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https://harrytsopanos.blogspot.com/2015/06/revealed-secret-report-that-shows-how.html
The paper is aged and fragile, the typewritten letters slowly fading.
But US Military Intelligence report EW-Pa 128 is as chilling now as the
day it was written in November 1944.
The document, also known as the Red House Report, is a detailed account
of a secret meeting at the Maison Rouge Hotel in Strasbourg on August
10, 1944. There, Nazi officials ordered an elite group of German
industrialists to plan for Germany's post-war recovery, prepare for the
Nazis' return to power and work for a 'strong German empire'. In other
words: the Fourth Reich.
Plotters: SS chief Heinrich Himmler with Max Faust, engineer with Nazi-backed company I. G. Farben
The three-page, closely typed report, marked 'Secret', copied to British
officials and sent by air pouch to Cordell Hull, the US Secretary of
State, detailed how the industrialists were to work with the Nazi Party
to rebuild Germany's economy by sending money through Switzerland.
They would set up a network of secret front companies abroad. They would
wait until conditions were right. And then they would take over Germany
again.
The industrialists included representatives of Volkswagen, Krupp and
Messerschmitt. Officials from the Navy and Ministry of Armaments were
also at the meeting and, with incredible foresight, they decided
together that the Fourth German Reich, unlike its predecessor, would be
an economic rather than a military empire - but not just German.
The Red House Report, which was unearthed from US intelligence files, was the inspiration for my thriller The Budapest Protocol.
The book opens in 1944 as the Red Army advances on the besieged city,
then jumps to the present day, during the election campaign for the
first president of Europe. The European Union superstate is revealed as a
front for a sinister conspiracy, one rooted in the last days of the
Second World War.
But as I researched and wrote the novel, I realised that some of the Red House Report had become fact.
Nazi Germany did export massive amounts of capital through neutral
countries. German businesses did set up a network of front companies
abroad. The German economy did soon recover after 1945.
The Third Reich was defeated militarily, but powerful Nazi-era bankers,
industrialists and civil servants, reborn as democrats, soon prospered
in the new West Germany. There they worked for a new cause: European
economic and political integration.
Is it possible that the Fourth Reich those Nazi industrialists foresaw has, in some part at least, come to pass?
The Red House Report was written by a French spy who was at the meeting
in Strasbourg in 1944 - and it paints an extraordinary picture.
The industrialists gathered at the Maison Rouge Hotel waited expectantly
as SS Obergruppenfuhrer Dr Scheid began the meeting. Scheid held one of
the highest ranks in the SS, equivalent to Lieutenant General. He cut
an imposing figure in his tailored grey-green uniform and high, peaked
cap with silver braiding. Guards were posted outside and the room had
been searched for microphones.
Death camp: Auschwitz, where tens of thousands of slave labourers died working in a factory run by German firm I. G. Farben
There was a sharp intake of breath as he began to speak. German industry
must realise that the war cannot be won, he declared. 'It must take
steps in preparation for a post-war commercial campaign.' Such defeatist
talk was treasonous - enough to earn a visit to the Gestapo's cellars,
followed by a one-way trip to a concentration camp.
But Scheid had been given special licence to speak the truth – the
future of the Reich was at stake. He ordered the industrialists to 'make
contacts and alliances with foreign firms, but this must be done
individually and without attracting any suspicion'.
The industrialists were to borrow substantial sums from foreign countries after the war.
They were especially to exploit the finances of those German firms that
had already been used as fronts for economic penetration abroad, said
Scheid, citing the American partners of the steel giant Krupp as well as
Zeiss, Leica and the Hamburg-America Line shipping company.
But as most of the industrialists left the meeting, a handful were
beckoned into another smaller gathering, presided over by Dr Bosse of
the Armaments Ministry. There were secrets to be shared with the elite
of the elite.
Bosse explained how, even though the Nazi Party had informed the
industrialists that the war was lost, resistance against the Allies
would continue until a guarantee of German unity could be obtained. He
then laid out the secret three-stage strategy for the Fourth Reich.
In stage one, the industrialists were to 'prepare themselves to finance
the Nazi Party, which would be forced to go underground as a Maquis',
using the term for the French resistance.
Stage two would see the government allocating large sums to German
industrialists to establish a 'secure post-war foundation in foreign
countries', while 'existing financial reserves must be placed at the
disposal of the party so that a strong German empire can be created
after the defeat'.
In stage three, German businesses would set up a 'sleeper' network of
agents abroad through front companies, which were to be covers for
military research and intelligence, until the Nazis returned to power.
'The existence of these is to be known only by very few people in each
industry and by chiefs of the Nazi Party,' Bosse announced.
'Each office will have a liaison agent with the party. As soon as the
party becomes strong enough to re-establish its control over Germany,
the industrialists will be paid for their effort and co-operation by
concessions and orders.'
Enlarge
Extraordinary revelations: The 1944 Red House Report, detailing 'plans
of German industrialists to engage in underground activity'
The exported funds were to be channelled through two banks in Zurich, or
via agencies in Switzerland which bought property in Switzerland for
German concerns, for a five per cent commission.
