Wall Street and Loan Plans
Dawes plan - A plan to help Germany with their reparations problems. Charles G Dawes and Owen D Young were on the committee and co-authored the plan. Owen young President of General electric JP Morgan being a founder, he was also a trustee of the Rockefeller Foundation 1928-39. Thomas Lamont also on the committee (JP Morgan associate)
The Young Plan was a program for settling Germany's World War I reparations written in August 1929 and formally adopted in 1930. It was presented by the committee headed (1929–30) by American industrialist Owen D. Young. In addition, the Young Plan divided the annual payment, set at two billion Gold Marks, US$473 million, into two components: one unconditional part, equal to one third of the sum, and a postponable part, equal to the remaining two-thirds, which would incur interest and be financed by a consortium of American investment banks coordinated by J.P. Morgan & Co. In addition to Young, the United States was represented by J. P. Morgan, Jr., the prominent banker, and his partner, Thomas W. Lamont
Farben
"Farben at that time produced 100 percent of German synthetic rubber, 95 percent of German poison gas (including all the Zyklon B gas used in the concentration camps), 90 percent of German plastics, 88 percent of German magnesium, 84 percent of German explosives, 70 percent of German gunpowder, 46 percent of German high octane (aviation) gasoline, and 33 percent of German synthetic gasoline" October 21st 1945 NYT
"It is no exaggeration to say that without the services of German chemistry performed under the Four Year Plan the prosecution of modern war would have been unthinkable" Dr Von Schnitzeler of IG Farben stating to Spanish ambassador, Elimination of German Resources for War Hearings before a Subcommittee of the committee on military affairs United states senate 79th Congress, July 2nd 1945 Part 1-3 Page 957 or Page 317
The 1945 interrogation of I.G. Farben director yon Schnitzler reads:
"Q. What did you do when they told you that I.G. chemicals was [sic] being used to kill, to murder people held in concentration camps?
A. I was horrified.
Q. Did you do anything about it?
A. I kept it for me [to myself] because it was too terrible .... I asked Muller-Cunradi is it known to you and Ambros and other directors in Auschwitz that the gases and chemicals are being used to murder people.
Q. What did he say?
A. Yes: it is known to all I.G. directors in Auschwitz" Elimination of German Resources for War Hearings before a Subcommittee of the committee on military affairs United states senate 79th Congress, July 2nd 1945 Part 1-3 Page 988-89 or 358-59
"It is true that since 1934 or 1935, soon after the establishment of the Vermittlungsstelle W in the different works, theoretical war plant games had been arranged to examine how the effect of bombing on certain factories would materialize. It was particularly taken into consideration what would happen if 100 or 500 kilogram bombs would fall on a certain factory and what would be the result of it. It is also right that the word Kriegsspiele was used for it.The Kriegsspiele were prepared by Mr. Ritter and Dr. Eckell, later on partly by Dr. yon Brunning by personal order on Dr. Krauch's own initiative or by order of the Air Force, it is not known to me. The tasks were partly given by the Vermittlung-sstelle W and partly by officers of the Air Force. A number of officers of all groups of the Wehrmacht (Navy, Air Force, and Army) participated in these Kriegsspiele. The places which were hit by bombs were marked in a map of the plant so that it could be ascertained which parts of the plant were damaged, for example a gas meter or an important pipe line. As soon as the raid finished, the management of the plant ascertained the damages and reported which part of the plant had to stop working; they further reported what time would be required in order to repair the damages. In a following meeting the consequences of the Kriegsspiele were described and it was ascertained that in the case of Leuna [plant] the damages involved were considerably high; especially it was found out that alterations of the pipe lines were to be made at considerable cost" Dr Struss testimony to the Elimination of German Resources for War Hearings before a Subcommittee of the committee on military affairs United states senate 79th Congress, July 2nd 1945 Part 5-11 Page 1094 or 468
Standard Oil/ Rockefeller
"January 25. Thursday. Our Commercial Attache brought Dr. Engelbrecht, chairman of the Vacuum Oil Company in Hamburg, to see me. Engelbrecht repeated what he had said a year ago: "The Standard Oil Company of New York, the parent company of the Vacuum, has spent 10,000,000 marks in Germany trying to find oil resources and building a great refinery near the Hamburg harbor." Engelbrecht is still boring wells and finding a good deal of crude oil in the Hanover region, but he had no hope of great deposits. He hopes Dr. Schacht will subsidize his company as he does some German companies that have found no crude oil. The Vacuum spends all its earnings here, employs 1,000 men and never sends any of its money home. I could give him no encouragement" Ambassador Dodd's Diary edited by William E Dodd Jr and Martha Dodd Page 310
