The Dulles Brothers, Harry Dexter White, Alger Hiss

Volume 12 | Issue 16 | Number 3 | Apr 20, 2014
The Asia-Pacific Journal | Japan Focus
The Dulles Brothers, Harry Dexter White, Alger Hiss, and the Fate of
the Private Pre-War International Banking System ダレス兄弟、ハ
リー·デクスター·ホワイト、アルジャー·ヒス 戦前の民間国際金融
制度の運命
Peter Dale Scott
The key to this important change was not
German translation is
Eisenhower but the Dulles brothers, formerly
available
both partners in the firm Sullivan and Cromwell,
(http://www.larsschall.com/2014/04/30/dewhich for years had represented the oil cartel:
r-us-geheimdienstapparat-und-dasschicksal-des-privaten-internationalen-
As long as his brother, John Foster
bankensystems-der-vorkriegszeit/)
Dulles, was Secretary of State, [CIA
Director] Allen Dulles had no need
The election of Dwight D. Eisenhower in 1952
to chafe under political “control.”….
had permanent consequences for U.S. foreign
An adventurous director… whose
policy. The U.S. major oil companies, which
brother held the second highest
before the election were facing criminal charges
office in the administration… was
for their cartel arrangements, instead were freed
able to act almost at will as he was
to continue their activities, until “In some of the
shielded from any unpleasant
faraway countries where it did business.…
consequences.3
Exxon’s sway over local politics and security was
greater than that of the United States embassy.”1
The 1952 Republican campaign, for which John
Parallel to this was a radical escalation in 1953 of
Foster Dulles was partly responsible, successfully
CIA covert operations. Major plots to overthrow
the governments of Iran and Guatemala, both of
attacked Truman’s supposed weakness in
which had been turned down by Truman and his
dealing with the alleged treason of two of his
Secretary of State, Dean Acheson, now
civil servants, Treasury assistant secretary Harry
proceeded, redefining America’s relationship to
Dexter White, and State Department official
the third world.2
Alger Hiss. In fact neither White nor Hiss was
1
12 | 16 | 3
APJ | JF
ever convicted of treason; nor were they ever
Nazi industrialists to guarantee their profits after
proven to have committed it. But both men’s
the war was over.” In contrast, the Morgenthau-
careers had been ruined by the sensational
White Plan for postwar Germany called for the
charges brought against them in 1948 by a
country to be deindustrialized and the power of
freshman congressman, Richard Nixon, in the
the German cartels to be broken. The pre-war
House Un-American Activities Committee
banking system linking American bankers to
(HUAC).
those who had backed Hitler was also to be
6
demolished: the meeting of Allies at Bretton
An Overview of This Essay
Woods in July 1944, organized largely by White,
had passed a resolution calling for the
It has long been known that Nixon, in his
dissolution of the BIS “at the earliest possible
interrogation of White and Hiss, was being fed
moment.”
information by FBI agents acting with the
approval of J. Edgar Hoover. This essay will
A version of the Morgenthau-White Plan was
argue that Nixon also received assistance from
approved by Truman in May 1945 as JCS (Joint
the Dulles brothers, especially in a key meeting
Chiefs of Staff policy) 1067, which directed the
between the three men on August 11, 1948, five
U.S. forces of occupation in Germany to "...take
days before White’s untimely and disputed
no steps looking toward the economic
death.
rehabilitation of Germany." 7
At stake in the meeting was the Republican
But both McKittrick and Allen Dulles had a quite
campaign of 1948, the first campaign, ultimately
antithetical vision for Germany – that its
unsuccessful, in which “the GOP dubbed the
economy should indeed be rehabilitated, and
Democrats ‘the party of treason.’”4 But deeper
eventually made the underpinning for a more
issues were also at stake. As we shall see, Harry
united Western Europe.
Dexter White, backed by Treasury Secretary
Henry Morgenthau, had his own candidates for
Thus “Dulles and others began to campaign
treasonable behavior: above all Allen Dulles’s
against…JCS 1067,” and for its replacement by
friend and former OSS agent, Thomas McKittrick,
what later came to be known as the Marshall
the American wartime president of the Bank of
Plan.8
International Settlements in Basel, Switzerland.5
On one level this was a conflict between
The BIS had handled Nazi looted gold when
powerful individuals: White in Washington
other banks had refused to do so, and at the
(Morgenthau soon retired), versus the banker
war’s end McKittrick was “arranging deals with
McKittrick and the lawyer Allen Dulles, both of
2
12 | 16 | 3
APJ | JF
whom returned after World War II to Wall Street.
other factors soon made Washington agree to the
But it was also an institutional conflict between
replacement of JCS 1067 by the Marshall Plan
Washington and Wall Street, because each center
(which perhaps would have been better called
was initially united behind conflicting visions for
the Dulles Plan).
the future of Germany, and also for the future of
But there were deeper aspects to the conflict. The
the pre-war international banking system uniting
Dulles brothers were determined to destroy, not
Germany and America – at the heart of which
just a plan for Germany which they disliked, but
was the BIS. Another way to say this is that it
the Democratic New Deal by which the party
was a contest between the conflicting visions of
under first Roosevelt and then Truman had
the state (Washington) and the deep state (Wall
restricted the traditional freedoms of Wall Street,
Street).
and were now threatening to break up the oil
In this contest, as in many others at this time,
Washington lost, and Wall Street won.
cartel. Here the Republicans had their eyes on
9
Harry Dexter White in particular.
The reason then given for this, and still believed
The Dulles brothers and their allies,
by some intelligent people, was that White was a
who argued that Germany must be
spy. But as we shall see, there are also those
11
rebuilt as rapidly as possible as a
who believe that the evidence for this is very
bulwark against the Soviet Union,
debatable. We shall consider the suggestion of
triumphed over Morgenthau and
Anthony Summers and others that Allen Dulles
White. The BIS returned the looted
and the CIA, as early as July 1948, were the
Nazi gold, and the calls for its
source of the furor over the alleged treason of
dissolution faded away.10
first White, and then (after White’s death in
August 1948) a far less prominent substitute
There are various reasons for Wall Street’s
figure, Alger Hiss.12
victory. Prominent among these were the death
of Roosevelt and his replacement by Truman
Summers suggests that Allen Dulles, even while
with his conservative Secretary of State James
still a Wall Street lawyer, may have had access to
Byrnes. Perhaps even more important was the
a secret weapon not available to a mere Treasury
brutish behavior of Stalin in eastern Europe, and
assistant secretary like White – the VENONA
the revelation (thanks to the 1946 defection of a
record of deciphered Soviet communications.
