Shadow Government

( " R " )
D i a
Allen and Abraham make the case that the events of recent world history, from the Bolshevik Revolution forward, have been brought into being and controlled by a relatively small group of insiders, mostly international banking magnates and (later on) the Council on oreign Relations! "hile it#s certainly conspiracy theory, Allen and Abraham have done a fine $ob of backing up their assertions with a huge amount of primary and secondary source material ($ust looking up the titles in the bibliography took me the better part of two hours)! "hether you#re a fan of conspiracy theory or not, the facts presented, and the conclusions drawn, in this book, are
%hadow &overnment All Rights Reserved By 'ames ( )ance * +,-.
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thought/provoking 0+,!,, (book or ree 1(R(2
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Copyright * +,-.
All rights reserved. No part of this book may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, publisher. isclaimer All the material contained in this book is provided for educational and informational purposes only. No responsibility can be taken for any results or outcomes resulting from the use of this material. !hile every attempt has been made to provide information that is both accurate and effective, the author does not assume any responsibility for the accuracy or use"misuse of this information. #any parts of this publication was originally published in $%&$ via an 'moot special thanks for his research. electronic, mechanical, photocopying, recording, scanning, or otherwise, without the prior written permission of the
3reface
(n the $%&)*s an 'moot set out to prove that a small group of individuals and corporations controlled all of industry and the +' government as well. (n the $%&)*s his view of America was for the most part laughed at. ,ut today he has been vindicated, in fact the control of America and America*s industry is controlled by a fewer number of corporations then when he originally issued this report in $%&$. -he .our /orsemen of ,anking (,ank of America, 01 #organ 2hase, 2itigroup and !ells .argo) own the .our /orsemen of 3il (455on #obil, Royal tandem with utch"'hell, ,1 and 2hevron -e5aco)6 in eutsche ,ank, ,N1, ,arclays and other 4uropean
old money behemoths. ,ut their monopoly over the global economy does not end at the edge of the oil patch. According to company 10K filings to the SEC, the Four Horsemen of Banking are among the top ten stock holders of virtually every Fortune 500 corporation. So who then are the stockholders in these money center banks? This information is guarded much more closely. My queries to bank regulatory agencies regarding stock ownership in the top 25 US bank holding companies were given Freedom of Information Act status, before being denied on national security grounds. This is rather ironic, since many of the banks stockholders reside in Europe.
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One important repository for the wealth of the global oligarchy that owns these bank holding companies is US Trust Corporation founded in 1853 and now owned by Bank of America. A recent US Trust Corporate Director and Honorary Trustee was Walter Rothschild. Other directors included Daniel Davison of JP Morgan Chase, Richard Tucker of Exxon Mobil, Daniel Roberts of Citigroup and Marshall Schwartz of Morgan Stanley. J. W. McCallister, an oil industry insider with House of Saud connections, wrote in The Grim Reaper that information he acquired from Saudi bankers cited 80% ownership of the New York Federal Reserve Bank- by far the most powerful Fed branchby just eight families, four of which reside in the US. They are the Goldman Sachs, Rockefellers, Lehmans and Kuhn Loebs of New York; the Rothschilds of Paris and London; the Warburgs of Hamburg; the Lazards of Paris; and the Israel Moses Seifs of Rome. CPA Thomas D. Schauf corroborates McCallisters claims, adding that ten banks control all twelve Federal Reserve Bank branches. He names N.M. Rothschild of London, Rothschild Bank of Berlin, Warburg Bank of Hamburg, Warburg Bank of Amsterdam, Lehman Brothers of New York, Lazard Brothers of Paris, Kuhn Loeb Bank of New York, Israel Moses Seif Bank of Italy, Goldman Sachs of New York and JP Morgan Chase Bank of New York. Schauf lists William Rockefeller, Paul Warburg, Jacob Schiff and James Stillman as individuals who own large shares of the Fed. The Schiffs are insiders at Kuhn Loeb. The Stillmans are Citigroup insiders, who married into the Rockefeller clan at the turn of the century. Eustace Mullins came to the same conclusions in his book The Secrets of the Federal Reserve, in which he displays charts connecting the Fed and its member banks to the families of Rothschild, Warburg, Rockefeller and the others. The control that these banking families exert over the global
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economy cannot be overstated and is quite intentionally shrouded in secrecy. Their corporate media arm is quick to discredit any information exposing this private central banking cartel as conspiracy theory. Yet the facts remain. -he /ouse of #organ -he .ederal Reserve ,ank was born in $%$7, the same year +' banking scion 0. 1ierpont #organ died and the Rockefeller .oundation was formed. -he /ouse of #organ presided over American finance from the corner of !all 'treet and ,road, acting as 8uasi9+' central bank since $:7:, when ;eorge 1eabody founded it in <ondon. 1eabody was a business associate of the Rothschilds. (n $%=> .ed researcher 4ustace #ullins put forth the supposition that the #organs were nothing more than Rothschild agents. #ullins wrote that the Rothschilds, ?@preferred to operate anonymously in the +' behind the facade of 0.1. #organ A 2ompanyB. Author ;abriel Colko stated, ?#organDs activities in $:%=9$:%& in selling +' gold bonds in 4urope were based on an alliance with the /ouse of Rothschild.B -he #organ financial octopus wrapped its tentacles 8uickly around the globe. #organ ;renfell operated in <ondon. #organ et 2e ruled 1aris. -he RothschildDs <ambert cousins set up 2ompany in 1hiladelphia. re5el A
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-he /ouse of #organ catered to the Astors, launch of A-A-, ;eneral #otors, ;eneral 4lectric and became part of the power structure in many countries.
u1onts, u1ont.
;uggenheims, Eanderbilts and Rockefellers. (t financed the <ike the <ondon9based Rothschild and ,arings banks, #organ
,y $:%) the /ouse of #organ was lending to 4gyptDs central bank, financing Russian railroads, floating ,raFilian provincial government bonds and funding Argentine public works proGects. A recession in $:%7 enhanced #organDs power. -hat year #organ saved the +' government from a bank panic, forming a syndicate to prop up government reserves with a shipment of H&> million worth of Rothschild gold. #organ was the driving force behind !estern e5pansion in the +', financing and controlling !est9bound railroads through voting trusts. (n $:I% 2ornelius EanderbiltDs #organ9financed New Jork 2entral Railroad gave preferential shipping rates to 0ohn Rockefeller"#organ relationship. -he /ouse of #organ now fell under Rothschild and Rockefeller family control. A New Jork /erald headline read, ?Railroad Cings .orm ;igantic -rustB. 0. 1ierpont #organ, who once stated, ?2ompetition is a sinB, now opined gleefully, ?-hink of it. All competing railroad traffic west of 't. <ouis placed in the control of . RockefellerDs budding 'tandard 3il monopoly, cementing the
i5
about thirty men.B
#organ and 4dward /arrimanDs banker Cuhn <oeb held a monopoly over the railroads, while banking dynasties <ehman, ;oldman 'achs and <aFard Goined the Rockefellers in controlling the +' industrial base. (n $%)7 ,ankerDs -rust was set up by the 4ight .amilies. ,enGamin 'trong of ,ankerDs -rust was the first ;overnor of the New Jork .ederal Reserve ,ank. -he $%$7 creation of the .ed fused the power of the 4ight .amilies to the military and diplomatic might of the +' government. (f their overseas loans went unpaid, the oligarchs could now deploy +' #arines to collect the debts. #organ, 2hase and 2itibank formed an international lending syndicate. -he /ouse of #organ was coFy with the ,ritish /ouse of !indsor and the (talian /ouse of 'avoy. -he Cuhn <oebs, !arburgs, <ehmans, <aFards, (srael #oses 'eifs and ;oldman 'achs also had close ties to 4uropean royalty. ,y $:%= #organ controlled the flow of gold in and out of the +'. -he first American wave of mergers was in its infancy and was being promoted by the bankers. (n $:%I there were si5ty9nine industrial mergers. ,y $:%% there were twelve9hundred. (n $%)K 0ohn #oody L founder of #oodyDs (nvestor 'ervices L said it was impossible to talk of
Rockefeller and #organ interests as separate. 1ublic distrust of the combine spread. #any considered them traitors working for 4uropean old money. RockefellerDs 'tandard
3il, Andrew 2arnegieDs +' 'teel and 4dward /arrimanDs railroads were all financed by banker 0acob 'chiff at Cuhn <oeb, who worked closely with the 4uropean Rothschilds. 'everal !estern states banned the bankers. 1opulist preacher !illiam 0ennings ,ryan was thrice the emocratic nominee for 1resident from $:%& 9$%):. -he central theme of his anti9 imperialist campaign was that America was falling into a trap of ?financial servitude to ,ritish capitalB. -eddy Roosevelt defeated ,ryan in $%):, but was forced by this spreading populist wildfire to enact the 'herman Anti9-rust Act. /e then went after the 'tandard 3il -rust. (n $%$> the 1uGo hearings were held, addressing concentration of power on !all 'treet. -hat same year #rs. 4dward /arriman sold her substantial shares in New JorkDs ;uaranty -rust ,ank to 0.1. #organ, creating #organ ;uaranty -rust. 0udge <ouis ,randeis convinced 1resident !oodrow !ilson to call for an end to interlocking board directorates. (n $%$K the 2layton Anti9-rust Act was passed.
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0ack #organ L 0. 1ierpontDs son and successor L responded by calling on #organ clients Remington and !inchester to increase arms production. /e argued that the +' needed to enter !!(. ;oaded by the 2arnegie .oundation and other oligarchy fronts, !ilson accommodated. As 2harles -ansill wrote in America ;oes to !ar, ?4ven before the clash of arms, the .rench firm of
Rothschild .reres cabled to #organ A 2ompany in New Jork suggesting the flotation of a loan of H$)) million, a substantial part of which was to be left in the +' to pay for .rench purchases of American goods.B -he /ouse of #organ financed half the +' war effort, while receiving commissions for lining up contractors like ;4, u 1ont, +' 'teel, Cennecott and A'AR23. All were #organ clients. #organ also financed the ,ritish ,oer !ar in 'outh Africa and the .ranco91russian !ar. -he $%$% 1aris 1eace 2onference was presided over by #organ, which led both ;erman and Allied reconstruction efforts. (n the $%7)Ds populism resurfaced in America after ;oldman 'achs, <ehman ,ank and others profited from the 2rash of $%>%. /ouse ,anking 2ommittee 2hairman <ouis #c.adden ( 9NJ) said of the ;reat epression, ?(t was no accident. (t was a carefully contrived occurrence@-he international bankers sought
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to bring about a condition of despair here so they might emerge as rulers of us allB. 'en. ;erald Nye ( 9N ) chaired a munitions investigation in $%7&. Nye concluded that the /ouse of #organ had plunged the +' into !!( to protect loans and create a booming arms industry. Nye later produced a document titled -he Ne5t !ar, which cynically referred to ?the old goddess of democracy trickB, through which 0apan could be used to lure the +' into !!((. (n $%7I (nterior 'ecretary /arold (ckes warned of the influence of ?AmericaDs &) .amiliesB. /istorian .erdinand <undberg later penned a book of the e5act same title. 'upreme 2ourt 0ustice !illiam 3. ouglas decried, ?#organ influence@the most pernicious one in industry and finance today.B 0ack #organ responded by nudging the +' towards !!((. #organ had close relations with the (wasaki and an families L 0apanDs two wealthiest clans L who have owned #itsubishi and #itsui, respectively, since the companies emerged from $Ith 2entury shogunates. !hen 0apan invaded #anchuria, slaughtering 2hinese peasants at Nanking, #organ downplayed the incident. #organ also had close relations with (talian fascist ,enito #ussolini, while ;erman NaFi r. /Galmer 'chacht was a #organ ,ank liaison during !!((. After the war #organ representatives met with 'chacht at the ,ank of (nternational
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'ettlements (,(') in ,asel, 'witFerland.
4he 1ouse of Rockefeller ,(' is the most powerful bank in the world, a global central bank for the 4ight .amilies who control the private central banks of almost all !estern and developing nations. -he first 1resident of ,(' was Rockefeller banker ;ates #c;arrah9 an official at 2hase #anhattan and the .ederal Reserve. #c;arrah was the grandfather of former 2(A director Richard /elms. -he avid Rockefellers9 like the #organs9 had close ties to <ondon. #organs were Gust ?gofersB for the 4uropean Rothschilds. ,(' is owned by the .ederal Reserve, ,ank of 4ngland, ,ank of (taly, ,ank of 2anada, 'wiss National ,ank, Nederlandsche ,ank, ,undesbank and ,ank of .rance. /istorian 2arroll Muigley wrote in his epic book -ragedy and /ope that ,(' was part of a plan, ?to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole@to be controlled in a feudalistic fashion by the central banks of the world acting in concert by secret agreements.B -he +' government had a historical distrust of ,(', lobbying
(cke writes in 2hildren of the #atri5, that the Rockefellers and
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unsuccessfully for its demise at the $%KK post9!!(( ,retton !oods 2onference. (nstead the 4ight .amiliesD power was
e5acerbated, with the ,retton !oods creation of the (#. and the !orld ,ank. -he +' .ederal Reserve only took shares in ,(' in 'eptember $%%K. ,(' holds at least $)N of monetary reserves for at least :) of the worldDs central banks, the (#. and other multilateral institutions. (t serves as financial agent for international agreements, collects information on the global economy and serves as lender of last resort to prevent global financial collapse. ,(' promotes an agenda of monopoly capitalist fascism. (t gave a bridge loan to /ungary in the $%%)Ds to ensure privatiFation of that countryDs economy. (t served as conduit for 4ight .amilies funding of Adolf /itler9 led by the !arburgDs 0. /enry 'chroeder and #endelsohn ,ank of Amsterdam. #any researchers assert that ,(' is at the nadir of global drug money laundering. (t is no coincidence that ,(' is head8uartered in 'witFerland, favorite hiding place for the wealth of the global aristocracy and head8uarters for the 19> (talian .reemasonDs Alpina <odge and NaFi (nternational. 3ther institutions which the 4ight .amilies control include the !orld 4conomic .orum, the (nternational #onetary 2onference and the !orld -rade 3rganiFation.
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,retton !oods was a boon to the 4ight .amilies. -he (#. and !orld ,ank were central to this ?new world orderB. (n $%KK the first
!orld ,ank bonds were floated by #organ 'tanley and .irst ,oston. -he .rench <aFard family became more involved in /ouse of #organ interests. <aFard .reres9 .ranceDs biggest investment bank9 is owned by the <aFard and avid9!eill families9 old ;enoese banking scions represented by #ichelle avive. A recent 2hairman and 243 of 2itigroup was 'anford !eill. (n $%&: #organ ;uaranty launched 4uro92lear, a ,russels9based bank clearing system for 4urodollar securities. (t was the first such automated endeavor. 'ome took to calling 4uro92lear ?-he ,eastB. ,russels serves as head8uarters for the new 4uropean 2entral ,ank and for NA-3. (n $%I7 #organ officials met secretly in ,ermuda to illegally resurrect the old /ouse of #organ, twenty years before ;lass 'teagal Act was repealed. #organ and the Rockefellers provided the financial backing for #errill <ynch, boosting it into the ,ig = of +' investment banking. #errill is now part of ,ank of America. 0ohn . Rockefeller used his oil wealth to ac8uire 48uitable -rust,
which had gobbled up several large banks and corporations by
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the
$%>)Ds.
-he
;reat
epression
helped
consolidate
RockefellerDs power. /is 2hase ,ank merged with Cuhn <oebDs #anhattan ,ank to form 2hase #anhattan, cementing a long9time family relationship. -he Cuhn9<oebDs had financed L along with
Rothschilds L RockefellerDs 8uest to become king of the oil patch. National 2ity ,ank of 2leveland provided 0ohn . with the money needed to embark upon his monopoliFation of the +' oil industry. -he bank was identified in 2ongressional hearings as being one of three Rothschild9owned banks in the +' during the $:I)Ds, when Rockefeller first incorporated as 'tandard 3il of 3hio. 3ne Rockefeller 'tandard 3il partner was 4dward /arkness, whose family came to control 2hemical ,ank. Another was 0ames 'tillman, whose family controlled #anufacturers /anover -rust. ,oth banks have merged under the 01 #organ 2hase umbrella. -wo of 0ames 'tillmanDs daughters married two of !illiam RockefellerDs sons. -he two families control a big chunk of 2itigroup as well. (n the insurance business, the Rockefellers control #etropolitan <ife, 48uitable <ife, 1rudential and New Jork <ife. Rockefeller banks control >=N of all assets of the =) largest +' commercial banks and 7)N of all assets of the =) largest insurance companies. (nsurance companies9 the first in the +' was
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launched by .reemasons through their !oodmanDs of America9 play a key role in the ,ermuda drug money shuffle. 2ompanies under Rockefeller control include 455on #obil, 2hevron -e5aco, ,1 Amoco, #arathon 3il, .reeport #c#oran,
Muaker 1ackard,
3ats,
A'AR23,
+nited,
elta, 1aper,
Northwest, 1fiFer,
(--,
(nternational /arvester, Oero5, ,oeing, !estinghouse, /ewlett9 /oneywell, (nternational #otorola, #onsanto, +nion 2arbide and ;eneral .oods. -he Rockefeller .oundation has close financial ties to both .ord and 2arnegie .oundations. 3ther family philanthropic endeavors include Rockefeller ,rothers .und, Rockefeller (nstitute for #edical Research, ;eneral 4ducation ,oard, Rockefeller +niversity and the +niversity of 2hicago9 which churns out a steady stream of far right economists as apologists for international capital, including #ilton .riedman. -he family owns 7) Rockefeller 1laFa, where the national 2hristmas tree is lighted every year, and Rockefeller 2enter. avid Rockefeller was instrumental in the construction of the !orld -rade 2enter towers. -he main Rockefeller family home is a hulking comple5 in upstate New Jork known as 1ocantico /ills. -hey also own a 7>9room =th Avenue duple5 in #anhattan, a mansion in !ashington, 2, #onte 'acro Ranch in EeneFuela,
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coffee plantations in 4cuador, several farms in ,raFil, an estate at 'eal /arbor, #aine and resorts in the 2aribbean, /awaii and 1uerto Rico.
-he
ulles and Rockefeller families are cousins. Allen
ulles
created the 2(A, assisted the NaFis, covered up the Cennedy hit from his !arren 2ommission perch and struck a deal with the #uslim ,rotherhood to create mind9controlled assassins. ,rother 0ohn .oster ulles presided over the phony ;oldman
'achs trusts before the $%>% stock market crash and helped his brother overthrow governments in (ran and ;uatemala. ,oth were 'kull A ,ones, 2ouncil on .oreign Relations (2.R) insiders and 77rd egree #asons. -he Rockefellers were instrumental in forming the depopulation9 oriented 2lub of Rome at their family estate in ,ellagio, (taly. -heir 1ocantico /ills estate gave birth to the -rilateral 2ommission. -he family is a maGor funder of the eugenics movement which spawned /itler, human cloning and the current +' scientific circles. 0ohn Rockefeller 0r. headed the 1opulation 2ouncil until his death. /is namesake son is a 'enator from !est Eirginia. ,rother NA obsession in
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!inthrop Rockefeller was <ieutenant ;overnor of Arkansas and remains the most powerful man in that state. (n an 3ctober $%I= interview with 1layboy magaFine, Eice91resident Nelson Rockefeller9 who was also ;overnor of New Jork9 articulated his familyDs patroniFing worldview, ?( am a great believer in planning9
economic, social, political, military, total world planning.B ,ut of all the Rockefeller brothers, it is -rilateral 2ommission (-2) founder and 2hase #anhattan 2hairman avid who has spearheaded the familyDs fascist agenda on a global scale. /e defended the 'hah of (ran, the 'outh African apartheid regime and the 2hilean 1inochet Gunta. /e was the biggest financier of the 2.R, the -2 and (during the Eietnam !ar) the 2ommittee for an 4ffective and urable 1eace in Asia9 a contract bonanFa for those who made their living off the conflict. Ni5on asked him to be 'ecretary of -reasury, but Rockefeller declined the Gob, knowing his power was much greater at the helm of the 2hase. Author ;ary Allen writes in -he Rockefeller .ile that in $%I7, ? avid Rockefeller met with twenty9seven heads of state, including the rulers of Russia and Red 2hina.B A few ?'+14R R(2/B families,corporations,money trust and think tanks are America*s ?'hadow ;overnmentB
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5R("5RD
On May 30, 1961, President Kennedy departed for Europe and a summit meeting with Khrushchev Every day the Presidentia! tour was given "anner head!ines# and the meeting with Khrushchev was reported as an event of earth$sha%ing conse&uence 't was an important event (ut a meeting which was
pro"a"!y far more important, and which had commanded no front$page head!ines at a!!, ended &uiet!y on May )9, the day "efore President and Mrs Kennedy set out on their grand tour On May 1), 1961, *r Phi!ip E Mose!y, *irector of +tudies of the ,ounci! on -oreign .e!ations, announced that, /Prominent +oviet and 0merican citi1ens wi!! ho!d a wee%$ !ong unofficia! conference on +oviet$0merican re!ations in the +oviet 2nion, "eginning May )) / *r Mose!y, a co$chairman of the 0merican group, said that the +tate *epartment had approved the meeting "ut that the 0mericans invo!ved wou!d go as /private citi1ens/ and wou!d e3press their own views
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The New York Times' news story on *r announcement 5May 13, 19616 read7
Mose!y4s
/8he importance attached "y the +oviet 2nion to the meeting appears to "e suggested "y the fact that the +oviet group wi!! inc!ude ,entra! three mem"ers of and the one communist party4s ,ommittee
candidate mem"er of that "ody /8he meeting, to "e he!d in the town of
9i1hnyaya Oreanda, in the ,rimea, wi!! fo!!ow the pattern of a simi!ar unofficia! meeting, in which many of the same persons participated, at *artmouth ,o!!ege !ast fa!! 8he meetings wi!! ta%e p!ace in private and there are no p!ans to issue an agreed statement on the su":ects discussed /8he topics to "e discussed inc!ude disarmament and the guaranteeing of internationa! security, the internationa! peace, ro!e of advanced the ro!e of the 2nited 9ations in strengthening nations in aiding under$deve!oped countries, and the prospects for peacefu! and improving +oviet$
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2nited +tates re!ations /8he *artmouth conference !ast fa!! and the schedu!ed ,rimean conference originated from a suggestion made "y 9orman ,ousins, editor of The Saturday Review and co$chairman of the 0merican group going to the ,rimea, when he visited the +oviet 2nion a year and a ha!f ago /Mr ,ousins and *r Mose!y formed a sma!!
0merican group ear!y !ast year to organi1e the conferences the -ord 't received financia! support from -oundation 8his group for the the *artmouth 0merican
conference and for trave! costs to the ,rimean meeting se!ected representatives for the two meetings /0mong those who participated in the *artmouth conference were severa! who have since ta%en high posts in the Kennedy 0dministration, inc!uding *r ;a!t ; .ostow, now an assistant to President Kennedy, and <eorge - Kennan# now
55iii
2nited +tates 0m"assador to =ugos!avia
8he head of the +oviet de!egation to the meeting in the +oviet 2nion, May )), 1961, was 0!e%esander = Korneichu%, a c!ose persona! friend of Khrushchev 8he 0merican citi1ens schedu!ed to attend inc!uded "esides *r Mose!y and Mr ,ousins7 Marian Anderson, the singer#Dean Erwin N. Griswold, of the >arvard ?aw +choo!#Gabriel au!e, former economic adviser to President Eisenhower and now an e3ecutive of the Manufacturers 8rust ,ompany# Dr. Mar!aret Mead, a wide!y %nown anthropo!ogist whose name 5!i%e that of 9orman ,ousins6 has "een associated with communist front activities in the 2nited +tates# Dr. A. "illiam #oos, *irector of the ,hurch Peace 2nion# Stuart %enton, $hase, 2+ 0merican author nota"!e for his pro$socia!ist, anti$anti$ communist attitudes# "illiam former +enator, a!so we!!$%nown as a pro$socia!ist, anti$anti$ communist, now ,hairman of the (oard of En&y&lo'aedia %ritanni&a# Dr. Geor!e (isher, of the Massachusetts 'nstitute of 8echno!ogy# )ro*essor )aul M. Doty, +r., of >arvard4s ,hemistry *epartment# )ro*essor #loyd
55iv
Reynolds, =a!e 2niversity economist# )ro*essor #ouis %. Sohn of the >arvard ?aw +choo!# Dr. +ose'h E. +ohnson, an o!d friend and former associate of 0!ger >iss in the +tate *epartment, who succeeded >iss as President of the ,arnegie Endowment for 'nternationa! Peace, and sti!! ho!ds that position# )ro*essor Robert R. %owie, former head of the +tate *epartment4s Po!icy P!anning +taff 5a :o" which >iss a!so he!d at one time6, now *irector of the ,enter for 'nternationa! 0ffairs at >arvard# and Dr. Arthur #arson, former assistant to, and ghost writer for, President Eisenhower ?arson was often ca!!ed /Mr Modern .epu"!ican,/ "ecause the po!itica! phi!osophy which he espoused was precise!y that of Eisenhower 5?arson is now, 196), *irector of the ;or!d .u!e of ?aw ,enter at *u%e 2niversity, where his fu!!$time preoccupation is wor%ing for repea! of the ,onna!!y .eservation, so that the ;or!d ,ourt can ta%e :urisdiction over 2nited +tates affairs6
' thin% the meeting which the ,ounci! on -oreign .e!ations arranged in the +oviet 2nion, in 1961, was
55v
more important than President Kennedy4s meeting with Khrushchev, "ecause ' am convinced that the ,ounci! on -oreign .e!ations, together with a great num"er of other associated ta3$e3empt organi1ations, constitutes the invisi"!e government which sets the ma:or po!icies of the federa! government# e3ercises contro!!ing inf!uence on governmenta! officia!s who imp!ement the po!icies# and, through massive and s%i!!fu! propaganda, inf!uences ,ongress and the pu"!ic to support the po!icies ' am convinced that the o":ective of this invisi"!e government is to convert 0merica into a socia!ist state and then ma%e it a unit in a one$wor!d socia!ist system My convictions a"out the invisi"!e government are "ased on information which is presented in this "oo% 8he information a"out mem"ership and activities of the ,ounci! on -oreign .e!ations and of its inter!oc%ing affi!iates comes !arge!y from pu"!ications issued "y those organi1ations ' am deep!y inde"ted to count!ess individua!s who, when they !earned of my interest, enriched my own fi!es with materia! they had "een co!!ecting for years, hoping that someone wou!d
55vi
eventua!!y use it ' have not managed to get a!! of the mem"ership rosters and pu"!ications issued "y a!! of the organi1ations discussed >ence, there are gaps in my information
One aspect of the over$a!! su":ect, omitted entire!y from this "oo%, is the groups wor%ing in the re!ationship 2nited "etween and internationa!ist +tates
compara"!e groups a"road 8he .oya! 'nstitute of 'nternationa! 0ffairs in Eng!and 5usua!!y ca!!ed ,hatham >ouse6 and the 0merican ,ounci! on -oreign .e!ations were "oth conceived at a dinner meeting in Paris in 1919 (y wor%ing with the ,-., the .oya! 'nstitute, undou"ted!y, has had profound inf!uence on 0merican affairs Other internationa!ist organi1ations in foreign !ands which wor% with the 0merican ,ounci! on -oreign .e!ations, inc!ude the 'nstitut des .e!ations 'nternationa!es 5(e!gium6, *anish -oreign Po!icy +ociety, 'ndian ,ounci! of ;or!d 0ffairs, 0ustra!ian 'nstitute of 'nternationa! 0ffairs, and simi!ar organi1ations in -rance, 'ta!y, =ugos!avia, <reece, and 8ur%ey
55vii
8he /(i!der"ergers/ are another powerfu! group invo!ved in the internationa!ist we" 8he /(i!der"ergers/ ta%e their name from the scene of their first %nown meeting@the (i!der"erg >ote!, Ooster"ec%, 8he 9ether!ands, in May, 19AB 8he group consists of inf!uentia! ;estern "usinessmen, dip!omats, and high governmenta! officia!s 8heir meetings, conducted in secrecy and in a hugger$ mugger atmosphere, are he!d a"out every si3 months at various p!aces throughout the wor!d >is .oya! >ighness, Prince (ernhard of 8he 9ether!ands, has presided at every %nown meeting of the (i!der"erger <roup Prince (ernhard is %nown to "e an inf!uentia! mem"er of the +ocietC <enera!e de (e!gi&ue, a mysterious organi1ation which seems to "e an association of !arge corporate interests from many countries 0merican firms associated with the society are said to "e among the !arge corporations whose officers are mem"ers of the ,ounci! on -oreign .e!ations and re!ated organi1ations ' ma%e no effort to e3p!ore this situation in this vo!ume My confession of !imitation upon my research does not em"arrass me, "ecause two committees of ,ongress have a!so fai!ed to ma%e a comp!ete investigation of the
55viii
great &amarilla which manipu!ates our government 0nd the congressiona! committees were trying to investigate on!y one part of the we"@the powerfu! ta3$e3empt foundations in the 2nited +tates My own research does revea! the "road out!ines of the invisi"!e government
55i5
4able of Contents 3reface

.oreword
$./istory and -he 2ouncil >.!orld !ar (( and -ragic 2onse8uences 7..1A9!A29(1R K.2ommittee .or 4conomic evelopment =.,usiness Advisory 2ouncil &.Advertising 2ouncil I.+N and !orld ;overnment 1ropaganda :..oreign Aid %.#ore of -he (nterlock $).2ommunications #edia $$.(nterlocking +ntouchables $>.!hyP !hat 2an !e oP
555
2ommunists in government during !orld !ar (( formulated maGor policies which the -ruman administration followed6 but when the known communists were gone, the policies continued, under 4isenhower, Cennedy, 0ohnson. -he unseen they who took control of government during !orld !ar (( still control it. -heir tentacles of power are wrapped around levers of political control in !ashington6 reach into schools, big unions, colleges, churches, civic organiFations6 dominate communications6 have a grip on the prestige and money of big corporations. .or a generation,they have kept voters from effecting any changes at the polls. Eoters are limited to the role of choosing between parties to administer policies which they formulate. -hey are determined to convert this Republic into a socialist province of a one9world socialist system.-his book tells who they are and how they work. (f enough Americans had this information, our Republic would be saved. 1lease do your utmost to spread the word
555i
Chapter 1 16%45R7 A)D 41( C58)C69 1resident ;eorge !ashington, in his .arewell Address to the 1eople of the +nited 'tates on 'eptember $I, $I%&, established a foreign policy which became traditional and a main article of faith for the American people in their dealings with the rest of the world. !ashington warned against foreign influence in the shaping of national affairs. /e urged America to avoid permanent, entangling alliances with other nations, recommending a national policy of benign neutrality toward the rest of the world. !ashington did not want America to build a wall around herself, or to become, in any sense, a hermit nation. !ashington*s policy permitted freer e5change of travel, commerce, ideas, and culture between Americans and other people than Americans have ever enGoyed since the policy was abandoned. -he .ather of our 2ountry wanted the American government to be kept out of the wars and revolutions and political affairs of other nations. !ashington told Americans that their nation had a high destiny, which it could not fulfill if they permitted their government to become entangled in the affairs of other nations. espite the fact of two foreign wars (#e5ican !ar, $:K&9$:K:6
555ii
and 'panish American !ar, $:%:) the foreign policy of !ashington remained the policy of this nation, unaltered, for $>$ yearsLuntil !oodrow !ilson*s war message to 2ongress in April, $%$I.