"These men were hardly out of the building before the lawyer came in again to report his difficulties. I could not do anything I asked him, however : Why did the Standard Oil Company of New York send $1,000,000 over here in December, 1933, to aid the Germans in making gasoline from soft coal for war emergencies? Why do the International Harvester people continue to manufacture in Germany when their company gets nothing out of the country and when it has failed to collect its war losses? He saw my point and agreed that it looked foolish and that it only means greater losses if another war breaks loose." Ambassador Dodd's Diary edited by William E Dodd Jr and Martha Dodd Page 363
"... in fact entirely [from] the Americans and has become known to us in detail in its separate stages through our agreements with them [Standard Oil of New Jersey] and is being used very extensively by us." Elimination of German Resources for War Hearings before a Subcommittee of the committee on military affairs United states senate 79th Congress, February 1946 Vol 10-11 Page 1304 or 154
"Q. Is it true that while the delay in divulging the buna [synthetic rubber] processes to American rubber companies was taking place, Chemnyco and Jasco were in the meantime keeping I.G. well informed in regard to synthetic rubber development in the U.S.?
A. Yes.
Q. So that at all times I.G. was fully aware of the state of the development of the American synthetic rubber industry?
A. Yes.
Q. Were you present at the Hague meeting when Mr. Howard [of Standard Oil]
went there in 1939?
A. No.
Q. Who was present?
A. Mr. Ringer, who was accompanied by Dr. Brown of Ludwigshafen. Did they tell you about the negotiations?
A. Yes, as far as they were on the buna part of it.
Q. Is it true that Mr. Howard told I.G. at this meeting that the developments in the U.S. had reached such a stage that it would no longer be possible for him to keep the information in regard to the buna processes from the American companies?
A. Mr. Ringer reported it.
Q. Was it at that meeting that for the first time Mr. Howard told I.G. the American rubber companies might have to be informed of the processes and he assured I.G. that Standard Oil would control the synthetic rubber industry in the U.S.? Is that right?
A. That is right. That is the knowledge I got through Mr. Ringer.
Q. So that in all these arrangements since the beginning of the development of the synthetic rubber industry the suppression of the synthetic rubber industry in the U.S. was part of a preconceived plan between I.G. on the one hand and Mr. Howard of Standard Oil on the other?
A. That is a conclusion that must be drawn from the previous facts" Dr. Loehrs deputy head of I.G "Tea Buro" testimony to the Elimination of German Resources for War Hearings before a Subcommittee of the committee on military affairs United states senate 79th Congress, December 11-12 1945 Vol 8-11 Page 1293 or 271
"This investigation has confirmed certain data heretofore presented to the Truman , Bone , and Kilgore committees by the Department of Justice with respect to this transaction which so seriously imperiled the war preparations of the United States . The story , in short , is that under the so - called Jasco agreement , synthetic rubber was to come under Farben's " sphere of influence . ” ' Standard was determined , however , to have an absolute monopoly of synthetic rubber developments in the United States , if and when Farben released the American rights to its process to Standard in accordance with the Jasco agreement . Accordingly , Standard fully accomplished I.G.'s purpose of preventing United States production by dissuading American rubber companies from undertaking independent research in developing synthetic rubber processes" Elimination of German Resources for War Hearings before a Subcommittee of the committee on military affairs United states senate 79th Congress Vol 8-11 December 11-12 1945 Page 1085 or 45
"Substantially the same pattern of behavior was pursued by the Paris office of the Chase Bank during German occupation, An examination of the correspondence between Chase, New York, and Chase, France, from the date of the fall of France to May, 1942 discloses that: (1) the manager of the Paris office appeased and collaborated with the Germans to place the Chase banks in a "privileged position;" (2) the Germans held the Chase Bank in a very special esteem — owing to the international activities of our (Chase) head office and the pleasant relations which the Paris branch has been maintaining with many of their (German) banks and their (German) local organizations and higher officers; (3) the Paris manager was "very vigorous in enforcing restrictions against Jewish property, even going so far as to refuse to release funds belonging to Jews in anticipation that a decree with retroactive provisions prohibiting such release might be published in the near future by the occupying authorities;" (4) the New York office despite the above information took no direct steps to remove the undesirable manager from the Paris office since it "might react against our (Chase) interests as we are dealing, not with a theory but with a situation" Morgenthau Diary Committee On The Judiciary United States Senate November 20, 1967 (Germany) Page 616 or 607