Soviet code clerk in Ottawa), that Moscow had a
VENONA, Harry Dexter White, and Alger Hiss
robust network of spies in the west. These and
3
12 | 16 | 3
APJ | JF
Many on the left have referred to the post-war
prosecutions of Alger Hiss and the Rosenbergs as
“show trials,” alleging that their underlying
purpose was not to determine guilt or innocence,
but to influence public opinion by publicizing a
guilt already determined, as a warning against
dissent. But the spy scare of the 1940s was at least
partly genuine, based largely on evidence from
the newly translated VENONA record of Soviet
The Bank of International Settlements HQ in Basel
transmissions. It is certain that VENONA
The Dulles brothers, as lawyers at Sullivan and
intercepts helped identify and convict spies such
Cromwell, had played key roles in the inter-war
as Judith Coplon, even though, for security
western financing and refinancing of German
reasons, these intercepts were not introduced at
debt. A primary bank in these transactions was
their trials.13
the British merchant bank J. Henry Schröder and
VENONA evidence also was used to raise
its American subsidiary the J. Henry Schroder
suspicions about two other suspects, senior
Banking Corporation, where Allen Dulles served
Treasury official Harry Dexter White and Alger
as director and his brother as attorney. A web of
Hiss. However the VENONA evidence against
international banking connections was created
these two men is still fiercely debated. And the
between the wars; and much of this web “was
campaign against both men was not powered by
connected to the BIS [Bank of International
security concerns alone. In part at least also it
Settlements], via the Dulles brothers and their
was a by-product of a deeper conflict over the
friends on Wall Street and in London and
future of America -- between Wall Street
Germany.”14
(represented by the Dulles brothers) and the
Roosevelt New dealers like Treasury Secretary
remnants of the New Deal (represented by
Henry Morgenthau and his assistant White
White, a principal architect of the International
intended to dismantle this complex network with
Monetary Fund and the World Bank.)
German banks and corporations after World War
II: in particular, they “loathed the BIS, seeing it,
correctly, as a channel for the perpetuation of
Nazi economic interests in the United States.”15
Their principal target was the wartime BIS
president Thomas McKittrick (formerly of the
4
12 | 16 | 3
APJ | JF
Boston banking firm Lee, Higginson)– rightly so,
BIS…. No delegation spoke publicly
in the opinion of Adam Lebor, who writes that
in defense of the BIS. But behind the
“many of the things that McKittrick was doing,
scenes its defenders – sections of the
such as gold and foreign exchange deals with the
State Department, Wall Street, the
Reichsbank after Pearl Harbor, were
Bank of England… went into
treasonable.” Lebor adds that McKittrick, a
action…. Eventually a new
personal friend of Allen Dulles, came to New
Norwegian-Dutch resolution calling
York and hired an attorney “to persuade the
for the liquidation of the bank at
Treasury to unblock the BIS’s funds. His choice
“the earliest possible moment” was
was never in doubt: John Foster Dulles.”16
finally agreed.17
The 1944 Bretton Woods Conference
Thomas McKittrick, American Head of the Swiss-based
Bank for International Settlements
The Morgenthau-White opposition to the BIS was
consistent with their support of the Morgenthau
In July 1944, at Bretton Woods, Morgenthau and
Plan, endorsed by Roosevelt and Churchill at
White led the American delegation at the
Quebec, which called for the partial
conference which successfully established the
deindustrialization of Germany. Though this
International Monetary Fund, where White
extreme proposal was soon modified, Truman in
eventually became the executive director and
May 1945 approved JCS (Joint Chiefs of Staff
U.S. representative. With the IMF at the center of
policy) 1067, which directed the U.S. forces of
the new international system, the two men also
occupation in Germany to "...take no steps
looking toward the economic rehabilitation of
wanted the BIS to be abolished. On
Germany or designed to maintain or strengthen
July 10, 1944, they seemed about to
the German economy."18
get their wish. Wilhelm Keilhau, of
the
Norwegian
delegation,
But both McKittrick and Allen Dulles had a quite
introduced a motion to liquidate the
antithetical vision for Germany – that its
5
12 | 16 | 3
APJ | JF
economy should indeed be restored,
decisively defeated by 1948. Only in the Clinton
strengthened, and eventually made the
era, more than half a century later, did some
underpinning for a more united Western Europe.
Americans’ mistrust of the BIS and McKittrick
We know from an OSS communication to Allen
become known. At a minimum,
Dulles that, even before the end of the war,
McKittrick as president of the BIS “had already
McKittrick was suspected by Allied
concluded an agreement [with German
authorities of helping Axis countries
industrialists!] to ‘preserve the industrial
substance of the Reich.’”
acquire funds the U.S. government
19
had tried to freeze. He maintained
that the BIS was neutral and that no
Thus “Dulles and others began to campaign
looted gold was held by the BIS. The
against…JCS 1067,” and for its replacement by
U.S. Office of Strategic Services, the
what later came to be known as the Marshall
forerunner
Plan.20 By mid-1947 the remnants of
collaborated with the Nazis. A
report given to President Bill
General Lucius Clay, the American
Clinton alleged that the Axis powers
commander of occupation forces,
was
Central
evidence that McKittrick had
had been so watered down by
it
the
Intelligence Agency, had found
Morgenthau’s deindustrialization program
that
of
had virtually taken over the BIS.22
meaningless….
Washington’s JSC Directive 1779,
John Loftus and Marcus Aarons go much further,
passed in the summer of 1947,
accusing Allen Dulles and McKittrick together of
institutionalized this change in
having conspired to move Nazi looted gold in the
policy. German industry would be
post-war erato Argentina.
rebuilt; its steel mills and forges
23
A more cautious
account is given by James Calvin Baker,
would once again be the
implicating the BIS under McKittrick’s wartime
powerhouse of Europe. 2 1
tenure, but not Dulles:
Who Was Guilty of Treason? McKittrick or
After the war, McKittrick was
White?
appointed to a high-level position at
The plans of White and other New Dealers for
Chase Manhattan [sic, i.e. Chase
post-war Germany and the BIS had thus been
National] Bank…. And for nearly 50
6
12 | 16 | 3
APJ | JF
years, the operations involving the
Was White one of these victims? White died
the BIS and Swiss banks and looted
before he could be indicted, and the charges
assets by the Nazis were hidden in
against him are still disputed in America. 26
classified documents…. The U.S.
Undoubtedly White shared information with
Treasury Department [under White]
officials of the Soviet Union, which was then an
tracked Nazi gold as it moved in
ally; but the weight of evidence is that he was
and out of the BIS. Several of these
neither a Communist Party member nor securely
transactions were found to have
under Soviet control. Chambers himself said of
occurred between the BIS and major
White, "His motives always baffled me.”27
Swiss banks. From these Swiss
banks, money was used by the
Nazis to purchase war materiel or
was wired to accounts in Spain,
Argentina, and he Middle East.24
But Wall Street rallied to protect McKittrick,
offering him positions at first the Chase National
Bank, and then, at the invitation of Averell
Harriman, to administer what became the
Marshall Plan. Harriman also appointed an
advisory committee consisting of Owen Young, a
principal author of the pre-war German debt
arrangements, “and of course Allen Dulles, who
saw the Marshall Plan as the means of dealing
Harry Dexter White, Architect of the Post-War
International Monetary Fund
the death blow to the spread of Communism in
Western Europe.”25
What is certain is that VENONA transcripts were
One of the things that saved McKittrick and the
used to persuade US officials that White was a
BIS was the spy scare of the 1940s, which rightly
Soviet spy – ending his career. It is clear too that
or wrongly implicated White. Undoubtedly real
hysteria also played a role. John Loftus and Mark
spies were discovered, some of them thanks to
Aarons claim that the Dulles brothers helped
deciphered VENONA intercepts, but others were
foment this hysteria, and Richard Nixon “became
the victims of hysteria.