!ilson himself, when campaigning for re9election in $%$&, had une8uivocally supported our traditional foreign policyQ his one maGor promise to the American people was that he would keep them out of the 4uropean war. Jet, even while making this promise, !ilson was yielding to a pressure he was never able to withstandQ the influence of 2olonel 4dward #. /ouse, !ilson*s all9powerful adviser. According to /ouse*s own papers and the historical studies of !ilson*s ardent admirers (see, for e5ample,(ntimate 1apers of 2olonel /ouse, edited by 2harles 'eymour, published in $%>& by /oughton #ifflin6 and, -he 2risis of the 3ld 3rder by Arthur #. 'chlesinger, 0r., published $%=I by /oughton #ifflin), /ouse created !ilson*s domestic and foreign policies, selected most of !ilson*s cabinet and other maGor appointees, and ran !ilson*s 'tate epartment. /ouse had powerful connections with international bankers in New Jork. /e was influential, for e5ample, with great financial institutions represented by such people as 1aul and .eli5 !arburg, 3tto /. Cahn, <ouis #arburg, /enry #orgenthau, 0acob
555iii
and #ortimer 'chiff, /erbert <ehman. /ouse had e8ually powerful connections with bankers and politicians of 4urope. ,ringing all of these forces to bear, /ouse persuaded !ilson that America had an evangelistic mission to save the world for "democracy." -he first maGor twentieth century tragedy for the +nited 'tates resultedQ !ilson*s war message to 2ongress and the declaration of war against ;ermany on April &, $%$I. /ouse also persuaded !ilson that the way to avoid all future wars was to create a world federation of nations. 3n #ay >I, $%$&, in a speech to the <eague to 4nforce 1eace, !ilson first publicly endorsed 2olonel /ouse*s world9government idea (without, however, identifying it as originating with /ouse).
(n 'eptember, $%$&, !ilson (at the urging of /ouse) appointed a committee of intellectuals (the first 1resident*s ,rain -rust) to formulate peace terms and draw up a charter for world government. -his committee, with /ouse in charge, consisted of about $=) college professors, graduate students, lawyers, economists, writers, and others. Among them were men still familiar to Americans in the $%&)*sQ !alter <ippmann (columnist)6 Norman -homas (head of the American socialist party)6 Allen ulles (former head of 2.(.A.)6 0ohn .oster ulles (late 'ecretary of 'tate)6 2hristian A. /erter (former 'ecretary of 'tate).
555iv
-hese eager young intellectuals around !ilson, under the clear eyes of crafty 2olonel /ouse, drew up their charter for world government (<eague of Nations 2ovenant) and prepared for the brave new socialist one9world to follow !orld !ar (. ,ut things went sour at the 1aris 1eace 2onference. -hey soured even more when constitutionalists in the +nited 'tates 'enate found out what was being planned and made it 8uite plain that the 'enate would not authoriFe +nited 'tates membership in such a world federation. ,itter with disappointment but not willing to give up, 2olonel /ouse called together in 1aris, .rance, a group of his most dedicated young intellectualsLamong them, 0ohn .oster and Allen ulles, 2hristian A. /erter, and -asker /. ,lissLand arranged a dinner meeting with a group of like9minded 4nglishmen at the #aGestic /otel, 1aris, on #ay $%, $%$%. -he group formally agreed to form an organiFation "for the study of international affairs." -he American group came home from 1aris and formed -he 2ouncil on .oreign Relations, which was incorporated in $%>$. -he purpose of the 2ouncil on .oreign Relations was to create (and condition the American people to accept) what /ouse called a "positive" foreign policy for AmericaLto replace the traditional "negative" foreign policy which had kept America out of the
555v
endless turmoil of old9world politics and had permitted the American people to develop their great nation in freedom and independence from the rest of the world. -he 2ouncil did not amount to a great deal until $%>I, when the Rockefeller family (through the various Rockefeller .oundations and .unds) began to pour money into it. ,efore long, the 2arnegie .oundations (and later the .ord .oundation) began to finance the 2ouncil. (n $%>%, the 2ouncil (largely with Rockefeller gifts) ac8uired its present head8uarters propertyQ -he /arold 1ratt /ouse, =: 4ast &:th 'treet, New Jork 2ity. (n $%7%, the 2ouncil began taking over the +.'. 'tate epartment. 'hortly after the start of !orld !ar ((, in 'eptember, $%7%, /amilton .ish Armstrong and !alter /. #allory, of the 2ouncil on .oreign Relations, visited the 'tate epartment to offer the epartment, services of the 2ouncil. (t was agreed that the 2ouncil would do research and make recommendations for the 'tate without formal assignment or responsibility. -he 2ouncil formed groups to work in four general fieldsL'ecurity and Armaments 1roblems, 4conomic and .inancial 1roblems, 1olitical 1roblems, and -erritorial 1roblems. -he Rockefeller .oundation agreed to finance, through grants, the
555vi
operation of this plan. (n .ebruary, $%K$, the 2ouncil on .oreign Relations* relationship with the 'tate created the epartment changed. -he 'tate epartment ivision of 'pecial Research, which was divided into irector of this ivision. !ithin a
4conomic, 'ecurity, 1olitical, -erritorial sections. <eo 1asvolsky, of the 2ouncil, was appointed very short time, members of the 2ouncil on .oreign Relations dominated this new ivision in the 'tate epartment. uring $%K>, the 'tate epartment set up the Advisory
2ommittee on 1ostwar .oreign 1olicy. 'ecretary of 'tate 2ordell /ull was 2hairman. -he following members of the 2ouncil on .oreign Relations were on this 2ommitteeQ +nder 'ecretary of 'tate 'umner !elles (Eice92hairman), ,enGamin E. 2ohen, Norman /. r. <eo 1asvolsky (45ecutive 3fficer)6 /amilton .ish Armstrong, (saiah ,owman, avis, and 0ames -. 'hotwell.
3ther members of the 2ouncil also found positions in the 'tate epartmentQ 1hilip 4. #osely, !alter 4. 'harp, and ;rayson Cirk, among others. -he crowning moment of achievement for the 2ouncil came at 'an .rancisco in $%K=, when over K) members of the +nited 'tates elegation to the organiFational meeting of the +nited Nations (where the +nited Nations 2harter was written) were members of the 2ouncil. Among themQ Alger /iss, 'ecretary of
555vii
'tate 4dward R. 'tettinius, <eo 1asvolsky, 0ohn .oster
ulles,
0ohn 0. #c2loy, 0ulius 2. /olmes, Nelson A. Rockefeller, Adlai 'tevenson, 0oseph 4. 0ohnson, Ralph 0. ,unche, 2lark #. 4ichelberger, and -homas C. .inletter. ,y $%K=, the 2ouncil on .oreign Relations, and various foundations and other organiFations interlocked with it, had virtually taken over the +.'. 'tate epartment. 'ome 2.R members were later identified as 'oviet espionage agentsQ for e5ample, Alger /iss and <auchlin 2urrie. 3ther 2ouncil on .oreign Relations membersL3wen <attimore, for e5ampleLwith powerful influence in the Roosevelt and -ruman Administrations, were subse8uently identified, not as actual communists or 'oviet espionage agents, but as "conscious, articulate instruments of the 'oviet international conspiracy." ( do not intend to imply by these citations that the 2ouncil on .oreign Relations is, or ever was, a communist organiFation. ,oasting among its members 1residents of the +nited 'tates (/oover, 4isenhower, and Cennedy), 'ecretaries of 'tate, and many other high officials, both civilian and military, the 2ouncil can be termed, by those who agree with its obGectives, a "patriotic" organiFation. -he fact, however, that communists, 'oviet espionage agents, and pro9communists could work inconspicuously for many years
555viii
as influential members of the 2ouncil indicates something very significant about the 2ouncil*s obGectives. -he ultimate aim of the 2ouncil on .oreign Relations (however well9intentioned its prominent and powerful members may be) is the same as the ultimate aim of international communismQ to create a one9world socialist system and make the +nited 'tates an official part of it. 'ome indication of the influence of 2.R members can be found in the boasts of their best friends. 2onsider the remarkable case of the nomination and confirmation of 0ulius 2. /olmes as +nited 'tates Ambassador to (ran. /olmes was one of the 2.R members who served as +nited 'tates delegates to the +nited Nations founding conference at 'an .rancisco in $%K=. #r. /olmes has had many important Gobs in the 'tate service. uring that early postwar period, the +nited 'tates government had appro5imately 7%) #erchant #arine oil tankers (built and used during !orld !ar (() which had become surplus. A law of 2ongress prohibited the government from selling the surplus vessels to foreign9owned or foreign9controlled companies, and prohibited any American company from purchasing them for resale to foreigners. -he purpose of the law was to guarantee that oil tankers (vital in epartment
since $%>=6 but from $%K= to $%K:, he was out of government
555i5
times of war) would remain under the control of the +nited 'tates government. 0ulius /olmes conceived the idea of making a 8uick profit by buying and selling some of the surplus tankers. /olmes was closely associated with 4dward 'tettinius, former 'ecretary of 'tate, and with two of 'tettinius* principal advisersQ 0oe 2asey, a former +.'. 2ongressman6 and 'tanley Clein, a New Jork financier. (n August, $%KI, this group formed a corporation (and ultimately formed others) to buy surplus oil tankers from the government. -he legal and technical maneuvering which followed is comple5 and shady, but it has all been revealed and reported by congressional committees. /olmes and his associates managed to buy eight oil tankers from the +.'. government and re9sell all of them to foreign interests, in violation of the intent of the law and of the surplus9disposal program. 3ne of the eight tankers was ultimately leased to the 'oviet +nion and used to haul fuel oil from communist Romania to the 2hinese reds during the Corean war. ,y the time he returned to foreign service with the 'tate epartment in 'eptember, $%K:, /olmes had made for himself an estimated profit of about one million dollars, with practically no investment of his own money, and at no financial risk.
5l
A 'enate subcommittee, which, in $%=>, investigated this affair, unanimously condemned the /olmes92asey9Clein tanker deals as "morally wrong and clearly in violation of the intent of the law," and as a "highly improper, if not actually illegal, get9rich98uick" operation which was detrimental to the interests of the +nited 'tates. /olmes and his associates were criminally indicted in $%=KLbut the epartment of 0ustice dismissed the indictments on a legal technicality later that same year. A few weeks after the criminal indictment against /olmes had been dismissed, 1resident 4isenhower, in $%==, nominated 0ulius 2. /olmes to be our Ambassador to (ran. 4nough +nited 'tates 'enators in $%== e5pressed a decent sense of outrage about the nomination of such a man for such a post that /olmes "permitted" his name to be withdrawn, before the 'enate acted on the 8uestion of confirming his appointment. -he 'tate epartment promptly sent /olmes to -angier with the
rank of #inister6 brought him back to !ashington in $%=& as a 'pecial Assistant to the 'ecretary of 'tate6 and sent him out as #inister and 2onsul ;eneral in /ong Cong and #acao in $%=%. And then, in $%&$, Cennedy nominated 0ulius 2. /olmes for the same Gob 4isenhower had tried to give him in $%==LAmbassador to (ran.
5li
Arguing in favor of /olmes, 'enator 1rescott ,ush admitted that /olmes* tanker deals were improper and ill9advised, but claimed that /olmes was an innocent victim of sharp operatorsR -he "innocent" victim made a million dollars in one year by being victimiFed. /e has never offered to make restitution to the government. #oreover, when 8uestioned, in April, $%&$, /olmes said he still sees nothing wrong with what he did and admits he would do it again if he had the opportunityLand felt that no congressional committee would ever investigate. All 'enators, who supported /olmes in debate, hammered the point that, although /olmes may have done something shady and unsavory during the three9year period in the late $%K)*s when he was out of government service, there was no evidence that he had ever misbehaved while he was in government service. -his amoral attitude seems to imply that a known chicken thief cannot be considered a threat to turkey growers, unless he has actually been caught stealing turkeys. 'enate debates on the confirmation of /olmes as Ambassador to (ran are printed in the 2ongressional RecordQ pp. &7:=9:&, April >I, $%&$6 pp. &&&:9&%, #ay 7, $%&$6 and pp. &%:>9%=, #ay :, $%&$. -he vote was taken on #ay :. After the history of 0ulius 2. /olmes had been thoroughly e5posed, the 'enate confirmed
5lii
/olmes* nomination I= to >$, with K 'enators taking no stand. 0ulius 2. /olmes was sworn in as +nited 'tates Ambassador to (ran on #ay $=, $%&$. -he real reason why /olmes was nominated for an important ambassadorship by two 1residents and finally confirmed by the 'enate is obviousLand was, indeed, inadvertently revealed by 'enator 1rescott ,ushQ /olmes, a 2ouncil on .oreign Relations member, is a darling of the leftwing internationalists who are determined to drag America into a socialist one9world system. uring the 'enate debate about /olmes* nomination 'enator ,ush saidQ "( believe that one of the most telling witnesses with whom ( have ever talked regarding #r. /olmes is #r. /enry !riston, formerly president of ,rown +niversity, now chairman of the 2ouncil on .oreign Relations, in New Jork, and chairman of the American Assembly. #r. !riston not only holds these distinguished offices, but he has also made a special study of the 'tate epartment and the career service in the 'tate epartment. "/e is credited with having *!ristoniFed* the .oreign 'ervice of the +nited 'tates. /e told me a few years ago ... SthatT *0ulius /olmes is the ablest man in the .oreign
5liii
'ervice 2orps of the +nited 'tates.*" r. !riston was (in $%&$) 1resident (not 2hairman, as 'enator ,ush called him) of the 2ouncil on .oreign Relations. ,ut 'enator ,ush was not e5aggerating or erring when he said that the 'tate epartment has been !ristoniFedLif we acknowledge that the 'tate epartment has been converted into an agency of r. !riston*s 2ouncil on .oreign Relations. (ndeed, the 'enator could have said that the +nited 'tates government has been !ristoniFed. /ere, for e5ample, are some of the members of the 2ouncil on .oreign Relations who, in $%&$, held positions in the +nited 'tates ;overnmentQ0ohn .. Cennedy, 1resident6 'ecretary of 'tate6 ouglas ean Rusk, ulles, illon, 'ecretary of the -reasury6
Adlai 'tevenson, +nited Nations Ambassador6 Allen !.
irector of the 2entral (ntelligence Agency6 2hester ,owles, +nder 'ecretary of 'tate6 !. Averell /arriman, Ambassador9at9 large6 0ohn 0. #c2loy, isarmament Administrator6 ;eneral <yman <. <emnitFer, 2hairman of the 0oint 2hiefs of 'taff6 0ohn Cenneth ;albraith, Ambassador to (ndia6 4dward R. #urrow, /ead of +nited 'tates (nformation Agency6 ;. .rederick Reinhardt, Ambassador to (taly6 avid C. 4. ,ruce, Ambassador to +nited Cingdom6 <ivingston -. #erchant, Ambassador to 2anada6 <t. ;en. 0ames #. ;avin, Ambassador to .rance6
5liv
;eorge .. Cennan, Ambassador to Jugoslavia6 0ulius 2. /olmes, Ambassador to (ran6 Arthur /. elegation to ;eneva Reischauer, Ambassador ean, head of the +nited 'tates isarmament 2onference6 Arthur #. to 0apan6 -homas C. .inletter,
'chlesinger, 0r., 'pecial !hite /ouse Assistant6 4dwin 3. Ambassador to the North Atlantic -reaty 3rganiFation for 4conomic 2o9operation and <abouisse, evelopment6 ;eorge 2. #c;hee, Assistant 'ecretary of 'tate for 1olicy 1lanning6 /enry R. irector of (nternational 2ooperation Administration6 ;eorge !. ,all, +nder 'ecretary of 'tate for 4conomic Affairs6 #c;eorge ,undy, 'pecial Assistant for National 'ecurity6 1aul /. NitFe, Assistant 'ecretary of efense6 Adolf A. ,erle, 2hairman, (nter9 epartmental 2ommittee on <atin America6 2harles 4. ,ohlen, Assistant 'ecretary of 'tate. -he names listed do not, by any means, constitute a complete roster of all 2ouncil members who are in the 2ongress or hold important positions in the Administration. (n the $%&)9&$ Annual Report of the 2ouncil on .oreign Relations, there is an item of information which reveals a great deal about the close relationship between the 2ouncil and the e5ecutive branch of the federal government. 3n 1age 7I, -he Report e5plains why there had been an unusually large recent increase in the number of non9resident
5lv
members (2.R members who do not reside within =) miles of New Jork 2ity /all)Q "-he rather large increase in the non9resident academic category is largely e5plained by the fact that many academic members have left New Jork to Goin the new administration."
2oncerning 1resident Cennedy*s membership in the 2.R, there is an interesting story. 3n 0une I, $%&), #r. Cennedy, then a +nited 'tates 'enator, wrote a letter answering a 8uestion about his membership in the 2ouncil. #r. Cennedy saidQ "( am a member of the 2ouncil on .oreign Relations in New Jork 2ity. As a long9time subscriber to the 8uarterly, .oreign Affairs, and as a member of the 'enate, ( was invited to become a member." 3n August >7, $%&$, #r. ;eorge '. .ranklin, 0r., 45ecutive irector of the 2ouncil on .oreign Relations, wrote a letter answering a 8uestion about 1resident Cennedy*s membership. #r. .ranklin saidQ "( am enclosing the latest Annual Report of the 2ouncil with a list of members in the back. Jou will note that
5lvi
1resident 4isenhower is a member, but this is not true of either 1resident Cennedy or 1resident -ruman." 1resident Cennedy is not listed as a member in the $%&)9&$ Annual Report of the 2.R. -he complete roster of 2.R members, as set out in the $%&)9&$ Annual Report, is in Appendi5 ( of this volume. 'everal persons, besides 1resident Cennedy, whom ( have called 2.R members are not on this roster. ( have called them 2.R members, if their names have ever appeared on any official 2.R membership list. -he 2ouncil is actually a small organiFation. (ts membership is restricted to I)) resident members (American citiFens whose residences or places of business are within =) miles of 2ity /all in New Jork 2ity), and I)) non9resident members (American citiFens who reside or do business outside that =)9mile radius)6 but most of the members occupy important positions in government, in education, in the press, in the broadcasting industry, in business, in finance, or in some multi9million9dollar ta59e5empt foundation. An indication of overall accomplishments of the 2ouncil can be found in its Annual Report of $%=:9=%, which reprints a speech by !alter /. #allory on the occasion of his retiring after 7> years as 45ecutive irector of the 2ouncil. 'peaking to the ,oard of irectors of the 2ouncil at a small dinner in his honor on #ay >$,
5lvii
$%=%, #r. #allory saidQ "!hen ( cast my mind back to $%>I, the year that ( first Goined the 2ouncil, it seems little short of a miracle that the organiFation could have taken root in those days. Jou will remember that the +nited 'tates had decided not to Goin the <eague of Nations.... 3n the domestic front, the budget was e5tremely small, ta5es were light ... and we didn*t even recogniFe the Russians. !hat could there possibly be for a 2ouncil on .oreign Relations to doP "!ell, there were a few men who did not feel content with that comfortable isolationist climate. -hey thought the +nited 'tates had an important role to play in the world and they resolved to try to find out what that role ought to be. 'ome of those men are present this evening." -he 2ouncil*s principal publication is a 8uarterly magaFine, .oreign Affairs. (ndeed, publishing this 8uarterly is the 2ouncil*s maGor activity6 and income from the publication is a principal source of revenue for the 2ouncil. 3n 0une 7), $%&$, .oreign Affairs had a circulation of only K7,=))6 but it is probably the most influential publication in the
5lviii
world. Cey figures in governmentLfrom the 'ecretary of 'tate downwardLwrite articles for, and announce new policies in, .oreign Affairs.3ther publications of the 2ouncil include three volumes which it publishes annually (1olitical /andbook of the !orld, -he +nited 'tates in !orld Affairs and books. -he 2ouncil*s financial statement for the $%&)9&$ fiscal year listed the following incomeQ #embership ues 2ouncil evelopment .und H$>7,>)) H:I,))). )) H>,=)).) ) H$$>,>)) H>7$,I)) H$)&,I)) H>&,I)). )) and H>$),7)) ocuments on American .oreign Relations), and numerous special studies and
2ommittees evelopment .und 2orporation 'ervice .oundation ;rants Net (ncome from (nvestments Net Receipt from 'ale of ,ooks .oreign 'ales Affairs 'ubscriptions
5li5
.oreign Affairs Advertising
H>$,:)). )) H>,%)).) ) L9L9L9
#iscellaneous
-otal 2ouncil by business firms.
H%>=,)))
"2orporation 'ervice" on this list means money contributed to the
-he firms listed as contributors to the 2ouncil during the $%&)9&$ fiscal yearQ basically the whole .ortune =)). !hat do these corporations get for the money contributed to the 2ouncil on .oreign RelationsP .rom the $%&)9&$ Annual Report of the 2ouncilQ "'ubscribers to the 2ouncil*s 2orporation 'ervice (who pay a minimum fee of H$,)))) are entitled to several privileges. Among them are (a) free consultation with members of the 2ouncil*s staff on problems of foreign policy, (b) access to the 2ouncil*s specialiFed library on international affairs, including its uni8ue collection of magaFine and press clippings, (c) copies of all 2ouncil publications and si5 subscriptions to .oreign Affairs for officers of the company or its library, (d) an off9the9record
dinner, held annually for chairmen and presidents of subscribing companies at which a prominent speaker discusses some outstanding issue of +nited 'tates foreign policy, and (e) two annual series of 'eminars for business e5ecutives appointed by their companies. -hese 'eminars are led by widely e5perienced Americans who discuss various problems of American political or economic foreign policy." All speakers at the 2ouncil*s dinner meetings and seminars for business e5ecutives are leading advocates of internationalism and the total state. #any of them, in fact, are important officials in government. -he ego9appeal is enormous to businessmen, who get special off9the9record briefings from 2abinet officers and other officials close to the 1resident of the +nited 'tates. -he briefings and the seminar lectures are consistently designed to elicit the support of businessmen for maGor features of Administration policy. .or e5ample, during $%&) and $%&$, the three issues of maGor importance to both 1residents 4isenhower and Cennedy were isarmament, the declining value of the American dollar, and the tariff9and9trade problem. -he 4isenhower and Cennedy positions on these three issues were virtually identical6 and the solutions they urged meshed with the internationalist program of pushing
li
America into a one9world socialist system. -he business e5ecutives who attended 2.R briefings and seminars in the $%&)9&$ fiscal year received e5pert indoctrination in the internationalist position on the three maGor issues of that year. .rom "'eminars .or ,usiness 45ecutives," 1ages K79KK of the $%&)9&$ Annual Report of the 2ouncil on .oreign RelationsQ "-he .all $%&) 'eminar ... was brought to a close with an appraisal of disarmament negotiations, past and present, by 4dmund A. ;ullion, then Acting eputy irector, +nited 'tates isarmament Administration.... "*-he (nternational 1osition of the ollar* was the theme
of the 'pring $%&$ 'eminar series. Robert -riffin, 1rofessor of 4conomics at Jale +niversity, spoke on the present balance of payments situation at the opening session. At the second meeting, !illiam iebold, 0r., irector of 4conomic 'tudies at the 2ouncil, addressed the group on +nited 'tates foreign trade policy. -he third meeting dealt with foreign investment and the balance of payments. August #affry, Eice 1resident of the (rving -rust 2ompany, was discussion leader.... "3n 0une :, ;eorge !. ,all, +nder 'ecretary of 'tate for 4conomic Affairs, spoke at the annual 2orporation
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'ervice dinner for presidents and board chairmen of participating companies.... 'ecretary ,all SdiscussedT the foreign economic policy of the new Cennedy Administration." ;eorge !. ,all was, for several years, a registered lobbyist in !ashington, representing foreign commercial interests. /e is a chief architect of 1resident Cennedy*s $%&> tariff9and9trade proposalsLwhich would internationaliFe American trade and commerce, as a prelude to amalgamating our economy with that of other nations. (n $%&)9&$, :K leading corporations contributed $$>,>)) ta59 e5empt dollars to the 2ouncil on .oreign Relations for the privilege of having their chief officers e5posed to the propaganda of international socialism. A principal activity of the 2ouncil is its meetings, according to the $%=:9$%=% annual reportQ " uring $%=:9=%, the 2ouncil*s program of meetings continued to place emphasis on small, roundtable meetings.... 3f the %% meetings held during the year, =: were roundtables.... -he balance of the meetings program was made up of the more traditional large afternoon or dinner sessions for larger groups of 2ouncil
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members. (n the course of the year, the 2ouncil convened such meetings for 1remier 2astro6 .irst eputy 1remier #ikoyan6 'ecretary9;eneral ag /ammarskGold...." -he 2ouncil*s annual report lists all of the meetings and "distinguished" speakers for which it convened the meetings. (t is an amaFing list. Although the 2ouncil has ta59e5emption as an organiFation to study international affairs and, presumably, to help the public arrive at a better understanding of +nited 'tates foreign policy, not one speaker for any 2ouncil meeting represented traditional +. '. policy. 4very one was a known advocate of leftwing internationalism. A surprising number of them were known communists or communist sympathiFers or admitted socialists. Cwame Nkrumah, 1rime #inister of ;hana, who is widely believed to be a communist6 who is admittedly socialist6 and who aligned his nation with the 'ovietsLspoke to the 2ouncil on ".ree Africa," with !. Averell /arriman presiding. #ahmoud .awFi, #inister of .oreign Affairs of the +nited Arab Republic, a socialist whose hatred of the +nited 'tates is rather well known, spoke to the 2ouncil on "#iddle 4ast." /erbert <. #atthews, a member of the editorial board of -he New Jork -imes (whose articles on 2astro as the Robin /ood of 2uba built that communist hoodlum a worldwide reputation and helped
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him con8uer 2uba) spoke to the 2ouncil twice, once on "A 1olitical Appraisal of <atin American Affairs," and once on "-he 2astro Regime." #. 2. 2hagla, Ambassador of (ndia to the +nited 'tates, a socialist, spoke to the 2ouncil on "(ndian .oreign 1olicy." Anastas (. #ikoyan, .irst eputy 1remier, +''R, spoke to the
2ouncil on "(ssues in 'oviet9American Relations," with 0ohn 0. #c2loy (later Cennedy*s isarmament Administrator) presiding. .idel 2astro spoke to the 2ouncil on "2uba and the +nited 'tates." /ere are some other well9known socialists who spoke to the 2ouncil on .oreign Relations during the $%=:9=% yearQ ag /ammarskGold, 'ecretary9;eneral of the +nited Nations6 1er 0acobsson, #anaging irector of the (nternational #onetary .und6 Abba 4ban, Ambassador of (srael to the +nited 'tates6 !illy ,randt, #ayor of !est ,erlin6 'tanley de Uoysa, #inister of .inance of 2eylon6 #ortarGi esai, #inister of .inance of (ndia6 Eictor +r8uidi, 1resident of #e5ican 4conomic 'ociety6 .ritF 4rler, 2o92hairman of the 'ocialist ;roup in the ;erman ,undestag6 -om #boya, #ember of the Cenya <egislative 2ouncil6 'ir ;rantley /. Adams, 1rime #inister of the !est (ndies .ederation6 -heodore Collek, #inister of (srael6 irector9;eneral of the 3ffice of the 1rime r. ;ikomyo !. Ciano, member of the Cenya
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<egislative 2ouncil. 3fficials of communist governments, in addition to those already listed, who spoke to the 2ouncil that year, included 3scar <ange, Eice91resident of the 'tate 2ouncil of the 1olish 1eople*s Republic6 and #arko NikeFic, Ambassador of Jugoslavia to the +nited 'tates.
