression. "The smiles of the Soviet leaders are more dangerous than threats,? admonish the heads of the AFL-CIO in supporting the "cold war." At the dictation of the bosses from across the ocean, the Interna- tional Confederation of "Free" Trade Unions issued a directive forbidding all the national centers which were members of the ICFTU to exchange delegations with trade unions belonging to the World Federation of Trade Unions. This is the way that the trade union bureaucrats once again undertook to strengthen friendship and mutual understanding among the workers of different countries. Thus they once again proved that they are not at all guided by a striving toward peace as they demagogically affirm in their endless statements. To understand thoroughly how harmful the schismatic actions of these trade union accomplices of the monopolies, of the American trade union bureaucracy, are to the worker class, let us pose this question: who will benefit from a split in the international labor movement? It is quite clear that the strengthening of friendship and cooperation, con- stant communication, exchange of delegations, etc., could bring nothing but good to the workers of the different countries. As far as the monopolistic bosses are concerned, it is no secret that they are afraid of the development of such relations, of the workers of the Western world learning about the achievements of the people's democracies, and of the strengthening of unity among the workers in general. Consequently, the actions of the American union bureaucracy and of the top echelon of the ICFTU are of benefit only to the capitalists. They cause great harm to the workers and to the whole international labor movement. In serving Wall Street, Meany and his cohorts are actively helping the imperialists in realizing their colonial policy. Take, for example, the attitude of the top echelon of the AFL-CIO toward the aggression by England, France and Israel against Egypt. They kept quiet when the troops of the imperialist usurpers committed outrages on Egyptian soil, killing thousands of peaceful inhabitants and destroying ancient Egyptian cities. And this is not surprising if one keeps in mind that the leaders of the AFL-CIO echo their masters in expressing indignation -178- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 at Egypt's nationalization of the Suez Canal. One might wonder what business of Meany and his clique this was. Certainly the nationalization of the Suez Canal in no way affects the situation of the workers of the US or of any other country. The Egyptian workers gain from this move, as do the entire Egyptian people, who threw offbhe chains of colonial oppres- sion and who entered the path of freedom and independence. Nevertheless, Meany fought for "internationalization" of the canal, i.e., for giving it into the hands of the monopolies. He even took it upon himself to send a special letter to Secretary of State Dulles pro- posing that "pressure be put on" Egypt. A resolution of the Executive Council of the AFL-CIO was attached to the letter. In it, crude attacks against the Egyptian government and President Nasser of the Republic of Egypt alternate with appeals for "internationalization" of thea canal. Is it possible to express oneself more clearly on the question of the national liberation struggle of the colonial peoples? * * * At the end of 1952, an underground organizations Wolnosc Niepodleglosc (WIN), was exposed in People's Poland. It was engaged in espionage and the preparation of sabotage and terrorist acts and was financed from the US. The leaders of IN confessed their guilt to Poland's state security organs and admitted that they had received more than a million dollars from American intelligence agencies. The under- ground workers received additional subsidies from a certain agent known as "The Brown One." It developed that Irving Brown, who is both a trade- union worker and an agent of the US Central Intelligence Agency, had disguised himself under this nickname. "The Brown One", Brown, has large sums at his disposal which come from appropriations made under the so-called Mutual Security Act. This law, unprecedented in international practice, earmarked 100 million dol- lars for active subversion in the socialist countries. In succeeding years Congress has continued to make generous appropriations for these purposes. A considerable part of this money also passed through the hands of the trade union agents. As far back as the convention of the American Federation of Labor in 19480 Brown openly declared that the "AFL is creating a US fifth column in the people's democracies to operate in favor of the US." This type of activity had to become one of the chief aims of the Inter- national Confederation of "Free" Trade Unions. And although at that time it was only in the planning stages, Brown, in the same statement, proclaimed that the first point in its program must be "assisting in the overthrow of the present governments of Eastern Europe." The Danish newspaper, Land og Folk, published a secret resolution of the executive council of the ICFTU. This resolution stated directly that one of the Confederation's aims was espionage in the people's democracies. -179- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Other Personnel of this type also did not conceal the plans of reac- tion with regard to the people's democracies. Meany, for example, made a special announcement in Which he called on the emigre organizations for support. With the help of the AFL, an espionage center called "Free Trade Unions in Exile" was organized. It contained not only Fascists and traitors hiding from the people's courts in the Eastern European coun- tries, but also white-guard rabble who still cherish the dream of over- throwing the Soviet system. The participation of US "trade union" agents in subversive activity has been proven in places other than Poland. It has been revealed that the top echelon of the AFL was connected with the reactionary underground in other countries also. For example, the American magazine, Reader's Digest, had to admit this in its pages. What a howl the trade-union servants of the warmongers raised in connection with the uns49gessful attempt to eliminate the people's demo- cratic system and re-establish the power of feudal counts and capitalists in Hungary! A message to President Eisenhower, a telegram to Secretary of State Dulles an appeal to the UN. At this time Meany did not have a minutels Peace. He spoke on the radio, wrote articles, protested, de- manded. More frequently than at any time he used the words, "workers," "trade unions," "we," "us," trying with all his might to prove that it was not he and his clique, but the American workers who were grieved by :the defeat of the Fascist-Horthyite hordes in Hungary. The Executive Council of the AFL-CIO was called and a declaration, full of anti-Soviet slanders, was adopted. Introduce UN "police forces" into Hungary, do not recognize the Kadar Workers' and Peasants,' Govern- ment, and stop all cultural and scientific exchange with the Soviet Union; such were the demands of the American trade union top echelon. More than that, they also appealed for organization of an economic boy- cott,of the Soviet Union, i.e., an attempt to re-establish the "cordon santlzhewhich was used against the young republic of workers and peasants at the very beginning of Soviet power. The leaders of the International Confederation of "Free" Trade Unions also held this line. In order to complete the portrait of George Meany, we present one more fact. Recently in the United States a book was published by the so-called Un-American Activities Committee of the House of Representatives. This was a coll.ection of articles filled with anti-Soviet slander and war propaganda. Here shameless, monstrous lies alternate with crude falsifi- cations. The authors of the collection (a total of 120) include the most shameless American reactionaries and militarists. Here is the chief of the secret police, Edgar Hoover; the provocateur, Louis Budenz, who ap- peared as a false witness at trials of Communists; and a whole group of generals driven by the thirst for blood. -l80- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 And George Meany was willing to appear among them and to urge on, or at least keep up with the eager propagandists of aggression. Well, it is just among the proponents of war that he belongs. At the same time it is quite clear that there is a deep gulf between him and the vast mass of US workers. All his activity and all his speeches and articles glaringly contradict the interests of the ordinary peoples. And no matter how many times this arms-bearer of Wall-Street repeats the pronouns, "we" and "us", he will not succeed in convincing the world pub- lic that he expresses the opinion of the American people. The facts show that the ordinary people think and speak quite differently. Voices demanding changes in the present US foreign policy are being heard more and more frequently at union conventions and at workerst meet- ings and conferences. Many union figures, even such prominent ones as Walter Reuther, president of the United Automobile Workers, Potofsky, head of the garment workers, and others have criticized the present policy. Before us lies the newspaper, Labor News, published by the unions in Rochester (New York). "They calm us with fairy tales of how," the editorial states, "everything is well in the world and we can defend our- selves by creating more and more modern destructive military machines. But everything cannot be well in the world while we, the people of the West, do not exert all our efforts to learn to live in peace and coopera- tion with other peoples, including the Russians and the Chinese." Nor is it superfluous to recall the resolution adopted at the con- ference of Illinois unions. It calls for negotiations "at every pos- sible level, to eliminate the conflict between East and West." It is apparent from this that the American workers have certain aims and the reactionary union top echelon has quite other aims. The ordinary people in America want peace and broad cooperation with the USSR and the whole camp of democracy and socialism. But the union barons are cooperating with the monopolies and helping them in the prepa- ration of war and other armaments. This is the tragedy of the American labor movement. The workers have become sick to death of the accomplice of the war- mongers, George Meany. But the Wall Street bosses approvingly pat him on the shoulder. - 181 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 GREAT BRITIAN ulle English bourgeoisie has always stood and con- tinues to stand at the forefront of the enemies of the Liberation movement of mankind." -- I. V. Stalin Captains of British IndUstry P. Snegov In the center of London, not far from the luxurious royal palaces and massive government buildings, stands an ordinary house with nothing noteworthy about its appearance. Its picture does not appear on the colorful postcards with views of the English capital. They do not show it to the tourists who usually throng in front of Buckingham Palace, Westminster or the Prime Minister's residence on Downing Street. Never- theless, the house, and mainly its residents, deserve that more be known about them. It is especially important that the truth be known about them. The head office of the Federation of British Industries is located in this house. This organization does not attempt to be well-known and does not publicize its activity. It prefers to operate behind the scenes and to do its business quietly. Here honorable gentlemen who discuss and pass laws in Parliament meet. The government rules the country. But the real, commanding and omnipotent rulers of Great Britain and the British Empire are found in this modest house at No. 21 Tothill , Street. The members of the British Parliament, the ministers, generals, ambassadors, government officials and numerous government committees, commissions and offices only carry out the wish of the Grand Council of the Federation of British Industries. They give its wishes the form of legislative acts and governmental decrees, orders and instructions. They carry out the Federation's orders implicitly. And they do this especially eagerly because the majority belong to the same class as the members of the Grand Council. Its orders are published nowhere and are seldom spoken aloud, but those for whom they are intended always under- stand them. Most frequently these orders are simply anticipated. If some minister, member of Parliament or high government official does not understand, or even more, if he does not do what was expected of him, he simply would not be a minister, member of parliament or high government official; in Great Britain, as in any capitalist country, it is impos- sible to ignore the will of the ruling class with impunity. And the Federation of British Industries is its most powerful and authoritative organization, an association of industrial, commercial and financial oligarchs and monopolists. What is the Federation of British Industries? What is its role in the life of Great Britain? What influence does it have on the country's domestic and foreign policy? What is its interest in the armaments race? To attempt an answer to these questions, it is necessary to dwell briefly on the Federation's history and organization and on its past activity. -182- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 The Federation of British Industries was established in 1916. It was established to combat the growing worker movement, as a center from which to lead the attack on the vital rights of the working masses, to expand in the international arena, and to compete with the other imperi- alist plunderers. The great British capitalist companies, in creating the Federation, also intended that it should represent their common interests in other national associations, governmental departments and international organizations. The Federation's task, states the "royal charter," is the "encourage- ment, promotion, and protection of British industries of all kinds." This vague definition does not at all reveal the true purposes of the Federa- tion of British Industries. The monopolists themselves, in the Register of British Manufacturers published in 1955, write that the basic task of the Federation of British Industries is to formulate policy for the country's industry, and also to deal with all aspects of industrial activity in Great Britain. How- ever, the authors of this statement blurt out there and then that the Federation is a "strictly non-political" organization, apparently having in mind that it is above the ostentatious wrangles which occur between the leaders of the two main bourgeois parties, the Conservative Party and the Labour Party. The Register of British Manufacturers also gives a veiled indication of the methods by which the Federation operates. It states that "as national spokesman of industry the Federation deals directly with the government, the public and other organizations at home and overseas, or indirectly through its representation on numerous governmental and other bodies." The Federation's annual report for 1947 stated that it has repre- sentatives in 36 ministries and other British governmental establish- ments. In addition, it has confidential agents in more than 20 industrial, scientific, legal, commercial and educational organs which have consider- able influence in the ruling circles of Great Britain. The Federation's representatives sit officially in the following ministries: board of trade, colonies, education, fuel and power, health, labour, transport and civil aviation; and in the following councils: scientific research, economic planning, the National Production Council operating under the chairmanship of the chancellor of the exchequer, and others. The Federation of British Industries has 6,800 individual industrial companies and firms and 300 trade associations as members. Huge monopoly- companies, with up to 100,000 workers, and also firms employing under 100 workers belong to it. In addition, there are many thousands of firms which, as members of the trade associations, are indirectly under the Federation's influence. It goes without saying that the owners of the huge monopolies run the whole show in the Federation of British Industries. -183- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 The Federation's administrative organ is the so-called Grand Council. It is elected every three years and has 400 members, two-thirds of whom are nominated by the trade associations, and the remainder, by the indi- vidual firms and companies. The president of the Federation is chairman at sessions of the Grand Council; he is elected annually. But usually he holds office for two years in succession. The presidents are usually directors of the largest industrial companies and trade associations. The Grand Council has standing committees on economic policy, foreign trade, taxation, fuel and power, transportation, education, technical leg- islation, and other problems. There is also a Scottish Council and 10 regional councils, which consist of the representatives of the leading industries of the given region. The Grand Council can 'appoint an unlimited number of special committees. The headquarters staff numbers about 160, and is headed by a Director- Genpral. There is a General Secretary's department and four directorates: economic, technical, home services and information, and overseas. , The leading posts in the Federation are held by the representatives of "big business" and people closely connected with government circles. One of the presidents of the Federation was Sir Harry Pilkington? chair- man of the huge company, Pilkington Bros. Ltd., and director of many other companies, mainly producing glass. Since 1946 Sir Norman Kipping has been Director-General of the Federation; during World War II he headed one of the divisions of the Ministry of Production and in 1945 was Under-Secretary, Board of Trade. In addition to handling the duties of Director-General, Kipping is also a member of the British Productivity Council, the Dollar Exports Council, and a number of other governmental committees. William Edwards is Home Services and Information Director at the Federation's headquarters. He worked for a long time on the boards of railroad companies, and during World War II held responsible posts in the ministries of supply and production. After the war Edwards was in the Board of Trade, and also headed the British Information Service in the US. Douglas Walker, who formerly worked in the British Foreign Office has been General Secretary of the Federation since 1921. All the Federation's activity, controlled and managed by the large industrial, commercial and financial magnates, is directed toward protect- ing and securing the interests of the British monopolies. The Federation came out actively against the British workers during the railroad strikes in 1919, during the lockout of miners in 1921, and during the general strike which took place in Great Britain in 1926. An official report published by the Federation in May 1926 stated that "upon announcement of the general strike, the Federation of British Industries placed its organization at the service of the government." The government thanked the Federation for its assistance in suppressing the strike in a special message. - 184 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 The Federation of British Industries cooperates closely with other British associations and unions of capitalists. One of these associations is the British Employers' Confederation. It covers 62 British industries which employ over 70 percent of the workers. The Confederation's basic task is to oppose collectively the demands for improvement in the condi- tions of the workers. Another British association with which the Federation of British Industries maintains close contact is the National Union of Manufacturers. This union unites 5,500 firms and 72 trade associations. It unites and controls mainly small and average-size firms. The Federation of British Industries, the British Employers' Confed- eration, the National Union of Manufacturers, and also the Association of British Chambers of Commerce, the British Trades Union Congress and the administrations of the nationalized British industries comprise the so- called British Productivity Council which deals with the intensification of labor in British factories and plants. Because of its colossal eco- nomic power and great political influence, the Federation of British Industries holds a dominating position among these organizations. There are special subsidiary organizations to disseminate propaganda among the workers at the order of the Federation. These are the Economic League and a company called "Aims of Industry." Each year they spend about a quarter of a million pounds of sterling to convince the British workers to work harder and obtain less. The aims of the Economic League are: "to fight steadfastly against all detrimental movements.., to en- courage free ownership.., to fight against further nationalization." Thirty of the 40 persons comprising the League's Council are directors of 190 companies. Here are represented huge steel mills, machine manu- facturing monopolies, insurance companies, four of the "Big Five" British banks, etc. The Vice-President of the League is Lord McGowan, who was a member of the Anglo-German Fellowship in the 1930's and who was personally received by Hitler. Two other prominent members of the Council of the Economic League are Viscount Runciman and Sir HarryBrittdin, who also be- longed to the Anglo-German Fellowship. The company called "Aims of Industry," states that it strives to give "continuous and well-rounded" information to "industrial workers and the public on the share which free ownership has in the well-being of the nation." According to this organization's statistics, 500 newspapers and magazines utilized materials it had prepared during 1952. The members of this company's council are directors or hold other high posts in 393 industrial and financial companies. The president of the company is Lord Lyle, the British "sugar king" and former member of the Anglo-German Fellowship. -185- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Why do the British capitalists need to establish special "owners" propaganda organizations at a time when, even without this, the whole British propaganda machine, including the press, the radio, movies and the staffs of the bourgeois parties, is working for them? An answer to this question can be? found in a British pamphlet, The Danger Signal. " ...The organized efforts of industry," it states, "if they are well directed, will be more effective than the efforts of the political par- ties, since industry and non-political educational organizations which speak for industry have better access to the masses of workers and can treat them with less prejudice." The Federation of British Industries has always been on guard for the interests of the British capitalists. At the end of World War II the Federation sent a memorandum to the Board of Trade demanding that the Government relinquish even the quite moderate control over industry which it held during the war. The memorandum stated that the Government must outline only the basic plan for the national economic policy, giving the trade and industrial associations true control over this policy. After the war the Federation of British Industries repeatedly sub- mitted official demands to the government concerning the granting of new privileges to the manufacturers at the expense of the people. Thus, in January 1947, the Federation demanded a considerable reduction in direct taxes of the Exchequer, especially in taxes on profits, even if this hindered the balancing of the British budget. The government carried out this demand without objection. The government was careful to see that the measures they implement conformed with the interests of the organizations of big British capital. In March 1948 the Chancellor of the Exchequer sent the Federation of British Industries and some other big capital associations a letter submitting the government's future financial and economic policy for approval by the manufacturers. The Federation coldly replied to the Chancellor that his policy of "freezing prices, wages and profits," was only a partial and temporary solution to the problem of inflation in Great Britain and was "in principle quite unsatisfactory." The Federation outlined its own much stricter program. Three days had not gone by when the Chancellor of the Exchequer, in a servile letter addressed to the leaders of the Federa- tion of British Industries and other interested organizations, answered that their proposals were a good basis for further measures which "will be of great importance for the country if they are implemented in a spirit of cooperation." The demands of the Federation of British Industries always have a strongly pronounced class character. They are directed toward making the owners and bankers wealthier. Before submitting the regular budget to Parliament, the British government, either Conservative or Labour, - 186 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 usually receives and carefully studies a budget memorandum from the Federation of British Industries. After considering the Federation's detailed demands, the government submits the budget to Parliament. The type of demands which are made to the Government can be seen, for example, in a memorandum submitted by the Federation to the Chancellor of the Exchequer in March 1951. Here is what the big shots of British industry demanded: a 300 million pounds sterling reduction in government expenditures for local self-government, mainly for housing construction; "savings" of 300 million pounds sterling for social measures; abolition of taxes on company profits; reductions in direct taxes and increases in indirect taxes such as taxes on consumer goods, which fall mainly on the workers. In the middle of July 1956 the Federation of British Industries, the British Employers' Confederation, the National Union of Manufacturers, and the Association of British Chambers of Commerce set forth, in a joint declaration, the principles on which government's industrial and financial policy should be based. Two weeks later, Prime Minister Eden called a meeting attended by the Chancellor of the Exchequer, the Minister of Labor and National Service, and also representatives of the Federation of British Industries, the British Trades Union Congress, the British Employ- ers' Confederation and representatives of the nationalized industries. A Government announcement, published after the meeting, reflected the prin- ciples of the British capitalists exactly. A great number of such examples could be given. They all show that the Federation of British Industries, as an organization of exploiters, is only concerned with its egotistical, strictly class interests. The drive to obtain maximum profits, the consolidation of its ruling posi- tion within the country, and the strengthening of British monopolies abroad - these are the basic motives underlying all its activity. The Federation of British Industries has broad international con- nections. It is a member of the Council of European Industrial Federa- tions and is represented in the International Chamber of Commerce. The Federation has played a leading role in the formation and activities of the Anglo-American Council on Productivity, which had the basic purpose of applying American sweatshop production methods in Great Britain. The Federation has representatives and correspondents in more than 100 cities throughout the world, including all the large capitalist countries. The Federation has a special council concerned with promoting British ex- ports to the dollar area. This Council's work is actively supported by the government. High-level officials in government departments attend its meetings. -187- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 The activity of the Federation of British Industries in the interna- tional arena serves the expansionist aims of the British monopolists. In the interests of obtaining maximum profits, the individual companies be- longing to the Federation and the Federation as a whole undertake all sorts of schemes, unconcernedly waiving the national interests of their people. A clear example of this activity is the Federation's agreement of March 1939 with the German Reichsgruppe Industrie. Striving at all costs to bring Germany and the Soviet Union into conflict, the British ruling circles decided to support the Munich political agreement with an "economic Munich." With this purpose, negotiations were organized in Dusseldorf between the Federation of British Industries and the German Reichsgruppe Industrie, The British President of the Board of Trade, speaking in Parliament, announced that these negotiations were going on with "the full knowledge and approval of His Majesty's Government," and expressed hope for their success. * * * The Federation of British Industries implements its policy and influ- ences the various governmental, administrative and public organizations through its numerous representatives, henchmen and supporters in these organizations. Thirty-four ministers of the 1954 Conservative Government, before entering the government were directors of a total of 102 corporations, companies and banks. Although a minister must formally leave his posi- tion of director after taking a government position, actually his con- nections with the company do not stop. He keeps his shares in this company and, after retiring, can again resume his post of director. Let us examine the composition of the last two Conservative govern- ments. Their members had been directors of large industrial and financial monopolies. Former Prime Minister Eden was director of the Westminster Bank; a company mining copper and sulfur in Spain, the Rio Tinto Company; and a large insurance company, - Phoenix Assurance, which has shares in 17 other insurance companies. The present Prime Minister, Macmillan, was director of three companies, including the largest publishers in England, Macmillan and Company. Lord Privy Seal Butler is the former director of the largest company producing synthetic yarn and fabric, Courtaulds, which owns huge enterprises in Canada, the Union of South Africa, Spain and Australia as well as in Great Britain. Lord President of the Council Salisbury was director of the Westminster Bank and of an insurance com- pany. Minister Duncan Sandys was formerly director of three companies mining gold in West Africa. The Minister of Agriculture, Fisheries and Food, Heathcoat Amory, was formerly director of Lloyds Bank and the family firm, John Heathcoat and Co. This list could be continued. According to data in John Gollan's book, The British Political System, directors of 28 powerful trusts held 10 Government posts, in- cluding:--the Foreign Secretary, the Chancellor of the Exchequer, the -188? Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Minister of Materials, the Secretary of State for the Colonies, the Secretary of State for Air, Minister of State Board of Trade,and the Minister of Transport and Civil Aviation. Eighty-eight of the directors of these trusts are members of Parliament. "They control the whole gov- ernment apparatus," states Gollan. "Five of these directors are members of the Advisory Committee of the Exports Credit Guarantee Department; the chairmanship and three seats on the Board of the Capital Issues Com- mittee belong to the trusts; they have the chairmanship of the Public Works Loan Board, four seats in the Colonial Development Corporation, the chairmanship of the Wheat Commission, the chairmanship of the National Research Development Corporation; they have several members also on the Advisory Council of the Department of Scientific and Industrial Research. "They have two seats on the Board of the British Overseas Airways Corporation and the Vice-Presidency of the Air Transport Advisory. Council, the chairmanship and two governorships in the British Broadcasting Corpo- ration, and the Chairmanship of The Times. They hold seven positions in the Royal Household: Lord Chamberlain, Lord Steward, Master of the Horse, three Lords in Waiting, and one member of the Corps of Gentlemen at Arms. ? "The directors hold the following military titles: Army one Field Marshal, one General, one Brigadier General, one Lieutenant General, two Major-Generals, and six Colonels; Air---one Marshal of the Air Force, one Air Chief Marshal, and one Air Commodore; Navy---one Admiral of the Fleet." (J. Gollan, The British Political System, p 13) Many members of the Government and representatives of business cir- cles are closely interconnected by family relationships. Former Prime Minister Eden is married to one of Churchill's nieces. Minister of Defence Sandys and Conservative Member of Parliament Soames are related by blood to Churchill. And there are other examples. Former Secretary of State for Scotland Stuart married into the family of the Duke of Devonshire. Former Lord President of the Council Salisbury is also con- nected with this family. Former Minister of Defense Monckton was married to Salisbury's first cousin. Secretary of State for Commonwealth Rela- tions Lord Home has family connections with the Conservative members of Parliament, Viscount Lambton and Major Anstruther-Gray. This interweaving of connections includes the whole top level of the British ruling class. The government, Parliament, the Royal Palace and the Headquarters of the Federation of British Industries are con- nected by close class, business and blood ties. ?War and the armaments race bring the capitalists especially great profits. "The golden rain," wrote V. I. Lenin, "flows directly into the pockets of the bourgeois politicians, who make up a closely knit international gang, instigating the peoples to competition in armaments..." (V. I. Lenin, Works, Volume 19, p 83) -189? Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Here are the facts. During World War II the profits of the British companies grew by 81 percent. Total profits of 18,100 million pounds Sterling were made by the British capitalists between 1939 and 1945. In other words, during the seven years, the owners made more than 1,000 pounds sterling from the exploitation of each worker (there are 17 mil- lion workers in Great Britain). Between 1939 and 1945 the British Govern- ment spent 22,846 million pounds sterling for military purposes. Of this amount, more than 900 million pounds was spent to construct and equip war indAstry. The majority of the war plants, built with the people's money, were sold to the big monopolies after the war for almost nothing. After World War II the British ruling circles did not plan to reor- ganize the economy on a peace-time basis. They wished to maintain, with the assistance of the armaments race, the high profit rate which they had during the war. One of the influential city organs, the Economist magazine, wrote frankly in 1950: It would be a mistake to say that Great Britain now intends to return to a war economy, since she has actually never departed from the economy of the last war." Under the banner of preparation for "defense" from an imaginary "danger", allegedly from the Soviet Union, the militarization of the economy continues; in- dustry has received war orders and new types of arms have been created. The government has not spared government funds for these purposes, funds collected from the population as taxes. During the first four years after World War II, war expenditures by theExchequerwere 4 billion pounds sterling, more than five times as much as expenditures during the four years before the war. The Federation of British Industries is one of the main inspirers and organizers of the campaign to fan war hysteria and to force a con- version of the British economy to a wartime basis. The henchmen of the British monopolies in the governmental departments and in Parliament understand what is required of them. They zealously try to carry out the wishes of their masters. In August 1950 the Minister of Economic Affairs held a special meeting with representatives of the Federation of British Industries and the British Employers' Confederation and with the majority of the members of the General Council of the British Trades Union Congress; they discussed the problem of the effect of the govern- ment rearmament program on industry. After this meeting the militariza- tion of the British economy developed on a wide scale. In 1951 the British Government adopted a gigantic armaments program. Government military expenditures were first set at 3.6 billion pounds sterling for the following three years, but then were increased to 4.7 billion pounds sterling. A government review of the economic outlook for 1951 stated: "Implementation of the greatly expanded and accelerated armaments program has now become the primary aim of the government's economic policy." -190? Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 The magnates of British big capital and their cohorts in the govern- ment did not conceal the fact that they intended to carry out the military economic program at the expense of the workers. "We must cover the - greater part of the rearmament expenditures," frankly states the economic review, "by putting off for some time (1) an increase in the standard of living and even by reducing the present level." Great Britain is spending billions of pounds sterling on war prepara- tions. These huge funds, collected from the British people, are moving into the pockets of the armament factory owners as profits. In 19500 when war began in Korea, the profits of 877 companies publishing reports increased by 27 percent over the preceding year. Among them, the profits of 31 chemical companies increased by 52 percent, and those of 29 engine and aircraft companies increased by 55 percent. Income of rubber-process- ing companies increased by 250 percent. The gross profits of three of the largest concerns in the Federation of British Industries increased by unprecedented amounts between 1949 and 1953. Profits of the Unilever Trade and Industrial Syndicate increased by 79 percent; those of the Royal Dutch Shell Petroleum concern increased by 84 percent; and those of the gigantic chemical association, Imperial Chemical Industries, increased by 104 percent. The head of the large Hawker Siddeley Aircraft Company, which belongs to the Federation, admitted that profits increased, during one year alone by 38.4 percent. The largest British war industry monopoly, Vickers-Armstrong, Ltd., also a member of the Federation of British Industries, is earning huge profits. It manufactures and delivers warships, planes, tanks, submarines, instruments, ammunition, and other armaments and supplies. It has enter- prises in almost all the heavy industries: shipbuilding, machinery, fer- rous metallurgy, coal, petroleum, etc. This company has built war plants not only in Great Britain, but also in other countries such as Spain, Italy, Japan, and Turkey. Vickers-Armstrong Ltd. has branches, represen- tatives and agents in many countries. These monopolies do not scruple to use any means to obtain maximum profits. On the eve of World War I, the Vickers agent in Japan, who was trying to get an order for building a warship, admitted that he had bribed government officials. In 1933 the Vickers representative was ex- pelled from Turkey. He was charged with bribery and espionage. In the same year this firm's agents in the Soviet Union were convicted of sabo- tage and espionage. The representatives of the Vickers-Armstrong concern have their cohorts in the Government, and the Government sends representatives, 'especially Military personnel, to holdleading posts in the concern. Thus, the Vickers representatives, Anderson and Craven, were appointed as Minister - 191 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 of Defense and as Industrial Advisor to the Minister of Production. Lieutenant General Weeks, who was chief of the Imperial General Staff during the war, now represents the concern. Among the Vickers-Armstrong directors are a major-geterall a colonel and a lieutenant-colonel. Vicker's profits in 1953 reached 9.5 million pounds sterling. The monopolies which are growing rich in the armaments race fre- quently use government funds to expand their enterprises. The following announcement by the president of the West, Keen and Nettlefolds Company illustrates this: "We were able to cooperate with the government depart- ments in the campaign for rearmament. This applies not only to production capacities in the existing plants and to existing equipment, but in some cases also to considerable programs undertaken at the request of the government and mainly at its expenses", i.e., at the expense of the British taxpayer. The greediness of the capitalist beasts of prey in their unrestrained striving for high profits know no limit. The imperialists are ready to trade with the lives of their compatriots in the pursuit of profits. They do not even consider it always necessary to conceal this from the public. Thus, one of the Conservative members of Parliament, a certain Fletcher, director of a firm dealing in rubber, announced one time: "I must admit that I have commercial interests in many parts of the Far East, especially in Indo-China... It is possible that some capital investments on our part, visible capital investments in the form of troops and arms, such as America is making in Indo-China, could result in good dividends." It is not surprising therefore, that the monopolists and stock bro- kers do not wish the establishment of normal relations between governments or that they fear a lessening of international tension. When negotiations to stop military operations in Korea began, the organ of the London City financial bosses, Stock Exchange Gazette, wrote anxiously: "Peace presents no less serious problems than war... Defense production in the United States and Great Britain, which, to a considerable degree has been ad- justed to the national production efforts, cannot be stopped abruptly." In 1955 Great Britain spent almost 10 times as much for military purposes than she spent before World War II. Military appropriations comprised 33 percent of the 1955-1956 budget. This brought the arms manufacturers more profits, even higher than during the previous years. It was not for nothing that Strachey, of the Labour Party, during the debate in the House of Commons on 2 March 1955 on armament, declared that "The White Paper (i.e., official plans - P. S.) on defense and the planned appropriations, as formerly, is written by the owners of the war plants and by big capital." There is no reason not to believe Strachey's state- ment. Who would know better than Strachey that this was correct; he was Secretary of State for War in Attlee's Government. -192- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Recently work on the production of atomic and hydrogen armaments caused much trading in stocks in monopolist circles. This new branch of the war industry promises colossal profits for them. Since 1945 more than 100 million pounds sterling have already been spent on the production of atomic bombs. Now measures are being implemented to expand the produc- tion of mass annihilation weapons. According to the newspaper, Financial Times, 180 British firms were working in the atomic energy field in 1955 and some of them are already making deliveries. A special state corporation was established to produce atomic arms. This corporation is headed by the same representatives of big capital who belong to the Federation of British Industries. Plowden, who headed the Ministry of Aircraft Production during the war and was director of Commer- cial Union Assurance Company and British Aluminium Co. Ltd., was appointed President of this corporation. The corporation's board includes such big business men as Stedeford, the president of Tube Investments, Ltd. Gov- ernmental control over the corporation's activity was assigned to Lord Salisbury, former director of the Westminster Bank, i.e., again a repre- sentative of the Federation of British Industries, The British Government's decision to produce hydrogen bombs in Great Britain aroused general indignation and criticism among great num- bers of the English people. The Daily Worker printed a number of state- ments by prominent British public and scientific figures relating to this decision. Dr. Hewlett Johnson, the Archbishop of Canterbury, said: "Production of the hydrogen bomb in England cannot lead to peace. It is suicide." Nobel prize winner, Dr. SyngeD, transliterated from Russian] stated the opinion that "the announcement in the White Paper in no way promotes peace. Without a doubt the time has come for all countries to outlaw the hydrogen bomb." Another Nobel prize winner, former General Director of the UN Food and Agriculture Organization, Lord Boyd Orr, shares this opinion: "All countries must find ways not only to outlaw the bomb, but also to outlaw war, in order to ensure security." The armaments race is a heavy burden for the British workers. In 1954 per capita taxes increased by more than 12 percent over 1950. Prices of food, clothing and fuel are rising steadily and the costs of public services and all types of transportation are growing. During 10 postwar years the food price index grew 50-150 percent. According to official data, the cost of living in Great Britain in January l95 was almost 50 percent greater than in 1947. The British people are conducting a stubborn fight against the at- tack by the capitalists on their vital rights and against preparations for a,new war. The number of strikes in Great Britain increased from 2,424 in 1955 to 2,643 in 1956. This year was marked by the strike of locomotive engineers and stokers, which, according to the British press, was the most serious strike since the 1926 general strike. Under great -193- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 pressure from the organized laboring class, the Federation of British Industries and the British Employers' Confederation have been compelled, in a number of cases, to make concessions to the strikers and to agree to the workers' most urgent demands. This shows the workers that despite all the power of the monopolies and the strength of the government ma- chine of the capitalists, despite the fact that they have a vast amount of capital and have the army and police at their disposal, despite all this, the British laboring class is many times stronger than the capital- ists when it acts in a fraternal, cohesive and organized fashion. The manufacturers, bankers, merchants, stock brokers and retired generals, all those who sit on the Grand Council of the Federation of British Industries, cannot help but feel that capitalism's position is weakening with every day. Militarization of the economy and its one- sided military development cannot save the capitalist economy from crises; it only leads to the development of even deeper contradictions. ...Luring recent years, despite the opposition of the aggressive forces, the peoples have succeeded in having international tension some- what lessened. Increasingly favorable prospects have been created for the consolidation of universal peace. However, in capitalist countries furious activity has developed in the aggressive circles which fear a reduction of tension in relations among states and are interested in continuing the armaments race and in becoming wealthier through war orders. They are stubbornly opposing the people's demands to reduce armaments and the armed forces and to outlaw atomic and hydrogen weapons. They do not even hesitate, as events in the Near East showed, to unleash wars. The activity of the Federation of British Industries clearly shows this role of the oligarchy of British financial capital, which is harm- ful to peace and to the interests of the workers. Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 The Intelligence Service Man A. Leonidov The following appears in the British biographical manual: General Lord Ismay, Baron, born in 18870 was Secretary General of the North Atlantic Treaty Organization and Vice-Chairman of the North Atlantic Council, former Secretary of State for Commonwealth Relations, former Chief of Staff to British Viceroy in India, chief of Churchill's personal staff during World War II, former Secretary of the Committee of Imperial Defense. The ordinary Londoner can hardly say more than two or three words about this Lord; little is written about him. What kind of person is this 70-year old General, whose name became known to the general public only comparatively recently although he plays a not =important role in Great Britain's international affairs and in the military preparations of the Western powers? ? This question can be answered by four words: the Intelligence Serviceman. Ismay is one of the chief leaders of this secret military and politi- cal organization which, as an important weapon of British big capital, stands invisibly behind every British Government - Conservative, Labour or Liberal. Ismay came from the womb of ancient British imperialism, which formerly imposed its will on the capitalist world. This is his strength and his weakness. Lord Ismay is known as a quiet, equable, almost imperturbable man. He seldom raises his voice. But when, with a somewhat ironic expression, he does this, his British colleagues, as a rule, become silent. He does not need to shout or argue. He speaks a few words and they obey him. Ismay is not a talented orator; he does not need to be. He never speaks at party meetings. For him, all three bourgeois British parties are political agents of the ruling class; each has its time and place. He dines with a Conservative noble, smiles at a Liberal Minister, and affably, although somewhat arrogantly, greets the gentlemen from the Right Labour bench. All these people are his friends allies, and sometimes his direct assistants. "If you know General Ismay," wrote a correspondent of the Reuters Agency in February 1945, "then you cannot be surprised by the fact that he is a prominent figure even among the prominent statesmen of the world. He is actually a considerable personality... Considering General Ismay's prominent situation, it should be noted that he has made an art of the - 195 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 ability to make himself inconspicuous. In the very best society he stands out because of his splendid build, the carriage of a good sportsman and a typical professional British soldier... At the same time the General avoids attracting attention and does not like publicity." Ismay has never voted in Parliament; this would be a sheer waste of time. For him Parliament is a place for chattering, where the orators - Conservatives, Liberals, Labourites, gentlemen in suits or dinner jackets - make speeches for the people from previously harmonized notes. The people, for Ismay, are only raw material, a gray mass of people obligated, in his opinion, to do one of two things: to work or to fight; to gain profits for the gentlemen or to die in their interests. The mil- lions of British people - men and women loving life, peace, culture, their children, and their future - according to Ismay are either a certain amount of war material, living machines for operating dead machines - rifles, cannons, planes and battleships of the British Empire, or they are a mass of production material, muscular power for the machine tools which are owned by the joint-stock companies of the British Empire. Everything is quite simple. In the third place, for Ismay the people are an explosive political material dangerous to the British Empire, millions of friends of peace and progress who must be held in check by steel gloves. Here, of course, special watchfulness is required, and if neces- sary, ruthlessness. This is the whole philosophy of British domestic policy from the point of view of General Lord Ismay. And its foreign policy, according to his conception, consists of one principal point, for which his organi- zation exists: come what may and at any price, stop the decline of British imperialism, revive it and make it once again the master of the world as it was when the future General and Baron Ismay was born. II The father of the ?General-Baron, Sir Stanley Ismay, was General Inspector of Police and Prisons in one of the Indian provinces. He wrote a book, Rules for Supervising and Managiqg Prisons in the Central Province, a "profound" work which hundreds of English administrators and rulers in India studied. He was one of those masters of British police business of whom the troubadour of British imperialism, Kipling, sang in the novel, "Kim," Here are to be found the roots of his son's career. Later Sir Stanley Ismay rose to the rank of Governor of one of the Indian provinces and member of the Legislative Council under the English Viceroy. At that time India was not only the heart of the British Empire, but also the higher school for British politicians, officials and military personnel. Here they learned to command, to rob, to intrigue and to exe- cute people; they studied at the very "highest", "academic" level. It would not be an exaggeration to say that British industrial and financial - 196 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 capitalism was built on the bones of the Indian peasants. But it is also true that the reactionary British militarists of the 20th century grew, above all, out of the old Anglo-Indian Army and that the most experienced personnel of the Intelligence Service "perfected themselves" in India. Over the course of two centuries, British capital pumped great funds, billion after billion, out of this huge country, almost equal in area and population to the European mainland. Select cadres of privileged British officers and officials were formed, educated and tempered here. In prac- tice it meant more to be the governor of a large Indian province than to be a British Minister; it meant more to be a colonel in the Anglo-Indian Army than to be a general in a provincial English city. According to a plan formulated at the end of the last century by the City and the Foreign Office, called the "Curzon plan" in enlightened cir- cles, India was to become the center of an even greater British Empire in Asia. It was intended to join to this Empire Persia and Afghanistan in the West; Tibet, Sinkiang and Turkestan in the North; and the whole of Southern China, at least to the Yangtse River, in the East. It was also intended to attach the British domains in Burma, Malaya and Arabia to it. Such a British super-empire, planned in London, comprising the whole fertile south of Asia, bounded by British Africa from the Cape to Cairo on the one hand, and by Australia on the other hand, gripping the whole area from the Atlantic to the Pacific Ocean in a steel semicircle, was intended by its authors to make the world domination of British capitalism permanent rapidly reducing all the remaining great powers to the situation of second-rate and dependent states. British diplomacy worked for decades to realize this plan. Its chief weapon, in addition to the British fleet which ruled the world sea routes, was the tactic of constantly setting one power against another, in order to keep the keys of international politics in British hands. It was intended to use the Anglo-Indian Army and Intelligence Service not only to keep the 400 million Indian people obedient, but also to sub- jugate the neighboring Asiastic countries. Ismay devoted the first half of his life completely to the "Curzon Plan." Then, it is true, he was only one of many; he was attending school. In 1908 this son of the great Anglo-Indian policeman and prison keeper became an officer in a cavalry regiment quartered in the North- West Frontier region of India. This was an extremely vital section of the British position - from here they annually attacked the neighboring Moslem tribes, burning village after village and hanging thousands of people. Ismay watched, learned and gained It Even in those years, in his early youth, he absorbed the feeling which was "quite obligatory" for each guardian of British imperialism in the East, the feeling of scorn -197- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 for the "colored man," the slave of the British sahib (white lord). Later, when the socialist revolution burst out in Russia, this feeling of Ismay's merged with a hatred for socialist Russia, which became a beacon for all the Asian workers who did not wish to serve the sahibs any longer. The pure-blooded Sahib, Ismay, remembered this fact for his whole life. Thus his political personality was finally set. He was not a dashing cavalry warrior. Ismay early showed that he was a worthy son of his father and that his chief strength was the art of secret political intrigue. This was appreciated by his superiors. They did not permit him to participate in World War I in Europe and sent him for further training to the British African Colony of Somaliland where, for six years, he hunted down and persecuted the impoverished blacks who rebelled against their British masters. His African experience supple- mented his practice in Asia. In 1923 Ismay was already Assistant Quarter- master General of the Anglo-Indian Army. Three years later, at the age of 39, already with the rank of Major, he was called to London. His training was complete. The Center of the Intelligence Service needed Ismay for "big" things. III In 1904 the whole secret system of administering British policy was reorganized. At the initiative of Prime Minister Balfour and the big financier, Lord Asher, the Committee of Imperial