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Hitler To Saddam Hussein to Osama bin Laden Brown Brothers, Harriman - BNL- and the Carlyle Group. FTW, Oct. 9, 2001 - Since the Sept. 11 attacks on the World Trade Center and the Pentagon, major media powerhouses and the increasingly influential alternative media alike have begun to focus attention on Bush family connections and a long history of arming and financing America's attackers in the months and years prior to the outbreak of war. Recent stories in the Wall Street Journal (Sept. 27 & 28, 2001), ABC News (Oct. 1, 2001), as well as a host of reports from so-called alternative news sources have begun to focus attention on the Bush family's profit-making role in creating and arming our enemies. The following is a more comprehensive look at the documented history of these relationships that will also open some new avenues of inquiry for the press, Congress and the American people. In a world now filled with biowarfare agents, backpack nuclear devices, and chemical weapons like Sarin gas -- where there are people in many countries with reasons to oppose the United States -- the Bush Administration is following predictable strategies in a way that redefines the concept of brinksmanship. Human survival may depend upon the will and the ability of both the Congress and the press to focus on these relationships and to take appropriate action. Moreover - and I am not the first to say this - if a national security priority is to seize the financial assets of those who support terrorists, then perhaps we should start right here at home. Adolph Hitler Meticulous research, including U.S. government records from the era, along with contemporaneous news stories from the New York Times and other papers is presented in the 1992 book entitled, "George Bush, The Unauthorized Biography" by Webster G. Tarpley & Anton Chaitkin, Published by The Executive Intelligence Review and located at http://www.tarpley.net/bushb.htm. The following is sourced entirely from Chapter II of this essential work. [Note: Although FTW does not always agree with conclusions reached by the Executive Intelligence Review, or its founder Lyndon La Rouche, we have never found a single flaw in any of their factual research. History is history, no matter who presents it. And this history is essential to understanding our era.] George W. Bush's grandfather, Prescott Bush, was the Managing Director of the investment bank Brown Brothers, Harriman from the 1920s through the 1940s. It was Brown Brothers, in conjunction with Averell Harriman, the Rockefeller family, Standard Oil, the DuPonts, the Morgans and the Fords who served as the principal funding arm in helping to finance Adolph Hitler's rise to power starting in 1923. This included direct funding for the SS and SA channeled through a variety of German firms. Prescott Bush, through associations with the Hamburg-Amerika Steamship line, Nazi banker Fritz Thyssen (pronounced Tee-sen), Standard Oil of Germany, The German Steel Trust (founded by Dillon Read founder, Clarence Dillon), and I.G. Farben, used the Union Bank Corporation to funnel vast quantities of money to the Nazis and to manage their American interests. The profits from those investments came back to Bush allies on Wall Street. Thyssen is universally regarded as having been Hitler's private banker and ultimate owner of the Union Bank Corporation. Early support for Hitler came from Prescott Bush through the Hamburg-Amerika Steamship line -- also funded by Brown Bothers -- that funneled large sums of money and weapons to Hitler's storm troopers in the 1920s. According to Tarpley and Chaitkin, "In May 1933, just after the Hitler regime was consolidated, an agreement was reached in Berlin for the coordination of all Nazi commerce with the U.S.A. The Harriman International Company was to head a syndicate of 150 firms and individuals, to conduct all exports from Hitler Germany to the United States." Furthermore, a 1942 U.S. government investigative report that surfaced during 1945 Senate hearings found that the Union Bank, with Prescott Bush on the board, was an "interlocking concern" with the German Steel Trust that had produced:
The business relationships established by Bush in 1923 continued even after the war started until they became so offensive and overt as to warrant seizure by the U.S. government under the Trading with the Enemy Act in 1942. In 1942, "Under the Trading with the Enemy Act, the government took over Union Banking Corporation, in which Bush was a director. The U.S. Alien Property Custodian seized Union Banking Corp.'s stock shares" "all of which shares are held for the benefit of members of the Thyssen family, [and] is property of nationals of a designated enemy country." "On October 28, the government issued orders seizing two Nazi front organizations run by the Bush-Harriman bank: the Holland-American Trading Corporation and the Seamless Steel Equipment Corporation." "Nazi interests in the Silesian-American Corporation, long managed by Prescott Bush and his father in law George Herbert Walker, were seized under the Trading with the Enemy Act on Nov. 17, 1942" These seizures of Bush businesses were reported in a number of American papers including The New York Times and The Wall Street Journal. Prescott Bush went on to become an influential Republican Senator from Connecticut who went on to be a regular golfing partner of President Dwight Eisenhower. His attorneys were the lawyers John Foster and Allen Dulles, the later became the CIA Director under Eisenhower. Saddam Hussein After becoming President in January 1989, Prescott Bush's son, George Herbert Walker Bush - father of our current President - authorized a series of programs that not only armed Iraqi dictator Saddam Hussein but also provided him with technology that assisted in his development of chemical weapons like Sarin gas, and biological weapons, which he still possesses. Apologists