-hroughout this book, ( show the close inter9locking connection between the 2ouncil on .oreign Relations and many other organiFations. -he only organiFations formally affiliated with the 2ouncil, however, are the 2ommittees on .oreign Relations, which the 2ouncil created, which it controls, and which e5ist in 7) citiesQ Albu8uer8ue, Atlanta, ,irmingham, ,oise, ,oston, 2asper, 2harlottesville, enver, es #oines, etroit, /ouston, (ndianapolis, <ittle Rock, <os Angeles, <ouisville, Nashville, 3maha, 1hiladelphia, 1ortland (#aine), 1ortland (3regon), 1rovidence, 't. <ouis, 't. 1aul9#inneapolis, 'alt <ake 2ity, 'an .rancisco, 'eattle, -ucson, -ulsa, !ichita, !orcester. A booklet entitled 2ommittees on .oreign RelationsQ irectory of
#embers, 0anuary, $%&$, published by the 2ouncil on .oreign Relations, contains a roster of members of all the 2ommittees on .oreign Relations, e5cept the one at 2asper, !yoming, which was not organiFed until later in $%&$. -he booklet also gives a
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brief history of the 2ommitteesQ "(n $%7:, with the financial assistance of the 2arnegie 2orporation of New Jork, the 2ouncil began to organiFe affiliated discussion groups in a few American cities.... "4ach 2ommittee is composed of forty or more men who are leaders in the professions and occupations of their areaLrepresentatives of business, the law, universities and schools, the press, and so on. About once a month, from 3ctober through #ay, members come together for dinner and an evening of discussion with a guest speaker of special competence.... 'ince the beginning in $%7:, the 2arnegie 2orporation of New Jork has continued to make annual grants in support of the 2ommittee program." -he following information about the 2ommittees on .oreign Relations is from the $%&)9&$ Annual Report of the 2ouncil on .oreign RelationsQ " uring the past season the .oreign Relations
2ommittees carried on their customary programs of private dinner meetings. (n all, >)& meetings were held....
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"-he 2ouncil arranged or figured in the arrangement of about three98uarters of the meetings held, the other sessions being undertaken upon the initiative of the 2ommittees. Attendance at the discussions averaged >: persons, slightly more than in previous years and about the ma5imum number for good discussion. -here was little change in membershipLthe total being Gust under $:)). (t will be recalled that this membership consists of men who are leaders in the various professions and occupations.... "3n 0une > and 7, the >7rd annual conference of 2ommittee representatives was held at the /arold 1ratt /ouse. #ounting pressures throughout the year ... made it advisable to plan a conference program that would facilitate re9e5amination of the strategic uses of the +nited Nations for American 1olicy in the years ahead. Accordingly, the conference theme was designated as +nited 'tates 1olicy and the +nited Nations. 4mphasis was upon re9appraisal of the +nited 'tates national interest in the +nited NationsLand the cost of sustaining that interest.... "(n the course of the year, officers and members of the 2ouncil and of the staff visited most of the 2ommittees
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for the purpose of leading discussions at meetings, supervising 2ommittee procedures and seeking the strengthening of 2ommittee relations with the 2ouncil." Chapter 2 "5R9D "AR 66 A)D 4RA&6C C5)%(:8()C(% Although the 2ouncil on .oreign Relations had almost gained controlling influence on the government of the +nited 'tates as early as $%K$, it had failed to indoctrinate the American people for acceptance of what 2olonel /ouse had called a "positive" foreign policy. (n $%K), .ranklin . Roosevelt (although eager to get the +nited
'tates into the 'econd !orld !ar and already making preparations for that tragedy) had to campaign for re9election with the same promise that !ilson had made in $%$&Lto keep us out of the 4uropean war. 4ven as late as the day before the 0apanese attack on 1earl /arbor in were still ecember, $%K$, the American people "isolationist"La word which overwhelmingly
internationalists use as a term of contempt but which means merely that the American people were still devoted to their nation*s traditional foreign policy. (t was necessary for Roosevelt to take steps which the public
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would not notice or understand but which would inescapably involve the nation in the foreign war. !hen enough such sly involvement had been manipulated, there would come, eventually, some incident to push us over the brink into open participation. -hen, any American who continued to advocate our traditional foreign policy of benign neutrality would be an obGect of public hatred, would be investigated and condemned by officialdom as a "pro9naFi," and possibly prosecuted for sedition.
-he 2ouncil on .oreign Relations has heavy responsibility for the maneuvering which thus dragged America into !orld !ar ((. 3ne maGor step which Roosevelt took toward war (at precisely the time when he was campaigning for his third9term re9election on a platform of peace and neutrality to keep America out of war) was his radical alteration of traditional concepts of +nited 'tates policy in order to declare ;reenland under the protection of our #onroe octrine. -he 2ouncil on .oreign Relations officially boasts full responsibility for this fateful step toward war. 3n pages $7 and $K of a book entitled -he 2ouncil on .oreign RelationsQ A Record of -wenty9.ive Jears, $%>$9$%K& (written by officials of the 2ouncil and published by the 2ouncil on 0anuary $, $%KI) are these passagesQ
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"3ne further e5ample may be cited of the way in which ideas and recommendations originating at 2ouncil meetings have entered into the stream of official discussion and action. "3n #arch $I, $%K), a 2ouncil group completed a confidential report which pointed out the strategic importance of ;reenland for transatlantic aviation and for meteorological observations. -he report statedQ "*-he possibility must be considered that enmark might
be overrun by ;ermany. (n such case, ;reenland might be transferred by treaty to ;erman sovereignty.* "(t also pointed out the possible danger to the +nited 'tates in such an eventuality, and mentioned that ;reenland lies within the geographical sphere *within which the #onroe octrine is presumed to apply.* "'hortly after this, one of the members of the group which had prepared the report was summoned to the !hite /ouse. 1resident Roosevelt had a copy of the memorandum in his hand and said that he had turned to his visitor for advice because of his part in raising the 8uestion of ;reenland*s strategic importance.
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";ermany invaded
enmark on April %, $%K). At his
press conference three days later, the 1resident stated that he was satisfied that ;reenland was a part of the American continent. After a visit to the !hite /ouse on the same day, the with the 1resident. "3n April %, $%K$, an agreement was signed between the +nited 'tates and enmark which provided for assistance by the +nited 'tates to ;reenland in the maintenance of its status, and granted to the +nited 'tates the right to locate and construct such airplane landing9fields, seaplane facilities, and radio and meteorological installations as might be necessary for the defense of ;reenland, and for the defense of the American continent. -his was eight months before ;ermany declared war on the +nited 'tates. "-he 2ouncil*s report on ;reenland was only one item in an e5tensive research proGect which offered an unusual instance of wartime collaboration between ;overnment agencies and a private institution.... -he proGect ... e5hibited the kind of contribution which the 2ouncil has been uni8uely e8uipped to provide...." anish #inister said that he agreed
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-he
anish colony of ;reenlandLa huge island covered by polar enmark.
iceLlies in the Arctic 3cean, $7>= miles off the coast of
(t is >)) miles from 2anada, &=) miles from the ,ritish (sles. -he e5treme southwestern tip of ;reenland is $7$= miles from the most e5treme northeastern tip of the +nited 'tates (#aine). (n other words, 2anada and 4ngland, which were at war with ;ermany when we undertook to protect ;reenland from ;ermany, are both much closer to ;reenland than the +nited 'tates is. ,ut history gives better proof than geography does, that the learned 2ouncil members who put ;reenland in the !estern /emisphere, within the meaning of the #onroe either ignorant or dishonest. -he #onroe proclaimed in $:>7. octrine, were octrine, closing the
!estern /emisphere to further 4uropean coloniFation, was enmark, a 4uropean nation, coloniFed ;reenland, proclaiming sole sovereignty in $%>$, without any hint of protest from the +nited 'tates that this 4uropean coloniFation infringed upon the #onroe octrine.
#embers of the 2ouncil on .oreign Relations played a key role in getting America into !orld !ar ((. -hey played the role in creating
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the basic policies which this nation has followed since the end of !orld !ar ((. -hese policies are accomplishingQ ($) the redistribution to other nations of the great +nited 'tates reserve of gold which made our dollar the strongest currency in the world6 (>) the building up of the industrial capacity of other nations, at our e5pense, thus eliminating our pre9eminent productive superiority6 (7) the taking away of world markets from +nited 'tates producers (and even much of their domestic market) until capitalistic America will no longer dominate world trade6 (K) the entwining of American affairsLeconomic, political, cultural, social, educational, and even religiousLwith those of other nations until the +nited 'tates will no longer have an independent policy, either domestic or foreignQ until we can not return to our traditional foreign policy of maintaining national independence, nor to free private capitalism as an economic system. -he ghastly wartime and post9war decisions (which put the 'oviet +nion astride the globe like a menacing colossus and placed the
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incomparably stronger +nited 'tates in the position of appeasing and retreating) can be traced to persons who were members of the 2ouncil on .oreign Relations. 2onsider a specific e5ampleQ the e5plosive ;erman problem.
(n 3ctober, $%K7, 2ordell /ull (+. '. 'ecretary of 'tate), Anthony 4den (.oreign #inister for ;reat ,ritain), and E. #olotov ('oviet 2ommissar for .oreign Affairs), had a conference at #oscow. 4den suggested that they create a 4uropean Advisory 2ommission which would decide how ;ermany, after defeat, would be partitioned, occupied, and governed by the three victorious powers. #olotov approved. /ull did not like the idea, but agreed to it in deference to the wishes of the two others. 1hilip 4. #osely, of the 2.R, was /ull*s special adviser at this #oscow 2onference. -he ne5t month, November, $%K7, 1resident .ranklin .
Roosevelt went to -ehran for his first conference with 'talin and 2hurchill. Aboard the +. '. '. (owa en route to -ehran, Roosevelt had a conference with his 0oint 2hiefs of 'taff. -hey discussed, among other things, the post9war division and occupation of ;ermany. 1resident Roosevelt predicted that ;ermany would collapse
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suddenly and that "there would definitely be a race for ,erlin" by the three great powers. -he 1resident saidQ "!e may have to put the +nited 'tates divisions into ,erlin as soon as possible, because the +nited 'tates should have ,erlin." /arry /opkins suggested that "we be ready to put an airborne division into ,erlin two hours after the collapse of ;ermany." Roosevelt wanted the +nited 'tates to occupy ,erlin and northwestern ;ermany6 the ,ritish to occupy .rance, ,elgium, and southern ;ermany6 and the 'oviets to have eastern ;ermany. At the -ehran 2onference (November >I9 ecember >, $%K7), 'talin seemed singularly indifferent to the 8uestion of which power would occupy which Fones of ;ermany after the war. 'talin revealed intense interest in only three topicsQ ($) urging the western allies to make a frontal assault, across the 4nglish 2hannel, on /itler*s fortress 4urope6 (>) finding out, immediately, the name of the man whom the western allies would designate to command such an operation (4isenhower had not yet been selected)6 and (7) reducing the whole of 4urope to virtual impotence so that the 'oviet +nion would be the only maGor power on the continent after the war.
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Roosevelt approved of every proposal 'talin made. A broad outline of the behavior and proposals of Roosevelt, 2hurchill, and 'talin at -ehran can be found in the diplomatic papers published in $%&$ by the 'tate epartment, in a volume iplomatic entitled .oreign Relations of the +nited 'tatesQ 1apersQ -he 2onferences at 2airo and -ehran $%K7. As to specific agreements on the postwar division and occupation of ;ermany, the -ehran papers reveal only that the 4uropean Advisory 2ommission would work out the details. !e know that Roosevelt and his military advisers in November, $%K7, agreed that America should take and occupy ,erlin. Jet, $I months later, we did Gust the opposite.
(n the closing days of !orld !ar ((, the American Ninth Army was rolling toward ,erlin, meeting little resistance, slowed down only by ;erman civilians clogging the highways, fleeing from the Russians. ;erman soundtrucks were circulating in the ,erlin area, counseling stray troops to stop resistance and surrender to the Americans. 'ome twenty or thirty miles east of ,erlin, the ;erman nation had concentrated its dying strength and was fighting savagely against the Russians. 3ur Ninth Army could have been in ,erlin within a few hours,
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probably without shedding another drop of blood6 but ;eneral 4isenhower suddenly halted our Army. /e kept it sitting idly outside ,erlin for days, while the Russians slugged their way in, killing, raping, ravaging. !e gave the Russians control of the eastern portion of ,erlinLand of all the territory surrounding the city. -o the south, ;eneral 1atton*s forces were plowing into 2Fechoslovakia. !hen 1atton was thirty miles from 1rague, the capital, ;eneral 4isenhower ordered him to stopLordered him not to accept surrender of ;erman soldiers, but to hold them at bay until the Russians could move up and accept surrender. As soon as the Russians were thus established as the con8uerors of 2Fechoslovakia, 4isenhower ordered 1atton to evacuate. +nits of 2Fechoslovakian patriots had been fighting with !estern armies since $%K7. !e had promised them that they could participate in the liberation of their own homeland6 but we did not let them move into 2Fechoslovakia until after the Russians had taken over. 2Fechoslovakian and American troops had to ask the 'oviets for permission to come into 1rague for a victory celebrationLafter the Russians had been permitted to con8uer the country. !estern Armies, under 4isenhower*s command, rounded up an estimated five million anti9communist refugees and delivered them
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to the 'oviets who tortured them, sent them to slave camps, or murdered them. All of this occurred because we refused to do what would have been easy for us to doLand what our top leaders had agreed Gust $I months before that we must doQ that is, take and hold ,erlin and surrounding territory until postwar peace treaties were made.
!ho made the decisions to pull our armies back in 4urope and let the 'oviets take overP ;eneral 4isenhower gave the orders6 and, in his book,2rusade in 4urope (published in $%K:, before the awful conse8uences of those decisions were fully known to the public), 4isenhower took his share of credit for making the decisions. !hen he entered politics four years later, 4isenhower denied responsibilityQ he claimed that he was merely a soldier, obeying orders, implementing decisions which 1residents Roosevelt and -ruman had made. #emoirs of ,ritish military men indicate that 4isenhower went far beyond the call of military duty in his "co9operative" efforts to help the 'oviets capture political prisoner*s and enslave all of central 4urope.-riumph in the !est, by Arthur ,ryant, published in $%=% by oubleday A 2ompany, as a "/istory of the !ar Jears ,ased iaries of .ield9#arshal <ord Alanbrooke, 2hief of the on the
(mperial ;eneral 'taff," reveals that, in the closing days of the
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war, ;eneral 4isenhower was often in direct communication with 'talin, reporting his decisions and actions to the 'oviet dictator before 4isenhower*s own military superiors knew what was going on. Regardless of what responsibility ;eneral 4isenhower may or may not have had for formulating the decisions which held our armies back from 4astern 4urope, those decisions seem to have stemmed from the conferences which Roosevelt had with 'talin at -ehran in $%K7 and at Jalta in $%K=.
,ut who made the decision to isolate ,erlin $$) miles deep inside communist9controlled territory without any agreements concerning access routes by which the !estern 1owers could get to the cityP According to Arthur Crock, of the New Jork -imes, ;eorge .. Cennan, (a member of the 2ouncil on .oreign Relations) persuaded Roosevelt to accept the ,erlin Foning arrangement. Cennan, at the time, was political adviser to Ambassador 0ohn ;. !inant, who was the +nited 'tates Representative on the three9 member 4uropean Advisory 2ommission. #r. Crock*s account (in the New Jork -imes, 0une $:, $%&$ and 0uly >, $%&$) is rather involved6 but here is the essence of itQ 1resident Roosevelt and 1rime #inister 2hurchill agreed
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to enclose ,erlin $$) miles within the 'oviet occupation Fone. !inant submitted a recommendation, embracing this agreement. !inant felt that it would offend the 'oviets if we asked for guaranteed access routes, and believed that guarantees were unnecessary anyway. !hen submitting his recommendation to !ashington, however, !inant attached a map on which a specific allied corridor of access into the city was drawn. !inant*s proposal was never acted on in !ashington. -herefore, the ,ritish submitted a recommendation. Roosevelt reGected the ,ritish plan, and made his own proposal. -he ,ritish and 'oviets disliked Roosevelt*s plan6 and negotiations over the Foning of ,erlin were deadlocked. ;eorge .. Cennan broke the deadlock by going directly to Roosevelt and persuading him to accept the ,erlin Foning agreement, which #r. Crock calls a "war9breeding monstrosity," and a "witless travesty on statecraft and military competence." #r. Crock says most of his information came from one of 1hilip 4. #osely*s articles in an old issue of .oreign AffairsLwhich ( have been unable to get for my files. ( cannot, therefore, guarantee the
l55i
authenticity of #r. Crock*s account6 but ( can certainly agree with his conclusion that only 0oseph 'talin and international communism benefitted from the "incredible Foning agreements" that placed ",erlin $$) miles within the 'oviet Fone and reserved no guaranteed access routes to the city from the ,ritish and American Fones." (t is interesting to note that 1hilip 4. #osely (2.R member who was 2ordell /ull*s adviser when the postwar division of ;ermany was first discussed at the #oscow 2onference in $%K7) succeeded ;eorge .. Cennan as political adviser to 0ohn ;. !inant of the 4uropean Advisory 2ommission shortly after Cennan had persuaded Roosevelt to accept the ,erlin Foning agreements.
(t is easy to see why the 'oviets wanted the ,erlin arrangement which Roosevelt gave them. (t is not difficult to see the ,ritish viewpointQ s8ueeFed between the two giants who were his allies, 2hurchill tried to play the 'oviets against the Americans, in the interest of getting the most he could for the future trade and commerce of 4ngland. ,ut why would any American want (or, under any conditions, agree to) the craFy ,erlin agreementP -here are only three possible answersQ
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($) the Americans who set up the ,erlin arrangementLwhich means, specifically, ;eorge .. Cennan and 1hilip 4. #osely, representing the 2ouncil on .oreign RelationsLwere ignorant fools6 or (>) they wanted to make ,erlin a powder keg which the 'oviets could use, at will, to intimidate the !est6 or (7) they wanted a permanent, ready source of war which the +nited 'tates government could use, at any time, to salvage its own internationalist policies from criticism at home, by scaring the American people into "buckling down" and "tightening up" for "unity" behind our "courageous 1resident" who is "calling the Cremlin bluff" by spending to prepare this nation for all9out war, if necessary, to "defend the interests of the free9world" in ,erlin. ;eorge .. Cennan and 1hilip 4. #osely and the other men associated with them in the 2ouncil on .oreign Relations are not ignorant fools. ( do not believe they are traitors who wanted to serve the interests of the Cremlin. 'o, in trying to assess their motives, ( am left with one choiceQ they wanted to set ,erlin up as a perpetual e5cuse for any kind of program which the 2ouncil on .oreign Relations might want the American government to adopt. <ong, long ago, Cing /enry of 4ngland told 1rince /al that the way to run a country and keep the people from being too critical of how you run it, is to busy giddy minds with foreign 8uarrels.
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A study of 1resident Cennedy*s 0uly >=, $%&$, speech to the nation about ,erlin, together with an e5amination of the spending program which he recommended to 2ongress a few hours later, plus a review of contemporary accounts of how the stampeded 2ongress rushed to give the 1resident all he askedLsuch a study, set against the backdrop of our refusal to do anything vigorous with regard to the communist menace in 2uba, will, ( think, Gustify my conclusions as to the motives of men, still in power, who created the ,erlin situation. Chapter 3 3A;"5R9D A A6R% C58)C69;63R
-hrough many interlocking organiFations, the 2ouncil on .oreign Relations "educates" the publicLand brings pressures upon 2ongressLto support 2.R policies. All organiFations, in this incredible propaganda web, work in their own way toward the obGective of the 2ouncil on .oreign RelationsQ to create a one9 world socialist system and to make America a part of it. All of the organiFations have federal ta59e5emption as "educational" groups6 and they are all financed, in part, by ta59e5empt foundations, the principal ones being .ord, Rockefeller, and 2arnegie. #ost of them also have close working relations with official agencies of the +nited 'tates ;overnment.
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-he 2.R does not have formal affiliationLand can therefore disclaim official connection withLits subsidiary propaganda agencies (e5cept the 2ommittees on .oreign Relations, organiFed by the 2.R in 7) cities throughout the +nited 'tates)6 but the real and effective interlock between all these groups can be shown not only by their common obGective (one9world socialism) and a common source of income (the foundations), but also by the overlapping of personnelQ directors and officials of the 2ouncil on .oreign Relations are also officials in the interlocking organiFations.
-he .oreign 1olicy Association9!orld Affairs 2enter, 7K= 4ast K&th 'treet, New Jork $I, New Jork, is probably the most influential of all the agencies which can be shown as propaganda affiliates of the 2ouncil on .oreign Relations in matters concerned primarily with American foreign policy. 3n April >%, $%&), the #arch9April -erm ;rand 0ury of .ulton 2ounty, ;eorgia, handed down a 1resentment concerning subversive materials in schools, which saidQ "An e5tensive investigation has been made by the 0ury into the .oreign 1olicy Association of New Jork 2ity and its *;reat ecisions 1rogram,* which it is sponsoring in
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our area.... "-his matter was brought to our attention by the Americanism 2ommittee of the !aldo #. 'laton 1ost $K), American <egion, and several other local patriotic groups. !e were informed that the ;reat ecisions 1rogram was being taught in our public high schools and by various well9meaning civic and religious groups, who were not aware of the past records of the leaders of the .oreign 1olicy Association, nor of the authors of the te5tbooks prescribed for this ;reat ecisions program.
"4vidence was presented to us showing that some of these leaders and authors had a long record, dating back many years, in which they either belonged to, or actively supported left9wing or subversive organiFations. "!e further found that invitations to participate in these *study groups* were being mailed throughout our county under the name of one of our local universities.... !e learned that the prescribed booklets were available upon re8uest in our local public libraries.... "-he range of the activity by this organiFation has reached alarming proportions in the schools and civic
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groups in certain other areas in ;eorgia. (ts spread is a matter of deep concern to this 0ury and we, therefore, call upon all school officials throughout the state to be particularly alert to this insidious and subversive material. !e further recommend that all te5tbook committee membersLcity, county and stateLrecogniFe the undesirable features of this material and take action to remove it from our schools. ".inally, we urge that all ;rand 0uries throughout the 'tate of ;eorgia give matters of this nature their serious consideration." 3n 0une 7), $%&), the #ay90une -erm ;rand 0ury of .ulton 2ounty, ;eorgia, handed down another 1resentment, which saidQ "(t is our understanding that the .oreign 1olicy Association*s ;reat ecisions program, criticiFed by the #arch9April ;rand 0ury, .ulton 2ounty, has been removed from the Atlanta and .ulton 2ounty schools.... "Numerous letters from all over the +nited 'tates have been received by this grand Gury, from individuals and associations, commending the 1resentment of the previous grand Gury on the .oreign 1olicy Association. Not a single letter has been received by us criticiFing
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these presentments." (n 'eptember, $%&), the Americanism 2ommittee of !aldo #. 'laton 1ost No. $K), -he American <egion, 7%)= 1owers .erry Road, N.!., Atlanta =, ;eorgia, published a $$>9page mimeographed book entitled -he -ruth About the .oreign 1olicy Association (available directly from the 1ost at H$.)) per copy). (n the .oreword to this book, the Americanism 2ommittee saysQ "/ow can we account for our apathetic acceptance of the presence of this arch9murderer (Chrushchev, during his tour of the +nited 'tates at 4isenhower*s invitation) in AmericaP !hat has so dulled our sense of moral values that we could look on without revulsion while he was being wined and dined by our officialsP /ow could we dismiss with indifference the shameful spectacle of these officials posing for pictures with this grinning Russian assassinLpictures which we knew he would use to prove to communism*s enslaved populations that the Americans are no longer their friends, but the friends of ChrushchevP "-here is only one e5planation for this lapse from the Americanism of former daysQ we are being brainwashed into the belief that we can safely do business with
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communismLbrainwashed by an interlocked group of so9 called *educational* organiFations offering *do9it9yourself* courses which pretend to instruct the public in the intricacies of foreign policy, but which actually mask clever propaganda operations designed to sell *co9 e5istence* to Americans. -here are many of these propaganda outfits working to undermine Americans* faith in America, but none, in our opinion, is as slick or as smooth or as dangerous as the .oreign 1olicy Association of Russian9born Eera #icheles ean.... "-his documented handbook has been prepared in response to numerous re8uests for duplicates of the file which formed the basis of the case (before the .ulton 2ounty ;rand 0uries) against the .oreign 1olicy Association. !e hope that it will assist patriots everywhere in resisting the un9American propaganda of the Red 2hina appeasers, the pro9'oviet apologists, the relativists, and other dangerous propagandists who are weakening Americans* sense of honor and their will to survive." -he -ruth About -he .oreign 1olicy Association sets out the communist front record of Eera #icheles Research ean (who was irector of the .1A until shortly after the <egion 1ost
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made this e5posure, when she resigned amidst almost9tearful words of praise and farewell on the part of .1A9!A2 officials). -he <egion 1ost booklet sets out the communist front records of various other persons connected with the .1A6 it presents and analyFes several publications of the .1A, including materials used in the ;reat ecisions program6 it reveals that .1A establishesrespectability and public acceptance for itself by publiciFing "endorsements" of prominent Americans6 it shows that many of the .1A*s claims of endorsements are false6 it shows the interlocking connections and close working relationships between the .oreign 1olicy Association and other organiFations, particularly the National 2ouncil of 2hurches6 and it presents a great deal of general documentation on .1A*s activities, operations, and connections. -he .oreign 1olicy Association was organiFed in $%$: and incorporated under the laws of New Jork in $%>: (the 2ouncil on .oreign Relations was organiFed in $%$% and incorporated in $%>$). Rockefeller and 2arnegie money was responsible for both .1A and 2.R becoming powerful organiFations. -he late +. '. 2ongressman <ouis -. #c.adden (1ennsylvania), as early as $%7K, said that the .oreign 1olicy Association, working in close conGunction with a comparable ,ritish group, was formed, largely under the aegis of .eli5 .rankfurter and 1aul !arburg, to
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promote a "planned" or socialist economy in the +nited 'tates, and to integrate the American system into a worldwide socialist system. !arburg and .rankfurter (early 2.R members) were among the many influential persons who worked closely with 2olonel 4dward #. /ouse, father of the 2ouncil on .oreign Relations.
.rom its early days, the .oreign 1olicy Association had interlocking personnel, and worked in close co9operation with the (nstitute of 1acific Relations, which was formed in $%>= as a ta59 e5empt educational organiFation, and which was financed by the great foundationsLand by the same groups of businessmen and corporations which have always financed the 2.R and the .1A. -he (1R played a more important role than any other American organiFation in shaping public opinion and influencing official American policy with regard to Asia. .or more than twenty years, the (1R influenced directly or indirectly the selection of .ar 4astern scholars for important teaching posts in colleges and universitiesLand the selection of officials for posts concerning Asia in the 'tate epartment. -he (1R publications were standard materials in most American colleges, in thirteen hundred public school systems, and in the armed forces6 and millions of (1R publications were distributed to
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all these institutions. Along toward the end of !orld !ar ((, there were rumblings that the powerful (1R might be a communist front, despite its respectable faVadeLdespite the fact that a great maGority of its members were Americans whose patriotism and integrity were beyond 8uestion.