Defense was established; to a considerable degree it actually replaced the government but was free of any responsibility to Parliament. Officially, this Committee, with the rights of a consultative body to the government, was entrusted with the long-term planning of British foreign and military policy. In reality, decisions were made by its advisors and planners: their decrees were binding on the whole govern- ment apparatus, although the public and even the House of Commons was not informed of them. Who belonged to the Committee? The Prime Minister, some other ministers, the chiefs of staff of the Army and Navy (later also of Air), the chief official of the treasury, heading the civil ad- ministration. The permanent secretary of the Committee and also the heads of all divisions were almost all unknown Intelligence Service personnel. British governments came and went. Conservatives replaced Liberals and Liberals, Conservatives; later the Liberals were replaced by Labour- ites. But the permanent officials of the Committee of Imperial Defense remained. Each new government presented its special, new program. And each "new" program was carried out by the same people. For 27 years, from 1912 to 1938, the Secretary of the Committee of Imperial Defense was Colonel Maurice Hankey. His name almost never ap- peared in the newspapers. The ordinary Englishman simply did not know about him. Hankey did not even obtain the rank of general. He came into the Committee of Imperial Defense directly from the Naval Intelligence -198- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Department. Hanky was not only Secretary of the Committee; he combined this position with the position of Secretary of the Council of Ministers and with the rank of clerk of the King's Privy Council. He attended almost all international and imperial conferences as the Secretary of the British delegation. Balfour, Campbell-Bannerman, Asquith, Lloyd George, Baldwin, MacDonald, and Chamberlain sat in the House of Commons as British Prime Ministers, gave noisy speeches, denounced each other, won elections, suffered defeats and retired. Little Colonel Hankey quietly sat in his place in the restricted Committee and acted without fearing the House of Commons, the House of Lords or the voters. That was the heart of the matter. The establishment of the Committee of Imperial Defense was one of the "small" changes in the British "democratic" structure brought about by capital, fearing the growth of the mass worker movement. No matter who headed the British "democracy" externally, all those people from the City and the Intelligence Service always ruled it from within. In 1926 Colonel Hanky called in a new assistant from India, Major Ismay. The future Lord worked on the Committee of Imperial Defense for 15 years, under the Conservatives, Baldwin, Chamberlain and Churchill, and the Labourites, MacDonald and Attlee. During the entire period from 1926 to 1946 he was assigned elsewhere only twice. In 1931 he was ap- pointed Military Secretary to the Viceroy of India, Lord Wellington, to help him quell the rising national liberation movement in India, Ismay was already a specialist in this matter. The sahibs started making mass arrests and raids. They established an unbearable regime in India. Al- most all the leaders of the national movement, headed by Mahatma Gandhi, were thrown into prison. The police shot people at demonstrations, set Moslem against Hindu and Hindu against Moslem. Thinking that he had com- pleted his task and had the Indian people intimidated for the next few decades, Ismay returned to London and immediately, already a Colonels received new, even more important instructions. In 1933, during the time that Hitler was coming to power in Germany, Ismay was appointed Chief of the Eastern Department of the British Intelligence Service. This was the most important division of the Intelligence Service. Its sphere of action included not only India, the Far East, and the Near East, but also the Soviet Union, Poland and the Baltic area. The main task of the chief of this division was the secret encirclement of the Soviet Union and subversive work on its very territory. Ismay earned the nickname of "Pug" for this work. He had a whole army of agents operating under widely differing masks from diplomats, journalists and "business men" to "engineers" and Catholic priests. "Pugs" secret agents operated in the capitals of all the states bordering the USSR, and were either included directly on the embassy staffs or appeared as representa- tives of business firms, charitable organizations or press bureaus. -199- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 The Colonel of the British Colonial Army in India transferred his methods to Europe, utilizing local conditions. In India he worked with horse herders, dancers and police disguised as fakirs; here he bribed false "labor leaders" and members of parliament. It was all one and the same to him; Ismay is not a romanticist. It was under him and his closest successors that the Eastern Division of the Intelligence Service worked out the full ramifications of that international system of secret sabotage against the socialist camp which exists to this very day. In 1936 Ismay returned to the Committee of Imperial Defense com- pletely "matured." Now he was no longer assistant, but deputy to Hankey. On the eve of the war, in 1939, the little known Colonel Hankey was made a Lord and then suddenly appointed a member of Chamberlain's war cabinet. The British public was surprised; the initiates smirked. Ismay, a Major General by then, replaced his chief in the Committee of Imperial Defense, IV Even before the war Ismay implemented the policy which he had once learned in India in this Committee; he knew nothing else and did not wish to know anything else. The main aim of this policy was to strengthen and enlarge the empire of British sahibs. Its main enemy was the Soviet workers and peasants, 200 million people between the Baltic Sea and the Pacific Ocean, who had overthrown their masters and embraced socialism as the basis of their life and who were setting an example for the whole world. Enemy No. 2 was the colored man, breaking the fetters placed on him by white capital, more than a billion people recognizing no empire and demanding freedom and independence. Working behind the scenes in Chamberlain's government, Ismay con- centrated all his efforts on creating an international anti-Soviet bloc. Along with Hankey he was one of the authors of the Chamberlain plan, to entourage Hitler and set him against the Soviet Union. This plan in- tended to buy the German Fascists, to help them arm, to throw them against Moscow, to force the Soviet and German people to make blood run in a gigantic battle, and then to seize their riches. It seemed to Imlay that Chamberlain's card could not be covered. He already antici- pated the day when British troops, as "restorers of order" would again invade the Caucasus and Soviet Central Asia and remain there permanently. Preparing these wild plans, Ismay and his friends failed to notice only one thing. By entering into an agreement with Hitler against the Soviet Union they pushed Great Britain to the edge of destruction. This became clear to the British people, but did not stop Ismay and his friends. After the rout of the British Army at Dunkirk, Ismay became Chief of Staff to British Ministry of Defence, while remaining essentially the head of the Committee of Imperial Defense, which was changed into the government's war office. - 200 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 According to his own statement, his tasks during the war were strategy and planning, the organization of military and civil defense, censorship, military legislation and the organization of supply. Prime Minister Churchill described Ismay's functions at that time somewhat more fully. "General Ismay," he stated, "represents me on the Commission of Chiefs of General Staffs and is responsible for informing the military command and myself on all questions requiring a decision at the top." Many questions required a "decision at the top," including basic problems of British foreign policy, The General always accompanied the Prime Minister, in London, in Washington, in Quebec, in Casablanca, and in Cairo. The Prime Minister gave a command, Ismay formulated the orders. They called him "Winston's Grey Cardinal." It cannot be doubted that the intelligence serviceman had his hand in the attempts by the British reactionaries during the last years of the war to make a secret agreement with the German Fascists to open the Western Front to Anglo-American troops and to keep the Soviet Army from entering Germany. Ismay forgot nothing. This dry, silent man never deviated from his basic intention. Although every Englishman, even including Ismay himself, saw clearly that the Soviet Union was helping Great Britain avoid defeat, Ismay even then thought only of how to deceive and encircle the Soviet Union. His? class nature continued to push him along a path which was harmful to the national interests of his country. The war ended. The Conservative Government was overthrown. Twelve million Britishers voted against the Conservatives. The right-wing Labourite, Alexander, became Minister of Defence. This changed nothing for Ismay; he remained as Chief of Staff under Alexander. Only after two years, having received an urgent assignment, did he abandon this post; the Intelligence Service again sent him where he began his career. The storm was mounting in India. The Indian workers and peasants were break- ing their chains and now the British policemen and prison keepers could do nothing; it was impossible to seize all the Indians. But it was pos- sible to try and deceive than, Imlay was appointed Chief of Staff to the last British Viceroy in India, Lord Mountbatten. He did his business. Along with Mountbatten, Ismay conducted a reform in India along the lines of the old rule: divide and conquer. The country was divided into two parts. The inten- tion was to push one aWay from the other. Ismay thought that he had won this time as he had won during his mission to India in 1931-1933. It was even intended that he become Viceroy in India after Mountbatten. But he lost. Despite the "skillful" division of India, the British colonial system in Asia after World War II was broken forever. The powerful growth of the national liberation - 201 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 movement among the peoples of Asia negated all the plans of the old intel- ligence worker. Now nothing could force the ordinary Indian worker or peasant to be afraid of the likes of Ismay, still mentally living in the age of Kipling. India, as other countries on this continent, went its own way. A new system of independent Asiatic peoples developed where the colonizers formerly ruled. The political agents of the Intelligence Service, both with and without masks, still tried to postpone the outcome. But their card was covered. Ismay did not become the Viceroy of India, and returned to London. The Labour Government made him a Lord in 1947. He was then 60 years old. The Intelligence Service offered him a temporary rest. Ismay accepted the offer - it was necessary to collect his forces. He has been in re- tirement for four years, supported by those whom the Intelligence Service actually serves, the British monopolies. V Immediately after World War II it was possible to observe a remark- able event in Great Britain; almost all the well-known generals and field marshalls who had retired, one after the other became bankers, manufactur- ers, and big merchants. The day after taking off their uniforms, they sat on the boards of some joint stock company, controlling hundreds of mil- lions of pounds sterling. The Chief of the Imperial General Staff and Commander-in-Chief of British Land Forces, Field-Marshal Lord Alanbrooke became Director of the Anglo-Iranian Oil Co. and of the largest bank in the country, the Midland Bank, The Commander-in-Chief of the Mediterranean Fleet, Admiral Cunningham, was elected Chairman of the Board of the Iraq Oil Co.; the Commander-inChief of Air Forces, Air Marshal Lord Portal, became Director of Barclay's Bank and of the British branch of the Ford Company, The Commander-in-Chief of the Indian Army, Field-Marshal Auchinleck was ap- pointed Director of the Anglo-Indian Grindlay's Bank; the Assistant Chief of the Imperial General Staff, General Weeks, obtained the post of Chair- man of the Board of Vickers, that war industry monopoly; Chief Air Marshal Salmond became Director of the Shell Oil Trust. Ismay's predecessor as Secretary of the Committee of Imperial Defense, the aging Lord Hankey, obtained the posts of Director of the Suez Canal Company, the Nile Insurance Company in Cairo, and the Jorehaut Tea Company in India. This list could fill more than one page. The highest military caste of the British Empire has quite openly merged with the highest plutocratic aristocracy, on which it depended fully while still in active service. Now, having retired, the members of this cast have not been shy about taking off their masks. The organizers of war have shown themselves to be the companions of the merchants in oil, automobiles, currency, arti- ficial silk, tea, whatever is convenient. -202- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Ismay did not go into retirement; he has been biding his time. But the big British monopolists, the true masters of the country, have not forgotten one of the most experienced leaders of the Intelligence Service. Ismay was offered the post of Director of Lloyd's Bank, an enterprise with working capital of at least 1.25 billion pounds sterling. The threads of this financial group entwine through all the corners of British capitalist society. It is primarily the bank of heavy industry and the monetary bulwark of British reaction. In recent years its direc- tors have included such big shots as Sir Peter Bennett, head of the largest war electrical concern, Joseph Lucas, Ltd., member of the board of the Imperial Chemical Trust, and in 1951, Deputy Minister of Labour and National Service; Colonel Neilson, Director of Vickers; Lord Brand and his son, Thomas Brand, partners in the well-known London banking house, Lazard Brothers, affiliated with the Astor dynasty and with the Times, and which financed Chamberlain's "Cliveden Clique"; Lord Luke, owner of the Bovril Bouillon Trust and the Truth magazine; Lord Ramsden, Director of a number of metallurgy enterprises and also the former Chair- man of the Conservative Party; Sir Evan Williams, Life President of the Mining Association of Great Britain; and others. Also, the old Liberal leaders, Lord Teviot and Egbert Cadbury (who is also the head of a cocoa and chocolate trust and co-owner of the News Chronicle); former member of the Labour Government's State Planning Administration, aircraft monopolist, Verdon Smith; former Chief of "Combined Operations" of the British Army, General Laycock; and finally, at least three former Anglo- Indian governors and ministers - Lord Scarbrough, Burrows, and Reisman, have also sat on the board of Lloyd's Bank, Lloyd's Bank is, so to speak, a stronghold, a holy of holies of British monopolistic capital; to be its director means being one of the real owners of the country. Ismay became a director of this bank. The veteran of the Intelli- gence Service received his reward. Now he himself has become one of the partners in the "British Empire" concern. The British monopolies do not forget those who serve them faithfully. VI But Ismay's service was not yet finished. On 26 October 1951, the leader of the British Conservatives, having beaten the Labour Party in the elections, was called to the Royal Palace and received instructions to form a new government. One of the first he called was General Lord Ismay. After a few days Great Britain read the list of the 17 new cabinet members. Ismay was appointed Secretary of State for Commonwealth Relations, in other words, minister of dominions. -203- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 How could Great Britain's international position be consolidated? This was the problem facing thc new government. The Labour cabinet, which ruled Great Britain for six years, had continued the old, prewar Conserva- tive policy - a policy aimed against the Soviet Union, against the colo- nial and dependent peoples, and now also against the people's democracies. Formerly this policy had been based mainly on the agreement with Hitler. It led Great Britain to the brink of destruction. All who wished to de- ceive the Soviet Union were deceived themselves by German Fascism. Now the same policy, directed against the USSR, has been based on an agree- ment with American imperialism and the German desire for revenge. American trusts had already become masters in various parts of Britannitk, taking its natural riches. American capital had clearly been striving to squeeze the British economy within its grip. American diplomacy had rudely thrust its will upon the British Empire, once the proudest and most arrogant in Europe. A gloomy future was facing Great Britain -- that of becoming one of the chief American atomic bases against the USSR. Where to go from here? The Ismays had an answer ready --the way they had been going -- with the Atlantic Union headed by Washington. law remained Ismay. And now, almost 50 years after the beginning of his political activity, the man from the Intelligence Service saw before him only one purpose, one task: to exterminate the Soviet Socialist State in whatever way possible, to strangle the national liberation movement in Asia and Africa. The son of the prison keeper had not betrayed his ideal. The American pretender to world domination stood at the British gates with an even bigger crow-bar in his hands than his German predecessor had. But Ismay still gave the same advice: ? bargain with the US for a while, work Great Britain up into the role of chief apprentice, and, with their help, we will seize and imprison half of mankind. Consumed with class hatred, Ismay was again working against the national interests of Great Britain. In order to conclude this transaction, in 1952 he transferred his headquarters into the very center of the Anglo-American bloc. Ismay ? was appointed General Secretary of the North Atlantic Treaty Organiza- tion and Vice-President of this Organization's Council. Upon taking on this job, he said on 22 July 1952: "Now I must consider myself as not haying a country, and in the future I am not an Englishman." The man from the Intelligence Service supposed that as head of the Worth Atlantic Treaty Organization he would serve the interests of the British Empire as in the past. He took his new post with the conviction Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 that he would at least secure for Great Britain the position of chief contractor for the United States in Western Europe, and then go even fur- ther: make Great Britain the true head of the North Atlantic Treaty Organization on the continent of Europe. It was for this reason that "Pug" repudiated his country; he thought that it would be craftier. Ismay aspired to be field marshal of a new campaign against the socialist world. In February 1951 he stated that a state of war exists between the "free world" and Communism. Even now Ismay behaves like the commander of a real army. He travels about Western Europe from capital to capital demanding a quicker coordination of the armed forces of the "Atlantic coalition." In November 1952 Ismay proposed that a connection be established ' between the Atlantic Treaty Organization and a new military bloc planned by the American imperialists for the Pacific area. He wished to squeeze both Europe and Asia in the pincers. In May 1953 he flew to Ankara to speed the conclusion of a military pact between Turkey and Greece and thus draw the Near East into "his" net. In November 1953 he was observ- ing military maneuvers of British, Canadian, Dutch and Danish troops near Bremen, where a German babe is being prepared. Then he gave an anti-Soviet speech in Brussels, demanding immediate ratification of the "European Defense Community" Agreement and inclusion of West German armed forces in the "European army." Ismay already saw the trenches of World War III, and himself on the staff of the supreme command. But it was not for this that they created NATO in Washington, i.e., that an Englishman rule this organization. The Americans, with incon- spicuous pressure, have succeeded in retiring Ismay and filling the post of NATO General Secretary with a man devoted to them body and soul, Speak. Now even this position is in the past for Ismay. The years pass by and the world is changing. Only Ismay and his friends from the Intelligence Service do not change. Ismay incarnates the whole policy, the whole psychology of British imperialism. Ismay's face is the face of Palmerston, Disraeli, Curzon, Chamberlain and other arms-bearers of British capitalism. It has nothing in common with the British people. The Great Britain of the workers, farmers, and working intelligentsia is against him and such as he. -205 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Agent of the International of Death A. Leonidov A merchant of death is not only a person who sells rifles, machine guns, tanks, submarines and atomic bombs. In the West this job has many aspects. It includes many people who have no direct connection with war industry. Each of them wears some kind of mask. Sometimes the merchant of death is a well-known professor. He lectures on physics and also is a consultant to a joint-stock company interested in producing the atomic bomb. Frequently he is a well-known journalist writing articles, paid for by the publicity division of the Dupont trust or the Vickers firm, for a large newspaper published in some capital. Sometimes the merchant of death is a bishop. In the daytime, in the pulpit, he gives touching sermons on love and peace, but in the evening he clips coupons from the shares of a gun factory. And sometimes he is a government official of a Western power, showered with honors and orders. With inspiration and brillancy he speaks at international conferences on disarmament, but in his office he regularly signs contracts for massive deliveries of arma- ments from a firm in which he or his family is an invisible partner. All these people enjoy irreproachable reputations in bourgeois society. And they all live mainly on the interest from past, present, and future wars. This is the secret meaning of their existence. Oliver Lyttelton is a very versatile man. He was British Secretary of State for Colonies, the main organizer of hunts after African Negroes. At his instructions they were executed wholesale at the rate of 100 per- sons a week. He considers himself and those like him the mainstay of British order and tranquility. Everything new is very offensive to Lytteton and makes him fearful and bitter. Before his entry into the Government and after his retirement Lyttelton was head of the British trust, Associated Electrical Industry, closely affiliated with the Vickers concern. It is precisely here that his chief, fundamental quality, from which everything else flows, is hidden. Here, in the offices of this trust which participates in the production of atomic energy in Great Britain, that Oliver Lytteltonts real life takes place. He is a merchant of death on the very largest international scale and belongs in the secret circle of atomic monopo- lists; he is one of those of whom there are only a handful in the whole capitalist world. The success of his business depends mainly on how many people will be killed by the weapons and equipment delivered by his firm and its allies. The more deaths, the greater the dividends. This is why they regard him with such respect in the capitalist circles of the West. -2o6- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Lyttelton's career was set even before his birth. His father was also one of the leaders of the rightist camp and was also Secretary of State for Colonies. Hereditary suCcession is very highly valued in British ruling circles. The old Lyttelton, nephew of the well-known Liberal leader, Gladstone, whom he deserted for the Conservatives, was famous as a cricket virtuoso. In addition, he was diitinguished by the fact that, as minister at the beginning of the century, he imported thousands of unfortunate, starving coolies from China to South Africa to reduce labor costs for British gold mine owners. At that time the Negroes were still cooped up in the depths of the country in their vil- lages. While the elder Lyttelton played cricket and lelped rule the British pire, the younger Lyttelton, moving among the golden youth, studied at aristocratic Eton and Cambridge University. In 1920 the young Lyttelton settled down to "real" business. He began by trading and speculating in non-ferrous metals -- copper, zinc, nickel, lead, tin and other metals used mainly in the electrical indus- try and in war production. The most interesting thing about Lyttelton's affairs was discovered only after several years: he turned out to have German partners. The trade syndicate of British mine owners, British Metal corporation, of which Lyttelton was chief manager, soon merged with Metallgesellschaft, the concern belonging to the Merton Biothers in Frankfurt-am-Main, thus monopolizing a considerable part of the international trade in non-ferrous metals. Sitting in London on the board of the new United Metal Corporation along with one of the Mertons, Lyttelton became at the same time 'director of the Frankfurt trust. This meant a great deal. The affiliation with Metallgesellschaft immediately brought Lyttelton into the arena of international monopolies. It predetermined his foreign policy line. At the very beginning of his ?life he found powerful friends on the other side of the Rhine. Things turned out in such a way that the chief shareholder in the Frankfurt metals trust after World War II was Germany's largest and all-powerful monopoly, the chemical trust, I. G. Farben. Along with the Ruhr steel kings Thyssen and Krupp, the chemical kings, Bosch and Schmitz were the true masters of the bourgeois German state and the chief promoters of German imperialism. All the German cabinet ministers since-the 1920's, the German Army, the German intelligence service and the German bourgeois parties acted at their orders. The I. G. Farben trust at first affiliated itself with the German Liberals and immediately after their defeat began to finance Hitler. When the frenetic leader of the German Fascists came to power in 1933 Bosch and Schmitz stood behind him. This fact was also reflected behind the scenes in the making of British policy. -207- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 For 10 years, from 1929 to 1939, Lyttelton was the partner of Bosch and Schmitz,in selling non-ferrous metals to electrical companies and war industry enterprises all over the world. He acquired a great deal of money in this way, multiplying the fortune left him by his father. But he was not only in commerce. Ekterna11y he was an irreproachable English aristocrat, a society gentleman and a respectable City business man. Actually he was the emissary of the greatest Anglo-German monopolistic association, one of the secret,representatives of I. G. Farben in London. From behind the scenes, along with other business men from this association, he tire- lessly demanded "complete synchronization" (concurrence) of British and German foreign policies. There was talk of concluding an Anglo-German union for the most, rapid possible organization of Hitler's campaign to the East, to Moscow! At the_time.ofJAnnich, Lyttelton was 46 years old. He was not yet even an ordinary member of the House of Commons. But among the heads of the Right-wing camp he was already considered a prominent figure behind cwhom the Anglo-German clique was hiding. When Hitler began World War II, turning not against Moscow butagainst Paris and London, Lyttelton was no less ast9,4Ade.d 'WAi Chamberlain; his Frankfurt partners had let him down. They wanted everything that he had promised them in the East.., and the HritiSb Empire also! ir , Full of patriotic indignation, Lyttelton asked for government taervice. His request was immediately granted. He received the posi- tion of Chief State Controller of Non-Ferrous Metals. Now he could httIMIX fi,4 the prices at which the government bought metals from his _Am A year later Lyttelton was elected to the House of Commons and Alludiately was appointed President of the Board of Trade. Now he dictated prices and signed contracts for the delivery, not only of non- ferrous metals, but also of all types of strategic raw materials. The beginning of a great political career was established. In 1942 Lyttelton was appointed Minister of State, Middle East, and sent to Cairo.. Thenon-ferrous metals king became the real dictator of Egypt. He organized pogroms in Palestine, set one Arab government legainst the other, and spread a political intelligence network through- ont thq lpikan area, giving it one order: do not act against Hitlerites, but against the national liberation movement. After 4 year Lyttelton was again called to London and was appointed Illinister of Production. His chief business in this position was the creation of the Anglo-American Combined Production and Resources Board, to which all the industry of both countries was subordinated. Acting through this Board, the American billionaire "partners" began to seize a place in the British economy. The Americans went where the Germans had not succeeded in sneaking in. - 208 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Three years later Lyttelton received his reward. They raised him almost to the very top of the pyramid of the international monopolies. He resigned from Churchill's Government, abandoning the post of President of Board of Trade and Minister of Production. The next day he sat in the armchair of the Chairman of the Board of Associated Electrical Industry. At one time Lyttelton had served the merchants of death, selling them raw material. Now he himself had become one of them. III Three firms have been supreme during recent decades in the immense armaments market in Western Europe: the Vickers trust in Great Britain, Schneider-Creusot in France and Krupp in Germany. After World War II Schneider had to begin at the beginning. Krupp was put out of action for a while. Then the Americans put Krupp on his feet, but the battlefield remained to Vickers. Today this is doubtless the largest private producer of conventional armaments in Western Europe. Millions of people were killed by this con- cern's death-dealing production. Its plants are located not only in various English cities, but also in Spain, Italy, Ireland, Australia, Canada, Pakistan, the Union of South Africa, and even in Japan; they existed also in Czarist Russia (Aktsionernoye Obshchestvo Nikolayevskikh Zavodov i Verfey), in Turkey, Rumania, Sweden, etc. During the past 60 years there has been hardly any war conflagration in Europe or elsewhere in which Vickers was not directly or indirectly concerned. The firm delivered arms for both world wars, set the Balkan countries to fighting among themselves, participated in all the anti-Soviet plots and inter- ventions, financed the Hitler organization in Great Britain, and did not disdain to set armed conflicts aflame in corner of South America or in the mountains of Asia. ? Its agents operate tirelessly in the capitalist countries, even the smallest. Some of them are well-known politicians; others are journal- ists, bankers, lawyers; still others are shady business men or adven- turers. Wherever you smell gunpowder, look for the Vickers man nearby. Wherever it is quiet, another man sent by this firm is already at work. During World War II and before it, one of these agents was the notorious Sir.Basil Zaharoff, a Greek. He was born in Turkey, married a Spanish duchess, became a nobleman in Great Britain and lived in France. The newspapers called him "the mystery man of Europe." Zaharoff was a close friend and adviser to the British Prime Minister, Lloyd George and the .French premiers, Clemenceau and Briand. Clemenceau's son was a sales representative of the Vickers firm in Paris. During the years preceding World War II many prominent members of the British Government were stock-holders, as for example, Hailsham, Secretary of State for War, Lord Swinton, Secretary of State for Air, Lord Horne, Chancellor or the Exchequer, Gilmour, Secretary of State for ?209- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 the Home Department, etc. Many British generals and admirals depend on this trust by tradition, particularly those of them which deal with the military construction and supply of the British Army and Navy. The Vickers concern is closely affiliated with the top echelon of the reactionary camp in Great Britain. It is for this reason that the Right-wing Labour Government did not succeed in nationalizing the Vickers trust in its time. To do this would have meant causing a kind of politi- cal revolution in Great Britain. Lord Waverly, former Home Secretary, is one of the directors of the concern; he is also director of the Imperial Chemical Industries Trust. Thus there is a direct affiliation between two gigantic British war monopolies. Another director of Vickers is Colonel Maxwell, son-in-law of the late Conservative Secretary of State for Foreign Affairs, Austen Chamberlain, the target of numerous caricatures in the 1920's. Not long ago the Vickers concern was headed by Lieutenant-General Weeks, who was Chief of the Supply Department of the British Army during World War II. Another member of the board, a certain Vivian Smith, is no less interesting. He is just a little higher than the generals and ministers: he is manager of the London branch of the New York Morgan Bank. Vickers is the British branch of a peculiar internationale of merchants of death. It is affiliated with the American war industry monopolies, General Motors and General Electric, with the French Schneider concern, with the German Krupp firm, and with suppliers of arms in all capitalist countries. The North Atlantic Union, the Western European Union, and the aggressive pacts in other parts of the world are, in many respects, political masks for this secret interna- tionale. This is the circle that Mr. Oliver Lyttelton joined after World War II. For a long time the Vickers concern has had a special daughter company to which all of its electrical enterprises were assigned. Until 1929 this company was called Metro-Vickers. Many remember it for the celebrated espionage affair uncovered in Moscow in 1933. After- wards this name was only used for one of the branches and the main enterprise was renamed Associated Electrical Industries. At the same time, along this line, Vickers entered into a close affiliation with the American Morgan electrical trust, General Electric Company. We present all these details to show what Lyttelton, the butcher of Negroes and Malayans, actually represents. 210 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 IV Having formed a new government in 1951, the big monopoly circles could not get along without a man such as Lyttelton. The Vickers agent had to become a member of the Cabinet. But Lyttelton's government ap- pointment was not due solely to his place in the circles of the mar manufacturers. A considerable role was also played by another special circumstance which the general British public has already begun to forget, but which the ruling circles remember well. It was a matter of Lyttelton's affiliations with the most powerful British colonial trusts, the pillars of the British Empire. These affiliations, established during that period of his life when he was still "non-ferrous metals king", were never bro- ken. This is why Lyttelton received the post of Secretary of State for the Colonies. He was given the most "critical" section, the so-called "black" and "yellow" affairs; in other words, hunting after Negroes and Malayans. The imperialists would have a hard time in finding a better candidate for this post. Lyttelton was the chief of those reactionary politicans in London whose personal fortune was based on the semi-slave labor of workers in the British mines in Southeast Asia and Africa. His career was built on this foundation; while working with Vickers he always remembered this. His opinions on the colonial question were set once and for all. For him the Negroes and Asiatics are not people, but super-cheap instru- ments. They do not have the right to think or to feel; their business is to work until they can work no longer. If black-skinned and yellow- skinned persons work 12-14 hours a day, receiving a handful of rice or beans for subsistence, and die from this work and "diet", this, from Lyttelton's point of view, is in the nature of things; profits pile up in London, "white civilization" flourishes, and they get rich. If the Negro and Asiatic workers become disturbed and demand more food, freedom and life for themselves, this is a "scandal" and "disgrace", and "impudent challenge" to civilization, and the Lytteltons are indignant. Then, in their opinion, the black and yellow people must be penned behind barbed wire or be hanged. Such have been the fixed principles of the imperialists' colonial policy during the last two centuries. Using these principles, Lyttelton earned many millions. He knew his business. On the eve of World War II Lyttelton was chairman or director of over 20 joint stock companies; 19 of them operated mines in various parts of the world. These enterprises included such extremely large British colo- nial monopolies as the Imperial Smelting Corporation, the Zinc Corpora- tion, the Burma Corporation, the Broken Hill Company, etc. Lyttelton was especially closely affiliated with two of the most important concerns of the Empire tin industry: the London Tin Corpora- tion, owning mines in Malaya, Thailand, Burma and Nigeria, and the - 211 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 British Tin Investment Corporation, owning stocks in many Malayan com- panies. When he received a government appointment in 1939, Lyttelton resigned from the boards of these monopolies, but kept their stock and continued to manage them through figurpheads. For example, the chairman of the London Tin Corporation today is stock broker John Spens, who was Lyttelton's closest assistant in the Ministry of Production during the war. The British tin industry in Malaya until this day is mainly in the hands of Lyttelton's group. This fact is diligently concealed from the people by the British bourgeois press. It would not be suitable to mention that he in whose name the government of Great Britain conducts war against the Malayan people is the same person who is secretly robbing these people. Two-fifths of all the tin and one-third of all the rubber produced in the capitalist world is obtained in Malaya. The British colonial pirates began to seize this country at the end of the 18th century when they "bought" Penang from one of the native island princes for 20 boxes of opium and an annual honorarium of 6,000 dollars. From this time on Malaya was a gold mine for British capital. Two-thirds of the peasants were driven from the land to clear a place for the British plantation owners and industrialists. Exports of Malayan rubber and tin, during one five-year period (1946-1950), gave Great Britain over a billion dol- lars, i.e., as much as she received from total exports of items of her own manufacture during 1947. How was this billion obtained? By colonial robbery, organized by gentlemen of the Lyttelton type. The Malayans who were driven from the land were forced to work in the mines and plantations for one-eighth to one-fifth the average pay of British workers. Women and children re- ceived one-third less than men. The workers in the British enterprises were given windowless cabins. Malayan hospitals were frequently over- crowded with people dying from hunger. When the patience of the Malayan workers began to come to an end in 1948, the British government dissolved the All-Malayan Federation of Trade Unions and instituted a state of emergency" in the country. Mass arrests, round-ups and executions began. The British plantation owners lynched insubordinate workers. The people retaliated by creating parti- san groups. Then half of the overseas British Army was thrown against Malaya. A colonial terror began and continued for about eight years. Even the Hitlerites could envy what took place in Malaya. Hundreds of thousands of people were imprisoned in settlements surrounded by barbed wire. By spring of 1954, 600,000 persons had been detained or arrested -- one-tenth of the whole population! When these matters were being handled by the Rightist Labour minis- ters, Lyttelton, sitting in his usual elegant pose on his bench in the House of Commons, applauded his "political opponents" who were doing his -212- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 work for him. Then he himself began to organize the terror in Malaya, not stopping at anything. But his equanimity began to desert him. Malaya did not surrender. Lyttelton was astonished: neither gallows nor con- centration camps were effective. Should the whole population be arrested? Lyttelton did not go as far as this idea but he was close to it Half a year after his appointment as Secretary of State for the Colonies he was compelled to admit that the British authorities in Malaya, with his knowl- edge and permission, not only threatened the Malayans with mass destruc- tion of their crops, but actually destroyed them, using special chemicals. V Lyttelton inherited the war in Malaya from his predecessor. He started the war in Kenya himself. During three years of his stay in the position of British Secretary of State for Colonies he stirred up an ex- plosion of insurrection throughout the African continent. It would be difficult to count the number of capitalist enterprises in Africa in which the group of colonial magnates affiliated with Lyttelton is interested. From this group's point of view, Africa is not only the most important rear base for the British General Staff in Europe and Asia, but is also a gigantic inexhaustible depot of most valuable metals -- copper, chrome, wolfram, uranium, gold, aluminum, etc. -- for making the London shareholders rich. Africa supplies more than half of the tribute which Great Britain annually exacts from the colonial and semi-colonial peoples; in 1952, of a total 1,222,000,000 pounds sterling received in London from the British colonies, 621,000,000 came from Africa. In this respect the "black" continent has replaced India to a considerable degree for British capitalism. Until recently no one could have been as easily and advantageously exploited by the Lytteltons as the African Negro. The Negro's labor was much cheaper than the Malayan's labor: he worked for one-twentieth to one-fortieth of the wages paid to a British worker; children received even less. In other words, this labor cost its British employers almost nothing. They forced the Negroes to work under any conditions. In the gold and coal mines of Southern Rhodesia they were compelled to work the rock with their bare hands. At the mines they were frequently kept in guarded closed camps, and were beaten with canes or birch rods for the slightest "offense". Thus the huge fortunes of the British reactionary politicians and business men were created. What happened in Kenya? This is one of the most fertile territories In the African countries. Half of the best cultivated arable land in Kenya was seized by 3,000 British colonizers; about 5 million Negroes were chased into "reserves," for the most part located on poor land and in unhealthy areas. Forty percent of the Kikuyu tribe were turned into a landless proletariat, i.e., into farm hands and workers for the colo- nizers. The law in Kenya made it possible to force Negroes to do any work without remuneration for a period of 90 days each year. In many -213- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 places the white landowners compelled them to work without remuneration for half a year in return for the right to live on the land which at one time belonged to them. One of the leaders of the national liberation movement in Kenya said: "The white people taught UB to close our eyes while praying; but hardly had we closed our eyes than they stole our land from us!" Grumbling was forbidden. Kenya was administered by an autocrat -- a British Governor General. He had a "Legislative Council." Thirty thou- sand whites had 39 representatives in this Council, 115,000 Hindus and Arabs had 8 representatives, and 5,5000000 Negroes had 6 representatives, who were not elected, but appointed by the British from among native princes they had bribed. Until recently it was considered that the Negroes in Kenya had only three rights: to work, to pray, and to die. But during recent years the Negroes have stopped praying. Trade unions were established in the country. A powerful organiza- tipn arose -- the Kenya African Union. Masses of semi-slaves joined the movement. In 1952 the African Union sent Lyttelton a number of demands, chief among which were: just distribution of the land, establishment of equal wages for blacks and whites, cessation of all racial discrimination, freedom of action for trade unions, freedom of speech, assembly and press, and equal electoral rights for Negroes, Europeans and Asiatics* The Negroes demanded recognition as people. Lyttelton considered that this was too much. How could such a scandal be allowed! The Secretary of State for Colonies immediately decided to conduct an experiment. Kenya must become an example for the whole of Africa. Declaring that there was an alleged secret terrorist society in the country, the "Mau-Mau", from which it was necessary to save the British Empire, a state of emergency was instituted in Kenya. Lyttelton came and announced: "Statements that greedy Europeans and Asiatics are oppressing Negroes are completely false." After this the Secretary went from words to deeds. Negroes throughout the country were chased into concentration camps in which gallows were erected. Those accused of belonging to the "Mau- Mau" were hung or condemned to 24 blows with the whip. The whole region where the Kikuyu tribe was settled, 2,000 square miles in area, became a concentration camp. Livestock, the inhabitants' only source of liveli- hood, were taken from them. Their houses were destroyed. Punitive expeditions attacked the countryside. Unarmed Negroes were bombed from planes. Tens of thousands of people were seized. By the end of 1953, according to data of the British Government itself, 3,399 Negroes had been killed. During one week, at the beginning of April 1954, over 120 persons were killed. The leaders of the Kenya African Union, led by Jomo Kenyatta were imprisoned. The British arrested and detained over half a million Negroes. In order to guard the prisons and concentration camps, a whole army of prison keepers, 14,300, was mobilized. -214- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIAIRDP65-00756R000300270001-9 "The experiment" in Kenya was conducted systematically day after day. Elegant, well-groomed gentlemen, sitting in the office of the British Secretary of State for Colonies, managed the whole affair. But what were the results of this experiment? The London newspaper, The Daily Mirror, came to the conclusion that Lyttelton "killed Kenya with his Icurel". This is not true. Lyttelton could not kill all the Negroes as he could not arrest all the Malayans. The result of what they did was stated by Labour Deputy Brockway, who called Lyttelton "the best recruiter for the 'Mau-Maul Society." On 31 March 1956 the London magazine, New Statesman and Nation, stated: "In fact, history can say that despite the whole tragedy, the 1Mau-Maul insurrection was the salvation of Kenya." Speaking at the Royal Empire Society in February 1953, Lyttelton was forced to admit that he could not say how much time would be required to suppress the Negro movement. More than 3 years went by. Lyttelton still could not answer this question. He will never answer it. The front of the national liberation movement in Africa is already spreading beyond Kenya's borders, enveloping Great Britain's neighboring possessions. Founded by semi-slaves rising to struggle for freedom, this front is unconquerable. No matter how much the Lytteltons fight against the national liberation movement, it is growing and becoming stronger. In the 20th century the peoples have turned out to be stronger than the colonizers and oppressors. Oliver Lyttelton's experience proved only one things an imperialist colonial policy, depending on its last, most desperate resort -- mass terror, is useless. Lyttelton had to admit this fact himself. When, in July 1954, he announced in London that he was retiring from the position of Secretary of State for Colonies, his letter to the Prime Minister was published. Lyttelton stated that he was leaving the government for "personal rea- sons," since he wished "to return to private life." The hanger of Negroes and the murderer of Malayans, acknowledged his bankruptcy. He could not force the colonial peoples to their knees. After a few days it became clear to what "private life" Lyttelton was returning. He went to his old friends of the Vickers concern, on the board of the Associated Electrical Industries. "Private life" for this man is still trade in death. The organizer of colonial wars again changed to the role of behind-the-scenes organizer of a new world war. This is what the business man from the London City has devoted the rest of his life to. This time he is playing his game not only against Malayans and Kenyans, but also against all the peoples of the world, - 215 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP6.5-00756R000300270001-9 including those people whom he fears most of all, the people of Great Britain, The British do not wish an atomic war from which their own country could suffer. It is hardly possible that the Lytteltons will succeed in conquering the British. -216- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Field Marshal Montgomery's Obsession A. Leonidov Various types of mental disturbances are known. Among the more serious are, for example, persecution mania, megalomania, and mania for destruction. There are cases when a person is possessed by several such manias at once o in an especially severe form. Then the illness takes a serious tarn; the patient becomes violent and either attacks people or commits suicide. The AmericanSecretaryofDeftrise)Jaines Forrestal, suffering from a persecution mania and an atomic destruction psychosis, threw himself out ,of an eleventh story window. Although insane, he remained the leader of the United States Army, Navy and Air Force and resigned only at the last minute. Forrestal's calls for atomic warfare and atomic destruction coincided with the-policy of the American reactionaries. This, of course, was a particularly severe case. But there are also people who are said to have only an obsession., It is possible that fu- ture historians willEtudy the question of how many leading political, economic and military positions in capitalist countries of the Wast were held in the 1950's by people with "obsessions", who never had a thought of throwing themselves out of windows. Psychiatrists will demonstrate that about the middle of the twen- tieth century certain reactionary politicans, financial kings and military leaders in the capitalist world began to have a certain type of psychosis -- a mania for atomic destruction. It will also become clear that individuals subject to this disease continued to be regarded in their environment as "big politicians", "military geniuses" and "business giants" -- just at the time that emergency measures should have been taken to protect mankind against them. It is true that some people with Mental disturbances have an unusual ability to conceal their disease from persons around them. But sooner or later they give themselves away. -Here is an example. Late in 1949 a Britisher stated in public that a new war "would be a-real holiday for Us4- and will kill:lotS of people". It is difficult to believe that this was said by a healthy person. Fully normal people do not talk this way, even in times of excitement. Maybe this was an accidental "outburst", which the speaker immediately regretted. Three years later, in the spring of 1953, the same Britisher delivered a speech at the National Press Club in Washington on the inter- national situation and on the "European Defense Community". Here is how he began his speech: -217- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 "What is the reason for the mess throughout the world? Probably I could talk on this subject for five hours. I shall try to explain to you in five minutes what I think the trouble is... The present "cold war" must be coiducted on a global basis. This is imperative. But it is being conducted otherwise. The next war must likewise be waged on a global basis... Is all this clear? This little mess doesn't amount to much. Wait a minute, and you will hear something better... To tell the truth, gentlemen, I know that I did not speak so badly. That is right. In such a brief time I have explained the causes for the present mess in the world." Then the speaker made the following declaration (we quote him word for word): "Look at everything that is taking place around us. There is nothing that is in full order. The thing is to make a start. I want this treaty (on the aggressive war pact in West Europe -- A. L.) to be put into effect. Let everything be topsyturvy at first, everything will get straightened out later. Set this infernal machine into motion, boys, and push it along. Push it along. The French must ratify the treaty. They have got to ratify it. No matter what, they are obliged to ratify it. ... They have got to do it." The author of both the statements cited here is a British Field Marshal, Lord Montgomery, Deputy Supreme Allied Commander of the NATO armed forces in Europe. According to the British press, Montgomery never touches intoxicating liquors because of religious convictions. Thus, we must regard his state- ments as having been made while sober. How could such a person become a Field Marshal and one of the leading military commanders of the West? II "He is very short, and to seem taller because he wears shoes with very thick soles. He was usually photographed standing on some ele- vation; then his appearance became more impressive and stern. He was in his famous black beret. ... The loudspeakers brought to everyone his shrill, almost penetrating voice." This is how Ralph Ingersoll, an American journalist assigned to the main headquarters of the Anglo-American forces during World War describes the first meeting of American soldiers in Great Britain with Montgomery in December, 1943. By this time, the London yellow press was already proclaiming Montgomery to be a "military genius". This was a myth. But his entire reputation as a commander rests upon a myth. 218- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Montgomery was born in Ulster, the northern part of Ireland, long since captured and settled by British Protestant land-lords and kulaks. The Ulster land-owners and industrials have long been considered the most reactionary section of the British bourgeoisie. Even amont the conservatives, the Ulster "die-hards" were regarded as incorrigible and dangerous retrogrades, stopping at nothing in seeking their sinister goals. For many decades, the Ulster landlords took land away from the Irish peasants and made them into hired hands, workers or paupers. The Irish emigrated to America by whole villages. A chronic terror reigned in Ulster. Irishmen who resisted were hanged, or, in less serious cases, were lashed and left to rot in jails. Some of the Ulster landlords and their children enthusiastically applied their skill in pacification abroad. In the British colonies, they proved themselves to be top-notch specialists in this field. Montgomery's paternal grandfather was a general in the Anglo-Indian Army, which took part in the bloody suppression of the Indian Mutiny of 1857. At that time, as became well known in Great Britain, some officers of the punitive brigades acquired a great deal of property, appropriating valuables from plundered temples and the property of Hindus who were killed or exiled. While certain members of the Montgomery family were educating the Irish and the Hindus with the aid of gallows and whips, others were deliv- ering sermons. Combining one with the other was always a tradition of the Ulster landlords. Members of their families shared both these trades. Montgomery's maternal grandfather was the Dean of Canterbury Cathedral, his father, the Bishop of Tasmania, and his brother, a military chaplain. The "Black Hundred" North Irish landlords, colonial nabobs who con- sidered all peoples except the Anglo-Saxons to be of an inferior race, church functionaries who were cold as death and who chilled any display of a healthy popular spirit -- it was in such an environment that the youth of the future field marshal was passed. Evidently, it left a deep impression on his thought and character. This man, who dreams of an atomic war as a "real holiday" and calls for "killing a lot of people" with unconcealed enthusiasm, is still trying to pass for a "deeply religious" ascetic. Because of the same motives, the Field Marshal does not even allow himself to smoke. A cigarette is a mortal sin for Montgomery, but an atomic bomb is a sacred thing. Montgomery attended that school of colonial militarism which all officers of