Allen Dulles’s mouthpiece in Congress.” 2 8
7
12 | 16 | 3
APJ | JF
Anthony Summers charges in addition that
the [1946] Nixon campaign was a creature of big
Nixon was fed secrets by the CIA as early as July
Eastern financial interests,” including “the major
1948, before Allen Dulles joined the organization
oil companies.” And a representative of Standard
he had helped create.
Oil, a company (represented by Sullivan and
29
Cromwell) whose shady government dealings
Nixon, Voorhis, and the BIS
Voorhis had exposed, was present at the meeting
which selected Nixon as a candidate.32
Loftus and Aarons date this secret collaboration
between Allen Dulles and Nixon back to 1945.
Nixon and the Dulles Brothers, August 11, 1948
– and Harry Dexter White
According to several of our sources
Most accounts of Nixon’s career point to an
among the 'old spies,' Richard
important meeting between Nixon and John
Nixon's political career began in
Foster Dulles at the latter’s Republican Party
1945, when he was the navy officer
headquarters in the Roosevelt Hotel on August
temporarily assigned to review . . .
11, 1948, a meeting attended also by Allen Dulles
captured Nazi documents. Allen
and Douglas Dillon of Dillon Read, “one of the
Dulles allegedly told him to keep
banking firms that [had] financed Hitler.”33 The
quiet about what he had seen and,
conventional account is that Nixon approached
in return, arranged to finance the
the Dulleses with the proceedings from the
young man’s first congressional
House Un-American Affairs Committee (HUAC)
campaign against [incumbent
on which he sat.34 Virtually all accounts say that
Congressman] Jerry Voorhis.30
their discussion concerned Alger Hiss.
Although Loftus and Aarons do not mention it,
Voorhis was the principal ally and spokesman in
Congress of Morgenthau and White’s charges
against the Bank of International Settlements,
having called for an investigation of the BIS in
1943.31 Dulles would therefore unquestionably
have had another motive to see Voorhis defeated.
Voorhis himself wrote in an unpublished 1947
John Foster Dulles, Vice-President Richard Nixon, and
the Shah of Iran
book manuscript that he had a lot of
documentation “which would have shown how
8
12 | 16 | 3
APJ | JF
It is probable however that when Nixon met with
the Dulles brothers on August 11, 1948, the most
urgent matter discussed was not Hiss, but the
man then principally targeted by HUAC’s
investigation – Harry Dexter White.
White had been the main focus of HUAC
attention in 1948, both when Elizabeth Bentley
had testified on July 31, and Whittaker Chambers
on August 3. White and Lauchlin Currie,
Bentley’s two principal targets (together with
William Donovan’s law partner Duncan Lee),
were due to testify in reply on August 13 (two
days after the Dulles-Nixon meeting), along with
Alger Hiss’s brother Donald. All three men
would deny Bentley’s charges in their entirety,
including Bentley’s charge (corroborated by
Chambers) that White had “placed Communists
Alger Hiss After His Conviction on Perjury Charges
in government posts to influence policy.”35
Matters would change five days later. On August
Chambers of course would be vindicated by
16, three days after his stressful HUAC
Hiss’s ultimate conviction, twice, on perjury
testimony, White died, after suffering two swift
charges. But the main importance of Hiss at the
heart attacks. It was then that Hiss became by
Dulles-Nixon meeting on August 11, 1948, was as
default HUAC’s principal target (and the key to
a challenge to the credibility of Chambers, a
Thomas Dewey’s presidential ambitions in the
witness against the far more important target of
same year).
White. 36 One of the two men, either Hiss or
Chambers, was apparently guilty of perjury. And
I mention all this because of the suggestion of
Truman’s Justice Department was in the process
many authors that, in post-war Washington,
of preparing a perjury indictment against
either White had to be discredited, or a number
Chambers, a key witness against White.37
of those involved in the Wall Street-Berlin
financial axis, including not just Thomas
McKittrick but possibly also Prescott Bush (and
9
12 | 16 | 3
APJ | JF
perhaps even Bush’s lawyer Allen Dulles), risked
likely to be privy to whatever the
being indicted. As Glen Yeadon and John
OSS had learned about Hiss.
40
Hawkins write,
And Summers asks whether a secret weapon
White…was arguably one of the
used by the Dulleses and Nixon against White
government’s most important
and Hiss was a tendentious interpretation of
postwar economists. However, due
material which existed about White and Hiss in
to his liberal economic policies, as
the then secret VENONA transcripts of
well as his relentless pursuit of the
deciphered Soviet cable traffic:
financial
dealings
of
large
corporations with the Nazis, he had
A fascinating question, still
to be removed.
38
unresolved, is whether Nixon’s
secret sources – J. Edgar Hoover,
Death did remove White on August 16, 1948, five
Allen Dulles, or other OSS/CIA
days after the Dulles-Nixon meeting on August
contacts – were aware by 1948 of the
11. But whereas most accounts say White died of
deciphered VENONA messages –
a heart attack (e.g. Black, Richard M. Nixon
, 118),
and of the ALES cable in particular
the well-informed journalist Willard Edwards
[of March 30, 1945]– that seem to
reported in 1949 that White’s cause of death, after
point to Hiss’s guilt.41
being admitted to hospital with a heart attack,
was in fact an overdose of digitalis.39
He argues suggestively that “Allen Dulles may
well have learned” of the VENONA evidence;
Summers charges that in August 1948, as the
and “if as reported he briefed Nixon on the case –
HUAC investigation of Alger Hiss
then therein may perhaps lie the explanation for
Nixon’s confidence in his pursuit of Hiss.”42 This
faltered in the face of Hiss’s denials,
theory would also explain why Nixon, backed by
Nixon received confirmation that
Hoover, relied on allegations that now look
Hiss had indeed known Chambers.
extremely dubious – the most dubious of all (and
It came, according to CIA sources,
yet the most persuasive at the time) being the so-
from Allen Dulles. Dulles, who had
called Pumpkin Papers.
had a run-in with Hiss years earlier,
was at this time in close contact with
his former chief, Donovan, and was
10
12 | 16 | 3
APJ | JF
national security reasons, it could not be revealed
at their trial that the Soviets’ code had been
broken, substitute evidence, some of it
unconvincing, was used to obtain conviction. The
result was to subject the U.S. justice system to a
bifurcation of knowledge, between the public
evidence presented in open courts, and a deeper
history known only to those cleared for the
secrets of the deep state.