for Bush (the elder) say that, after the Iran-Iraq War of the 1980s left the region unstable, he was just trying to establish a new balance of power. Not so. Bush directives and policies, including relationships with the Bank of Credit and Commerce International (BCCI), and the Banca Nacional del Lavoro (BNL) were directly and deliberately responsible for creating the army the U.S. fought in 1991. A story by Russ W. Baker, in the March/April issue the Colombia Journalism Review (CJR), provided the most compelling overview of Iraqgate that I have seen. "ABC News Nightline opened last June 9 with words to make the heart stop 'It is becoming increasingly clear,' said a grave Ted Koppel, "that George Bush, operating largely behind the scenes throughout the 1980s, initiated and supported much of the financing, intelligence, and military help that built Saddam's Iraq into the aggressive power that the United States ultimately had to destroy" "Why, then, have some of our top papers provided so little coverage?" Baker poignantly asks. " The result: readers who neither grasp nor care about the facts behind facile imagery like The Butcher of Baghdad and Operation Desert Storm. In particular, readers who do not follow the story of the Banca Nacional del Lavoro, which apparently served as a paymaster for Saddam's arms buildup, and thus became a player in the largest bank-fraud case in U.S. history. "Complex, challenging, mind-boggling stories (from Iran-Contra to the S&L crisis to BCCI) increasingly define our times: yet we don't appear to be getting any better at telling themÉ "Much of what Saddam received from the West was not arms per se, but so-called dual-use technology -- ultra sophisticated computers, armored ambulances, helicopters, chemicals, and the like, with potential civilian uses as well as military applications. We've learned that a vast network of companies, based in the U.S. and abroad, eagerly fed the Iraqi war machine right up until August 1990, when Saddam invaded Kuwait. "And we've learned that the obscure Atlanta Branch of Italy's largest bank, Banca Nacional del Lavoro, relying partly on U.S. taxpayer-guaranteed loans, funneled $5 billion to Iraq from 1985 to 1989. Some government-backed loans were supposed to be for agricultural purposes, but were used to facilitate the purchase of stronger stuff than wheat. Federal Reserve and Agriculture department memos warned of suspected abuses by Iraq, which apparently took advantage of the loans to free up funds for munitions. U.S. taxpayers have been left holding the bag for what looks like $2 billion in defaulted loans to Iraq. "In fact, we now know that in February 1990, then Attorney General Dick Thornburgh [appointed by George H.W. Bush] blocked U.S. investigators from traveling to Rome and Istanbul to pursue the case "As New York Times columnist William Safire argued last December 7, Iraqgate is uniquely horrendous: a scandal about the Systematic abuse of power by misguided leaders of three democratic nations [The U.S., Britain, and Italy] to secretly finance the arms buildup of a dictator." While Democrat Henry Gonzales, Chairman of the House Banking Committee during the period, stood as the lone voice from the wilderness in raising alarms about Bush's obvious corruption, the rest of the Congress sheepishly ignored all the signs demanding immediate action. Gonzales' voice reportedly fell silent after his empty car was machine-gunned in a Washington suburb in what passed for a drive-by shooting. The CJR continues: "Meanwhile, The Village Voice published a major investigation by free-lancer Murray Waas in its December 18, 1990 issue "That American troops could be killed or maimed because of a covert decision to arm Iraq,' Waas wrote, "is the most serious consequence of a U.S. foreign policy formulated and executed in secret, without the advice and consent of the American public" The L.A. Times, on Feb 23, 1992, dug deep enough to find secret National Security Decision Directives by the Bush Administration in 1989 ordering closer ties with Baghdad and paving the way for $1 billion in new aid. The Times' series, co-authored with Waas, emphasized that, "buried deep in a 1991 Washington Press piece - that Secretary of State James Baker, after meeting with Iraqi foreign minister Tariq Aziz in October 1989, intervened personally to support U.S. government loans guarantees to Iraq." Baker's CJR report also noted, "On October 3, the [Wall Street] Journal reported [BNL official Christopher] Drogoul's assertion that the director general of Iraq's Ministry of Industry and Military Production had told him, We are all in this together. The intelligence service of the U.S. government works very closely with the intelligence service of the Iraqi government.' Three weeks later, the Journal reported that [Henry] Gonzales Ôproduced a phone-book-sized packet of documents' showing the involvement of U.S. exporting firms The documents mentioned one which designed parts for Iraq's howitzers and was financed through BNL" In the wake of highly suspicious anthrax outbreaks in Florida, just miles from where several of the WTC suicides pilots trained, we add one final note. In his 1998 book "Bringing the War Home" author William Thomas writes, " Under that same [weapons transfer] program, 19 containers of Anthrax bacteria were supplied to Iraq in 1988 by the American Type Culture Collection company, located near Fort Detrick, MD, the site of the US Army's high security germ warfare labs." The Carlyle Group, the Bushes and bin Laden The warnings about the Carlyle Group, the nation's 11th largest defense contractor, and the Bushes came long before the World Trade Center attacks. The Carlyle Group is a closely held corporation, exempt, for that reason, from reporting its affairs to the Securities and Exchange Commission. Little is known of what it actually does except that it buys and sells defense contractors. As of October 4, 2001, it has removed its