"a. Niederman, of Swiss nationality, manager of Chase, Paris, was unquestionably a collaborator;
b. The Chase Head Office in New York was informed of Nieder-man's collaborationist policy but took no steps to remove him. Indeed there is ample evidence to show that the Head Office in New York viewed Niederman's good relations with the Germans as an excellent means of preserving, unimpaired, the position of the Chase Bank in France;
c. The German authorities were anxious to keep the Chase open and indeed took exceptional measures to provide sources of revenue;
d. The German authorities desired "to be friends" with the important American banks because they expected that these banks would be useful after the war as an instrument of German policy in the United States;
e. The Chase, Paris showed itself most anxious to please the German authorities
in every possible way. For example, the Chase zealously maintained the account of the German Embassy in Paris, "as every little thing helps" (to maintain the excellent relations between Chase and the German authorities);
f. The whole objective of the Chase policy and operation was to maintain the position of the bank at any cost." Morgenthau Diary Committee On The Judiciary United States Senate November 20 , 1967 (Germany) Page 800 or 991
Memorandum From Defendant von Knieriem , 6 June 1944 about Haslams article on Standard Oil
"The closing of an agreement with Standard was necessary for technical, commercial, and financial reasons: technically, because the specialized experience which was available only in a big oil company was necessary to the further development of our process, and no such industry existed in Germany; commercially, because in the absence of state economic control in Germany at that time, IG had to avoid a competitive struggle with the great oil powers, who always sold the best gasoline at the lowest price in contested markets; Financially, because IG, which had already spent extraordinarily large sums for the development of the process, had to seek financial relief in order to be able to continue development in other new technical fields, such as buna" Trials of War Criminals Before the Nuremberg Military Tribunals, October 1946 to April 1949, Volume 7 Page 1304 or 1340 IG Farben commentary on Haslams article
"Especially in the case of iso - octane , it is shown that we owe much to the Americans because in our own work we could draw widely on American information on the behavior of fuels in motors . Moreover , we were also kept currently informed by the Americans on the progress of their production process and its further development . Shortly before the war , a new method for the production of iso - octane was found in America - alkylation with isomerization as a preliminary step . This process , which Mr . Haslam does not mention at all , originates in fact entirely with the Americans and has become known to us in detail in its separate stages through our agreements with them , and is being used very extensively by us." Trials of War Criminals Before the Nuremberg Military Tribunals, October 1946 to April 1949, Volume 7 Page 1306 or 1342 IG Farben commentary on Haslams article
"As a consequence of our contracts with the Americans, we received from them, above and beyond the agreement, many very valuable contributions for the synthesis and improvement of motor fuels and lubricating oils, which Just now during the war are most useful to us; and we also received other advantages from them. Primarily, the following may be mentioned:
(1) Above all, improvement of fuels through the addition of tetraethyl-lead and the manufacture of this product. It need not be especially mentioned that without tetraethl-lead the present methods of warfare would be impossible. The fact that since the beginning of the war we could produce tetraethyl-lead is entirely due to the circumstances that, shortly before, the Americans had presented us with the production plans, complete with their know-how. It was, moreover, the first time that the Americans decided to give a license on this process in a foreign country (besides communication of unprotected secrets) and this only on our urgent requests to Standard Oil to fulfill our wish. Contractually we could not demand it, and we found out later that the War Department in Washington gave its permission only after long deliberation. (2) Conversion of low-molecular saturates into usable gasoline (polymerization). Much work in this field has been done here as well as in America. But the Americans were the first to carry the process through on a large scale, which suggested to us also to develop the process on a large technical scale. But above and beyond that, plants built according to American processes are functioning in Germany.
