-Caveat Lector-

Declassified Files Confirm US Collaboration with Nazis

by Martin A. Lee

May 7, 2001
San Francisco Bay Guardian

"Honest and idealist ... enjoys good food and wine ...
unprejudiced mind ..."

That's how a 1952 Central Intelligence Agency assessment
described Nazi ideologue Emil Augsburg, an officer at
the infamous Wannsee Institute, the SS think tank
involved in planning the Final Solution. Augsburg's SS
unit performed "special duties," a euphemism for
exterminating Jews and other "undesirables" during the
Second World War.

Although he was wanted in Poland for war crimes,
Augsburg managed to ingratiate himself with the U.S.
CIA, which employed him in the late 1940s as an expert
on Soviet affairs. Recently released CIA records
indicate that Augsburg was among a rogue's gallery of
Nazi war criminals recruited by U.S. intelligence
shortly after Germany surrendered to the Allies.

Pried loose by Congress, which passed the Nazi War
Crimes Disclosure Act three years ago, a long-hidden
trove of once-classified CIA documents confirms one of
the worst-kept secrets of the Cold War - the CIA's use
of an extensive Nazi spy network to wage a clandestine
campaign against the Soviet Union.

The CIA reports show that U.S. officials knew they were
subsidizing numerous Third Reich veterans who had
committed horrible crimes against humanity, but these
atrocities were overlooked as the anti-Communist crusade
acquired its own momentum. For Nazis who would otherwise
have been charged with war crimes, signing on with
American intelligence enabled them to avoid a prison
term.

"The real winners of the Cold War were Nazi war
criminals, many of whom were able to escape justice
because the East and West became so rapidly focused
after the war on challenging each other," says Eli
Rosenbaum, director of the Justice Department's Office
of Special Investigations and America's chief Nazi
hunter. Rosenbaum serves on a Clinton-appointed
Interagency Working Group committee of U.S. scholars,
public officials, and former intelligence officers who
helped prepare the CIA records for declassification.

Many Nazi criminals "received light punishment, no
punishment at all, or received compensation because
Western spy agencies considered them useful assets in
the Cold War," the IWG team stated after releasing
18,000 pages of redacted CIA material. (More
installments are pending.)

These are "not just dry historical documents," insists
former congresswoman Elizabeth Holtzman, a member of the
panel that examined the CIA files. As far as Holtzman is
concerned, the CIA papers raise critical questions about
American foreign policy and the origins of the Cold War.

The decision to recruit Nazi operatives had a negative
impact on U.S.-Soviet relations and set the stage for
Washington's tolerance of human rights' abuses and other
criminal acts in the name of anti-Communism. With that
fateful sub-rosa embrace, the die was cast for a litany
of antidemocratic CIA interventions around the world.

The Gehlen Org

The key figure on the German side of the CIA-Nazi tryst
was General Reinhard Gehlen, who had served as Adolf
Hitler's top anti-Soviet spy. During World War II,
Gehlen oversaw all German military-intelligence
operations in Eastern Europe and the USSR.

As the war drew to a close, Gehlen surmised that the
U.S.-Soviet alliance would soon break down. Realizing
that the United States did not have a viable cloak-and-
dagger apparatus in Eastern Europe, Gehlen surrendered
to the Americans and pitched himself as someone who
could make a vital contribution to the forthcoming
struggle against the Communists. In addition to sharing
his vast espionage archive on the USSR, Gehlen promised
that he could resurrect an underground network of
battle-hardened anti-Communist assets who were well
placed to wreak havoc throughout the Soviet Union and
Eastern Europe.

Although the Yalta Treaty stipulated that the United
States must give the Soviets all captured German
officers who had been involved in "eastern area
activities," Gehlen was quickly spirited off to Fort
Hunt, Va. The image he projected during 10 months of
negotiations at Fort Hunt was, to use a bit of espionage
parlance, a "legend" - one that hinged on Gehlen's false
claim that he was never really a Nazi, but was
dedicated, above all, to fighting Communism. Those who
bit the bait included future CIA director Allen Dulles,
who became Gehlen's biggest supporter among American
policy wonks.

Gehlen returned to West Germany in the summer of 1946
with a mandate to rebuild his espionage organization and
resume spying on the East at the behest of American
intelligence. The date is significant as it preceded the
onset of the Cold War, which, according to standard U.S.
historical accounts, did not begin until a year later.
The early courtship of Gehlen by American intelligence
suggests that Washington was in a Cold War mode sooner
than most people realize. The Gehlen gambit also belies
the prevalent Western notion that aggressive Soviet
policies were primarily to blame for triggering the Cold
War.

Based near Munich, Gehlen proceeded to enlist thousands
of Gestapo, Wehrmacht, and SS veterans. Even the vilest
of the vile - the senior bureaucrats who ran the central
administrative apparatus of the Holocaust - were welcome
in the "Gehlen Org," as it was called, including Alois
Brunner, Adolf Eichmann's chief deputy. SS major Emil
Augsburg and gestapo captain Klaus Barbie, otherwise
known as the "Butcher of Lyon," were among those who did
double duty for Gehlen and U.S. intelligence. "It seems
that in the Gehlen headquarters one SS man paved the way
for the next and Himmler's elite were having happy
reunion ceremonies," the Frankfurter Rundschau reported
in the early 1950s.