(n $%=$, the 'enate (nternal 'ecurity 'ubcommittee, under the chairmanship of the late 1at #c2arran ( emocrat, Nevada) began an investigation which lasted many months and became the most important, careful, and productive investigation ever conducted by a committee of 2ongress. -he #c2arran investigation of the (1R was predicated on the assumption that +nited 'tates diplomacy had never suffered a more disastrous defeat than in its failure to avert the communist con8uest of 2hina. -he communist con8uest of 2hina led to the Corean war6 and the tragic mishandling of this war on the part of !ashington and +nited Nations officialdom destroyed American prestige throughout Asia, and built 2hinese communist military power into a menacing colossus. -he 'enate investigation revealed that the American policy
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decisions which produced these disastrous conse8uences were made by (1R officials who were traitors, or under the influence of traitors, whose allegiance lay in #oscow. 3wen <attimore, guiding light of the (1R during its most important years (and also a member of the 2ouncil on .oreign Relations), was termed a conscious articulate instrument of the 'oviet international conspiracy. Alger /iss (a 2.R member who was later identified as a 'oviet spy) was closely tied in with the (1R during his long and influential career in government service. /iss became a trustee of the (1R after his resignation from the 'tate epartment. -he secret information which /iss delivered to a 'oviet spy ring in the $%7)*s kept the 'oviets apprised of American activity in the .ar 4ast. <auchlin 2urrie (also a member of the 2.R) was an administrative assistant to 1resident Roosevelt. /arry the -reasury e5ter !hite virtually ran epartment under both Roosevelt and -ruman. ,oth
2urrie and !hite had strong connections with the (1R6 and both were 'oviet spiesLwho not only channeled important American secrets to 'oviet military intelligence, but also influenced and formulated American policies to suit the 'oviets. ,y the time the #c2arran investigation ended, the whole nation knew that the (1R was, as the #c2arran committee had characteriFed it, a transmission belt for 'oviet propaganda in the
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+nited 'tates. -he (1R, thoroughly discredited, had lost its power and influence6 but its work was carried on, without any perceptible decline in effectiveness, by the .oreign 1olicy Association.
-he .1A did this Gob through its 2ouncils on !orld Affairs, which had been set up in key cities throughout the +nited 'tates. -hese councils are all "anti9communist." -hey include among their members the business, financial, social, cultural, and educational leaders of the community. -heir announced purpose is to help citiFens become better informed on international affairs and foreign policy. -o this end, they arrange public discussion groups, forums, seminars in connection with local schools and colleges, radio9television programs, and lecture series. -hey distribute a mammoth 8uantity of e5pensively produced materialLto schools, civic clubs, discussion groups, and so on, at little or no cost. -he 2ouncils bring world9renowned speakers to their community. /ence, 2ouncil events generally make headlines and get wide coverage on radio and television. -he .oreign 1olicy Associations* 2ouncils on !orld Affairs, through the parent organiFation, through the 2ouncil on .oreign Relations, and through a multitude of other channels, have close working relationships with the 'tate
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epartment. /ence, many of the distinguished speakers whom the 2ouncils present are handpicked by the 'tate e5pense. -o avert criticism (or to provide themselves with ammunition against criticism when it arises) that they are nothing but internationalist propaganda agencies, the 2ouncils on !orld Affairs distribute a little literature which, and present a few speakers who, give the general appearance of being against the internationalist program of one9world socialism. ,ut their anti9 internationalism presentations are generally give milk9and9water persuasive middle9of9the9roadism which is virtually meaningless. #ost 2ouncils9on9!orld9Affairs internationalist propaganda. -hus, the .oreign 1olicy Association, through its 2ouncils on !orld AffairsLand another affiliated activity, the ;reat ecisions programLhas managed to enroll some "conservative" community leadership into an effective propaganda effort for one9world socialism. -he !orld Affairs 2enter was set up with national head8uarters at 7K= 4ast K&th 'treet in New Jork 2ity, as a formal affiliate of the .oreign 1olicy Association, to handle the important Gob of directing presentations epartment6 and they travel (sometimes from distant foreign lands) at +nited 'tates ta5payers*
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the various "independent" 2ouncils on !orld Affairs, located in maGor cities throughout the nation. (n #arch, $%&), the .1A merged with the !orld Affairs 2enter to form one organiFationQ the .oreign 1olicy Association9!orld Affairs 2enter.
-he .1A9!A2 describes its ;reat annual nation9wide review, by
ecisions program as an groups under local
local
sponsorship, of problems affecting +nited 'tates .oreign 1olicy. .1A9!A2 provides .act 'heet Cits, which contain reading material for these local discussion groups. -hese kits present what .1A calls a "common fund of information" for all participants. -hey also provide an "opinion" ballot which permits each participant, at the end of the ;reat ecisions discussion program, to register his viewpoint and send it to officials in !ashington. -he old (1R line (fostering American policies which helped communists take over 2hina) was that the 2hinese communists were not communists at all but democratic "agrarian reformers" whom the 2hinese people loved and respected, and whom the 2hinese people were going to install as the rulers of new 2hina, regardless of what America did6 and that, therefore, it was in our best interest to be friendly with these "agrarian reformers" so that 2hina would remain a friendly power once the "reformers" took over.
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A maGor obGective of the .1A9!A2Lsince it fell heir to the work of the (1RLis to foster American diplomatic recognition of red 2hina. -he .1A9!A2, and its subordinate 2ouncils on !orld Affairs, do this propaganda Gob most cleverly. #ost .1A spokesmen (e5cept a few like 2yrus 4aton, who is a darling of the .1A and occasionally writes for its publications) are "anti9communists" who admit that the 2hinese communists are real communists. -hey admit that it is not pleasant (in the wake of our memories of Corea) to think of e5tending diplomatic recognition to red 2hina6 and they do not always openly advocate such a move6 but their literature and ;reat ecisions operations and other activities all subtly inculcate the idea that, however much we may dislike the 2hinese communists, it is highly probable that we can best promote American interests by "eventually" recogniFing red 2hina. (n this connection, the .1A9!A2 ;reat was "'hould +. '. eal !ith Red 2hinaP" ecisions program for iscussion of this topic
$%=I was especially interesting. 3ne 8uestion posed that year was divided into four corollary 8uestionsQ!hy -wo 2hinasP !hat are Red 2hina*s goalsP oes Red 2hina threaten *uncommitted* AsiaP Red 2hina*s recordLwhat +. '. 1olicyP -he .1A9!A2 .act 'heet Cit, which sets out background information for the "study" and "voting" on the red 2hina 8uestion, contains nothing that would remind Americans of 2hinese
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communist atrocities against our men in Corea or in any way make Americans really angry at the communists. (n the discussion of the "two 2hinas," the communists sound somewhat more attractive than the nationalists. (n the discussion of red 2hina*s "goals," there is nothing about the communist goal of enslaving all Asia6 there are simply statistics showing how much more progress red 2hina has made than "democratic" (ndiaLwith less outside help than "democratic" (ndia has received from the +nited 'tates. (n the discussion of whether red 2hina threatens the rest of Asia, the .1A9!A2 material makes no inference that the reds are an evil, aggressive powerLbut it does let the reader know that the reds in 2hina are a mighty military power that we must reckon with, in realistic terms. Nothing is said in the .1A9!A2 .act 'heet Cit about the communist rape of -ibet. Rather, one gets the impression that -ibet is a normal, traditional province of 2hina which has now returned to the homeland. After studying the problems of communist 2hina from this .1A9 !A2 ".act 'heet," ;reat ecisions participants were given an opportunity to cast an "3pinion ,allot" on the four specific 8uestions posed. -he "3pinions" were already written out on the .1A9!A2 ballot. -he voter had only to select the opinion he liked best, and mark it. /ere are the five choices of opinions given voters on the .oreign 1olicy Association*s ;reat ecisions $%=I
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3pinion ,allot, concerning +. '. diplomatic recognition of red 2hina. "a. RecogniFe 1eiping now, because we can deal with .ar 4ast political and other problems more easily if we have diplomatic relations with 1eiping. "b. ;o slow on recogniFing them but agree to further talks and, if progress is made, be willing to grant recognition at some future date. "c. Refuse to recogniFe them under any circumstances. "d. Acknowledge that the 1eiping government is the effective government of 2hina (recognition de facto) and deal with it as much as seems useful, on this basis, but avoid full diplomatic relations for the present. "e. 3ther."
;eneral purposes of the .oreign 1olicy Association9!orld Affairs 2enter are rather well indicated in a fund9raising letter, mailed to American businessmen all over the nation, on .ebruary >7, $%&$. -he letter was on the letterhead of 2onsolidated .oods 2orporation, $7= 'outh <a 'alle 'treet, 2hicago 7, (llinois, and
l555i5
was signed by Nathan 2ummings, 2hairman of the ,oard. /ere is a part of #r. 2ummings* appeal to other businessmen to contribute money to the .1A9!A2Q "(n his inaugural address which ( had the privilege of personally hearing in !ashington, 1resident Cennedy summoned the American people to responsibility in foreign policyQ ... "-his call for individual initiative by the 1resident characteriFes the kind of citiFen responsibility in world affairs which the .oreign 1olicy Association9!orld Affairs 2enter has been energetically trying to build since its founding in $%$:.... "-he .1A9!A2*s national program for informing the American public of the urgent matters of foreign policy such as those mentioned by the 1residentL*the survival and the success of liberty,* *inspection and control of arms,* the forging of *a grand and global alliance* to *assure a more fruitful life for all mankind*Lis making remarkable progress. "-he enclosed *#emorandumQ $%&)9&$* describes the program and past achievement of this K>9year9old
5c
organiFation. 1articularly worthy of mention is their annual *;reat ecisions* program which last year engaged more than a 8uarter of a million Americans in eight weeks of discussion of +. '. foreign policy and reached hundreds of thousands of others with related radio, television and newspaper background programs and articles on these important topics. "3f the basic budget for $%&)9&$ of H$,$K),I)), nearly one9third must be raised from individual and corporate sources to meet minimal operating needs. -he fact that over K)) maGor corporations, some of whom contribute as much as H=,))), already support .1A9!A2 is evidence of the effectiveness and vitality of its educational program.... "( hope that you and your company will Goin ours in generously supporting this work." 4rwin . 2anham, editor of -he 2hristian 'cience #onitor, has
caustically denounced the American <egion 1ost in Atlanta for its "attack" on the .1A. #r. 2anham, in a letter dated April >=, $%&$, accused the American <egion 1ost of making a "completely false" statement when the 1ost contended that #r. 2anham and the #onitor
5ci
advocated the seating of red 2hina in the +N. #r. 2anham saidQ "-his newspaper*s editorial policy has never espoused any such position." ( have in my file a letter which #r. 2anham wrote, April >%, $%&), as editor of -he 2hristian 'cience #onitor, on the #onitor*s letterhead. (n this letter, #r. 2anham saysQ "( believe that the +nited 'tates should open diplomatic relations with communist 2hina." -he interesting thing here is the coincidence of #r. 2anham*s policy with regard to red 2hina, and the policy of the .oreign 1olicy Association9!orld Affairs 2enter. -he ;reat ecisions program for $%=I (discussed above) was
obviously intended to lead Americans to acceptance of +. '. diplomatic recognition of red 2hina. -he same material, however, made it clear that the invisible government was not yet advocating the seating of red 2hina in the +NR o these backstairs formulators and managers of +nited 'tates opinion and governmental policies have more respect for the +N than they have for the +'P 3r, do they fear that bringing red 2hina into the +N (before +. '. recognition) would finish discrediting that already discredited organiFation and cause the American people to demand American withdrawalP
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2hristian 'cientists (through #r. 2anham and the #onitor), 1rotestants (through the National 2ouncil of 2hurches), Muakers (through the American .riends 'ervice 2ommittee), and 0ews (through the American 0ewish 2ommittee, -he Anti9 efamation <eague, and other organiFations) are among the religious groups which have publicly supported activities of the .oreign 1olicy Association. 1owerful 2atholic personalities and publications have endorsed .1A work, too. 3n ecember %, $%=%, -he Right Rev. -imothy .. 3*<eary,
'uperintendent of 2atholic 'chools for the Archdiocese of ,oston, wrote to all 2atholic schools in the district, telling them that he was making plans for their participation with the !orld Affairs 2ouncil and the .oreign 1olicy Association in the ;reat $%&) 1rogram. 3n November >I, $%&), 3ur 'unday Eisitor (largest and perhaps most influential 2atholic newspaper in America) featured an article by .rank .olsom, 2hairman of the 45ecutive 2ommittee of the ,oard of irectors of the Radio 2orporation of America, and a ecisions program. leading 2atholic layman. #r. .olsom was effusive in his praise of the .1A9!A2 ;reat ecisions
-he interlock between the 2ouncil on .oreign Relations and the .oreign 1olicy Association9!orld Affairs 2enter can be seen in
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the list of officers and directors of the .1A9!A2Q 4ustace 'eligman, 2hairman of the .1A9!A2, is a partner in 'ullivan and 2romwell, the law firm of the late 0ohn .oster ulles, a leading 2.R member.
0ohn !. Nason, 1resident of .1A9!A2, is a member of the 2ouncil on .oreign Relations. !alter /. !heeler, 0r., 1resident of 1itney9,owes, (nc., is Eice 2hairman of .1A9!A2, and also a member of the 2.R. ;erald .. ,eal, of the 0. /enry 'chroeder ,anking 2orporation of New Jork, is -reasurer of .1A9!A2, and also a member of the 2ouncil on .oreign Relations. #rs. Andrew ;. 2arey is 'ecretary of .1A9!A2. /er husband is a member of the 2.R. 4mile 4. 'oubry, 45ecutive Eice 1resident and
irector of the 'tandard 3il 2ompany of New 0ersey, is 2hairman of the 45ecutive 2ommittee of .1A9!A2, and also a member of the 2.R. ,enGamin 0. ,uttenwieser, of Cuhn, <oeb, and 2ompany,
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in New Jork, is a member of the 45ecutive 2ommittee of .1A9!A2, and also a member of the 2.R. 0oseph 4. 0ohnson (old friend of Alger /iss, who succeeded /iss as 1resident of the 2arnegie 4ndowment for (nternational 1eace) is a member of the 45ecutive 2ommittee of the .1A9!A2, and also a member of the 2.R. /arold .. <inder, Eice 2hairman of the ;eneral American (nvestors 2ompany, is a member of the 45ecutive 2ommittee of .1A9!A2, and also a member of the 2.R. A. !illiam <oos, 45ecutive irector of the 2hurch 1eace
+nion, is a member of the 45ecutive 2ommittee of the .1A9!A2. #r. <oos attended the 2.R meeting with high communist party officials in the 'oviet +nion in #ay, $%&$. /enry 'iegbert, formerly a partner in the investment banking firm of Adolph <ewisohn A 'ons, is a member of the 45ecutive 2ommittee of the .1A9!A2, and also a member of the 2.R.S1g )=%T
5cv
Chapter 4 C5<<644(( 5R (C5)5<6C D(=(953<()4 3n 0une >), $%&$, -he 'an .rancisco 45aminer published a +nited 1ress (nternational news story with a 0une $%, !ashington, 2ut 1lan." /ere are portions of the articleQ "1resident Cennedy today urged 2ongress and the people to give a close study to a monetary reform proposal which would empower him to cut income ta5es in recession periods. "/e issued the statement after receiving a bulky report from the 2ommission of SsicT #oney and 2redit.... "-he >I9member commission was set up in $%=I by the 2ommittee for 4conomic evelopment (24 ). (ts three9 year study was financed by H$.7 million in grants from the 24 and the .ord and #errill .oundation. "3ne of the key recommendations was to give the 1resident limited power to cut the >) percent ta5 rate on the first H>))) of personal income, if needed to help the . 2. date line, under the headline "0...C. ,acks -a5
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economy.... "-he report also recommended e5tensive changes in the .ederal Reserve 'ystem, set up in $%$7 as the core of the Nation*s banking system...." -his 'an .rancisco 45aminer article is a classic e5ample of propaganda disguised as straight news reporting.
A story about the 1resident supporting a plan for reducing ta5es could not fail to command sympathetic attention. ,ut the truth is that the ta5 reform proposals of the 2ommission on #oney and 2redit would give the 1resident as much power and leeway to raise ta5es as to lower them. (n its >:>9page report, the 2ommission made :I separate proposals. 3ne would permit the 1resident (on his own initiative) to reduce the basic income9ta5 rate (the one that applies to practically every person who has any income at all) from >)N to $=N. (t would also permit the 1resident to raise the basic rate from >)N to >=N. -he idea of giving the 1resident such power is as alien to American political principles as communism itself is. -he proposed "machinery" for granting such 1residential power would
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violate every basic principle of our constitutional system. +nder the 2ommission*s proposal, the 1resident would announce that he was going to increase or decrease ta5es. (f, within si5ty days, 2ongress did not veto the plan, it would become law, effective for si5 months, at which time it would have to be renewed by the same procedure. -hat is very similar to the 'oviet way. (t could not be more foreign to the American way if it had been lifted from the 'oviet constitution. 3ther proposals in the report of the 2ommission on #oney and 2redit, filed on 0une $:, $%&$, after a three9year studyQ $. -he .ederal Reserve Act would be amended to give the 1resident control over the .ederal Reserve 'ystemL which, as set up in $%$7, is supposed to be free of any kind of political control, from the !hite /ouse or elsewhere. >. -he 2ommission recommends elimination of the legal re8uirement that the .ederal Reserve 'ystem maintain a gold reserve as backing for American currency. A bill was introduced in 2ongress (#ay %, $%&$, by +. '. 2ongressman Abraham #ulter, New Jork emocrat) to implement this 2ommission recommendation. -he bill would take away from American citiFens twelve billion dollars in gold which supports their own currency, and
5cviii
enable government to pour this gold out to foreigners, as long as it lasts, leaving Americans with a worthless currency, and at the mercy of foreign governments and bankers (see the an 'moot Report, ";old and -reachery," #ay >>, $%&$). 7. -he banking laws of individual states would be ignored or invalidatedQ banking laws of 77 states prohibit mutual savings banks6 the 2ommission on #oney and 2redit wants a federal law to permit such banks in all states. K. -he 2ommission would circumvent, if not eliminate, state laws governing the insurance industryQ the 2ommission proposes a federal law which would permit insurance companies to obtain federal charters and claim federal, rather than state, regulation. =. -he 2ommission would subGect all private pension funds to federal supervision. &. -he 2ommission would abolish congressional
limitations on the siFe of the national debtLso that the debt could go as high as the 1resident pleased, without any interference from 2ongress.
5ci5
I. -he 2ommission recommends that 2ongress approve all federal public works proGects three years in advance, so that the 1resident could order the proGects when he felt the economy needed stimulation. Remembering how 1resident Cennedy and his administrative officials and congressional leaders used political e5tortion and promises of bribes with public money to force the /ouse of Representatives, in 0anuary, $%&$, to pack the /ouse Rules 2ommittee, imagine how the 1resident could whip 2ongress, and the whole nation, into line if the 1resident had Gust some of the additional, unconstitutional power which the 2ommission on #oney and 2redit wants him to have.
-he obGective of the 2ommission on #oney and 2redit (to finish the conversion of America into a total socialist state, under the dictatorship of whatever "proletarian" happens to be enthroned in the !hite /ouse) can be seen, between the lines, in the 2ommission*s remarks about the "formidable problem" of unemployment. -he 2ommission wants unemployment to drop to the point where the number of Gobless workers will e8ual the number of vacant GobsR And the clear implication is that the federal government must
adopt whatever policies necessary to create this condition. 'uch a condition can e5ist only in a slave systemLlike the socialist system of communist 2hina where, for e5ample, all "farmers" (men, women, and children) enGoy full employment6 under the whips of overseers, on the collective farms of communism. -he 2ommission on #oney and 2redit was created on November >$, $%=I, by the 2ommittee for 4conomic the $%=I Annual Report of the 24 , #r. 2redit. #r. "24 avid saidQ began nine years ago S$%K:T to call attention to the evelopment (24 ). (n onald C. avid, 24
2hairman, gave the history of the 2ommission on #oney and
need for a comprehensive reassessment of our entire system of money and credit. "!hen the last such survey of the economic scene was made by the Aldrich 2ommission in $%$$, we had no central banking system, no guaranteed deposits or guaranteed mortgages. -here were no personal or corporate income ta5es6 no group insurance plans, pension funds, or 'ocial 'ecurity system.... "Although 24 had envisaged a commission created by
government, the inability of government to obtain the consensus re8uired for launching the study became as
ci
apparent as the need for avoiding further delay. 'o, after receiving encouragement from other research institutions, leaders in 2ongress, the Administration, and from various leaders in private life, 24 *s -rustees decided to sponsor the effort, assisted by a grant from -he .ord .oundation...." /ere is the membership of the 24 *s 2ommission on #oney and 2reditQ .raFar ,. !ilde, 2hairman (1resident of 2onnecticut ;eneral <ife (nsurance 2ompany) /ans 2hristian 'onne, Eice92hairman (New Jork6 official in numerous foundations and related organiFations, such as -wentieth 2entury .und6 American9'candanavian .oundation6 National 1lanning Association6 and so on) Adolf A. ,erle, 0r. (New Jork6 ,erle has been in and out of important posts in government for many years6 he is an anti9communist socialist6 he resigned from the 2ommission on #oney and 2redit to accept his present Gob handling <atin American affairs in the 'tate epartment) 0ames ,. ,lack (2hairman of the ,oard of 1acific ;as
cii
and 4lectric 2ompany) #arriner '. 4ccles (2hairman of the ,oard of the .irst 'ecurity 2orporation6 formerly Assistant to the 'ecretary of the -reasury under Roosevelt6 ;overnor of .ederal Reserve ,oard6 and official in numerous international banking organiFations, such as the 45port9(mport ,ank) <amar .leming, 0r. (2hairman of the ,oard of Anderson, 2layton A 2o., /ouston, -e5as) /enry /. .owler (!ashington, .2.6 resigned from the
2ommission on .ebruary 7 to accept appointment from Cennedy as +nder 'ecretary of the -reasury) ;aylord A. .reeman, 0r. (1resident of the .irst National ,ank, 2hicago) 1hilip #. ClutFnick (1ark .orest, (ll., resigned from the 2ommission on .ebruary :, to accept appointment from 1resident Cennedy as +nited 'tates Representative to the +nited Nations 4conomic and 'ocial 2ouncil) .red <aFarus, 0r. (2hairman of the ,oard of .ederated epartment 'tores, (nc.)
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(sador <ubin (1rofessor of 1ublic Affairs at Rutgers +niversity) 0. (rwin #iller (2hairman of the ,oard of 2ummins 4ngine 2ompany) Robert R. Nathan (!ashington, Roosevelt Administration) 4mil Rieve (1resident emeritus of the -e5tile !orkers +nionLA.<92(3) avid Rockefeller (1resident of 2hase #anhattan ,ank) 'tanley /. Ruttenberg (Research irector for A.<92(3) 2harles 'awyer (2incinnati lawyer, prominent in .2.6 has been in and
out of many important government Gobs since the first
emocratic 1arty politics in 3hio) 4arl ,. 'chwulst (1resident of the ,owery 'avings ,ank in New Jork) 2harles ,. 'human (1resident of the American .arm ,ureau .ederation) 0esse !. -app (2hairman of the ,oard, ,ank of
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America) 0ohn 2ameron -homson (former 2hairman of the ,oard of Northwest ,ancorporation, #inneapolis) !illard <. -horp ( irector of the #errill 2enter for 4conomics at Amherst 2ollege) -heodore 3. Jntema (Eice 1resident in 2harge of .inance, .ord #otor 2ompany) !illiam .. 'chnitFler ('ecretary9-reasurer of A.<92(36 resigned from the 2ommission in $%&)) 0oseph #., $%&)) ,eardsley Ruml (well9known and influential new deal economist who held numerous posts with foundations and related organiFations6 is sometimes called the father of the federal withholding ta5 law, enacted during !orld !ar ((6 r. Ruml died before the 2ommission on #oney and 2redit completed its report) .red -. ;reene (1resident of the /ome <oan ,ank of odge (2hairman of the ,oard of etroit
,ank and -rust 2o.6 resigned from the 2ommission in
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(ndianapolis6 died before the 2ommission completed its report) -he director of research for the 2ommission !as Administration. /is assistant was r. ,ertrand
.o5, professor at the /arvard ;raduate 'chool of ,usiness r. 4li 'hapiro, 1rofessor of .inance at the #assachusetts (nstitute of -echnology. 3f the >I persons who served as members of the 2ommission on #oney and 2redit, $7 (!ilde, 'onne, ,erle, .leming, .owler, <ubin, Nathan, Rockefeller, -app, -horp, Jntema, were members of the 2ouncil on .oreign Relations. (n other words, the 2ommission on #oney and 2redit was Gust another ta59e5empt propaganda agency of America*s invisible government, the 2ouncil on .oreign Relations. odge, Ruml)
-he above discussion of the 2ommission on #oney and 2redit, together with the roster of membership, was first published in -he an 'moot Report dated 0uly 7, $%&$. 3n 'eptember >>, $%&$, #r. 2harles ,. 'human, 1resident of the American .arm ,ureau .ederation, wrote me a letter, sayingQ "( was a member of the 2ommission on #oney and 2redit but you will notice that ( filed very strong
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obGections to several of the recommendations which you brought to the attention of your readers. ( do not agree with the 2ommission recommendations to authoriFe the 1resident of the +nited 'tates to vary the rate of income ta5. Neither do ( agree that the gold reserve re8uirement should be abandoned. ( agree with several of your criticisms of the Report but ( cannot agree that *the obGective of the 2ommission on #oney and 2redit (to finish the conversion of America into a total socialist state, under the dictatorship of whatever proletarian happens to be enthroned in the !hite /ouse) can be seen, between the lines, in the 2ommission*s remarks about the formidable problem of unemployment.* "At its worst, it was a compromise of the divergent viewpoint of the conservative and liberal members of the 2ommission." ( will not argue with #r. 'human, an honest and honorable man, about the obGective of the 2ommission6 but ( will reassert the obviousQ recommendations of the 2ommission on #oney and 2redit, if fully implemented, would finish the conversion of America into a total socialist state.
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As pointed out before, the various agencies which interlock with the 2ouncil on .oreign Relations do not have formal affiliation with the 2ouncil, or generally, with each other6 but their effective togetherness is revealed by their unanimity of purposeQ -hey are all working toward the ultimate obGective of creating a one9world socialist system and making America a part of it. -his ambitious scheme was first conceived and put into operation, during the administrations of !oodrow !ilson, by 2olonel 4dward #. /ouse, and by the powerful international bankers whom /ouse influenced. /ouse founded the 2ouncil on .oreign Relations for the purpose of creating (and conditioning the American people to accept) what /ouse called a "positive" foreign policy for AmericaLa policy which would entwine the affairs of America with those of other nations until this nation would be sucked into a world9government arrangement. 2olonel /ouse knew, however, that America could not become a province in a one9world socialist system unless America*s economy was first socialiFed. 2onse8uently, /ouse laid the groundwork for "positive" domestic policies of government tooL policies which could gradually place government in control of the nation*s economy until, before the public realiFed what was happening, we would already have a socialist dictatorship.
cviii
-he following passages are from pages $=>9$=I of -he (ntimate 1apers of 2olonel /ouseQ "-he e5tent of 2olonel /ouse*s influence upon the legislative plans of the Administration S!ilson*sT may be gathered from a remarkable document.... (n the autumn of $%$>, immediately after the presidential election Swhen !ilson was elected for his first termT there was published a novel, or political romance, entitled 1hilip Administrator. "(t was the story of a young !est 1oint graduate ... who was caught by the spirit of revolt against the tyranny of privileged interests. A stupid and reactionary government at !ashington provokes armed rebellion, in which ru Goins whole9heartedly and which he ultimately leads to complete success. /e himself becomes a dictator and proceeds by ordinance to remake the mechanism of government, to reform the basic laws that determine the relation of the classes, to remodel the defensive forces of the republic, and to bring about an international grouping or league of powers.... ".ive years after its publication, an enterprising ruQ
bookseller, noting the growing influence of /ouse in the
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!ilson Administration, wrote with regard to the bookQ *As time goes on the interest in it becomes more intense, due to the fact that so many of the ideas e5pressed by 1hilip ruQ Administrator, have become laws of this Republic, and so many of his ideas have been discussed as becoming laws.... (s 2olonel 4. #. /ouse of -e5as the authorP* ... "2olonel /ouse was, in truth, the author.... "*1hilip ru* ... gives us an insight into the main political
and social principles that actuated /ouse in his companionship with 1resident !ilson. -hrough it runs the note of social democracy reminiscent of <ouis ,lanc and the revolutionaries of $:K:.... "-hrough the book also runs the idea that in the +nited 'tates, government is unresponsive to popular desiresLa *negative* government, /ouse calls it.... "-he specific measures enacted by 1hilip by /ouse. "-he Administrator appointed a *board composed of ru as
Administrator of the nation, indicated the reforms desired
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economists ... who ... were instructed to work out a tariff law which would contemplate the abolition of the theory of protection as a governmental policy.* "*-he Administrator further directed the ta5 board to work out a graduated income ta5.... "1hilip ru also provided for the *formulation of a new
banking law, affording a fle5ible currency bottomed largely upon commercial assets.... /e also proposed making corporations share with the government and states a certain part of their earnings.... "*<abor is no longer to be classed as an inert commodity to be bought and sold by the law of supply and demand.* " ru *prepared an old age pension law and also a laborer*s insurance law....* "*/e had incorporated in the .ranchise <aw the right of <abor to have one representative upon the boards of corporations and to share a certain percentage of the earnings above the wages, after a reasonable percent upon the capital had been earned. (n turn, it was to be obligatory upon them (the laborers) not to strike, but to
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submit all grievances to arbitration.*" Need it be pointed out that "<ouis ,lanc and the revolutionaries of $:K:," on whom 2olonel /ouse patterned his plan for remaking America, had a scheme for the world virtually identical with that of Carl #ar5 and .rederick 4nglesLthose socialist revolutionaries who wrote the 2ommunist #anifesto in $:K:P
(n $%$:, .ranklin C. <ane, !oodrow !ilson*s 'ecretary of the (nterior, in a private letter, wrote, concerning the influence of *1hilip ru* on 1resident !ilsonQ "All that book has said should be, comes about.... -he 1resident comes to 1hilip ru, in the end." -he end is a socialist dictatorship of the proletariat, identical with that which now e5ists in the 'oviet +nion. !e have already "come to" a maGor portion of 2olonel /ouse*s program for us. -he unrealiFed portions of the program are now promises in the platforms of both our maGor political parties, they are in the legislative proposals of the Administration in power and of its leaders in 2ongress6 they are the obGectives of the 2ouncil on .oreign Relations, whose members occupy key posts in ;overnment, from the 1residency downward, and who dominate a vast network of influential, ta59e5empt "educational" agencies,
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whose role is to "educate" the 2ongress and the people to accept the total socialist program for America. -he 2ommittee for 4conomic evelopment (which created the
2ommission on #oney and 2redit) is the maGor propaganda arm of the 2ouncil on .oreign Relations, in the important work of socialiFing the American economy.