The Nazis had been covertly sending funds through neutral countries for years.
Swiss banks, in particular the Swiss National Bank, accepted gold looted
from the treasuries of Nazi-occupied countries. They accepted assets
and property titles taken from Jewish businessmen in Germany and
occupied countries, and supplied the foreign currency that the Nazis
needed to buy vital war materials.
Swiss economic collaboration with the Nazis had been closely monitored by Allied intelligence.
The Red House Report's author notes: 'Previously, exports of capital by
German industrialists to neutral countries had to be accomplished rather
surreptitiously and by means of special influence.
'Now the Nazi Party stands behind the industrialists and urges them to
save themselves by getting funds outside Germany and at the same time
advance the party's plans for its post-war operations.'
The order to export foreign capital was technically illegal in Nazi Germany, but by the summer of 1944 the law did not matter.
More than two months after D-Day, the Nazis were being squeezed by the
Allies from the west and the Soviets from the east. Hitler had been
badly wounded in an assassination attempt. The Nazi leadership was
nervous, fractious and quarrelling.
During the war years the SS had built up a gigantic economic empire, based on plunder and murder, and they planned to keep it.
A meeting such as that at the Maison Rouge would need the protection of
the SS, according to Dr Adam Tooze of Cambridge University, author of
Wages of Destruction: The Making And Breaking Of The Nazi Economy.
He says: 'By 1944 any discussion of post-war planning was banned. It was
extremely dangerous to do that in public. But the SS was thinking in
the long-term. If you are trying to establish a workable coalition after
the war, the only safe place to do it is under the auspices of the
apparatus of terror.'
Shrewd SS leaders such as Otto Ohlendorf were already thinking ahead.
As commander of Einsatzgruppe D, which operated on the Eastern Front
between 1941 and 1942, Ohlendorf was responsible for the murder of
90,000 men, women and children.
A highly educated, intelligent lawyer and economist, Ohlendorf showed
great concern for the psychological welfare of his extermination squad's
gunmen: he ordered that several of them should fire simultaneously at
their victims, so as to avoid any feelings of personal responsibility.
By the winter of 1943 he was transferred to the Ministry of Economics.
Ohlendorf's ostensible job was focusing on export trade, but his real
priority was preserving the SS's massive pan-European economic empire
after Germany's defeat.
Ohlendorf, who was later hanged at Nuremberg, took particular interest
in the work of a German economist called Ludwig Erhard. Erhard had
written a lengthy manuscript on the transition to a post-war economy
after Germany's defeat. This was dangerous, especially as his name had
been mentioned in connection with resistance groups.
But Ohlendorf, who was also chief of the SD, the Nazi domestic security
service, protected Erhard as he agreed with his views on stabilising the
post-war German economy. Ohlendorf himself was protected by Heinrich
Himmler, the chief of the SS.
Ohlendorf and Erhard feared a bout of hyper-inflation, such as the one
that had destroyed the German economy in the Twenties. Such a
catastrophe would render the SS's economic empire almost worthless.
The two men agreed that the post-war priority was rapid monetary
stabilisation through a stable currency unit, but they realised this
would have to be enforced by a friendly occupying power, as no post-war
German state would have enough legitimacy to introduce a currency that
would have any value.
That unit would become the Deutschmark, which was introduced in 1948. It
was an astonishing success and it kick-started the German economy. With
a stable currency, Germany was once again an attractive trading
partner.
The German industrial conglomerates could rapidly rebuild their economic empires across Europe.
War had been extraordinarily profitable for the German economy. By 1948 -
despite six years of conflict, Allied bombing and post-war reparations
payments - the capital stock of assets such as equipment and buildings
was larger than in 1936, thanks mainly to the armaments boom.
Erhard pondered how German industry could expand its reach across the
shattered European continent. The answer was through supranationalism -
the voluntary surrender of national sovereignty to an international
body.
Germany and France were the drivers behind the European Coal and Steel
Community (ECSC), the precursor to the European Union. The ECSC was the
first supranational organisation, established in April 1951 by six
European states. It created a common market for coal and steel which it
regulated. This set a vital precedent for the steady erosion of national
sovereignty, a process that continues today.
But before the common market could be set up, the Nazi industrialists
had to be pardoned, and Nazi bankers and officials reintegrated. In
1957, John J. McCloy, the American High Commissioner for Germany, issued
an amnesty for industrialists convicted of war crimes.
The two most powerful Nazi industrialists, Alfried Krupp of Krupp
Industries and Friedrich Flick, whose Flick Group eventually owned a 40
per cent stake in Daimler-Benz, were released from prison after serving
barely three years.
Krupp and Flick had been central figures in the Nazi economy. Their
companies used slave labourers like cattle, to be worked to death.
The Krupp company soon became one of Europe's leading industrial combines.
The Flick Group also quickly built up a new pan-European business
empire. Friedrich Flick remained unrepentant about his wartime record
and refused to pay a single Deutschmark in compensation until his death
in July 1972 at the age of 90, when he left a fortune of more than
$1billion, the equivalent of £400million at the time.
