The Vatican, Croatia and the Nazi Gold
The recent apology by Pope John Paul II holds little weight with the heirs
and few elderly survivors of one of the bloodiest chapters in the Roman
Catholic Church, the 1941-1945 atrocities by the Croatian Nazis known as the
Ustashe. In April 1941, multi-ethnic Yugoslavia fell to the Nazis who wasted
no time in installing the fanatical Ante Pavlics Catholic Ustashe in power in
Croatia. With the blessing of the Roman Catholic Church and the active
participation of clergy, especially Franciscan monks, the Ustashe killed
750,000 Serbs, Jews, and Roma in an orgy of violence that shocked even some
of the Germans and revolted their Italian allies.

Holocuast survivors in the USA are now suing to recover hundreds of millions
of dollars of property looted by the Croatian Nazis, converted to gold, and
held by the Vatican Bank for safekeeping. Rumours had circulated about the
fantastic wealth that allowed Croatian war criminals to escape justice and
live lives of luxury in South America, Spain, and even California until a
June 1998 US State Department report confirmed the story.

In March 2000, Serb and Jewish survivors filed a class action lawsuit in San
Francisco Federal Court, California, USA, seeking an accounting from the
Vatican Bank and Franciscan Order. While the Vatican Bank has repeatedly
denied their involvement, service of the lawsuit on the Franciscan Order took
place in Oakland, California on Tuesday, March 15, 2000, appropriately upon a
Croatian Franciscan priest, and on the Vatican Bank in Rome on Friday, March
17.

According to Easton & Levy, California lawyers representing victims and their
organizations, "the defendants responses will put the Popes apology to the
test; will the Vatican continue to hide their past crimes under their
cassocks, or face the truth of their past actions in the spirit of John Paul
II?" . For information on how to contact Easton & Levy see the end of this
article.

In December 1997, delegates from 40 countries gathered at an international
conference to consider the origins and the fate of Nazi gold looted from the
victims of the Holocaust. One amazing thing happened at the conference - the
Croatian delegation managed to make an address without mentioning Ante
Pavelic, the head of the wartime quisling regime in Croatia which butchered
thousands of Jews, Serbs, and Roma (Gypsies) at the Jasenovac concentration
camp - the third biggest such extermination camp in the war. If anything was
"holocaust denial" noted the Observer, this was it. Another two observers sat
in a guilty silence - Monsignor Giovanni D'Aniello and Father Marcel Chappin,
who sat "in perfect silence" for three days. Donald Kenrick, who spoke on
behalf of the International Romani Union (on behalf of Roma murdered by the
Nazis) accused the Vatican of being a conduit for Nazi gold. The Vatican
assisted fascism in many ways - it supported the genocidal regime in wartime
Croatia, and it is alleged to have helped the war criminal escape justice.

After the war, the Papal State continued to show it's sympathies towards one
of Europe's most bloodthirsty rulers: When Pavelic died in Spain in 1959, he
received a special blessing from Pope John XXIII on his deathbed. This for a
man whose murderous regime had it's own way of dealing with the so-called
"final solution": To "kill a third" of the Jews, Serbs and Roma people of
Yugoslavia, "deport a third" to the concentration camps, and "convert a
third" to Roman Catholicism. (The Guardian, 18th October 1993). It also
helped organise escape routes for other Nazi war criminals out of Europe to
Latin America, and crucially for the post-war underground Nazi movement, it
provided a means of funneling the stolen Nazi gold bullion into safe banks
beyond the reach of the Allies. The Church participated in crimes against
humanity and aided and abetted those who carried it out. It is one of the
most shameful chapters in the history of the Catholic Church.