corporate web site from the World Wide Web making further investigation through that channel impossible. Its Directors include Frank Carlucci, former Reagan Secretary of Defense; James Baker, former Bush Secretary of State; and Richard Darman, a former White House aide to Ronald Reagan and Republican Party operative. On March 3, 2001, just weeks after George W Bush's inauguration, the conservative Washington lobbying group Judicial Watch issued a press release. It said: "(Washington, D.C.) Judicial Watch, the public interest law firm that investigates and prosecutes government abuse and corruption, called on former President George Herbert Walker Bush to resign immediately from the Carlyle Group, a private investment firm, while his son President George W. Bush is in office. Today's New York Times reported that the elder Bush is an "ambassador" for the $12 billion private investment firm and last year traveled to the Middle East on its behalf. The former president also helped the firm in South Korea. "The New York Times reported that as compensation, the elder Bush is allowed to buy a stake in the Carlyle Group's investments, which include ownership in at least 164 companies throughout the world (thereby by giving the current president an indirect benefit). James Baker, the former Secretary of State who served as President George W. Bush's point man in Florida's election dispute, is a partner in the firm. The firm also gave George W. Bush help in the early 1990's when it placed him on one of its subsidiary's board of directors. "This is simply inappropriate. Former President Bush should immediately resign from the Carlyle Group because it is an obvious conflict of interest. Any foreign government or foreign investor trying to curry favor with the current Bush Administration is sure to throw business to the Carlyle Group. And with the former President Bush promoting the firm's investments abroad, foreign nationals could understandably confuse the Carlyle Group's interests with the interests of the United States government," stated Larry Klayman, Judicial Watch Chairman and General Counsel. "Questions are now bound to be raised if the recent Bush Administration change in policy towards Iraq has the fingerprints of the Carlyle Group, which is trying to gain investments from other Arab countries who [sic] would presumably benefit from the new policy," stated Judicial Watch President Tom Fitton." Judicial Watch noted that "even the Clinton Administration called on the Rodham brothers to stop their business dealings in [The former Soviet Republic of] Georgia because those dealings started to destabilize that country." Since the WTC attacks the Wall Street Journal has reported (Sept. 28, 2001) that, "George H.W. Bush, the father of President Bush, works for the bin Laden family business in Saudi Arabia through the Carlyle Group, an international consulting firm." The senior Bush had met with the bin Laden family at least twice in the last three years - 1998 and 2000 -- as a representative of Carlyle, seeking to expand business dealings with one of the wealthiest Saudi families, which some experts argue, has never fully severed its ties with black sheep Osama in spite of current reports in a mainstream press that is afraid of offending the current administration. The Nation, on March 27, 2000 - in a story co-authored by David Corn and Paul Lashmar - wrote, "In January former President George Bush and former British Prime Minister John Major paid a social call on Saudi Arabian Crown Prince Abdullah" This story confirms at least one meeting between the elder Bush and Saudi leaders, including the bin Ladens. That the bin Ladens attended this meeting was confirmed in a subsequent September 27, 2001 Wall Street Journal (WSJ) story. The January 2000 meeting with the bin Ladens was also later confirmed by Bush (the elder's) Chief of Staff Jean Becker, only after the WSJ presented her with a thank you note sent by Bush to the bin Ladens after that meeting. James Baker visited the bin Ladens in 1998 and 1999 with Carlyle CEO Frank Carlucci. The WSJ story went on to note, "A Carlyle executive said that the bin Laden family committed $2 million through a London investment arm in 1995 in Carlyle Partners II Fund, which raised $1.3 billion overall. The fund has purchased several aerospace companies among 29 deals. So far, the family has received $1.3 million back in completed investments and should ultimately realize a 40% annualized rate of return, the Carlyle executive said. "But a foreign financier with ties to the bin Laden family says the family's overall investment with Carlyle is considerably larger" In other words, Osama bin Laden's attacks on the WTC and Pentagon, with the resulting massive increase in the U.S. defense budget have just made his family a great big pile of money. More Bush connections appear in relation to the bin Ladens. The WSJ story also notes that, "During the past several years, the [bin Laden] family's close ties to the Saudi royal family prompted executives and staff from closely held New York publisher Forbes, Inc. to make two trips to the family headquarters, according to Forbes Chairman Caspar Weinberger, a former U.S. Secretary of Defense in the Reagan administration. We would call on them to get their view of the country and what would be of interest to investors.'" President G.H.W. Bush pardoned Weinberger for his criminal conduct in the Iran-Contra scandal in 1989. Our current President, George W. Bush has also had -- at minimum -- indirect dealings with Carlyle and the bin Ladens. In 1976 his firm Arbusto Energy was funded with $50,000 from Texas investment banker James R. Bath who was also the U.S. investment counselor for the bin Laden family. In his watershed 1992 book, "The Mafia, The CIA and George Bush," award winning Texas investigative journalist Pete Brewton dug deeply into Bath's background, revealing connections with the CIA and major fraudulent activities