1aul ;. /offman is the father of 24 . /offman, an influential member of the 2.R, was formerly 1resident of 'tudebaker 2orp.6 former 1resident of .ord .oundation6 /onorary 2hairman of the .und for the Republic6 has held many powerful Gobs in government since the days of Roosevelt6 and is now the 'pecial +nited Nations .und for 4conomic irector of evelopmentL
'+N.4 Lthe +N agency which is giving American ta5 money as economic aid to communist 2astro in 2uba. /offman, in $%7%, conceived the idea of setting up a ta59e5empt "economic committee" which would prepare new economic policies for the nation and then prepare the public and 2ongress to accept them. /offman founded the 2ommittee for 4conomic evelopment in
$%K>. -he organiFation was incorporated in 'eptember of that year, with 1aul ;. /offman as 2hairman. #aGor offices in the 2ommittee for 4conomic evelopment have always been occupied by members of the 2ouncil on .oreign RelationsL
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persons who generally have important positions in many other interlocking organiFations, in the foundations, in the big corporations which finance the great interlock, and"or in government.
/ere are the 2ouncil on .oreign Relations members who Goined 1aul /offman in setting up the 24 in $%K>Q !illiam ,enton (former +.'. 'enator, now 2hairman of the ,oard of 4ncyclopaedia ,ritannica6 former Assistant 'ecretary of 'tate6 -rustee and former Eice 1resident, +niversity of 2hicago) !ill <. 2layton (founder of Anderson, 2layton A 2o., /ouston6 former Assistant 'ecretary of 2ommerce and +nder 'ecretary of 'tate under Roosevelt and -ruman6 4isenhower*s National 'ecurity -raining 2ommissioner) Ralph 4. .landers (former +nited 'tates 'enator) #arion ,. .olsom (4isenhower*s 'ecretary of the epartment of /ealth, 4ducation, and !elfare6 many other positions in the Roosevelt and -ruman Administrations6 ,oard of 3verseers, /arvard)
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4ric A. 0ohnston (former 4isenhower
irector, 4conomic 'tabiliFation former irector and
Agency6 many other positions in the Roosevelt9-ruman9 Administrations6 1resident of +.'. 2hamber of 2ommerce6 now 1resident of the #otion 1icture Association of America) -homas ,. #c2abe (former <end9<ease Administrator6 former 2hairman of the ,oard of ;overnors, .ederal Reserve 'ystem6 1resident of 'cott 1aper 2ompany since $%>I) /arry 'cherman (founder and 2hairman of the ,oard, ,ook of the #onth 2lub, (nc.)
/ere are 2ouncil on .oreign Relations members who were 2hairmen of the 2ommittee for 4conomic evelopment from $%K> through $%=%Q 1aul ;. /offman, $%K>9K: #arion ,. .olsom, $%=)9=7 #eyer Cestnbaum, $%=79== (1resident, /art 'chaffner A #ar56 irector, .und for the Republic6 irector, 2hicago and Northwestern Railroad)
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0.
. Uellerbach, $%==9=I (4isenhower*s Ambassador to irector of 2rown9Uellerbach 2orp.6 irector, .ibreboard
(taly6 1resident and 1roducts, (nc.6 2o.) onald C.
2hairman of the ,oard and
irector, !ells .argo ,ank A +nion -rust
avid, $%=I9=% ( ean, /arvard +niversity6 irectors, R. /. #acy A 2o.,
-rustee of the .ord .oundation, 2arnegie (nstitute, #errill .oundation6 ,oard of ;eneral 4lectric 2orp., .irst National 2ity ,ank of New Jork, Aluminum, <td., .ord #otor 2o.) 3f the 24 ,oard of -rustees listed in the 24 *s $%=I Annual
Report, KI were members of the 2ouncil on .oreign Relations.
-he Research and 1olicy 2ommittee of the 2ommittee for 4conomic evelopment is the select inner9group which actually runs the 24 . (n $%=I, the following members of the Research and 1olicy 2ommittee were also members of the 2ouncil on .oreign RelationsQ .raFar ,. !ilde, 2hairman .rank Altschul (2hairman of the ,oard, ;eneral American (nvestors 2orp.6 Eice 2hairman, National
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1lanning Association6 Eice 1resident, !oodrow !ilson .oundation) 4lliott E. ,ell (former economic adviser to -homas 4. ewey6 former research consultant to !endell !illkie6 now 2hairman of the 45ecutive 2ommittee, #c;raw9/ill 1ublishing 2o., (nc.6 1ublisher and 4ditor of ,usiness !eek6 irector of ,ank of #anhattan 2o., New Jork <ife (nsurance 2o., 2arrier 2orp., -rustee of the 0ohn '. ;uggenheim #emorial .oundation) !illiam ,enton -homas . 2abot (former irector of 3ffice of
(nternational 'ecurity Affairs, 'tate 1resident of ;odfrey <. 2abot, (nc.6
epartment6 now irector of 0ohn
/ancock #utual <ife (nsurance 2o., American #utual <iability (nsurance 2o.6 -rustee, /ampton (nstitute, Radcliff 2ollege6 member of the 2orporation of #assachusetts (nstitute of -echnology) !alker <. 2isler (former member of the Atomic 4nergy 2ommission, 4conomic 2ooperation Administration, #ilitary ;overnment of ;ermany6 now 1resident of etroit94dison 2o., -rustee, 2ornell +niversity)
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4milio ;. 2ollado (former 'tate 0ersey) ;ardner 2owles (former omestic
epartment career
official6 now -reasurer, 'tandard 3il 2ompany of New
irector, 3ffice of !ar
(nformation6 now 1resident,
es #oines Register A
-ribune, 2owles #agaFines, (nc.L<ook, etc.L) onald C. avid
!illiam 2. .oster (former +nder 'ecretary of 2ommerce, eputy 'ecretary of efense6 now 45ecutive Eice 1resident, 3lin #athieson 2hemical 2orp.) 1hilip <. ;raham (former law secretary to 'upreme 2ourt 0ustices 'tanley Reed and .eli5 .rankfurter6 now 1resident and 1ublisher of-he !ashington 1ost and -imes /erald) #eyer Cestnbaum -homas ,. #c2abe on ;. #itchell (2hairman of the ,oard, 'ylvania 4lectric 1roducts, (nc.)
c5viii
Alfred
2.
Neal
(former
official,
3ffice
of
1rice
Administration6 now member of the ,oard of ;overnors, .ederal Reserve ,ank of ,oston6 1resident of 24 ) /oward 2. 1etersen (former council to 2ommittee to raft 'elective 'ervice Regulations6 Assistant 'ecretary of !ar6 now 1resident, 1hiladelphia -rust 2ompany6 -rustee, -emple +niversity) 1hilip . Reed (many positions in the Roosevelt and elegation to irector of
-ruman Administrations6 member, +. '. .inance 2ommittee, ;eneral 4lectric 2o.6 #etropolitan <ife (nsurance 2o.) ,eardsley Ruml /arry 'cherman
+N 2onference at 'an .rancisco, $%K=6 now 2hairman, 2anadian ;eneral 4lectric 2o., ,ankers -rust 2o.,
!ayne 2hatfield -aylor (many government positions including Assistant 'ecretary of -reasury, +nder 'ecretary of 2ommerce6 presently an economic adviser) -heodore 3. Jntema
c5i5
(n its annual report for $%=I, the 2ommittee for 4conomic evelopment boasted of some of its past accomplishments and its future plans. #r. /oward 2. 1etersen, 2hairman of the 24 *s 'ubcommittee on 4conomic evelopment Assistance (and a member of the evelopment <oan .und, which was 2ouncil on .oreign Relations) said that his committee originated the idea of creating the authoriFed by 2ongress in 'ection & of the .oreign Aid ,ill of $%=I, which 4isenhower established by 45ecutive 3rder on ecember $7, $%=I, and which may be the most sinister step ever taken by the internationalist foreign9aid lobby. (n $%=&, when 1resident 4isenhower re8uested an appropriation of HK,:&),))),))) for foreign aid, he asked 2ongress to authoriFe foreign aid commitments for the ne5t ten years. 2ongress refused the ten9year plan. (n $%=I, the internationalists* ideal of a permanent authoriFation for foreign aid was wrapped up in the evelopment <oan .und scheme. 3nly a few 2ongressmen raised any 8uestion about it. ,elow are passages taken from the 2ongressional Record of 0uly $=, $%=I, the day the evelopment <oan .und was discussed in the /ouse. 2ongressman A. '. 0. 2arnahan ( emocrat, #issouri) floor
c55
manager for the .oreign Aid ,ill, rose to e5plain 'ection &, which established the evelopment <oan .und, sayingQ "-he +nited 'tates, in order to provide effective assistance Sto all underdeveloped countries of the worldT ... must have available a substantial fund upon which it can draw. -he fund must be large enough so that all of the underdeveloped nations of the free world will feel that they will have an opportunity to participate in it. "!e cannot wisely say that we should make a small amount available the first year and see how things work out. (f we are able to offer assistance only to the select few, we will inevitably antagoniFe many other countries whose future friendship and cooperation will be important to us ... in addition to an initial authoriFation of an appropriation of H=)) million, the bill includes authoriFation for borrowing from the -reasury H=)) million beginning in fiscal $%=%, and an additional H=)) million beginning in fiscal $%&)." -hus, 2ongressman 2arnahan, arguing for foreign aid, outlined some of the absurd fallacies of foreign aidQ namely, if we give foreign aid at all, we must provide enough so that every foreign
c55i
government in the world will always be able to get all it wants. !e can e5ercise no choice in whom we give or lend our money to. (f we give only "to the select few" we offend all others. 2ongressman /. R. ;ross (Republican, (owa) asked a 8uestionQ "!hat interest rate will be charged upon the loans that are to be madeP" 2ongressman 2arnahanQ "-he legislation does not designate the interest rate." #r. ;rossQ "!hat will be the length of the loan to be madeP" #r. 2arnahanQ "-he legislation does not designate the length of the loans. -he rules for the loans, which will determine the interest rates, the length of time the loans will run, the siFe of the installment repayments, and other administrative details, will be taken care of by the 45ecutive epartment." 2ongressman 0ohn <. 1ilcher ( emocrat, ;eorgia) made the point that the manager of the evelopment <oan .und, appointed by the 1resident, could lend money toQ
c55ii
"any foreign government or foreign government agency, to any corporation, any individual or any group of persons." 2ongressman 2arnahanQ "-hat is correct." 2ongressman 1ilcherQ "(n other words, it would be possible for an individual to borrow H$ million or H= million to set up some business in some foreign country, if the manager so agreed6 is that correctP" 2ongressman 2arnahanQ "(f they met the criteria set up for loans." 2ongressman 1ilcherQ "-he manager ... has the authority to collect or compromise any obligation in this fund. (n other words, he can make a loan this month and if he so desires he can turn around and compromise it or cancel it ne5t month which is a straight out grant in the disguise of a soft9loan program." 2ongressman 1orter /ardy, 0r. ( emocrat, Eirginia) saidQ
c55iii
"-he manager of the .und has almost unlimited authority to do anything he pleases." 2ongressman ,arratt 3*/ara ( emocrat, (llinois), trying to 8uiet fears that this bill was granting unlimited, uncontrollable power to some appointed manager, said that the blank9check grant of authority was not really being made to the fund manager at all. -he power was being given to the 1resident of the +nited 'tates, and the manager would merely "perform such functions with respect to this title as the 1resident may direct." 2ongressman ;ross saidQ "-hat is more power than any 1resident should ask for or want the responsibility for." 2ongressman <eon /. ;avin (Republican, 1ennsylvania) pointed out that we already have = or & lending agencies in this fieldQ -he (nternational 2o9operation Administration6 the 45port9(mport ,ank6 the (nternational ,ank6 the (nternational #onetary .und6 the (nternational evelopment 2orporation6 and the !orld ,ank. !hy, then, do we need this new one, the evelopment <oan .undP 2ongressman !alter /. 0udd (Republican, #innesota) had already answered that 8uestion, e5plaining that loans from other agencies. evelopment <oan .und money would go to foreigners who could not 8ualify for
c55iv
2ongressman ;ross said that all foreign nations which will borrow from this .und could get all the American private capital they need if they had political systems which made lending to them sensible or feasible. (n short, the evelopment <oan .und (which the 2ommittee for
4conomic evelopment boasts paternity of) is a scheme for giving American ta5 money to foreigners who have proven themselves such poor credit risks that they cannot obtain loans even from other governmental and +N agenciesLand who will use the money to line their own pockets and to build socialistic enterprises which will eliminate possibilities of freedom in their own land, and will compete in world markets with American enterprise.
(n its $%=I annual report, the 24 its Area
also boasted about the work of (who were also
evelopment 2ommittee. At that time, the two leading
members of this particular committee of the 24 #arcus, 1resident of Neiman9#arcus 2o., in r. ,eardsley Ruml, widely known
members of the 2ouncil on .oreign Relations) were #r. 'tanley allas6 and the late eal socialist New
"economist." #r. 0ervis 0. ,abb, 2hairman of the 24 *s Area evelopment 2ommittee (1resident of <ever ,rothers 2ompany) saidQ
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"-he new area development program, approved by the -rustees Sof 24 T at their #ay S$%=IT meeting in 2hicago is underway.... Already, close relationships have been established with organiFations, both public and private, that are conducting research and administering programs relating to area development.... ".ive of 24 *s 2ollege92ommunity Research 2enters ... have been selected as a starting point of 24 *s area development pilot proGects. -he five centers areQ ,oston, +tica, Alabama, Arkansas, and 3klahoma." -he 24 *s Area evelopment work has brought 24 personnel
into close cooperation with the collection of ta59e5empt "municipal planning" organiFations housed in a Rockefeller9financed center at $7$7 4ast &)th 'treet, 2hicago, which has become national head8uarters for the production and placement of e5pertsLwho fabricate "progressive" legislation for government at all levels6 who rewrite our "archaic" state constitutions6 and who take over as city managers, or county managers, or metropolitan managers, or regional managers whenever people in any locality have progressed to the point of accepting government by imported e5perts as a substitute for government by elected local citiFens. (n other words, through the Area evelopment activities of the
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2ommittee for 4conomic powerful drive for
evelopment, the invisible government ;overnment. #etropolitan
of AmericaLthe 2ouncil on .oreign RelationsLhas a hand in the #etropolitan ;overnment, as conceived by socialist planners, would destroy the whole fabric of government and social organiFation in the +nited 'tates.
#etropolitan ;overnment would eliminate the individual states as meaningful political entities, would divide the nation into metropolitan regions sprawling across state lines, and would place the management of these regional governments in the hands of appointed e5perts answerable not to local citiFens but to the supreme political power in !ashington. (.or detailed discussion, see -he "#etropolitan an 'moot Report, April $7 and >), $%=%, 3ne," and "#etropolitan ;overnmentL1art
;overnmentL1art -wo.") -hrough the Area 4conomic evelopment activities of the 2ommittee for
evelopment, the 2ouncil on .oreign Relations has
supported the +rban Renewal program. +rban Renewal with federal ta5 money was authoriFed in the National /ousing Act of $%K%, and enlarged in scope by amendments to the /ousing Acts of $%=K, $%=&, and $%=I6 but it did not become a vigorously promoted nationwide program until
c55vii
late $%=I, after the 2ouncil on .oreign Relations (through the 24 ) started pushing it.
+rban Renewal is a federally financed program of city planning which re8uires city governments to seiFe homes and other private property from some citiFens and re9sell them, at below cost, to real estate promoters and other private citiFens for developments that the city planners consider desirable. +nder the ancient, but awesome, right of eminent domain, city governments do not have the power to take private real estate from one citiFen for the profit of another citiFen. ,ut in November, $%=K, the 'upreme 2ourt in an urban renewal case, said that 2ongress and state legislature can do anything they like to the private property of private citiFens as long as they claim they are doing it for public good. .ederal urban renewal has opened rich veins of public money for graft, corruption, and political vote buying6 and it is destroying private property rights under the prete5t that clearing slums will eliminate the causes of crime. #oreover, urban renewal authoriFes the seiFure not Gust of slum property, but of all private property in a whole section of a city, for resale to private interests which promise to build something that governmental planners will like.
c55viii
.ederal urban renewalLsince the 2ouncil on .oreign Relation*s 24 started supporting itLhas become a national movement with an 'moot Report, 'eptember >%, $%=:, frightful implications and dangers. (.or detailed discussion of urban renewal, see -he and 3ctober &, $%=:.)
(n its $%=I Annual Report, the 2ommittee for 4conomic evelopment gave details on its educational work in public schools and colleges. -his work was, at that time, carried on primarily by the 24 *s ,usiness94ducation 2ommittee, and by two subsidiary operations which that 2ommittee createdQ the 2ollege92ommunity Research 2enters and the 0oint 2ouncil on 4conomic 4ducation. .rom the $%=I Annual Report of the 2ommittee for 4conomic evelopmentQ
"24 *s efforts to promote and improve economic education in the schools are of special appeal to those who are concerned ... both with education and the progress of the free enterprise system. -he ,usiness9 4ducation program and the numerous 2ollege9 2ommunity Research 2enters it has sponsored, together with the use of 24 represent an publications as teaching materials, contribution to economic important
education on the college level.
c55i5
"(n the primary and secondary schools, the introduction of economics into teaching programs is moving forward steadily, thanks largely to the 0oint 2ouncil on 4conomic 4ducation which 24 to support.... "-he ,usiness94ducation 2ommittee continued in $%=I its work with the 2ollege92ommunity Research 2enters and with the 0oint 2ouncil on 4conomic 4ducation. "-he 0oint 2ouncil*s program to improve the teaching of economics in the public schools is now operating in 7% states, and the >= college9community research centers active last year brought to more than 7))) the number of business and academic men who have worked together on economic research proGects of local and regional importance.... "(n its work, the committee S,usiness94ducation helped to establish and continues
2ommitteeT is finding especially valuable the e5perience gained through the operation of the 2ollege92ommunity Research 2enters. -hese centers are financed partly by 24 , partly by the .und for Adult 4ducation Sa .ord .oundation operationT and partly by locally9raised funds....
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"-he 0oint 2ouncil Son 4conomic 4ducationT is making e5cellent progress in training teachers and incorporating economics education in all grade levels of public school systems. (n addition to its national service programs, the 2ouncil has developed strong local or state councils which not only help guide its work but last year raised more than H=)),))) to finance local proGects. "24 helped to establish and works closely with this
independent organiFation S0oint 2ouncil on 4conomic 4ducationT which is now conducting four maGor types of activities. "$. 'ummer !orkshops for -eachers. -hese working sessions, sponsored by colleges and universities, provide three weeks training in economics and develop ways to incorporate economics into the school curriculum. 3ver $%,))) persons have participated since the program began. ">. 2ooperating 'chool 1rogram. -wenty school systems are working with the 0oint 2ouncil Son 4conomic 4ducationT to demonstrate how economics can be incorporated into the present curriculum....
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"7.
2ollege
1rogram.
.ew
students
maGoring
in
education now take economics courses6 therefore, >) leading institutions are working with the 0oint 2ouncil Son 4conomic 4ducationT to develop better training in economics for prospective teachers.... "K. /igh 'chool92ommunity 1roGects. -he 0oint 2ouncil Son 4conomic 4ducationT is helping to conduct demonstration programs which show how students can use community resources to improve their economics education. .or e5ample, the !hittier, 2alifornia school system conducted a si59week program to help high school seniors understand the kind of economy in which they would live and work. -hey Goined in research studies on regional economic problems being carried on by the 'outhern 2alifornia 2ollege92ommunity research center...." -he 2ommittee for 4conomic evelopment claims that its
educational work in economics is dedicated to progress of free enterprise6 and many of its programs in schools and colleges are educational6 but its subtle and relentless emphasis is on the governmental interventionism that is the essence of New9 ealism, .air9 ealism, #odern9Republicanism, and New9.rontierismLthe governmental interventionism prescribed long ago as the way to
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socialiFe the economy of America in preparation for integrating this nation into a worldwide socialist system.
1aul /offman*s 24
has come a long way since $%K>. (n $%=I,
the 24 *s 2ollege92ommunity Research 2enters had "1roGects in 1rogress" in 77 institutions of higher learningQ ,ates 2ollege, ,oston 2ollege, ,oston +niversity, ,owdoin 2ollege, ,rown +niversity, 2olby 2ollege, artmouth 2ollege, 4mory +niversity, /arvard ;raduate 'chool of ,usiness Administration, (owa 'tate 2ollege, <ewis A 2lark 2ollege, #c;ill +niversity, Northeastern +niversity, Northwestern +niversity, 3ccidental 2ollege, 1omona 2ollege, Reed 2ollege, Rutgers +niversity, 'outhern #ethodist +niversity, -ulane +niversity, +niversity of Alabama, +niversity of Arkansas, +niversity of (owa, +niversity of #aine, +niversity of #ichigan, +niversity of #innesota, +niversity of North 2arolina, +niversity of 3klahoma, +niversity of 1ennsylvania, +niversity of !ashington, +niversity of !isconsin, +tica 2ollege of 'yracuse +niversity, and !ashington +niversity.
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(n $%=I, the following institutions of higher learning were participating in the 24 *s 0oint 2ouncil on 4conomic 4ducation "2ollege 1rogram" prospective teachersQ ,righam Joung +niversity, ;eorge 1eabody 2ollege for -eachers, (ndiana +niversity, #ontclair 'tate -eachers 2ollege, New Jork +niversity, 3hio 'tate +niversity, 3klahoma A A # 2ollege, 1ennsylvania 'tate +niversity, 1urdue +niversity, 'yracuse +niversity, -eachers 2ollege of 2olumbia +niversity, +niversity of 2olorado, +niversity of 2onnecticut, +niversity of (llinois, +niversity of (owa, +niversity of #innesota, +niversity of 'outhern 2alifornia, +niversity of -ennessee, +niversity of -e5as, +niversity of !ashington. to develop training in economics for
(n $%=I, the following >) school systems were working in the 24 *s 0oint 2ouncil on 4conomic 4ducation "2ooperating 'chool 1rogram," to demonstrate how economics can be incorporated in the school curriculum, beginning in the first gradeQ Akron, 3hio6 Albion, (llinois6 2hattanooga, -ennessee6 2olton, 2alifornia6 ayton, 3hio6 .ort odge, (owa6 /artford, 2onnecticut6 CalamaFoo, #ichigan6 <e5ington,
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Alabama6 #inneapolis, #innesota6 New Jork 2ity, New Jork6 1ortland, 3regon6 1rovidence, Rhode (sland6 Ridgewood, New 0ersey6 'eattle, !ashington6 'yracuse, New Jork6 +niversity 2ity, #issouri6 !ebster ;roves, #issouri6 !est /artford, 2onnecticut6 !hittier, 2alifornia. As indicated, the ,usiness94ducation 2ommittee of the 24 reaching into public schools, colleges, and is
the select group which supervises this vast "educational" effort communities throughout the nationQ 0ames <. Allen, 'enior 1artner of ,ooF, Allen A /amilton6 0ervis 0. ,abb, 2hairman of the ,oard of <ever ,rothers, 2ompany6 'arah ;. ,landing, 1resident of Eassar 2ollege6 !. /arold ,renton, 1resident of ,renton ,rothers, (nc.6 0ames .. ,rownlee, former government official who is 2hairman of the ,oard of the #inute #aid 2orporation, and a director of many other large corporations, such as American 'ugar Refining 2o., ,ank of #anhattan, ;illette 'afety RaFor, R. /. #acy 2o., 1illsbury #ills, American 45press6 4verett Needham 2ase, 1resident of 2olgate +niversity6 0ames ,. 2onant, former 1resident of /arvard and Ambassador to ;ermany6 0ohn -. 2onnor, 1resident of #erck A 2o.6 0ohn '. ickey, 1resident of artmouth 2ollege6 0ohn #.
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.o5, 1resident of #inute #aid 2orporation61aul '. ;erot, 1resident of 1illsbury #ills6 'tanley #arcus, 1resident of Neiman9#arcus6 !. A. 1atterson, 1resident of +nited Air <ines6#orris ,. 1endleton, 1resident of 1endleton -ool (ndustries6 !alter Rothschild, 2hairman of the ,oard of Abraham A 'traus6 -homas 0. !atson, 0r., 1resident of (nternational ,usiness #achines 2orporation6 0. 2ameron -homson, 2hairman of the ,oard of Northwest ,ancorporation. Note that three of these 24 membersL2onant, ,usiness94ducation 2ommittee
ickey, and #arcusLare influential members of
the 2ouncil on .oreign Relations and have many connections with the big foundations financing the great 2.R interlock.
(n addition to the educational work which it discusses in its $%=I Annual Report, the 2ommittee for 4conomic evelopment utiliFes many other means to inGect its (and the 2.R*s) economic philosophies into community thought9streams throughout the nation. /ere, for e5ample, are passages from a news story in -he #orning News, 0une 7), $%=7Q " allas businessmen and 'outhern #ethodist +niversity allas
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officials #onday S0une >%T launched a H>=,))) business research proGect financed through agencies of the .ord .oundation. "'tanley #arcus of allas, a national trustee of .ord evelopment,
.oundation*s 2ommittee for 4conomic
said the proGect would go on two or three years under foundation funds. After that ... the 2ity might foot the bill.... "-he '#+ proGectLalong with several others like it throughout the nationLis designed to foster study in regional and local business problems, #arcus commented. "/ere*s how the allas proGect will workQ "A business e5ecutive committee, composed of some of allas* top businessmen, will be selected. -hese men then will select a group of younger e5ecutives for a business e5ecutive research committee. -his will be the working group, #arcus e5plained.... "At '#+, several of the schools* chief officials will act as a senior faculty committee.... Acting as co9ordinator for
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the proGect will be !arren A. <aw ... who soon will get his doctorate in economics from /arvard +niversity." -he "e5perimental" stage of this ,usiness 45ecutives Research 2ommittee lasted five years in allas. uring that time, the allas6 and a most researchers filed two maGor reportsQ an innocuous one in $%== concerning traffic and transit problems in for significant one in $%=&, strongly urging metropolitan government allas 2ounty, patterned after the metro system in -oronto, 2anada.