Fifty years on we can see that other countries along with Switzerland - that
ostensibly were neutral - were in effect, like Sweden, Portugal and Spain,
collaborators with the Axis powers, either supplying them with hard currency
and military hardware. But top of the list is Switzerland, which gave
Hitler's regime crucial financial support to help it's war effort. In late
1999, a report by an independent inquiry, led by the Swiss historian
Jean-François Bergier, into Switzerland's wartime history concluded that
Swiss officials:

"Helped the Nazi regime achieve its goals" (The Guardian, December 11th, 1999)
It was found that some 300,000 people - many of them Jews - had fled to
Switzerland during the war. The inquiry found that at least 24,500 were
rejected - that is sent back into the hands of the Nazi's - by the Swiss
authorities to certain death in the concentration camps. Most historians
believe figure is much higher. This was the inquiry's second report, the
first, in 1998, covered Nazi gold transfers to Switzerland, during which is
was involved in what has been described as the "greatest economic crime of
the century" - the looting by the Nazi's of Europe's gold, including victims
of the holocaust in Yugoslavia, and how the Swiss profited from it from
banking it, and how they kept it safe for the nazi movement after the war by
moving it to either Spain or Portugal and then on to countries such as
Argentina. As The Observer noted on 7th December 1997:

"Some of the bullion went via the Vatican and the Iberian dictatorships to
Latin America, the destination of choice for Nazis on the run"
A study commissioned by the Swiss government estimated that Swiss banks
received about £2 billion in looted gold stolen from the mainly Jewish, Roma
and Slavic victims of the Nazi holocaust (The Guardian December 5th 1997).
The Papal State has come under heavy pressure to open it's archives. The
World Jewish Congress (WJC) released a declassified letter from the US
treasury which showed that in 1946, the Americans were told that:

"Money and gold stolen from the Jews and Serbs (in Yugoslavia) were sent to
the Vatican" (The Guardian, December 5th 1997).
The funds, stolen by the fascist Ustashe regime in Croatia, was sent through
a Vatican "pipeline" to Spain and Argentina. However, US treasury suspected
that the funds were still possibly held by the Vatican (The Guardian,
December 5th 1997). The Vatican secretly worked with the fascism, notably
supporting the puppet Nazi regime in Croatia, and crucially, it helped
leading war criminals escape justice at the end of the war. Furthermore,
evidence has at last confirmed the involvement of the Vatican in hiding gold
looted by the Ustashe regime in Croatia. Although the Vatican denies these
claims, a recently revealed US intelligence report from 1946 showed that that
Britain had impounded and kept gold coins worth 150m Swiss francs. This money
had been looted from holocaust victims in Yugoslavia, who been murdered by
the Ustashe regime. The post-war Labour Government in Britain also seized
frozen bank accounts belonging to Holocaust victims. The government told
banks to hand over the money instead of returning it to individuals. Some of
this money was used to compensate British companies for their wartime losses
or to newly liberated countries not indebted to Britain. Some money was also
confiscated in lieu of payments for governments in debt to Britain.(The
Guardian, 4th December 1997).

The WJC also produced other declassified US documents which it said, proved
the Allies knew 55 tons of Nazi gold - worth about £400 million today - was
mixed with gold taken from the central banks of Belgium, the Netherlands and
Austria. Instead of separating the two classes of gold, the Tripartite Gold
Commission (TGC) - administered by the US, France and Britain - decided to
give it all to the central banks of Europe. The TGC itself, still holds 5.5
tons of suspected Nazi gold, which strangely for the last 50 years has not
been distributed to holocaust victims (The Guardian, 4th December 1997).

Altogether, the British government ended up with 350m francs' worth of gold
seized from the Croat's after the war. The rest, the report says, was given
to the Vatican for "safe-keeping". It's alleged, that later the British
government impounded it's share, leaving the Vatican 200m Swiss francs. In
turn, the Vatican set up a "smokescreen", pretending to forward the gold to
Franco's fascist regime in Spain, and then onto Argentina. Under the dictator
Juan Peron and his wife Evita, Argentina became a safehaven for other escaped
Nazi war criminals such as Klaus Barbie, Adolph Eichmann, and Joseph Mengele.
(The Guardian, 23rd July 1997).