Bolted lock, stock, and barrel into the CIA, Gehlen's
Nazi-infested spy apparatus functioned as America's
secret eyes and ears in central Europe. The Org would go
on to play a major role within NATO, supplying two-
thirds of raw intelligence on the Warsaw Pact countries.
Under CIA auspices, and later as head of the West German
secret service until he retired in 1968, Gehlen exerted
considerable influence on U.S. policy toward the Soviet
bloc. When U.S. spy chiefs desired an off-the-shelf
style of nation tampering, they turned to the readily
available Org, which served as a subcontracting
syndicate for a series of ill-fated guerrilla air drops
behind the Iron Curtain and other harebrained CIA
rollback schemes.

Sitting ducks for disinformation

It's long been known that top German scientists were
eagerly scooped up by several countries, including the
United States, which rushed to claim these high-profile
experts as spoils of World War II. Yet all the while the
CIA was mum about recruiting Nazi spies. The U.S.
government never officially acknowledged its role in
launching the Gehlen organization until more than half a
century after the fact.

Handling Nazi spies, however, was not the same as
employing rocket technicians. One could always tell
whether Werner von Braun and his bunch were
accomplishing their assignments for NASA and other U.S.
agencies. If the rockets didn't fire properly, then the
scientists would be judged accordingly. But how does one
determine if a Nazi spy with a dubious past is doing a
reliable job?

Third Reich veterans often proved adept at peddling data
- much of it false - in return for cash and safety, the
IWG panel concluded. Many Nazis played a double game,
feeding scuttlebutt to both sides of the East-West
conflict and preying upon the mutual suspicions that
emerged from the rubble of Hitler's Germany.

General Gehlen frequently exaggerated the Soviet threat
in order to exacerbate tensions between the superpowers.
At one point he succeeded in convincing General Lucius
Clay, military governor of the U.S. zone of occupation
in Germany, that a major Soviet war mobilization had
begun in Eastern Europe. This prompted Clay to dash off
a frantic, top-secret telegram to Washington in March
1948, warning that war "may come with dramatic
suddenness."

Gehlen's disinformation strategy was based on a simple
premise: the colder the Cold War got, the more political
space for Hitler's heirs to maneuver. The Org could only
flourish under Cold War conditions; as an institution it
was therefore committed to perpetuating the Soviet-
American conflict.

"The agency loved Gehlen because he fed us what we
wanted to hear. We used his stuff constantly, and we fed
it to everyone else - the Pentagon, the White House, the
newspapers. They loved it, too. But it was hyped-up
Russian bogeyman junk, and it did a lot of damage to
this country," a retired CIA official told author
Christopher Simpson, who also serves on the IGW review
panel and was author of Blowback: America's Recruitment
of Nazis and Its Effects on the Cold War.

Unexpected consequences

Members of the Gehlen Org were instrumental in helping
thousands of fascist fugitives escape via "ratlines" to
safe havens abroad - often with a wink and a nod from
U.S. intelligence officers. Third Reich expatriates and
fascist collaborators subsequently emerged as "security
advisors" in several Middle Eastern and Latin American
countries, where ultra-right-wing death squads persist
as their enduring legacy. Klaus Barbie, for example,
assisted a succession of military regimes in Bolivia,
where he taught soldiers torture techniques and helped
protect the flourishing cocaine trade in the late 1970s
and early 80s.

CIA officials eventually learned that the Nazi old boy
network nesting inside the Gehlen Org had an unexpected
twist to it. By bankrolling Gehlen the CIA unknowingly
laid itself open to manipulation by a foreign
intelligence service that was riddled with Soviet spies.
Gehlen's habit of employing compromised ex-Nazis - and
the CIA's willingness to sanction this practice -
enabled the USSR to penetrate West Germany's secret
service by blackmailing numerous agents.

Ironically, some of the men employed by Gehlen would go
on to play leading roles in European neofascist
organizations that despise the United States. One of the
consequences of the CIA's ghoulish alliance with the Org
is evident today in a resurgent fascist movement in
Europe that can trace its ideological lineage back to
Hitler's Reich through Gehlen operatives who
collaborated with U.S. intelligence.

Slow to recognize that their Nazi hired guns would feign
an allegiance to the Western alliance as long as they
deemed it tactically advantageous, CIA officials
invested far too much in Gehlen's spooky Nazi outfit.
"It was a horrendous mistake, morally, politically ,and
also in very pragmatic intelligence terms," says
American University professor Richard Breitman, chairman
of the IWG review panel.

More than just a bungled spy caper, the Gehlen debacle
should serve as a cautionary tale at a time when post-
Cold War triumphalism and arrogant unilateralism are
rampant among U.S. officials. If nothing else, it
underscores the need for the United States to confront
some of its own demons now that unreconstructed Cold
Warriors are again riding top saddle in Washington.

Martin A. Lee ([EMAIL PROTECTED]) is the author of Acid
Dreams and The Beast Reawakens, a book on neofascism.
His column, Reality Bites, appears here on Mondays.

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