connected with the Savings & Loan scandal that took $500 billion out of the pockets of American taxpayers. A long-time friend of George W. Bush, Bath was connected to a number of covert financing operations in the Iran-Contra scandal, which also linked to bin Laden friend Adnan Khashoggi. One of the richest men in the world, Khashoggi was the arms merchant at the center of the whole Iran-Contra scandal. Khashoggi, whose connections to the bin Ladens is more than superficial, got his first business break by acting as middle-man for a large truck purchase by Osama bin Laden's older brother, Salem. Another key player in the Bush Administration, Deputy Secretary of Defense Richard Armitage, left his post as an Assistant Secretary of Defense in the Reagan Administration after a series of scandals connected to CIA operatives Ed Wilson, Ted Shackley, Richard Secord and Tom Clines placed him at the brink of criminal indictment and jail. Shackley and Secord are veterans of Vietnam operations and have long been linked to opium/heroin smuggling. The Armitage scandals all focused on the illegal provision of weapons and war materiel to potential or actual enemies of the U.S. and to the Contras in Central America. Armitage, a former Navy SEAL, who reportedly enjoyed combat missions and killing during covert operations in Laos during the Vietnam War, has never been far from the Bush family's side. Throughout his career, both in and out of government, he has been perpetually connected to CIA drug smuggling operations. Secretary of State Colin Powell, in a 1995 Washington Post story, called Armitage, "my white son." In 1990, then President Bush dispatched Armitage to Russia to aid in its "transition" to capitalism. Armitage's Russian work for Bush has been frequently connected to the explosion of drug trafficking under the Russian Mafias, which became virtual rulers of the nation afterwards. In the early 1990s Armitage had extensive involvement in Albania at the same time that the Albanian ally, Kosovo Liberation Army was coming to power and consolidating its grip, according to The Christian Science Monitor, on 70% of the heroin entering western Europe. [See FTW Vol. II, No 2 - April 24, 1999] Armitage and Carlucci are both Board Members of the influential Washington think tank, the Middle East Policy Council. The connections continue with Vice President Dick Cheney. Amongst the multitude of oil pipeline construction running through the new war zone is one project - according to a Sept. 19, 2001 Wall Street Journal story - a joint venture in which the bin Laden family joined with the construction firm H.C. Price. A researcher named "Phoenix," writing for the Internet news site Rumor Mills News Agency located at http://www.rumormillnews.com/, reported that Price subsequently changed its name to Bredero Shaw, Inc. and is now owned by a subsidiary of the Halliburton Corporation, Dresser Industries. It was Dresser industries that gave George H.W. Bush his first post war job in 1948. A check of the relevant corporate web sites has confirmed this. Vice President Dick Cheney, who served as Secretary of Defense during Desert Storm, directing the campaign against Saddam Hussein, was Halliburton's CEO until last year's election. And, according to a 2000 story from Harper's Magazine, in 1990 our current President, through a position as a corporate director of Caterair, owned by the Carlyle Group - at a time when the bin Laden's were invested in Carlyle - had additional connections to the bin Laden family. In addition, on March 1, 1995, when George W. Bush was Texas governor and a senior Trustee of the university, the University of Texas Endowment voted to place $10 million in investments with the Carlyle Group. As to how much of that money went to the bin Ladens we can only guess. But we do know that there is a long tradition in the Bush family of giving money to those who kill Americans. Now, as the people of America are beginning to awaken to what is really being unleashed upon them, as a few brave souls are asking who's going to get all the money the Bush Administration is "borrowing" from government coffers and who's going to pay for it - the above history is more than ominous. Considering that during the 1980s, under the pretext of fighting a Sandinista regime in Nicaragua that never once launched an attack on the U.S., these same people oversaw an explosion in U.S. cocaine consumption that went from 80 metric tons in 1979 to 600 metric tons in 1989 - considering that the CIA trained and equipped death squads that tortured and murdered hundreds of thousands of people from Guatemala to Panama - considering that these same people have brutalized Iraq, leaving portions of it radioactively contaminated by depleted uranium for the next 4 billion years and causing a fivefold increase in the number of childhood leukemia cases amidst a starving population, one can only wonder what they will produce for the world now given the context of the World Trade Center attacks. SOURCES/CREDITS:
Rumors
of a link between the US first family and the Nazi war machine have circulated
for decades. Now the Guardian can reveal how repercussions of events that
culminated in action under the Trading with the Enemy Act are still being