(n 3ctober, $%=:,
r.
onald C.
avid, then 2hairman of the
2ommittee for 4conomic Relations) went to
evelopment and Eice 2hairman of the
.ord .oundation (and also a member of the 2ouncil on .oreign allas to speak to the 2itiFens 2ouncil, an allas business e5ecutives, organiFation composed of leading
whose president that year was 'tanley #arcus. r. avid told the business men that they should give greater
support and leadership to the government*s foreign aid program6 and, of course, he urged vast e5pansion of foreign aid, particularly to "underdeveloped nations." -hat was the signal and the build9up. -he ne5t monthLNovember, $%=:Lthe e5perimental ,usiness 45ecutives Research
c555viii
2ommittee, which the 24
had formed in $%=7 and which had allas, was converted into "-he
already completed its mission with its report and recommendation on metropolitan government for allas 24 Associates." /ere is a news story about that event, taken from the November $$, $%=:, "A allas #orning NewsQ allas 2ommittee for 4conomic evelopmentLthe
first of its kind in the nationLhas been founded at 'outhern #ethodist +niversity. (t will give voice to 'outhwestern opinionsLand knowledgeLon economic, matters or international importance. Ceystone will be an economic research center to be established soon at '#+. "A steering group composed of allas and 'outhwestern
business, industrial and educational leaders laid the groundwork for both committee and center in a weekend meeting at '#+." -he "steering group" included ;eorge #c;hee and Neil #allon. #r. #c;hee (presently Assistant 'ecretary of 'tate for 1olicy 1lanning) is, and has been for many years, a member of the 2ouncil on .oreign Relations. Neil #allon, then 2hairman of the ,oard of resser (ndustries and
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a former official of the .oreign 1olicy Association, founded the allas 2ouncil on !orld Affairs in $%=$. .oreign Relations. (n the group with #r. #c;hee and #r. #allon were five '#+ officials, a allas banker, a real estate man, and 'tanley #arcus, allas evelopment. the head man in the "steering group" which set up the Associates of the 2ommittee for 4conomic -he first literary product of the resser (ndustries is one of the big corporations which contribute money to the 2ouncil on
allas Associates of the 24 Lat
least, the first to come to my attentionLis a most e5pensive9 looking $K9page printed booklet entitled "-he Role of 1rivate 4nterprise in the 4conomic statement of -he evelopment of +nderdeveloped Nations." -he title page reveals that this pamphlet is a policy allas Associates of 24 . (t is little more than a r. onald C. avid had made to the rewrite of the speech which
allas 2itiFens 2ouncil in November, $%=:, urging business to give support and leadership to the government*s foreign aid programs.S1g ):%T Chapter 5 B8%6)(%% AD=6%5R7 C58)C69 !hereas the .oreign 1olicy Association9!orld Affairs 2enter is primarily interested in fostering the foreign policy desired by the
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2.R, and the 2ommittee for 4conomic
evelopment is primarily
interested in formulating economic and other policies which, through governmental controls, will lead us into total socialismL another, smaller (but, in some ways, more powerful) organiFation has (or, until mid9$%&$, had) the primary responsibility of infiltrating governmentQ of selecting men whom the 2.R wants in particular Gobs, and of formulating, inside the agencies of government, policies which the 2.R wants. -his small but mighty organiFation was the ,usiness Advisory 2ouncil. aniel 2. Roper, .. . Roosevelt*s 'ecretary of 2ommerce,
formed the ,usiness Advisory 2ouncil on 0une >&, $%77. Roper set it up as a panel of big businessmen to act as unofficial advisers to 1resident Roosevelt. /e was disappointed in it, however. -he biggest businessmen in America did, indeed, Goin6 but they did not support the total New eal as Roper had e5pected they would when he made them "advisers." Roper, however, was a figurehead. -he brains behind the formation of the ,usiness Advisory 2ouncil were in the head of 'idney 0. !einberg, 'enior 1artner of the New Jork investment house of ;oldman, 'achs A 2o.Land also on the boards of directors of about thirty of the biggest corporations in America. !einberg helped organiFe the ,A2. /e recruited most of its key members. /e was content to let America*s big businessmen ripen
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for a while in the sunshine of the New support. 'ecretary of 2ommerce
eal*s "new" philosophy of
government, before e5pecting them to give that philosophy full
aniel 2. Roper pouted and ignored the
,usiness Advisory 2ouncil when he discovered that the big businessmen, enrolled as governmental "advisors," tried to advise things that governmental leaders did not like. ,ut 'idney !einberg was shrewd, and had a definite, long9range plan for the ,usiness Advisory 2ouncil. /e held the ,A2 together as a kind of social club, keeping the big business men under constant e5posure to the "new" economic philosophies of the New eal, waiting for the propitious moment to enlist America*s leading capitalists on the side of the socialist revolutionaries, determined to destroy capitalism and create a one9world socialist society.
-he right time came in $%7%, when !orld !ar (( started in 4urope and Roosevelt developed his incurable ambition to get in that war and become 1resident of the !orld. 1lans for America*s frenFied spending on national defense began in $%7%. !ith mammoth government contracts in the offing, !einberg had no trouble converting the ,usiness Advisory 2ouncil of leading businessmen into an agency for helping governmental leaders plan the policies for war and for the post9war period.
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(n 'eptember, $%&), /arper*s #agaFine published an article by /obart Rowen, entitled "America*s #ost 1owerful 1rivate 2lub," with a sub9title, "/ow a semi9social organiFation of the very biggest businessmenLdiscreetly shielded from public scrutinyLis *advising* the government on its top policy decisions." /ere are passages from the articleQ "-he ,usiness Advisory 2ouncil meets regularly with government officials si5 times a year.... 3n two of these si5 occasions ... the ,A2 convenes its sessions at plush resorts, and with a half9doFen or more important !ashington officials and their wives as its guests, it indulges in a three9day *work and play* meeting.... "-he guest list is always impressiveQ on occasion, there have been more 2abinet officers at a ... ,A2 meeting than were left in the 2apital.... "-hese meetings cost the ,A2 anywhere from H&,))) to H$>,))) or more, paid out of the dues of members ... which have been Gudged ta59deductible by the (nternal Revenue 'ervice.... "After the $%=> election, the ,A2 was having its fall
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*work and play* meeting at the 2loister, Gust off the ;eorgia coast and a short distance from Augusta, where (ke was alternating golf with planning his first9term 2abinet. S'idneyT !einberg and S;eneral <ucius .T 2lay Smembers of the ,A2 e5ecutive committeeT ... hustled ... to Augusta, conferred with (ke Sa *close, intimate, personal friend* of both menT.... "-he result was historicQ (ke tapped three of the ,A2 leaders ... for his 2abinet. -hey were 2harles 4. !ilson of ;eneral #otors as efense 'ecretary6 S;eorge #.T /umphrey, then boss of the #. A. /anna 2o., as -reasury 'ecretary6 and Robert -. 'tevens of the 0. 1. 'tevens A 2o., as Army 'ecretary.... "Afterwards, S'ecretaryT /umphrey himself dipped into the ,A2 pool for #arion .olsom of 4astman Codak as +nder 'ecretary of the -reasury Slater 'ecretary of /ealth, 4ducation, and !elfareT.... "#embership in the 2ouncil gives a select few the chance to bring their views to bear on key government people, in a most pleasant, convivial, and private atmosphere....
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"-he ,A2, powerful in its composition and with an inside track, is thus a special force. An intimation of its influence can be gleaned from its role in the #c2arthy case.... ,A2 helped push 'enator 0oe #c2arthy over the brink in $%=K, by supplying a bit of backbone to the 4isenhower Administration at the right time. #c2arthy*s chief target in the Army9#c2arthy hearings was the aforementioned Robert -. 'tevensLa big wheel in the ,A2 who had become 'ecretary of the Army. -he ,A2 didn*t pay muchLif anyLattention to 0oe #c2arthy as a social menace until he started to pick on ,ob 'tevens. -hen, they burned up. " uring the #ay $%=K meeting at the /omestead Se5pensive resort hotel in /ot 'prings, Eirginia, where the ,A2 often holds its *work and play* sessions with high government officials and their wivesT, 'tevens flew down from !ashington for a weekend reprieve from his televised torture. A special delegation of ,A2 officials made it a point to Gourney from the hotel to the mountaintop airport to greet 'tevens. /e was escorted into the lobby like a con8uering hero. -hen, publicly, one member of the ,A2 after another for its roasted the 4isenhower Administration #c2arthy9
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appeasement policy. -he ,A2*s attitude gave the Administration some courage, and shortly thereafter former 'enator Ralph .landers (a Republican and ,A2 member) introduced a 'enate resolution calling for censure."
Active membership in the ,usiness Advisory 2ouncil is limited to about I). After a few years as an "active," a member can become a "graduate," still retaining his full voting and membership privileges. ( have obtained the names of $>) "active" and "graduate" members of the ,A2, listed below. -hose who are members of the 2ouncil on .oreign Relations are identified by "2.R" after their names. !inthrop !. Aldrich (2.R) !illiam #. Allen (1resident of ,oeing Airplane 2ompany6 member ,oard of 'eattle) '. 2. Allyn (2.R) Robert ,. Anderson irectors of 1acific National ,ank of
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2larence
Avildsen
(2hairman,
Avildsen
-ools
#achines, (nc.) !illiam #. ,atten (1resident, 0. 2. 1enney 2ompany) '. . ,echtel (2.R)
'. 2lark ,eise (1resident, ,ank of America6 member ,oard of irectors, National -rust and 'avings Association, 'an .rancisco) Roger #. ,lough (2.R) /arold ,oeschenstein (1resident, 3wens92orning irectors of ow, 0ones A
.iberglas 2orporation6 2hairman of the ,oard, .iberglas 2anada, <td.6 member of the ,oard of National 2o.) .red ,ohen (1resident of #eredith 1ublishing 1aper 2ompany, -oledo -rust 2ompany, istillers 1roducts 2orporation, (nternational
2ompanyL,etter /omes and ;ardens, ,etter .arming6 member of ,oard of 2entral <ife irectors of #eredith Radio A 'ociety, Allis92halmers -elevision 'tations, (owa, Northwest ,ancorporation, Assurance #anufacturing 2o., Northwestern ,ell -elephone 2o.,
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(owa9 es #oines National ,ank) 4rnest R. ,reech (45ecutive Eice 1resident, .ord #otor, 2ompany6 member of ,oard of irectors of -ranscontinental A !estern Air, (nc., 1an9American Airways6 1resident of !estern Air 45press) ;eorge R. ,rown (2hairman of the ,oard, -e5as 4astern -ransmission 2orp.6 45ecutive Eice 1resident, ,rown A Root, (nc. of /ouston6 1resident of ,oard of -rustees, Rice +niversity) 2arter <. ,urgess (2.R) 1aul 2. 2abot (1resident of 'tate 'treet (nvestment 2orp.6 partner in 'tate 'treet Research A #anagement 2o.6 member of the ,oard of irectors of 0. 1. #organ A airy 1roducts 2o., 2ontinental 2an 2o., (nc., National -reasurer of /arvard +niversity) 0ames E. 2armichael (1resident, 'cripto, (nc.6 member of ,oard of 2o.) irectors of <ockheed Aircraft 2orp., -rust 2ompany of ;eorgia, Atlanta -ransit 2o., -he 'outhern
2orp., -ampa 4lectric 2o., -he ,. .. ;oodrich 2o.6
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!alker <. 2isler (2.R) ;eneral <ucius . 2lay (2.R) !ill <. 2layton (2.R) 0ohn <. 2ollyer (2.R) Ralph 0. 2ordiner (2hairman of the ,oard and 1resident of ;eneral 4lectric 2o.) 0ohn 4. 2orette (1resident of #ontana 1ower 2o.) 0ohn 2owles (2.R) 2. R. 2o5 (2.R) /arlow /. 2urtice (retired 1resident of ;eneral #otors 2orp.6 2hairman of the ,oard of irectors of the National ,ank of 2harles 4. aniel (head of irectors of ;enesee etroit) aniel 2onstruction 2o., #erchants ,ank A -rust 2o.6 member of the ,oard of
member of ,oard of
irectors of .irst National ,ank of
;reenville, 'outh 2arolina, <a .rance (ndustries, 0. 1. 'tevens 2o., (nc., -e5tron, (nc.6 -rustee of 2lemson 2ollege)
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onald C. 1aul #.
avid (2.R) avies (1resident and 2hairman of the ,oard of
.ood #achinery A 2hemical 2orp.6 member of ,oard of irectors of American -rust 2ompany of 2alifornia, National istillers 1roducts 2orp., 2aterpillar -ractor irector of 2o.6 1rofessor at 'tanford +niversity6
'tanford Research (nstitute, 'an 0ose 'tate 2ollege, 1acific 'chool of Religion6 -rustee of 2ommittee for 4conomic evelopment) .rank R. enton (Eice 2hairman and irector of #ellon
National ,ank and -rust 2ompany, 1ittsburgh6 member of the ,oard of 2orporation, irectors of 'windell9 ressler 2orp., (nc., National +nion .ire !estinghouse 4lectric 2o., 0ones A <aughlin 'teel 1ullman, (nsurance 2o., 'hamrock 3il A ;as 2orp., #. !. Cellogg 2o., 1ullman 'tandard 2ar #anufacturing 2o., -railmobile, (nc., National +nion (ndemnity 2o.6 -rustee of 1ennsylvania 'tate +niversity, Cansas +niversity 4ndowment Association) 2harles of . ickey (Eice 1resident, member of the ,oard
irectors, and 2hairman of the 45ecutive 2ommittee
of #organ ;uaranty -rust 2o.6 member of the ,oard of
cl
irectors
of
;eneral
4lectric
2o.,
,eaver
2oal,
Cennekott 2opper 2orp., ,raden 2opper 2o., #erck A 2o., (nc., 1anhandle 4astern 1ipeline 2o., New Jork <ife (nsurance 2o., 2hurch <ife (nsurance 2orp., 2hurch .ire (nsurance 2orp.) .rederick ;. onner (2.R)
!illiam J. 4lliott (2.R) Ralph 4. .landers (2.R) #arion ,. .olsom (2.R) /enry .ord (( (1resident of .ord #otor 2o.6 2hairman of the ,oard of American /eritage .oundation) !illiam 2. .oster (2.R) ;. Ceith .unston (1resident of New Jork 'tock 45change6 member of the ,oard of irectors of #etropolitan <ife (nsurance 2o.6 -rustee of -rinity 2ollege of 2onnecticut, Eirginia -heological 'eminary, 'amuel /. Cress .oundation) .rederick E. ;eier (2.R)
cli
4lisha ;ray (( (1resident and irector of !hirlpool 2orp.) 2rawford /. ;reenewalt (1resident and 2ompany6 member of the ,oard of 2arnegie (nstitute, !ashington) ;eneral Alfred #. ;ruenther (2.R) 0oseph ,. /all (1resident of Croger 2ompany, irectors of irector of 4. (. irectors of
du 1ont de Nemours 2ompany, 2hristiana 'ecurities #assachusetts (nstitute of -echnology6 -rustee of the
#anufacturers and #erchants (ndemnity 2o., 'elective (nsurance 2o.6 member of the ,oard of Robert A. 2line, (nc., AE23 #anufacturing 2orp., 2incinnati and 'uburban ,ell -elephone 2o., ;eneral 'tores 2orp.6 member of the ,oard of the .ederal Reserve ,ank of 2leveland) !. Averill /arriman (21R) !illiam A. /ewitt (1resident and member of the ,oard of irectors of eere A 2ompany)
#ilton 1. /iggins (2.R) 1aul ;. /offman (2.R)
clii
4ugene /olman (2.R) 0ohn /olmes (1resident, member of the ,oard of irectors, and retired 2hairman of 'wift A 2ompany6 member of the ,oard of 2orporation) /erbert /oover, 0r. (2.R) 1reston /otchkis (Eice 2hairman of the ,oard of irectors ,oard of and -reasurer of .ounders* (nsurance 2ompany6 45ecutive Eice 1resident and member of the irectors of .red /. ,i5by Ranch 2ompany6 irectors of #etropolitan 2oach member of the ,oard of irectors of 2ontinental (llinois National ,ank and -rust 2ompany, ;eneral 4lectric
<ines, 1acific #utual <ife (nsurance 2o., 1acific -elephone A -elegraph 2o., ,lue iamond 2orp.) Amory /oughton (2.R) -heodore E. /ouser (retired 2hairman of the ,oard of 'ears, Roebuck A 2o.6 member of the ,oard of 3ats 2o., irectors of 'ears, Roebuck A 2o., ,ell and /owell 2o., Muaker #assachusetts (nstitute of -echnology6 -rustee of Northwestern +niversity, !illiams 2ollege)
cliii
A. !. /ughes (2hairman of the ,oard of 1enney 2o.)
irectors, 0. 2.
;ilbert !. /umphrey (1resident of #. A. /anna 2ompany, /anna #ining 2ompany6 2hairman of the ,oard of /ausand 'team 'hip 2ompany6 member of the ,oard of irectors of (ndustrial Rayon 2orp., ;eneral 4lectric 2orp., National 2ity ,ank of 2leveland, -e5aco, (nc.6 -rustee of 2ommittee for 4conomic evelopment) 4ric A. 0ohnston (2.R) Alfred !. 0ones (2hairman of the ,oard of 'ea (sland 2ompany, -albott 2orp.6 member of the ,oard of irectors of 'eaboard 2onstruction 2o., ,runswick 1aper A 1ulp 2o., -he #ead 2orp., -hompson (ndustries, (nc., .irst National ,ank of Atlanta, ;eorgia 1ower 2o., .lorida9;eorgia -E 2o.) evereu5 2. 0osephs (2.R) 4rnest CanFler (retired 2hairman of the ,oard of +niversal 2.(.-. 2redit 2orp,6 member of the ,oard of irectors of 2.(.-. .inancial 2orp., ,endi5 Aviation 2orp.) .rederick Cappel (1resident and irector of American
cliv
-elephone A -elegraph 2ompany6 retired 1resident of !estern 4lectric 2o.6 member of the ,oard of 2o.) 0ohn R. Cimberly (2.R) 4. /. <ane (2hairman of the ,oard of <ane 2ompany, (nc.) 0oseph <. <anier (2hairman of the ,oard of !ellington 'ears 2ompany6 1resident of !est 1oint #anufacturing 2ompany of ;eorgia6 member of the ,oard of Rivington 2arpets, <td. of ,ritain) ,arry <. <eithead (1resident and irector of 2luett, irectors of 2abin 2rafts, (nc., .irst National ,ank of Atlanta, irectors of 2hase #anhattan ,ank, #etropolitan <ife (nsurance
1eabody and 2ompany, (nc.6 2hairman of 2luett, 1eabody and 2ompany of 2anada, <td.6 member of the ,oard of irectors of ,. .. ;oodrich 2ompany)
Augustus 2. <ong (2hairman of the ,oard of -e5aco, (nc.6 member of the ,oard of irectors of .reeport 'ulphur 2o., 48uitable <ife Assurance 'ociety of the +nited 'tates, .ederal Reserve ,ank of New Jork)
clv
onold ,. <ourie (1resident and
irector of Muaker 3ats irectors of Northern
2ompany6 member of the ,oard of of 1rinceton +niversity)
-rust 2o., (nternational 1aper 2o., 1ure 3il 2o.6 -rustee
;eorge /. <ove (2hairman of the ,oard of 1ittsburgh9 2onsolidation 2oal 2ompany, #. A. /anna 2ompany6 member of the ,oard of irectors of +nion 2arbide A 2arbon 2orp., #ellon National ,ank A -rust 2ompany of 1ittsburgh, 1ullman 2o., ;eneral 4lectric 2o., National 'teel 2orp., /anna #ining 2o.6 -rustee of 1rinceton +niversity, +niversity of 1ittsburgh) 0ames 'pencer <ove (2hairman of the ,oard of ,urlington #ills 2orp.6 2hairman and 1resident of ,urlington (ndustries, (nc.6 -rustee of +niversity of North 2arolina, avidson 2ollege) irector of
;eorge 1. #acNichol, 0r. (1resident and ,oard of
<ibbey93wens9.ord ;lass 2ompany6 member of the irectors of !yandotte 2hemical 2o., .ederal Reserve ,ank of 2leveland) Roswell .. #agill (member of 2ravath, 'waine A #oore, <awyers6 -rustee of #utual <ife (nsurance 2ompany of
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New Jork, #acy .oundation, ;uggenheim .oundation) eane !. #alott (1resident, 2ornell +niversity6 member of the ,oard of irectors of 1itney9,owes, (nc., ,. .. ;oodrich 2o., ;eneral #ills, (nc., 3wens92orning .iberglas 2orp.6 former Eice 1resident of /awaiian 1ineapple 2o.6 1rofessor of ,usiness at /arvard, 2hancellor of +niversity of Cansas) 0ames !. #cAfee (1resident of +nion 4lectric 2ompany of #issouri, 4dison 4lectric (nstitute6 member of the ,oard of irectors of 't. <ouis +nion -rust 2o., American 2entral (nsurance 2o., North American 2o.) '. #aurice #cAshan (1resident, Anderson, 2layton A 2ompany) -homas ,. #c2abe (2.R) 0ohn <. #c2affrey (retired 2hairman of (nternational /arvester 2o.6 member of the ,oard of irectors of /arris -rust A 'avings ,ank of 2hicago, American -elephone A -elegraph 2o., 2orn 1roducts 2o., #idwest 'tock 45change6 -rustee of the +niversity of 2hicago, +niversity of Notre ame, 4isenhower 45change
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.ellowships, (nc.) <eonard .. #c2ollum (2.R) 2harles 1. #c2ormick (2hairman of the ,oard and retired 1resident of #c2ormick A 2o., (nc.6 member of the ,oard of irectors of #assachusetts #utual <ife (nsurance 2o., 48uitable -rust 2o. of ,altimore, Advertising 2ouncil6 2hairman of the ,oard of Regents, +niversity of #aryland) Neil /. #c4lroy (2hairman of the ,oard, 1rocter A ;amble 2o.6 'ecretary of efense $%=I9$%&$)
4arl #. #c;owin (Eice 1resident of !. -. 'mith <umber 2o.6 member of the ,oard of irectors of -he 'outhern 2ompany of New Jork, Alabama 1ower 2o.) 0ames /. #c;raw, 0r. (2.R) 1aul ,. #cCee (2hairman of 1acific 1ower A <ight 2o.) 0ohn 1. #c!illiams (retired 1resident and 2hairman of the ,oard of Joungstown 'teel ,oard of oor 2o.6 member of the irectors of National 2ity ,ank of 2leveland,
4aton #anufacturing 2o., ;oodyear -ire A Rubber 2o.,
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+nion 2arbide A 2arbon 2orp.) ;eorge ;. #ontgomery (2hairman of Cern 2ounty <and 2o.6 member of the ,oard of irectors of American -rust 2o., ,ankers -rust 2o., 2astle A 2ook, <td., ;eneral 4lectric 2o., #atson Navigation 2o., #atson Assurance 2o., 3ceanic 'team 'hip 2o., 1acific <umber 2o.) 2harles ;. #ortimer (2hairman and retired 1resident of ;eneral .oods 2orp.6 member of the ,oard of 'eminary) !illiam ,. #urphy (1resident of 2ampbell 'oup 2o.6 member of the ,oard of irectors of #erck A 2o.) irectors of National 2ity ,ank of New Jork, +nion -heological
Aksel Nielsen (1resident of -itle ;uaranty 2o., #ortgage (nvestments 2o.6 member of the ,oard of <andon Abstract 2o., 4mpire irectors of 2. A <oan A. Norgren 2o., +nited American <ife (nsurance 2o., 'avings Association, +nited Airlines) -homas .. 1atton (1resident and 'teel 2orp., +nion irector of Republic
rawn 'teel 2o.6 member of the
cli5
,oard of
irectors of Air9Eue 1roducts 2orp., #aria
<uisa 3re 2o., ,erger #anufacturing 2ompany of #assachusetts, (ron 3re 2ompany of 2anada, <iberia #ining 2o., <td., <iberian Navigation 2orp., +nion 2ommerce ,ank, -ankore 2orp., 'tandard 3il 2ompany of 3hio6 -rustee of 3hio 'tate +niversity) 2harles /. 1ercy (1resident and /owell 2o.6 member of the ,oard of #anhattan ,ank, /arris -rust A irector of ,ell A irectors of 2hase 'avings ,ank,
,urroughs 2orp., .und for Adult 4ducation of the .ord .oundation6 -rustee, +niversity of 2hicago) -heodore '. 1etersen (1resident and irector of
'tandard 3il of 2alifornia6 member of the ,oard of irectors of 1acific #utual (nsurance 2o.6 -rustee of 2ommittee on 4conomic evelopment6 consulting 1rofessor, 'tanford +niversity) ;wilym A. 1rice (2hairman and 1resident of
!estinghouse 4lectric 2orp.6 member of the ,oard of irectors of #ellon National ,ank A -rust 2ompany of 1ittsburgh, 4astman9Codak 2o., 2arnegie 2orp., National +nion .ire (nsurance 2o., ;reat Atlantic A 1acific -ea 2o.6 -rustee of Allegheny 2ollege, -he
cl5
/anover ,ank, 2arnegie (nstitute, 2arnegie (nstitute of -echnology6 2hairman of the ,oard of -rustees, +niversity of 1ittsburgh6 2hairman of 2rusade for .reedom) 4dgar #onsanto Mueeny (2hairman of the ,oard, #onsanto 2hemical 2o.6 member of the ,oard of irectors of American Airlines, +nion 4lectric 2o. of #issouri, 2hemstrand 2orp., 'icedison '.1.A. of (taly, !orld Rehabilitation .und6 -rustee /erbert /oover .oundation) 2larence ,. Randall (2hairman of the ,oard, (nland 'teel 2o.6 member of the ,oard of irectors, ,ell A /owell 2o.6 -rustee, +niversity of 2hicago) 1hilip . Reed (2.R)
Richard '. Reynolds, 0r. (1resident of Reynolds #etals 2o.6 2hairman of the ,oard of Robertshaw9.ulton 2ontrols 2o.6 member of the ,oard of .oil 2o., 2entral National ,ank of Richmond) !infield !. Riefler (2.R) irectors of #anufacturers -rust 2o., ,ritish Aluminum, <td., +. '.
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!illiam 4. Robinson (2hairman of the 2oca92ola 2o.6 member of the ,oard of irectors of #anufacturers -rust irector and 2o.6 2oca92ola 45port 2o., <ibbey93wens9.ord ;lass 2o., -rustee of New Jork +niversity6 former 1ublisher of New Jork /erald9-ribune) onald 0. Russell (1resident and irector of 'outhern
1acific 2o.6 -e5as and New 3rleans Railroad 2o.6 2hairman of the ,oard of 't. <ouis9'outhwestern Railroad6 irector of 'tanford Research (nstitute6 -rustee of 'tanford +niversity) 'tuart -. 'aunders (1resident of Norfolk and !estern Railway6 irector of .irst and #erchants National ,ank of Richmond) ,lackwell 'mith (21R) 2. R. 'mith (1resident, American Airlines) <loyd ,. 'mith (1resident, A. 3. 'mith 2orp.6 2hairman, A. 3. 'mith of -e5as) 0ohn !. 'nyder (45ecutive Eice 1resident, 3verland 2orp.6 'ecretary of -reasury of the +nited 'tates $%K&9 $%=7)
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0oseph 1. 'pang, 0r. (retired 1resident and 2hairman of ;illette 2o.6 member of the ,oard of irectors of ;illette 2o., 'heraton 2orp. of America, .irst National ,ank of ,oston, +. '. 'teel 2orp., (nternational 1ackers, <td.) A. 4. 'taley, 0r. (2hairman of A. 4. 'taley #anufacturing 2o.6 -rustee, #illikin +niversity) .rank 'tanton (1resident, 2olumbia ,roadcasting
'ystem6 2hairman of 2enter for Advanced 'tudy in ,ehavioral 'ciences6 -rustee of Rand 2orp.6 member of the ,oard of irectors of New Jork <ife (nsurance 2o.)
Robert -. 'tevens (1resident and former 2hairman of the ,oard, 0. 1. 'tevens A 2o.6 member of the ,oard of irectors of ;eneral 4lectric 2o., 3wens92orning .iberglas 2orp.6 -rustee of #utual <ife (nsurance 2o. of New Jork6 'ecretary of the Army $%=79$%==) /ardwick 'tires (partner, 'cudder, 'tevens A 2lark (nvestment 2ounsels) <ewis <. 'trauss (2.R) /. ;ardiner 'ymonds (2hairman and 1resident of -ennessee ;as and -ransmission 2ompany of /ouston6
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Eice
2hairman of
of ,ay
1etro9-e5as 1etroleum
2hemical 2orp.,
2orp.6
2hairman
-ennessee9
EeneFuela 'outh America, 2haco 1etroleum of 'outh America, -ennessee de 4cuador, 'outh America, -ennessee9Argentina, #idwest ;as -ransmission 2o.6 member of the ,oard of irectors of ;eneral -elephone A 4lectronics 2orp., 2arrier 2orp., .ood #achinery A 2hemical 2orp., National ,ank of 2ommerce of /ouston, 'outhern 1acific 2o., Advertising 2ouncil6 -rustee of 2ommittee for 4conomic evelopment6 member of the ,usiness 'chool, 'tanford +niversity) A. -homas -aylor (2hairman of (nternational 1ackers, <td.6 Eice 1resident and member of the ,oard of irector of 'wift A 2ompany6 irectors of !edron 'ilica 2o.)