Richard Nixon in a Moment of Triumph
The grand jury convened to indict Chambers was
persuaded in December 1948 by Nixon, in an
extraordinary performance by a Congressman, to
indict Hiss instead. Nixon did so by the
controversial act of giving the grand jury copies
of films from the “Pumpkin Papers.”
Nixon had been warned by a fellow
Congressman that the film belonged
to the House and should not be
given to the grand jury.
But Nixon, as he later wrote in his
book ''Six Crises,'' saw the film as
crucial evidence of Hiss's guilt, was
convinced the Justice Department
was not taking the investigation
seriously and feared that the grand
jury might seek to indict Chambers
for perjury instead of Hiss.43
It is clear that in the case of the Rosenbergs the
“ALES” in the VENONA Files -- Was This Alger Hiss?
VENONA evidence played a key role in their
Something like this bifurcation appears to have
identification and prosecution. 44 Because, for
11
12 | 16 | 3
APJ | JF
occurred also in the still disputed cases against
Chambers, where they were retrieved by
first Harry Dexter White and then Alger Hiss.
investigators the next day. Two of these rolls
contained classified State Department cables on
Nixon, Hiss, and the Pumpkin Papers
economic relations with Germany, and on SinoJapanese affairs. Three more were withheld for
48
What is clear is that judicial process in the Hiss
decades: according to Nixon, “the State
case was overridden and predetermined by
Department still felt…that publication…would
Nixon’s election-year persecution of Hiss in the
be injurious to the national security.” In response
media. In an essentially favorable biography of
to a FOIA suit, Alger Hiss in 1975
Nixon, Conrad Black concedes that “Nixon
attacked Hiss however he could, having
was allowed to examine the three withheld rolls
conducted a press assault after he had sworn
of microfilm. Two were from the U.S. Navy
under oath to maintain confidentiality about
HUAC’s executive session proceedings.”
Department and contained instructions on how
45
to use fire extinguishers, life rafts, and chest
Speaking to his White House staff on July 1, 1971,
parachutes; the third roll was blank.49
and contemplating a similar strategy against the
leakers of the Pentagon Papers, Nixon himself
It would seem that “national security” had been
recalled:
invoked to protect, not the film, but the
reputation of those like Nixon who exploited it.50
We won the Hiss case in the papers.
The Pumpkin Papers, in other words, amounted
We did. I had to leak stuff all over
to far less than what the press and the public
the place. …. It was won in the
believed. But the Pumpkin Papers were a media
papers. We have to develop now a
coup at the time, thanks to an elaborate
program, a program for leaking out
stratagem, designed to keep the papers in the
information. We're destroying these
hands of HUAC and out of the hands of
people in the papers.46
Truman’s hostile Justice Department. The
stratagem, designed with the approval of
Hoover, was the work of Nixon, HUAC Chief
Investigator Robert Stripling, and an almost
And in 1948 the newspapers eventually took
forgotten mastermind of the Pumpkin Papers
seriously, as mainstream historians like Stephen
scenario: Washington journalist Bert Andrews of
Ambrose have continued to take seriously, the
“Pumpkin Papers” -- five microfilm
47
the New York Herald Tribune
.51
rolls
planted in an outdoor pumpkin by Whittaker
On December 1, 1948, UP carried a wire story,
12
12 | 16 | 3
APJ | JF
stating, “The Justice Department investigation [of
dagger scene that fired the national
Hiss and Chambers] is about to die for lack of
imagination, an agent of the
evidence…. Unless something new turned up
Committee served a subpoena on
soon, officials said, there would be little use
the ex-Communist; Chambers led
going to grand jury ... to see if there were
him in darkness to a pumpkin in his
grounds for a perjury charge against either
garden, and from the pumpkin he
man.” 52 That same night, Stephen Ambrose
drew five rolls of microfilm
writes, Stripling and Nixon drove out to
containing photostatic copies of
Chambers’ Westminster farm and heard from
confidential and secret documents
Chambers that he had “another bombshell.”
stolen from the State Department. A
New York Grand Jury, on the verge
of indicting Whittaker Chambers for
You keep that second bombshell,”
perjury, reversed itself when Nixon
Nixon said. Don't give it to anybody
rushed to New York and testified
except the committee. Why he did
that it must have been Hiss who lied
not issue a subpoena then and there
in saying he had not turned official
on Chambers for the remaining
documents over to Chambers.54
documents [the Pumpkin Papers] is
another of the many mysteries in the
case. In any event, he did not -- he
This account fails to mention that, as a
and Stripling drove back empty-
conservative website now concedes, the pumpkin
handed…. Back in Washington,
was one Chambers “had hollowed out the night
Nixon phoned Bert Andrews [who
before” – i.e. the night of Nixon’s visit.55
told him] “get hold of Bob Stripling.
Tell him to serve a blanket subpoena
on Chambers to produce anything
and everythinghe still has in his
possession.53
A pro-Nixon biography summarizes the
consequences:
The next evening, in a cloak-and-
The Hollowed-Out Pumpkin at Whittaker Chambers’ Farm
13
12 | 16 | 3
APJ | JF
What also fired the national imagination were the
and kept him advised of other
dramatic photos of Nixon, who had left on a sea
developments in the case through
voyage, returning “in theatrical fashion,
his sources in the White House….
transferring from his liner to a coast guard
Andrews proved to be an invaluable
seaplane, then flying to Florida to be met by a
connection and friend. He not only
posse of reporters.” 5 6 This is the answer to
helped brief the younger, rawer
Ambrose’s mystery of why the subpoena was not
Nixon on strategy, he helped
served by Nixon on December 1, nor the
legitimize
microfilm rolls simply taken.
reporters. 5 9
The
him
with
other
Chamber-Hiss
Press reaction to the Pumpkin Papers at the time
controversy…was once again front-
was rather mixed, with many liberal journalists
page news. … Reporters and
still inclined to favor the well-spoken Hiss over
photographers
to
the young upstart Nixon. But that support waned
Westminster. Even staid dailies ran
after Hiss’s conviction in 1950, possibly
pictures with arrows indicating the
influenced by Russia’s successful test of an atom
pumpkin patch. And there was the
bomb. Public criticism of the “Pumpkin Papers”
microfilm. Its contents remained
drama – or farce – became closely restricted to
secret and under twenty-four hour
Hiss’s waning supporters, especially after the
guard…. However [Stripling] did let
convictions of the Rosenbergs during the Korean
Bert Andrews read some of the
War, when the choice presented to everyone was
documents.57
now whether to side with the government, or the
swarmed
Communist enemy.