felt by today's president The Guardian has obtained confirmation from newly discovered files in the US National Archives that a firm of which Prescott Bush was a director was involved with the financial architects of Nazism. His business dealings, which continued until his company's assets were seized in 1942 under the Trading with the Enemy Act, has led more than 60 years later to a civil action for damages being brought in Germany against the Bush family by two former slave laborers at Auschwitz and to a hum of pre-election controversy. The evidence has also prompted one former US Nazi war crimes prosecutor to argue that the late senator's action should have been grounds for prosecution for giving aid and comfort to the enemy. The debate over Prescott Bush's behavior has been bubbling under the surface for some time. There has been a steady internet chatter about the "Bush/Nazi" connection, much of it inaccurate and unfair. But the new documents, many of which were only declassified last year, show that even after America had entered the war and when there was already significant information about the Nazis' plans and policies, he worked for and profited from companies closely involved with the very German businesses that financed Hitler's rise to power. It has also been suggested that the money he made from these dealings helped to establish the Bush family fortune and set up its political dynasty. Remarkably, little of Bush's dealings with Germany has received public scrutiny, partly because of the secret status of the documentation involving him. But now the multibillion dollar legal action for damages by two Holocaust survivors against the Bush family, and the imminent publication of three books on the subject are threatening to make Prescott Bush's business history an uncomfortable issue for his grandson, George W, as he seeks re-election. While there is no suggestion that Prescott Bush was sympathetic to the Nazi cause, the documents reveal that the firm he worked for, Brown Brothers Harriman (BBH), acted as a US base for the German industrialist, Fritz Thyssen, who helped finance Hitler in the 1930s before falling out with him at the end of the decade. The Guardian has seen evidence that shows Bush was the director of the New York-based Union Banking Corporation (UBC) that represented Thyssen's US interests and he continued to work for the bank after America entered the war. Tantalizing Bush was also on the board of at least one of the companies that formed part of a multinational network of front companies to allow Thyssen to move assets around the world. Thyssen owned the largest steel and coal company in Germany and grew rich from Hitler's efforts to re-arm between the two world wars. One of the pillars in Thyssen's international corporate web, UBC, worked exclusively for, and was owned by, a Thyssen-controlled bank in the Netherlands. More Tantalizing are Bush's links to the Consolidated Silesian Steel Company (CSSC), based in mineral rich Silesia on the German-Polish border. During the war, the company made use of Nazi slave labor from the concentration camps, including Auschwitz. The ownership of CSSC changed hands several times in the 1930s, but documents from the US National Archive declassified last year link Bush to CSSC, although it is not clear if he and UBC were still involved in the company when Thyssen's American assets were seized in 1942. Three sets of archives spell out Prescott Bush's involvement. All three are readily available, thanks to the efficient US archive system and a helpful and dedicated staff at both the Library of Congress in Washington and the National Archives at the University of Maryland. The first set of files, the Harriman papers in the Library of Congress, show that Prescott Bush was a director and shareholder of a number of companies involved with Thyssen. The second set of papers, which are in the National Archives, are contained in vesting order number 248 which records the seizure of the company assets. What these files show is that on October 20 1942 the alien property custodian seized the assets of the UBC, of which Prescott Bush was a director. Having gone through the books of the bank, further seizures were made against two affiliates, the Holland-American Trading Corporation and the Seamless Steel Equipment Corporation. By November, the Silesian-American Company, another of Prescott Bush's ventures, had also been seized. The third set of documents, also at the National Archives, are contained in the files on IG Farben, who was prosecuted for war crimes. A report issued by the Office of Alien Property Custodian in 1942 stated of the companies that "since 1939, these (steel and mining) properties have been in possession of and have been operated by the German government and have undoubtedly been of considerable assistance to that country's war effort". Prescott Bush, a 6ft 4in charmer with a rich singing voice, was the founder of the Bush political dynasty and was once considered a potential presidential candidate himself. Like his son, George, and grandson, George W, he went to Yale where he was, again like his descendants, a member of the secretive and influential Skull and Bones student society. He was an artillery captain in the first world war and married Dorothy Walker, the daughter of George Herbert Walker, in 1921. In 1924, his father-in-law, a well-known St Louis investment banker, helped set him up in business in New York with Averill Harriman, the wealthy son of railroad magnate E H Harriman in New York, who had gone into banking. One of the first jobs Walker gave Bush was to manage UBC. Bush was a founding member of the bank and the incorporation documents, which list him as one of seven directors, show he owned one share in UBC worth $125. The bank was set up by Harriman and Bush's father-in-law to provide a US bank for the Thyssens, Germany's most powerful industrial family. August Thyssen, the founder of the dynasty had been a major contributor to Germany's first world war effort and in the 1920s, he and his sons Fritz and Heinrich established a network of overseas banks and companies so their assets and money could be whisked offshore if threatened again. By the time Fritz Thyssen inherited the business empire in 1926, Germany's economic recovery was faltering. After hearing Adolf Hitler speak, Thyssen became mesmerized by the young firebrand. He joined the Nazi party in December 1931 and admits backing Hitler in his autobiography, I Paid Hitler, when the National Socialists were still a radical fringe party. He stepped in several times to bail out the struggling party: in 1928 Thyssen had bought the Barlow Palace