(3) In the field of lubricating oils as well, Germany through the contract with America, learned of experience which is extraordinarily important for present day warfare. In this connection, we obtained not only the experience of Standard, but, through Standard, the experiences of General Motors and other large American motor companies as well. (4) As a further remarkable example of advantageous effect for us of the contract between IG and Standard Oil, the following should be mentioned: in the years 1934 / 1935 our government had the greatest interest in gathering from abroad a stock of especially valuable mineral oil products (in particular, aviation gasoline and aviation lubricating oil), and holding it in reserve to an amount approximately equal to 20 million dollars at market value. The German Government asked IG if it were not possible, on the basis of its friendly relations with Standard Oil, to buy this amount in Farben's name; actually, however, as trustee of the German Government. The fact that we actually succeeded by means of the most difficult negotiations in buying the quantity desired by our government from the American Standard Oil Company and the Dutch — English Royal — Dutch — Shell group and in transporting it to Germany, was made possible only through the aid of the Standard Oil Co." Trials of War Criminals Before the Nuremberg Military Tribunals, October 1946 to April 1949, Volume 7 Page 1309 or 1345 IG Farben commentary on Haslams article
"Since the beginning of the war we have been in a position to produce lead tetraethyl solely because, a short time before the outbreak of the war, the Americans had established plants for us ready for production and supplied us with all available experience. In this manner we did not need to perform the difficult work of development because we could start production right away on the basis of all the experience that the Americans had had for years." NYT October 19th 1945
"At the request of the Air Ministry and on direct order of Goering, I.G . Farben procured in 1938 , 500 tons of tetraethyl lead from the Ethyl Export Corporation, of the United States . The Air Ministry needed this lead because it is indispensable to the manufacture of high octane aviation gasoline and because they wanted to store up the lead in Germany to tide the Air Ministry over until such time as the plant in Germany could manufacture sufficient quantities . We were producing sufficient quantities of tetraethyl - lead for ordinary purposes but the storage of the 500 tons of tetraethyl - lead was undertaken because in case of war Germany did not have enough tetraethyl - lead to wage war , for which reason the German Reich pursued a stockpiling policy . 66 * * * Finally , it was decided to procure the tetraethyl - lead on a loan basis . All the gentlemen were very bewildered as Goering demanded a report by noon the next day . It was commonly known that tetraethyl - lead was needed as the German production in tetra ethyl - lead while sufficient for peacetime purposes , was not sufficient to wage war , and we had to obtain it immediately for aviation gasoline." Trials of War Criminals Before the Nuremberg Military Tribunals, October 1946 to April 1949, Volume 8 Page 1272-1273
"The new investment banking firm of Schroder, Rockefeller Co., Inc., will open for business today at 48 Wall Street." NYT July 20th, Vice president Avery Rockefeller
Ford
"BERLIN, Dec. 19.--A rumor is current here that Henry Ford, the American automobile manufacturer, is financing Adolph Hitler's nationalist and anti Semitic movement in Munich. Indeed, the Berlin Tageblatt has made an appeal to the American Ambassador in Berlin to investigate and interfere" NYT December 19th 1920, and rumoured he has a portrait of ford above his desk
Henry Ford receives Grand Cross of the German Eagle award NYT August 1st 1938
Edsel Ford sat on board of American IG Farben.
"(1) the business of the Ford subsidiaries in France substantially increased ; ( 2 ) their production was solely for the benefit of the Germans and the countries under its occupation ; ( 3 ) the Germans have " shown clearly their wish to protect the Ford interests ” because of the attitude of strict neutrality maintained by Henry Ford and the late Edsel Ford ; and ( 4 ) the increased activity of the French Ford subsidiaries on behalf of the Germans received the commendation of the Ford family in America" Morgenthau Diary Committee On The Judiciary United States Senate November 20 , 1967 (Germany) Page 616 or 607
German Financing
The Secret Meeting of 20 February 1933 (German: Geheimtreffen vom 20. Februar 1933) was a secret meeting held by Adolf Hitler and 20 to 25 industrialists at the official residence of the President of the Reichstag Hermann Göring in Berlin. Its purpose was to raise funds for the election campaign of the Nazi Party. Trials of War Criminals Before the Nuremberg Military Tribunals, October 1946 to April 1949, Volume 7 Page 16-17 or 7. IG Farben contributing 400,000 Reichsmarks, other German industrialists contributed too.
Went to Harvard with FDR.
"I took most of my meals at the Harvard Club, where I made friends with the young Franklin D. Roosevelt, at that time a rising New York State Senator. Also I received several invitations to visit his distant cousin Teddy, the former President, who had retired to his estate at Sagamore Hill." Ernst Hanfstaengl Unheard Witness Page 28
"One day a correspondent of the Hearst press named Kehoe obtained permission to visit Fort Hens. I managed to have a few words with him in a corner. "I know your boss well," I told him. "Will you do me a small service?" Fortunately he recognized my name. I gave him a letter, which he slipped into his pocket. It was addressed to the American Secretary of State, Cordell Hull. A few days later it was on the desk of my Harvard Club friend, Franklin Delano Roosevelt. In it I offered to act as a political and psychological warfare adviser in the war against Germany" Ernst Hanfstaengl Unheard Witness Page 310
Supporter and financer of Hitler.