In all of this Nixon was coached by Andrews “on
how
to
handle
the
By 1968 the columnist Drew Pearson was a
Hiss-Chambers
maverick in his unpopular reproof of the US
confrontation.”58 David Halberstam adds that
press for having “glossed over the fact that the
pumpkin papers had been planted there as a
By this time Andrews was not just a
phony but sensational plot so [Nixon] could
reporter covering a story, he was
discover them and make headlines.” 60 But I
friend adviser, press officer, and
believe Pearson’s salty reproof to have been
reporter for Nixon…. He had
justified.
steadied Nixon and advised him,
Press coverage of the “Pumpkin Papers” in 1948
14
12 | 16 | 3
APJ | JF
was intense, because the public was aroused by
U.S. corporate interests abroad by crushing local
legitimate concerns much wider than the fate of
governments that had been democratically
Alger Hiss. One larger issue – how much the U.S.
elected -- from Guatemala in 1954 to Panama in
should commit to supporting Chiang Kai-shek –
1989.
62
aroused a narrower segment of U.S. public
The claims against White and Hiss continued for
opinion than another: how Roosevelt and
years to feed the phobic hysteria we remember as
Churchill could at Yalta in 1945 have ratified the
McCarthyism. And unfortunately they continue
delivery of Catholic eastern Europe into the
to the present.
63
hands of Stalin.
On the institutional level the results of the
Washington-Wall Street conflict, initially at least,
Hiss had accompanied Roosevelt and his
were less depressing. Germany was
Secretary of State Edward Stettinius to Yalta. Few
reconstructed as the strongest economy of
today would ascribe to the “falsely claimed”
western Europe; however Nazism did not
charge by Senator McCarthy “that Hiss had been
seriously revive. The era of private banking
integrally involved in drafting the Yalta
influence, as symbolized by the BIS, was also
agreements.” But at the time the possibility of
restored, but within a new framework which also
treason by White and Hiss was an unresolved
incorporated the public institutions of the
question, exploited vigorously by Republican
International Monetary Fund and the World
campaign manager Herbert Brownell in his
Bank.
61
unsuccessful 1948 campaign to elect Governor
For a quarter century, until it ended under Nixon
Thomas Dewey, and his successful campaign in
in 1971, the Bretton Woods system largely
1952 to elect Eisenhower. It thus helped make
worked, and the BIS functioned as part of its
John Foster Dulles Secretary of State, and Allen
infrastructure. America prospered; and there
Dulles Director of Central Intelligence.
were signs of a healthy reduction in income
The two brothers promptly illustrated their break
disparity, not just in America, but also in the
with Truman’s foreign policy by approving what
Third World. Discussing the researches of the
Truman had rejected, the use of CIA resources to
economist Thomas Piketty into the reduced
rescue the Anglo-Iranian Oil Company (now BP)
income inequality of that era, Richard Brinkman
from nationalization by Iran. The gates had been
has written, “The immediate period after WWII,
opened to four decades in which the resources of
from 1950 to 1973, has come to be called the
the American deep state would be used to defend
Golden Age…. a close approximation to the best
15
12 | 16 | 3
APJ | JF
that in practice can be obtained from a capitalist
Brothers, Harry Dexter White, Alger Hiss, and the
economy.”
Fate of the Private Pre-War International Banking
64
System" The Asia-Pacific Journal, Vol. 12, Issue 16,
Thanks to the Vietnam War and other factors,
No. 3, April 21, 2014.
America went off the gold standard in 1971. Since
then the dollar has been sustained by a system of
Notes
high petroleum prices, highly profitable to the oil
1
cartel, for which increasingly impoverished third
Steve Coll, Private Empire: ExxonMobil and
American Power(New York: Penguin Press, 2012),
world countries are forced to pay in dollars.
19-20. The name Exxon was used from 1973.
That is another story, too complex to be told here.
2
But a major factor in the eventual collapse of the
Bryce Wood, The Dismantling of the Good
Neighbor Policy(Austin: University of Texas
Bretton Woods system was the success of the
Press, 1985), 159: “In writing to Truman on 3 May
Dulles brothers in freeing Wall Street and the oil
1961 about the Bay of Pigs fiasco, Acheson said:
majors from the restraints of law.
Why we ever engaged in this asinine Cuban
Peter Dale Scott , a former Canadian diplomat
adventure, I cannot imagine. Before I left [the
and English Professor at the University of
department] it was mentioned to me and I told
California, Berkeley, is the author of Drugs Oil
my informants how you and I had turned down
and
War
similar suggestions for Iran and Guatemala and
(http://amzn.com/0742525228?tag=theasipacjo0
why I thought this Cuban idea had been put
b-20),
aside, as it should have been” [citing Dean
The
Road
to
9/11
(http://amzn.com/0520237730?tag=theasipacjo0
Acheson, Among friends: personal letters of Dean
b-20), and The War Conspiracy: JFK, 9/11, and
Acheson, ed, David S. McLellan and David C.
the
Acheson (New York: Dodd, Mead, 1980), 159].
Deep
Politics
of
War
(http://amzn.com/0980121361?tag=theasipacjo0
3
Tom Wicker, New York Times
, April 29, 2966.
War Machine: Deep Politics, the CIA Global
4
Paul S. Boyer et al., The Enduring Vision: a history
Drug Connection and the Road to Afghanistan
of the American people
, Volume II (Lexington, MA:
(http://amzn.com/0742555941?tag=theasipacjo0
D.C. Heath and Co., 1995), 812.
b-20). His most recent prose book is American
b-20). His website, which contains a wealth of his
writings,
is
5
here
Some in Washington wished to indict other
Wall Street figures for wartime collaboration
(http://www.peterdalescott.net/q.html).
with Nazi Germany. Among those investigated
Recommended citation: Peter Dale Scott, "The Dulles
16
12 | 16 | 3
APJ | JF
were Herbert Walker and his son-in-law Prescott
sa.usembassy.de/etexts/ga3-450426.pdf).
Bush (father of George H.W. Bush), for their role
8
in representing the American interests of Fritz
(Washington: Regnery, 2009), 373.) For a
Thyssen, the German mogul who financed Hitler.
relatively dispassionate account of Allen Dulles’s
According to John Loftus, Allen Dulles may also
wartime opposition to Roosevelt’s intentions to
have been involved: “If the investigators realized
de-industrialize Germany, see e.g. Stuart
that the US intelligence chief in postwar
Eizenstat, co-
Germany, Allen Dulles, was also the Rotterdam
bank's lawyer, they might have asked some very
ordinator, “U.S. and Allied Efforts To Recover
interesting questions. They did not know that
and Restore Gold and Other Assets Stolen or
Thyssen was Dulles' client as well. Nor did they
Hidden by Germany During World War,”
ever realize that it was Allen Dulles's other client,
(http://apjjf.org/admin/site_manage/details/fc
Baron Kurt Von Schroeder who was the Nazi
it.usf.edu/holocaust/resource/gold/gold.pdf)
trustee for the Thyssen companies which now
37:
claimed to be owned by the Dutch. The
“Dulles looked forward to a postwar settlement
Rotterdam Bank was at the heart of Dulles'
that envisioned the United States working closely
cloaking scheme, and he guarded its secrets
with European business and banking circles to
jealously” (John Loftus, “How the Bush Family
reshape Western and Central Europe according
Made Its Fortune from the Nazis,”
to American interests.” See also Stuart Eizenstat,
(http://www.tetrahedron.org/articles/new_wor
ld_order/bush_nazis.html)
James Srodes, Allen Dulles: master of spies
Imperfect Justice: Looted Assets, Slave Labor, and the
Tetrahedron.org,
Unfinished Business of World War(Jackson,
II
TN:
September 27, 2000; cf. John Loftus and Mark
PublicAffairs, 2009).