Reese /. -aylor (2hairman of +nion 3il 2ompany of 2alifornia6 member of the ,oard of irectors of .ederal Reserve ,ank of 'an .rancisco, !estinghouse 4lectric 2orp., 2ollier 2arbon A 2hemical 2orp., #anufacturers -rust 2ompany6 -rustee, +niversity of 'outhern 2alifornia, 2ornell +niversity 2ouncil) 2harles Allen -homas (1resident and member of the ,oard of irectors of #onsanto 2hemical 2o.6 member
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of the ,oard of
irectors of 2hemstrand 2orp., .irst
National ,ank of 't. <ouis, 't. <ouis +nion -rust 2o.6 -rustee of 2arnegie 2orp.6 member of the 2orporation of the #assachusetts (nstitute of -echnology) 0uan -. -rippe (2.R) 'olon ,. -urman (1resident and irector of <ykes
,rothers 'team 'hip 2o., (nc.6 Eice 2hairman of <ykes ,rothers, (nc.6 2hairman of ;ulf and 'outh American 'team 'hip 2o.) 0ohn 2. Eirden (2hairman and irector of 4aton irectors of
#anufacturing 2o.6 member of the ,oard of
2leveland 4lectric (lluminating 2o., Joungstown 'teel oor 2o., ;oodyear -ire A Rubber 2o., (nterlake (ron 2orp., iamond Alkali 2o.)
0. 2arlton !ard, 0r. (1resident of Eitro 2orp., American /eavy #inerals 2orp.6 member of the ,oard of irectors of +. '. #anganese 2o.6 -rustee, 2ornell +niversity) 'idney 0. !einberg (partner in ;oldman, 'achs A 2o.6 member of the ,oard of irectors of 2luett, 1eabody A 2o., (nc., 2ontinental 2an 2o., (nc., ;eneral
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2igar 2o., ;eneral 4lectric 2o., ;eneral .oods 2orp., ,. .. ;oodrich 2o., .ord #otor 2o., #cCesson A Robbins, (nc., National airy 1roducts 2orp., 2hampion 1aper A .ibre 2o., Ean Raalte 2o., (nc.6 former ;overnor of New Jork 'tock 45change) !alter /. !heeler, 0r. (2.R) 0ohn /ay !hitney (2.R) <angbourne #. !illiams (2.R) -homas 0. !atson, 0r. (2.R) 3f these $>) ,A2 members, K$ are members of the 2ouncil on .oreign Relations. #ost of those who are not 2.R members have affiliations with foundations or other organiFations that are interlocked with the 2.R. 'idney !einberg, for e5ample (father of the ,A2), is not listed (in any 2ouncil on .oreign Relations Annual Report in my files) as a member of the 2.R6 but he is a member of the board of many corporations which support the 2.R6 and has many close connections with 2.R leaders through foundations and other 2.R subsidiary agencies. All 'ecretaries of 2ommerce since $%77 have served as e59officio
cl5vi
;eneral 2hairman of the ,A2. 3n 0uly $), $%&$, Roger #. ,lough announced that the ,usiness Advisory 2ouncil had changed its name to ,usiness 2ouncil6 had severed its connection with the 2ommerce epartment6 and would in the future give its consultative services to any governmental agency that asked for them. -he ,A2 had been under intense criticism for the e5pensive entertainment it had been giving to governmental officials it advised.
Chapter 6 AD=(R46%6)& C58)C69 -he Advertising 2ouncil, >= !est K=th 'treet, New Jork 7&, N. J. (with offices at >)7 North !abash Avenue, 2hicago6 $>)) $:th 'treet, N. !., !ashington6 K>= ,ush 'treet, 'an .rancisco) serves as a public relations operation to promote selected proGects supported by the 2ouncil on .oreign Relations and its interlocking affiliates. -he Advertising 2ouncil was created in $%K> (then called !ar Advertising 2ouncil) as a ta59e5empt, non9governmental agency to promote wartime programs of governmentQ rationing, salvage, the selling of war bonds, and so on.
cl5vii
-he Advertising 2ouncil*s specific Gob was to effect close cooperation between governmental agencies and business firms using the media of mass communication. A governmental agency would bring a particular proGect (rationing, for e5ample) to the Advertising 2ouncil, for help in "selling" the proGect to the public. -he 2ouncil would enlist the aid of some advertising agency. -he agency (giving its services for nothing, as a contribution to the war effort) would prepare signs, newspaper mats, advertising layouts, broadcasting kits and what not. -he Advertising 2ouncil might then enlist the free services of a public relations firm to get this material into newspapers and magaFines6 get it inserted in the regular ads of business firms6 get it broadcast, free, as public9 service spot announcements by radio networks6 get it inserted into regular commercials on radio broadcasts6 get slogans and art work stamped on the envelopes and business forms of corporations. -he Advertising 2ouncil rendered a valuable service to
advertisers, broadcasting organiFations, and publishers. 4veryone wanted to support proGects that would help the war effort. -he Advertising 2ouncil did the important Gob of screeningLof presenting proGects which were legitimate and urgent. 4ven the advertising agencies and public relations firms, which contributed free services, profited from the arrangement. -hey
cl5viii
earned e5perience and prestige as agencies which had prepared nationally successful campaigns.
-he Advertising 2ouncil continued after the war to perform this same serviceLselecting, for free promotion, proGects that are "importantly in the public interest." (ndeed, the service is more valued in peace time than in war by many advertisers and broadcasting officials who are badgered to support countless causes and campaigns, most of which sound good but some of which may be obGectionable. (nvestigating to screen the good from the bad is a maGor Gob. -he Advertising 2ouncil does this Gob. -he 2ouncil is respected by industry, by the public, and by government. (t is safe to promote a proGect which the Advertising 2ouncil claims to be "importantly in the public interest." -hus, officials of the Advertising 2ouncil have become cFars in a most important field. -hey arbitrarily decide what is, and what is not, in the public interest. !hen the Advertising 2ouncil "accepts" a proGect, the most proficient e5perts in the worldLleading #adison Avenue peopleLgo to work, without charge, to create (and saturate the media of mass communication with) the skillful propaganda that "sells" the proGect to the public. 3fficials of the Advertising 2ouncil are aware of their power as moulders of public opinion. -heodore '. Repplier, head of the
cl5i5
Advertising 2ouncil, was 8uoted in a 0une, $%&$, issue of 'aturday Review, as sayingQ "-here are !ashington officials hired to collect figures on about every known occupation, to worry about the oil and miners under the ground, the rain in the sky, the wildlife in the woods, and the fish in the streamsLbut it is nobody*s Gob to worry about America*s state of mind, or whether Americans misread a situation in a way that could be tragic. "-his is a dangerous vacuum. ,ut it is also a vacuum which e5plains to a considerable degree the important position the Advertising 2ouncil holds in American life today." Note, particularly, that the Advertising 2ouncil is responsible to no one. (f a business firm should decide on its own to include some "public service" proGect in its advertising, and the proGect evoked public indignation, the business firm would lose customers. -he Advertising 2ouncil has no customers to please. Jet, the Advertising 2ouncil is a private agency, beyond the reach of voter and ta5payer indignation which, theoretically, can e5ercise some control over public agencies.
cl55
!ho are these autocrats who have become so powerful that they can condition, if not control, public opinionP -hey are the members of the 1ublic 1olicy 2ommittee of the Advertising 2ouncil. /ere were the $% members of the Advertising 2ouncil*s 2ommittee, on 0une >7, $%=:Q 'arah ;ibson 0. ,landing, ,unche, 1resident +nited of Eassar +nder
2ollege6 Ralph
Nations
'ecretary6 ,enGamin 0. ,uttenwieser, partner in Cuhn, <oeb A 2o.63live 2lapper,publicist64vans 2lark, member of the New Jork -imes editorial board6/elen /all, irector of /enry 'treet 'ettlement6 1aul ;. /offman, 2hairman of this 1ublic 1olicy 2ommittee6 2harles '. 0ones, 1resident of Richfield 3il 2orporation6 <awrence A. Cimpton, 2hancellor of +niversity of 2hicago6 A. 4. <yon, 45ecutive 'ecretary of the Railway <abor 45ecutives Association60ohn 0. #c2loy, 2hairman of the 2hase #anhattan ,ank64ugene #eyer, 2hairman of the !ashington 1ost A -imes9/erald6!illiam (. #yers, ean of Agriculture at 2ornell +niversity64lmo Roper, public opinion analyst6/oward A. Rusk, New Jork +niversity ,ellevue #edical 2enter6,oris 'hishkin, Assistant to the 1resident of A.<92(36;eorge N. 'huster, 1resident of /unter 2ollege6-homas 0. !atson, 0r., 1resident of (nternational ,usiness #achines
cl55i
2orporation6/enry #. !riston, 45ecutive American Assembly.
irector of the
3f these $%, : are members of the 2ouncil on .oreign RelationsL ,unche, ,uttenwieser, /offman, #c2loy, Roper, 'hishkin, 'huster, !riston. -he remaining $$ are mostly "second level" affiliates of the 2.R, or under the thumb of 2.R members in the business world.
'ome Advertising 2ouncil proGects really are "in the public interest." -he "'top Accidents" campaign and the "'mokey ,ear" campaign to prevent forest fires are among several which probably have done much good. -here has never been an Advertising 2ouncil proGect which insinuated anything to remind anyone of the basic American political idea written into our organic documents of governmentL the idea that men are endowed by ;od with inalienable rights6 that the greatest threat to those rights is the government under which men live6 and that government, while necessary to secure the ;od9given blessings of liberty, must be carefully limited in power by an inviolable 2onstitution. ,ut there have been many Advertising 2ouncil proGects which were vehicles for the propaganda of international socialism.
cl55ii
-he Advertising 2ouncil has promoted <aw
ay, which is an
annual occasion for inundating America with "!orld 1eace -hrough !orld <aw" propaganda, designed to prepare the people for giving the !orld 2ourt Gurisdiction over American affairs, as a maGor step toward world government (see -he 'eptember $K, $%=%, "-he !orld 2ourt"). -he Advertising 2ouncil has promoted the "mental health" proGect, which, superficially, appears to be an admirable effort to make the public aware of the truth that we have more mentally ill people than we have facilities forLbut whose underlying, and dubious, purpose is to promote the passage, in all states, of "mental health" laws fabricated by international socialists in the !orld /ealth 3rganiFation and in the +. '. 1ublic /ealth 'ervice. -hese laws, to "facilitate access to hospital care" for mentally ill people, provide no new facilities, prescribe no better treatment, nor do anything else to relieve the suffering of sick people. -he new "mental health" laws, which the Advertising 2ouncil is helping to persuade people in all states to accept, eliminate the constitutional safeguards of a person accused of being mentally ill, thus making it easier for bureaucrats, political enemies and selfish relatives to commit him and get him out of the way. -he Advertising 2ouncil has touted A2-(3NLAmerican 2ouncil to (mprove 3ur Neighborhoods, ,o5 K&>, Radio 2ity 'tation, New an 'moot Report,
cl55iii
Jork >), N. J.Lan organiFation for urban renewal. 3f the && persons on the A2-(3N ,oard of areQ known members of the 2ouncil on .oreign RelationsL such as 1hilip <. ;raham and 'tanley #arcus6 known members of important 2.R affiliatesLsuch as, 'idney !einberg of the ,usiness Advisory 2ouncil6 union bosses like /arry 2. ,ates, ,en .ischer, 0oseph . Ceenan, 0acob '. 1otofsky, !alter Reuther6 bureaucrats in charge of various "/ousing Authorities," including r. Robert !eaver, Cennedy*s present /ousing r. !eaver*s alleged communist front Administrator whose appointment was challenged in the 'enate because of record6 "liberal" politicians dedicated to the total socialist revolutionLsuch as, 0oseph '. 2lark, 0r., +. '. 'enator from 1ennsylvania6 officials of construction and real estate firms which can make mammoth profits on urban renewal proGects and who are also "liberal" in their support of all governmental irectors, a controlling maGority
cl55iv
controls
and
subsidies,
the
tools
for
converting
capitalism into socialismLsuch as, !illiam Ueckendorf6 representatives of organiFations also "liberal" in the sense indicated aboveLsuch as, 1hilip #. ClutFnick of ,*nai ,*rith, and #rs. Cathryn /. 'tone of the <eague of !omen Eoters.
-he Advertising 2ouncil supports +nited Nations propaganda. -he $%=% annual report of the +nited 'tates 2ommittee for the +nited Nations pays special tribute to the "radio9-E campaign, conducted through the cooperation of the Advertising 2ouncil and the National Association of ,roadcasters." /ere are some passages, from this tribute, which show how the Advertising 2ouncil gets one9world socialist propaganda into millions of American homesQ "1erry 2omo read the +N spot personally to his audience of 77,))),)))." "0ack 1aar ... SshowedT a filmed visit to the +N by his daughter, Randy ... following a splendid statement Sby 1aarT. -his I9minute segment of the show reached a minimum of 7),))),))) viewers."
cl55v
"-he campaign received tremendous recognition also on #eet the 1ress, the -oday 'how, ( <ove <ucy, the esilu 1layhouse, and the 0ack ,enny 'how, among many others." ",roadcast kits went out to every radio and television station in the country." A recent accomplishment of the Advertising 2ouncil was its saturation bombing ($%&$) of the American public with propaganda in support of Cennedy*s Jouth 1eace 2orps. Chapter 7
8)64(D )A465)% A)D "5R9D &5=(R)<()4 3R53A&A)DA
All American advocates of supra9national government, or world government, claim their principal motive is to achieve world peace. Jet, these are generally the same Americans whose eager interventionism helped push America into the two world wars of this century. -he propaganda for involving America in the bloodshed and hatreds of 4uropeLin !orld !ar ( and !orld !ar ((Lwas the same as that now being used to push us into world government. (n !orld !ar (, we rushed our soldiers across the wide seas to die in the cause of making the world safe for democracyLof eliminating evil in the world so that there would not be any more warR -his
cl55vi
was precisely what the world9government interventionists wanted us to do. -he so9called American isolationists were not pacifists who recommended refusal to take up arms in defense of their own countryQ most of them were patriots who would have been among the foremost to fight in defense of America. ,eing intelligent citiFens of a peaceful and civiliFed nation, they wanted to keep it that way. -he world9government interventionists used the e5traordinary arguments of a man who, though living in an orderly and law9 abiding neighborhood, says that he must go carousing around in adGoining communities and get involved in every street fight and barroom brawl he can find in order to avoid violenceR 'uch a man not only becomes a party to lawless violence which he claims to deplore, but also creates hatreds and resentments which will ultimately bring to the sane citiFens of his own peaceful neighborhood the evils which they had managed to keep out. -his is what !oodrow !ilson*s intervention in !orld !ar ( did to the +nited 'tates. (t sacrificed the lives of >=),))) American menLnot to mention the hundreds of thousands crippled and otherwise wrecked by war. ,ut this sacrifice of American youth did not make the world safe for anything. (t helped make the world a breeding place for communism, fascism, naFiism, and other varieties of socialism6 and it planted the seeds for a second world
cl55vii
war more destructive than the first. ,ut the world9government interventionistsLwhen their bloody crusade proved worse than a tragic failureLdid not admit error. -hey tried to place all the blame on the isolationists who had tried to keep us from making the ghastly mistake.
(f we had stayed out of !orld !ar (, the 4uropean powers would have arrived, as they have been doing for thousands of years, at some kind of negotiated peace which would have saved not only hundreds of thousands of American lives, but millions of 4uropean lives as well. ,y entering !orld !ar (, we merely converted it into total war, prolonged it, and made it more savage. -he destruction and slaughter of !orld !ar ( created power vacuums and imbalances and economic chaos, which inevitably led to !orld !ar ((. Again, the world9government advocates, who claimed to want peace, insisted that we go to war. -hey also intensified their efforts to entangle America, irretrievably, in political and economic union with 4uropean nations so that there would never again be any possibility of the +nited 'tates staying out of the endless wars and turmoil of the old world. (t is, perhaps, fruitless to 8uestion the motives of people leading
cl55viii
the campaign to push America into world government. All organiFations which have been active in this movementL!orld .ellowship, (nc., .ederal +nion, (nc., Atlantic +nion 2ommittee, +nited !orld .ederalists, and so onLhave had a sprinkling of communist9fronters among their directors and members. ,ut they have also had the official support of many prominent and respected AmericansQ /arry -ruman, 'tevenson, Gustices6 ean Acheson, 0ohn .oster churchmen, wight 4isenhower, 0ohn ulles, 2hristian /erter, financiers, Cennedy, Richard Ni5on, 4stes Cefauver, 0ohn 'parkman, Adlai cabinet officers6 senators and congressmen6 'upreme 2ourt prominent businessmen, entertainers, Gudges, union officials6 newspaper and magaFine editors6 famous columnists and radio9television commentators.
Although the cry of "peace" is the perennial clarion call of all world9government advocates, many of them have, in recent years, added the claim that their recommendations (for converting America into a province of world government) are means of "fighting communism." (ndeed, some of the most vigorous advocates of one9worldism have wide reputations as anti9 communistsL!alter 0udd, a Republican 2ongressman from #innesota, for e5ample. 4ven 2larence 'treit (leader of the now9 defunct .ederal +nion, (nc., and father of that organiFation*s very
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active and influential ta59e5empt successor, Atlantic +nion 2ommittee) has ugly things to say about communism. -he fact is that every step the +nited 'tates takes toward political and economic entanglements with the rest of the world is a step toward realiFation of the end obGective of communismQ creating a one9world socialist political and economic system in which we will be one of the subGugated provinces. ,ecause of the wealth we have created as a free and independent nation, we would be the most heavily ta5ed province in any conceivable supra9national governmentLwhether in a "limited, federal union of the western democracies," which is what the Atlantic +nion 2ommittee people say they want6 or in a total one9world system, which is what all advocates of international union really have as their final goal. ,ecause of our population, however, we would have minority representation in any supra9national government now being planned. Americans would be subGected to laws enacted by an international parliament in which we would have little influence6 ta5ing us, regulating our economic activities, controlling our schools, and dictating our social and cultural relations with each other and with the rest of the world.
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America was founded, populated, and developed by people seeking escape from oppressive governments in 4urope. Now our own leaders ask us to give up the freedom and independence which our forebears won for us with blood and toil and valorous devotion to high ideals, to become subGects in a governmental system that would inevitably be more tyrannical than any which our forefathers rebelled against or any that presently e5ist. (f the world government included the despotic and oligarchic and militaristic, and feudalistic and primitive systems of Asia, the #iddle 4ast, Africa, and <atin America, it would necessarily become the bloodiest and most oppressive tyranny the world has ever known. Nowadays, when two or more nations amalgamate their economic, political, and social systems they necessarily take the lowest common denominator of freedom rather than the highest. (n fact, they must take something lower than the lowestQ the union government will be more restrictive than the government of any of the nations which formed the union. -his will be true of any supra9national government that the +nited 'tates might get intoQ the union will not e5tend American freedom to other nations6 it will e5tend to all nations in the union the most restrictive controls of the most oppressive government which enters the union, and make even those controls worse than they
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were before the union was formedLbecause the American principle of federalism has been discarded by the "liberals" who manage our national affairs6 and American federalism is the only political principle ever to e5ist in the history of the world that can make individual human freedom possible in a federation of states. /ard core American communists know (and some admit) that any move toward American membership in any kind of supra9national government is a move toward the 'oviet obGective of a one9world socialist dictatorship6 but all other American advocates of international union claim their schemes are intended to repeat and e5tend the marvelous achievement of $7 American states which, by forming a political union, created a free and powerful nation. All +nited 'tates advocates of any kind of world government point to the founding of AmericaQ $7 sovereign states, each one proud and nationalistic, all with special interests that were divergent from or in conflict with the interests of the others6 yet, they managed to surrender enough sovereignty to Goin a federal union which gave the united strength of all, while retaining the individuality and freedom of each.
-he $7 American states, in forming a federal union, did not take
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the lowest common denominator of freedom6 they took the highest, and elevated that. -he American principle of federalism (indeed, the whole American constitutional system) grew out of the philosophical doctrine (or, rather, statement of faith) which 0efferson wrote into the eclaration of (ndependenceQ "...all men are ... endowed by their 2reator with certain inalienable rights..." #en get their rights from ;od, not from government. ;overnment, a man9made creature, has nothing e5cept what it takes from ;od9 created men. ;overnment can give the people nothing that it has not first taken away from them. /ence, if man is to remain free, he must have a government which will play a very limited and negative role in his private affairs. -he +nited 'tates is the only nation, ever, whose institutions and organic law were founded on this principle. -he +nited Nations* eclaration of /uman Rights6 the 2onstitution of the 'oviet +nion6 and the written and unwritten constitutions of every other nation in the world are all built on a political principle e5actly opposite in meaning to the basic principle of Americanism. -hat is, the 2onstitution of the 'oviet +nion, and of every +N agency, and of all other nations, specify a large number of rights and privileges
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which citiFens should have, if possible, and whichgovernment will grant them if government can, and if government thinks proper. 2ontrast this with the American 2onstitution and ,ill of Rights which do not contain one statement or inference that the federal government has any responsibility, or power, to grant the people rights, privileges, or benefits of any kind. -he total emphasis in these American documents is on telling the federal government what it cannot do to and for the peopleLon ordering the federal government to stay out of the private affairs of citiFens and to leave their ;od9given rights alone.
-his negative, restricted role of the federal government, and this assumption that ;od and not government is the source of man*s rights and privileges, are clearly stated in the 1reamble to our 2onstitution. -he 1reamble says that this 2onstitution is being ordained and established, not to grant liberties to the people, but to secure the liberties which the people already had (before the government was ever formed) as blessings. -he essence of the American constitutional system, which made freedom in a federal union possible, is clearly stated in the first sentence of the first Article of our 2onstitution and in the last Article (the -enth Amendment) of our ,ill of Rights.
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-he first Article of our 2onstitution begins with the phrase, "All legislative 1owers herein granted...." -hat obviously meant the federal government had no powers which were not granted to it by the 2onstitution. -he -enth Amendment restates the same thing with emphasisQ "-he powers not delegated to the +nited 'tates by the 2onstitution, nor prohibited by it to the 'tates, are reserved to the 'tates respectively, or to the people." 2learly and emphatically, our 2onstitution says that the federal government cannot legally do anything which is not authoriFed by a specific grant of power in the 2onstitution. -his is the one constitutional concept that made the American governmental system different from all others6 it is the one which left our people so free and unmolested by their own government that they converted the backward, American continent into the land of freedom, the most fruitful and powerful nation in history. And this was the constitutional proviso which created the American principle of federalism. -he 2onstitution made no grant, or even inferred a grant, of power to the federal government for meddling, to any e5tent, or for any purpose whatever, in the private cultural, economic, social, educational, religious, or political affairs of individual citiFensLor in the legitimate
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governmental activities of the individual states which became members of the federal union. /ence, states could Goin the federal union without sacrificing the freedom of their citiFens. #odern "liberalism" which has been continuously in control of the federal government (and of most opinion9forming institutions and media throughout our society) since .ranklin . Roosevelt*s first inauguration, #arch K, $%77, has, by ignoring constitutional restraints, changed our.ederal government with limited powers into a 2entral government with limitless power over the individual states and their people. #odern "liberalism" has abandoned American constitutional government and replaced it with democratic centralism, which, in fundamental theory, is identical with the democratic centralism of the 'oviet +nion, and of every other maGor nation e5isting today. (t was possible to enlarge the siFe of the old American federal union without diminishing freedom for the people. !hen you enlarge the land area and population controlled by democratic centralism you must necessarily diminish freedom for the people, because the problems of centraliFed government increase with the siFe of population and area which it controls.
<ook at what has happened to America since our federal
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government was converted into a centraliFed absolutism. -he central government in !ashington arrogated to itself the unconstitutional power and responsibility of regulating the relationships between private employers and their employees, enacting laws which established "collective bargaining" as "national policy," and which, to that end, gave international unions a virtual monopoly over large segments of the labor market. (t follows that a minor labor dispute between two unions on the waterfront of New Jork is no longer a concern only of the people and police in that neighborhood. A handful of union members who have no grievance whatever against their employers but who are in a Gurisdictional struggle with another union, can shut down the greatest railroad systems in the world, throw thousands out of work, and paralyFe vital transportation for business firms and millions of citiFens all over the nation. /arry ,ridges on the !est 2oast can order a political demonstration having nothing to do with "labor" matters, and paralyFe the economy of half the nation. (magine what it will be like if we Goin a world government. -hen a dock strike in <ondon will cripple, not Gust the ,ritish (sles but the whole world. Now, the central government in !ashington sends troops into local communities to enforce, at bayonet point, the illegal edicts of
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a !ashington Gudicial oligarchy concerning the operation of local schools. (f we Goin world government, the edict and the troops will come (depending on what nations are in the international union, of course) from (ndia and 0apan and the 2ongo.
-here was a time when Americans, learning of suffering and want in a distant land, could respond to their 2hristian promptings and native kindliness by making voluntary contributions for relief to their fellow human beings abroad. 3ur central government*s foreign aid programs have already taken much of that freedom away from American citiFensLta5ing them so heavily for what government wants to give away, that private citiFens can*t spend their own money the way they would like to. !hat will it be like if we Goin a world government that embraces the real have9not nations of the earthP -he impoverished subcontinent of (ndia, because of population, would have more representatives in the international parliament than we would have. -hey, with the support of representatives from <atin America and Africa, could easily vote to lay a ta5 on "surplus" incomes for the benefit of all illiterate and hungry people everywhere6 and outvoted Americans would be the only people in the world with incomes high enough to meet the international definition of "surplus."
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!e read with horror of 'oviet slaughter in /ungary when the 'oviets suppress a local rebellion against their partial world9 government. !hat kind of horror would we feel after we Goin a world government and see troops from 4urope and Africa and the #iddle 4ast machinegunning people on the streets of +nited 'tates cities in order to suppress a rebellion of young Americans who somehow heard about the magnificent constitutional system and glorious freedom their fathers used to have and who are trying to make a public demonstration of protest against the international tyranny being imposed upon themP A genuine world government might eliminate the armed conflict (between nations) which we now call war6 but it would cause an endless series of bloody uprisings and bloody suppressions, and would cause more human misery than total war itself.
(n $%7&, the 2ommunist (nternational formally presented its three9 stage plan for achieving world governmentL'tage $Q socialiFe the economies of all nations, particularly the !estern "capitalistic democracies" (most particularly, the +nited 'tates)6 'tage >Q bring about federal unions of various groupings of these socialiFed nations6 'tage 7Q amalgamate all of the federal unions into one world9wide union of socialist states. -he following passage is from the official program of the $%7& 2ommunist (nternationalQ
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"...dictatorship can be established only by a victory of socialism in different countries or groups of countries, after which the proletariat republics would unite on federal lines with those already in e5istence, and this system of federal unions would e5pand ... at length forming the !orld +nion of 'ocialist 'oviet Republics." (n $%7% (three years after this communist program was outlined) 2larence C. 'treit (a Rhodes scholar who was foreign correspondent for -he New Jork -imes, covering <eague of Nations activities from $%>%9$%7%) wrote +nion Now, a book advocating a gradual approach through regional unions to final world unionLan approach identical with that of the communists, e5cept that 'treit did not say his scheme was intended to achieve world dictatorship, and did not characteriFe the end result of his scheme as a "!orld +nion of 'ocialist 'oviet Republics."
(n $%K), 2larence C. 'treit (together with 1ercival .. ,rundage, later a irector of the ,udget for 4isenhower6 and #elvin Ryder, publisher of theArmy -imes) formed .ederal +nion, (nc., to work for the goals outlined in 'treit*s book, +nion Now, published the year before. (n $%K$, 'treit published another bookQ +nion Now !ith ,ritain.
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/e claims that the union he advocated would be a step toward "formation of free world government." ,ut the arguments of his book make it very clear that in Goining a union with other nations, the +nited 'tates would not bring to the union old American constitutional concepts of free9enterprise and individual freedom under limited government, but would rather amalgamate with the socialistic9communistic systems that e5ist in the other nations which became members of the union. -he following passages are from page $%> of 'treit*s +nion Now !ith ,ritainQ " emocrats cannot ... 8uarrel with 'oviet Russia or any other nation because of its economic collectivism, for democracy itself introduced the idea of collective machinery into politics. (t is a profound mistake to identify democracy and +nion necessarily or entirely with either capitalist or socialist society, with either the method of individual or collective enterprise. -here is room for both of these methods in democracy.... " emocracy not only allows mankind to choose freely between capitalism and collectivism, but it includes mar5ist governments, parties and press...." !hen the year $%K$ ended, America was in !orld !ar ((6 and all
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American advocates of world9peace9through9world9law9and9world9 government Gubilantly struck while the iron was hotLusing the hysteria and confusion of the early days of our involvement in the great catastrophe as a means of pushing us into one or another of the schemes for union with other nations. 2larence 'treit states it this way, in his most recent book (.reedom*s .rontier Atlantic +nion Now, $%&$)Q "0apan 1earl /arbored us into the war we had sought to avoid by disunion.... Now, we Americans had the white heat of war to help leaders form the nuclear Atlantic +nion."