Fell out with Hitler in 1941.
"September 1st Friday Henry Mann of the National City Bank spoke of the conversation he and Mr Aldnch had had some ten days before with the Chancellor at his summer place. The ideas advocated by Hitler were the same as those he had advanced to Professor Coar He is a fanatic on the Jewish problem He has no conception of international relationships He considers himself a German Messiah But despite Hitler’s attitude these bankers feel they can work with him" Ambassador Dodd's Diary edited by William E Dodd Jr and Martha Dodd Page 45
"At 1.30 Ivy Lee and his son James came to lunch. Ivy Lee showed himself at once a capitalist and an advocate of Fascism." Ambassador Dodd's Diary edited by William E Dodd Jr and Martha Dodd Page 87 Ivy Lee the Rockefeller public relations man
Morgan
"a. Morgan and Company regarded itself as a French bank, and therefore obligated to observe French banking laws and regulations, whether Naziinspired or not; and did actually do so;
b. Morgan and Company was most anxious to preserve the continuity of its house in France, and, in order to achieve this security, worked out a modus vivendi with the German authorities;
c. Morgan and Company had tremendous prestige with the German authorities, and the Germans boasted of the splendid cooperation of Morgan and Company;
d. Morgan continued its prewar relations with the great French industrial and commercial concerns which were working for Germany, including the Renault Works, since confiscated by the French Government, Puegeqt [sic], Citroen, and many others.
e. The power of Morgan and Company in France bears no relation to the small financial resources of the firm, and the enquiry now in progress will be of real value in allowing us for the first time to study the Morgan pattern in Europe and the manner in which Morgan has used its great power;
f. Morgan and Company constantly sought its ends by playing one government against another in the coldest and most unscrupulous manner." Morgenthau Diary Committee On The Judiciary United States Senate November 20 , 1967 (Germany) Page 800 or 791
"You might also be interested in knowing , Mr. Chairman , that the top I. G. Farben people and others , when we questioned them about these activities , were inclined at times to be very indignant . Their general attitude and expectation was that the war was over and we ought now to be assisting them in helping to get I.G. Farben and German industry back on its feet . Some of them have outwardly said that this questioning and investigation was, in their estimation , only a phenomenon of short duration , because as soon as things got a dittle settled they would expect their friends in the United States and in England to be coming over. Their friends, so they said, would put a stop to activities such as these investigations and would see that they got the treatment which they regarded as proper and that assistance would be given to them to help reestablish their industry" Elimination of German Resources for War Hearings before a Subcommittee of the committee on military affairs United states senate 79th Congress Vol 1-6 July 2nd, 1945 Page 632 or 14
Unverified Sources
"Much as I believe in peace as our best policy, I cannot avoid the fears which Wilson emphasized more than once in conversations with me, August 15, 1915 and later: the breakdown of democracy in all Europe will be a disaster to the people. But what can you do? At the present moment more than a hundred American corporations have subsidiaries here or cooperative understandings. The DuPonts have three allies in Germany that are aiding in the armament business. Their chief ally is the I. G. Farben Company, a part of the Government which gives 200,000 marks a year to one propaganda organization operating on American opinion. Standard Oil Company (New York sub-company) sent $2,000,000 here in December 1933 and has made $500,000 a year helping Germans make Ersatz gas for war purposes; but Standard Oil cannot take any of its earnings out of the country except in goods. They do little of this, report their earnings at home, but do not explain the facts. The International Harvester Company president told me their business here rose 33% a year (arms manufacture, I believe), but they could take nothing out. Even our airplanes people have secret arrangement with Krupps. General Motor Company and Ford do enormous businesses here through their subsidiaries and take no profits out. I mention these facts because they complicate things and add to war dangers" William Dodd US ambassador to Germany writing to FDR October 19th 1936 Edgar B Nixon FDR and foreign affairs Vol III Page 456
"It has for some years past enjoyed a very close relationship with certain branches of the research work of the I.G. Farbenin-dustrie which bear closely upon the oil industry" Walter teagle president of standard oil moving to direct American I.G NYT April 28th 1929
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