Aarons, The Secret War Against the Jews
New York: St.
Martin’s Press, 1994], 358-60).
9
Two other relevant examples: Truman in 1945
Adam LeBor, “Meet the American Banker Who
terminated General Donovan’s plans to convert
Helped Hitler Loot Jewish Gold—While Spying
OSS into a peacetime CIA; but two years later he
6
for the OSS,” Tablet: A New Read on Jewish Life
, was persuaded to accept a plan, drafted largely
August 30, 2013,
7
by Allen Dulles, for just such a CIA. In 1948
Frank W. Thackeray, ed., Events that Changed
Germany(Westport, CT: Greenwood Press, 2004),
Defense Secretary James Forrestal preferred that
funds for the anti-Communist parties in the 1948
Italian election should be raised privately, and
170. For text of JCS 1067, see here
the hat was passed at the elite Brook Club in
(http://apjjf.org/admin/site_manage/details/u
New York. But Allen Dulles, still just a lawyer,
17
12 | 16 | 3
APJ | JF
persuaded the CIA to take over the funding
series of powerful cartels. John Foster Dulles
program.
carried out much of the pioneering legal work for
10
these.”
Adam LeBor, “Meet the American Banker Who
Helped Hitler Loot Jewish Gold—While Spying
15
for
OSS,”
principal author of the so-called Morgenthau
(http://www.tabletmag.com/jewish-news-and-p
Plan to deindustrialize Germany. At the same
olitics/143053/hitlers-american-banker/2) Tablet:
time, White “tried without success [against
A New Read on Jewish Life
, August 30, 2013.
Morgenthau] to soften the plan by allowing
11
the
Germany to rebuild the industries in the Ruhr
Eric Rauchway, “How the Soviets saved
under international supervision” (James M.
capitalism,”
Boughton, “The Case against Harry Dexter
(http://arikelman.org/wp-content/uploads/201
White: Still Not Proven” [IMF Working Paper
3/04/How-the-Soviets-saved-capitalismTLS.pdf) TLS: The Times Literary Supplement
,
April 5, 2013.
12
WP/00/149, 2000], 12.) This fact challenges one
of the common claims against White: that he
wished to weaken Germany in order to please
the USSR.
Anthony Summers with Robbyn Swan, The
Arrogance of Power: The Secret World of Richard
16
Nixon (New York: Viking, 2000), 63.
17
13
Lebor, Tower of Basel,95. White was the
“On February 8, 1951, about a month before the
Lebor, Tower of Basel,96.
Lebor, Tower of Basel,121-22, 124. Cf. Benn Steil,
The Battle of Bretton Woods: John Maynard Keynes,
scheduled start of the trial, the Joint
Harry Dexter White, and the making of a new world
Congressional Committee on Atomic Energy met
order (Princeton: Princeton University Press,
in secret session in Washington to discuss the
2013); James Calvin Baker, Bank for International
Rosenberg prosecution… The main purpose of
Settlements: Evolution and Evaluation (Westport,
the meeting was to determine what classified
CT: Greenwood Press, 2002), 7: “During World
information could be made public at the trial”
War II, some attempts were made to abolish the
(Curt Gentry, J. Edgar Hoover: the man and the
BIS, so the Federal Reserve delayed joining the
secrets[New York: Norton, 1991], 421)
Board. After the war, the International Monetary
Adam Lebor, Tower of Basel: the shadowy historyFund (IMF) and the World Bank were established
of the secret bank that runs the world
(New York: at the Bretton Woods, New Hampshire,
14
conference to form agencies to facilitate the
Public Affairs, 2013), 17. Cf. p. 37: “The Standard
finance and development operations of the
Oil-IG Farben agreement set the pattern for a
18
12 | 16 | 3
APJ | JF
United Nations. U.S. officials believed the BIS
Imperfect Justice: Looted Assets, Slave Labor, and the
operations might be co-opted by these new
Unfinished Business of World War(Jackson,
II
TN:
agencies. However, the United States position on
PublicAffairs, 2009).
this matter was mellowed by the belief that the
BIS might be able to perform beneficial
operations with the IMF especially and, perhaps,
with the World Bank.”
18
Frank W. Thackeray, ed., Events that Changed
22
James Calvin Baker, The Bank for International
CT: 2002), 203. Cf. John Singleton, Central Banking
in the Twentieth Century
(Cambridge: Cambridge
University Press, 2011), 149: “In 1948 the BIS
170. For text of JCS 1067, see here
agreed to return 3,740 kg of looted gold to the
(http://apjjf.org/admin/site_manage/details/u
original owners. After this concession, the US
sa.usembassy.de/etexts/ga3-450426.pdf).
20
Lebor, Tower of Basel,138.
Settlements: Evolution and Evaluation
(Westport,
Germany(Westport, CT: Greenwood Press, 2004),
19
21
assets of the BIS, which had been frozen during
the war, were unblocked.”
Lebor, Tower of Basel,120.
James Srodes, Allen Dulles: master of spies
23
Loftus and Aarons, The Secret War Against the
(Washington: Regnery, 2009), 373.) For a
Jews, 109-13. Citing testimony from a former
relatively dispassionate account of Allen Dulles’s
naval intelligence officer, Daniel Harkins, they
wartime opposition to Roosevelt’s intentions to
claim that some of the funds were cycled through
de-industrialize Germany, see e.g. Stuart
the post-war “World Commerce Corporation,
Eizenstat, co-
with Allen Dulles, naturally, as their lawyer”
(110). Cf. Mark Aarons and John Loftus, Unholy
ordinator, “U.S. and Allied Efforts To Recover
Trinity: The Vatican, The Nazis, and The Swiss
and Restore Gold and Other Assets Stolen or
Banks (New York: St. Martin's/ Griffin, 1998),
Hidden by Germany During World War,”
278-79. I discuss their claims in American War
(http://apjjf.org/admin/site_manage/details/fc
Machine, 54-56.
it.usf.edu/holocaust/resource/gold/gold.pdf)
37:
24
Baker, Bank for International Settlements
, 203.