the British General Staff formerly attended without excep- tion. Lacking this, their education was considered to be incomplete, and they were not allowed to occupy high posts. In the colonies they were trained to "command", that is to tryannize the defenseless aborigi- nes. If someone did not distinguish himself in this, he did not have a career. Colonialism is not only the source of the riches of the old -219- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 'V* Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 British bourgeoisie, but is also their higher educational institute. It is not possible to learn the military art in the colonies, since the enew there is unarmed. But it was relatively easy to advance high in the ranks. The more arrogantly and mercilessly an officer conducted him- self toward the colored population, the faster he usually received his promotions. In the mid-1930's Montgomery, who began his service in 1908, was a Colonel on the General Staff_in the Indian city of Quetta. In 1938, he was appointed a Divisional Commander in Palestine, where the British authorities were then carrying out repressions against the population. Montgomery, already a General, improved and broadened hib qualifications. Then a sudden end came to the colonial idyl. Montgomery was sent to France to fight against the Hitlerites. On the night of 31 May 1940 he was hastily evacuated from Dunkirk to his homeland, having won no laurels. The general spent the next two years in the rear areas. In August, 19420 Montgomery's real career began. As was remarked in British military circles, he was unusually lucky. Rommel's Hitlerite army was then pushing the British forces back in North Africa, driving toward the East. General Harold Alexander was named the new Commander- in-Chief of the British armies in the Near East, and General Gott was made Commander of the Eighth Army, which was subordinate to Alexander. The aircraft on which Gott was flying to his headquarters to take over the command was shot down by the Germans, and Gott lost his life. MOntganery? almost unknown to the British public, was appointed in his place. After a month the German advance on Cairo was beaten back, and in November' 1942, the British Eighth Army defeated Rommel at El Alamein, thus establishing Montgomery's military reputation. The British victory at El Alamein was explained quite simply. The British Eighth Army by that time had received armament in quantities it had not possessed before. The allied fleet was advancing toward the French possessions in North Africa. It was to make a landing in Rommel's rear. The German and Italian forces were isolated and could not expect reinforcements; Hitler had concentrated all his forces to strike at Stalingrad. The outcome of World War II was being decided on the Soviet-German front, and events there largely determined the conditions of battle in the African desert. Today this is clear to any serious military historian. The American expert Hanson Baldwin has reached the conclusion that "it 'as impossible to lose" the battle of El Alamein. Nevertheless, after El Alamein many British newspapers claimed that the entire victory was due to Montgomery's exceptional abilities. An unprecedented clamour arose around the name of the former colonial officer-pacifier, who had until then made his mark only as a "strategist" against unarmed people. Montgomery was raieed to the level of a 220 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 "military genius". The reactionary British circles, which were responsi- ble for a number of defeats in the early part of the war and were system- atically postponing the opening of a second front, needed a swash-buckling figure at the head of the army, a military "star" who could be flaunted before the public. When the British workers cried out at meetings, "Why aren't we fighting?", the reactionaries answered, "Look at Montgomery". Montgomery looked at himself. There is no doubt that he himself -played one of the leading roles in the British press campaign exalting him. This general undoubtedly has one ability; he is a true master at advertising himself. It is right in his element to make a lot of noise, to talk about himself, to "impress" reporters and photographers and to appear before the public on specially erected elevations. It is no secret that Montgomery often prepares an interview with himself in written form, which is then printed in British and American newspapers under yard-long headlines, Hanson Baldwin wrote of Montgomery: "It was impossible not to admire this man's histrionic ability." Noting the "posturing inherent in Montgomery", his "stupendous egoism and extraordinary self-confidence", Baldwin also remarked that Montgomery's book on his European campaigns was written inarticulately", although "the personal pronoun 'I is abundantly scattered throughout the book." After El Alamein, Montgomery was made a full General and was knighted. A year later he became the Commander-in-Chief.of the British forces niqh were to land on the.Enropean continent. In this post he positively declared himself to be unbeatable. But military history has another opinion. In reality, Montgomery personally suffered a number of defeats beginning with the landing in Normandy in June 1944, and continu- ing right up to the surrender of the Hitlerites in May 1945. - - Iv Montgomery began by obtaining a delay from the beginning of May to June, 1944, in the landing on the French shore, despite the decisions of the Teheran Conference. After landing in Normandy, the Allied Forces suffered a serious defeat at Caen. For almost a month they were unable to take this city, and lost the entire British tank corps, which was thrown against the most strongly fortified sectors of the German posi- tions by Montgomery's command. In Eisenhower's headquarters, action against Montgomery was demanded; he was for all practical purposes de- prived of the position of Commander-in-Chief of the Allied infantry forces in the Nest, In September of the same year, Montgomery essen- tially lost the battle of Arnheim, where he had planned to win a decisive battle so that he could end the war in 1944 with a triumph for himself. Realizing that he would not be able to do this, Montgomery declared in November that an invasion of Germany would be impossible vAta the summer of 1945. It was only because the Soviet Army was Con- tinuing its smashing offensive in the East that Montgomery again decided -221- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 to act. If World War II had developed as Montgomery wanted it to, and not as the Soviet Union wanted it, Hitler would have been able to recover from the blows struck at him and to prepare carefully for a spring cam- paign. When Hitler counterattacked in the Ardennes in December, 1944, Montgomery, according to Ingersoll, "became panicky", ordered his units to retreat and 'almost ruined everything". As is well known, the Soviet Army's advance on the eastern front, which the British urgently requested from the Soviet High Command, enabled Montgomery to avoid a complete de- feat and permitted the British Army to ward off another Dunkirk. Never- theless after the Ardennes battle Montgomery handed the press an interview composed by himself in which he claimed that he personally saved the sit- uation and won the battle. At the end of March 1945, when the Soviet Army was completing its defeat of the Hitlerites, Montgomery decided to cross the Rhine. Now he had the aim of breaking quickly into the German plain in order to attempt -- as was clearly established subsequently -- to outrace the Soviet Army in capturing Berlin. But Montgomery failed here also. Berlin was taken by the Soviet Army. The war was over. Montgomery collected the weapons surrendered by the Germans so that it would be pos- sible some time to direct them -- together with the Hitlerites themselves in the Western Zone -- against the socialist countries. As far back as the spring of 1945 Montgomery was thinking of what is now being considered day and night in the headquarters of the North Atlantic bloc. V Such is a brief sketch of the military career of this noisy Field Marshal, who, according to the American writer Ingersoll, is considered by the Americans to be a "mediocre general". We must admit that Montgomeryls prestige as a commander has been "gilded" by himself and his influential protectors. This is the principal secret of his career. We must take into account that it is these same benefactors who play the principal role in everything that is done, said and dreamed by the present Deputy Supreme Commander of the NATO Armed Forces in Urope. Montgomery is a product of British imperialism. His personal "pecularities and obsessions", his mania for destruction and his atomic psychosis to some extent reflect the condition in which British monopoly capital finds itself at present. Its condition is extremely serious, the most serious in its history. This is why some "heroes" of British imperialism today differ so in their conduct and in their calibre from such "heroes" in the last century. It has long been known that in every historical era and in every country the calibre and conduct of the lead- ing politicians and statesmen is determined primarily by the situation of the class which they represent. In its heyday, a class brings forward -222- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 -individuals who are quite different in their talent from those it brings forward during its decline. This is seen particularly clearly in the case of Montgomery. British capitalism is in decline. At one time it had first place in the bourgeois world and dictated its will to 600,000,000 people, a quarter of all mankind. The territory of the British colonial empire was almost 170 times as great as the territory of Great Britain. Now British monop- oly capitalism is in the grips of a crisis. Its colonial empire is falling apart before our eyes, and the military adventures undertaken to restore it are failing. The peoples of Asia and Africa are pushing the decrepit British lion from all sides. The American billionaires are taking over its former positions. Daring such a time the exaltation of such persons as Montgomery by the British bourgeoisie cannot cause any wonder. It is in need of people suffering from aggressive psychoses who demand that "everything be topsy- turvytt The bankrupt colonialists are placing their bets on the former colonial pacifier who has lost any contact with reality. Montgomery is unable to understand that he will not have a chance to pacify anyone the way he did in the old days or on that scale. It has never occurred to him that the world today is not like what Ireland and India were in his youth and that it is not afraid of his lash. He is now seventy years old, but is still self-confident. In his speeches in recent years he always repeats the same thing -- a typical trait of people possessed by obsessions. He presages a "holiday" of war, and with a kind of voluptuousness presents a picture of a "mass atomic bombardment of the East", as he visualizes it. When one becomes ac- quainted with Montgomery's speeches, one gains the impression that there is no room for any other thoughts in his head. In October, 1953, Montgomery declared: "Though the population of the NATO countries consists of 400,000,000 persons, and the population of the Soviet bloc amounts to 800,000,000, our side has unequalled spiritual power". What does this person mean by spiritual power? Of course, the atomic bomb. On 8 October 1954 he confirmed this, stating in Ankara: "Some say that atomic weapons will not be used if war breaks out. I do not share this point of view. We shall be obliged to use atomic weapons." Two weeks later Montgomery reported in a lecture at the Royal United Service Institution: "We in the NATO headquarters are basing all our plans for military operations on the use of atomic and nuclear weapons." And four months later, speaking in the American city of Pasadena, he again explained how he understood the incomparable "spiritual power" of the Atlantic bloc: "We shall not be able to with- stand the force which might be unleashed against us if we do not use nuclear weapons". -223- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 It was 1955 and the beginning of 1956. "The spirit of Geneva" was dispelling the atmosphere of the "cold war". The great majority of Englishmen were joyfully greeting the prospects of a peaceful coexistence of the two systems. But Montgomery talked, talked, talked -- and all about the same thing. On 5 November 1955 he declared in Denver: "The fear of atomic des- truction is Strengthening peace." What does this mean? Only one thing, that the more atomic and hydrogen bombs there are, the more fear there is, and the more fear there is, the stronger peace is. Conclusion: more bombs. Such is this man's "logic". Of what interest to him are the intelligent arguments which say that to strengthen peace no atomic bombs at all should exist. A month later, at a meeting of the NATO Council in Paris, he openly advocated preparation for an "unlimited nuclear war". On 10 October 19560 Montgomery delivered a lecture at the Royal Military Academy in London With the title: "A Panorama of War in the Atomic Age". At last he was offered a topic to his own taste. Montgomery presented his "panorama" with such satisfaction, and talked about the horrors of the "future war" with such cynicism that, as the right-wing British news- paper, Daily Mail, was obliged to report, the audience at the lecture listened o i in gloomy silence". Montgomery again called for an anti-Communist 'crusade" and criticized the western powers for "insuf- ficient preparation for nuclear warfare". He demanded the preparation of a "general global plan against Communism" and called upon the coun- , ,tries of the West to "make every effort" to supply the army with atomic weapons. After this rollicking lecture of Montgomeryls, a commentator in the Daily Mirror, the largest newspaper in London, wrote: "I ask you, what would we say if some Soviet commander, equal in rank to Lord Montgomery, were to mount a lecture platform and describe in detail how Russia is preparing to defeat and destroy us ten years from now and how no mercy would or could be shown to the survivors?" , It is understandable how a person such as Montgomery talks about the mass destruction of people with satisfaction. But still the indefat- igable atomic travelling salesman does not want to think about his not being alone in possessing nuclear and hydrogen weapons. He forgets the fact which all sane persons in Great Britain are constantly pointing out, that the island of Britain is extremely vulnerable to atomic war- fare. He prefers not to elaborate upon this topic. All he wants is to "make a ?start", "to set the infernal machine into motion", and to turn "everything topsyturvy". Perhaps he has already prepared a number of additional sensational interviews with himself in the event that these things do take place. *224- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 VII. We have already explained how and why Montgomery has been brought forward. However, in recent years his reputation in Great Britain has suffered considerably because of his pathological atomic fantasies. Still he has been left in his position. It is not hard to guess the reason. The atomic psychosis of militarists is advantageous to those who profit by them, namely the largest war monopolies of the West, which are selling armament to the Atlantic bloc, that is, to Montgomery. It is not superfluous to note that the former Chief of Staff, Montgomery's friend, General Weeks, until recently headed the British trust, Vickers, which is manufacturing much of the equipment of the British Army, Navy and Air Force. The more aggressively Montgomery speaks, the faster grow the dividends of the war monopolies which his friends direct. In the final analysis, the Field Marshal is working on the London and New York stock exchanges. In 1953, Montgomery's family became directly related to the British -monopoly oligarchy; the Field Marshal's son, David, married the daughter of the President of the Federation of British Industries, Charles Connell, owner of one of Scotland's leading ship-building enterprises. Montgomery cannot be separated from the reactionary monopolists of the City. But while Montgomery is of the same flesh and blood as British capitalism during its historical crisis, he must in no way be confused with the British people. As in the cases of General Ismay and the moliopolist Lyttelton, there is nothing in common between Montgomery and the ordinary Englishman or the British worker. As far back as January 1954, the London newspaper, Daily Sketch, wrote: "Montgomery has called a future atomic war a 'trifling matter'. Regretably, it is difficult to keep Montgomery from making a fool of himself. But we can at least repudiate his crude blunder and ask him to keep his trap shut in the future." Montgomery did not heed this advice. Soon Greenwood, a member of Parliament, stated: .The time has come for this intriguer Montgomery to keep quiet." Doctors state that one should not expect quiet from people with mental "peculiarities" -- especially, we may add, when these people are connected with the stock market. Three years ago, Columbia University in New York awarded Montgomery the honorary degree of Doctor of Jurisprudence. However, the people of the world have given Montgomery another title, which also is connected with law. They consider him guilty of participating in the plot against peace. -225? Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 PIP Smithy THE BONN'REPUBLIC "Regardless of the phrases behind which the Bonn authorities and their, western partners may hide, it is perfectly clear that their program is based upon con- verting all of Germany into an imperialistic state and into the primary military base of NATO in European -- N. S. Khrushchev, speech at a meeting of the People's Chamber of the German Democratic Republic, 8 August 1957. of War M. Sturua Once the French journal Usine Nouvelle, not without a tremor of feeling in its voice, stated:_ "The Ruhr has again become a symbol -- the symbol of a mighty heavy industry which is a dangerous competitor in peace time and a gigantic center of war production," ...When bourgeois writers talk about the Ruhr, their breath stops for a moment. "Unique" is an epithet which they honor it with so often that theAmeriean journal United Nations World calls this epithet "tiresome". This, however, does not prevent the Ruhr from remaining truly a unique Area Of its type in the richness of its mineral deposits, in the advan- tages of its location, in the strength of its economy and in the concen- tration of its industry. In a small territory along the river Rahr (a right tributary of the Ziline, sixty kilometers from east to west and twenty to thirty kilo- 'Meters from north to south, is concentrated the war-industry smithy of Germany. "Here in the Bahr", writes the American journal New York Times Magazine, "are located the steel mills and metal-processing plants which supp ie Wilhelm II and Hitler with everything they needed to almost at- tain victory". (The word "almost" is correct; we must not forget this.) In this Small scrap of German soil are located three-quarters of all the coal deposits in Germany, estimated at 250,000,000,000 tons (the largest in Western Europe). The coal from the Ruhr is of excellent quality, and is ideal for conversion into coke. The Ruhr accounts for seventy per cent of coal production in West Germany and seventy to eighty per cent of the metal production of all of Germany. Nowhere in the world is there such a concentration of all types of heavy industry in such a small area as there is in the Ruhr. On the basis of the coal: not only the metal, but also the chemical industry _flourishes here; they are closely intertwined. The coal of the RUhr goes into the blast furnaces of the metallurgical plants, and the gas by-products of the furnaces are used by the chemical enterprises. -226- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Every square kilometer of the Ruhr valley is a continuous alternation of mines and plants, plants and mines. The industrial cities of the Ruhr Essen, Duisburg, Dortmund and Dusseldorf -- are located so close to each other that if one has a bird's eye view of the Ruhr, it appears to be a single continuous city. Transportation facilities in the Rthr are excellent. Railroads and river canals cover the Ruhr region in a thick network. Along the Rhine and along railroads through Holland, the production of the Ruhr beats a path to the sea. The Dortmund-Ems canal connects the Ruhr with the North Sea. The freight turnover of the Ruhr is enormous. The Ruhr im- ports iron ore, scrap iron, lumber, cement, other building materials, and a substantial amount of food; it exports coal, pig iron, cast iron, steel, numerous metallurgical industry products and chemicals. Over two million highly qualified specialists and workers are con- centrated in the Ruhr. The high concentration of war production, the enormous natural re- sources, the excellent transportation connections, the highly qualified working force -- these factors are attracting the greedy eyes of inter- national imperialistic reaction to the Ruhr. This is why the Ruhr was spared during the war and was quickly reborn after its occupation. The Golden Rain Immediately after the defeat of the'Hitlerites in West Germany, emissaries of the largest American and British monopolies rushed in. After hastily putting on military uniforms and diplomatic dinner jackets, they took matters into their own hands. General Lucius Clay was made the first American High Commissioner in West Germany; he was Chairman of the Board of Directors of the Continental Can Company and a Director of the copper,mining company Newmont Mining. Another general, William Draper, Vice-President of the large American bank, Dillon, Reid and Company, was assigned as financial advisor to Clay. The American occupa- tion organizations controlling the west German mining and metal industry turned out to be in the hands of the largest steel companies of the United States, chiefly United States Steel. When, on 26 February 1949, the "German administrators" were appointed to put the "de-cartelized" steel mills into operation, the control over their activities was en- trusted to the American observers William Brinkerhof, Werner Nauman, Ronald Clark, and I. F. L. Elliott. All four were representatives of United States Steel. _Exceptional activity was shown in the Ruhr also by the largest banking groups in the United States -- the Warburg and "Kuhn, Loeb and Company" groups, the First National Bank, the Rockefeller banking house, and likewise the Societe Generale de Belgique, controlled by Wall Street. -227- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 The former American .grigh Commissioner John McCloy was a henchman of the American financial oligarchy, especially the Rockefeller-controlled Chase National sank (now the Chase Manhattan Bank). These people, according to the author of the pamphlet "Diary of democracy," H. A. Toulmin, "preserved and protected" the pre-war cartels. In general, as was pointed out in the pamphlet published in Great Britain in March, 1954, Who Controls West German Industry?, "the restoration of German industry was chiefly financed by American tunds and through the same people as in the 1920's." Today mankind knows why that dangerous game was played. Someone across the ocean wanted to use Germany as a mercenary soldier to strangle the young Soviet Russia. But the disobedient soldier undertook to strangle the whole world, including his benefactors. After German heavy industry was restored following World War I, largely with loans of American dollars provided by United States monopo- lies, a considerable role in converting these loans into heavy industry with the aim of reviving the war potential of aggressive German militarism was played by one of the directors of the Bank of Germany, Hermann Abs. Later be became one of Hitler's principal financial advisers. Here is what was written about him by,the American Section of the Allied Control 0014141 aa recently as November, 1946: "Abs was the driving force of the Bank of Germany, in which an unusual concentration of economic power was combined with active participation in the criminal policy of the Nazi regime. Abs gave all his attention to the spreading of German rule over Europe." Despite this "flattering" description, or more likely because of it, Abs wound UP after World War II not on the defendants' bench, but in the poSition of Financial Adviser to the Western occupying powers. Subse- quently he was transferred to the chairmanship of the Commission of Economic Questions of the Council of Europe. (The old love of Abs for Fiurope evidently had not died away.) In 1948 in West Germany the American authorities established the "Credit ISnk for Reconstruction", the President of which was the former assistant of Schacht in the Reichsbank, ?),chniewind, and the vice-president, Abs. The rebirth of West German -m411tary industry was financed through this bank. In the years 1948 to 1950 alone 42.8 billion marks were invested for this purpose in West GerManY; 4 billion of this sum came from the funds of the "Marshall plan". After 19500 the "Credit Bank for ,Reconstruction" (let me add the words "of War Industry") became the transfer point for American private an government investments in the industry of the Ruhr. Funds were also released which the West German monopolies, forseeing the possibility of the defeat of Germany, had transferred in sufficient time to their accounts in Swiss banks. -228- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 The results of all these investments were soon to be seen; the pro- duction index in West Germany by the end of 19.55 amounted to 214, with 1936 taken as 100. The heavy industry of the Ruhr is developing espe- pially quickly. "Things in the Ruhr", reports the American journal Nation, "are probably going better than in any other industrial center in Europe." Seeking to restore their production as quickly as possible, the German monopolies were obliged to make many concessions to their American competitors, which had become dominant as a result of World War II. The pre-war cartel agreements between the United States and West Germany were revised in favor of the former. The American company General Motors, which even before the war had acquired a large block of shares in the largest automobile-manufacturing firm, Opel, is continuing its advance. The Ford Company has expanded its plants at Cologne and has undertaken the construction of a new group of automobile enterprises which will manufacture automobiles and trucks, as well as armored vehicles. The controlling interest in the shares of the west German firms Opel, Ford- werke, and Daimler-Benz, providing about two thirds of the entire auto- mobile production of West Germany, according to press reports, are now located in the safes of American monopolies. The control over the oil induqtry of West Germany has passed to the American oil monopolies ? Standard Oil of New Jersey and Socony-Vacuum Oil. Krupp has had to yield, too. As reported in the Italian newspaper Avantil very large blocks of shams in the Krupp enterprises have gone to the former United States ambassador in France, Douglas Dillon, and to William Draper of Dillon, Reid and Company. Other Wall Street shareholders have also appeared. For the time being, the West German monopolies are reconciled to these gains of their American competitor. The point is that they share the same goal -- to restore the military industrial complex of the Ruhr. But the magnates of West German industry are looking far ahead; they are preparing for the return of their former domination over Europe, and indeed over more than Europe. They are dreaming of the time when they will be able to occupy all the positions which they have lost to the monopolies of the United States. "Flaying with Blocks" Shortly after the war, the American newspaper Wall Street Journal wrote cynically that the United States "is accepting with real enthusiasm the idea of restoring the military industry of the Ruhr". By 1951, this "idea" had become a reality, and by this time 317 plants in west Germany were engaged in war production. At the present time, the number of such plants, according to quite incomplete statistics, exceeds 400. -229 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 ? The concentration of economic power into the hands of the Ruhr coal and steel kings is proceeding at high speed. According to the ADIN agency, a little over twenty Ruhr magnates have now concentrated in their hands 97 per cent of the steel production of West Germany, 85 per cent of the cast-iron output, and 91 per cent of the rolled steel. Tne pre-war trusts and cartels are being born again. The most powerful German steel trust Vereinigte Stahlwerke? with a slight change in its signboard, is again dominant in the Ruhr. The Thyssen Company -- the nucleus of the Vereinigte Stahwerke is vigorously consolidating itself. Its largest units, Huttenwerke Phoenix A. G. and Rheinische Rohrenwerke, have already been consolidated. The Thyssen firm August Thyssen-Hutte has for all practical purposes taken over control of the metallurgical enterprises Niederrheinische Hutte as well. A group of west German magnates associated in the Mannesmann firm, is not far behind the Thyssen firm. This company has already acquired the firm KonsolLdation Bergbau A. G., which in turn hat! swallowed up the company Essener Steinkonlenbergwerke A. G., formerly belonging to the Flick concern. The Mannesmann Company has again absorbed the firm Stahlindustrie and Maschinenbau, which has become the principal machine- building base of the concern. AS a result of all these operations, the Mannesmann firm has become the third in the production of coal in the Ruhr, and has fully regained its pre-war level. At the present time it is producing a third of the West German output of pipes. According to the General Manager of the firm, Zangen, a former Nazi and a close asso- ciate of Goering, the capital stock of the Mannesmann firm now amounts to 370,000,000 marks; at the end of the war it was 160,000 000 marks. Klochner, the hereditary Ruhr coal and steel king, has not only 'regained but has expanded his domain. He has seized the coal enter- prises of the company Koenigsbornwerke A. G. and has acquired the ship- building company Norddeutsche Hutte, which formerly belonged to Krupp. The traditional name of the company, Klocknerwerke A. G., has been restored. The Klochner firm has nearly tripled its capital in compari- son with the period before the war. And what about Krupp? Incidentally, the question mark here is quite unnecessary. As a matter of fact, is it possible to visualize a rebirth of- the Ruhr monarchy of coal and steel kings without Krupp -- the cannon kihg, whose name has become a symbol of German imperialism, a symbol of war. Krupp, while still in prison, together with the steel company head, Flock, did not ask for leniency, in seeking their release as reformed swindlers but proposed a profitable transaction to their jailers. -230- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Through their agents, they informed the American and British occupation authorities that if they were freed, they would be "ready to provide the alliee with certain services". Krupp even promised to submit to the occupation authorities his plan of a "voluntary de-cartelization" of his military plants, "which would accord with the aims of the western powers." The "de-cartelization" of the Krupp military concern in reality became part of the further concentration of his economic power and the restora- tion of his military potential. As the west German newspaper Die Welt has stated, "the Krupp of today is no longer the Krupp of yesterday, and even the Krupp of yesterday was no worse than Vickers-Armstrong or Schneider-Creusot". No one is going to quarrel with this; they are all worthy of each other. It is not possible, and indeed it would tire the reader, to list all the firms and companies, all these innumerable "A. G.'s" and "I. G.'s", which Krupp added to his possessions after the war with every method existing in the wcrld. In general, as the American journal Newsweek stated, "with the return of Alfred Krupp's plants to him, he has again become the dominate personality in Essen, the capital of the Ruhr". Flick did not waste any time, either. His capital, which amounted to about 70,000,000 marks before World War II, now amounts to about a billion and a half. These are the real results _of the e7cartelizatioW' of the Ruhr monarchy. As the British newspaper Manchester Guardian wrote in this regard, "the allie84 measures to liquidate the trusts have been no more 'final' than the activities of a child who knocks down his blocks to build them again the next day." "Flaying with blocks." Yes, you cannot dopy that the Manchester Guardian has a sense of humor. But one cannot also deny that it is flippant, because what it calls "playing with blocks" is in reality a very dangerous game -- playing with fire. When the old cartels and trusts are being reborn and their old masters are taking over the control of these cartels and trusts, it is quite natural that they will begin to follow their old policy. This policy is militarism and revenge. It is not chance that of the 400 military industrialists to whom Hitler awarded at one time the title of "Filehrer of Military Economics", today all who are still alive are again occupying key positions in the economy of West Germany, maintain- ing under their control the most important branches of military produc- tion. . These four "black hundreds", of course, are not playing with blocks. The graph of the stock prices of these military concerns eloquently shows that the remilitarization of West Germany is going on with constantly - 231 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Andreasing speed and is bringing new profits to the West German monopo- lies, especially to the Ruhr magnates. Bonn is operating in full concord with. the Rahr. Military orders are pouring in upon the Rdhr magnates, as if a horn of plenty. , As far back as the beginning of 1954, the Federal Union of German Industry, composed of magnates who at one time financed the Hitler mili- tary adventure, established a "Committee on Armament", which undertook the planning of the capital construction of war industry. The former Nazi admiral Meendsen-Bohlken was made head of this committee. This committee, like the department for assignment of military orders of the Bonn War Ministry, is swamped with work. Judge for yourselves: The Mannesmann Company is producing shell cases in its enterprises in Osnabruck. West German firms in Biegen and Weidenau are manufacturing large caliber artillery shells. In Pfaffenhofen, near Schwabach (Bavaria), an ammunition factory is under construction. Messerschmidt has undertaken the construction of a new aircraft plant in Essen, which will deliver 300 bombers monthly; four new plants in the suburbs of Stuttgart are being built by the Heinkel Aircraft Company. Work has been resumed on the enterprises of the Junkers-Werke GMBH, in particular at the Fieseler plants in Kassel, which turned out the FAU-1 rockets during the war. As the news- paper Frankfurter Allgemeine reported in October 1956, the colossal sum of 5 billion marks is foreseen as the cost of the establishment of the West German Air Force. It is planned to increase the military aircraft of the FRO to 5,000 planes within five years. Work is in full swing at the gigantic ship-building wharfs of Blohm und Voss, where the naval might of Hitlerite Germany was once established. The Daimler-Benz Company, Auto-Union and Porsche have received the order for the first 7600 motor vehicles for the resurgent Wehrmacht. Orders for the delivery of explosives have been divided among the pynamit A. G. Worm, Alfred Nobel and Wasag. Over 400 West German firms are now occupied in supplying the divisions of the Bundeswehr which is now being created. The gigantic smithy of war is in operation. The former war crimi- nals -- the 1:11.hr kings and those (doubly criminal) who aided them to rise and be reborn -- are again preparing a bloodbath for the peoples. What is this? Playing with blocks? No it is playing with fires "Chain Reaction" It was not long ago that the political travelling salesmen of the West European Union were praising the Paris treaties in every way, des- cribing them as a miraculous panacea for all ills arising from the rebirth -232- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 of German militarism, and as a hundred per cent guarantee against the arming of the resurgent Wehrmacht with atomic weapons and the production of nuclear weapons in West Germany. Not so much time was required for the fog of words to dissolve and the public found itself faced with the certain prospects of supplying the resurgent Wehrmacht with atomic weapons. The West German monopolies are already preparing to generate the monstrous potion of war in their atomic reactors. Such are the results of the chain reaction of the short-sighted policy of the Western powers who are promoting the remilitarization of West Germany. ,The Bonn seekers for revenge are already not satisfied with a "con- ventional" half-million army; they are creating an army equipped with nuclear weapons. A "total atomic armament of the Bundeswehr" (that is, the Wehrmacht) is necessary, it was announced, according to the West German newspaper Der Mittag, by General Heusinger, who is the head of the Bonn "Main Military Board". General Heusinger is echoed by another former Hitler general, Kammhuber, who is occupied in the military department at Bonn with the rebirth of the air forces. Kammhuber also feels that it is necessary to "shift the center of gravity to atomic and nuclear weapons". Realizing that an open violation of the Paris treaties would provoke a stormy and unfavorable reaction among much of the European public, the builders of the new Wehrmacht have fallen back upon a flank maneuver. The screen behind which this maneuver is being carried out is "Euratom". According to its organizers, "EUratom" ("EUropean Community of Atomic Energy") is to assist the west European powers in the peaceful use of atomic energy. But in Washington and Bonn, people are planning, with the aid of "Euratom", to circumvent those articles of the Paris treaties which prohibit Nest Germany from producing and possessing atomic and hydrogen weapons. This was obviously hinted at by the present Bonn Minister of War, Strauss, who until recently was the Minister of Atomic Affairs. He stated: "The time has come for us to undertake work to catch up with what Germany has let slip by..." In regard to the idea of "Euratom", Strauss significantly emphasized: "We regard any international or supra- national cooperation from the point of view of assistance, and not just from the point of view of control." The Ruhr monopolies greeted the birth of "Euratom." with unconcealed joy. The preparation of the declaration on "Euratom", in which West German representatives also participated, coincided with the beginning of negotiations between Bonn and Washington on the treaty, since signed, on "cooperation in the field of the use of atomic energy for peaceful purposes" and the creation of a Commission on Atomic Energy under the -233- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Bonn government. As a United Press correspondent frankly stated, the bilateral agreement between the United States and West Germany "has no relationship to the agreements on the peaceful uses of atomic energy, which were signed only for research purposes." Allen, a New York Post correspondent, reported that the United States is planning to deliver atomic weapons to West Germany. The French newspaper Figaro disclosed that West Germany will be given all rights within the framework of "Baratom" to produce atomic weapons. The functions of "Earatom" which were set up for reasons of camou- flage are already beginning to atrophy, even though this association has not even to begin to function as yet. The Western powers have in reality permitted Bonn to possess and produce atomic weapons, haVing by their deeds repealed the prohibitory sections of the Paris agreements. This took place during the negotiations between Guy Mollet and Eden in Paris and Guy Mollet and Adenauer in Bonn in September and October 1956 with the full approval of Washington. However, the chain reaction does not stop at this point. While Bonn and the Ruhr are asking for atomic weapons from the United States, they are also planning its production in the Federal Republic itself. The same general Heusinger stated significantly: "The Federal Republic -mmSt become more or less independent of the Western powers and if neces- sary begin the production of atomic weapons itself." According to the newspapers 21212211-1EaDjusilam and Frankfurter Allgemeine, the decision has already been made in Bonn to supply the Wehrmacht "with several types of atomic weapons" produced in West Germany. It was for just this purpose that a special atomic cartel was estab- lished as long ago as December, 1954, in West Germany, composed of six- teen large companies. Among them are branches of I. G. Farben -- Farbwerke Hoechst, and Bayer-Leverkusen -- and likewise Mannesmanne, Gute-Hofnungs-Hatte, AEG, Siemens, Krupp, and others. This cartel began functioning under the innocent name: "Physical Research Institute, Inc." But in reality, its creation and activity show the irresponsibility of the people who brought it to life. Let us cite only the British newspaper Sunday Express, which wrote that "soon the Germans will be producing the component elements of the hydrogen bomb. Krupp is the atomic boss." The rapid elevation of the chain reaction into official Bonn doc- trine was facilitated by a new heightening of international tensions caused by the forces of world reaction, headed by the United States, which launched aggression against Egypt and organized the Fascist putsch in Hungary. - 234 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 As far back as the session of NATO in Paris in December 1956, the participants in the session, supposedly to "harmonize" the military re- quirements and economic potentialities of the NATO members, passed a resolution on supplying the West German Armed Forces with atomic weapons. This in essence repealed the prohibitory articles of the Paris agreements. The game was played so openly that the incident managed to do without any plants for fig leaves. Not without reason, a member of the West German delegation, Felix von Eckardt, declared immediately after the ses- sion that the most important decision of this session was that "in a year or eighteen months the West German army will be supplied with atomic tactical weapons." Finally, at the May, 1957, session of the NATO Council, Dulles, acting in the name of Wall Street and the Pentagon, approved atomic arms for the Bundeswehr, on the basis of the principle of "equal opportunity". Thus, the demands of the Ruhr magnates, expressed by their mouthpiece, ' the newspaper Industrie Kurier, for a "just equality" was satisfied. The Bonn seekers after revenge, openly supported by Washington, are more and more openly beginning to play first fiddle in NATO under American direction. A dangerous process is taking place, which, in the cynical expression of Max Adenauer, son of the Bonn Chancellor and member of the "Board of Trustees of the RWE Power Company", signifies the "atomization" of West Germany. A further step in this "atomization" was the rejection in the Bundestag of a proposed amendment to the Constitution providing that legislative action in the field of atomic energy can have only peaceful purposes. "The Federal Chancellor has himself removed his mask," the West German newspaper Frankische Tagespost stated in this connection. Yes, the mask has been removed. The brutal face of West German militarism has appeared before the world, threatening it with the atomic bomb. Who is Holding the Reins of Government? Several years ago the then speaker of the House of Representatives of the United States, Joseph William Martin, went to West Germany to deliver a message of greetings from the American Congress to the Bonn Bundestag. The first visit he made was to the Ruhr region, to Essen, to Krupp. After the honored guest had inspected the Krupp factories, the cordial host Alfred Krupp gave a dinner in his honor at the Essener Hof hotel. Only then did Martin deign to go to the Bonn Bundestag, The American parliamentarian knew very well that the real power was concen- trated in the Ruhr. From here stretch the threads of the powerful bonds with the "federal capital" of Bonn. .- 235 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Thq_fpdpral chancellor Konrad Adenauer has long been connected with the largest monopolies of the Ruhr (the Rhine-Westphalian Electric Company, the banking house of J. G. Stein, the company Junkers A. G., the bank S. ,Qppenheim and Co. The Vice-Chancellor at Bonn, Bluecher, is among the direct,henchmen of the Ruhr steel companies. In 1953, Bluecher confiden- tially stated: "I am following an economic and financial policy in the inerests of German heavy industry". The Bonn Economics Minister, Dr. Erhard, former director of the Hitlerite Institute of Industrial Research, is a servant of the metallurgical companies of the Ruhr. Theodor Blank, until recently Minister of Defense of the FRG, is a large shareholder in the Thyssen Company. Furthermore ... But there is no need to go on. The West German monopolies are supporting the ruling parties in Bonn financially. Adenauer's party, the Christian Democratic Union, is fully supported by West German monopolistic and banking circles. The support of these circles played a decisive role in Adenauer's victory in the elections of September, 1953. In the 1957 elections, the monopolies threw several tens of millions of marks on the scales in favor of Adenauer. The President of the Union of German Industry -- the real government of West Germany -- Fritz Berg, significantly declared: "The opinion that an industrialist should be concerned only with his own enterprises and must not participate in politics has fallen into oblivion." Berg was hardly blazing a new trail. The West German monopolies are not only "participat- ing" in politics; they direct them and steer them in their own mercenary interests. Recently the monopolies have enjoyed considerable favor from one of the parties participating in the government coalition, the German Party -- the party of Junkers, big capital and former Nazis. A brief rejoinder by Schacht is sufficient to describe this party: "I am in agreement with the program of the German Party." The creditors of the German Party are: Reemtsma, the owner of the Hamburg Tobacco Company, who was formerly a close friend of Goering and who financed the Nazis: the oil company Hochbau-und Erdolgeselschaft S. Deichmann; and, of course, Krupp, who has alreacly contributed 18,000,000 marks to this party's treasury. * -* On 10 August 1952, with due ceremonies, the signing of the treaty on the "European Coal and Steel Community" took place. On the day that this aspociation began its activities, its head, Monnet, cried with emotion: "There is no longer any German coal or French steel, there is only EUropean coal and European steel." -236- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 In reality, German coal has remained German, but French ores have begun to be cast not into European steel, but into German steel. It developed that Belgian and Dutch coal are likewise faced with the danger of being converted into fuel for the Ruhr military smithy. ? Who gains from the "European Coal and Steel Community"? Here is what the French newspaper Combat wrote on this point: "If one examines the decisions made by the community since it was established, one must note with surprise that they are nearly always to the benefit of Germany alone". The newspaper expressed fear that the "European Coal and Steel Community" would fall under German domination. There is every reason to have such fears. Even before World War II, the Ruhr industrialists proposed the idea of an international cartel which is so similar to the "Schuman Plan" that they are like two drops of water. According to this "idea", the interna- tional cartel was to include Great Britain, France, Belgium, and Luxembourg in addition to the Ruhr. Since the Ruhr was the industrial core of the cartel, the proposers of this idea gave it the central and dominant role. Therefore, when the "Schuman Plan" appeared, on the basis of which the so-called "European Coal and Steel Community" (ECSC) was established, the Ruhr magnates joyfully greeted it for many reasons. According to the French journal Usine nouvelle, the "European Coal and Steel Community" is helping the seven old large steel and coal groups of the Ruhr, divided into 41 separate companies, to join together again. West Germany "did not limit its freedom by joining the ECSC," states this journal, "it gained it again." "Lebensraum" Again The return of the West German monopolies to the world capitalist market is intensifying the contradictions between the imperialistic powers. As far back as the beginning of 1950, Dr. Hjalmar Schacht, war crim- inal and former financial adviser to Hitler, demanded in his "financial letters" "the participation of Germany in plans for colonial development." On 10 March 19530 at a meeting of representatives of industrialists in Kassel, Franz von Papen proposed the incorporation of the countries of Latin America and of the Near and Middle East into the "sphere of inter- ests" of West Germany. The expansion program of the West German monopolies underwent special discussion at a meeting of West German industrialists at the end of January, 1953, which was held in Dusseldorf on the occasion of the -237- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 opening of the bank Schacht and Co. Among the three hundred participants in the conference were Schacht, von Papen, Hugo Stinnes, Heinrich Dinkelbach and other captains of West German finance and industry. The Dusseldorf conference worked out a broad program of action. Here it is: continuing close cooperation with the American occupation authori- ties, support of the Adenauer government, an attack on the rights of the labor llama by cooperation with the leadership of the unions, an increase in the export of capital, primarily to countries where it may be possible to squeeze out British and American influence, an increased financing of political parties supporting the realization of these goals, an intensifi- cation of the struggle against the Communists and Social Democrats with the aim of excluding them from public and political life, and so forth. :In proposing a toast at the Dusseldorf banquet, the "financial genius" of Nazi Germany, Hjalmar Schacht, declared: "The time has come again when we can enter the southeast area extending from Sarajevo to Japan." Not long before this, Schacht himself had crossed this very area. He visited Spain, Iraq, Iran, Egypt, Indonesia, India, and other coun- tries. His trip had the aim of renewing the old ties of the German monopolies and to pave the way for increasing exports of West German capital. It was just after his trips that he established the Schacht and Ludwig Bank in Hamburg and the Schacht and Co. Bank in Dusseldorf. Together with big industrialists and junkers, Schacht established a neW West German financial group. Why? To strive for a place for West German monopolies in the imperialistic exploitation of the "underdevel- oped" countries and the colonial and semi-colonial regions of the world. The West German monopolies, the true rulers of the FRG, have long and insistently demanded that Bonn provide favorable conditions for the development of the economic war against their American and British competitors. It would not be without interest in this connection to describe the so-called "founders dinner" held in February, 1954, in the Bremen city hall, which was attended by two hundred representatives of West German industrial and banking capital and overseas trade and ship- ping, as well as by representatives of the Bonn government, headed by Chancellor Adenauer. Who were these founders? According to the news- paper Bremer Nachrichten, they were the Nazi bankers Pferdmenges and Abs, von Siemens -- the owner of a military firm, Alfred Krupp, Muller - the general manager of a joint insurance company, Dr. Hilpert -- the chairman of the Board of the Railroads of the FRG, Dr. Konecke -- general manager of the Daimler-Benz A. G., Schmitz -- General Manager of Ruhrstahl A. G., Dr. Dubbers -- representative of the Hanse Shipping Company, Butschkau -- President of the Association of West German Savings Banks, -238- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 von Waldtha45en representative of the Reinische Stahlwerke Company, and other finanqial bigwigs and industrial magnates. Among the demands submittedto Adena4er at this dinner, 41 prominent place was given to the doubling of the tonnage of the West German merchant marine and the fur- ther development of foreign trade. The Federal Chancellor/ making his reply,, assured the "founders" that their, desires would be carried 014t. And they are being carried out. The American and British monopolies, which assisted to a consider- able extent in the restoration of the military industry potential, are now fearfully feeling the "cold breath" of German competition. There is no reason to doubt that, as time goes by, this breath will become colder and colder. Along the Old Route Not long ago, industrial and financial magnates arrived from all over West Germany at Landsberg Castle, near Mulheim (Ruhr), which belongs to the Thyssens, a dynasty of Ruhr steel kings. It was also attended by former Hitler "leaders of military economics" Wehrwirtschaftsfuehrer and representatives of the Bonn government headed by Dr. Lehr, at that time occupying the post of Minister of Internal Affairs. Over two hundred guests assembled at Landsberg Castle. What took place there on that day, 8 February 1953? The remains of August Thyssen, who had died in Buenos Aires and who had been head of the great German steel trust Vereinigte Stahlwerke were being entombed in the castle mausoleum. That is how the society news reported this assemblage. But if one judges by other information, the two hundred gentry gathered in Landsberg Castle for a reason far different from that of merely kissing the relics of their master, who died in remote Argentina. The ceremony of Thyssen's funeral was merely a seemly pretext for the Ruhr kings and the still armed Nazis to discuss matters far more important than the obsequies. Information which leaked out in the press shoved that a program of action for resurgent German imperialism was discussed at Landsberg Castle. The newspapers could not fail to notice a remarkable coincidence. The membership of the group which assembled in the castle was almost the same which worked out the plans for the transfer of power to the Nazis in 1932 at a conference in Dusseldorf with the participation of Hitler. Krupp, Flick, Dinkelbach, Stinnes, Papen -- all these faces were familiar. The events which developed after the gathering at Landsberg show that this time a plot was again hatched against the German people and their vital interests. The rebirth of the Wehrmacht and the general staff of this wasp's nest of Prussian militarism, the banning of the Communist - 239 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Party of Germany, the persecution of democratic forces, wild plans for 'eatablishing a "Teutonic Empire" from the Straits of Dover to the Urals -- sUOI are the new stages on the old route which the myth-makers of the twentieth century are dreaming of taking again. But today, in the second half of the twentieth century, new winds are blowing at the old international crossroads. These winds are strong enough to disperse the smoke swirling over the smithy of war. ? -240- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 The yar-Oriminal Company. A. Galkin Early in the summer of 1955 an epidemic of typhus suddenly broke out. The first signs of the epidemic were noted in the center of the Ruhr, in the city of Hagen and the surrounding area. More than fifteen hundred cases were reported0 phus occurs rarely in West Germany; a typhus epidemic in peacetime quite exceptional. The physicians undertook urgent investigations to determine the source of the infection. The evidence led them to the laboratory of the chemical factory in Wuppertal-Elberfeld. It developed that for several years, at the order of the management of I. G. Farben, typhus microbes were being cultivated. What for? There was one answer -- for war, for new crimes against the peoples. ' The German chemical company, I. G. Farben, is one of the monopolies which is preparing an imperialistic predatory war and helping to conduct it. The letters "I. G." in its name mean in translation from the German, "community of interest". The history of this company shows what kind of a "community" it is and what interests it has. They are the interest of predatory German,monopoly capital, and the community is born of a joint striving towards enslaving and robbing not only the German people but also the peoples of other countries. when, in 19470 the trial at Nuremburg of twenty-three leaders of this firm began, the indictment in their case made up a whole library. One after another of these documents were read at this trial. They un- masked the company in the preparation of the imperialistic war, the rob- bery of whole countries and the enslavement of hundreds of thousands of people. I. G. Farben stood exposed before the whole world in all its ugly nakedness. Even among large monopolies, the I. G. Farben is outstanding because of its unprecedented size. On the eve of World War II, the company had 177 plants in Germany; 200 plants abroad were owned by it or were under its control. In central Europe it had practically no competitors. It manufactured everything, from dyes to nitroglycerin and Lewisite. Of the 43 major chemical products produced by the company, 28 played a decisive role in supplying the army, air force and navy. I. G. Farben developed a system of producing synthetic liquid fuel for aircraft and tanks, and achieved the production of a most important type of strategic raw mate- rial, synthetic rubber. With its vast financial resources, I. G. Farben played a decisive role in Germany's political life. Everything that took place in the country depended in a large part upon its will. Together with the steel trust Vereinigte Stahlwerke, the magnates of I. G. Farben brought German Fascism to power. - 241 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 ? ft... We hope that our words spoken today will be converted into reality, and that a powerful man will be found who will create a general platform for everyone ... for such a man is always necessary for us, Germans, as Bismarck was necessary in his own time." This was said at the beginning of the 1930's by the head of the com- pany, Duisberg. Soon the "powerful man" was found. His name was Adolf Hitler. He was supplied with money to maintain armed detachments and to conduct election propaganda. Among those who gave him these funds, one of the most generous was the I. G. Farben. Its first contribution to the treasury of Fascism amounted to 300,000 marks. It is not surprising that, when he became "chief of state", Hitler did everything that the company found necessary. I. G. Farben was ad- vanced enormous credits -- billions of gold marks. The general manager of the company, Krauch, received a high position in the Economics Ministry. The largest stockholder in the company, Bosch, was appointed to the Armaments Council. Using the government of Fascist Germany for their own interests, they obtained military orders for the company. The war in Europe was prepared and started at the order of the monopolies among which I. G. Farben occupied a' leading position. When Hitler invaded the Sudetenland, the management of I. G. Farben sent him the following telegram: "Deeply moved by the return of the Sudeten German territory to the Reich the I. G. Farben Company places at your disposal half a million Reichsmarks". The transaction was a profitable one; the half a million brought in enormous profits. I. G. Farben, its managers and employees fully supported and ap- proved Nazi aggression against Poland, Czechoslovakia and France. I. G. Farben "received great gains from these conquests", a member of the board of the company, Kupper, acknowledged under questioning. In the occupied countries, the I. G. Farben company seized stock, plants, and trusts. In Austria, after its seizure, the company "pocketed" the chemical trust Pulverfabrik Skoda-Werke Wetzler. This operation was carried out by the director of the Foreign Branch of the company -- its "minister of foreign affairs", Max Ilgner. In Czechoslovakia, I. G. Farben swallowed the company Aussiger Verein, the fourth largest chemical company in Europe. The robbery was carried out by the managers Kugler and Wurster. In France, I. G. Farben laid its hand upon the Kuhlmann, Saint-Denis and Saint-Clair-du-Rhone companies. One of the magnates I. G. F., von Schatzler, played the decisive role here. Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 By the end of the war, the I. G. Farben company included 380 German firms and 500 foreign companies. It was capitalized at not less than six billion marks. The stockholders' profits were accumulated upon the bones of millions of people. Slaves from the East worked in its factories and plants. They were forced to work with tremendous effort. When some of them died, other doomed persons were driven in to take their place. In its quest for cheap labor; the company established its plants directly in the death camps. One of the plants was located in Oswiecim. The prisoners working there served as the subjects of brutal experiments. In its laboratories was created one of the most powerful toxic substances -- the death-dealing gas "tabun". To determine the effectiveness of this gas, the company's management ordered that it be tested upon the prisoners in the camp. Dr. Fritz ter Meer, a member of the management of I. G. F., was later asked whether it was possible to defend performing these experiments upon living people. Ter Meer explained in cold blood that it made no dif- ference to the prisoners what they died from -- from beating or from gas. The company was directed by a small group of administrators and large stockholders. It was called the "council of the gods". After the defeat of Fascism, this "council" was put on trial. The list of the defendants included some persons known to the whole world: ,Hermann Schmitz -- chairman of the board of I. G. Farben and successor to its deceased head, Duisberg; his nephew, Max Ilgner, member of the board and financial director, head of the I. G. Farben's spy net- work abroad, the organizer of the seizure of foreign enterprises, inveter- ate Fascist, bosom friend of Goebbels; Hoerlein, member of the board of the company -- organizer of the production of poison gas, immediately responsible for the death of hundreds of prisoners used in the brutal ex- periments; Otto Ambros, member of the board, Chief of the Toxic Substances Branch of the Nazi Ministry of Armaments, and Director of the I. G. Farben plant in Oswiecim. Behind these "leaders" came Fritz ter Meer, Butefisch; Gattineau; Gajewski, directors, managers, consultants, and so forth. The defendants' guilt was proven in the trial with great completeness. The peoples expected that they would be given severe sentences. But they were deceived in their expectations. "The council of the gods" had nothing to fear -- because it was tried by an American military tribunal. All the defendants were found not guilty. -243- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Formally, the Io G. Farben company was reorganized and broken up into its component parts. The most important of these were Farbenfabriken Bayer in Leverkusen, Farbwerke Hoechst in Hoechst, Badische Anilin-und" Sodafabrik in Ludwigshaveno But the company's reorganization was carried out so that its owners suffered no losses. The I. Go Farben shares which were in the hands of large shareholders were exchanged for stock of the new companies. The managership of the plants was transferred to "reliable hands". The old directors moved from the defendants bench directly to armchairs in the managements of new companies. How is this to be explained? By the role of the American and British monopolies. For them, I. G. Farben was a business brother. Its cartel ties with British and American trusts were always exceptionally close. These ties explain the fact that at the end of the war, as a re- sult of the highly advertised American and British bombings, only 15 .per cent of the synthetic rubber production capacity of I. G. Farben was destroyed, and only ten per cent of its production capacity for explosive*. ? The intertwining of American and German monopoly capital can clearly be seen from the example of the Io G. Farben company. The company owned forty per cent of the shares of the Ford Motor Company in Germany. Its management included the chairman of the board of I. G. Farben0Carl Bosch. The son of the founder of the automobile empire, Henry Ford, be- came a metber Of the board of directors of the American branch of I. G. F. Edsel Ford, which was given the name American I. Go Through its Swiss branch -- the I. G, Chemie -- the German chemical octopus owned the large chemical company General Aniline and Film Corpora- tion in America. The Rockefeller oil company, Standard Oil of New Jersey, which at one time supplied about half the German oil market, had a cartel agreement with I. GoiFarben. The management of this company's branch in the United States -- American Io G. -- included Walter Teagle, Chairman of the Board of Standard Oil and the New York banker Po Warburg. In ad- dition, two special companies -- standard I. G. and Jasco -- were estab- lished in the United States on the basis of an agreement between Standard Oil and I. G. F. In October, 1939, after the war in Europe had begun, a representative of Standard Oil, a 'certain Howard, came to a special con- ference in Urope to find means of carrying out the cartel agreement be- tween I, G. Farben and Standard Oil under wartime conditions. The confer- ence, which took place in Holland, ended in full agreement. As Howard stated later, the representatives of the American trust came to an agree- ment with the representatives of the German chemical concern on the division of the profits after the waro I. G. Farben had close cartel ties ever since 1932 with the largest British monopoly, the Imperial Chemical Industries. -2 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 The years since the breaking up of I. G. Farben represented a period of new upsurge for this giant chemical company. "A new page has been written in the history of I. G. Farben" stated the West German economic weekly Volkswirt in the middle of 1955. By that time the successor- cempanies to I. G. Farben and the firms subordinate to them possessed over 85 per cent of all the stock in the chemical industry of the Federal Republic ot Germany. Each year this chemical company is expanding in domestic and foreign markets. The volume of production has grown signifi- cantly. In 1945 only 800 workers remained at the plants of the Badische Anilin-und Sodatabrik? the largest component part of I. G. Farben. In 1951 it had reached its pre-war magnitude in the size of its labor force -- 26,500 workers. In August 1955, according to official figures, there were as Many as 36,000 workers. More than 36,500 persons are now working in the plants of Farbenfabriken Bayer and over 28,000 in the enterprises of Farbwerke Hoechst. Official prospectuses claim that I. G. Farben in its present stage is interested only in peaceful production. But even in the FRG nobody believes these statements. As far back as 1948, the explosion which took place at the I. G. Farben plants in Ludwigshafen revealed one of the company's secrets. In violation of existing laws, the company was even then producing fuel for military rockets. Since the Ludwigshafen explosion, military production at I. G. Farben plants has developed on a significant scale. Demolition explosives are again being produced by the Dynamit A. G. plants of the I. G. Farben group. A factory manufacturing phosphorus for incendiary projectiles has been built in Hoechst. I. G. Farben was one of the initiators of the West German association for financing atomic research. Hundreds of specialists are creating new types of war materials in the I. G. Farben laboratories. Three hundred million marks are spent annually for this purpose in Hoechst. In Leverkusen, 1,400 research engineers are doing such work at the Farbenfabriken Bayer. "If some sceptics claimed," wrote the bourgeois Frankfurter Allgemeine in the middle of 1955, "that the separate fragmented companies would not be able to attain the research level that was characteristic of the old I. G. Farben company, such doubts have now long since passed." Time has effected some changes in the personnel of the management of the concern. But one can still meet persons in high positions closely allied with the recent past. The chairman of the board of Badische Analin-und Sodafabrik is the same Wurster who robbed the Czech factories. Otto Ambros, well remembered by the prisoners of Oswiecim, has a position in the inspection council of the Trostberg Hydrogen Plants, Ter Meer is representing I. G. Farben on the board of one of the largest West German banks. - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 From thevery first day of the supposed splitting up of the company, the successors of 10G. F'arben have in reality acted jointly. The "council of the gods" has been established again. As in earlier times, it has considerable influence in determining the policies of West Germany. "When an industrial group controlling a production capacity worth over ten billion marks," said Industriekurier, the newspaper of West German industrial circles, "is making its economic and political demands, there is every reason to study them with especial attention." The nature of _these demands is shown by the policy of the present ruling circles of the FRG, who have converted West Germany into a major bulwark of the "cold war" in I.irope and into a breeding ground for militarism and the desire for revenge. Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 The Generals Return . O. Nakropin_and Melgnikoy The last German Kaiser, Wilhelm II, once said: "I shall order that a revolver and a sabre be placed in the cradle of every small boy So that fature soldiers will become accustomed to their trade from their earliest age." In a figurative sense it can be said that this did take place on the estates of the landlords and junkers in families which, from genera- tion to generation, provided officers for the Prussian, and later the German, army. Portraits of grandfathers and great-grandfathers in uni- form and wearing decorations such as those of the Franco-Prussian War or for helping crush the 1848 revolution, family relics, weapon collections in fathers studies, customs and amusements of elders -- the whole envi- ronment and the entire manner of life from childhood here trained the future member of the Prusso-German officer caste, who would smugly and haughtily scorn all that was not military. Bismarck had the scions of such families in mind when he said: "We Prussians are all born in uniform". In such a way, "in uniform", were born the majority of those who now head the west German bundeswehr. Their youth was spent in the last years of the Hohenzollern dynasty. As boys, the future generals heard the adults exchanging reminiscences of the victories of German arms at Koniggratz or Sedan, and enthusiastically recounting the bloody exploits of the German Expeditionary Corps in China which dealt with the Boxer Rebellion of 1899 - 1901. As time went by the toy sabre was replaced with a real one. * * * For Adolf Heusinger this moment came when he was seventeen years old. Today he can say that his life was not lived in vain. The Heusinger of 1957 is a Lieutenant General, chairman of the Main Military Board of the West German War Ministry, a body which is a slightly camouflaged general staff. The general is carrying on the work of famous field mar- shals; his heels were deemed worthy of the spurs of the great Helmuth von Moltke the first to head the General Staff of the German Empire. While Heusinger and boys of his age were still Fahnenjunker with hair only beginning to appear on their upper lip, one of Germany's most outstanding military theoreticians, General Friedrich von Bernhardi, gave them these parting words: "A virile man needs only to glance at a sword, and to ponder its purpose and its frightful action, to convince himself that war by itself is a divine task, as worthy and necessary as food and drink". From that day to this, Adolf Heusinger, so to say, contemplates -247 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 the sword with the eyes of a "virile man". The world outlook of today's West German generals was formed under the influence of mentors such as Bernhardi. It was formed in a time when it was announced again and again that the "German mission" was to save the world from all its Alls in the atmosphere of chauvinistic intensity and militaristic debauchery which preceded World WarI in Germany and accompanied its outbreak. "The ancestors who have gone before" -- the leading figures among the German militarists, such as Moltke and Schlieffen, and after them Ludendorf Hindenburg :and others of their successors of the time of World War I, insisted that the German army by its very nature was destined to conquer all its opponents and that victory would certainly come with lightning speed. Did the future strategist wonder why the idea of a "Cannae" proposed by Schlieffen failed -- this swift movement consisting of the outflanking of the "main army" of the enemy and its destruction in one short battle? 14,11y was it that, after four years of bitter, sangainary slaughter costing Germany 1,800,000 dead, the "best army in the world" With "the best officer corps in the world" and "unsurpassed" , commanders was forced to surrender ignominiously? Such a question would have been natural not only for the young officer Heueihger. The biographies of the West German generals was similar t9 on ,w-lothar9 and they are all closely tied to the history of German _militarism over the past four or five decades. The present Lieu enant Geheral Josef Kammhuber, heading the Aviation Department of the RG -War Ministry, has been in the service since 1916. Vice-Admiral Friedrich Rage, head.ofthe'Naval Department, first put on a uniform in 1914. Hans Rottiger, head of the Infantry Department, was already a senior officer at that time. Hans Speidel, Paul Hermann, Gerhard Matzky, and nearly all the other generals in the West German Army, totalling over thirty by the end of 1956, began their careers during World War I. If for no one else, the war's disastrous outcome should have provided these men with ample food for thought. What did it amount to? After the victorious fanfares of the first weeks of the war -- Verdun and 'Marne, and later Pskov -- instead of a "Cannae" came months and years of trench warfare with all the luxuries of trench life, and finally the bitterness of Compiegne. Did not the young people who so passionately believed in the invincibility of the German sword and the infaliabAity of their authorities find in this the shattering of all their illusions and a reappraisal of all their values? , No, they did not do so. From the point of view of the German military caste, all this was explained very simply. The army was good. The strategy was above criticism. The prowess of the soldiers had no equal since these soldiers Were ourselves. It may be that some mistakes were allowed -- well, lei us say, the plans of the genius Schlieffen were not carried out sufficiently punctually, or the "spirit of emulation" 2/48 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 was not sufficiently shown, as Groener, the Minister of the Weimar Republic's Reichswehr later argued, seeking to defend the strategy of the German General Staff. But in the final accounting, this also was immate- rial. The main reason for the defeat was that the army, as it turned out, was "stabbed in the back". While they were fighting for "a place in the sun" for Germany, the "vile traitors", "defeatists" and other "sedition- aries" were busy undermining all the foundations. In November 1918, they perpetrated in Germany -- just imagines -- a revolution. We must give the leaders of the German militarists their due; they quickly adjusted to the new situation. They were preoccupied with only one thought -- whatever else happened, regardless of the military catas- trophe, the severe conditions of the armistice and the collapse of the Hohenzollern empire -- to preserve the army, this "supreme gift from Prussia to Germany", as the former Imperial Chancellor, Furst Bulow wrote shortly before the end of the war. The militarists saw the the Kaisers goose was cooked. And if this was the case, why then, let the Kaiser go -- as long as the generals remained. Thus, the generals, representatives of the most aristocratic families and for centuries reputed to be the support of the throne, and for whom the rightist Social Democratic leaders like Ebert and Scheidemann were for so long "contemptible Red riff-raff"? suddenly shipped the "divine monarch" off into exile and came to an agreement with the new, republican, Social Democratic government. The military units recalled from the front were sent to defend this government and to suppress the revolutionary workers who were demanding that the revolution be carried all the way through and that a truly democratic system be established. The militarists foully murdered Karl Liebknecht and Rosa Luxemburg. Thousands of officers came straight from the army and joined the so-called "free corps", illegal and semilegal organizations which dealt with the revolutionaries in Upper Silesia, Bavaria, and Hamburg. The military clique earned for itself the right to cultivate its traditions with impunity during the Weimar Republic and to prepare as much as it could for a return of the "glorious times". It was at this point that the real military training of the generals of the present generation began. They underwent it in the holy of holies of German militarism -- in the General Staff, disguised under the title of "Troop Department of the Ministry of the Reichswehr". In the future they were to find extremely valuable the experience which they gained during their years of work under the direction of such outstanding spe- cialists in secret rearmament as General Groener and Field Marshal von Seeckt. The Treaty of Versailles prohibited Germany from maintaining an army, with the exception of the Reichswehr, composed of volunteers and totalling not more than 100,000 men. It did not permit it to have any aircraft, battleships, heavy artillery, tanks, or armored cars 249 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Heusingerls superiors and colleagues quickly found ',rays to circumvent these bans. In 1921, Seeckt the commander of the Reichswehr, presented in a special Memorandum his "basic views on the structure of the armed forces". Each division was to be set up so that it would be possible to double or triple its strength by means of enrolling additional volunteers. Under the conditions of that time, no shortage of volunteers was foreseen; in addition to the official Reichswehr? there existed an illegal "black Reichswehr" which incorporated the volunteer officers' corps. By the time that it was dissolved in 1923, the "black Reichswehr" contained 250,000 persons; after us dissolution, the majority of them joined the storm troops of Hitler and Rehm. The training of ?the troops, said Seeckt, should be carried out accord- ing to i program whereby forbidden types of armament could be incorporated as Soon as an'order was given. The Reichswehr was regarded as a nucleus around which p powerful env could be built in a minimum of time, suffi- cient, as Seeekt wrote, to strike a "direct blow at the heart of the enemy" before the latter was able to complete his mobilization. Elaboration in detail of these principles, which were essentially nothing but directives on ,preparing surprise attacks against other coun- tries and on aggressive war, was the concern of the present-day leaders of the Bundewehr? who were then sitting in various divisions of the Ministry of the Reichswehr and its Troop Department. Heusinger was en- gaged to work in the camouflaged General Staff in 1927, and Kammhuber in 1928. Also working there were Rottiger, who participated in the secret establishment of armored tank troops, 'Rigel who submitted plans for the , creation of a large navy, Matzky, the present Major General Laegeler, and a number of others. The members of the German General staff are described by the British military historian Wheeler-Bennett as "limit- lessly ambitious people who knew and did their work excellently, unscrupu- lous mercenaries and soldiers who were interested in nothing except their carers, power and influence. They were ready to follow anyone as long as he gave them high command posts, gave them a chance for personal ad- vaneement0, and provided an opportunity for military undertakings. For these shameless adherents of a policy of force, rearmament and the col- lateral eh'ects of war represented only a basis for their own careers." * * * '"The opportunity for military undertakings" was provided by Hitler. His coming to power was a welcome event for those who were biding their time in the building on Bendlerstrasse in Berlin, where the highest military establishments of Germany were located. A whole new era opened up in the lives of the future generals, and, what was especially impor- tant for their role in the Federal Republic of Germany, during this era they acquired further and higher qualifications. While during the Weimar -25(1- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Republic they had mastered the art of the secret violation of interna- tional treaties, they passed a visual training course under Hitler in the methods of openly and rudely trampling upon such treaties. The stages by which Hitler violated each and every international agreement are well known. Each of them was preceded by intense and feverish activity in the military staffs. Such of the leaders on Bendlerstrasse who were for some reason unwelcome to the "Fuhrer" were simply eliminated by him; some became the victims of the bloody reprisals of the "Bartholomew's Massacre" of June 300 1934, such as Generals Schleicher and Bredow, while others were removed without bloodshed, such as Field Marshal Blomberg and General von Fritsch. In any event, the present leaders of the West German Bundeswehr were not among the few rep- resentatives of the military circles of Hitler's Germany whose opinion did not fully agree with that of the Nazi high command. With the zeal peculiar to them, they prepared for the introduction of universal mili- tary training, which was announced in March 1935, prepared the introduc- tion of troops into the Rhine demilitarized zone in the spring of 1936, established a million-man Wehrmacht, prepared measures to aid the Franco rebels in Spain, and worked out plans for the annexation of Austria in 1938 and the seizure of Czechoslovakia in 1939. They were preparing World War II. For the "unscrupulous hirelings", each stage of Hitler's aggression meant new titles and medals, new command posts, further steps in their careers, an increase in authority and a broadening of influence. Lieutenant colonels became colonels, and colonels became generals. The wildest dreams came true. A festive occasion took place on Bendlerstrasse in the summer of 1935; Hitler, continuing to violate the Treay of Versailles, officially reestablished the General Staff. Heusinger became "his excellency"; he was a senior officer and soon chief of the Operations Branch of the Main Infantry Command. It was here, in his division, that the plans were worked out for the invasion of Poland, Belgium, France, Holland, Denmark and Norway. The notorious "Barbarossa plan" was worked out under,his immediate supervision. "Lieutenant General Heusinger was indispensible to the Fuhrer," was the comment on the present chairman of the FRG's Main Military Board made by General Zeitzler, former Chief of Hitler's General Staff. The same could be said of his colleagues. The aviator Kammhuber proved to be truly invaluable as chief of staff for Hermann Goering, who was reckoned the supreme commander of the Air Force of Nazi Germany. It was this same Kammhuber who drew up the order to bomb Warsaw in September, 1939. In May of the following year, he was given an assignment of partic- ularly high trust. The bigwigs of the Nazi Reich needed to find a pretext for terroristic air attacks on cities in Great Britain and France. How- ever, enemy aircraft were not even appearing over Germany. What could be done to avoid the blame for launching aerial attacks against the peaceful -251- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 population? A way out was found with Kammhuber's assistance. The Chief of Staff Of the Supreme Commander of Germany's Air Forces ordered the Third Group of the .51st Bomber Squadron to carry out a raid on -- the German city of Freiburg. On May 11, the order was carried out. The popu- lation was told that the bombs were dropped on Freiburg by British air- craft, and the Goebbels propaganda machine received the opportunity to describe the destruction of British cities as "revenge". At present, the leaders of the North Atlantic Bloc and its armed forces, which includes the West German Bundeswehr, value especially highly the "eastern experience" of the German generals. It is possible that the fact that they were defeated by the Soviet Army is considered a guarantee of Alturelrictories. However, one point cannot be doubted: the signifi- cance given to "eastern experience" in the higher echelons of NATO proves one thing. It gives away the true aims of this aggressive grouping. Ilnz experience which the Hitlerite generals gained in the East has some unusual features. .t8oOn after Hitler's attack on the Soviet Union, Rottiger was ap- pointed Chief of Staff of the 4th Army, on the Soviet-German front. Later, when he was examined at the Nuremberg trial of Hitler generals, he stated: "According to the, orders given in line of duty, only a few prisoners were taken." Rottiger continued: "In the course of carrying out my duties I had several occasions to wage warfare against bombs," that is, to deal with partisans. Later, beginning in the fall of 1943, General Rottiger continued. parrying out the same duties in Italy, where he turned up in the post of Chief of Staff of Army Group "C". The military command of Hitler Germany, whose representatives are now commanding the Bundeswehr, conscientiously helped the Himmler thugs of the SS and the "security service" to decimate the population of tempo- rarily occupied areas. "Heusinger readily agreed to transfer to the 'security service' some military units to reduce the Slavic and Jewish population," SS Brigadefuhrer Ernst Rode has testified: "I always have felt personally," Heusinger himself stated at the same trial in Nuremberg in Deceml?er 1945, "that the methods of treating the civil population and of fighting the bands (read this as "partisans") in the operations zone provided the highest political and military command with a long sought opportunity to realize its aims, to reduce systematically the Slavic and Jewish people." When Robert Kempner, the chief American prosecutor at this trial, wanted to clarify what the word "always" meant and asked Heusinger to specify the time that he first began to have this point of view, Heusinger replied without hesitation: "Since the fall of 1942"o In other words, Heusinger definitely came to his conclusion on the "desirability? of exterminating the population of the Soviet Union at the time that the Hitler hordes were rushing toward the Volga and the -252- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 and the gentlemen of the Bendlerstrasse (although their information did not come from Goebbels' articles, according to which the Soviet Army no longer existed, but from more trustworthy sources) thought that this time they had really gained the victory. The Bundeswehrgs generals also have another kind of experience, which is very important to the NATO leaders. This is experience in deal- ing with recalcitrants. This is especially important for them now because the resistance of the masses to aggressive plans is growing everywhere in the world. For these leaders it is essential that the Bundeswehr be Com- manded by persons capable of shooting and hanging even their own fellow- countrymen. The present-day West German generals proved that they had such ability even in their youth, when they participated in crushing the November Revolution. They demonstrated it amply under Hitler. At the beginning of 1957, General Walter Werck was proposed as the Bundeswehrgs commander. In the early days of the war, when Werck was on the staff of Guderiangs tank army invading France, he succeeded in having four German officers courtmartialed because their "unduly mild handling of the civil population put the further advance of the German forces into jeopardy." During the last years of the "thousand-year Reich", Werck, who had by then enter4d the inner circles around Himmler and Hitler, drove fifteen to seventeen year-old boys into battle after he had recruited them into "Hitler Youth" organizations and labor conscription camps at the time the notorious Twelfth Army was being formed. This army was ordered to perform a miracle -- to break into Berlin through the circle of Soviet forces surrounding it in order to save the "Fuhrer" and the other resi- dents of the cellar of the Imperial Chancellery. When the miracle failed to take place, General Werck abandoned the boys who were still alive and whom he could not take along and left them to find their own way out, while he himself surrendered to the Americans. It was not without reason that it was pointed out, when Werck was proposed for the new position, that he would be able to "carry out the necessary firm policy in creating the Bundeswehr and training of the troops". He was "the best person in case the Bundeswehr were unexpectedly called upon to carry out actions in internal affairs, which was within the realm of possibility" -- such was the description given him by the person who nominated him. Paul Hermann and Gerhard Matzky are noted for the same "firmness". At the very end of the war, the former, with his 264th Infantry Division, and the latter, heading the 26th Arty- Corps, were pinned against the sea by the Soviet Army in the Baltic Area. Before abandoning their troops to their fate and fleeing to the West, they executed for "cowardice" and "desire to surrender" dozens of soldiers and officers of a force wilich was in a hopeless situation. 253 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 General Hans Speidel is considered to be one of the most active of the West German military commanders. When the "Main Military Board" was being established in the Bonn War Ministry, he was assigned the especially responsible position of Chief of the Combined Forces Division, coordinating the activities of all types of troops. "A general of a new type", as Speidel is called in western military circles, he has an origin and biography slightly different from those of most of his colleagues. Instead og wearing a military uniform, his father wore the gown of a scholar. He was a professor at the University of Tubingen, one of those who falsified s-pience, altering it to support German imperialism's claims to domination over the world. Evidently, the family tradition of "humani- tarianise_left its mark on the character and interests of the young man. It to true that Hans Speidel at the age of seventeen also enrolled as a volunteer in one of the Kaiser's Guard Regiments, and that after World War I he also served in the Reichswehr. But in contrast to many of co- workers, he, so to speak, was not a stranger to education. Reichswehr officer Speidel spent his free time in the halls of the same university in which Profespor Speidel taught. In 1925, he defended his thesis and became a Doctor of Philosophy. Dr. Speidel set out to travel. He wandered about the halls of the Louvre, contemplated the beauties of nature in Switderland and the magnificent ruins of the Colosseum, went across the Straits of Dover and crosees1 the, Atlantic Ocean. In 1933, the new Nazi government decided that the well-travelled officer was suitable for work abroad; Speidel was appointed Assistant Military Attache in Paris. His real career be- gan-two years later; Speidel left the banks of the Seine to head the 4FOreign Armies of the West" Branch in the supreme headquarters of the German a/vied forces, or, in other words, to undertake the direction of military espionage against the present allies of the FGR in NATO. In 1940 he again appeared in France -- this time as Chief of Staff of Hitler's occupation forces. Now he prepared orders "in line of duty" to? shoot French hostages and to deport peaceful residents to the Himmler death camps. General Speidel also has some "eastern experience"; it was he who initiated the "scorched earth" tactics during the retreat of the Hitler forces in the Ukraine. ,) The leaders of the North Atlantic Alliance had these varied gifts of ,Hans ,Speidel in mind when, early in 1957, they appointed him com- mander of the central grouping of the NATO Armed Forces in Europe. In ,1945, the generals fell upon hard times. For ten years they had no titles, and at first even preferred not to mention that they had been generals. They undertook in every way to wash the brown off their shoulders. -254- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 It is true that the United States ruling circles from the very first showed their unreserved good will towards the German militarists. But the Nazi atrocities were still too fresh in people's minds to permit them to ally themselves openly with those directly guilty of war crimes. A few representatives of the Hitler militarists were even jailed, although they were arrested not for reasons of punishment, but to hide them tempo- zwily in a safe place. The prisons were like first-class hotels. The sentries who were required to guard the prisoners stood before them at attention and when they were asked a question they snapped out: "Yes, Sir, Herr Feldmarschalll" -- such was the report of the correspondent of an Italian newspaper who visited such a "prison" in the West German resort village of Werl, where the British occupation authorites were keeping military criminals. Those Who remained free became quiet. Werck, soon released from an American prison, preferred, like many others, to go as far as possible, to Argentina. Speidel told everyone who would listen to him that he desired nothing more than to return to "pure science". The generals found jobs in trade and industrial companies. Nearly all the generals -- those who found themselves in prison- hotels and those who were left free -- had something in common: a sud- den development of a taste for creative writing. Some sat down at their desks at the request of the American War Department, while others did so at their own initiative. "Disagreement with orders" -- such was the significant title which Heusinger gave his memoirs. You see, he did not agree with Hitler. Furthermore, he considered his policy and strategy incorrect; he even supposedly participated in a plot against Hitler. In 1943 and 1944, after the defeat of the Hitlerite armies at Stalingrad, certain outstanding representatives of the German generals were not able to conceal their concern over what would happen next. A group of higher officers plotted against Hitler with the aim of getting rid of him and, after replacing him with somebody more acceptable to the Western allies, forming an alliance with the allies to continue a joint war against the USSR. In particular, Speidel, in one of his post-war writings, writes straightforwardly of the existence of the idea of wbeginning peace negotiations with the West and continuing the war against Russia on a shorter front", The present agreement between the Western imperialists and the German militarists has its origins in those times. On 20 July 1944 an attempt was made upon Hitler's life. It failed. The plotters were seized and many of them were executed. Adolf Heusinger was also arrested. He "plays up" this arrest in his book in -255- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 every way. But he "modestly" fails to mention another fact -- that 'In a short time he was released as not having participated in the attempt, and the Gestapo sent him its apologies. By the way, even if some of the West German generals at one time, at the end of the war, did conspire against Hitler, they did this for one reason only -- that Hitler had not lived up to the hopes of the militarists. Today, in accepting the protection of the western powers, the generals are expecting that it will aid them in attaining the goals that they were not able to reach while supporting Hitler. The entire careers of Heusinger and his colleagues show their lies when they try to describe their "dis- agreement" with Nazi atrocities, Hitler war crimes, and the policy of exterminating and enslaving entire peoples. He "served neither his coun- try nor Germany; up until the very time that Hitler began to slip, he served National Socialism well." This statement, applicable to any one of the generals, was made concerning Speidel by the famous French public leader Frederic Manhes -- former commander of an underground liberation brigade created by Buchenwald prisoners, and now president of the Interna- tional Union of Freedom Fighters. The generals' misfortune is that they happened to take up the pen not only after 1945, but before as well. Now they cannot wipe out a word of it, although some today doubtless wish that the literary "sins of their youth" no longer existed. The FRG's representative at the headquarters of the NATO Armed Forces in Paris is Brigadier General Count Kielmansegg. In 1941, when he was a colonel, he wrote a book "Tanks Between Warsaw and the Atlantic", which was issued by the "Wehrmacht" Publishing House. When he was marching with Hitler's troops across France, destroying everything in his way, he "felt like a thoroughbred racehorse", wrote the honored count, using a rather striking, and possibly apt, metaphor. At that time he was inspired by only one thought: "the German sword has been drawn to strike a deadly blow at France". "We report that we have completely carried out the task laid upon us by history, Germany, and the Fuhrer. ... And the gratitude of no one can give us as much pride as the gratitude of the Fuhrer" -- with these moving words Kielmansegg closes his account. General Hermann Foertsch has been entrusted by the NATO leaders with writing the section on the West German Bundeswehr in an illustrated propaganda book on this aggressive union, publication of which is planned in several languages. They knew to whom they were giving this assignment. Foertsch is no novice at such undertakings. For quite a long time he headed the Press Branch of the Supreme Command of the German Wehrmacht. From his pen came such treaties as "Instructions on the duties of an of- ficer devoted to Hitler" or "The Fuhrer and the armed forces". "There is no room among the officers of the new German Armed Forces for anyone who does not support our National Socialist Government with all his heart or for anyone who is indifferent to, or especially anyone who disapproves of, - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 this Government or the philosophy which created it and permeates it" - Foertaoh proclaimed. At that time he was merely a colonel, but now he has found himself a place among the generals of the West German Armed Forces. The "difficult times" did not last long. For those who are inter- eSted in further military adventures, the double-dyed Nazi past of the Ritlerite generals and their experience in launching aggression and participating in war crimes is not an obstacle to giving them weapons, but rather increases their value. In 1932, when Hitler explained his program at a conference of the biggest industrialists of Germany and promised them military orders unprecedented in history, one of those present, the steel magnate Fritz Thyssen, cried out "Heil Hitler" Today the monopolists of West Germany, the United States and other imperial- istic states are counting upon the German militarists to provide them with unheard-of military profits. As far back as 1951, the American newspaper Chicago Daily News wrote: "Give us the West German divisions and we shall not ask any questions; this is our position." The twelfth of November 1955, was a big day for the generals; with solemn ceremOnies.the first group of servicemen of the new West German Army was sworn in at the War Ministry building in Bonn, which was orna- mented with a representation of the Iron Cress, the emblem of the German militarists. There were only a few in the first group, 101 in all. But the first step is the hardest. Early in 1956, the size of the Bundeswehr had risen to 6,000, and by the summer of 1957 it numbered 1000000. At first glance this is not very large, either. For some time, the circles determining West German military policy have been trying in every way possible to convince the public that they do not really want a large army. In October 19560 the first Defense Minister of the FRG, Theodor Blank, was even forced to resign because he had comprised himself by his actions, which were too evidently directed towards developing armed forces with millions of men. He was replaced by Franz-Josef Strauss, who de- clared himself in favor of ,a "small professional army" which should con- sist basically of officers and non-commissioned officers. Such a plan promises many benefits to the West German militarists. It has a remark- able resemblance to the plan prepared by Seeckt during the Weimar Republic -- the plan of creating a "nucleus" around which a vast powerful army could be developed at any moment. The Bundeswehros leaders have made this task easier for themselves by establishing a relatively short term of military service. This will permit them to provide military training for a maximum number of people during the first few years, thus creating a vast reserve. But the "Strauss plan" has another, more essential, feature. It is primarily a plan to arm the Bundeswehr with atomic weapons. It was no coincidence that Strauss was Minister of Atomic Energy before he was - 257 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 appointed War Minister. It was also no coincidence that he was replaced in the former post by Balke, one of the kings of the West German chemical industry, the vice-president of a manufacturers group in this branch of the economy, and a member of the board of the military chemical company, I. G. Farben. The beginning of the new War Minister's administration was character- ized by negotiations with representatives of the western powers on the immediate arming of the Bundeswehr with "tactical" atomic weapons. Strauss was given a blank check in this regard at the meeting of the NATO Council at the end of December 1956. On his return to Bonn from Paris, Strauss annaanced for all to hear that atomic weapons would form the basis for the rearmandht of the German Federal Republic. His rapture at this accomplish- ment was so great that he mentally began to convert Europe into an atomic desert. In particular, he announced that atomic weapons in the hands of the western powers would make it possible to wipe the Soviet Union off the face of the earth. There have been cases known in Germanyg's history when its imperialistic bosses not only made threats upon the Soviet Union, but also tried to carry out these threats. It is also known what this led to -- that German territory was turned into a "desert" after the country had been plunged into catastrophe. After this, why talk about atomic war For Germany this will inevitably mean a catastrophe not at all comparable with any of the earlier ones. Row are the characteristics of the new West German Army being estab- lished? This is done primarily by its command personnel. As we have already seen, General Heusinger, commanding the Reichswehr, had worked on preparing operational plans for Hitler's aggression against both the East and the West. He has forgotten nothing and has learned nothing. As far back as the fall of 1953, Heusinger stated on the pages of the journal, Bonner Hefte, that the slogan of the armed forces being reborn in West Germany mould be: "Advance anywhere that there is the opportunity." The tactics of the "Main Military Board" of the FRG are those of a blitz- krieg. They were also formulated by Heusinger. While visiting the United States in 1956, as reported by the New York Times, he stated that it was necessary, "by causing incidents at various points on the West German frontiers", to create an excuse to undertake "reprisal measures" which "should be successfully completed in two or three weeks". Kammhuber is even more "optimistic"; in his opinion, "the outcome of the war for all practical purposes will be decided during the first four days". The West German army is being planned, of course, primarily as an army of aggression against the Soviet Union and the other countries in the socialist camp. The entire ideology of a "crusade against Communism" has been accepted for the arming of the Bundeswehr. The desire for revenge is also being stimulated by a turbid flow of books and articles from the pens of Hitler's generals, by their tales of the charms of life on occupied territories, and by numerous pamphlets and articles describing - 258' - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 how delightful atomic warfare is, and even by arithmetic problems in school books, Ruge, remembering the exploits he performed while close to Doenitz* is demanding the conversion of the Baltic Sea into a base for operations. The West German journal of military theory, Wehrkande9 edited by the former General Staff members Kammhuber and Ruge, declares that all means pre good in "the struggle against the East" and that there is no difference between "legal" and "illegal" methods of waging war, In describing the careers of the West German generals, some military theoreti44ns of Greet Britain and France, as well as of the United States -- for example, Fuller, Liddell Hart, or Wheeler-Bennett note only one part of their "military experience", namely, their "eastern experience". They are silent concerning the other side of their activities, such as, for example, that Heusinger prepared not only the "Barbarossa plan", but also the "green", "yellow", "white" and other plans of Hitler's General Staff, according to which the first blows were to be directed not against the East, but against the West. As for Speidel, this general, with "experience" gained in the North Caucasus and the Ukraine, was again transferred to France, where he was Chief of Staff of the Western Group of Hitler's forces, and Kammhuber, as we have seen, was one of the organ- izers of the terroristic air attacks against Great Britain. That the "eastern experience", has not been forgotten is shown, for example, by the following statement made by Strauss, which appeared in the press throughout the world: "The road to the German East leads through Paris 000 The West German generals proudly tell of their adherence to the "old traditions". The traditions of German militarism are well known. They consist of preparing aggression everywhere, in Heusinger's words, "there is the opportunity". The re-arming of West Germany is creating a danger spot again in central Europe which represents a threat to the peace and security of all the peoples of Europe. This is why the strug- 41e against the rebirth of German militarism is a struggle for the pres- ervation of peace in Europe. The German militarists are undoubtedly masters of both "eastern" and "westerniand various other kinds of experience in launching aggres- sive wars. But there is one kind of experience which they do not wish to take into account. They are stubbornly ignoring the lessons of history. However, history moves forward, and today the situation in &rope and the whole world is radically different from that in which the first and second world wars broke out. And if the militarists are for- getting this, the peoples understand this very well. The unity of the forces for_peace, their solidarity, and the decisiveness of their actions is a warranty that the sinister new plans of German militarism will end in failure. -259- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Leader of the German Revenge-Seekers A. Galkin A man with a stone face and long, equine teeth, casually leaning against the railing, stands on the platform and, wearing a tired, bored expreasion, watches the ranks marching before him. From time to time he phlegmatically raises his hand in response to cries of greeting. His face has the contemptuous smile of an important man who is accustomed to praise. His black civilian suit fits him closely, like a military uni- form. At the base of the platform, masses of people are milling about. Gray uniforms. New squeaking leather straps. Gay cockades. Haughty and evil faces. "Hoch!" "Heil!" The Fascist hymn rings out, "Today Germany is ours, tomorrow the whole world". Lebensraum! Advances What is this? The Fascist putsch of 1923? The burning of the Reichstag in 1933? A Nazi meeting in Hitler's Sportpalast? No This is 1956. It is the Federal Republic of Germany, a routine assembly of the "Steel Helmet". Hitler and Goering are not on the platform; they are long since dead. But the man in the black suit was their associate. He worked with them to establish the aggressive imperialistic Wehrmacht. With them he prepared for war. Now he is again an "outstanding personality". He is the honorary president of the "Steel Helmet". Over 100,000 soldiers of this union have given him their oath. This man's name is Albert Kesselring -- a retired Hitlerite Field Marshal. The West German neo-Fascists have proclaimed Kesaelring a model "German soldier". This doubtful praise did not come to him without rea- son. Kesselring's path to the "heights" is marked by heaps of corpses. Western Europe refers to him with burning and just indignation. When they hear his name, the Italians turn white with rage. They well remem- ber the times when his orders were posted in Rome and Milan, in their cities and villages. Their style was laconic: death, death, death. Not far from ancient Rome is a grotto of white tufa. At one time, tourists liked to visit it. Kesselring's aides made the grotto a place of execution. At his order, 335 Italians were shot here. Their "guilt" was that they fell into the hands of their executioners. There are many such crimes on the conscience of the retired Field Marshal: 48 shot in Fondo Toce, 54 hanged at Trieste, 107 inhabitants of Valle killed, 560 victims in Santa Anna di Stazzemal 1,830 old men and women tortured at Marzabotto. Cruelty was the driving force of his career. A professional soldier, he grew up along with the Reichswehr. - 260 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28.: CIA-RDP65-00756R000300270001-9 It was in the 1920s. The German militarists were secretly rearming. The army of professionals was changing into vast armed force. The prep- arations for the establishment of the German air force was going on. In 1924, Junkers began the production of military aircraft. In 1925, the first military air group was founded under the name "Aerial defense." The unscrupulous and unprincipled officer had every means for advance- ment. He climbed up the steps of a grand career in a majestic march. At first he worked together with General von Seeckt. Then the forerunner of Hitler, the Fascist general Schleicher, became his chief. Kesselring reacted to the Hitler revolution of 1933 with enthusiasm, for the Nazi had proclaimed a policy of brute military force and were openly talking about revenge. This meant that he would have an opportunity to apply his "abilities" ... After 1933, Kesselring s advancement proceeded even more successfully. The ambitious careerist was supported by his old friend Goering, who found himself at the helm of power. "The Fuhrer himself" takes note of him. In September 1933, he was still only a colonel. Six years later, he was com- mander of the First German Air Force, and two years after that he became a Field Marshal. In his book, "Soldier to the End", Kesselring boasted of the trust that Hitler put in him. According to his own words, this trust was "wonderful". Hitler had every basis for this. He knew that the careerist officer would undertake any crime at his order. Kesselring was one of the creators of the theory of total air war. The meaning of this theory was explained in an instruction report he re- leased to his airmen: "While circling over the enemy's cities and fields, you must crush any feelings you may have within you. You must say to yourselves, 1These people are not human beings since this term applies only to Germans.g For thePirstGermanfidrFcrcehere are no so-called non-military targets, or spiritual motives. Enemy countries must be wiped from the face of the earth, and any resistance must be crushed." In 1936, Spanish cities became the first subjects of the practical application of Kesselring's theory. "This was an excellent opportunity for the tactical and technical testing of our air force", the Hitlerite Field Marshal cynically wrote later. Then it was the turn of the British capital. The aerial armada commanded by Kesselring undertook the "Battle of Britain". One of his books includes a photograph from this period: Goering and Kesselring are accompanying the first group of aircraft flying their deadly freight to London. Both have satisfied grins on their faces. "I shall wipe the British cities off the face of the earth," Hitler de- clared at that time. - 261 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 During the first months of the war against the Soviet Union, Kesselring commanded the air fleet covering the advance of the central group of Fascist forces. The direction of the attack of this group was Minsk-Smolensk-Moscow. Operating in advance of the movement of the Fascist divisions, be sought to convert central Russia into a sea of ruins. Kesselring is immediately responsible for the deaths of thousands of residents of Minsk during the bombardments of June 1941. It was his aircraft that burst Upon Moscow during the grim autumn of the first year of the war. In October 1941, Hitler moved his favorite still another step for- ward; he appointed him "Supreme Commander of the Military Forces of the South", which amounted in essence to his being Hitler's viceroy in Italy. During the remainder of the war, Kesselring was almost the unlimited master of the German South. Hut in May, 1945, he surrendered together with his troops ... May, 1947. Sunny Venice. The ancient law building. On the defend- ant's, bench --the criminal. The British Military Court is trying the former Field Marshal Kesselring. The prosecutor is reading a long list of crimes impassively and unhurriedly. The defense lawyer tries to fall back on the rights of an occupying power. The defendant is silents, gloomily staring at the floor. He is afraid that they will see in his look his hatred and scorns, and his regret that he did not kill, destroy or torture enough. The court solenInly announces the death penalty. It seemed as if justice had triumphed and that the criminal had been condemned. But in reality mysterious forces behind the scenes stepped in. The American authorities protest; Kesselring may be of value to them. Two weeks go by. ,egotiatIons take place behind the scenes. Finally, it is announced from London that the death penalty has been rescinded. But Kesselring is no longer to be free. He will forever sit behind bars. In October, 1947, the criminal Field Marshal was put into the prison of Werl. There are various kinds of prisons: some are better and some are worse. The prison where the Field Marshal whiled away his time was a sanitarium-prison. The room was sunny, the door opened into a small gar- den. There were a doctorf, a nurse, a servant and a cook. His food allot- ment was better than thai, of the average German. Books, newspapers, paper. And, finally, long leavei on parole. Kesselring spends one such leave at ;toracofi'.t on the shores of Tegernsee, another at the Bavarian resort of -262- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 The man sentenced to life imprisonment calmly comes and goes as he wishes. The future does not disturb him. He can already see the begin- ning,of the sec9nd stage of his career. Publishing houses in eager rivalry propose that he write books. The Bavarian authorities invite him to accept a good place in a,government office. And finally the criminal is elected the Honorary Praident of the "Steel Helmet". In the first an- nouncement of the "Steel Helmet", it is stated that Kesselringls name should become a "guiding star" in the struggle against the East. While still in prisons Kesselring becomes one of the most influential individ- uals in the Bonn government. The "Steel Helmet" is not merely a soldier' organization. It is the traditional guard of German imperialists. Established in November 1918, by the manufacturer Seldte, it drenched Germany in the blood of workers. The shootings of 1918, 1919, 1920 and 1923 were the work of the "Steel Helmet". In 1929, the "Steel Helmet" joined forces with the German Nazi Party. Its military units participated in Hitler's pogroms. Jointly with the storm troops, they smashed labor unions and killed democrats. Then the "Steel Helmet" was merged with the Nazi military units, and the union's leader Seldte became one of Hitler's Reichsministers. Reborn in 1951 and lavishly provided with contributions from the Ruhr magnates and bankers, the "Steel Helmet" grew like yeast. Its membership soon exceeded a hundred thousand. The Schroeder Bank at Cologne, the German branch of an Anglo-American banking firm and one of the most influential members of the Cologne banking clique, took it under its patronage. It was clear that the President of a union of this type would not stay in prison for long. That is what happened. A few months after hie election, Kesselring was free. In his very first speech he called for educating West German youth in a soldierly spirit, and demanded the establishment of a "regular army of soldiers with war experience in the East". At one time it was said of the French nobility in exile that they had learned nothing and that they had forgotten nothing. Of Kesselring it may be said that he learned nothing and is trying to forget every- thing. He wants to forget the days of surrender, imprisonment, and the trial; he also wants to forget the two weeks that he was expecting to be executed. He thinks that he can begin over again. "Ky future is in my past", he declared cynically to reporters upon accepting the position of President of the "Steel Helmet". "Is it worth making a fuss over such a trifle as a couple of executed civilians?" he said with a smirk when reminded about his atrocities. - 263 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 "The only thing 'I fear is the rebuke of history that I did not make full use of the tactical capabilities of our army because of too great a feeling of humanity", he insolently declared at a "Steel Helmet" meeting. The present plans of the retired Field Marshal are quite extensive. His first goal is the full rebirth of the military might of the war lead- ers. Kesselring wants the West German Bundeswehr to be established on the model and in the likeness of Hitler's Wehrmacht. "The true soldier has nothing in in uniform", he writes in the leading newspaper, Deutsche Soldatenzeitunq. recommends Hindenburg, Ludendorff and common with the so-called civilian organ of the revenge-seekers, the As examples of "true soldier," he Rommel to the young men. "The S. S. division6 had members with the purest German blood. Therefore the soldiers of these units should not be ostracized. We ca not get along without them in the creation of a new West German force". These words were spoken by Albert Kesselring in November 1954, on the British television. And two years later, in full accord with his will, the doors of the Bundeswehr were opened wide for S. S. officers. Kesselring dreams of the day when the aircraft of the German mili- tarists will again rule the skies of Western Europe. These dreams are being brought into reality by his closest associates, who are playing an important role in the War Ministry, Lieutenant General Kammhuber, head of the Aviation Department, is well known as an admirer of Kesselring. The twenty air regiments which are being established in West Germany are only the beginning for Kesselring. He well remembers that when Goering undertook the rebirth of the "Luftwaffe" he had much fewer planes. For the time being, Kesselring has no official duties at Bonn This permits him to be completely frank. He talks much about a new war in the East. At the same time he gnashes his teeth at the West. In July 1953, his union's journal appeared under the heading "We Want a Victory-Over France". Not long before, Kesselring wrote in an article on the war in the Mediterranean Sea that the sea "remains a longed-for dream for the Germans ... since it opens the way to markets." Germany "should not only defend itself, but should attack," the ex-Field Marshal frankly stated in his book, Thoughts on World War II. "I am certain that Germany's troop resources Millreceive due recognition", he said at a regular meeting of his supporters in September 1956. Of course, it is harder for Kesselring and his associates to act now than it was in the past. The bitter experience of Hitler's dictatorship had its effect on the majority of the German people. The "Steel Helmet" and its ideologists are opposed by millions of active fighters against -264- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDF'65-00756R000300270001-9 Fascism in any form. However, it would be dangerous to fail to see that Kesselring and people like him are becoming a substantial force. Over a thousand military "associations" in the Federal Republic of Genially, . actively supported by West German monopolies, are daily and hourly prepar- ing the ground for a new war and for a bloody revenge. Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Master of Black Deeds A. Galkin .During the memorable days of 1945, when the nations were rejoicing over the end of the bloody war and the liberation of Europe from Fascist tyranny; a group of German officers surrendered to an American advance unit in Bavaria. In their appearance and conduct they were strikingly different from the tens of thousands of their colleagues who were demor- alized, shabbily dressed and had lost that snappy appearance which Wehrmacht officers were once so proud of. These prisoners, carefully shaven and in immaculate uniforms, acted as if the defeat of the Hitlerite army in which they served had not affected them. The group was headed by a lean, balding man in a Lieutenant General's uniform. He immediately de- manded that the entire group be sent to the staff in charge, since, he declared, he and his subordinates could provide the American command with information of extraordinary importance. When the General gave his name, it made quite an impression. General Reinhard Gehlen was well known to the heads of the American secret service. In Hitler's General Staff he headed the "Fremde Heere Ost" ("Foreign Armies of the East")Department, directed the spy service in Eastern Earope, and was one of the greatest masters of espionage in Hitler's Reich. Here is what the West German newspaper Aachener Nachrichten says about this episode: "During the 1945 catastrophe, General Gehlen fled to the West, taking extremely important secret documents with him. He managed to save many top secret lists of German agents operating in the Soviet Union. His ideas made a strong impression upon the heads of the American intelligence, as did the materials which he turned over to them." Gehlen was sent to the United States capital, Washington, in a special aircraft. He did not remain there long; when all the plans for creating a new spy system at the service of the United States were ap- proved by the Pentagon, he was brought back to West Germany., Thus Gehlen's career of espionage began. He was serving the United States of America. "The Americans were delighted with his work, and willingly permitted him to increase the number of his workers and to expand his sphere of activity," Aachener Nachrichten said. "The Americans paid all expenses." "Gehlen received much praise both from his American patrons and from the Bonn Government for the reliability and accuracy of his espionage data" the American journal, New Republic, stated. Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 At first, the work of the Gehlen "bureau" was directed inwards; the American authorities in West Germany needed people working for them in all the units of the political, social and administrative system. The nature of the work of these people is shown by the admission which a British radio commentator once could not help bursting out with; he called Gehlen's service "political 4ynamite". "The Gehlen network in West Germany is a tremendous hidden force", this commentator wrote. "It has confidential agents in all the German government bureaus, in the police, the newspapers, the radio stations, the labor unions -- every- where." Soon, however, the tentacles of the Gehlen service reached out beyond the boundaries of the FRG -- into the German Democratic Republic and other socialist countries. After the failure of tae attempts to launch a Fascist putsch against the GDR on 17 June 1953, the press of the German Democratic Republic came to the unanimous conclusion that these events were the work of the service of the American agent Gehlen and was the fruit of their criminal activity. This activity was described by Gehlen's agents themselves -- either when they failed in their work and were exposed, or repented and gave themselves up. First a spy network, consisting of hundreds of agents and informers, was exposed within the German Democratic Republic. Then came failures of agents in Czechoslovakia and Poland. The public of the socialist countries exposed their intrigues. Spies who were arrested were suffi- ciently talkative; they did not feel it was necessary to maintain silence concerning their chief's secrets. The evidence given by these agents and published in the democratic press provided a clear picture, permitting one to judge what the Gehlen organization represents. Acting as an ally and agent of the most reactionary United States circles, the extensive apparatus of the Gehlen espionage and sabotage service was organized in the likeness of, and on the same principle as Hitler's military intelligence service, "Abwehr". Hitler's general saw far into the future; he foresaw a time when his service would become an important unit in the system of the German movement for revenge, would free itself from American sponsorship and would convert itself from a servant and an agent into a partner with equal rights. - 2613 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 How is the Gehlen system set up? The General himself and his closest associates make up the "administrative staff", located at a luxurious villa at the Starnberger See, not far from Munich. Directives go from here to the offices of the Central Administration (general directorate) located at Pullach -- a town net far from the capital of Bavaria. Like the former Central Administration of the "Abwehr", the General Directorate consists .Q the basic branches: First (espionage), Second (wrecking and sabotage) and Third (counterintelligence). Each branch is sub-divided inte divisions. Thus, the First Branch has a Division of Military Espionage (including the Infantry, Naval and Air Sections), a Division of Economic Espionage and one of Political Espionage. In addi- tion, the frame-work of the General Directorate includes a number of autoPomo4s auxiliary divisions: operational and administrative ones, schools for the preparation of agents, a courier communication service, etc. ,Outlying Chief Branches, located in various Lander, are subordinate te the General ,Directorate.. Their structure is completely identical with that .g the Genera .rectorate, The next level of the Gehlen orgahization consists of the District Branches. The latter have juris- dictien,over,branches scattered everywhere. The sub-branches deal with the chief agents or with groups of agents connected with them. The Gehlen service, wrote the American journal New Republic, has all the means at its disposal which are known to an intelligence agency of werldrwide scope, from petty informers to underground radio transmit- ters, from secret research laboratories to spy schools and scientific centers,in which highly qualified scientists and specialists carefully analyse printed materials published in all the languages of the world. Of course, not one of the numerous subdivisions of the Gehlen spy system calls itself by its true name. They are all camouflaged as commi4rOal firms or ind4etrial and economic organizations. Thus, the General Directorate at one time presented itself as the "Herzog Company". One of the principal branches used to camouflage itself under the name nHase Company". The West Berlin Branch, "X/9592" operated as the ItNorland Company". The group for the preparation of false documents used the conspiratorial name of "Swabian Industrial Representativesn. ,The namsa ef those who work around Gehlen are kept strictly secret. The villa neer Muniph where his "administrative staff" is located is surrounded by a barbed-wire fence and is carefully protected by watch- men. For thirteen years, the General has carefully avoided the lenses of a camera. His latest photograph, dug up by indefatigable reporters, dates from 1944. 26Ei' Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Despite the strict secrecy, some data has gotten into print concern- ing the personnel of the General's service. It has become known that Gehlen has surrounded himself not only with former intelligence agents from the General Staff, but with all the scum of Hitler's spy system who survived the collapse of the Fascist Reich. He has hired a number of workers from the Gestapo, the special purpose units and the S. S. "Reich Security Administration". The spy-general's closest adviser is a certain Fritz Panzinger, formerly head of the Gestapo in the Baltic Republics while they were occupied by the Fascists. The courier service is headed by General Kleikamp, former personnel chief of Hitler's General Staff, The Chief Branch of the Gehlen organization in Karlsruhe is under the S. S. member Leidl. Branch "X/8970" is headed by the Hitlerite spy, Major Gartner. The basic offices of the Gehlen spy service include 4,000 experts on military and political affairs. This does not include the army of many thousands of agents scattered in various countries, all the way to the Near and Middle East. In the spring of 1956, the American authorities transferred Gehlen's agency to the West German government. The head of the agency received the civil service rank of Ministerial Director; he is now subordinate to Chancellor Adenauer through Globke, head of his per- sonal chancellery. The Bonn budget for the 1956-1957 fiscal year earmarked 23,000,000 marks for the maintenance of the Gehlen organiza- tion. While outwardly and formally the Gehlen service is no longer con- nected with the American authorities, close contact between them is doubtless being maintained. The Gehlen organization is the most extensive espionage and sabotage network operating in West Germany in the interests of the forces seeking to block the establishment of confidence in international relations -- namely, the reactionary circles of the western powers and the Germans seeking revenge. There is also an Intelligence and Counterintelligence Branch under the War Ministry of the Federal Republic of Germany. But this espionage organ is merely a subsidiary firm of the Gehlen spy com- pany. At one time this branch was headed by Lieutenant Colonel Heinz, super-spy and saboteur of the "Brandenburg" units of Hitler's "Abwehr". He tried to maintain some independence from Gehlen, but these attempts only led to his being dismissed at the end of 1953. His successor, Major Oster, also showed some obstinacy. Consequently, in the spring of the following year an immediate agent of Gehlen's, Lieutenant Colonel Wessel, was placed at the head of the Intelligence and Counterintelligence Branch of the War Ministry. Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Gehlen has also taken into his own hands a third secret service in the FRG -- !'the Administration ,for the Protection of the Constitution". For a long time the assistant chief of this agency was Radke, a Gehlen agent. In 1954, Radke became in reality the chief of the agency and since then it has basically been one of the units in the Gehlen network. It is known that in West Germany there are many other smaller intel- ligence agencies and espionage organizations. Espionage and sabotage are being carried out by the so-called "Investigative Committee of Free Jurists", "The Group for Struggle against Inhumanity", ulhe Consultantsg Bureau_for.the Defense of Enterprises," and others. ,The West German Mittelhayerische Zeitung has counted tens of intelligence centers in 'West Berlin alone. If, for the sake of caution, this figure is cut in half, it would still be an impressive number. All these spy groups, units and centers work for Gehlen and his agency. The General Directorate of Gehlen's service also has specialists on espionage against the West. The well-informed West German newspaper, Westfalische Rundschau, once remarked that "the activity of the bureau FM; riF-TETTOT-merGerman officer Gehlen is not directed at the East alone." The newspaper had a substantial basis for this statement. Ac- cording to the admission of the Nazi spy and saboteur Skorzeny, before the Fascist forces withdrew in 1944 the German intelligence set up secret caches of arms and sabotage equipment all over Western Europe. There is reason to believe that the data on these caches are held by this Gehlen at the present time. It is known that, in the past, Gehlen's representatives were espe- cially active in recruiting agents among the workers of the administra- tion of the French High Commissioner in Germany. In Strasbourg, in the so-called "Free &rope College", where spies are trained for work in countries of the East, the Gehlen service -- under the very noses of the French autherities -- organized a group to instruct agents specializing in problems of Alsace and Lorraine. According to the West German weekly, Deutsche Woche, this service regularly prepares secret summaries on the situation in rrarce and Switzerland. "Reports have been received," writes the American journal, New Republic, "of evidence of increasing activity of the Gehlen organiza- tion rom such remote places as Hong Kong, Stockholm and Madrid. The French were particularly disturbed by reports indicating that Gehlen agents were operating in their country." New tasks face the Gehlen organization with the inclusion of West Germany in North Atlantic Treaty Organization, the creation of a West German Army for the purpose of revenge, and the related increase in the proportion of German militarists in NATO. The Bonn organizers of this Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 army so far have not announced openly their goals of obtaining the domi- nant role in west Europe -- this would be premature and would merely have alarmed their present-day West European partners. But in Bonn, quite extensive consideration is being given not only to the problem of the forceful annexation of the German Democratic Republic, but also, for example, to an anschluss with Austria. A special Austrian division of the Gehlen service is promoting the goals of secret preparation, planned for many years, for an anschluss with Austria. This division is called "Slid" (South), and has strongholds in Salzburg, Linz, Graz, Klagenfurt and Vienna. As is the case in other units of this service, the personnel of the Austrian branch are recruited from "specialists" with a Nazi background. One of the leaders of the Austrian division is Wilhelm Hoette, formerly an associate of Kaltenbrunner, chief of the Gestapo. In particular activity was shown by the Gehlen German-American espio- nage network in Austria during the counterrevolutionary putsch of the Horthyite underground in Hungary. Austria became a transfer point for the deployment of persons and armaments to support the armed action against the popular democratic system in Hungary. The Gehlen service, operating in close contact with the United States intelligence, undertook to organ- ize this deployment jointly with other imperialistic intelligence agencies. In West Germany people speak openly of Gehlen's participation in the events in Hungary. It was this agency that sent hand grenades disguised as canned goods from the Federal Republic of Germany to Hungary. The White Book of the Hungarian Workers' and Peasants' Revolutionary Government also mentions the sinister role of the Gehlen service in the preparation and execution of the counterrevolutionary putsch in Hungary; this book exposes the dark activities of foreign imperialistic spy serv- ices. Even the American newspaper, New York World Telegram and Sun, citing informed diplomatic circles, acknowledged that the Gehlen intel- ligence service played a significant role in the putsch in Hungary. 000 The foreign press, seeking to create an air of mystery around Gehlen, called him a "man without a face". This, at the very least, is not exactly accurate. Gehlen and his bosses have a face. It is the face of the German striving for revenge; its savage fangs are well known to millions of people from the quite recent past. - 271 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Shadow Over Eurone N. Gribachev The western propaganda sextons are swinging their censers of ink, driving away the devils of doubt, while the godfathers and nursemaids of "Euratom," "Eurafrica," "the European Common Markets and other prodigal sons of a prodigal policy are lobbying in their parliaments to have the christening take place with due decorum and particularly without any special noise from the street. Everyone is so busy with this that even the thin flow of news from the Bermuda Islands, insipid as it is, is smeared over the newspapers without the usnAl affectation and official optimism. What is the matter? Hans Speidel, the Hitler general who has collected lumps on his forehead in the Caucasus, Voronezh and Belgorod, is being seated in the saddle as Commander-in-Chief of NATO Infantry Forces in central Europe and is riding into Paris on the black horse of American policy toward Europe. Tomorrow he will pick up the reins and pull on them2 he will assume adignified air, and the French and British soldiers, officers and generals will march off under their new command 'Erns, zwei2 drei...." The goose-step for the proud Britons, the barracks at Bonn for the freedom-loving Gauls. The ghosts of all the generations of German militarists are crawling out on their tombstones, giggling and clapping their hands; the new players and the living seekers of revenge are Snatching a tremendous military and political prize at the cost of the fall and belittling of British and French authority. Row can it be any different, if yesterday's loser is giving orders to the victors, if no general remotely suitable can be found to command their own troops among the British or French who produced Nelson and Napoleon, or if, speaking metaphorically, the Bonn goat Hans Speidel has been appokm4ed to guard the garden of British and French interests. True, all this took place amid the agitation and angry protests of workers, especiPlly the young ones, who must now serve under the command of the murderer of their fathers, brothers and fellow-citizens. But Speidel himself, as reported by the British journal Picture Post is ignoring this indignation with Swabian arrogance, and the British and French statesmet have transoceanic blinkers over their eyes and have the tan- gled cotton of Dulles promises stuffed into their ears. It would be naive to think that history decided to exalt Hans Speidel for his military genius; history cannot find anything like such genius in his biography, even if it should undertake to examine it through a Zeiss microscope. It would also be ridiculous to assume that Speidel, who on two occasions, the first and second world wars, fired at the French and British and was loaded down with medals by the Kaiser and.by Hitler for this, has wept a tear of sorrow and has decided to de- vote the remainder of his life to a lofty aim, i.e., organizing a well- to-do life in the militaristic jungles for the French Little Red Riding Hood and the aged British lion. 272 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 The appointment of Hans Speidel? if one arrives at the essence of it and discards the camouflaging phraseology, is the beginning of a new game of war between Bonn and Washington, a game in which the troops of the allies in the bloc are called upon to play the role of chess pieces. Speidel turned out to be a suitable nomination for the position of com- mander just because of his ability in playing, in conducting and weaving intrigues and in putting others into jeopardy. It is no coincidence that the journal Der Spiegel wrote, describing him: "His smooth cunning and elegant deftness make him resemble rather a smart business operator accus- tomed to success." And if anyone assumes that Speidel the nationalist will use these abilities to the disadvantage of Bonn and Speidel the revenge-seeker will use them to the disadvantage of Washington, to which he is tied with only one string, such an optimist should have his tempera- ture taken and told to see a doctor; he has the Atlantic fever with a loes of the normal feeling for time and the surroundings. liana Speidel, the son of a forester, was born in the idyllic village of Metzingen, from which one may conclude that nature is not always con- sistent; the offspring resembled neither his father nor his mother, but turned Out to be a Prussian youth. When World War I began, Hans Speidel wa$ still sitting on a school bench, but soon got away into the field army with the rank of a Junker; he understood that in the muddy waters of chauvinistic intoxication and war one could, with some skill, make a good career for himself. That is what happened g he fought at Verdun, on the Somme and the Maas as commander of a squad, platoon, and company, and got away from the defeat as a regimental adjutant with crosses and medals, but no wounds. His fellow officers found in him evidence of great flexibility, not noting or noticing any other talents. Then things went badly, the defeated army changed from one of many millione to one of only a hundred thousand, leaving its haughtiness and gilt behind on the fields of France and Russia. Then Speidel enrolled in courses on history and economics at the University of Berlin and was awarded a Doctorate in Philosophy cum laude at the University of Tabingen. By the way, his dissertation, "1813-1924; a Military and Political Study" resembled a philosophical work as muth as barracks language re- sembles Goethevs poetry. "The cause of revolution is not in moral strength, but in moral weakness, in the weakness of the people and the government," wrote this new Panglose in lieutenant tls shoulderatraps, unable to tell a goat from a cat-tail and assuming with the naivete of a Junker that the world is ruled by a corporal's baton. "Into the breaches made by the revolution, political parties flow in," these "crowds of parasites on the body of the empire," he stated with the naivete of a kindergarten student, mixing his fantasies with those of Oswald Spengler and not understanding that every empire carries revolu- tion around in itself, and that political parties, depending on their claa$ nature, either help in the birth or else sffiother the new-born - 273 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 child. No one knows how much longer Hans Speidel would have played with his philosophical toys and rattles and have sipped beer in the Ludwigsburg Casino if the Reichatag had not burst into flames and if Hitler had not slammed the door in the face of the International Conference on Disarma- ment in 19,3, Without making a wry face and without spitting? the "Doctor of Philosophy" swallowed his statements that parties are "crowds of para- sites on the body of the empire" and went off to serve Naziism. Then he made his first entry into Paris as an Assistant Military Attacher; he rep- resented and personified, on the international scene, German militariza- tion, which led to the torch-lit orgies of the S.S.; the pogroms, the concentration camps, the fall of Paris and the ruins of Coventry. A amall,bolt in a vast machine, Hans Speidel, urbane; self-assured and crafty, was casting a large shadow of future calamities and misfortunes. Speidel found himself in Paris a second time when Beck, Chief of Hitler's General Staff, made a visit to his French colleague Gamelin. This was a ceremonial bow before the dagger thrust. Then the war began. Hans Speidel became a first officer of the General Staff, and a year and a half later again, arrived in Paris a third time in order to propose to the French general Dentz that he surrender the city without fighting. He accompanied Hitler throughout conquered Paris to Napoleon's sarcophagus, and in gratitude the frenzied Fuhrer appointed Speidel Chief of Staff to the ComMander of the Occupation Troops in France. Thu, every appearance of this "Doctor of Philosophy" in Paris led ?to sinister consequences for France. The urbane speeches of Hans Speidel always turned out to be the howl of a dog at a fire. But at that time the $04 o_the Metzingen forester was lowly in rank and was allowed to play independently only with matches, and now, just wait, your American daddy will give him an atomic bomb to play with also. It 41.10t be Said that Hans Speidel conducted himself circumspectly, leaving himself a way out in case the time came to settle scores. He never protested against the mass executions of French patriots and hos- tages, but he never put hi a signature on orders for executions unless it was next to that of Keitel, Chief of the General Staff. This was a shadow which left no traces,' Quietly, wearing rubber soles of caution, he passed through the generals plot against Hitler which was then beginning to take shapes. At Rommel's request, he established contact with von Neurath for this purpose, brought Rommel himself together with the military commandant of Paris, StUlpnagel? and conducted negotiations with Field Marshal von Kluge. And what happened? Kluge was forced to shoot himself, Rommel took poison, and Strapnagel was hanged. This was the cost of words and intentions which were not fol- lowed by action. And what about Hans Speidel? He helped to tie and tighten -274- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 the noose around the necks of his commanding officers, but when the decisive moment came he managed to scramble to the side of the road. When Stillpnagel? arriving from Paris, advised Kluge to surrender, to throw open the front on the West, and at the same time launch a revolt against Hitler, Kluge was hesitant: "Yes, if only the swine were dead." Smelling the odor of a soap covered rope here, Hans Speidel wisely left during this conversation, and later told the Gestapo: At that time I was in my office and was directing military operations." It wasnot I, the horse was not mine.... Such is Hans Speidel -- a mixture of the idyl of Metzingen with Prus- sianism, of a home-grown philosopher and an elegant nightingale with the fox. He is the idol of the Philistines, who value resourcefulness more than anything, along with the ability to create a career regardless of what one has to offer, and he represents very mediocre human material from the point of view of sound judgment. And to the extent that NATO is not only a military instrument but even more a political one -- a transoceanic mas- ter key to the independence, sovereignty and the economic positions of the West European countries -- to this extent Hans is fully suitable for the Americans. Evidently, Washington decided that the English and the French are making the farewell to their glorious past unduly complicated and drawn out; Hans Speidel will be able to make it shorter. Of course, the British and the French would never have invented such a plan themselves; it was the creation of their "senior partner." No one in the world doubts that the Anglo-French team is playing in this big political soccer match at Dulles' whistle and under the direction of Wash- ington trainers. But having scored behind their awn goal-line, the west European politicians are seeking to present this as a defense of their own national interests -- to call a pig a carp -- and simultaneously, to calm public opinion, they declare the innocence of Hans Speidel, painting him as a poor blond Gretchen, deprived of her innocence by the mischievous Adolf Hitler. It is true that at the end of the war, when everything col- lapsed and the fragments of the third Reich were tumbling down upon the heads of its creators and builders, Hans Speidel was in prison, where, in the seemly company of people like him, he drank wine, smoked expensive cigars and delivered speeches heretical to the Gestapo, and, during pauses in these activities, would wash off the blood of Voronezh and Belgorod collective farmers and French partisans and patriots. Even the British and French lawyers are not so naive as to believe seriously that Speidel and Hitler had any ideological differences at that time; the General merely jumped overboard when he felt that the ship of the Reich, with its insane captain, was sinking. The same course of action, as is well known, is followed under similar circumstances by rats, but no one would assign them lofty political motives for doing this. Rather, the truth is at hand and simple. -275- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 The appointment of Hans Speidel was an act of surrender of Anglo- French policy to the Bonn-Washington axis. This old lady, the "tradi- tional" Anglo-French policy, is so sick with fear of Communism that in her illness she no longer feels what a. heavy hand her gray hairs are being wound around. She is till fussing and withering in the Middle East, not noticing that her sight is poor and that a new tenant is try- ing to move in upon her sphere of influence with the aplomb of an in- ternational Ostap Bender; she is enthusiastically murmuring the newly- born word "Eurafrical" not realizing that it is merely a password to let new colonizers pass the old French sentry posts. As soon as Hans Speidel becomes seated more comfortably in his lofty chair in Paris, one can speak in plain terms of how Anglo-French influence is fading and waning throughout the world and how Anglo-French interests and aims are falling underneath the steam-roller of the German desire for re- ven e. Whenever Speidel has appeared in Paris, he has personified and ? tiled German aggression in the West, and it would be foolish for the French to lull themselves with the hope that, in the present inter- national climate, tea roses will be raised from nettle seeds. As ye sow, SO Shall ye reap. All the more so, since the plan which Speidel is to Put into effect now will be worked out at MATO General Headquar- ters with the participation of the Hitlerite General Heusinger. This circle of Hitlerite generals around the West os military command is not yet complete, but it is significant that additional links are being forged in it one by one. And what is Washington counting uon in this situation? There it is assumed that a "position of strength" policy will best protect all the various monopolistic interests of the United States in the world today, and this policy is proceeding in two directions. One direction is that Pursued bY the United States in regard to its British, French and other partners, this phase being more effective and profitable. The other is directed, jointly with the defeated partners!, against the countries of the socialist camp, although this phase does not justify its expense, since there have not been any lambs for a long time which have desired to be shorn in this area. Waahingtonvs best assistant in these matters seems to be Bonn; here too the plans are belomIng moth- emten and the Shears are being sharpened. Washington has to pay some- thing for this, although at first not out of its own funds; the Ameri- cans assume that the mildest lambs are grazing on the banks of the Seine and the ThamesvQ.. Thus the German hireling generals are making their appearance in the big international arena, and the British and French politicans are throwing under their feet the interests of their own peoples and the prestige of nations. Recently, after having boarded the American cruiser "Boston," Hans Speidel expressed the hope that it is not yet too late to create a "united Europe." Here everything is significant -- the place, the speaker, and the text. -276- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Of cOnr?.e, we Soviet people are also disturbed to the depths of our souls by Hans Speidel s appointment; since we are endowed with normal feelr- ings, we are not accustomed to viewing with equanimity how honors are given to murderers and how hangmen and tricksters are promoted to high positions. We fully share the anger and indignation of the patriots of France and Great Britain and of all the honest people of Europe. Bat we have no fear Of,thc,fangs bared at us or of the atomic cigarette-lighters which the Americans are already supplying to Speidel. The shadow of Rens Speidel as he enters his duties falls primarily across_ Western Europe* And this shadow is unmistakably of a dirty brown color* FRANCE ,"France seems weak and in decline only because of the policy of renouncing its na- tional rights, a policy which its 'European' and,!Atlantiel governments are carrying out in all fields." -- M. Thorez Politics and Profits N, Molchanov In Paris, under the shelter of the Arch of Triumph, lies a heavy brass plate on the grave of the unknown soldier. An eternal flame burns here day and night. This place is sacred to every French patriot. Official ceremonies take place here. Almost always wreaths lie on the grave -- a monument to the courage of the nameless heroes of France. This monument is a symbol of the heroic and tragic history of France. During the last two centuries she has suffered more from war than any other west European country. France has undergone the invasion of Ger- man troops three times. The invaderls heel has repeatedly trampled upon the soil of Paris after capture by aggressors,. During the First and Second World Wars, France suffered great looses. While the United States lost 245,000 dead during the second world war and Great Britain 325,000, France lost 802,000. Here in nearly every city and village rise memor- ials to the dead of these two world-wide massacres. The majority of Frenchmen hate war and ardently desire peace. How are the rulers of France translating this sacred desire into reality? The country was still healing its wounds from World War II when it was drawn into the aggressive military blocs of the western powers. While rusty war scrap was still being gathered from the former battlefields, the ruling circles of France started a new armaments race. France be- came one of the active advocates and participants in the aggressive policy of force followed by the United States government. How could it happen that 43,000,000 Frenchmen, who had suffered so much from war, -277- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 found themselves again prisoners of an adventurist policy which threat- ened them with new and more frightful calamities? Who in France needed _ . war? To the misfortune ot the French, the post-war policy of their coun- try, as before, proved to be under the definite influence of the forces, behind the scenes which had repeatedly driven it into military adventures. Several decades ago these forces were vaguely termed the "money wall," in the 1930us they began to call them more concretely the "200 families"; now they are known with complete precision under the official title of the National Council of French Management (NSFP). The French newspapers often refer to it by the short word, sounding like the dull crack of a rifle, natronat. Of course, in France there are no special laws assigning decisive power over its government activities and policies to the representatives of the financial and industrial oligarchy. Ingenuity and cleverness has been used in masking Francens subordination to monopoly capital, which has gained huge profits from wars and preparations for war. The public is far from knowing everything. Nevertheless, information published at various times in the foreign press reveal the sinister role of the French financial and industrial magnates. The National Council of French Management is the secret but the real ruler of Fiance., "While Parliament is divided into numerous factions,"_ wrote the American journal United Nations World,, "the NSFP pursues its goals with a nn.i'ty'Ofpurpose which?, to use the words of one deputy,. 'would have been admirable if its goals were more admirable.' The NM ii an organization uniting the French employers and is the only organization authorized to represent them all. The National Council of French Management has its "private" cabinet with some resemblance to the ministries of economics, labor, and foreign affairs. It has a bicam- eral epaliaie?t1 a committee of 120 directors which meets once a month, and i general assembly of 500 members which meets annUally. The president of the organization is that noted representative of the French monopolies, Georges Villiers. He heads the Council,, consist- ing of twenty-two directors representing the largest monopolies in the country. This Council, which the French press calls the "real govern- ment" of -h.ance, meets once or twice a week in the headquarters of the NSF? on Pierre I de Serbie Street in Paris. The following fact elo- quently describes Georges Villiers' political complexion. In 19429 the Vichy governMent appointed him mayor of Lyons in place of Eduerd Herriot, who was thrown Into a concentration camp. 278 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 A000rdirg to the American press, the NSFP has a "secret fund," amount- ing to ten or twelve billion francs. It is raised from the contributions of big industrialists. The majority of French bourgeois parties draw their funds from this "secret fund." At first the principal recipients were the Republican Peopleos Movement (MRP) and the socialists; then the radicals enjoyed the generosity of the fund, and since 1951 a large part of its money has gone, in addition to the MRP, to the extreme rightist political groups (the "independents," the "moderates," etc.). The fund is managed by the "Office of Administrative and Economic Research" (Paris, 3 rue de Penthivre). It is known, for example, that during one of the recent electoral campaigns more than a hundred right-wing deputies received a billion francs from the "secret fund." The French patronat has its henchmen in all the bourgeois political parties, in Parliament and in the government. One of the most influential bourgeois parties in France is the Radical Party. Among its leaders are representatives of the largest banks and industrial firms. Here are some of them: Rend' Mayer? repre- sentative of the Rothschild group and former president of the large bank Banque Rothschild Freres. He participates in the management of over twenty large trusts and insurance societies. Rend Mayer held minister- ial posts in several post-war governments. Henri Queuille is the repre- sentative of the Durand Electric Engineering Trust. He has been a min- ister and prime minister several times. Bour&s-Maunoury is the general manager of the armament-manufacturing Marrel Frk.es Company, which is connected with the banking house of Mirabaud; he was Minister of National Defense in the Guy Mollet government and a minister in a number of earlier governments. In 1957 he was even Prime Minister. Senator Borgeaud is a member of the boards of directors of several mining and industrial com- panies, part of whose capital is invested in North Africa. A leading role in the political life of post-war France is played by the Catholic party, MRP. The connections of the leaders of this party, which promotes an extremely reactionary and militaristic policy, are also very typical. The president of the party until 1953 was Maurice Schumann, closely linked with the large French banks and with American capital. Robert Schuman, who was Minister of Foreign Affairs for many years and twice occupied the post of Prime Minister, is close to the Franco-German industrialist family of de Wendel. With the assistance of Francois de Wendel, Schuman was first elected to Parliament in 1919. He was a member of the Vichy government. One should also mention such well- known figures in the MRP as Andrd'Debr4, one of the directors of the Paris-Netherlands Bank; Jean Letourneau, one of the owners of the coal mines in Morocco and allied with American banks, and who was Minister of the Annexed Territories from 1949 to 1953; and Pierre de Chevigny? rep- resentative of the Mirabaud Bank. 279 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 At the extreme right of the reactionary political parties are the so-called "independents.? The capital belonging to the president of the National Congress of this party, Roger Duchet, is invested in industrial enterprises in the French colonies. One of the independent leaders, the former Prime Minister, Joseph Laniels is a big industrialist) a leading textile manufaeturer and is allied closely with electric engineering firms. Antoine Pinay? Prime Minister and Minister of Foreign Affairs, is a big leather manufacturer. A typical detail %' when Pinay became Prime Minister in 1955, the price of leather went up by fifty percent. Among the moderates is the so-called Peasants Party. The president of the party is Paul Antier? a large land-owner. In 1940 he was among those who urged turning power over to P4tain. There are also a number of representatives of banks and industrial companies in the Social Republican party (De Gaullists). One of its out- standing figures s Pierre de Gaulle, brother of General Charles de Gaulle, is the President of the Union Parisibnne Bank, closely allied with the Schneider Armaments Company. General Chaban-Delmas has very close links with large publishing and book-trade firms. We have named here only the better known of the French politicians, who are playing a prominent role in parliamentary and political life. We should add to them numerous less known direct representatives of the monopolies who have seized the government machinery of the French Repub- lic. Among the responsible officials of the French Ministry of Foreign Affairs are many financiers and industrialists. Once the general secre- tary of the Ministry was even Francois Charles-Roux, the chairman of the board of the notorious Suez Canal Company. The chairman of the board of the French branch of the Bence di Homes Jules Laroche) has long been one of the leading figures in French diplomacy, DvOrmesson, the Ambassador to the Vatican, is a close relative of the big bankers, SeillAre. Henri Franvois-Poncet? until recently the French Supreme Commissioner in West Germany) is a brother of the general manager of one of the trusts in the de Wendel group. The representative of FranT,e in the NATO Council, Herv4 Alphand, Ambassador to the United Statess is closely allied with the heavy industry magnates. This list could be continued further. But the examples already given are sufficient to convince one that the French menopolies hold in their hands the principal levers in the French political manhine. In addition to direct personal representation, there are many other indirect ways of making the government subordinate to monopoly capital. That is the policy which these rulers of France are foisting upon the country? In the area of internal affeirs, it amounts to protecting the interests of the monopolies, preserving high prices and low wages, 280 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 and continuously attacking the economic and political rights of the workers. In the area of foreign policy, it is orientation upon the United States as a principal bulwark in the struggle against democratic forces and the prepa- ration for a new war. And all is subordinate to an unbridled pursuit of profits "If it were possible to purchase all of France, they would buy France from France itself" -- this remark of Cardinal Richelieu concerning the French court aristocracy of his time could not fit the present policy of the NSFPRs leaders more aptly. The hidden activity and the real role of the French financial and industrial bosses is no secret to many Frenchmen. The Catholic writer Francois Mauriac has stated that the NSFP representatives "watch the voting in Parliament from the public balconies." The deputies of the bourgeois parties know that their masters are observing their every word and their every vote. In June 1953, the former President of France, Vincent Auriol, said concerning the patronatos activities: *Our democ- racy will degenerate into anarchy if it does not defend the interests of society from the coalition of egoism and cupidity which is trying to in- fluence the French Parliament by such methods, as shameless as they are scandalous." This influence was the principal reason that French foreign policy has been subordinate to the interests of the United States since 1947. The French monopolists, frightened by the growth of the democratic forces after the war, in order to preserve their profits, privileges and power, decided to rely-upon a more powerful foreign imperialism, thereby placing themselves in a relatively dependent position. The French economist, Henri Claude, in his book The Monopolies Against the Nation, published in 1956, writes % "Financial capital bears the responsibility for the anti-national policy which has been followed since 1947. It was this capital that sold national independence for dollars, traded in Frances security, mortgaged the future of the nation, speculated in the very destruction of the French people, and drove to its extreme limits the policy of treason to the nation by preparing an atomic war; it is this capital that represents the most anti-national part of the bourgeoisie." In 1948, France signed a treaty with the United States on the "Marshall Plan." By this treaty, France, in granting the United States the right to interfere in its economic and financial affairs, began in fact to follow a foreign policy corresponding to the requirements of the State Department of the United States. In return, it received American financial and economic "aid." The American credits and "gifts" turned out to be in the hands of the large French monopolies. The largest part was received by the large trusts: "USINOR?" "Sollac," "Ugine," "Schneider at Cie," and others. The "Marshall Plan" was a strong support to the French monopolies, but it undermined French sovereignty and foisted American policy upon it. The participation of -281- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 France in the "Marshall Plan" was a clear example of the utilization of the French government in the interest of the enrichment of the monopo- lists and to the harm of the true interests of the workers. In April 19494 France entered the aggressive North Atlantic Union. This action drew her into the armaments race) foisted an aggressive foreign policy upon her, and considerably increased her dependence upon the United States, American troops were deployed upon French territory, and extensive construction began of American airfields, military storage facilities and other establishments. Forty Atlantic, Organization air- fields were built in France, and 50,000 American officers and men were deployed there. The French people were saddled with the heavy load of vast military expenditures which, according to official, minimized data, grew in France from 231 -billion francs in 1947 to 1,368 billion in 1956, or more than six-fold. But while the "Atlantic" pOlicy of Franc&a, governments has caused and is continuing to cause great harm to the national interests of the country, this policy is bringing enormous profits to the French monopolies. After 1952, actual military expenditures amounted to between 1,,800-1,900 billion francs annually, or nearly half of the entire budget. Out of this sum, according to French economists, between 1)100-1,200 billion francs are spent for military orders placed with the most powerful trusts, which make enormous profits from them. This is why the militarization of the French economy and the policy of preparing for a new war is extremely profitable for the financial and industrial oligarchy. A state of war hysteria is also needed by the monopolistic circles to reduce the standard of living of the working class. After the American handouts under the "Marshall Plan" came to an end, the French monopolies began to receive large sums within the frame- work of the North Atlantic Organization on the basis of the so-called "mutual security" system. American military orders with French military companies grew from 818 billion francs in 2952 to 1272 billion in 1954. These orders brought in enormous profits to such large trusts as "Forges et ateliers du Crausot," "Brandt," "Tomson Houstonso' 4Dassault," and others. Official French propaganda, seeking to conceal such facts is strenu- ously attempting to justify the "Atlantic policy?" the policy of war, on the basis of the supposed "threat of attack." by the Soviet Union. Still, the Soviet Unions sincere love for peace is now acknowledged even by people who have views far from those of the Communists. * * * - 282 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 A typical example of the complete disregard for the national interests and open betrayal of them is to be found in the history of the powerful family of French heavy industry magnates -- the de Wendels. Their ances- tors came from Germany. In 1704, one of them acviTed metallurgical enter- prises in Hayange on French territory. In the next generationy the de Wendels established factories in Charlevilley Tulle, and Le Creusot. As a result of the Franco-Prussian War of 1870, Lorraine was annexed to Ger- many, placing part of the de Wendel enterprises in a different country. Adrien de Wendel then exchanged his French citizenship for a German one. Two great de Wendel firms were established, the French one and the German one. Preparations for World War I permitted both to obtain enormous profits from armament production. Deputy de Wendel was in the French Parliament; his cousin sat in the Reichstag. The War of 1914-1918 did not break thefamily ties of the de Wendels and the von Wendels. This is shown by the following remarkable fact. The German Armyy, at the very beginning of the wary occupied the de Wendel factories in the Briey valley. These factories provided considerable assistance to Germany during the war. And while they were located within range of the French artillery, the troops were given the strictest orders not to fire at these factories. The de Wendels also acquired wealth during World War II. When Hitler occupied France, Frangois de Wendel sent him a letter in Which he assured him of-his loyalty and promised him frill support. At present, the de Wendel enterprises are operating at full capacity. Their annual turnover amounts to 80 billion francs. The armaments rape is bringing them enormous profits both in France and in Western GermallY. In France, the de Wendels are called the "family of turncoats, !' that is, people without a country, going over to the side more valuable to them. Less important "turncoats" also exist, and maw- of them can be found among the magnates of French monopoly capital. * * * With great power concentrated In their hands, the French monopolies are shamelessly using the French government for their own mercenary in- terests, This is convincingly demonstrated if one examines closely the basis of French foreign policy. The German problem occupies a leading place in French foreign policy. After World War II, the French people determined to prevent a rebirth of German militarism. But only five years later France had in principle agreed to the restoration of the armed forces of West Germany. In 1954, its representatives signed the Paris treaties on the rebirth of the Wehrmacht. How is this line in French foreign policy explained? The facts show irrefutably that the leading role in this reversal was played by the mercenary interests of French monopolistic capital. - 283 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 The French monopolies have considerable investments in West German industry. Conversion of this industry to military production promised them vast profits. During the Hitlerite occupation of France, the Frenda metallurgical magnates raked in enormous profits from armament production \for the German Army. With the aid of the Paris treaties, they decided to bring back those happy times. But, in addition to the desire to profit from armament production for the West German Army, the French monopolies are guided by another consideration which is no le os important for them. They expect that they will be able to compete with the West German monopolists in the international markets; after all, much of the latteras efforts will be directed toward rearming West Germany. he French 'newspaperman Albert- Paul Lentin wrote in January, 1955: "French big capital regards the Paris treaties as Corresponding to their interests on the whole, and has therefore decided to support them and to sway in this direction the French parliamentary deputies who are under their influence, especially the moderates; it decided to do everything possible to build up a solid , parliamentary majority to secure the ratification of these treaties." :This is why the news that the Paris conference had signed a treaty on the rearMing.of West Germany caused, on 24 October 1954, a significant rise in the stocks of the war industry monopolies on the Paris Bourse; as well as on the New York and London 'exchanges. Of course, France agreed to the arming of West Germany under the press4re of the American ruling circles, capitalizing on the search of the French monopolies for new sources of enrichment. In this connection, the post-war history of the Saar problem is typical. The Saar Region is small in area and popu1ation0 but its eco- nomic potential is very large. The Saar annually produces 3,0000000 tons of steel and 17,000,000 tons of coal. After the war, the French monopolies opened a vigorous struggle for the annexation of the Saar to France. The United States and Great Britain supported Frances claims to the Saar, demanding in return French support for the policy of re- militarizing West Germany. The French monopolies took over the economy of the Saar and acquired enormous profits thereby. Butafter having obtained the agreement of the French rulers to the arming of West Ger- many, the United States reversed its position: the Saar was again re- turned to West Germany. Without concealing their intentions to seek revenge, the German militarists are building up their forces. French colonial policy is also subordinate to the mercenary in- terests of the French monopolies. After World War II? the French governments have been waging, colonial wars actually without interrup- tion. The "dirty war" in Indo-China dragged on for eight years. From - 284 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 the beginning to the end, it was a war in the interests of the French financial oligarchy. The net profits of twenty-five large French com- panies whose operations were connected with Indo-China almost doubled over a short period. Although the United States "aided" the French monopolists with dollars in waging the war, more than twice the amount was spent on it as was received by France under the "Marshall Plan." In 1956, war broke out in Algeria? France concentrated over 400,000 troops here. Each day of the war has cost the French people a billion francs and numerous lives. And all this was done to increase the profits of the French monopolists, who are interested in maintaining colonial rule in Algeria. Algeria is the largest consumer of French industrial production. It has second place in French imports. In 1953, exports from Algeria amounted to 107 billion francs. Every facet of French foreign policy reflects the interests of the French monopoly capital which determines .it. Let us take, for examples the plan to create a "European Union" of six countries -- France, West Germanys Italy, and the three Benelux countries, envisaging a gradual merger of various branches of their economy, armed forces and finsily the countries thempQlves into a "supergovernment." The "European Coal and Steel Community" has existed for several years. In 1955, the sup- 'porters of a "united Europe" intensified their activity again. There was talk of establishing a "common market" and of merging atomic indus- try. Both these plans have the same political goal: strengthening and unifying the closed military and political union of West European coun- tries? But they are represented as being a means of achieving economic prosperity and progress. The authors of the plan for a "common market" claim, in particular, that the markets of the six countries will be merged into one by the abolition of customs. There is to be free competition. This will cause a quick reduction in prices, from which the consumer supposedly would benefit. In reality, the policy of free trade wills as it always has in the pasts establish the domination of the most powerful monopolies and will destroy the small enterprises which are unable to compete The victor- ious menopoliess as experience has shown, will then dictate monopoly prices. But the situation is even more serious if one takes into account the economic situation in each country. And here one should first con- sider France. The point is that French industry as a whole is less profitable than, for example, that of West Germany; French goods are, as a rule, more expensive than West German ones. As a result of his stubborn struggle, the French worker has won higher wages and better social welfare than the worker in West Germany or in Italy. 