on Briennerstrasse, in Munich, which Hitler converted into the Brown House, the headquarters of the Nazi party. The money came from another Thyssen overseas institution, the Bank voor Handel en Scheepvarrt in Rotterdam. By the late 1930s, Brown Brothers Harriman, which claimed to be the world's largest private investment bank, and UBC had bought and shipped millions of dollars of gold, fuel, steel, coal and US treasury bonds to Germany, both feeding and financing Hitler's build-up to war. Between 1931 and 1933 UBC bought more than $8m worth of gold, of which $3m was shipped abroad. According to documents seen by the Guardian, after UBC was set up it transferred $2m to BBH accounts and between 1924 and 1940 the assets of UBC hovered around $3m, dropping to $1m only on a few occasions. In 1941, Thyssen fled Germany after falling out with Hitler but he was captured in France and detained for the remainder of the war. There was nothing illegal in doing business with the Thyssens throughout the 1930s and many of America's best-known business names invested heavily in the German economic recovery. However, everything changed after Germany invaded Poland in 1939. Even then it could be argued that BBH was within its rights continuing business relations with the Thyssens until the end of 1941 as the US was still technically neutral until the attack on Pearl Harbor. The trouble started on July 30 1942 when the New York Herald-Tribune ran an article entitled "Hitler's Angel Has $3m in US Bank". UBC's huge gold purchases had raised suspicions that the bank was in fact a "secret nest egg" hidden in New York for Thyssen and other Nazi bigwigs. The Alien Property Commission (APC) launched an investigation. There is no dispute over the fact that the US government seized a string of assets controlled by BBH - including UBC and SAC - in the autumn of 1942 under the Trading with the Enemy act. What is in dispute is if Harriman, Walker and Bush did more than own these companies on paper. Erwin May, a treasury attaché and officer for the department of investigation in the APC, was assigned to look into UBC's business. The first fact to emerge was that Roland Harriman, Prescott Bush and the other directors didn't actually own their shares in UBC but merely held them on behalf of Bank voor Handel. Strangely, no one seemed to know who owned the Rotterdam-based bank, including UBC's president. May wrote in his report of August 16 1941: "Union Banking Corporation, incorporated August 4 1924, is wholly owned by the Bank voor Handel en Scheepvaart N.V of Rotterdam, the Netherlands. My investigation has produced no evidence as to the ownership of the Dutch bank. Mr Cornelis [sic] Lievense, president of UBC, claims no knowledge as to the ownership of the Bank voor Handel but believes it possible that Baron Heinrich Thyssen, brother of Fritz Thyssen, may own a substantial interest." May cleared the bank of holding a golden nest egg for the Nazi leaders but went on to describe a network of companies spreading out from UBC across Europe, America and Canada, and how money from voor Handel traveled to these companies through UBC. By September May had traced the origins of the non-American board members and found that Dutchman HJ Kouwenhoven - who met with Harriman in 1924 to set up UBC - had several other jobs: in addition to being the managing director of voor Handel he was also the director of the August Thyssen bank in Berlin and a director of Fritz Thyssen's Union Steel Works, the holding company that controlled Thyssen's steel and coal mine empire in Germany. Within a few weeks, Homer Jones, the chief of the APC investigation and research division sent a memo to the executive committee of APC recommending the US government vest UBC and its assets. Jones named the directors of the bank in the memo, including Prescott Bush's name, and wrote: "Said stock is held by the above named individuals, however, solely as nominees for the Bank voor Handel, Rotterdam, Holland, which is owned by one or more of the Thyssen family, nationals of Germany and Hungary. The 4,000 shares hereinbefore set out are therefore beneficially owned and help for the interests of enemy nationals, and are vestible by the APC," according to the memo from the National Archives seen by the Guardian. Red-handed Jones recommended that the assets be liquidated for the benefit of the government, but instead UBC was maintained intact and eventually returned to the American shareholders after the war. Some claim that Bush sold his share in UBC after the war for $1.5m - a huge amount of money at the time - but there is no documentary evidence to support this claim. No further action was ever taken nor was the investigation continued, despite the fact UBC was caught red-handed operating a American shell company for the Thyssen family eight months after America had entered the war and that this was the bank that had partly financed Hitler's rise to power. The most Tantalizing part of the story remains shrouded in mystery: the connection, if any, between Prescott Bush, Thyssen, Consolidated Silesian Steel Company (CSSC) and Auschwitz. Thyssen's partner in United Steel Works, which had coal mines and steel plants across the region, was Friedrich Flick, another steel magnate who also owned part of IG Farben, the powerful German chemical company. Flick's plants in Poland made heavy use of slave labor from the concentration camps in Poland. According to a New York Times article published in March 18 1934 Flick owned two-thirds of CSSC while "American interests" held the rest. The US National Archive documents show that BBH's involvement with CSSC was more than simply holding the shares in the mid-1930s. Bush's friend and fellow "bonesman" Knight Woolley, another partner at BBH, wrote to Averill Harriman in January 1933 warning of problems with CSSC after the Poles started their drive to nationalize the plant. "The Consolidated Silesian Steel Company situation has