“Dulles looked forward to a postwar settlement
25
Lebor, Tower of Basel,140.
26
For the case against White, see e.g. John Earl
that envisioned the United States working closely
with European business and banking circles to
Haynes and Harvey Klehr, Venona: Decoding
reshape Western and Central Europe according
Soviet Espionage in America
(New Haven: Yale
to American interests.” See also Stuart Eizenstat,
19
12 | 16 | 3
APJ | JF
University Press, 1999), 125-26, 139. For rebuttal,
reasons why an American retains the position as
see e.g. James M. Boughton, “The Case against
president of this Bank” (John Spritzler The people
Harry Dexter White: Still Not Proven,”
as enemy: the leaders' hidden agenda in World War
(http://www.imf.org/external/pubs/ft/wp/20
Two [Montreal: Black Rose Books, 2003], 97; cf.
00/wp00149.pdf)
Lebor, Tower of Basel
, 97).
IMF
Working
Paper
WP/00/149, 2000, 1:”Evaluation of that
32
[VENONA and other new] evidence in the
limited evidence, Russell Baker also suspects that
context of White’s career and worldview casts
Prescott Bush, another prominent member of the
doubt on the case against him and provides the
BIS German-American financial complex, may
basis for a more benign explanation.”
27
Summers, The Arrogance of Power
, 46-47. With
have flown to California and participated in the
Nixon campaign (Family of secrets: the Bush
Whittaker Chambers, Witness (New York:
Random House, 1952], 431; discussion in David
dynasty, the powerful forces that put it in the White
Chambers (Whittaker Chambers’ grandson),
House, and what their influence means for America
“The
New York: Bloomsbury Press, 2009], 162-164).
Baffling
Harry
White,”
(http://hnn.us/article/146358.a) History News
33
Network, May 21, 2012.
28
Loftus and Aarons, The Secret War Against the
Jews, 156. Dillon Read had handled 29 percent of
John Loftus and Mark Aarons, The Secret War the Wall Street financing of German reparations
Against the Jews
, 222; citing “Confidential
(Antony C. Sutton, Wall Street and the rise of Hitler
interviews, former agents, U.S. CIC; former
[Seal Beach, CA: '76 Press, 1976], 29).
officers, U.S. MIS; former officers and agents,
34
SSU, CIG, and OPC” (557n17).
29
Conrad Black, Richard M. Nixon: A Life in Full
(New York: PublicAffairs, 2007), 113.
Anthony Summers with Robbyn Swan, The
Lewis Hartshorn, Alger Hiss, Whittaker Chambers
Arrogance of Power: The Secret World of Richard
and the Case That Ignited McCarthyism
, 42. Today
Nixon (New York: Viking, 2000), 63.
almost no one believes this. The accepted charges
30
35
Loftus and Aarons, The Secret War Against the against White are that he shared information, and
possibly passed documents, that reached the
Jews, 221.
31
On March 26, 1943, Congressman Jerry Voorhis
Soviet Union.
The sensational charges against Hiss, such as
introduced a resolution in the House of
36
Representatives calling for an investigation of the
that he was the architect of betrayal at Yalta,
Bank for International Settlements, including "the
would come later.
20
12 | 16 | 3
APJ | JF
37
G. Edward White, Alger Hiss's Looking-glass ml), makes it clear that by then the FBI was
Wars: The Covert Life of a Soviet Spy
already investigating the possibility that Hiss
was ALES, who had reportedly flown to Moscow
(Oxford: Oxford University Press, 2004), 62.
38
after the Yalta conference (“The Alger Hiss Story:
Glen Yeadon and John Hawkins, The Nazi V e n o n a
the
Russian
Files”
(https://files.nyu.edu/th15/public/venona.html
Hydra in America(Joshua Tree, CA: Progressive
)).
Press, 2008), 195; cf. 193-94, 273-74, 368-70, etc.
39
and
Willard Edwards, "Hiss spy paper linked to late
treasury aid," Chicago Daily Tribune,November
29, 1949, 1-2. The doctor who signed White’s
42
Summers, Arrogance of Power
, 78.
43
Benjamin Weiser, “Nixon Lobbied Grand Jury
to Indict Hiss in Espionage Case, Transcripts
death certificate (and who was not present when
Reveal,”
White died) later denied that digitalis was a
(http://www.nytimes.com/1999/10/12/us/nix
factor. More recently the right-wing author John
on-lobbied-grand-jury-to-indict-hiss-in-
Koster has charged (with no evidence other than
espionage-case-transcripts-reveal.html) New York
a contemporary movie which White might have
Times, October 12, 1999: “Judge Peter K. Leisure
seen) that White overdosed on digitalis in order
to commit suicide (John P. Koster, Operation
of Federal District Court in Manhattan, who
ordered the release after reviewing detailed
Snow: how a Soviet mole in FDR's White House
summaries of the transcripts, had ruled that an
triggered Pearl HarborWashington: Regnery
exception to traditional grand jury secrecy
Publishing, 2012], 204-05).
should be made for the archive.
40
Summers, The Arrogance of Power
, 63; citing
41
Summers, The Arrogance of Power
, 78. An anti-
“‘The court finds the public has a significant
Peter Grose, Gentleman spy: the life of Allen Dulles
interest in disclosure of Nixon's testimony,’ Judge
(Boston: Houghton Mifflin, 1994), 297n (run-in).
Leisure wrote. ‘Grand jury testimony by a
Congressional official allegedly attempting to
influence a grand jury's charging decisions is of
Hiss author has implied the opposite, suggesting
from an annotation in the file that the
inherent and substantial historical importance.’''
identification of ALES as Hiss was made much
44
later, in 1969 (White, Alger Hiss's looking-glass
wars, 225). But a partially declassified FBI memo
from
1950,
viewable
on
line
Herbert Romerstein and Eric Breindel, The
Venona Secrets: Exposing Soviet Espionage and
America's Traitors(Washington: Regnery, 2000),
here
233-34.
(https://files.nyu.edu/th15/public/venona9.ht
21
12 | 16 | 3
APJ | JF
45
Conrad Black, Richard M. Nixon: A Life in Full
(New York: PublicAffairs, 2007), 122.
46
50
This impression is corroborated by the odd fact
that the records of the long-defunct HUAC
committee “were sealed, in 1976 [under Ford], for
"President Nixon Remembers the Alger Hiss
an additional fifty years” (Summers, Arrogance of
Case: Selected References from the Nixon Tapes,"
Power, 77).
(http://law2.umkc.edu/faculty/projects/ftrials/
hiss/hissnixontapes.html) Stanley I. Kutler (ed.),
51
Abuse of Power: The New Nixon Tapes
(New York:
make Nixon president” (Tim Weiner, Enemies: a
Free Press, 1997), 7.
history of the FBI[New York: Random House,
47
At the time Andrews “vowed that he could
2012], 476n).