285 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 What will happen when a "common market" is established? The weaker enterprises will be unable to withstand the pressure of their competitors and will go out of business. Wide-spread unemployment will result. The owners of the enterprises which survive, seeking to lower the prices for their products, will begin to reduce wages and to increase the exploitation of the workers. The French economy will undergo a ser- ious disturbance and will fall into decline and chaos. Who will gain from this? It will be the monopolies of West Germany, which are sounder economically. The "common market" will enable them to establish an undi- vided domination over West Europe. "The German exporters," writes the French newspaper Information, "have every reason to welcome the estab- lishment of a common marketog As for France, the 'common marketg is a deathly danger." a Why then do the ruling circles of France insist upon the establish- ment of a. "common market"? Here also the decisive role is played by the interests of the French financial and industrial monopolies. It is true that the plan for a common market is opposed by certain businessmen in the light, chemical and machine-building industries. But the influential iron and steel monopolies, which are already participating in the "European Coal and Steel Community" and which have nothing to lose from a further "liberalization" of French foreign trade, are fighting for the establish- ment of a common market. With the aid of the "common market," the leading financial and industrial monopolies in France hope to strengthen their position in the world market. They will strive for price reductions on their products by means of reducing wages and wiping out the social gains of the workers. A serious threat to the national interests of France is also repre- sented by the atomic industry merger -- "Euratom.* In the opinion of a French journal? France will become "the first victim of Euratom." France has gone far ahead of the other participants in the develop- ment of atomic industry. It has large reserves of fissionable materials, is conducting considerable research, and has built an atomic electric power station. Since "Euratom" is an organization of a, "national" nature, it is threatening to violate French sovereignty in such an important field as the atomic industry. The participation of France in "Euratom" will increase her dependence upon the United States, since it will be under American control. The atomic "pool" (that is, a "pot used in common"), will give the German militarists the opportunity to produce atomic weapons. All this will create a serious threat to the national interests of France. Nevertheless; the ruling circles of France are striving for the creation of "Euratom." The explanation is the same! *Euratom" is profitable to the large monopolies. Especial interest is shown by the French uranium ore company controlled by the Rothschilds, the Central Society for the 286 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Production of Uranium, and Radioactive Ores and Metals (the Ugine company), the French Heavy Water Company (the Pechiney group), the Alsace Machine- Building 'Company, and others. This is why, despite the clear danger for the national interests of France, its representatives on 25 March 1957 signed the agreements on the organization of "Euratom " and the creation of a "common market" in the course of twelve to fifteen years. The French monopolies hope that the transfer of atomic industry to the control of "Euratom" will avoid the possible nationalization of this branch of the economy in France. This is what is really hidden behind talk that "Euratom" is the way to atomic "progress," the "prosperity" of Europe, etc. A sinister role was played by the French financial oligarchy in the Suez crisis. As is well known, France took a most aggressive stand in this problem. At the end of October 1956, together with Great Britain and Israel, it undertook an armed attack against Egypt. The aggression against Egypt failed. It caused serious injury to French interests. France appeared before the whole world in the role of an aggressor. The Suez adventure seriously heightened the crisis in the French,financial system. According to published data, the participation of France in the war against Egypt cost it 90 billion francs. The rup- ture of trade relations with Egypt increased the loss by 10 billion francs. But this is by no means all. All sectors of the French economy suffered seriously from the aggression against Egypt. As a result of the closing of the Suez Canal and the destruction of pipe-lines, France was deprived of over 80 percent of the oil it consumed. In addition, France used to receive through the Suez Canal two-thirds of the rubber it consumed, about 40 percent of its manganese ore, about 90 percent of its mica, half of its wool, much of its cotton, and so forth. As early as the end of November 1956, gasoline ration cards were introduced in France; a passenger car was assigned 30 liters of fuel a month. At the beginning of 1957, the fuel allowance was reduced. Long lines of automobiles stood at the gasoline pumps. Speculators drove up the prices for fuel on the black market. The American journal Newsweek told about a curious but typical incident. At one point Menas-France hastily sought out a Secretary of State, Paul Anxionnaz, in the lobbies of the National Assembly. The two politicians began a heated conversa- tion. About what? Possibly about the policy to be followed in the Suez problem or about Algeria? No, the former Premier of France was' attempt- ing to acquire twenty liters of gasoline/ Because of the shortage of fuel, many industrial enterprises began to close down, especially in the automobile industry. Transportation expenses rose sharply. Prices went up for many consumer goods. Central -287? Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 heating in many reeidential buildings was discontinued. The heat was even tamed off at the headquarters of the Atlantic Organization in Paris l On the railroads, many diesel engines were replaced by steam locomotives. In Paris, Marseilles) and in other cities, long unused trolley ears were put into operation. Noisily they dragged along the empty streets on which automobiles were becoming scarcer and scarcer. In unleashing the aggression against Egypt, the French government organized an economic blockade against its own countryl Why did this take place? Because the French monopolists did not want to accept the nationalization of the Suez Canal by Egypt In no other western country does the Suez Canal Company have such ties with einanci41 and industrial circles as it does in France. In no other country is there such a large group of people interested in the prosperity of this company. The France Presse Agency reported that the nationalization cf the Suez Canal "particularly affects French financial circles, since a large part of the capital is held in France. ,..It is exactly in Fiance that all the private stockholders are located.2 While the forty-four percent of the company 0s stock owned in Great Britain belongs exclusively to the British government, the fifty-two per- cent of the'company0s stocks owned in France are divided among private perions, the great majority of which are large property-owners. And for each share, with anoMinal value of 250 francs, the company paid earnings of 7,246 francs in 19558 It is difficult to find in the capitalist world an enterprise which would provide such high profits. In the Administra- tive Council of the Suez Canal Company, composed of 32 directors, there were Sixteen Frenchmen. And each of them received an enormous salary; thus, in 1955, they earned 7,000,000 francs merely for attending meetings once a month. The French bourgeoisie received a total net profit of at least 5 billion francs from the exploitation of the Suez Canal in 1955, according to rough estimatesi While the Suez Canal Company in Egypt was a nstate within a state,n in France it formed par* of those powerful forces which ran the govern- ment behind the Scenes, The French directors in the Administrative Council represent the 'largest French banks?, The Paris-Netherlands Bank, the Indo-China Bank (the Lazard, Rothschild and Schneider-Creuset groups), the Bank of Industrie' and Commercial Credit, the Lyons Bank, and many financial and industrial firma. The following examples explain how the affiliations were made be- tween the Suez Canal Company and the financiAl and industrial monopolies of France. Since 3.9480 the President of the company has been Francois CharlePaonx -- the former French Ambassador to the Vatican and the former , , - 288 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 General Secretary of the French Ministry of Foreign Affairs. While he headed the Suez Canal Company, he was simultaneously a member of the board of the Paris-Netherlands Bank, the Societe Marseillaise de Credit, the Compagnie Fran2aise de 11Afrique Occidentale, the Land Bank of Egypt, the President of tEe Comite' Central de la France d90utre-Mer, and so forth. Members of the board of the Suez Canal Company (Pierre Fournier, Emile Minost, Jacques Georges-Picot (General Manager of the company), Melchior de Voitl(, Humbert de Wendel, Emmanuel Monick, and others) are also representatives of many large financial and industrial monopolies. Leading politicians in France were directly interested in Suez Canal Company profits. But the threat to the profits gained from the exploitation of the Suez Canal was not the only reason why the French monopolistic circles demanded a military intervention in Egypt. They were also concerned over their investments in nearly all branches of the Egyptian economy -- in water supply, gas production, electricity, municipal transporta- tion, trade, and so forth. These investments amount to the colossal sum of 450 billion francs. The owners of these investments were concerned lest the nationalization of the Suez Canal would lead to the nationali- zation by Egypt of branches of the economy which had been controlled by French monopolists. Finally, one cannot ignore the particular interest of the oil monop- olies in the Suez Canal, who were frightened lest the nationalization of the Suez Canal would be a signal for the nationalization of the oil in- dustry being exploited by them in other Near Eastern countries. It was for these reasons that the financial and monopolistic circles in France inspired the policy of aggression against Egypt. At the very height of the loud campaign for military intervention in Egypt, at the end of August 1956, the scandalous "affair of the checks" came out into the open. The editors of many Paris newspapers received letters from the former management of the Suez Canal Company, in which it was proposed that the newspapers defend the interests of this company, which was nationalized by the legal owner of the Suez Canal -- Egypt. To each of these letters was attached a check for 100,000 francs& Honest newspapers at once indignantly informed their readers of this attempted bribery. The American Associated Press agency reported that the heads of the former Suez Canal Company, oplaced in a difficult posi- tion," acknowledged that they had sent the checks to the newspaper edi- tors. They called it a mistake. But the press which directly displayed the points of view of the monopolists, including La vie francaise and Information, began to preach openly a "crusade" against Egypt. The first 289 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 prize in this field, without any doubt, was won by the newspaper Aux de la In an article with the heading "Oil Before Every- thing," it wrote in August 1956ft "It is necessary to act quickly and without warning. Two or three divisions of parachute troops located on Cyprus can be sent in one night to the oil fields... The territory of Kuwait, which alone will produce 60,000,000 tons of oil this year (31.5 percent of all the Middle Eats production)) has a population of only 200,000... Is it conceivable that 60,000,000 tons of oil, sixty per- cent of the vital requirements of Europe, be under the control of 200,000 personsI.). But to whom should this oil belong? To the people who lived around it as if it did not exist, or to the European and Western industry which developed this oil by its own efforts? There is no doubt that the civilized nations have an overriding right to use this oil. This overriding right must be decisively defended." "Economic sanctions against Egypt are insufficient_a concluded the newspaper. ?The necessity of military intervention must be acknowledged." Regardless of the national interests of the country, the monopolistic circles instigated France to undertake the criminal aggression against Egypt. * * * such are the facts. They convincingly show that French post-war foreign policy -- a policy of military blocs? the armament of West Ger- many and the preparation of war -- is determined exclusively by the interests of French monopoly capital. This policy is followed for the sake of the trusteo profits, although it represents a deathly threat to the national interests of France and to the cause of peace. This policy is being revealed more and more as the leaders of the French Rairenat. ever more insolently and cynically dictate their will to the great and glorious nation which has made an invaluable contribution to the progress of mankind. The French writer Anatole France wrote with distress and indignation "After France had liberated itself from the power of the kings and emperors, and had thrice proclaimed her independence, she fell under the power of the financial companies which had seized the riches of the country...." Since these words were written, the omnipotence of the magnates of capital in France has revealed itself in an even more insolent and un- concealed form. And their anti-national activity ie having even more disastrous results, since it is directed towards preparing and unleash- ing an atomic war which would threaten the very existence of Ftance. It is therefore not surprising that the patriotic forces, constantly becoming stronger, are taking a stand against parasitic French capitalism and its policy of national betrayal. - 290 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 The forces of national rebirth in France are growing, striving to change French policy and to subordinate it to the interests of the people. The Bank of War A. Alekseyev At the end of 1955, It French journalist asked several dozen Parisians chosen at random on the street: "Who in France, in your opinion, has done the greatest harm to the cause of peace in the last few years?" The ma- jority of those asked named the Indo-China Bank. Indeed, in France the concepts "I. B." and war have almost been synonyms for a long time. When gunpowder begins to reek again in the French colonies, the French say: "Cherchez la Banque de loIndochine" (look for the Indo-China Bank). The name "I. B." is associated with a number of protracted colonial wars which French imperialism has conducted in Vietnam, Laos and Cambodia. The "I. B." bears a large part of the responsibility for the san- guinary events of recent years in Morocco, Tunis and Madagascar. The patriots of Algeria fighting for the independence of their country prop- erly consider the ?I. B." as one of their worst enemies. This bank was one of the inspirers of the bloody Suez adventure of the British, French and Israeli aggressors, who attacked the peace-loving Egyptian people on the night of 30 October 1956. The bank's magnates are dreaming of regaining their former posses- sions in China with the aid of Chiang Kai-Shek. Even in South America, the pernicious influence of this Parisian bank is clearly being felt. Whenever a routine reactionary military revolution takes place in any of the South American countries, prices shoot up for the stocks of the South American companies in which the "I. B." ha $ invested. * * * The Indo-China Bank has existed for over eighty years. Its entire history is that of a business based on the oppression of colonial and dependent peoples and on unrestrained military speculations and frauds. The "I. B." was established in Paris at the beginning of 1875 as the result of an agreement among five of the largest of the French pri- vate banks on the joint exploitation of the new French colonies. Its organizers were the Banque de Paris at des Pays-Bas, which financed trade in goods from the colonies; Cr4dit Industriel at Commercial, a union of a group of Catholic banking establishments controlling various branches of French industry and trade; the bank Soci4t4 G4n4rale? rep, resenting the interests of the great industrial group of Schneider; and the credit-issuing banks, Crddit Lyonnais and Comptoir National dDEscomptes de Paris. (At present the last three banks are nationalised.) - 291 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28: CIA-RDP65-00756R000300270001-9 At the time that the "I. B." was established, French positions on the Indo-China peninsula were not at all firm. It is true that in 1862 the French imperialists, after a long and bloody war, were able to im- pose a one-sided peace treaty upon the Annamese emperor and to seize Cambodia in 1867. Still, the population of Vietnam and Cambodia did not lay down their arms. Life was still hot for the French colonizers in Indo-China. Vietnamese guerillas and units of Chinese volunteers, the so-called "Black Banners." continued their heroic fight against the foreign invaders. Under these conditions, the "I. B.* directed its main efforts towards financing and organizing regular military opera- tions against the peoples of Indo-China who were fighting for their freedom. Experts and advisers of the "I. B.6 accompanied the French troops in their military campaigns deep in the interior of the country, while the central branch of the bank in Indo-China became a second general staff of the French armed forces on the peninsula. Receiving extensive support and aid from the French ruling circles and the Vatican) the bank did not spare either the French soldiers or money. Additional French troops were being constantly dispatched to Indo-China. But. despite all the efforts of the colonizers and the vast military superiority of their forces) it was not until 1884 that France was able to establish formally its protectorate over Vietnam. In Laos the protectorate was established even later, in 1893. In addition to planning and financing military measures) the leaders of the "I. B0,11 its "brain trust," consisting of representatives of the largest French financial and industrial groupings:, from the very beginning of the bankes existence began to take energetic measures for carrying out its plans for the economic enslavement of the occupied territory. A French newspaper at that time stated that the stockholders of the "I. B." had great hopes that the "economic masterym of the new colony would bring them great profits. It is true that there was ample basis for such hopes. Indo-China, which is rightly considered the pearl of Southeast Asia, is one of the richest areas of the world. The rich tropical soil, as well as the abundant warmth and moisture, makes it possible to reap up to two, and in some areas three, harvests a year. The aboriginal popu- lation of Indo-China, before the seizure of the country by the colonizers, had for may centuries not only fed itself but also always carried on an extensive trade in agricultural products with neighboring countries. The plant and animal life of IndoChina is famous for its variety and richness. - 292 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 In the peninsulaos thick forests grow rose-colored, red, black, "iron" and many other rare varieties of trees. In most of the countryps districts conditions are especially favorable for growing coffee and rubber and other valuable tropical and semi-tropical crops. Indo-China is rich in iron ore, zinc, lead, tin, manganese, coal, copper, gold and many other valuable minerals. Betting the seizure of the countryos natural resources as its goal, the Indo-China Bank undertook a systematic and planned attempt to carry out this aim. During the first period of its existence, its primary efforts were directed towards seizing land in the accessible plains of the peninsula. At the same time, the bank invested considerable sums in road construc- tion, seeking to create the conditions for exporting agricultural prod- uots and raw materials for industry from the country. The seizure of land by the bank, either directly or through various joint companies, was carried out very intensively. By the beginning of the twentieth century, it became, to all intents and purposes, the owner of nearly all the best land on the peninsula. By 1900, the land holdings of European colonizers in Indo-China totalled 322,000 hectares. OA the seized lands, the "I. B.," both directly and through its lessees, established vast plantations which soon provided its stockholders with enormous income since the labor of the Vietnamese peasants was barely paid for. At first the colonizers grew chiefly rice on their plantations, about three quarters of the land seized being devoted to this purpose. Gradually an increasing amount of land was allotted to the production of rubber. While 298 tons of rubber were exported from Indo-China in 19350 according to official French statistics, in 1938 the figure was 60,000 tons, and in 1953, 75,000 tons. In 19520 the French rubber plantations occupied 70,000 hectares. The most important of them belong to subsidiary companies of the "I. Bolig Plantations R4unies de Mimot, Societe Indochinoise Des Cultures Tropi- cales? and Caoutchouo de 10Indochine. It also received a large income from its coffee and tea plantations, which formally belonged to the companies Hauts Plateaux Indochinois and Soci4t4 des Plantations Indochinoises de Th6. The data given above describes quite clearly the expansion of the "I. B." in Indo-Chinese agriculture. But they do not by any means cover all its activities. After seizing enormous areas of land, the bank 293 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 established various companies there to exploit the countryls raw material resources.; in every way it supported the mining of valuable raw materials.. It placed the output of coal, tungsten, phosphates and salt under its control. The raw materials obtained on the peninsula underwent only the most necessary preliminary processing on the spot, and then were exported from Indo-China. From the very- beginning of its existence, the "I. B." undeviatingly carried out a plundering colonial policy to convert the economy of the Indo-Ohinese Peninsula into a dependent annexation of France. To des- cribe this phase of its activities, one need only cite a few statistics concerning Indo-Chinags trade with the western countries, which) for all intents and purposes, meant with France. In 1901, Indo-Ohina imported from Europe finished goods, some agri- culturaljzoducts and household goods amounting to 202,0000000 francs, and exported mineral raw materials in the sum of 161,000,000 francs. In the course of the next forty years, the gross total of trade between Indo- China and the western countries doubled. During the same period the mate- rial situation of the population of Indo-China became much worse. From year to year hunger and poverty increased in the country, and the popula- tion was dying out from excessive labor and social diseases. The "I. B." did not limit itself only to the exploitation of the natural resonrges of the country. Its magnates obtained the right for the bank to,issue money in Indo-China and then skillfnlly used this right as one of the means to enslave Vietnam, Laos and Cambodia eco- nomically. By flooding the country with paper piasters and, with the assistance of the French government, by establishing an exchange rate between piasters and francs which was profitable to the bank, the "I. B." acquired the opportunity for unlimited financial spec,ulations which brought it record-breaking super-profits. ?After having conquered Indo-China by fire and sword and having con- verted it into its own private estate, the "T. B." soon became one of the largest and most influential banks in France in many ,.ases impos- ing its will upon the French government. The,bank's_capital, which originally amounted t(:) 8,000,000 francs, grew a hundred-fold by 1945 and was 250 times the original amount in 1954. On the _eve of World War II, the sphere of the bankgs activities had grown so much that in reality the term mIndo-China" in its name had become only nominal. - 294 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Together with the banking house of Rothschild, the banks De Paris at Des Pays-Bas? Worms, Lazard Fires et Cie, and several others, the Indo- China Bank occupied at this time one of the leading positions in the finan- cial oligarchy which was for all practical purposes governed France. Among its large shareholders were the Baroness Rothschild, the poli- tician Paul Boncourt? Fran9ois Mauriac, Rend Smadja2 and many other lead- ing Frenchmen. In 1959, the bank had representatives in London, Singapore, Tokyo, Hong Kong, China, Siam, Saudi Arabia, Ethiopia, Tangiers, the Hebrides, San Francisco, Johannesburg, Lausanne, and in a number of French colonies. Its experience in the exploitation of Indo-China enabled the bank to deal successfully with its competitors and to win more and more bases for its predatory expansion. * * * Gradually, the "I. B." acquired influence over a number of less powerful banks and took over about eighty credit companies (the Franco- Chinese,. the Franco-Japanese, the Franco-Italian for South America, Sabbag? and other banks). By 1952, financial income from Indo-China, according to the bankos own statistics, represented half of its earnings. Faced with the irresistable growth of the national liberation move- ment in the colonies, the Indo-China Bank sought to put off its inevitable fall by diversifying its investments. Its expansion into other countries and colonies was in general char- acterized by the same forms and methods which it had used in Indo-China. First came the seizure of land and mineral deposits, then the predatory exploitation of the more accessible natural resources, and finally the importation of goods at speculative prices from the mother country into the areas where the bank had established strong positions. In French North Africa and in other French African possessions, the "I. B." gradu- ally purchased shares of companies already operating and of local banks. In the Near East, it employed the Banque Sabbag as its direct repre- sentative and intermediary, and in Brazil, Uruguay, Mexico and Canada it has invested large sums in a number of companies, chiefly engaged in agri- culture and trade. It is coordinating its activities on the American continent with American monopolies, and in return for their support is providing them with assistance in Africa. -295- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 As in Indo-China, the activities of the "I. B." in the French over- seas colonies and abroad have a predatory and colonial character. It is mercilessly exploiting the native population and is extorting colossal super-profits from them, ignoring all accepted human norms and laws. ,Within France, the Indo-China Bankes investments are chiefly in industrial enterprises processing raw materials from the colonies. This policy has given it the opportunity of receiving a double profit: first, through supplying its enterprises in the mother country with cheap raw materials, and, secondly, by selling the finished products of these enter- prises at monopolistically high prices in the colonies and other countries. It is very difficult to give a full picture of the nature of the in- vestments of "I. B." within France, since such information is kept secret. Nevertheless, it is known that the bank is financing a number of companies engaged in the production of sugar, rubber and wine9 in the processing of precious metals and mineral ores, in trade in consumer goods in the colon- ies, and so forth. In addition, it is participating directly and indirectly in a number of transportation and insurance firms. Representatives of the bank sit on the boards of a dozen other banks, firms and trusts. But re- gardless of how large its role as a holding company in the mother country (that is, investing capital in various enterprises), it has been and re- mains today primarily a colonial bank, and its income derives almost en- tirely from investments in other companies outside the mother country. The Indo-China Bank from the time of its establishment has regarded and continues to regard its primary purpose as preserving and expanding its "empire" at any cost. Among the methods most willingly used by the bank for these purposes, its magnates have consistently given and are continu- ing to give priority to war. During the entire history of the bank, bloody adventures have been its best source of income and the most basic method of Consolidating and broadening its expansion. The bank has always and everywhere supported these adventures and has used them for its own enrichment, For twenty-five years war raged on the fields of Vietnam 2 Laos and Cambodia. French capital has consolidated its positions on the Indo- Chinese Peninsula with the aid of bloody military repressions. During World War 1, the "I. B." undertook substantial speculations in deliveries of military supplies. The profits paid to stockholders rose from 6,0009000 to 30,0009000 francs. In 1927, defending the interests of the 410 B." and other French monopolies, French troops again began military operations in Southern Vietnam. They crushed a rebellion of Vietnamese farm laborers -- coolies, working on the French rubber plantations. In 1930, French troops drowned the vast Yen Bay rebellion in blood, and later did the same with the peas- ant uprising in Central Vietnam. - 296 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 But a new height in its activities inimical to the cause of peace was attained by the "I. B." after the popular democratic revolution took place against the French invaders in Indo-China in August 1945. In the declaration proclaiming the republic, the Vietnamese revolu- tionaries, describing the rule established by the French colonizers in Indo-China, stated: "They deprived us of all our freedoms. They imposed inhuman laws upon us.... They built more prisons than schools. They dealt merci- lessly with our patriots. They drowned the national movement in rivers of blood,. They made drunkards of us and poisoned us with opium in order to weaken our people. They shamelessly exploited us, plunged us into the most frightful poverty and mercilessly devastated our country. They unscrupulously plundered our rice plantations, mines, forests and raw materials. They appropriated to themselves the right to issue bank notes and monopolized all of our foreign trade. "They schemed up hundreds of baseless taxes, forcing our fellow- countrymen, especially the peasants and small tradesmen, to live in dreadful poverty.... They exploited our workers in the most barbarous fashion." After carrying out its revolution in August, 1945, the Vietnamese people firmly resolved to put an end once and for all to the domination of the. predatory Indo-China Bank in its country. In reply, the "I. B." again turned to its well-tried method of defending its super-profits -- to war. Under the direct pressure of the "I. B.," the French government in 1946 unleashed a new colonial, predatory war In Indo-China, whieh the French people justly called the "dirty war." During this war, the crim- inal role of the "I. B," became especially clear, Showing it to be a bank of war, violence, plunder of colonies, and speculation. * * * The "dirty war" in Indo-China began in the fAll of 1946. In launch- ing it, the French colonizers rudely violated the treaty signed on 6 March 1946 with the peoplegs democratic government of Vietnam; according to which France recognized the Democratic Republic of Vietnam as a "free state, having its own government, parliament, army and finances." When the guns began to rumble again on the battlefields of Indo? - China, the "I. B.," acting jointly with the Rivaud group, the Lazard FAres et Cie., and Worms banks, and several other financial and monop- olistic groups directly interested in the exploitation of Indo-China, - .?97 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 took all the measures it could to broaden and intensify the armed conflict. In every way the French financial oligarchy supported the militaristic aspirations of the Indo-China Bank and its monopolistic partners, since the war was bringing it further super-profits. The United States of America also actively urged France to undertake the "dirty war." It promised the French colonizers assistance in every way. This promise was kept. At first this was done secretly. But after June 1950, when it unleashed aggression in Korea, the United States openly supported the French armed forces in the war against the Indo-Chinese peo- ples? In this, the United States counted on the intensification and broad- ening of the conflict there with the hope of weakening both sides. Then it planned to interfere in the conflict and to seize the French positions on the peninsula. The French deployed an army of 100,000 men in Vietnam. In the early stages, the colonizers troops were able to win some victories, but soon the Vietnamese people began to strike smashing retaliatory blows against the interventionists. The French colonizers' plans, based on a lightning war and a quick victory, fell through. The war became a protracted one. The high patri- otism, selfless courage and the unexampled heroism of the Indo-Chinese peoples blocked the aggressors' plans. The "I. B." empire was falling apart at the seams. The workers on the rubber and rice plantations left their work and went into the forests, joining the People's Liberation Army. Work in the mines and other enterprises of the bank went on only? under the protection of military reinforcements. After becoming convinced that popular resistance could not be broken by military superiority alone, the French colonizers launched a reign of brutal terror on the territory they controlled against both the soldiers of the Vietnamese Army and the civilian population of the country. The colonizers made use of the most savage forms of repression in their struggle against the Vietnamese. In 1949, three hundred miners at Hon Gal., working in the mines of one of the companies connected with the "I. B.," were, "in the interests of intimidation" thrown into the sea with their hands tied together with steel cables. In December, 1952, the French forces, in the course of routine operations in a village, seized an eighty-year-old man who was not able to flee. They set fire to his clothes and then threw him into a burning house. The bandits dealt similarly with a group of old men under arrest; they poured gasoline on them and threw them into a fire. -298- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 - In pursuing their fire and sword policy, the colonizers did not spare monuments of the past or religious establishments. In many pagodas they destroyed all the statues in search of gold; a number of temples were com- pletely destroyed. In August 1952, the Vietnamese Information Agency reported from Northern Vietnam: "In the province of Kuang Yen (Northern Vietnam) the French troops often make Vietnamese women their prisoners in the course of their preda- tory raids! "On one occasion they drove some Vietnamese women with children to the bank of a river and ordered them to throw the children into the river; In the event that they did not obey, they threatened to shoot both the women and the children. Since the women held the children still closer to them and refused to obey this inhuman order, the French bandits seized the children, threw them into bamboo baskets, lowered the baskets into the river and began to shoot at them as if they were targets. Many women threw themselves into the river to save their children and were shot by the French bandits." Often the colonizers, attacking the women, pinned them to the ground with bayonets, together with their children. The aggressors? crimes every day became more brutal and inhuman. But no repressions or terror were able to break the resistance of the Vietnamese. Then, at the initiative of the "I. B.," the French authorities undertook a "scorched earth" policy in Indo-China, calculat- ing that with hunger as a weapon they would be able to force the people to lay down their arms. As an example of the methods to which the colonizers resorted in following this policy, we may cite the order issued by the commander of the French forces in North Vietnam, General de Linares, in March 1951. Paragraph 2 of this order states: "Section 2. Destruction. There are basically two methods which can be used: "(1) To soak the rice, either by pouring water over it or by leav- ing it out in the open during the rainy season. "However, to ensure rotting, the rice must be soaked for 48 hours; so that there may be no doubt as to the destruction of the supplies, it is necessary to make certain that during this period the population does not come to remove the rice and place the salvagable part of the rice under cover. - 299 - Approved For Release 2001/07/28: CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 "(2) To pour benzine or gasoline on it; in the case of the discovery of especially large supplies, it is necessary that the air force be re- quested to drop cans of benzine." In the North Vietnam region alone, the colonizers barbarously destroyed 13,700 hectares of rice plantations. However, the "scorched earth" policy did not bring victory to the colonizers either, The war cost Indo-China enormous losses in lives. It was accom- panied by vast destruction and caused irreparable damage to the economy of the country. During the war, precious monuments of the centuries-old culture of the Vietnamese people were destroyed. The losses caused by the war amoUnt to astronomical figures. France, in conducting the "dirty war," also lost substantially in men and materials. In an official statement of the French Committee for the Study and Settlement of the War in Vietnam 9 the results of the war for France were described as follows: "The continuation of the war in Indo-China is causing indescribable suffering. The war has cost both sides hundreds of thousands of deaths. It is disturbing the moral feelings and the conscience of the majority of Frenchmen.... "The 400 or 500 billions of francs annually which the war in Indo- China is costing France is regularly causing a deficit in its budget, aggravating inflation and making any form of stabilization of the cur- rency impossible. "Because of this, it is impossible to improve the living standards of the French people and particularly to build hundreds of thousands of buildings which are now needed...." However, despite the fact that France had really been defeated in the first years of the war and despite the opposition of French public opinion to the "dirty war" in Vietnam, the war continued for almost eight years. The "I. B." made use of all its influence both in France and abroad. It sought to have the French troops spill their blood as long as possible on the battlefields of Indo-China, since the war was bringing the bank colossal profits. The principal source of profits for the bank during the war proved to be speculation with piasters. Income from this increased as the war came to have fewer hopes and results. 300 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 According to unofficial calculations, uI. B." profits from this speculation reached 200 billion francs a year r exercising its right to issue currency in Indo-China until 1947, and then with the aid of the obedient financial departments of the puppet Bao Dal government? the "I. Bon during the war artificially devaluated the Indo-Chinese currency, simultaneously supporting a disproportionately high official exchange rate, One piaster was exchanged for seventeen francs, although in reality it was worth only eight or nine. This enabled the bankgs agents to carry out innumerable speculative currency transactions in Indo-China. They bought up piasters for almost nothing and sent them by various thieving machinations to France. Exchanging them there for francs, they made enormous profits through robbing the French treasury. Although these dark machinations of the "I. Bon were kept carefully concealed, some of them were accidently made known and drew the atten- tion of a large part of the French public. At the demand of the progres- sive deputies, the National Assembly of France was compelled to set up a special commission to investigate the dirty machinations of the operators of the Indo-China Bank. The commission discovered that outstanding poli- ticians of the country were involved in the banks machinations. "The investigation showed," announced the Communist Kriegel-Valrimont in the National Assembly, "that the speculation in piasters was organized more cleverly, subtly and cunningly than is known to the Public. The transfer of plasters, though illegal and deleterious to the country, amounted to hundreds of billions of francs, and it is even difficult to establish the number of witnesses to the machinations who paid with their lives only because they knew too muchon Despite the obvious criminal nature of these speculations, the offi7 cial investigation into them did not produce any results. The affair was suppressed by the banks protectors in high places. Another major source of income for the nIo B." during the war was through the devaluation of the piaster. The devaluation led to an un- bridled rise in prices in the country. Thus, for example, after the devaluation of May 1953, the wages of workers in South Vietnam fell by thirty to fifty percent. The devaluation enabled the agents of the III. B.?n who bought Indo- Chinese goods for practically nothing, to gain additional profits for the products imported from France, which were sold in the market for higher prices. During the war, the profits of the "I. B." rose from 49,000,000 to 638,000,000 francs. During this period, the banks capital, according to official statistics, grew from 157 million to 2 billion francs, and the capital of all the firms connected with the bank, to 16 billion francs. - 301 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 According to a leading French politician, Mitterrand, the govern- ment spent three trillion francs in taxpayers o money on the war in Indo- China. The total damage caused to France by this war is even larger than this astronomical figure. In 1954, after the severe defeat at Dien Bien Phu, the French rul- ing circles were obliged to give up their military operations in Vietnam, Laos and Cambodia? On July 21, 1954, an agreement on ending the war in Indo-China was signed at Geneva. In a difficult, bloody war the peoples of Indo-China won a well- deserved victory and saved their national independence. The owners of the Indo-China Bank drew their own conclusions from the military defeat of France. At the end of the war, the bank removed a*large part of its investments from Indo-China and transferred them to safer places. * * * After the collapse of the French aggression in Indo-China the "I. B.," seeking new spheres in which to use its capital, began to pay par- ticular attention to the French possessions in Africa. As the basic means for its expansion in Algeria and Tunis, the bank made use of the Creait Foncier dtAlgerie et de Tunisie Company, while in Morocco it used the Banque Industrielle de 18Afrique du Nord. In Black Africa it took over a number of commercial and land banks, through which it created several companies to mine iron, graphite, gold and other ores. Further- more, to strengthen its positions in Africa, the Indo-China Bank made extensive Use of the right to issue currency in the French possessions in Oceania, French Equatorial Africa, New Caledonia and Togoland. After Chiang Kai-shek had been driven from China, the "I. B." transferred the capital of its Franco-Chinese Bank to Madagascar. Thus, as in Indo-China, agents of the "I. B." soon once more be- came Participants in the hostilities in Morocco, Tunisia and Algeria. The bank embarked upon particularly extensive activity in Algeria. Together with the other large French monopolies, it persistently urged the French government to undertake ever more severe repressions against the freedom-loving Algerian people and in the long run contributed to the launching of the war in Algeria. "Algeria is becoming another Indo- China)" the American newspaper, New York World Telegram and Sun, stated at the end of 1956. When the British, French and Israeli troops attacked Egypt in No- vember 1956 overt and covert agents of the "I. B." in France and abroad let out such shouts of joy that the bank' s participation also in this - 302 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 military adventure became clear. How could it fail to be a participant? Itis well known that the board of directors of the Suez Canal Company includes Emile Minost, Chairman of the Board of the "I. B.," as well as a number of his representatives. According to unofficial information, he owned a considerable number of shares in the Suez Canal Company. When the British, French and Israeli aggression against Egypt failed and a severe blow had been dealt to Frances position in the Near East, the "I. B." undertook urgent additional measures to protect its interests in Africa. It decided to come to an agreement with its more powerful rivals and competitors. In December 1956, the "European Consortium for the Development of the Natural Resources of Africa" was established in Luxembourg. This consortium, "Consafrica," as it is called for short in the French press, is now one of the principal under- takings of the bank, as has been admitted by sources close to the "I. B." With its aid it plans to conquer Africa, lay its hands on the natural resources of the Sahara, and, if necessary, defend its "African empire" by force. The bank owns twenty percent of the capital of "Consafrica." In establishing the new consortium, the "I. B." has turned to its old tactics, which it had tested as far back as the Vichy period. At that time the bank participated in a company, Soci4te de Crjdit Inter- continental, created at the initiative of the German monopolies and the American ones supporting them, and setting as its goal the plundering of the European countries occupied by the Hitlerites, their colonies in Africa, and other areas. The director of the bank, Paul Baudouin, was a minister in the Main government. This time the consortium is set- ting itself a more limited goal, the plunder of Africa. Not satisfied with the establishment of a consortium in Luxembourg, the Indo-China Bankgs agents in the French Parliament hurriedly rushed through a new law to unify the administration of the French possessions in the Sahara in order to facilitate the operations of "Consafrica." On 14 December 1956, the National Assembly passed this law, called the law on the "General Organization of the Regions of the Sahara." In connection With this decision of the National Assembly, the France Presse Agency reportedt "The administrative reorganization under discuasion will facilitate the development of an area nine times as large as France. According to the latest estimates, in a few years it will be able to satisfy a quarter of the mother countrygs demands for oil. Also, large reserves of coal, copper, iron and uranium have been found." 