become increasingly complicated, and I have accordingly brought in Sullivan and Cromwell, in order to be sure that our interests are protected," wrote Knight. "After studying the situation Foster Dulles is insisting that their man in Berlin get into the picture and obtain the information which the directors here should have. You will recall that Foster is a director and he is particularly anxious to be certain that there is no liability attaching to the American directors." But the ownership of the CSSC between 1939 when the Germans invaded Poland and 1942 when the US government vested UBC and SAC is not clear. "SAC held coal mines and definitely owned CSSC between 1934 and 1935, but when SAC was vested there was no trace of CSSC. All concrete evidence of its ownership disappears after 1935 and there are only a few traces in 1938 and 1939," says Eva Schweitzer, the journalist and author whose book, America and the Holocaust, is published next month. Silesia was quickly made part of the German Reich after the invasion, but while Polish factories were seized by the Nazis, those belonging to the still neutral Americans (and some other nationals) were treated more carefully as Hitler was still hoping to persuade the US to at least sit out the war as a neutral country. Schweitzer says American interests were dealt with on a case-by-case basis. The Nazis bought some out, but not others. The two Holocaust survivors suing the US government and the Bush family for a total of $40bn in compensation claim both materially benefited from Auschwitz slave labor during the second world war. Kurt Julius Goldstein, 87, and Peter Gingold, 85, began a class action in America in 2001, but the case was thrown out by Judge Rosemary Collier on the grounds that the government cannot be held liable under the principle of "state sovereignty". Jan Lissmann, one of the lawyers for the survivors, said: "President Bush withdrew President Bill Clinton's signature from the treaty [that founded the court] not only to protect Americans, but also to protect himself and his family." Lissmann argues that genocide-related cases are covered by international law, which does hold governments accountable for their actions. He claims the ruling was invalid as no hearing took place. In their claims, Mr Goldstein and Mr Gingold, honorary chairman of the League of Anti-fascists, suggest the Americans were aware of what was happening at Auschwitz and should have bombed the camp. The lawyers also filed a motion in The Hague asking for an opinion on whether state sovereignty is a valid reason for refusing to hear their case. A ruling is expected within a month. The petition to The Hague states: "From April 1944 on, the American Air Force could have destroyed the camp with air raids, as well as the railway bridges and railway lines from Hungary to Auschwitz. The murder of about 400,000 Hungarian Holocaust victims could have been prevented." The case is built around a January 22 1944 executive order signed by President Franklin Roosevelt calling on the government to take all measures to rescue the European Jews. The lawyers claim the order was ignored because of pressure brought by a group of big American companies, including BBH, where Prescott Bush was a director. Lissmann said: "If we have a positive ruling from the court it will cause [president] Bush huge problems and make him personally liable to pay compensation." The US government and the Bush family deny all the claims against them. In addition to Eva Schweitzer's book, two other books are about to be published that raise the subject of Prescott Bush's business history. The author of the second book, to be published next year, John Loftus, is a former US attorney who prosecuted Nazi war criminals in the 70s. Now living in St Petersburg, Florida and earning his living as a security commentator for Fox News and ABC radio, Loftus is working on a novel which uses some of the material he has uncovered on Bush. Loftus stressed that what Prescott Bush was involved in was just what many other American and British businessmen were doing at the time. "You can't blame Bush for what his grandfather did any more than you can blame Jack Kennedy for what his father did - bought Nazi stocks - but what is important is the cover-up, how it could have gone on so successfully for half a century, and does that have implications for us today?" he said. "This was the mechanism by which Hitler was funded to come to power, this was the mechanism by which the Third Reich's defense industry was re-armed, this was the mechanism by which Nazi profits were repatriated back to the American owners, this was the mechanism by which investigations into the financial laundering of the Third Reich were blunted," said Loftus, who is vice-chairman of the Holocaust Museum in St Petersburg. "The Union Banking Corporation was a holding company for the Nazis, for Fritz Thyssen," said Loftus. "At various times, the Bush family has tried to spin it, saying they were owned by a Dutch bank and it wasn't until the Nazis took over Holland that they realized that now the Nazis controlled the apparent company and that is why the Bush supporters claim when the war was over they got their money back. Both the American treasury investigations and the intelligence investigations in Europe completely bely that, it's absolute horseshit. They always knew who the ultimate beneficiaries were." "There is no one left alive who could be prosecuted but they did get away with it," said Loftus. "As a former federal prosecutor, I would make a case for Prescott Bush, his father-in-law (George Walker) and Averill Harriman [to be prosecuted] for giving aid and comfort to the enemy. They remained on the boards of these companies knowing that they were of financial benefit to the nation of Germany." Loftus said Prescott Bush must have been aware of what was happening in Germany at the time. "My take on him was that he was a not terribly successful