In addition, the materials produced by
Chambers “included a long letter in Harry
52
White’s own handwriting” (Haynes and Klehr,
Department notified the FBI that an indictment of
Venona: decoding Soviet espionage in America
, 139).
Chambers [for perjury] was contemplated (Athan
48
Theoharis, Chasing spies: how the FBI failed in
Black, Richard M. Nixon, 131. My on-line
counterintelligence but promoted the politics of
investigations have failed to find a more detailed
McCarthyism in the Cold War years
[Chicago : Ivan
description of these cables. Black’s account
R. Dee, 2002], 115; citing Allen Weinstein, Perjury:
should however be enough to establish that, if
New York : Random House, 1997], 271). Not
the Hiss-Chambers case
the microfilms did in fact come from Hiss, then
surprising, since by this time Chambers was a self-admitted perjurer!
Hiss was not, as many believe, the “ALES” of
53
VENONA cable traffic, whose work was
Stephen E. Ambrose, Nixon: The Education of a
Politician 1913-1962, 128 (emphasis in original);
described as “obtaining military information
Robert O. Blanchard, ed., Congress and the news
only” (see facsimile reproduced in Summers,
media(New York, Hastings House, 1974), 305.
Arrogance of Power
, 493).
49
We now know that on December 3 the Justice
54
Gentry, J. Edgar Hoover
, 362n; quoting from
Richard Nixon, The Memoirs of Richard Nixon
(New York: Grosset and Dunlap, 1978), 69. The
Gary Allen, Nixon: The Man Behind the Mask
(http://archive.org/stream/NixonTheManBehindTheM
ask/AllenGary-1971NixontheManBehindTheMask_djvu.txt)
(Boston, Western
five rolls are now deposited in the National
Islands, 1971].
Archives (Record Group 60.3.5), Black was in
error when he claimed that the withheld rolls
55
contained “Navy Department secret files” (Black,
(http://www.conservapedia.com/Alger_Hiss)
Richard M. Nixon, 130); the Navy files were
emphasis added. The brevity of the storage in the
publicly available.
22
“Alger
Hiss,”
12 | 16 | 3
APJ | JF
pumpkin (not known at the time) is also
accompanied by Bert Andrews (Donald A.
conceded by John Earl Haynes and Harvey
Ritchie, Reporting from Washington: The History of
Klehr: “The film had actually been in the
New York: Oxford University Press,
the Washington Press Corps
pumpkin only since that morning…. Chambers
2005], 75). Ritchie and the rest are probably relying on the badly edited posthumous
memoir of Andrews, ed. Peter Andrews, A tragedy of history; a journalist's confidential role in
explained later that he had briefly hidden the
the Hiss-Chambers case
(Washington: Robert. B. Luce, 1962]. Cf. U.S. State Department,
History of the Bureau of Diplomatic Security of the United States
, 56: “On December 2, 1948,
film in the pumpkin because he had feared that
Andrews joined Nixon on a trip to Chambers’ farm near Westminster, Maryland.” But on
agents from Hiss’s defense team would steal it”
December 2, Nixon was already beginning his preplanned sea voyage.
(John Earl Haynes and Harvey Klehr, Early Cold
David Halberstam, The Powers That Be(New
War spies: the espionage trials that shaped American
York: Knopf, 1979), 260.
politics[Cambridge: Cambridge University Press,
2006], 108).
56
59
60
Drew Pearson, Toledo Blade
, August 4, 1968.
Pearson added, “Thanks in part to Bert Andrews
Summers, The Arrogance of Power
, 69. The day
of the New York Herald Tribune, Mr. Nixon’s
before leaving, Nixon reportedly told the House
mentor, the headlines helped catapult Mr. Nixon
doorkeeper, William Miller, “’I’m going to get on
into the Senate.”
a steamship, and you will be reading about it/ I
am going out to sea, and they are going to send
61
for me. You will understand when I get back.’…
"lessons of history" and the making of U.S. Cold War
Coast Guard logs also reportedly suggest that
containment policy(Lanham, MD: Lexington
arrangements for Nixon’s return had been made
Books, 2008), 95.
even before his ship left harbor in New York,
One who still blames the Yalta handover on Hiss
which would confirm suspicion that the trip was
(and on Harry Hopkins, another alleged Soviet
a charade to ensure maximum publicity.” (loc.
cit., 70; citing William Miller, Fishbait: The
Englewood Cliffs,
Memoirs of the Congressional Doorkeeper
Sam Tanenhaus, Whittaker Chambers: A
Chose Treason(New York: Simon & Schuster,
62
The J. Henry Schröder & Co. Bank and J. Henry
Schroder Banking Corporation (Schrobanco, the
Biography(New York: Random House, 1997), 305.
58
agent) is Christina Shelton, in Alger Hiss: Why He
Threshold Editions, 2012), 121-22.
NJ: Prentice Hall, 1977], 41-).
57
Sheldon Anderson, Condemned to repeat it:
Donald A. Ritchie, Reporting from Washington:
The History of the Washington Press Corps
(New
firm of which Allen Dulles had been an officer)
had a financial stake in all three of Allen Dulles’
major CIA covert operations. Schröder had
York: Oxford University Press, 2005), 75. Ritchie,
financed the creation of Anglo-Persian (later
like many other authors, writes that Nixon (and
Anglo-Iranian) oil: thus Frank Cyril Tiarks was a
Stripling) went out to the pumpkin field
23
12 | 16 | 3
APJ | JF
partner both in J. Henry Schröder & Co., and also
sugar; and M.E. Rionda, president of Cuba Cane
in
Corporation, was a member of Schrobanco’s
the
Anglo-Iranian
Oil
Company
(http://en.wikipedia.org/wiki/Anglo-Iranian_O
board.
il_Company) (1917-1948). (He was also a member
63
of the Ribbentrop-inspired Anglo-German
The surrender at Yalta of Eastern Europe to
Soviet domination is still blamed on Hiss (and on
Fellowship
Harry Hopkins, another alleged Soviet agent) by
(http://en.wikipedia.org/wiki/Anglo-German_
retired DIA intelligence analyst Christina
Fellowship) and of the British Union of Fascists
Shelton, in Alger Hiss: Why He Chose Treason
(http://en.wikipedia.org/wiki/British_Union_of
(New York: Simon & Schuster, Threshold
_Fascists).) Schrobanco had a stake in the
Editions, 2012), 121-22. Cf. Ann Coulter, Treason:
International Railways of Central America, a firm
liberal treachery from the cold war to the war on
developed in conjunction with what became
terrorism(New York: Crown Forum, 2003).
United Fruit in order to ship out United Fruit’s
bananas in Guatemala. Both Schröders and
64
Schrobanco were heavily invested in Cuban
Richard Brinkman, Corporate Pharaohs: A Vicious
Circle of Globalization
(Xlibris Corp, 2013.), 234.
24