Similar allegations had already been made by Yallop about the Vatican. During
the war, an SS Oberleutnant called Licio Gelli was said to have derived his
wealth from his presence in the Italian town of Cattaro, where the seized
national treasures of Yugoslavia were hidden. A significant portion of these
were never returned to Yugoslavia "but were stolen by Gelli". Furthermore, as
the war ended, and with the help of the Vatican, he organised the aptly named
"Rat-lines" to get Nazi war criminals to South America - for a fee of 40%.
Helped by notorious pro-Nazi Catholic priest from Croatia, Father Krujoslav
Dragonovic, he helped Klaus Barbie, the "Butcher of Lyon" escape, with his
costs borne by the US Counter Intelligence Corps.

During the 1960's, Gelli formed the sinister P2 lodge of Freemasons in Italy.
In Argentina, he became a close confident of Peron, and by 1972, had become
Argentina's economic adviser to Italy, and later, it's honorary Counsel. He
is believed to have been a central figure in the acts of political violence
that destabilised Italy from the late sixties to the early eighties, as well
P2's involvement in the collapse of the Vatican Bank, according to Yallop (In
God's Name. David Yallop, Corgi Books, Britain, 1984. Pp 173&endash;75).

Details of the disappearance of Yugoslavia's gold was also raised in 1991 in
Rat Lines by Mark Aarons and John Loftus. They say 400 kilos of gold - which
was the property of Yugoslavia and worth millions of dollars, - and "a
considerable amount of foreign currency", was secretly taken to Wolfsburg in
Austria, under the control of a Ustashe minister, Lovro Susic. The Croats
were apparently warned that the British "would seize the gold" so they asked
Dragonovic to help: he was "only willing to oblige", and immediately smuggled
40 kilos of gold to Rome concealed in two packing cases. (Rat Lines, Mark
Aarons and John Loftus, Mandarin, London, England, 1991, Pp 122&endash;125).

The Vatican not only hoarded the gold the Croats looted, it also helped them
escape - with a nod and wink from the OSS and MI6. In 1986 for example, the
US government released documents that revealed the Vatican had organised
Pavelic's safe-flight from Europe to Argentina, along with 200 senior
officials of his regime. During their escape, they had hidden "frequently in
cloisters" in Catholic churches and in many instances, had "disguised
themselves as Franciscan monks", according to Vladimar Dedijer , writing in
The Yugoslav Auschwitz (Ahriman-Verlag, Freiburg, Germany, 1988, p53).

According to most accepted accounts, some 750,000 Serbs, 60,000 Jews and
26,000 Roma (Gypsy) people were slaughtered by Ante Pavelic's openly
pro-Vatican regime in Croatia (The Yugoslav Auschwitz and the Vatican, p30).
Dedijer writes that "the highest dignitaries in the Roman Catholic Church
gave their blessing to Ante Pavelic at a time when the so-called state of
Croatia was proclaimed - at a time when the Yugoslav state and it's army
still existed". Clerics working for the Ustashe regime took part in shocking
war crimes in Yugoslavia, notably participating in the genocide at Jasenovac
concentration camp, where 200,000 people were systematically murdered. For
example, at one point, a Franciscan monk was camp commandant of what the
second largest concentration camp of the war.

At the Nazi gold conference, Donal Kenrick of the International Romani Union
said that £1 million of gold coins and personal belongings that had been
stolen from 28,000 Roma people killed by the Ustashe regime, ended up in the
Vatican (The Guardian, 4th December 1997). Thus, from this conference alone,
we know that the Vatican helped steal money from victims of the holocaust.
Perhaps it is because of this, that it made no representations at the
conference - it's archives anyway are presently closed until 2045.

The Vatican was further implicated in August 1997 when newly discovered
documents in the US national archives show that the Vatican engaged itself in
potentially illegal transactions with Nazi Germany and it's axis partners
during the war. The archives show that the Vatican Bank (known as the
Institute for Religious Works) used Swiss banking middlemen on at at least 3
occasions to obtain money from the Reichsbank or to transfer funds to a bank
blacklisted by the allies for it's dealings with Nazi Germany. (The Guardian,
4th August 1997).