in-law who did what Herbert Walker told him to. Walker and Harriman were the two evil geniuses, they didn't care about the Nazis any more than they cared about their investments with the Bolsheviks." What is also at issue is how much money Bush made from his involvement. His supporters suggest that he had one token share. Loftus disputes this, citing sources in "the banking and intelligence communities" and suggesting that the Bush family, through George Herbert Walker and Prescott, got $1.5m out of the involvement. There is, however, no paper trail to this sum. The third person going into print on the subject is John Buchanan, 54, a Miami-based magazine journalist who started examining the files while working on a screenplay. Last year, Buchanan published his findings in the venerable but small-circulation New Hampshire Gazette under the headline "Documents in National Archives Prove George Bush's Grandfather Traded With the Nazis - Even After Pearl Harbor". He expands on this in his book to be published next month - Fixing America: Breaking the Stranglehold of Corporate Rule, Big Media and the Religious Right. In the article, Buchanan, who has worked mainly in the trade and music press with a spell as a muckraking reporter in Miami, claimed that "the essential facts have appeared on the internet and in relatively obscure books but were dismissed by the media and Bush family as undocumented diatribes". Buchanan suffers from hypermania, a form of manic depression, and when he found himself rebuffed in his initial efforts to interest the media, he responded with a series of threats against the journalists and media outlets that had spurned him. The threats, contained in e-mails, suggested that he would expose the journalists as "traitors to the truth". Unsurprisingly, he soon had difficulty getting his calls returned. Most seriously, he faced aggravated stalking charges in Miami, in connection with a man with whom he had fallen out over the best way to publicize his findings. The charges were dropped last month. Biography Buchanan said he regretted his behavior had damaged his credibility but his main aim was to secure publicity for the story. Both Loftus and Schweitzer say Buchanan has come up with previously undisclosed documentation. The Bush family have largely responded with no comment to any reference to Prescott Bush. Brown Brothers Harriman also declined to comment. The Bush family recently approved a flattering biography of Prescott Bush entitled Duty, Honor, Country by Mickey Herskowitz. The publishers, Rutledge Hill Press, promised the book would "deal honestly with Prescott Bush's alleged business relationships with Nazi industrialists and other accusations". In fact, the allegations are dealt with in less than two pages. The book refers to the Herald-Tribune story by saying that "a person of less established ethics would have panicked ... Bush and his partners at Brown Brothers Harriman informed the government regulators that the account, opened in the late 1930s, was 'an unpaid courtesy for a client' ... Prescott Bush acted quickly and openly on behalf of the firm, served well by a reputation that had never been compromised. He made available all records and all documents. Viewed six decades later in the era of serial corporate scandals and shattered careers, he received what can be viewed as the ultimate clean bill." The Prescott Bush story has been condemned by both conservatives and some liberals as having nothing to do with the current president. It has also been suggested that Prescott Bush had little to do with Averill Harriman and that the two men opposed each other politically. However, documents from the Harriman papers include a flattering wartime profile of Harriman in the New York Journal American and next to it in the files is a letter to the financial editor of that paper from Prescott Bush congratulating the paper for running the profile. He added that Harriman's "performance and his whole attitude has been a source of inspiration and pride to his partners and his friends". The Anti-Defamation League in the US is supportive of Prescott Bush and the Bush family. In a statement last year they said that "rumors about the alleged Nazi 'ties' of the late Prescott Bush ... have circulated widely through the internet in recent years. These charges are untenable and politically motivated ... Prescott Bush was neither a Nazi nor a Nazi sympathizer." However, one of the country's oldest Jewish publications, the Jewish Advocate, has aired the controversy in detail. More than 60 years after Prescott Bush came briefly under scrutiny at the time of a faraway war, his grandson is facing a different kind of scrutiny but one underpinned by the same perception that, for some people, war can be a profitable business. Life of Prescott Bush · 1895 Born, son of Samuel and Flora Bush. Raised in Columbus, Ohio · 1917 Graduated as a BA from Yale · 1917-19 Artillery captain in US army. Served in first world war · 1921 Married Dorothy Walker, daughter of wealthy industrialist, George Herbert Walker. They have five children, including GHW Bush, later to become US president (1988-1992) · 1924 Joins Harriman Brothers in New York through introduction from father-in-law · 1930 Partner in Brown Brothers Harriman · 1942 Assets of companies of which he is director seized under Trading with the Enemy Act · 1950 Now living in Greenwich, Connecticut, he runs unsuccessfully for Republican party to represent Connecticut in US Senate. Describes himself as "moderate progressive" · 1952 Runs again in mid-term election and wins. "He looked more like a senator than any senator I've ever met," William Hildenbrand, former secretary to Senate said, according to Kitty Kelley's new Bush family biography, The Family. Takes stand against McCarthyism · 1956 Re-elected to senate · 1963 Retires from politics on health grounds · 1972 Dies CREDITS/SOURCES:
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