'For many leading industrial figures close to the Nazi regime, Europe
became a cover for pursuing German national interests after the defeat
of Hitler,' says historian Dr Michael Pinto-Duschinsky, an adviser to
Jewish former slave labourers.
'The continuity of the economy of Germany and the economies of post-war
Europe is striking. Some of the leading figures in the Nazi economy
became leading builders of the European Union.'
Numerous household names had exploited slave and forced labourers
including BMW, Siemens and Volkswagen, which produced munitions and the
V1 rocket.
Slave labour was an integral part of the Nazi war machine. Many
concentration camps were attached to dedicated factories where company
officials worked hand-in-hand with the SS officers overseeing the camps.
Like Krupp and Flick, Hermann Abs, post-war Germany's most powerful
banker, had prospered in the Third Reich. Dapper, elegant and
diplomatic, Abs joined the board of Deutsche Bank, Germany's biggest
bank, in 1937. As the Nazi empire expanded, Deutsche Bank
enthusiastically 'Aryanised' Austrian and Czechoslovak banks that were
owned by Jews.
By 1942, Abs held 40 directorships, a quarter of which were in countries
occupied by the Nazis. Many of these Aryanised companies used slave
labour and by 1943 Deutsche Bank's wealth had quadrupled.
Abs also sat on the supervisory board of I.G. Farben, as Deutsche Bank's
representative. I.G. Farben was one of Nazi Germany's most powerful
companies, formed out of a union of BASF, Bayer, Hoechst and
subsidiaries in the Twenties.
It was so deeply entwined with the SS and the Nazis that it ran its own
slave labour camp at Auschwitz, known as Auschwitz III, where tens of
thousands of Jews and other prisoners died producing artificial rubber.
When they could work no longer, or were verbraucht (used up) in the
Nazis' chilling term, they were moved to Birkenau. There they were
gassed using Zyklon B, the patent for which was owned by I.G. Farben.
But like all good businessmen, I.G. Farben's bosses hedged their bets.
During the war the company had financed Ludwig Erhard's research. After
the war, 24 I.G. Farben executives were indicted for war crimes over
Auschwitz III - but only twelve of the 24 were found guilty and
sentenced to prison terms ranging from one-and-a-half to eight years.
I.G. Farben got away with mass murder.
Abs was one of the most important figures in Germany's post-war
reconstruction. It was largely thanks to him that, just as the Red House
Report exhorted, a 'strong German empire' was indeed rebuilt, one which
formed the basis of today's European Union.
Abs was put in charge of allocating Marshall Aid - reconstruction funds -
to German industry. By 1948 he was effectively managing Germany's
economic recovery.
Crucially, Abs was also a member of the European League for Economic
Co-operation, an elite intellectual pressure group set up in 1946. The
league was dedicated to the establishment of a common market, the
precursor of the European Union.
Its members included industrialists and financiers and it developed
policies that are strikingly familiar today - on monetary integration
and common transport, energy and welfare systems.
When Konrad Adenauer, the first Chancellor of West Germany, took power in 1949, Abs was his most important financial adviser.
Behind the scenes Abs was working hard for Deutsche Bank to be allowed
to reconstitute itself after decentralisation. In 1957 he succeeded and
he returned to his former employer.
That same year the six members of the ECSC signed the Treaty of Rome,
which set up the European Economic Community. The treaty further
liberalised trade and established increasingly powerful supranational
institutions including the European Parliament and European Commission.
Like Abs, Ludwig Erhard flourished in post-war Germany. Adenauer made
Erhard Germany's first post-war economics minister. In 1963 Erhard
succeeded Adenauer as Chancellor for three years.
But the German economic miracle – so vital to the idea of a new Europe -
was built on mass murder. The number of slave and forced labourers who
died while employed by German companies in the Nazi era was 2,700,000.
Some sporadic compensation payments were made but German industry agreed
a conclusive, global settlement only in 2000, with a £3billion
compensation fund. There was no admission of legal liability and the
individual compensation was paltry.
A slave labourer would receive 15,000 Deutschmarks (about £5,000), a
forced labourer 5,000 (about £1,600). Any claimant accepting the deal
had to undertake not to launch any further legal action.
To put this sum of money into perspective, in 2001 Volkswagen alone made profits of £1.8billion.
Next month, 27 European Union member states vote in the biggest
transnational election in history. Europe now enjoys peace and
stability. Germany is a democracy, once again home to a substantial
Jewish community. The Holocaust is seared into national memory.
But the Red House Report is a bridge from a sunny present to a dark
past. Joseph Goebbels, Hitler's propaganda chief, once said: 'In 50
years' time nobody will think of nation states.'
For now, the nation state endures. But these three typewritten pages are
a reminder that today's drive towards a European federal state is
inexorably tangled up with the plans of the SS and German industrialists
for a Fourth Reich - an economic rather than military imperium.
• The Budapest Protocol, Adam LeBor's thriller inspired by the Red House Report, is published by Reportage Press.
Read more: http://www.dailymail.co.uk/news/article-1179902/Revealed-The-secret-report-shows-Nazis-planned-Fourth-Reich--EU.html#ixzz3dcWdXU8J
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