The Vatican and Francisan order are sued in the USA
In January 2000, it was announced that Thomas Easton and Jonathan Levy,
lawyers in San Francisco, USA had filed a lawsuit against the Vatican and the
Fransican Order for complicity in war crimes in Yugoslavia during the Second
World War. The press release from the firm states:

"More than 700,000, Serbs, Jews, Roma and former Soviet Union citizens were
murdered by the Nazi puppet regime of Croatia during World War II. The
Croatian Nazis, known as the Ustasha, burned villages and churches, operated
slave labor and concentration camps, and committed atrocities that shocked
even hardened German observers. In a scenario shockingly similar to today's
Yugoslavia, genocide wascommitted to cleanse Greater Croatia of non-Roman
Catholics. Hundreds of millions of dollars of gold, property, and money was
looted by the Ustasha from their victims"
In November 1999, California attorneys Jon Levy and Tom Easton filed the
original Complaint in San Francisco. On January 20, 2000 Easton and Levy
filed an amended class action law suit. The suit names the Vatican Bank,
Franciscan Order and other unidentified Swiss, Austrian, Argentine, Spanish,
Italian, Portuguese, German, and American banking institutions as defendants.
The suit seeks an accounting of the gold and money and ultimately,
restitution for the victims and their families.

The Ustasha Treasury with the connivance of the Vatican and other banks was
laundered in 1944-45 and used to assist the top Croatian war criminals evade
justice. Ante Pavelic, known as the "Butcher of the Balkans" and leader of
Nazi Croatia was given refuge by the Vatican and later escaped to Argentina.
The whereabouts of the Croatian "blood" money was a dark mystery, however in
1998 the US State Department demanded the Vatican account for the loot.
Despite numerous requests from governments and Holocaust victims, the Vatican
Bank and Holy See have refused to open their wartime archives.

The original plaintiffs, four Ukrainian and Jewish concentration camp
survivors and two organizations representing over 300,000 Holocaust survivors
are now joined by plaintiff Vladimir Brodich of Arizona, who was 9 years old
in 1941 when they took away and shot his father and brother and gang raped
his sister, by plaintiff William Dorich of California, who lost 17 relatives
when the Ustasha burnt alive 45 Serbian victims in the Orthodox Serbian
Church in Vojinic, and plaintiff Igor Najfeld of Vermont, who was born June
28, 1944, the day his two physician parents escaped from slave labor in
Bosnia to join the Tito partisans, and whose mother had 56 relatives killed
by the Ustasha, some in the infamous Jasenovac extermination camp.

The Jasenovac Research Institute of Birmingham, Mississippi has also joined
with the effort to force the Vatican to open its archives and reveal the
truth of the "hidden holocaust" of World War Two. Restitution could reach
hundreds of millions of dollars which would be distributed to the tens of
thousands victims of the Ustasha Regime and their descendants.

On 19 January 2000 the Jasenovac Research Institute joined seven Serbian,
Jewish and Ukrainian Holocaust victims in a class action lawsuit against the
Vatican Bank, the Franciscan Order and several unnamed Austrian, Swiss,
Argentine and other banking institutions. The lawsuit, filed in the U.S.
District Court in San Francisco, seeks restitution of several hundred
millions of dollars in looted property and assets taken in World War II
Croatia by the clerical-fascist Croatian Nazi regime which the suit charges
was subsequently deposited in the Vatican Bank and other institutions. The
original lawsuit was filed by U.S. attorneys Tom Easton and Jonathan Levy on
15 November 1999 in the San Francisco U.S. District Court on behalf of four
Jewish and Ukrainian Holocaust victims. On 21 January 2000 the class action
lawsuit was amended and re-filed to include the Jasenovac Research Institute,
a non-profit organization committed to the study of the Holocaust in
Yugoslavia, and three additional individuals as class-representative
plaintiffs:

Vladimir Brodich, a Serbian-American currently living in Arizona, whose
family was dispossessed and murdered in wartime Croatia;
William Dorich, a Serbian-American living in California who lost seventeen
members of his family in the town of Vojinich;
Igor Najfeld, a Yugoslav Jew currently living in Vermont but born in wartime
Croatia. Dr. Najfeld's family's business and property was stolen by the
Croatian State authorities and fifty-six members of the Najfeld's family were
slaughtered in the Croatian death-camp complex known as Jasenovac.
Following the Nazi invasion and dismemberment of Yugoslavia in April 1941,
the Independent State of Croatia was established as a clerical-fascist state
under the rule of the Croatian fascist party, the Ustashe. Some 700,000
Serbs, Jews, Romas and other anti-fascists were killed in the Jasenovac
death-camp complex, while many more were killed in smaller camps or in local
massacres. While the Ustashe regime set about to racially exterminate all
Serbs, Jews and Romas living within its borders, it also carried out a
systematic policy of plundering the assets of these three nationalities.
These looted assets, the property of millions of people, were never
recovered. The bulk of it was smuggled out of Croatia at the end of the war
to the Vatican, and from there to still other destinations.

There is no statute of limitations for claims against these crimes. There are
two reasons for this: the 1968 international convention regarding the
non-applicability of statutes of limitation for war crimes, and the
concealment of vital information regarding the culpability of the accused
parties in these crimes. Another law firm, Zimmerman and Reed, has filed a
similar lawsuit seeking restitution for Holocaust victims from Yugoslavia on
27 January 2000 in Minneapolis. It is expected that still other law firms
will join these two suits or file additional suits in the coming months. The
JRI will offer its support to all such efforts and encourage others to do the
same.

The lawsuit which the JRI has joined is based on evidence contained in
recently declassified government documents from the United States, Britain
and Argentina. Several of the declassified U.S. military intelligence reports
obtained by the JRI clearly state that the majority of these looted assets
was deposited in the Vatican "for safe-keeping." The June 1998 U.S. State
Department "Supplement" to its 1997 Report on "Nazi Gold" contains a crucial
chapter documenting the Vatican's role in the transfer of stolen assets
entitled "The Fate of the Wartime Ustasha Treasury." Still newer reports are
to be released in the coming months, including one from Argentina expected to
detail the transfer of millions of dollars in gold from the Vatican to
Argentina as payment for the emigration of Croatian Ustashe and other Nazi
war criminals.

According to the most recent estimates, the total amount of stolen assets
transferred out of Croatia by the Ustashe at the end of the war was at least
$250 million. Based on conversion tables provided by the U.S. Bureau of Labor
Statistics, this would now be worth $2.325 billion in December 1999 dollars.
It is the position of the Jasenovac Research Institute that this entire
amount plus interest must be paid to the remaining Survivors and their heirs,
and to the heirs of all victims of the Ustashe genocide. This amount would
only be a partial accounting for the crimes of genocide committed in wartime
Yugoslavia by the Ustashe and other fascist forces; however it would provide
the initial foundations for better relations in the future for the peoples of
the region.

Several new plaintiffs have stepped forward since the re-filing to ask to be
added to the suit. Among them is Eva Deutsch-Costabel, a Yugoslav Jew born in
Zagreb and currently living in New York whose family's two businesses and
home were stolen by the Ustashe regime and whose father was arrested and
murdered.

U.S. attorneys Easton and Levy are seeking additional plaintiffs for the
case. To be added as a plaintiff to the lawsuit one needs to be either a
Survivor of the Ustashe regime or a relative or heir of a victim of Ustashe
crimes. If you are such an individual and you wish to become a plaintiff, or
if you have vital information regarding this case, you are encouraged to
contact either the Jasenovac Research Institute or the law firm of Thomas
Easton at 707-464-4513 or [EMAIL PROTECTED] The Jasenovac Research
Institute urges everyone who is concerned with the search for justice for the
victims of the Ustashe Holocaust to help us in our efforts to achieve a
successful outcome of this historically important case.

The lawsuit was filed in U.S. District Court in San Francisco: No.C99-4941MMC
by the Law Office of Thomas Dewey Easton and Jonathan H. Levy. PO Box 6080,
Cincinnati OH 45206, USA ([EMAIL PROTECTED]).

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