7 303 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Progressive public opinion in France, alarmed by the new machinations of the bank and its partners, properly regards "Consafrica" as threatening more speculations and fraud, more colonial plunder, and additional wars and robbery on the African continent. Such is the Indo-China Bank -- a bank of war and colonial violence, a bank of robbery and fraud. In seeking to save the colonialism which is now doomed, as well as the degenerating colonial empire of France, the "I. B." is weaving a web of war. But it is becoming constantly more diffi- cult to carry out its policy of robbery; the peoples of Africa and other countries have drawn all the lessons necessary from the failure of the aggressive plans of the colonizers in Indo-China, Tunisia, Morocco and Egypt. The Traitor Bank A. Alekseyev It is difficult to measure the privations and sufferings which France endured during the years of the second world war. The Hitierite occupiers were striving to transform it from a great power into a province of small importance of the Nazi Reich, and the proud French people into their obedi- ent slaves. For this purpose they robbed and murdered the French men and women with unlimited brutality, jeered at the great French culture and the glorious freedom-loving traditions of the country, undermined its economy in every way and barbarously destroyed its natural resources. According to the following figures, which are far from complete, the German aggres- sion cost France 802,000 killed, 40 trillion francs in losses (in francs of 1951), 452,000 destroyed homes, 1,436,000 damaged buildings, 51,000 ruined farms, 49,500 destroyed enterprises, 4,010 destroyed bridges, etc. The war brought grief and unhappiness to millions of French people, left hundreds of thousands of unfortunate cripples and orphans, reduced entire regions of the country to terrible poverty.... And in spite of all this, in France again are heard voices glorifying the killing of mankind and militarism. The reactionary pen-pushers exalt the recent bloody Anglo- French-Israeli venture in the Sinai peninsula and call for new military provocations. And again, just as it was on the eve of the second world war, the criminal agents-provocateurs and the war-mongers of a new war have influential defenders and patrons, who are dreaming of doing "busi- ness" on the blood and sufferings of their countrymen. The discussion below will deal with one of these "businessmen" -- the French bank of Worms9 * * * The Bank of Worms belongs to a number of the most influential finance- industrial groups in France, privately owned but the real proprietors of the country. In its financial power, it is inferior to the banks of Roths- child, Lazar, Mirabeau and a number of other of the most important banking -304- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 houses. Nevertheless the Bank of Worms merits being singled out among other pillars of the French financial oligarchy, because it is more and more acquiring fame as the most ?dynamic" bank of the country, and as one of the principal monopolists in the field of the atomic industry, which is new for France. Characterizing the mercenary aristocracy of his time, Cardinal Richlieu in his time said: ?If it were possible to buy all of France, they would buy France from France itself." These words involuntarily come to mind upon acquaintance with the past and the present activity of the Bank of Worms. The Bank of Worms is a young plunderer. It was only founded in 1927 as a trade company, at the head of which was the large ship owner Ippolit Worms. The bank was created as a private joint-stock company. But the decisive role in it, from the time of its establishment, has been played, and is being played by the members of the Worms family, who depend in their turn upon financial aid and support from the Lazar family, with which Ippolit Worms is connected by blood ties. At first the bank engaged, on the whole, in the financing of in- dustrial and trade operations, in which the company of Worms had spe- cialized formerly (trade of coal and non-ferrous metals, the transport of freight by sea, ship building, etc.). The affairs of the young bank proceeded poorly: it was overpowered by stronger and more deft competi- tors. Several times t was on the verge of failure and avoided it only by means of successfully carried out speculative operations, and direct support by the Lazar bank. During this period the bank acquired the reputation of being an adventurer, prepared, for the sake of profit, for any of the most shady transactions; this reputation was well maintained. It is necessary to say that the majority of French banks does not shun improper speculations, but the Bank of Worms, having started speculative ventures, far surpassed its fellows and competitors in this respect. This could not be conducive to an increase of the number of its clients: the first years of the bank's existence passed by in an atmosphere of uncertainty as to the future and pessimism. But in the beginning of the thirties, soon after Hitlervs coming to power in Germany, the affairs of the Bank of Worms began, unexpectedly for many, to improve quickly. It established close contact with a number of large German and Italian monopolies, carried out operations with con- siderable SUMs both in francs as well as in foreign currency, played on the exchange, set up connections with prominent politicians of France. Simultaneously, the number of correspondents and representatives of the bank abroad increased, especially in Germany and Italy. Ttle secret of the unexpected prosperity of the Bank of Worms was incomprehensible to the majority of people for a long time. Only in 1934 did the facts become known to French public opinion, facts which - 305 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 permitted a slight opening of the veil of secrecy which had hitherto . . con- cealed the sources from which considerable "free" funds camp into the tills of the bank. In February 1934, following the collapse of the fascist putsch which the fascist leagues operating in France at that time had prepared, it was discovered that the Bink of Worms linked the leaders of these leagues with certain French monopolies and foreign banks. But formnlly_the activity of the bank proceeded within-the "legal" limits of French law, andthere were no sanetions of any kind taken against it. Inspired by this, the bank soon again began an active support of fascist elements in the coun- try. When in the middle of 1936, the renegadenoriot created in France a fascist party, the bank quickly rendered all-round aid to it. And what is more, two of its proteges -- Marion and Foudhe? became part of the dominating nucleus of Doriotla party, and Dorlotenjoyed extensive credit in the bank. ! Simultaneously the bank, as it later turned out, was financing the secret organization of fascist spies and killers -- the Cagoulards. Money of the bank was used for the organization of underground store- houses of weapons, terrorist acts, explosions, and arson. Through the Cagoulards, the bank established connections with aristocratic military circles of France. f Having finished their murderous raids and other crimes, the partici- pants of the Cagoulard band, after the example of the flu flux-Klan, put black hoods (in French the word for hood is cagoul) on for disguise. When the organization of Cagoulards was exposed, and its connections with the Bank of Worms were revealed, the progressive circles of France began to demand, that the "cavil]." be removed from the bank, that is the "hood" be taken off. However, just as in 1934, it came off scatheless. The matter of the Cagoulards was hushed up. Their protectors were Petain, Doriot and other reactionaries, whose reputation the French rul- ing circles protected in every way, counting on using them in the future in their shady political game. After the exposure of the plot of the Cagoulards? the Bank of Worms was removed fromactive political life for some time. Indignation of the broad masses at its pro-fascist activity was so great that the board ? ., of directors of the bank considered it Useful to maneuver and wait for "better times." These "better times" came for it after Munich. When the Munich agreement thickened on the European political horizon the clouds fore- shadowing the second world war, the tank of Worms developed a rapid activity. Its agents became habitues in the editorial offices of French newspapers which propagandized defeatist slogans of non-resistance to - 306 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 fascism. Members of the government, connected with Pdtain, Laval and other future leaders of Vichy, maintained constant contact with the bank. By the beginning of the war the Bank of Worms almost openly financed the French fascists, using the funds of French monopolies and the German in- telligence service. Simultaneously it consolidated its connections with those English and American business circles, which were very much inter- ested in its activity, directed at the support of Hitlerites and their French supporters. The old combined sympathies for the Cagoulards brought the bank together with a number of influential representatives of the London City, with whom it had established close, friendly connections. Among the Cagoulards? there were also pro-English public men: Vibeaul Fonrcaut, Paseg. The money turnover of the bank began to increase not by days, but by hours. The information of the board of directors of the bank concern- ing all state affairs permitted it to carry out the most speculative transactions. The pre-war boom, and the feverish military activity brought many million francs of profit to the bank. In 1940 the board of directors of the bank announced the increase of its fixed capital by 10 times -- from 4 million to 40 million francs. Simultaneously the bank began to participate in a number of joint-stock companies and in various trade transactions, which had no relation to its usual type of operations. For the sake of propriety, the board of directors explained that the financial basis of the bank was strengthened in connection with the increase of its authority and the expansion of its traditional operations. But nobody believed this explanation -- the operations and transactions of the bank formally concerned mainly sea transport, which after the beginning of the second world war not only did not increase, but, on the contrary, seriously decreased. After the defeat of France in the war, and the coming to power of Petain, the board of directors of the Bank of Worms openly declared its adherence to fascism. The bank began to play one of the principal roles not only in the financial, but also in the political life of Vichy. The Germans fermally sequestered that part of its property, which had fallen into their hands. This, however, did not impede its activity. When at the beginning of 1941, the cabinet of Admiral Darien came to power, the Bank of Worms, using its old connections with the Admiral, sent its representatives to all basic organs of the government of the country. The co-manager of the bank, Jean Jacques Barneau held the post of "general delegate of the French government on questions of Franco-German economic relations." He controlled the activity of all the banks, joint-stock companies and companies in the territory of Vichy. This gave him the opportunity to create especially favorable conditions for the further enrichment of the Bank of Worms. -307- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 In this same trend, to the bank was rendered every kind of assistance by its old agent PierrePouch4t, who, in the Vichy government, first held the position of Minister of Industrial Production, and then the position of Minister of Internal Affairs. Pouchei was not on the board of directors of the Bank of Worms, but was an administrator of one of the daughter enterprises of the bank -- the Japi Company. Pouch& used all the means and many opportunities which he obtained while holding the ministerial positions in order to secure advantageous "business w for the Bank of Worms. The war created an exceptionally favorable environment for vari- ous shady intrigues, which yielded fabulous profits. Barneau andPouchet, in their activity for the benefit of the Bank of Worms, helped such prominent Vichy leaders as Robert Labbe, who sub- sequently obtained, for services rendered, the post of co-manager of the board of directors of the bank; Baudouin, through whom the bank main- tained contact with the Bank of Indo-China, and others. Even "Marshall" P4tain himself rendered services to the Bank of Worms. When Laval headed the Vichy government, into his cabinet, besides the already named protdes of the bank, came the brother of the director of the bank --- Jacques Lerois Lado-uri as the Minister of Agriculture. Thus was formed the direct contact of the board of directors of the bank with the Vichy traitors, who repaid it a hundred-fold for the support which it had rendered at one time. Important posts in the Vichy government could be obtained by the pro- t4gds of the Bank of Worms only with the consent of the German occupiers, and may because during this period, the bank, just as formerly, continued to serve the German intelligence service faithfully. The energetic activity of the agents of the Bank of Worms in the Vichy government helped it, in the years of the war, to expand signifi- cantly the sphere of its operations both within France, as well as abroad. During this time it took over a number of its weak competitors) bought or by other means obtained a majority of the shares of the dlockner Coal Com- pany and the joint-stock company Union of French Exporters of Northern Europe. Representatives of the bank penetrated into the board of direc- tors of a whole series of other large banking companies and joint-stock companies in the field of navigation, trade in colonial goodst. etc. Depending upon the support and protection of the state machinery and the German occupiers, the bank obtained a multitude of special privileges in the period of power of the Vichy government. Before the landing of the Allies in Africa, the bank engaged in the export from Africa of valu- able raw materials, and the resale of the raw materials to the Germans. In this connection it succeeded in obtaining a number of advantages in theJield of trade with French overseas territories9 Since then, and up to the present, the bank has been giving special attention to banking and trade operations connected with exploitation of the natural resources of -308- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 the French colonies. Then it was successful in establishing control over the activity of all the principal enterprises of the paper industry of France, and in obtaining the exclusive right for the import into France of wood from abroad. Using the circumstance that a considerable quantity of wood was imported into France from Sweden, the bank has been obtaining a number of advantages in trade with Sweden and, in essence, has estab- lished its private control over this trade. Its traditional activity in the field of financing of ship building, trade in coal, rare metals, etc., has also been developing more than successfully. As a result, the capital of the bank during the years of the war increased several times; its connections with other large banks and monopolies increased and be- came stronger. The war helped it to enter the tight circle of the powerful French financial oligarchy. When France was liberated, at the demand of public opinion and the progressive circles of the country, an investigation was made of the Dank of Worms and its principal leaders, and its traitorous activity became known to everybody. At the end of 1944 Ippolit Worms himself was arrested, charged with collaboration, that is, of collaboration with the enemy. However Worms? old connections with Anglo-American capital, which he had established in those years when he was financing the Cagoulard movement, and then strengthened in the Vichy period, helped him to escape the pun- ishment which he deserved. Having spent some time in prison and bided his time until the passions had subsided, Worms was set free, and legal proceedings were not taken against him because of the ?lack of direct evidence." Also the majority of the other leaders of the board of direc- tors of the bank proved themselves in the right. And only its former agent -- the Vichy Minister PierrePouch4-6? was shot as a traitor. This occurred in March 1944 in Algiers. The influential friends of the bank could then still not openly come to the aid ofPouchA, guilty of the death of Chateaubriand patriots and hundreds of other soldiers who had given up their life for France. In the first years after the end of the second world war, the Bank of Worms kept in the background. The capital which it acquired during the war remained entirely at its disposal. The old connections with collaborationists soon again began to be useful, as many of them, de- pending upon the aid and support of French reactions again held secure jobs in the French state machinery. The great experience of the bank in the field of financing anti-French activity also had not been for- gotten. Soon the bank again appeared in the foreground of the political and economic life of the country. And again it began to take a most active part in the financing of subversive activities of the enemies -309? Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 of peace in France. Together with the Bank of Indo-China the banking house of Worms Supported and financed "the dirty ware in Vietnam, where it had invested significant amounts of capital. When the scandal broke because of speculation in Vietnamese piastres, the Bank of Worms, to- gether with the Bank of Indo-China, turned out to be involved in it. However when it became obvious that the war had been lost, the Bank of Worms liquidated its capital investments in Indo-China. It in particu- lar sold its share in the enterprise Distillery cl9Endochine, and then began to support the circles which stood for the transfer of the center of gravity of the French colonial policy to the African possessions. Such a position found ardent approval in the USA, where, by this time, Southern Indo-China was already considered an American possession. /Ile sphere of the use of the capital of the Bank of Worms and its activity continuously increased. Ten years after the end of the second world war its tentacles have spread literally into all parts of the French Union and of France itself. To describe completely all the nu- merous connections of, the bank with other financial and industrial groups of France, as well as all aspects of the activity of enterprises con- trolled by it, is very difficult. The real owners of France -- the financial _tycoons and monopolies -- do not like to reveal their secrets unnecessarily-, and they are secrets better guarded than the most impor- tant military objectives. However some specific data concerning indi- vidual aspects of the activity of the bank are known, and through this data it is possible to get an idea of its role in the enonomic and po- litical life of France at the present time. Judging by the official reports of the bank and other sources, operations in the field of sea transport continue to remain the special sphere of its activity. The bank has at its disposal more than 5 per- cent 9f all the French .Merchant fleet and 30 percent of the tanker fleet. By means of various companies, it controls up to 20 percent of the production in the field of shipbuilding. Its principal central en- terprise is the joint-stock company Worms and Co. registered officially as a firm which engages in shipbuilding_ trade in oil and coal, freight, and banking operations. This company has at its disposal 400 million francs as the capital with which it was chartered, and has its repre- sentativeS,i4 11 of the largest ports of the oountrL and also numerous subsidiariqP abroadt in Egypt, England Holland and other countries. At the head of the company is the very same Ippolit Worms. The former Vichy leaders Jacques Barneau and Robert Labb, and a creature of the Bank of Rothschild, a certain Raymon Minial, are co-directors of the company. In additi?n to the shares of Worms and Co., the bank owns shares in dozens of enterprises in the most diverse branches of industry. Its capital investments are especially significant in the machine-building, - 310 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 mining, and chemical industries, insurance, and foreign trade. A special place in the activity of the Bank of Worms is allotted to the exploita- tion of colenies. It controls the Companie dAfrique Noire, has a con- siderable amount of shares in the Industrial Bank of North Africa, which is controlled by the Bank of Indo-China. The Bank of Worms directs the activity of dozens of joint-stock companies in French Equatorial and Western Africa, in the Congo and Madagascar. Together with the Bank of Indo-China and other banks and monopolies, the Bank of Worms zealously protects its capital in the colonies) openly finances the war in Algeria, advancing as a violent enemy of the liberation movement of the peoples of Africa. In addition to the enterprises and companies which the Bank of Worms dominates, it also participates, through its capital, in many enterprises and companies which belong to other monopolistic and financial groups. Jointly with the Lazar Bank and the Bank of Indo-China, the Worm group participates in a number of companies which have a monopoly on public works contracts. This closely connects it with the influential officials and helps it actively to influence the state machinery of France. Jointly with the Lazar Bank, the Worms group participates in a number of insurance companies, which have a widely branched network of their rep- resentatives in all regions of France. Half of all the shares of the Terr-rar Chemical Products Company, which the Bank of Worms owns, provides it a direct contact with the in monopolistic group of Pechiney. Together with the Bank of Indo- China it controls the French market in rare and precious metals. Through the Telma Television Company in Morocco, the bank is connected with the Bloc-Dacco Group, which specializes in aircraft construction. Together with this'group the bank actively supported the government of Mendes France in 1954-1955 and, as many French newspapers asserted, directed his foreign and domestic political activity. A number of connections of the group of the Bank of Worms linked it with American capital. Under the "Marshall Plan," the bank carried out the functions of a middleman in conducting the financial operations of this plan. Jointly with the Pan-American Chemical Company, the bank controls the company "Society for the Study of the Use of Oxi-Catalysts." Together with the Dewey and Allmi Chemical Group it controls the Darex Company and2 finally, jointly with American Research -- the Safimo Com- pany. The Safimo business concern, created in 1948 on the initiative of the Bank of Worms, specializes in the introduction into industry of achievements of modern physics, including atomic energy. In the crea- tion of Safimo, together with the Bank of Worms2 participated representa- tives of a number of other important French and American monopolies. -311- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Safimo succeeded in capturing the monopoly for industrial use in France of synthetic radioactivity, and in establishing actual control over all the principal work carried out in France in the field of utilization of atomic energy both for peaceful, as well as for military purposes. The Bank of Worms, in7;erested in the development primarily of the military atomic industry, is connected with the most aggressive circles of the country, which makes appeals for the creation of the French atomic super bomb." And the interests of the bank in the field of the chemi- cal industry most closely connect it with the French military clique which attaches special significance to the activity of the Terr-rar Chemical Products Company, which is engaged in the mining and processing of uranium. This company has now created subsidiaries in India and Bra- zil. The interest of the Bank of Worms in the development in France of branches of industry which are working for war, and its old connections with foreign intelligence services, push the bank into active partici- pation in the political life of the country. However) the activity of the bank in this field is carefully veiled. The bank is obviously afraid of failures similar to those which caused it much trouble during the period of the exposure in France of the fascist leagues and the Cagou- lards. But it is difficult to conceal the activization of the bank's activity. Recently the French newspapers have been openly writing about this activization of activity. "Friends" of the bank explain this fact by "the special dynamism" of the bank. This "dynamism" referred to, is especially clearly manifested under the Mendes-France government, with which the Bank of Worms was closely connected. The post of state secretary for scientific-research work and tech- nical progress in this government was held by Andre Lonchambon, who was Simultaneously chairman of two companies whose activities are controlled and directed by the Worms Group. The members of the boards of directors of a number of firms connected with this group ---Monteil Geren de Bomon, Kayave, occupied the posts of: State Secretary for Naval Affairs, State Secretary for Foreign Affairs, and State Secretary for Economic Affairs. Other ministers of the cabinet of Mendes-France also maintained indirect connections with the Bank of Worms. It is not by chance therefore that the government of Mendes-France carried out a series of foreign and domestic policy measures which cor- responded to the interests of the group of the Bank of Worms. Namely, this government obtained the ratification by the National Assembly of the aggressive Paris pacts, proclaimed the necessity for the creation of a European armaments pool, achieved the activization of the French monopolies in French colonies. Mendes-France fought in every way for the development of the military atomic industry in France, and served as the initiator of the intensification of capital investments in the metallurgical industry. ? 312 ? Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 ? It is not by chance, evidently, that the government of E. Faure, which replaced the government of Mendes-France, continued to carry out the policy of Mendes-France, namely, in those questions in which the Bank of Worms and its partners were interested. Indeed the Bank of Worms was also con- nected by a number of direct and indirect ties with the government of Faure. In order to influence the public opinion of the country, the Bank of Worms resorted to the services of the corrupt, bourgeois press in France. In French journalistic circles, it is widely known for example, that the newspaper Information always obediently follows the "advice" of the Bank of Worms, and Paris Press en Transition is one of the most persistent pro- tectors of the interests of the bank. Many newspapers and magazines, con- nected with the largest newspaper-book trust Achet, in particular the news- paper France-Soir, in every way boosts the Worms group and glorifies its activity. ,It is not just the Bank of Worms alone which works in France for war, orienting itself in its activity upon the aggressive policy of the Anglo- American circles. But it plays one of the first violins in the political orchestra of the French financial oligarchy, which is supporting this policy. Therefore the exposure of its dangerous, indeed, subversive ac- tivities serves the cause of peace. The Do.11arvs TraVelling, Salesman A. Khazanov When the organizers of the North Atlantic Union decided to place a war-industrial base under it, and under the army of mercenaries of the dollar, planned on the basis of this union, Jean Monnet was entrusted with the task of "selling" this idea to public opinion in France, and with its realization. The choice was far from being just chance. A Frenchman by birth, Jean Monnet is a typical businessman-cosmopolite. He is well known on all the exchanges of the capitalist world -- not without reason did the reactionary American magazine Life call him "a citizen of France, London, New Yor, and Washington." The cognac manufacturer, having traveled over half the world at one time in search of markets for the sale of products from his firm, had, at the same time, much experience in diplomatic activity: he was deputy to the General Secretary of the League of Nations, in 1939 headed the French Purchasing Mission in Washington, and later served as chairman of the so-called Anglo-French Coordinating Committee in l939L-1940, during the black months for France. Finally, the reputation of international banker was firmly attached to him, since he had learned in the minutest details all the stratagems of international transactions and calculations. Monnet had close connections with the banking house of Kuhn, Loeb, and Co. on Wall Street, with John McCloy of the Rockefeller bank Chase Manhattan, with the largest banking house of the USA, the Bank of America, which be- longs to the Giannini family. - 313 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Possessing the ingratiating courtesy of the merchant, pliant with the ladies, Monnet, by evidence of the American press, at the same time is famous for the qualities of an abstractly thinking machine.* He "is devoted to excess to business.* The American press indicates also, that Monnet knows how to stay in the background -- he "operates behind the scenes and becomes a mysterious man." He is not ambitious -- the inclination for ministerial portfolios takes a back seat as compared to his striving for rounding off his bank account. Just such a man was suitable in order to convince the French people -- and not only the French people -- the rulers, that the military North Atlantic bloc needed support in the form of a wide military-indus- trial base, which would include all the countries of Western Europe. This idea subsequently obtained the name of the Schuman plan," after the French Minister of Foreign Affairs who officinlly introduced it. Biographers of Monnet assert that his main rule in life always was: "Choose the necessary person at the necessary time.* And he strictly followed this principle, in order "to make his way in the world." In his youth, and all the more, in his mature years, Monnet did not burden himself with education. He limited himself to college, which he finished in his native city Cognac. His father, the head of a cognac firm, was far from progressive in ideas and attitudes. The favorite saying ex- pressed his simple philosophy: "Any new idea is a bad idea." The end of the dreams of papa Monnet was to see cognac produced by his firm in the taverns of the whole world. Realizing this dream, papa Monnet be- gan early to put his son into the business. Before the war of 1914 young Jean traveled a great deal abroad with samples of his papails cognac -- to compete with the famous cognac firm of Martel was difficult. As the cen- ter of his trade operations the young commercial traveler chose Canada, where he succeeded in establishing quite good business relations with the Hudson Bay Company, closely connected with the bank of the Lazar brothers. LTrtoon, opp. p 4302 Connections established by the young Monnet with international finance circles proved useful to him later) when they gave him the opportunity to get the position of Minister of Trade. The young Monnet deftly used this advantageous post. Carrying on negotia- tions with Hudson Bay Company concerning a loan to France, he at the same time concluded a private transaction with the Company for the sale of cognac. In gratitude, and on behalf of the Ministry of Trade he assigned to the Hudson Bay Company the exclusive right for purchase of French goods for export. These were just the first steps of Monnet, which indicated, how- ever, how easily this man foregoes the interests of his country for the sake of personal profits. - 314 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 When the war of 1914 broke out, Monnet, using his connections with commercial circles, avoided service in the arrAy. The French Minister of Trade -- a representative of the Rothschilds -- arranged a trip for Monnet to London, where he participated in the organization of various Franco- British economic committees. In the committees there arose serious con- flicts concerning trade questions. The English especially were urgently achieving freedom of trade in France. And at this point) Monnet, oriented on "the necessary person," began to support the blockade Minister) Lord Robert Cecil in his disputes with the French. This unexpected support did not remain unnoticed by Cecil. He subsequently played a large role in Monnetgs career. In London, Monnet entered into close relations also with other peo- ple who were necessary to him -- with Arthur Salter (subsequently Lord Pert)) Henri Bonnet, who later became Ambassador of France to the USA, with Bullitt and other American representatives, who rushed to Europe after the entrance of the USA into the war. Monnet sacrificed French interests with such ease, that the Ministers of Clemenceaugs cabinet insisted upon his recall from London. Soon, however, he again returned to London: connections with foreign capital were already at that time working miracles in the bourgeois political circles of France. The war was over. The cognac manufacturer temporarily had nothing to do. But he did not have to look for work long. Creating the machin- ery for the League of Nations, Lord Cecil remembered the services) ren- dered him by Monnet at one time. He petitioned Lloyd-George and Clemen- ceau to appoint Monnet as deputy to the Secretary General of the League of Nations. There followed no objections. It was advantageous to the English that their man be in the League of Nations, a man who had al- ready proved his devotion to them. As far as Clemenceau was concerned, he answered Cecil: "I do not believe in the League of Nations and am very happy to satisfy your request." In the League of Nations, Monnet engaged in the organization of all kinds of committees and subcommittees. But this was the official side of his activities. There was also an unofficial side: the tire- less strengthening of his business connections with Englishmen and at the same time with Americans. Monnet established close contact with one of the partners of John Pierpont Morgan -- Dwight Morrow, who at one time organized the financing of Allied loans in the USA. Monnet also made friends with Acheson, the Future Secretary of State of USA. At the same time Monnet gathered about him his old London friends. Near him appeared Rene Pleven -- the future agent for "the European Army" affairs. On the whole, the activity of Monnet in the League of Nations was concentrated in all kinds of financial operations. He worked hard on the organization of loans for the Austrian Treasury and for the landowners of Poland, more exactly followers of Pilsudski, hav- ing earned for himself quite tidy commissions. It was this financing operation which gained him wide renown on Wall Street. - 315 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For 'Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 In comparison with this income, service in the machinery of the League of Nations proved not to be a very profitable occupation. Monnet left Geneva and went to his native Cognac -- the affairs of the Monnet Cognac Firm were very much shaken; the diplomat-businessman quickly set about putting things right. And in this walk of life he achieved great successes: before the second world war the firm brought him not less than a million dollar income. Having put his cognac business back on its feet, and having provided himself thereby with the necessary reserve in case of any emergencies, Monnet again set out upon international financial ventures. Now he en- tered the service of American bankers. The wide scope and grasp of Ameri- can businessmen were close to his heart. In the service of the interests of American banks and monopolies, Monnet found his true calling. Bring- ing him solid income, this service permitted him to consolidate and ex- pand the business of his own firm. American businessmen needed an efficient Frenchman -- they were playing havoc with their banking operations in Europe. Monnet was appointed director of the Paris branch of the American investment bank of Blair and Co. At the head of the bank was an American Elisha Walker. From that time Monnet began to feel at home on WI Street. He had found himself in American business circles. And when the cognac manu- facturer spoke about the business life of New 'York, in his voice were heard rapturous notes. The bank flourished. Its financial operations expanded. The director of its Paris branch also prospered. He became a shareholder of the bank. In the beginning of the 19301s this bank organized loans on the financial market for the rulers of Poland and Rumania at that time. The affairs of the bank had improved so much, that the largest California financier Giannini took notice of it. He appropriated the bank of Blair and Co 9 and created the new financial concern of Bank of America-Blair and Co. Who knows how the affairs of the new bank and Monnet would have proceeded, if all this had not ended in failure in 1931. The bank went bankrupt. But this catastrophe did not finish Monnet, or his patron Elisha Walker., They both succeeded in getting away, and Monnet was even able to preserve all his cash capital -- 3 million dollars. The resourcefulness of Monnet was appraised at its true worth. In a year, the American banks sent him to protect their interests in the liquidation of the Kreiger international match trust, which had failed. Elisha Walker became one of the directors of the American bank of Kuhn, Loeb and Co? the very same bank which had protected German interests in the USA during the entire war from 1914-1918. - 316 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 During the liquidation of the match trust, Monnet, in the capacity of liquidator of the Kreiger trust, as appointed by the Swedish govern- Tent, Successfully protected the interests of the American stockholders. After this he obtained a new appointment, again from Americans. In 1933 the son-in-law of Chiang Kai-shek -- the Minister of Finance of China -- petitioned the League of Nations to help to put right the system of Chinese finances. Upon the recommendation of the Americans in particular the bank of Morgan, Monnet was sent to Nanking. Here he met his old friends of the League of Nations: Henri Bonnet, Arthur Salter, Joseph Avenol. With their participation, there was created in China the China Finance Development Corporation. This company had the task of attracting American capital for the construction of railroads and electric power enterprises, and for the exploitation of the raw material resources of China. In other words, Monnet cleared the way for the penetration of American capital into China, and the enslavement of the Chinese people. Trying at least partially to protect themselves against American expansion,0 the Chinese bankers set up the condition: not .a single con- struction work could be carried out without Chinese capital investments. Monnet assumed the task of settling this question. He went to New York. Together with the American George Marnain he organized there a Marnain- Monnet Company for obtaining loans in Shanghai, New York, London, and Paris for tbe financing of construction work in China. Thus? Chinese capital was dissolved in the total sum of capital investments and enterprises constructed by these funds actually were not under the con- trol of the Chinese powers. Of course, the largest amounts of capital were invested by Americans, which made them in essence the chief owners of the enterprises constructed. Monnet did not select his companion Marnain by chance. Through him he found the opportunity to expand his business connections. At one time Marnain was the director of the large bank of Lee Higginson. For a long time the bank held an important position on Wall Street; it participated in the financing of Germany after the first world war. It was one of those American banks which aided the revival of the mili- tary power of Germany which had been destroyed in the first world war. It is true that after 1931, in connection with the severe economic crisis, Marnain had to reduce the scales of his operations for the financing of Germany, but he never ceased to show interest in its financial system. When the second world war broke out,, Daladier and Chamberlin appointed Monnet to the post of chairman of the Franco-British com- mittee, located in London. Here Monnet again participated in danger- ous intrigues against the interests of France. By evidence of the -317- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 American press, he was striving to realize "economic integration," that is, the merging of the economic resources of France with those of England. Under conditions when the war was being carried on at the gates of France, and later even on her own territory, such a merger was fraught with great danger for France. As one of the American magazines indicated, these projects led to a "still bolder idea -- the idea of political union." Monnet carried on negotiations in London for the unification of France and England into a joint French-British alliance. This project originated in London at the time when France was in a difficult posi- tion in the second world war, and the City magnates intended to use this position of France in order to appropriate its overseas possessions and its navy. Jean Monnet actively helped the English realize this plan, whose failure it is quite impossible to attribute to a lack of effort on his part. After the capitulation of France, Monnet went to the USA with the British Purchasing Mission. In Washington he settled down, just as much at home as in France. In a comfortable _private house on Foxhall Road, in one of the aristocratic outskirts of the American capitol, appeared representatives of the higher circles -- if a person has many dollars, it is possible to forgive him his foreign extraction. Working for the English, Monnet also remained a servant of the Americans. When the Allies landed in North Africa, Monnet was sent by the American circles to investigate the situation in Morocco, Algiers and Tunis. Then he returned to Washington for the management of the French Purchasing Mission. There he remained until the very end of the war. He returned to France only after an end had been put to Hit- ler. France had greatly suffered from the war. Her economy was seri- ously undermined and was in need of rehabilitation and reconstruction. And suddenly this Jean Monnet -- who was the man who had sometimes served the English, sometimes the American banks and trusts, the man whose entire activity had been directed against the interests of his own country, and had threatened it with great damage -- this very same Monnet appeared as the author of the plan of reconstruction" of the French state. Soon afterwards it turned out that this plan was directed, first of all, towards restoration of the positions of those French banks and trusts which had wide international connections and interests beyond the boundaries of the country. The main burdens connected with the restoration, were placed on the shoulders of the workers. And the banks and trusts continued to enter large profits in the balances on their books. As concerns the fortunes of the French economy, "the two hundred families" who controlled France treated them very indifferently. They were concerned only with whether they would get their own profits. - 318 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Disregard of the national interests of the country is illustrated by the notorious "Marshall Plan." It brought great profits not only to the American bankers, but also to their French brothers in business. It is completely clear that Monnet -- agent of international finance cir- cles -- promoted in every way the implementation of the Marshall Plan in France. On the basis of this plan, capital was invested only in those enterprises which were in the hands of a tight little group of French monopolists, which often caused damage to the national economy as a whole. But the most perfidious stab in the back of France which Monnet and his colleagues inflicted, was the plan for a European Union of Coal and Steel. The idea is- far from new. It originated in Germany. As far back as 1931, the German industrialist Hugo Stinnes had expressed it; he had dreamed of a "union" of Lorraine ore and Ruhr coke. Hitler had tried to realize this idea by the force of arms. After the complete defeat of the Hitler hordes, the idea of such a "union" migrated to the USA.' In 1947 John Foster Dulles declared that the Ruhr basin with its coal/ industrial and human resources was the economic center of Western Europe. The original version of the plan, proposed by Schuman in May 1950, stipulated participation in it not only of Western Germany, France, Italy and Benelux (that is, Belgium, Holland, and Luxemburg), but England also. The plan amounted to the creation of a gigantic international monopolistic concern, consolidating the metallurgical, iron-ore and coal industries of these cQuAtrios. The businessmen of the London City rei'used to partici- pate in it, but this did not stop the author of the plan. In April 1951 the treaty for the creation of the so-called European Union of Coal and Steel was signed, and went into effect in August 1952. Jean Monnet be- came the chairman of the so-called supreme organ of the European Union of Coal and Steel. e rulers of France, disguising the, real purposes of the plans assured the French that the EuropeanUnion of Coal and Steel would bring great advantages to French industry and to the economy as a whole, They did nOt.conceal their intention to be the leading, determining force in this union. ,ince ..that time more than four years have passed, That fruits has France reaped? That has her entrance into the European Union of Coal and Steel brought her? The -Schuman Plan did, damage to the French economy. Many . coal-metallurgical regions of the country, primarily Nord and Pas-de Calais, were hard hit. - 319 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 In accordance with the Schuman Plan, during the first year of its operation many mines were closed as "unprofitable.? The coal trade was doing poorly. The European Union of Coal and Steel established uniform railroad rates. As a result of this "standardization" it turned out to be more advantageous for the Lorraine metallurgical trusts to ship coal from the Ruhr. And they refused to buy domestic coal. The picture in the French steel industry was no less joyless. Steel production, as is well-known, is indissolubly connected with coal. The coal-coking industry of France, in comparison with the Ruhr, was always more backward. It was in need of serious support. Within the limits of the European Union of Coal and Steel, France not only did not receive this support, but, on the contrary, immediately proved defenseless as compared to the more powerful Ruhr magnates. The Ruhr coal trusts had at their disposal the largest deposits of high grade coking coals in Western Europe. There were not any high grade coking coals in France. France, experiencing an acute shortage of coking coals, became completely dependent upon the Ruhr coal trusts. It is not by chance that the French steel industry all these years has been at a standstill, whereas their Western German competitors have been increasing the tempos of production. In 1957 the smelting of steel in West Germany exceeded the produc- tion of steel in France by two times. Such a situation did not arise accidentally. The European Union of Coal and Steel opened wide opportunities to the monopolies of West German industry. Indeed, with the coming into effect of the Schuman Plan, all limitations in regard to the smelting of steel and production capacities lost their meaning. Entrepreneurs did not waste any time; they energeti- cally went to work, about which the newspaper Frankfurter Algemeine Zeitung wrote not without exultation. It was the organ of the West Ger- man capitalist circles. "Prom the moment of the formation of the Union of Coal and Steel," the newspaper declared, "West Germany was liberated from the fetters which had artificially kept the reconstruction of our metallurgical industry on a low level. Our metallurgical industry used the initiative which it thus obtained. In 2954 it produced the same quantity of steel as it had produced in 1938. This year 1955 A. Khazanov) the prewar level will be exceeded for the first time." The newspaper; as is known, did not err in these predictions. The assertions, that the European Union of Coal and Steel would be able to control and limit the development of the West German war indus- try, turned out to be idle talk. On the contrary, by means of the Euro- pean Union of Coal and Steel West Germany began to intensify its war industrial potential without difficulty. -320- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 This completely suited both the West German militarists as well as certain circles across the ocean) who considered Nest Germany the military industrial base of NATO. But such a situation presented a serious threat for France. And this real threat was created by such people as Jean Monnet. It is true that at a certain stage, he abandoned these affairs, having given up his power as head of the European Union of Coal and Steel. But 3?ave already seen that this is the usual Monnet method. Having ful- filled the immediate mission of his bosses, having set things going, he then withdrew into the background, not ceasing to observe behind the scenes and to pull one string or another opportunely. Monnet was not disturbed by the serious difficulties which the French economy was ex- periencing. He could not care less -- he had plenty of deposits in Ameri- can banks, even if all of France were to blow up. He was engaged in the realization of the scheme -- to transform the European Union of Coal and Steel into the nucleus offla United Europe." "The European Union of Coal and Steel," Jean'Monnet declared at one time in a public speech, "is an attempt to attain political results through economic means." What political results did this commercial traveler of "big business" achieve? The magazine Perspective told about this with sufficient clarity. "Some deliberately, others not being conscious of this," it wrote, "trans- formed the European Union of Coal and Steel into a tool, as a result of which six countries of Western Europe soon formed a sacred empire under the American protectorate. The European Union of Goal and Steel was trans- formed into a sword directed against the USSR) covering itself by the existing necessity of organizing the struggle against communism, of organ- izing a crusade to the East." This was the attractiveness of this plan for Monnet, and those whom he served. As concerns "the crusade to the East," Mr. Monnet, still, as the saying goes, proceeded on the basis of "we shall see what we shall see." At that time it was not easy to arrange such crusades. The experience of events of the recent past very clearly indicated that attempts of imperialists to organize anti-national conspiracies and military adven- tures end up in disgraceful failure. There is hardly anyone who is not clear on who was guilty of aggres- sion against Egypt, and of the rise of the counter-revolutionary revolt in Hungary. This was a unified plan, conceived on a wide scale. Its authors meant, in two blows, to change to their own benefit the situation on the world scene. However, they did not calculate correctly) having overestimated their forces and having underestimated the forces of the camp of socialism and also the forces of the national-liberation move- ment in the countries of the East. They obviously miscalculated and received a two-fold crushing blow. The lessons of the adventure in the -321- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Arab East indicate that the colonizers suffered a military, economic, and moral-political defeat. In Hungary the people, under the leadership of the Hungarian Socialist Labor Party and the Revolutionary Worker-Peasants Government, with the aid of the Soviet Union quickly defeated the counter- revolutionary conspirators. The defeat of the counter-revolutionary re- volt in Hungary, which was inspired from without; and also the defeat of the aggressor in Egypt meant the great failure of the imperialistic course of the policy "from the position of strength." This is the fate of some of "the campaigns" about which Mr. Monnet and company had dreamed. These dreams were fantastic. And here is the stark reality: French industry on the decline, Italian metallurgy almost completely ruined; instead of "the general market," there resulted the closed market of West German monopolies and their senior American partners; monopolies of West Germany got into the overseas possessions of France, and especially into North Africa. Under heart-rending wails about the contrived *communist threat," France was not only fleeced, but her national interests were subordinated to the interests of West German revanchism. And Jean Monnet was one of the chief organizers of such a deplorable process for France. Having placed upon France the yoke of the European Union of Coal and Steel, Monnet and people of his type set about petitioning for the organi- zation of the so-called "united market" and "Euratom." All of those same six countries -- the participants of the Schuman Plan, including France also, had to go into either of these organizations. In essence, the term "united market" implies the elimination of economic boundaries between these six states. The participants of the union are called upon to give up some fundamental functions of state sovereignty, having yielded them to "the super-national organs of the union." Behind these organs, of course, stand the West German monopolies. The "general market" opens for West Germany, which possesses a powerful economic potential) the opportunity to establish its hegemony in Western Europe. The matter of "Euratom" is still more serious. Of course, it is disguised by every possible decent mask. This) it is said, is collabora- tion of the six countries in the interests of the peaceful use of atomic energy. Actually it is a completely different issue. The treaty con- cerning the creation of "Euratom" stipulates the unification of atomic research, the production of atomic raw material? the use of atomic energy, and the joint financing of enterprises and plants in this field. It must be taken into consideration that West Germany joined the Union, but has no atomic raw material of its own; and on the other hand, France and Belgium joined the Union, and they do possess their own atomic raw material. For whom, then, is this collaboration advantageous? The West German revanchists will have access to atomic raw material and actu- ally will be freed from any limitations in the field of production of atomic weapons. ? 322 ? Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 -Jean Monnet participated actively in the creation of *Euratom" he had bete 'a practiced hand at such matters a lOng time age and had proved himself a skillful organizer. The French; Who take a sober view of the sitiation) with a shudder watch? the way in which thiS interna- tional commercial traveler exerts himself in order to put into the hands of the inveterate enemy of the French nation -- West German imperialism -- the weapon of mass destruction. Monnet betrayed the interest ok his country many times; his present activities cannot surprise anyone. He proceeds by a method) which is complete4 logical for such an operator. But this infamous method has led to the downfall of more than one French politician. The people of France and Monnet are not going the same way. BELGIUM "There is nothing more frightening than ?a businessman, who has set out for. profit.* Golbach The "Common Denominator of Mr. Spaak M0 Sturua -Some American journalists once asked Paul Henri Spaak what the secret of hi S political career was. The secret consists of *patience and an ar- dent desire to find the common denominator," Paul Henri answered without a trace of irony. Spaak possesses to perfection this wisdom, which Saltykov-Shchedrtri maliciously and accurately nicknamed by the famous words -- to act "in conformity with baseness." With the ease and effortlessness of the pro- fessional illusioner he reduces to "a common denoMinator" the ultra- patriotic tirades, and trades in the sovereignty of Belgium, "the social- ist convictions" and the appetites of the colonizer, the verbiage about peace, and the possession of shares of military concerns. At the dawn of his hazy political youth) Mr. Spaak was considered an inveterate rebel -- "a left" socialist. He even practiced law) de- fending in the courts people prosecuted for political offenCes against capitalism. The peak of *the revolutionary" activity of the young socialist was his participation in a street demonstration at the building of the con- servative newspaper Nation Beige. Passing the editorial offices of this newspaper, he broke the glass of one of the windows with a cane. , "The revolutionary act" of Spaak did not cause a Belgian reaction, or the slightest damage. It easily recovered from this blow -- the editorial office of Nation Beige placed an iron grating on the windows. Even up to the present time, it is pointed out to tourists. It is called "the Spaak grating." -323-- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 But the period of "storm and stress" was short. The experience con- verted Spaak into a socialist, who adhered to the constitution," wrote the English journalist Mac Hicky. Only the black wide-brimmed hat, looked upon as a sign of radicalism in Western Europe, of its right-wing social- ist owner reminded one of the former convictions of this socialist. In 19,37 Spaak became Minister of Foreign Affairs of Belgium. He obtained the ministerial portfolio during the years when, over Europe, the we fires had started. The Rhine area was remilitarized, the Saar was annexed to Germany, Austria stood on the threshold of the auschloss. In Spain, Hitler and Mussolini, helping Franco conduct war against the Spanish people, were rehearsing the conquest of Europe. The Ministries of Foreign Affairs in London and Paris, counting on the fact that Hitler would turn to the east, not only did not hamper the raving lance-corporal, but, on the contrary, roused his appetites. Austria and Czechoslovakia were absorbed by the German Third Empire. The Munich capitulation became a prelude to the capitulation of Compeigne forest. The second world war broke out. At first "a strange war," then a frightful war. :t 'was Paul Henri Spaak doing during these years? According to Spaak himself, he was trying to convert Belgium into a second Switzerland and 0;* this purpose had achieved recognition of Belgium's constant neu- trality from Germany. But this was obviously ostrich feather politics. Who does not remember that the Kaiser's Germany had come forward as one of the guarantors of Belgium's neutrality? This by no means prevented Wilhelm II frop giving the order to invade Belgium, and to occupy it. Justifying the violation of neutrality, the German government of that time declar9d to the Belgian government that France was a dangerous threat to Belgium. In view of the inability of Belgium to protect herself independ- ently from this threat, it was said in the statement, German armed forces would enter Belgian territory. In this pert document, composed, inci- dentally, according to that inveterate militarist General von Moltke, ? only as a mockery, Belgium was guaranteed "integrity and independence." ?gartoon opp. p /44g Everyone remembers how these "guarantees" for Belgium turned out. Also the director of her foreign policy, Spaak, had to remember this. Nevertheless he humbly begged for new uguaranteesu from Hitler's Minister of Foreign Affairs Ribbentrop. The entreaties were heard in Berlin. Hitler gave Belgium "solemn guarantees" of the inviolability and respect of its neutrality. But the German General Staff received the mission to work out a plan, of attack upon this coun- try. The preparation Of paper guarantees proceeded at full speed. Soon Spaak'inserted into his diplomatic assets new guarantees, the guarantees of the England and France who had been at Munich. s ?324? Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Seeking after illusory guarantees, Spaak exerted every effort for the frustration of the real guarantees of security, included in the effi- cient system of collective security, whose creation the Soviet Union had achieved at that time. Speaking on 11 May 1954 at the Geneva Conference) the Belgian Minister of Foreign Affairs pathetically exclaimed: "Namely here, in Geneva...I was witness to the destruction of collective security. I shall never forget this -- the destruction of collective security was the prelude to the second world war." He preferred to pass over in silence the fact that his own role in this shameful matter went far beyond the limits of a detached onlooker. It suffices to point out, that Spaak was the first to recognize the fascist government of Franco, and actively par- ticipated in the conversion of the League of Nations into a farces The reckoning soon came. It was in the person of Beulow-Shvante, the German Ambassador in Brussels. Beulow-Shvante came to the Belgian Ministry of Foreign Affairs and read a note on the invasion of Belgium by Germany. This occurred several hours after units of the Hitler Wermacht crossed the Belgian border, having trampled on "the guarantees," which had been begged by Speak at one time. Having heard out Beulow-Shvante, Spaak burst into a verbose mono- logue. He branded Germany as ungrateful and even showed the Ambassador the door. But not without reason do they say about Speak, that, "when a crisis comes, the thinker in him yields to the man of action." Hav- ing showed Hitlerls Ambassador the door, he became frightened. And hav- ing become frightened, he began to act. According to the evidence of the former commander of the Hitler army in Belgium, General FAlkenkhausen) Spaak offered his services to the Hitler command. However his "offers of collaboration" were declined. Falkenkhausen preferred a pure Belgian Quisling -- the leader of the "Reichists," De Grelle. Speak left Belgium, since he had nothing to do. Turned away by Hitler and Shown much kindness in London, he nevertheless preferred) for the time being, to mark time) to back two horses -- the outcome of the war was still not determined. Speaking on 6 December 1940 on the London radio) he appealed to the Belgians to keep, their loyalty to King Leopold who had betrayed his country, and had turned into an inveterate col- laborationist. "Everyone, who had taken an oath of loyalty to the king)" overstraining his voice, Spaak laid down the law) "must keep this oath." But Hitlers Germany was defeated. Spaak returned to Brussels. Now there appeared a new rival for him, still more dangerous than the un- lucky De Grelle. This was Mr. Van Zeeland. In Belgium Spaak and Van Zeeland were called "the brothers-enemies.* The French magazine Democracy- Nouvelle wrote about them: "In Belgium two men especially are obtaining the post of 'honest broker' of the Americans: Spaak and Van Zeeland." 325 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 The struggle of Spaak with Van Zeeland was not easy. Not for nothing do they consider, in the USA, that Van Zeeland is 'the most American of Belgian statesmen.? However the rivalry of these "brother-enemies" ended up with the victory of Spaak. Since then he definitively and irrevocably bound his fate with American imperialism, having become its faithful and obedient servant. Zpaak was born in Belgium. But "Belgium is too small for such a big operator, as Speak," the London radio once noted. In this assertion, there is a speck of truth -- in Belgium there is no person who would be able to permit himself the luxury of buying Speak. This luxury was accessible for the gentlemen of Washington. Speak became an active executor of the schemes of the American imperi- alists, who were striving to deprive the European countries of their na- tional sovereignty and to convert all of Europe into the forty-ninth State of Ameriea, Devoid of "national prejudices," Spaak first of all worked on Belgium. How much-eWert was expended by him in order to draw this country into Western European "defense" groups A "The socialist, who adheres to the constitution," took an active part in castrating the Belgian constitution. Articles 25 and 68 were radically revised. These articles deal with the national sovereignty of Belgium, the fundamental rights of the nation, its sovereign power. The Minister of Internal Affairs of Belgium, at that time Moyerson, frankly recognized, that this revision had been undertaken for the purpose of the establishment of "super national power' within the limits of the "European defense" organization. Spaak was one of the first to vote for the actual elimination of the constitution and the sovereignty of Belgium. The voting in parliament did not reflect, of course, the real opinion of the Belgian people. In a special study of public opinion on "the West German defense organization," 70 percent of those asked declared that they were against such an organization. That was the real will of the Belgian people. Displaying the sovereignty of Belgium for sale, Speak was deal- ing in something which did not belong to him. Having forgotten about the Hohenzollern "guarantees" and about his personal experience with the Hitler "guarantees,' Spaak again tried to drag Belgium onto a path fraught with catastrophe, full of guarantees- traps. This time it concerns the "guarantees" of Adenauer. With undis- guised admiration he cites the words of the Bonn Chancellor that "the European defense association must be the starting point for the system of defense, which takes into consideration the need of all European na- tions for security." The Belgian Minister, moreover, was deliberately shutting his eyes to the aggressive preparations of the West German - 326 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 militarists. He did not want to remember, that during the years of the second world war the German General Staff had sent barges to the Belgian ports whose dark holds were crowded with soldiers of the Wermacht. At the appointed hour they stabbed the Belgian defense forces in the back. Having ratified the treaty concerning the "European Army," and after its failure, the Paris agreements, the rulers of Belgium thus actually sanctioned the future occupation of its territory by the West German Wermacht that has now been created. Speaking at one time in parliament on the question of ratification of the treaty concerning "the European Army," the Minister of National Defense de Greve had to admit, that the Belgians would have to agree, possibly, to the merger of their di- visions with German divisions." De Greve confirmed that this could lead to the placing of German troops in Belgium. The Bonn neo-Wermacht would not even need barges -- the Belgian Speaks were ready themselves to throw open the doors to the German di- visions. * * * In October 19531 in the Hague, there was held a meeting of the regu- lar congress of the so-called movement for the,unification of Europe. At this congress occurred the solemn handing over of "European passport po9 l" to Paul Henri Spaak, chairman of the assembly of "the European Union of Coal and Steel." Spaak completely deserved this "license no. 1 for trading in sover- eignty." "The organized international life, which we are achieving," he "theorizes," "cannot be attained, if we do not destroy the dogma of absolute state sovereignty. A real international organization and absolute national sovereignty are contradictory and irreconcilable con- cepts." Sovereignty, Spaak said authoritatively, is anarchy; the rejec- tion of sovereignty is order. Spaak began to achieve "the organized international life" the day after the defeat of Hitlerge Germany. He became one of the creators of the movement for "the Union of Europe." It was he who proposed the crea- tion of "a European Council" for the drawing up of a constitution of the future "European Federation." The name of Spaak invariably figures among the inventors of all these artificial constructions: "United Europe," "the European Council," "the European Political Association," "Little Europe," "the European Union of Coal and Steel," "the Social Movement for the Creation of the United States of Europe," "the European Union for Rapprochement with the USA," "the European Defense Association." In spite of the variety of labels, they all pursue the very same goal -- to deprive the countries of Western Europe of national sovereignty and inde- pendence. - 327 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Spaak infinitely hates the state boundaries of the Western European countries -- indeed they impede free American penetration. "Down with fifteen state boundaries," he proclaimed. For him only one boundary was important. "The boundary of the USA," declared Spaak: "passes through Europe." "We should have gotten rid of the prejudices and old- fashioned traditions a long time ago...The attempt to coordinate the indi- vidual activity of 15 different countries -- is a completely inadequate method,.." What kind of a method did Spaak consider "adequate"? This is the kind of method: "We shall not solve the vitally important problem of security until we develop a plan and until we create. ..a united army of the countries of the Atlantic treaty. We need, as soon as possible, a man who has much experience, influence and prestige, to be at the head of this work....He would not only be the Commander-in-Chief, but, if it can be expressed thus, also the general war minister for these countries." General Eisenhower was such a "war minister," then General Ridgeway became "war minister." Then General Gruenther had the role of military governor-general of Western Europe. Now General Norstad in this same role is functioning as the regular American Commander of the Armed Forces of NATO. Spaak was obsequiously frank in the pages of the reputable Ameri- can magazine Foreign Affairs: "I always have wanted the United States to use its power and its interest in the welfare of Europe, in order to give our continent a shove towards unification." But what a unionl "I should welcome the manifestation of even more boldness," he recklessly exclaimed in that same magazine. And, there is no denying the consistency of the Belgian minister- socialist -- if instead of 15 European boundaries there must exist one -- the American, if instead of 15 European currencies there must remain one -- also the American, then is it not logical to offer all of these 15 European countries also one master -- America? These glorifications in honor of the American Uncle Sam make up one of the basic melodies of the propagandistic street-organ of the Belgian socialist. Having gone to the shores of the Hudson, where, according to his own declaration he liked everything except "the very monotonous food," Spaak became very enthusiastic over "the changes in the class structure" of the USA. It turns out that in the USA "millionaires are gradually disappearing, and capitalism is achieving, in reality, socialist ends." But in spite of this demagogy, the workers of Europe more and more distinctly understand, that in the USA the millionaires are not disap- pearing, but rather the democratic freedoms are disappearing, that the bosses of Wall Street are striving towards the achievement not of social- ist goals, but of world supremacy. - 328 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Spaak was having difficulties "In Western Europe there is notice- able an anti-American trend, which in my opinion, has become intensified recently," he complained in an interview in the newspaper pagbiadet. Speaking at one of the "Europe-USA" congresses, Spaak expressed himself far more frankly: "Several million Europeans," he said, "subjected to doubt and mockery the values in which we believe more than in anything else....For the majority of Europe, America means Chicago gangsters and New York multi-millionaires. Our task is to show the likeable face of America." But even that propagandist cosmetic, with which Spaak tried to make up the face of monopolistic America, did not make it more attrac- tive. * * * With unusual ease Spaak sacrificed what he himself called "the vital interests of the Europeans." In the American magazine Foreign Affairs, he wrote: "Europe must be reconstructed; but the reconstruc- tion of Europe means at first the infringement of some lawful interests. Here and there it may create, for some time, unemployment. It may mean the destruction of individual personalities and some groups." Speaking in 1952 at the Hague, Spaak called for "the sacrifice of European pride, sovereignty, and material sacrifices." Let no one be surprised at this sham altruism: the reconstruction of Europe for which Spaak was calling, would not infringe upon his own interests. Whomever unemployment and ruin might threaten, they would not threaten Spaak. Waiving the sovereignty of his homeland, he did not make any personal sacrifices. On the contrary, he made a fortune. Here are the facts. Before the beginning of the debates in the special commission created in Belgium to study the question of the ratification of the treaty for "the European Defense Association," Cowen, the Ambassador of the USA in Brussels, gave Spaak to understand that the Belgian export firms with which Spaak was closely connected, would receive profitable American orders if the Belgian parliament would ratify the treaty in 1953. The deal went through? SpaalOs firms received profitable orders. When the American intervention in Korea began, Spaak was beside himself with joy. "I approve of the action of the United States in Korea," said he, transported with enthusiasm. Five years later, speak- ing at the Geneva Conference on the Korean Question, Spaak declared with affected disinterestedness: "In such a war as the warmn Korea, there is nothing for us to defend except principles." Is that really the case, Mr. Speak? A careful study of some aspects of his biography indicates that "the principles" of this man lie in his safe in the form of a considerable packet of shares of the National Armaments Plant. ? 329 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 The arms dealers and their salesmen of the government attained their end -- the conference was frustrated. The stockholders of the National Armaments Plant continued to make a fortune in the production of weapons of death and destruction. The events of those years throw a bright light upon the sources of friendship of the Armaments Plant and its stockholder Spaak with American military firms and the US State Department. This friendship, mixed in the yeast of the international tension, became especially close during the years of the Korean adventure of Ameri- can imperialism. It is continuing to become stronger even now. It is growing together with the increase of the price of shares of the National Armaments Plant. In 1948 a share of this concern cost 600 francs; after six years it was worth 3,000 francs. In 1948-1949 the dividend of the National Armaments Plant amounted to 65 francs per each share. After five years it reached 1925. francs, This is where it is necessary to search for those "principles," in whose defense Mr, Spaak drove his countrymen to Korea, The specialists recognized the Belgian rifle, produced by the National Armaments Plant as the best, and it was accepted as the equipment of the forces of the North Atlantic bloc. This decision caused a sharp influx of orders to the plant. The people, to whom this decision was whispered in time, be- came fabulously rich in a short period. Among those who became rich was Paul Henri Spaak -- one of the principal stockholders of the National Armaments Plant in Herstal. How did the "socialist" Spaak become converted into a large stock- holder of a war enterprise? The Berlin evening paper BTS Am Abend wrote that a large cash bonus received by Spaak for his active support of "the Schuman Plan" helped him to make his way among the arms manufacturers, Thus Spaak acquired on the Brussels Exchange shares of the National Arma- ments Plant. The owners of the plant were glad to get for themselves such a "socialist" as a partner. The close connections of Spaak with the over- seas organizations of the arms race promised them large war orders, critical war materials, credits. Not just the one company made use of Spaakus services. Spaak also obtained large American orders for the Dille Automobile Company, of which he was also a stockholder. Spaak made use of the American sops not only for personal enrich- ment. The center of "the European movement," which was in Brussels and directed by the Belgian Socialist Party, was financed from American loans obtained by "the European Union of Coal and Steel." -331- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 "The American war orders are a bridge, thrown between our two conti- nents," the former Prime Minister of Belgium Van Gutt once declared in Ghent at the international exhibition on the occasion of "American Day." In Belgium this bridge -- the heavy burden of the armaments race -- lies on the Shoulders of Belgian workers. The military expenditures of Belgium amount to the huge figure of 21 billion francs. Speaking on the radio, The Minister of Finance of Belgium declared: "From Brussels to Malin is 21 kilometers. If there were placed along the road from Brussels to the Great SquAre of Malines at each ten centimeters a packet of 100 1,000 franc notes, then the total sum of 21 billion francs would be obtained." How many of these packets would fall to the lot of Mr. Spaak? When the newspaper Drapeau Rouge suggested that he tell about his connections with the National Armaments Plant, Spaak preferred to keep silent. ,But this silence was more eloquent than many words. The fact is that, in dealing in European sovereignty and earning for himself popu- larity with the American Uncle Sam, Spaak was reducing everything to "a common denominator" -- to war. -"The approaching peace worries me," Spaak frankly said during the second world war. With time, this anxiety developed into a real mania. "Korea is only an episode, a warning that it is necessary to hurry...," declared Spaak. And the aggressors began to hurry. The cities and villages of Egypt burst into flame, The tragedy of Port Said shook the world. All humanity held up to shame the interventionists-colonizers who had in- vaded Egyptian territory. The overwhelming majority of the countries -- the members of the UN -- censured the actions of the Anglo-Franco Israeli aggressors. But Belgium was not among them. Not because the Belgian people approved of this base aggression, but because Spaak represented Belgium. The lechery of "the demagogue in dinner-jacket" (thus Spaakos political opponents had nicknamed him) reached its peak at the Eleventh Session of the UN General Assembly. Headlong, he rushed to the tribune to save his bosses, who had entangled themselves and exposed themselves before the whole world. Spaak, foaming at the mouth, spoke in support of the colonizers from the high tribune of the Assembly. In order to divert attention from this disgraceful colonizer ad- venture of his partners, Spaak? together with his protector -- the USA -- undertook a roundabout maneuver. Onto the agenda of the UN General Assembly was juggled the provocative "Hungarian question." How Spaak excelled in anti-Soviet slander, how he openly fraternized with the Hungarian fascist-counterrevolutionaries, how he tried to slander and -332- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 cast slurs upon the great camp of socialism, and at the very same time :whitewash the executioners who had organized the slaughter in the streets ofJiludapest!, Acting "in eonformity with low-down action," Spaak indeed surpassed himself. This did not pass unnoticed. 'In December 19560 at the regular meeting of the NATO council in Paris, the Belgian socialist Paul Henri Spaak was chosen Secretary General of the North Atlantic bloc. Even the history of right-wing socialism, a history which is not so poor in facts of desertion, degeneration, and grovelling before capital, does not remember such an individoe1.0 In appointing Spaak as Secretary General of NATO0 Washington was counting on galvanizing the idea of "European unity." Not for nothing was the session of the Council of the Atlantic bloc convened at the same time as the Conference of the Western European Union in Paris. For the Washington bosses of NATO the subordination of the armies to the Pentagon, the militarization of the economies of Western Europe were not enough. They wanted to convert these countries into colonies of the USA, deprived of sovereignty, independence, sovereign state independence. For this all, new attempts were undertaken to galvanize the still-born Western European Union. Who other than Spaak, the holder of "European passport no. 1," would be entrusted with this mission? The appointment to the new post brought out in Spaak a new fit of hatred for sovereignty, of servility before the American monopolies. In his very first public address, the newly brought-to-light Secretary Gen- eral of NATO declared that he did not see any contradiction in the dec- laration by Dullest that all the members of the North Atlantic pact must come to an agreement with the USA about their policy and must consult with the USA, but that the United States does not have to do this in its relations with members of NATO. "Ultimately," pathetically exclaimed Speak, "it would be impossible to expect that such a country as the USA, with its international obligations, would promis4 to consult with such a small country as Belgium on every problem which it might encounter in some region of the earth." It is difficult to say, what there is more of in this declaration of Spaak servile obsequiousness before the American Uncle Sam, or lordly contempt for his own country. , Having become secretary General of NATO, Spaak started a new in -- this time with the atomic bomb. Not just anywhere, but in Bonn on the eve of the MAY 1957 session of the Gouncil,of the Atlantic Union, he ted the journalists, that "the huge destructive power of the nuclear weapon is for us the best guarantee of peace." ...A guarantee again. Here indeed: can the leopard change his spots? -333- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 At the same time, Spaak with even greater zeal led the attack against the sovereignty of the Western European countries. He was an indispensable participant of all the conferences for the drawing up of treaties for the creation of "Euratom" and "the total European market." Speak could be seen at Lancaster House in London, at the conference of the Ministers of Foreign Affairs of the six countries -- the future participants of these unions. Then the ministers and the premiers attached to them met at the Matignon Hotel in Paris. Finally, the conspirators against the interests of Europe took shelter in the castle of Valle Duchesse in Belgium. There under the chairmanship of Spaak were drawn up coordinated plans, which were signed later in Rome. "We are happy, as parents at the birth of a child," he hastened to inform the representatives of the press. The participants of the confer- ence at the palace of Valle Duchesse chose Spaak as head of the interim committee for the acceleration of work for the putting into effect of the treaties for the creation of "Euratom" and "the total European market." -1Thus "the socialist," the Secretary General of the war bloc of im- perialists headed by the USA, Spaak, reduced to an American "common de- nominator" the Western European countries. ASIA AND AFRICA In the past, the majority of the countries ,of Asia and Africa were colonies and semi-colonies of imperialism, its home fronts in the preparation ,and conducting of wars; however, at the present time, they have been converted into a force, oppos- ing colonialism and wars, standing for peaceful coexistence 0.. the imperialists with all their forces Are trying to stop this current -- the movement for national independence. However, it is impossible to stop it." -- Political report of the Central Committee of the Communist Party of China to the Eighth All-Chinese Party Congress. The Last Comprador of China D. Zaslavskiy The years after the second world war signified the universal- historical process of the spreading of socialism and the formation of new socialist States, the downfall of the century-old colonial syStem. This was the most profound crisis of capitalism, the last stage of imperialism ?334? Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Denying the regularity of the historic process, the capitalists nour- ish hopes for the restoration of the capitalist and colonial system. For this reason, the ruling circles of the USA and England, and behind them also other imperialists are striving to preserve everything that still remained from the colonial world. One such fragment of colonialism is the Island of Taiwan. Here, established firmly, is Chiang Kai-shek, the recollection of whom would have been blotted out in China and in the whole world, if he had not been made a pawn in the large and gambling game of war. Chiang Kai-shek personifies the history of the parasitic existence and inglorious downfRil of the peculiar variety of colonial bourgeoisie the,compradors, . This Class was the support of the imperialists in the colonies. It suffered,a crushing defeat in the national liberation wars of the peoples. To indicate how the political career of Chiang Kai-shek rose in a bloody fog and how it set, means to reveal those historic premises which determined ,the greatest historic victory of the Chinese people, of the Comml,141.0 arty of China, the liberation of the great Chinese state from the y6ke of the imperialists of England, Japan, and USA, and of internal reaction. Chiang Kai-shek himself was a complete nonentity. He has re- mained... nonentity up to the present. But in his behalf acts the Chiang Kai-shek w,in the United Nations. His piratic flag flies over the island torn_away from China, and which was converted into a piratels nest. The Chiang Kai-shek army, equipped by the government of the USA, is considered by American strategists as a shock detachment of the im- perialists. ?All.thisdoes_not make it possible to forget Chiang Kai-shek, to efface him from the memory of the people, and from the list of the most malicious warmongers. At the same time the story about the downfOl of Chiang Kai-shek is, a clear picture of the hopelessness of the new colo- nialism spread by the USA. * * * By the time, when in the family of a salt merchant, the childhood of ,Chiang Kai-spek ended, the people of China had been conducting a strained revolutionary struggle for a half century against foreign imperialism and despotic Chinese feudalism. Pressing wars upon China or threatening China with war, the American, Japanese, French, and German imperialists forced the rulers of China to sign enslaving agree- ments0 they thrust upon China a colonial regime, seized Chinese terri- tories, created special settlements in the country, led their troops ?335? Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 into China; literally, this was not a great sovereign state with a century- old culture, but their colony. They plundered the natural resources of the country. Whoever the imperialists might have been, who, at a given time held the most important place in the colonial plundering of China, their pro- gram in general was one and the same: the enslavement of the people, inhuman exploitation, plunder of the natural resources, and retention of the age-old economic and cultural backwardness. The imperialists ruled with the aid of the Chinese rich men, who had become obliging agents of foreign companies. Thus arose the com- paratively numerous cadres of the compradors, the parasitic bourgeoisie who acted on behalf of the colonizers, who served the imperialists, who betrayed its own people. These compradors? who multiplied especially in the large port cities -- Shanghai, Canton, Tsingtao, formed the most reac- tionary part of the Chinese bourgeoisie. The people had the same hate for them which they felt for all foreign enslavers0 oppressing the Chinese peotae the imperialists could not hOweverr, in spite of their will and 'their intentions) , in the course of the inevitable historical development could not stifle the process of the economic awakening of China. There arose cadres of the industrial and transport Chinese prole- tariat; there began to appear small factories of the national bourgeoisie, who was interested in the extensive development and independence of Chinese industry. Still weak and depending upon foreign and comprador capital, this part of the bourgeoisie was already dreaming about domination in the market. A huge revolutionary force was born in China together with the forma- tion of cadres of the industrial proletariat. It had a historic mission: to head the revolutionary movement in the country, to unite all the oppo- sition forces against colonialism, and to lead them to the storming of imperialism and the feudal-comprador forces. In the beginning of the 20th century the foreign imperialists intensi- fied their oppression. They tore into parts the living body of China. Japan started the armed seizure of entire regions -- the Iwangtung area and the Liaotung Peninsula. England invaded Tibet, the English and French troops were led into the Yunnan province. Foreign monopolistic capital seized key positions in the Chinese economy. In China there predominated the English Hong Kong-Shanghai Bank, the German-Asia Bank, the French Bank of Indo-China, the American banking consortium, created by the banks of Wall Street: John P. Morgan, Kuhn-Loeb and Co. and others. -336- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 The Chinese people never became reconciled to this enslavement. The country rose up for the struggle against the foreign imperialists and local feudalism. This struggle led to the revolutionary outburst in 1911 which put an end to the feudal-monarchial system in China. In Nanking, the Chinese republic was proclaimed. Under the pressure of the foreign imperialists, the Chinese bourgeoisie gave up the power to that very same feudal clique which had predominated during the monarchy. The militarist and feudal lord Yuan Shih-k8ai was proclaimed president. But the real power in the country belonged to several militarist cliques. The imperialists furthered the parcelling out -- it is easier to plunder and to oppress a country when there is not a united will, a united power in it. If someone of the small rulers gathered forces, another ruler was set upon him. In the country, as formerly, the landowners-feudal lords predominated. In the cities the compradors swarmed in a parasitic horde. But the revolutionary national movement, the struggle of the workers and peasants did not cease. It was becoming clear that the revolution was only beginning, and that the masses of the people would not become recon- oiled to the power of the militarists. The great October Socialist Revolution opened a new epoch of the victorious struggle of the colonial peoples and the dependent countries against foreign and domestic oppressors. It indicated the correct way to the Chinese people. "The gun volleys of the October Revolution brought Marxism-Leninism to us," wrote Mao Tse-tung. The October Revolution helped the progressive elements of peace, and helped China to apply the proletarian world outlook for the determination of the fate of the country and a reconsideration of its own problems. The conclusion was to proceed along the way of the Russians. The action of the revolutionary student body on 4 May 1919 in Peking was the beginning of a wave of strikes. There developed an anti-feudal, anti-imperialistic movement for the national independence of the country. The bourgeois-democratic Chinese revolution was placed upon a new road -- it was converted into a democratic revolution? directed by the prole , tariat. Rising for the struggle for social and national liberation, the Chinese working class created its own Communist Party, which led the whole Chinese people to the universal-historic victory in the revolu- tionary movement. In July 1921, in Shanghai, there was held the First Congress of the Communist Party. The matter of the struggle of the Chinese people for emancipation was in reliable hands. The Chinese Communist Party," wrote the well-known Chinese scholar Ch en Bo-dal, "became the all-national leader of the anti-imperialistic and anti- feudal democratic revolution. It called for the establishment of a united revolutionary front of different classes against imperialism and feudalism." * * * - 337 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 This appeal found a response. Profound social-class changes in the country, the experience of the revolutionary struggle of the people caused, by that time, great changes within the Kuomintang, created in 1912 by Sun Yat-sen. The right-wing, most reactionary group deserted Sun Yat-sen. The left-wing group united under the leadership of Sun Yat-sen. Life, the experience of the revolutionary struggle, taught this great democrat that without ,collaboration with the best forces of the country -- with the Communist Party, without alliance with the USSR, without the support for the genuinely revolutionary forces of the people, the workers, and peasants -- it is impossible to achieve victory in the bourgeois- democratic revolution. Loyalty to the interests of the people, an under- standing of their needs, of the most urgent tasks of the revolutionary movement, led Sun Yat-sen to the correct conclusions. At the very same time, the Communist Party, using the valuable experience of the Russian revolution, applied the correct tactics. The Third Congress of the Com- munist Party of China adopted, in the summer of 1923, the resolution on the entry of the Communists into the Kuomintang, with the preservation by the Communist Party of political and organizational independence. This led to the revival and activization of the Kuomintang. At its First Congress, held in January 1924, a united national front took shape in the country. The Congress gave the correct interpretation of the three national principles of Sun Yat-sen. The first principle was "nationalism" -- the struggle against imperialism, the second was "sovereignty of the people" -- the establishment of a democratic republic; the third was "national prosperity" -- the allotment of land to the peasants, the limi- tation of large monopolistic capital, the support of the workers move- ment. The three national principles were supplemented by the three princi- pal political goals: alliance with the USSR, alliance with the Communist Party, the support of the workers and peasants. The revolutionary movement in China grew, expanded, developed. It took the form of revolutionary civil wars against the rule of the feudal- militaristic cliques. At this time, there appeared the young militarist Chiang Kai-shek. After the example of other sons of the Chinese bourgeoisie, he was edu- cated in Japan. He was graduated from the Japanese Military Academy in 1906. Here he had mastered not only the cult of the sword, contempt of the workers, but also dreams about the rule in China of the bourgeois military clique. This was "the nationalism" of the reactionary youth. Putting on a mask Chiang Kai-shek joined the Sun Yat-sen "Union League." He wanted to lean upon the national-democratic movement. He succeeded in ingratiating himself with the leaders of the new revolu- tionary society. The future comprador had his own secret plans. He perceived the revolutionary movement only as a means to the achievement of personal power, and power -- as the means to wealth. - 338 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Chiang Kai-shek was dying for profit. At the most difficult time for the revolution, 1918, he deserted its ranks and set off for Shanghai -- to speculate on the exchange in the company of his partner and relative Ch en Kuo-fu. The biographers of the young exchange speculators servilely wrote about this period of his life: "Moving in commercial circles, he always acted correctly, and in a short time, having struck a number of profitable bargains, became a rich merchant." Speculating on the exchange, where sharp practice was considered a talent, and deception, brutality and treachery -- normal professional qualities, Chiang Kai-shek became closely connected with the criminal underground of ,Shanghai ?tlebrutalChing-PangSociety.? The bandits of this gang kidnapped people for the purpose of obtaining ransom, and en- gaged in murders. The "society" had a large system of smugglers, dealers in opium, suppliers of "live goods." Foreign imperialists extensively used the services of such terrorist bands. Here, in the Tsinban, Chiang Kai-shek went through the school of treason and betrayal. Chiang Kai-shek spent five years in the corrupted, unprincipled and dishonorable environ- ment of the compradors. He understood F01 the secrets of the banking in- trigues. The golden cupola of the temple of profit, of the majestic building of the omnipotent Shanghai-Hong Kong Bank irrepressibly attracted him. The young businessman undertook a clever attack. He was pushing his way through to wealth. But there were dozens like him; they were seekers of profit in the parvises of foreign banks in China. 74e young comprador was pushed aside; he was not among the elect who were making fortunes in the millions. Chiang Kai-shek undertook the tactics of a long roundabout way. He decided to get to power and to wealth in a roundabout way. He returned to Canton. The anti-imperialist and anti-feudal revolutionary movements grew and became stronger; in 1923, in Canton, was formed the southern revolu- tionary government. The revolution needed people who were skillful in military matters. Chiang Kai-shek became the Chief-of-Staff of the revolutionary army. In its ranks were many communists. With their active participation, the first academy of the revolution was created on the island of Wampoa. Having disguised himself, having covered himself with the mask of a supporter of the revolution, Chiang Kai-shek became the head of this academy. He used cunning and maneuvered carefully? hiding for the time being his ferocious hatred of the working class, of the working peasantry, of the democratic intelligentsia, of all the op- pressed. 339 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 :For Chiang Kai-shek the command posts in the revolutionary army were only rungs in the ladder to power. With all the revolutionary passion, the military cadres of the Com- munist Party were used for the armament or the people and for their mili- tary training s it was only possible in bitter battles to conquer the armed counter-revolution of the northern militarists. At the head of the politi- cal department of the WampoaAcademy was placed a leading figure of the Com- munist Party of China, Chou En-lai. The Chinese anti-feudal revolution developed victoriously. In 1925 the national revolutionary army conducted two eastern campaigns in the province of Kwangtung, wiping out the forces of the counter-revolutionary militarist Ch/en Chun-min. The communists were the soul of the campaigns, the bones of the revolutionary army, loyal and devoted, capable of mobil- izing the masses for the victory over the enemies of the revolution. The units under the command of the communists won fame for themselves in win- ning the victory. And Chiang Kai-shek? He was preparing the seizure of power. He in- trigued against the communists and achieved their ousting from the First Army, which he commanded. Indeed his goal was not the victory of the revolution, but his own personal power. On 12 Marcb 1925, the most eminent leader of the Chinese revolution, Sun Yat-sen died in Peking. In his last political documents -- in his will to the Kuomintang, and in his appeal to the supreme organ of state power of the Soviet Union, the Central Executive Committeeo he left his instructions, his political legacy to strengthen the bonds with the masses, to intensify collaboration with the Communist Party? to make stronger friendship with the Soviet Union. The goal was the revolutionary over- throw of the rule of the imperialists. Chiang Kai-shek betrayed these precepts. Be was opposed to one of the most important political directives adopted by the First Congress of the Kuomintang -- an alliance with the Communist Party. He did this not only in the interest of personal career goals. The interests of foreign imperialists, with whom he was connected, also im- pelled him to do this. Indeed, starting from the events of 30 May 1925, the national-liberation movement in China acquired a still more profound anti-imperialistic character. On 29 May the Japanese inflicted a massacre upon the workers. On the next day there was held in Shanghai a vast demonstration of workers and students? English and American police of the international settlement shot the demonstrators. An outburst of indignation gripped the whole -340- Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 country. In Shanghai a general strike started and continued until fall. The blood of the workers, shed by American-English imperialists, raised In the country a wide anti-imperialistic movement, which obtained the name "the movement of 30 May." Strikes broke out in Canton and Hong Kong. The working class of China stood at the head of the revolution- ary movement. The foreign imperialists -- the English, American, Japanese and French -- became downright alarmed: against them there appeared a power- ful opponent, whose forces were growing stronger. The imperialists intensi- fied the activity of their henchmen -- U Pe-fu (the English) and Shen Tac-lun (the Japanese), resorting, through these puppets, to direct mili- tary support of the Chinese counter-revolution. At the same time, through Chian Kai-shek, there were undertaken maneuvers for the purpose of push- ing the communists out of the Kuomintang, of not permitting them to de- velop the revolution deeply or of drawing into the revolution the wide masses of the people, and of converting them into leaders and the chief political force of the revolution. In March 1926, Chiang Kai-shek, hav- ing declared himself "the Commander-in-Chief?g carried out the arrest of a number of communists. He appointed his partner on the Shanghai exchange Chen Go-fu as the director of the organizational department of the Kuomin- tang. At the same time, demonstratively emphasizing this deviation from the most important political directive of Sun Yat-sen for an alliance with the communists, he appointed as rector of the Canton University the anti-communist "theorist" Tai Chi-toao. He was entrusted with the "theo- retical" struggle against the three principles and the three political directives adopted by the Kuomintang at its First congress in 1924 as the program of the revolutionary movement of the Chinese people. A heated struggle developed between the bourgeoisie and the prole- tariat fer the leadership of the revolution. The bourgeoisie gathered its forces, in order to defeat the prole- tariat, to make a deal with foreign imperialism, to put an end to the revolutions and to establish their own domination. The proletariat gathered its forces in order to hurl back the bourgeoisie, to strengthen its hegemony, and to lead millions of the working masses of the city and the country. The proletariat won in the difficult, bloody struggle of many years; the proletariat conquered. * * * Chiang Kai-shek put off, for the time being, the man-to-man fight with the communists, with the proletariat. He was counting on achieving, in the alliance with them, victory against the northern militarists and then to stab them in the back. - 341 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 In June .1926 the National-Revolutionary Army began its Northern cam- paign. The communists again played a huge role in the arpy. They were in front ?.in. the line of fire, their battle units achieved the deci- sive victories. The army of Pe-fu was defeated, the troops of Sun Chuan- fan were defeated; the revolutionary army successfully moved to the north. The American and other imperialists were in a panic -- they were preparing the counter-revolutionary coup, were conducting secret nego- tiations with Chiang Kai-shek, promising him a loan of 60 million dollars "for the struggle against the communists and for their annihilation." The comprador bourgeoisie accepted the order. In February 1927, the National-Revolutionary Army began operations for the occupation of Shanghai and Nanking and the expulsion of the troops of the corrupt generals there. Three times the workers of Shanghai re- volted -- the third uprising began 21 March and ended with their victory. The henchman of the compradors bided his time. Chiang Kai-shek refused to come to the aid of the workers who had revolted -- it was advantageous for him that more blood be shed by those who had revolted, that their forces be rpakpned: indeed he was preparing a bloody traitorous attack against them. Nanking was occupied -- the warships of USA and England were firing at the city. Almost 3,000 Chinese perished. Chiang Kai-shek appealed to the interventioniSta-murderers with a servile message. 12 April 1927 was the black day of the betrayal by the bourgeoisie of China of the cause of national liberation. On this day, Chiang Kai- shek shot Shanghai workers, and by order of the English imperialists accomplished a counter-revolutionary coup. The revolution was betrayed. But the coup did not lead to the total victory of the counter-revolution. The forces of the revolutionary proletariat and the peasantry:, which started the agrarian revolution under the leadership of the Communist Party, were not broken. Accomplishing the betrayal, Chiang Kai-shek acted not only as an agent of the parasitic capital of China, which was afraid of the wide scope of the people's movement. He acted also as a hireling of foreign imperialism. Indeed, the first civil revolutionary war, betrayed by the Chiang Kai-shekists in 1927, was directed against foreign imperialism. The revolutionary war created the danger of death for foreign imperial- ism. Chiang Kai-shek set up as his mission the placing of the Kuomin- tang in the service of the colonizers of China. In the supmer of )936 in the newspaper PekingTuan-12ALLnitai, the Chief of Staff of the Japanese army in Northern China Colonel Nagapl wrote: - 342 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 If at that time (that is, in 1927 - D. Zaslavskiy) the Kuomintang and the Communist Party had not come to a breaking-point (the Japanese colonel thus termed the betrayal of the Chiang Kai-shekists D. Zas- lavskiy), then the success of the revolution would have been ensured in a matter of days. The influence of the imperialistic powers in China, and, primarily, the influence of Japan, would have been destroyed. Therefore the Japanese War Ministry manifested extreme anxiety and directed Colonel Nagami and Colonel Matsumuro to undermine the Chinese revolution." There began the period of wild, unruly terror. Chiang Kai-shek, who was joined by the right-wing member of the Kuomintang, Wang Chang-? wei, who was close to the Japanese, followed the rule: "It is better to execute a thousand innocent persons, than to let one guilty person escape." The inveterate traitors called this terror "the purge of the Kuomintang." The staunchest fighters of the revolution were eliminated. Not less than half a ion of them were executed, killed, tortured in Chiang Kai- shekist torture chambers. But new fighters replaced those who had fallen. In August 1927 in Nanchang, units of the national army under the command of Chu Te, Chou En-lai?Ho Lung, Ye Tin revolted against the Kuomintang terror. In September, under the leadership of Mao Tse-tung there occurred the re- volt of the peasants, miners, and soldiers in the provinces of Hunan, and Shansi. The Chinese Red Army was created; it subsequently became the great National-Liberation Army, which liberated China from the power of the foreign imperialists and militarists, And in the camp of the counter-revolution the desperate fight be- tween the cliques of the Kuomintang was proceeding. The period of intensified fascism in Kuomintang China began. Pro, fessor Wen Bo-dai wrote, "The powerful national vanguard the Chinese Communist Party --? resisted Chiang Kai-shek; the violent peasant revolu- tion resisted Chiang Kai-shek; this is the reason that the counter- revolutionary dictatorship of Chiang Kai-sbek took the form of a feudalcomprador fascism, and the Kuomintang was converted into the Fascist Party, controlled by Chiang Kai-shek and the brothers Chen Id-fu and Chen Kuo-fu." But the brutal terror could not break the revolutionary movement. Chiang Kai-shek was seeking aid and support from the imperialistic powers, whose servant he was. He went to Tokyo; he was the guest of one of the directors of the Japanese intelligence service, Toyama Mitsuru. Upon taking leave of Mit suru, he gave Mitsuru an autographed photo with the inscription "Close, as one familyoll Thus the betrayer of the Chinese people became related to the Japanese intelligence service. - 343 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 The reactionary Chinese bourgeoisie fawned upon the Japanese invaders. When in 1928 the Japanese organized the brutal massacre of the Chinese in ttinan, Chiang Kai-shek issued the order: "Not to come into conflict with Japanese troops.... For the sake of saving one Japanese, it is worth destroying even ten Chinese...." Among the directors of the Kuomintang there was no unity. The sup- porters of various imperialistic groups wrangled among themselves for power. Chiang Kai-shek tried to subjugate his rivals by force of arms. tut the Japanese interventionists did not need a strong central power, even if reactionary, even if fascist. They prohibited Chiang Kai-shek from opposing other Kuomintang "governments." He was permitted only to declare himself as "the central government." In regions under control of this government, the people suffered. The peasants and city dwellers were ruined by taxes, and overpowered by the fierce orders: for resistance to foreign imperialists for dissemination of literature, which against feudalism -- execution; for the organization of meetings of an -- Penal servitude. -- execution; summoned to the struggle anti-fascist nature But ia the regions liberated by the Chinese Red Army, the forces of national liberation matured, the bases for the future victorious strug- gle were created, the organs of national power arose. Meetings of workers!, peasants' and soldiers' deputies divided the lands of the landholders, realized the agrarian revolution. The foreign predatory imperialists and Chinese capitalists demanded reprisals against the people, against the communists. It was not neces- sary to try to persuade the reactionary bourgeoisie; it itself hated the people, who were betrayed and sold by it. Fulfilling the will of his class, Chiang Kai-shek repeatedly flung his armies against the armed forces and the people of the liberated regions. His troops invariably were defeated. The patriotic ardor of the workers and peasants, among whom the communists were in the first ranks, gave rise to their victory. The counter-revolutionary bourgeoisie could instill into its armies only the spirit of plundering and profit. But the people were inspired by the great mission of saving their homeland from the double yoke -- of internal reaction, and of the foreign imperialists, the English, Japanese, American, and others who were standing behind the internal reaction. And the idea which took possession of the consciousness of the masses, created miracles. Almost unarmed workers and peasants defeated soldiers armed to the teeth of the sorry conqueror, who had buried himself. The liberation army was equipped with weapons of the defeated hirelings of imperialism. -, 3,44 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 F91117 campaigns of Chiang Kai-shek against the revolutionary workers and peasants failed. In an atmosphere of wild terror the unruly plundering proceeded. The bourgeoisie became rich. Military power over the people, whom it had betrayed, was for Chiang Kai-shek and his generals a promissory note, which he presented on the exchange for payment. They seized the central banks, subordinating all the provincial banks to them. These years of the unruly plunder of the national wealth were strik- ingly described in the well-known book of Professor Chien Po-tai Four Families of China. Not even ten years had passed after Chiang Kai-shek's betrayal of the people, when all the banking business of China was in the power of four families -- the Chiangs (Chiang Kai-shek), the Sungs (Sung Tzu-weu), the 'lungs (Kung Siang-si)? the Ch'ens (Chen Kuo-fu and Chlen Li-fu). Each family owned one of the largest banks -- the Central, Chinese, Peasant, Transport. The head of all these inter- married families, Chiang Kai-shek, became the chairman of the united council of all these banks, During the time of his domination in China "the four families" amassed, by plunder, property worth 20 billion Ameri- can dollars. The violence of the reaction proceeded to the accompaniment of false declarations of "democracy," "reforms," of "independence," and the like, Having become dictator, Chiang Kai-shek remained a faithful servant of his class -- the great, predatory bourgeoisie. He was a comprador? who agreed to sell China to foreign imperialists. Without the support of the imperialists he mould not have existed even one day. Surrounded by gangsters, enraptured with police power, corrupted by flattery, Chiang Kai-shek thought that he was actually omnipotent, that China belonged to him. But louder and louder was heard the threat- ening rumbling of the powerful revolutionary movement which brought liberation from the compradors and their protectors. * * * Without declaring war upon China, the Japanese imperialists in 1931 proceeded to direct conquest by armed force. The imperialists of the USA and England supported and encouraged them. Indeed, trampling the fields of China with an armored boot, the Japanese advanced in the direc tion of the Soviet Union. The comprador bourgeoisie of China, having accomplished the immediate betrayal of its people, not only did not oppose the Japanese aggression, but in essence shut its eyes to it. The comprador bourgeoisie was more afraid of the Chinese people than of the imperialistic aggression. It willingly assumed the task to fight against the Soviet Union. 345 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 In August 1931, Chiang Kai-shek deelared,, within the tight circle of his accomplices: "If China will be conquered by the imperialiets? we shall be able to exist even as colonial slaves, if only to save our own skin." When, in a month, the Japanese began their provocation in Mukden, he gave the orderg "In case of provocations on the part of the Japanese, caution must be manifested and in every way possible a clash must be avoided." The Japanese aggression caused an angry rebuff on the part of the Chinese people. The 19th Army heroically defended Shanghai. In the whole country the national-liberation movement surged high. Into the struggle were attracted the peasantry and the progressive circles of the bourgeois ihtelligentsia. Even the feudal lords of the northern prov- inces, fearing for their existence, under the influence of the peoples national movement tried to stem the advance of the Japanese armies. There was universal indignation against the Japanese colonizers and their Chinese agents. News about the bloody violence caused by the aggressors disturbed the workers. Conditions were created for the forma- tion of a united national front against the imperialists. The internal contradictions within the Kuomintang became aggravated. The middle and petty bourgeoisie were for active military resistance against imperial- istic Japan. But it was this national enthusiasm which most of all frightened Chiang Kai-shek and his supporters from the upper bourgeoisie. They were expecting aid from without. The comprador bourgeoisie discovered its complete political bank- ruptcy. Chiang Kai-shek signed the capitulatory armistice with the Japanese, offering them freedom of operations in the country. Depending upon the assistance of the imperialists Chiang Kai-shek rose in oppo- sition against the Chinese Red Army. This was a punitive expedition against the peasants, who were fighting for the land and for the inde- pendence of the fatherland. The headquarters of Chiang Kai-shek in Hankow gave the order g *Shoot one and all of the total adult male popu- lation...of the people s-revolutionary regions. Burn all the buildings in these regions.. It is necessary to cut with a sharp sword, without any mercy." In words, Chiang Kai-shek had to appear as an enemy of imperialist Japan. In reality, Chiang Kai-shek was Japans secret agent. His whole capitulatory policy encouraged the aggressors to further armed penetra- tion into China. This was also furthered by the imperialistic 'policy of "pacifications" of international fascism which the English, American and French imperialists were pursuing against the aggressive *anti- Comintern" bloc, against "the axis" of Berlin-Rome-Tokyo. - 346 - Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 Approved For Release 2001/07/28 : CIA-RDP65-00756R000300270001-9 The country was threatened with a deadly danger -- complete enslave- ment by imperialistic Japan. On 17 January 1933 Mao Tse-tung and Chu Te proposed the program of a joint anti-Japanese war: 1. The immediate cessation of the offensive of the Kuomintang troops against the liberated regions of China. 2. The guarantee to the people of democratic rights. 3. The immediate arming of the people, the creation of a voluntary army for the defense of China and the guarantee of independence, unity, and territorial integrity of the country. This was an act of high patriotism on the part of the Commtuaist Party, for which the interests of the people were foremost. How did the reactionary Chinese bourgeoisie answer this appeal? On its behalf Chiang Kai-shek declared: "The trouble for our country comes not from the Japan- ese, but from the gangsters from Shensi." Thus did this king of the compra- dors call the honest Chinese patriots, the peoplega-revolutionary forces, headed by the Communist Party. On 31 May 1933 the Chiang Kai-shekist capitulators