3n 0anuary =, $%K> (when we had been at war less than a month), 2larence 'treit*s .ederal +nion, (nc., bought advertising space in maGor newspapers for a petition urging 2ongress to adopt a Goint resolution favoring immediate union of the +nited 'tates with several specified foreign nations. 'uch people as /arold <. (ckes (Roosevelt cabinet officer), 3wen 0. Roberts ('upreme 2ourt 0ustice), and 0ohn .oster ulles (later 4isenhower*s 'ecretary of 'tate) signed this newspaper ad petitioning 2ongress to drag America into world government. (n fact, these notables (especially 0ohn .oster ulles) had actually
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written
the 0oint
Resolution
which
.ederal
+nion
wanted
2ongress to adopt. -he world government resolution (urged upon 2ongress in 0anuary, $%K>) provided among other things that in the federal union of nations to be formed, the "union" government would have the rightQ ($) to impose a common citiFenship6 (>) to ta5 citiFens directly6 (7) to make and enforce all laws6 (K) to coin and borrow money6 (=) to have a monopoly on all armed forces6 and (&) to admit new members. -he following is from a .ederal +nion, (nc., ad published in -he !ashington 4vening 'tar, 0anuary =, $%K>, urging upon the people and 2ongress of America an immediate plunge into world governmentQ "....ResolvedQ "-hat the 1resident of the +nited 'tates submit to 2ongress a program for forming a powerful union of free peoples to win the war, the peace, the future6 "-hat this program unite our people, on the broad lines of our 2onstitution, with the people of 2anada, the +nited Cingdom, 4ire, Australia, New Uealand, and the +nion of 'outh Africa, together with such other free peoples, both in the 3ld !orld and the New as may be
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found ready and able to unite on this federal basis.... "!e gain from the fact that all the 'oviet republics are already united in one government, as are also all the 2hinese9speaking people, once so divided. 'urely, we and they must agree that union now of the democracies wherever possible is e8ually to the general advantage.... "<et us begin now a world +nited 'tates.... "-he surest way to shorten and to win this war is also the surest way to guarantee to ourselves, and our friends and foes, that this war will end in a union of the free. -he surest way to do all this is for us to start that union now."
!orld .ellowship, (nc., was also busy putting pressure on 2ongress in 0anuary, $%K>. !orld .ellowship, (nc., is one of the oldest world government organiFations. (t was founded in $%$: as the "<eague of Neighbors." (n $%>K, the <eague of Neighbors united with the +nion of 4ast and !est (which had been founded in (ndia). (n $%77, this combined organiFation reorganiFed and changed its name to !orld .ellowship of .aiths. (n late $%K$, it changed its name
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again and incorporatedLand has operated since that time as !orld .ellowship, (nc. r. !illard +phaus, a notorious communist9fronter, has been 45ecutive irector of !orld .ellowship, (nc., since .ebruary, $%=7. /ere is a 0oint Resolution which !orld .ellowship, (nc., urged 2ongress to adopt on or before 0anuary 7), $%K>Las a birthday present to 1resident .ranklin . Roosevelt. "Now, therefore, be it "Resolved by the 'enate and /ouse of Representatives of the +nited 'tates of America, in 2ongress assembled, -hat the 2ongress of the +nited 'tates of America does hereby solemnly declare that all peoples of the earth should now be united in a commonwealth of nations to be known as the +nited Nations of the !orld, and to that end it hereby gives to the 1resident of the +nited 'tates of America all the needed authority and powers of every kind and description, without limitations of any kind that are necessary in his sole and absolute discretion to set up and create the .ederation of the !orld, a world peace government under the title of the *+nited Nations of the !orld,* including its constitution and personnel and all other matters needed or appertaining thereto to the end that all nations of the world may by voluntary action
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become a part thereof under the same terms and conditions. "-here is hereby authorised to be appropriated, out of any money in the -reasury not otherwise appropriated, the sum of $)) million dollars or so much thereof as may be necessary, to be e5pended by the 1resident in his sole and absolute discretion, to effectuate the purposes of this Goint resolution, and in addition, the sum of $ billion dollars for the immediate use of the +nited Nations of the !orld under its constitution as set up and created by the 1resident of the +nited 'tates of America as provided in this Goint resolution...." 2ongress reGected the world9government resolutions urged upon it in $%K> by .ederal +nion, (nc., and by !orld .ellowship, (nc.
,ut the formation of the +nited Nations in $%K= was a tremendous step in the direction these two organiFations were travelling. -he "world peace" aspects of the +nited Nations were emphasiFed to enlist support of the American public. .ew Americans noticed that the +N 2harter really creates a worldwide social, cultural, economic, educational, and political allianceLand commits each member nation to a program of total socialism for itself and to the
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support of total socialism for all other nations. -he +nited Nations is, to be sure, a weaker alliance than world government advocates want6 but the +N was the starting point and framework for world government. -he massive +N propaganda during the first few years after the formation of the +N ($%K=) was so effective in brainwashing the American people, that the +nited !orld .ederalists, beginning with the 'tate Assembly of 2alifornia, managed to get >I state legislatures to pass resolutions demanding that 2ongress call a 2onstitutional 2onvention for the purpose of amending our 2onstitution in order to "e5pedite and insure" participation of the +nited 'tates in a world government. !hen the American people found out what was going on, all of these "resolutions" were repealedLmost of them before the end of $%=). ,ut $%K% was a great year for American world government advocates.
3n April K, $%K%,
ean Acheson*s "brainchild," the North Atlantic
-reaty, was ratified by the +nited 'tates. 1resident -ruman signed the proclamation putting NA-3 in force on August >K, $%K%. #ost Americans were happy with this organiFation. (t was supposedly a military alliance to protect the free world against communism. ,ut
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few Americans bothered to read the brief, $K9article treaty. (f they had, Article > would have sounded rather strange and out of place in a military alliance. /ere is Article > of the NA-3 -reatyQ "-he parties will contribute toward the future
development of peaceful and friendly international relations by strengthening their free institutions, by bringing about a better understanding of the principles upon which these institutions are founded, and by promoting conditions of stability and well being. -hey will seek to eliminate conflict in their international economic policies and will encourage economic collaboration between any or all of them." /ere in this "military" treaty, which re9affirms the participants* "faith in the purposes and principles of the 2harter of the +nited Nations," is the legal basis for a union, an Atlantic +nion, a supra9 national government, all under the +nited Nations.
(mmediately upon the formation of NA-3, 2larence C. 'treit created (in $%K%) the Atlantic +nion 2ommittee, (nc. 'trait*s old .ederal +nion was permitted to become virtually defunct (although it technically still e5ists, as publisher of 'treit*s books, and so on). 'treit got federal ta5 e5emption for the Atlantic +nion
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2ommittee by writing into its charter a proviso that the organisation would not "attempt to influence legislation by propaganda or otherwise." Jet, the charter of A+2 states its purposes as followsQ "-o promote support for congressional action re8uesting the 1resident of the +nited 'tates to invite the other democracies which sponsored the North Atlantic -reaty to name delegates, representing their principal political parties, to meet with delegates of the +nited 'tates in a federal convention to e5plore how far their peoples, and the peoples of such other democracies as the convention may invite to send delegates, can apply among them, within the framework of the +nited Nations, the principles of free federal union." An Atlantic +nion 2ommittee Resolution, providing for the calling of an international convention to "e5plore" steps toward a limited world government, was actually introduced in the 2ongress in $%K%Lwith the support of a frightful number of "liberals" then in the 2ongress. -he Resolution did not come to a vote in the :$st 2ongress ($%K%9$%=)). 4stes Cefauver ( emocrat, -ennessee) gravitated to the leadership in pushing for the Resolution in subse8uent
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2ongresses6 and he had the support of the top leadership of both parties, Republican and emocrat, north and southLincluding people like Richard Ni5on, !illiam .ulbright, <ister /ill, /ubert /umphrey, #ike #ansfield, Cenneth Ceating, 0acob 0avits, 2hristian /erter, and so on. .rom $%K% to $%=%, the Atlantic +nion Resolution was introduced in each 2ongressLe5cept the one Republican9controlled 2ongress (:7rdL$%=7).
(n $%=%, Atlantic +nion advocates, having got nowhere in ten years of trying to push their Resolution through 2ongress, changed tactics. (n $%=%, 'treit*s Atlantic +nion 2ommittee published a pamphlet entitled,3ur 3ne ,est /opeL.or +sL.or -he +nited NationsL.or All #ankind, recommending an "action" program to "strengthen the +N." -his "action" program asks the +.'. 2ongress to pass a Resolution calling for an international convention which would accomplish certain "fundamental obGectives," to witQ "-hat only reasonably e5perienced democracies be asked to participate6 and that the number asked to participate should be small enough to enhance the chance for early agreement, yet large enough to create,
cc
if united, a preponderance of power on the side of freedom. "-hat the delegates be officially appointed but that they be uninstructed by their governments so that they shall be free to act in accordance with their own individual consciences. "-hat, whatever the phraseology, it should not be such as to preclude any proposal which, in the wisdom of the convention, is the most practical step. "-hat the findings of the delegates could be only recommendations, later to be accepted or reGected by their legislatures and their fellow citiFens."
-he NA-3 2itiFens 2ommission <aw of $%&) fully carries out the purposes and intent of the new Atlantic +nion strategy fabricated in $%=% to replace the old Resolution which had failed for ten years. -he roll9call vote on this law (published in the .ebruary >I, $%&$, issue of -he an 'moot Report) shows what a powerful array of +nited 'tates 2ongressmen and 'enators are for this step toward
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world government. -he debates in /ouse and 'enate ('enateQ2ongressional Record, 0une $=, $%&), pp. $$I>Kff6 /ouseQ2ongressional Record, August >K, $%&), pp. $&>&$ff) show something even more significant. !hile denying that the NA-3 2itiFens 2ommission <aw had any relation to the old Atlantic +nion Resolution which 2ongress had refused for ten years to consider, "liberals" in both 'enate and /ouse used language right out of the Atlantic +nion 2ommittee pamphlet of $%=% (3ur ,est /ope ...) to "prove" that this NA-3 2itiFens 2ommission proposal was not dangerousQ -hey argued, for e5ample, that 2ommission members would be free to act in accordance with their own individual consciences6 that the meetings of the 2ommission would be purely e5ploratory, and that 2ommission findings would be "only recommendations," not binding on the +.'. government. 2ongressional "liberals" supporting the NA-3 2itiFens
2ommission also tried to establish the respectability of the 2ommission by arguing that it was merely being created to e5plore means of implementing Article > of the NA-3 -reaty. Are these "liberal" congressmen and senators so ignorant that they do not know the whole Atlantic +nion movement is built under the canopy of "implementing Article > of this NA-3 -reatyP" 3r, are
ccii
they too stupid to understand thisP 3r, are they so dishonest that they distort the facts, thinking that the public is too confused or ignorant to discover the truthP Although the liberals in 2ongress loudly denied that the NA-3 2itiFens 2ommission <aw of $%&) had anything to do with Atlantic +nion, 2larence 'treit knew betterLor was more honest. As soon as the law was passed, 'treit began a hasty revision of his old +nion Now. 4arly in $%&$, /arper A ,rothers published the revision, under the title .reedom*s .rontier Atlantic +nion Now. (n this new book, 'treit e5presses Gubilation about the NA-3 2itiFens 2ommission <aw6 and, on the second page of the first chapter, he saysQ "3ne change in the picture, which has seemed too slight or too recent to be noted yet by the general public, seems to me so significant as to give in itself reason enough for new faith in freedom*s future, and for this new effort to advance it. 3n 'eptember I, $%&), 1resident 4isenhower signed an act of 2ongress authoriFing a +nited 'tates 2itiFens 2ommission on NA-3 to organiFe and participate in a 2onvention of 2itiFens of North Atlantic better." emocracies with a view to e5ploring fully and recommending concretely how to unite their peoples
cciii
-he Atlantic +nion News (published by the Atlantic +nion 2ommittee, (nc.) in the 'eptember, $%&), issue presents an e5ultant article under the headline "A+2 EictoriousQ Resolution 'igned by 1resident ,ecomes 1ublic <aw :&9I$%." -he article saysQ "#embers of the Atlantic +nion 2ommittee could certainly be forgiven if by now they had decided that the Resolution for an Atlantic 45ploratory 2onvention would never pass both /ouses of 2ongress. /owever, it has Gust done so. (t was signed into law by the 1resident 'eptember I, $%&). -he incredible siFe of this victory is hard, even for us in !ashington, to comprehend...." !ho actually runs 2larence 'treit*s Atlantic +nion 2ommittee which finally succeeded in ordering the 2ongress and the 1resident of the +nited 'tates to take this sinister step toward world governmentP -he 2ouncil on .oreign RelationsR -he three top officials of the Atlantic +nion 2ommittee are members of the 2.RQ 4lmo Roper, 1resident6 !illiam <. 2layton, Eice 1resident6 and <ithgow 3sborne, 'ecretary. As of ecember, $%&), there were :I$ members of the Atlantic ecember, $%&), membership
+nion 2ommittee. 3f these, $)I were also members of the 2ouncil on .oreign Relations. -he
cciv
list of the A+2 is in Appendi5 (( of this volume. 4ach 2ouncil on .oreign Relations member is designated on that list with 2.R in parentheses after his name.
-he NA-3 2itiFens 2ommission <aw of $%&) provided that the 'peaker of the /ouse and the Eice 1resident should select >) persons to serve on the 2ommission. (n #arch, $%&$, 'am Rayburn and <yndon 0ohnson appointed the following persons as members of the 2ommissionQ onald ;. Agger6 !ill <. 2layton6 2harles !illiam 4ngelhard, 0r.6 ;eorge 0. .eldman6 #orris .orgash6 2hristian A. /erter6 1ittman, ,en Regan6 r. .rancis '. /utchins6 4ric . avid Rockefeller6 4lmo ,. Roper 0ohnston6 !illiam .. Cnowland6 /ugh #oore6 Ralph
(0r.)6 #rs. 4dith '. 'ampson6 Adolph !. 'chmidt6 3liver 2. 'chroeder6 ,urr '. 'weFey, 'r.6 Ale5 !arden6 and ouglas !ynn. 3f the >) members of the NA-3 2itiFens 2ommission, I are members of the 2ouncil on .oreign RelationsQ 2layton, /erter, 0ohnston, #oore, Rockefeller, Roper, 'chmidt. Roper is 1resident and 2layton is Eice 1resident of the Atlantic +nion 2ommittee. -he others are generally second9level affiliates of the 2.R.
ccv
-he +nited !orld .ederalists does not have as much power and influence as 2larence 'treit*s Atlantic +nion, but is clearly the second most influential organiFation working for world government. -he specific obGective of the +nited !orld .ederalists is rapid transformation (through e5pansion of the Gurisdiction of the !orld 2ourt, establishment of an international "police force," and so on) of the +nited Nations into an all9powerful world government. -he aim of the +!. organiFation, as e5pressed in its own literature (the most revealing piece of which is a pamphlet called ,eliefs, 1urposes and 1olicies) isQ "-o create a world federal government with authority to enact, interpret, and enforce world law ade8uate to maintain peace." -he world federal government would be, "based upon the following principles and include the following powers.... "#embership open to all nations without the right of secession.... !orld law should be enforceable directly upon individuals.... -he world government should have
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direct ta5ing power independent of national ta5ation." -he +!. scheme provides for a world police force and the prohibition of "possession by any nation of armaments and forces beyond an approved level re8uired for internal policing." -he +!. proposes to work toward its world government scheme, ",y making use of the amendment process of the +nited Nations to transform it into such a world federal government6 ",y participating in world constituent assemblies,
whether of private individuals, parliamentary or other groups seeking to produce draft constitutions for consideration and possible adoption by the +nited Nations or by national governments...." Norman 2ousins and 0ames 1. !arburg (both prominent 2ouncil on .oreign Relations members) formed the +nited !orld .ederalists in .ebruary, $%KI, at Ashville, North 2arolina, by amalgamating three small organiFations (!orld .ederalists, 'tudent .ederalists, and Americans +nited .or !orld ;overnment). 2ousins is still honorary president of +!.. !alter Reuther (a "second9level" affiliate of the 2.R), 2ousins, and !arburg
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actually run the +!. at the top. 3ther 2ouncil on .oreign Relations members who are officials in the +!. include /arry A. ,ullis, Arthur /. ,unker, 2ass 2anfield, #ark .. 4thridge, ouglas .airbanks, 0r.,/arold C. ;uinFburg, (sador <ubin, 2ord #eyer, 0r., <ewis #umford, /arry 'cherman, Raymond ;ram 'wing, 1aul 2. 'mith, !alter !anger, 0ames . Uellerbach.
-he (nstitute for (nternational 3rder, $$ !est K>nd 'treet, New Jork 7&, New Jork, is another organiFation working for world government. (t was founded on November $I, $%K:, at !ashington, .2., as the Association for 4ducation in !orld ;overnment. 3n #ay $I, $%=>, it changed its name to (nstitute for (nternational ;overnment. 3n #ay I, $%=K, it changed names again, to the present (nstitute for (nternational 3rder. -he purpose of this organiFation has remained constant, through all the name changing, since it was originally founded in $%K:Q to strengthen the +nited Nations into a genuine world government. And it is a part of the interlocking apparatus which constitutes our invisible government. -he (nstitute for (nternational 3rder gets I=N of its income from foundations which members of the 2ouncil on .oreign Relations control6 and the following 2.R members are officers of the (nstituteQ 4arl . 3sborn (1resident), /enry ,. 2abot (Eice
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1resident), 4dward !. ,arrett, 1aul ;. /offman, and (rving 'alomon. (n $%K:, the 'tate epartment created the +.'. 2ommittee for the
+N (mentioned in 2hapter E(((, in connection with the Advertising 2ouncil) as a semi9official organiFation to propagandiFe for the +N in the +nited 'tates, with emphasis on promoting "+N each year. -he 2ouncil on .oreign Relations dominates the +.'. 2ommittee for the +N. 'uch persons as 'tanley 2. Allyn, Ralph ,unche, ;ardner 2owles, /. 0. /einF, ((, 4ric 0ohnston, #ilton CatF, 'tanley #arcus, /ugh #oore, 0ohn Nason, 4arl . 3sborn, 0ack (. 'traus, and !alter !heeler, 0r.Lall 2ouncil on .oreign Relations membersLare members of the +.'. 2ommittee for the +nited Nations. !alter !heeler, 0r., (last name in the list above) is 1resident of 1itney9,owes, maker of postage meter machines. (n $%&$, #r. !heeler tried to stop all 1itney9,owes customers from using, on their meter machines, the American patriotic slogan, "-his is a republic, not a democracyQ let*s keep it that way." #r. !heeler said this slogan was controversial. ,ut #r. !heeler supported a campaign to get the slogan of international socialism, +N !e ,elieve, used on 1itney9,owes postage meter machinesL probably the most controversial slogan ever to appear in ay"
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American advertising, as we shall see presently. -he American Association for the +nited NationsLAA+NLis another ta59e5empt, "semi9private" organiFation set up (not directly by the 2.R, but by the 'tate epartment which the 2ouncil runs) as a propaganda agency for the +N. (t serves as an outlet for +N pamphlets and, with chapters in most key cities throughout the +nited 'tates, as an organiFer of meetings, lecture9series, and other programs which propagandiFe about the ineffable goodness and greatness of the +nited Nations as the maker and keeper of world peace. -he 2ouncil on .oreign Relations dominates the AA+N. 'ome of the leading 2.R members who run the AA+N areQ Ralph 0. ,unche, 2ass 2anfield, ,enGamin E. 2ohen, 0ohn 2owles, 2lark #. 4ichelberger, 4rnest A. ;ross, 1aul ;. /offman, 1almer /oyt, /erbert <ehman, 3scar de <ima, (rving 'alomon, 0ames -. 'hotwell, 'umner !elles, Muincy !right.
(n $%=:, the +nited 'tates 2ommittee for the +N created an (ndustry 1articipation ivision for the specific purpose of getting the +N emblem and +N !e ,elieve slogan displayed on the commercial vehicles, stationery, business forms, office buildings, flag poles, and advertising layouts of American business firms. -he first maGor firm to plunge conspicuously into this pro9+N
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propaganda drive was +nited Air <ines. !. A. 1atterson, 1resident of +nited, is an official of the 2ommittee .or 4conomic evelopment, a maGor 2ouncil on .oreign Relations propaganda affiliate, and has served on the ,usiness94ducation 2ommittee of the 24 . #r. 1atterson had the +N !e ,elieve emblem painted in a conspicuous place on every plane in the +nited Air <ines fleet. -here was a massive protest from Americans who know that the +N is part of the great scheme to destroy America as a free and independent republic. #r. 1atterson had the +N emblems removed from his planes.
(n $%&$, the American Association for the +nited Nations and the +. '. 2ommittee for the +N (both enGoying federal ta5 e5emption, as "educational" in the "public interest") created another ta59 e5empt organiFation to plaster the +N emblem all over the American landscape. -he new organiFation is called +N !e ,elieve. /ere is an article from the #ay90une, $%&$, issue of !eldwood News, a house organ of +nited 'tates 1lywood 2orporation (New Jork 7&, New Jork)Q "A. !. (Al) -eichmeier, +'1 director of merchandising, is the 2ompany*s closest physical link to the +nited
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NationsLhe*s 1resident of +N !e ,elieve. "+N !e ,elieve, under Goint auspices of the American Association for the +N and the +. '. 2ommittee for the +N, is a non9profit, year9round program geared to convince industry, organiFations and individuals how important public support can mean in preserving world peace. "+'1 uses the seal ... (+N emblem and +N !e ,elieve slogan) on its postage meters for all New Jork mailings. Among some other active companies in the program are 2(-, ;eneral -elephone, -e5aco, American 'ugar Refining, 1. <orillard 2o., and C<# utch Airlines." 1lywood companies (small ones, producing hardwood plywood, if not big ones like +'1) have been grievously hurt by the trade and foreign9aid policies which the +N, international9socialist crowd is responsible for. <enin is said to have remarked that when it comes time for communists to hang all capitalists, the capitalists will bid against each other for contracts to sell the rope. -he article from !eldwood News, 8uoted above, was 8uoted in the 0uly $I, $%&$, issue of -he an 'moot Report. -he
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companies mentioned received some mail, criticiFing them for supporting +N !e ,elieve. -he -e5aco 2ompany denied that it had ever been active in +N !e ,elieve and said that the editor of !eldwood News had apologiFed for the error in publishing the reference to -e5aco and had e5pressed regret for "the embarrassment caused" -e5aco. !hile denying support for +N !e ,elieve, however, #r. Augustus 2. <ong, 2hairman of the ,oard of -e5aco (and a member of the ,usiness Advisory 2ouncil) gave un8ualified endorsement of the 2ouncil on .oreign Relations. (n a letter dated August $I, $%&$, #r. <ong saidQ "-he 2ouncil on .oreign Relations is one of the most effective organiFations in this country devoted to spreading information on international problems. -he officers and directors of the 2ouncil are men of reputation and stature. !e believe that the 2ouncil through its study groups makes an outstanding contribution to public information concerning foreign policy issues."
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Chapter 8 5R(6&) A6D 3ne day in the spring of $%&$, a New Jork lawyer received a long distance telephone call. 2oncerning this call, the New Jork -imes reportedQ "*-his is 1resident Cennedy,* the telephone voice said. "*-he hell you say,* retorted the lawyer. *( guess that makes me the 1rime #inister of 4ngland, but what can ( do for youP* "*Nobody*s pulling your leg,* the telephone voice said. *-his is 1resident Cennedy all right. ( want to talk to you about coming down here to !ashington to help me with this long9term foreign aid legislation.*" 3ne week later, the New Jork lawyer took an apartment in !ashington and, as a member of 1resident Cennedy*s "-ask .orce" on foreign aid, started writing the .oreign Assistance Act of $%&$. -he lawyer is -heodore -annenwald, 0r., a member of the 2ouncil on .oreign Relations, who wrote many of the foreign aid bills which 1resident /arry -ruman presented to 2ongress and who, during the first 4isenhower term, was assistant director of the #utual 'ecurity 1rogram.
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After #r. -annenwald and his task force had finished writing the $%&$ foreign aid bill, 1resident Cennedy appointed -annenwald coordinator in charge of "presenting" the bill to committees of the /ouse and 'enate. -hree cabinet officers and the 2hairman of the 0oint 2hiefs of 'taff took their orders from #r. -annenwald, who was, according to the New Jork -imes, "the Administration*s composer, orchestrator and conductor of the most important legislative symphony of the 2ongressional session." !ith admiration, the -imes saidQ "#r. -annenwald has been a kind of special !hite /ouse ambassador to 2apitol /ill. !hile the legislative committees struggled with the controversial proposal to by9pass the appropriating process and give the 1resident authority to borrow H:,:)),))),))) (: billion, :)) million) for development lending in the ne5t five years, he was the man in the ante9room empowered to answer 8uestions in the name of the 1resident."
(n 0uly, $%&$, 1resident Cennedy completed #r. -annenwald*s foreign aid "orchestra." 3n 0uly $), in ceremonies at the !hite /ouse, the 1resident formally announced creation of the newest foreign9aid propaganda organiFation, the 2itiFens 2ommittee for
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(nternational
evelopment, with !arren <ee 1ierson as chairman.
/ere is the membership of the 2itiFens 2ommittee for (nternational evelopmentQ
/eads of the .ord and Rockefeller .oundations attended the !hite /ouse luncheon when the 2ommittee was formed. Eice 1resident 0ohnson, 'ecretary of 'tate each and all to get foundations, ean Rusk, and Attorney business firms, civic ;eneral Robert Cennedy were also present. -he 1resident urged organiFations, and the people generally, to put pressure on 2ongress in support of the $%&$ foreign aid bill. !ithin a week after the 0uly $), !hite /ouse luncheon meeting (which launched the 2.R*s foreign aid committee), the 1resident and his high9level aides were talking about a grave crisis in ,erlin and about foreign aid as the essential means of "meeting" that crisis. 3n 0uly >=, when congressional debates over the foreign aid bill were in a critical stage, 1resident Cennedy spoke to the nation on radio and television, solemnly warning the people that the ,erlin situation was dangerous. (mmediate, additional support for the foreign aid bill came from
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the country*s liberal and leftwing forces, who united in a passionate pleaLurging the American people to support the 1resident "in this grave hour."
3n August >I, an Associated 1ress release announced that /ouse <eader 0ohn !. #c2ormack ( emocrat, #assachusetts), was attempting to enlist the cooperation of >,K)) city mayors in support of a long9range foreign aid bill to meet the 1resident*s demands. #c2ormack sent the city officials a statement of his views with a cover letter suggesting that the matter be brought to "the attention of citiFens of your community through publication in your local newspaper," and, further, urging their "personal endorsement of this bipartisan program through the medium of your local press...." 'tate epartment officials scheduled speaking tours throughout
the land, and 2.R affiliated organiFations (like the 2ouncils on !orld Affairs) started the build9up to provide audiencesLall in the interest of "briefing" the American people on the necessity and beauties of foreign aid. Anyone with sense had to wonder how the giving of American ta5 money to communist governments in 4urope and to socialist governments all over the earth could help us resist communism in
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,erlin. ,ut with the top leaders in our society (from the 1resident downward to officials in the National 2ouncil of 2hurches) telling us that the survival of our nation depended on the 1resident*s getting all the foreign aid "authoriFation" he wantedLmost Americans remained silent, feeling that such conse8uential and complicated matters should be left in the hands of our chosen leaders. ,y the end of August, the .oreign Assistance Act of $%&$ had been passed by both houses of 2ongress6 and the ,erlin crisis moved from front page lead articles in the nation*s newspapers to less important columns. -hus, in $%&$, as always, the foreign aid bill was a special proGect of our invisible government, the 2ouncil on .oreign Relations. And, in $%&$, as always, the great, ta59supported propaganda machine used a fear psychology to bludgeon the people into silence and the 2ongress into obedience. 1resident Cennedy signed the Act as 1ublic <aw :I9$%= on 'eptember K, $%&$.
1ublic <aw :I9$%= authoriFed H$),>=7,=)),))) ($) billion, >=7 million, =)) thousand) in foreign aidQ H7,)&&,=)),))) appropriated for the $%&> fiscal year, and HI,$:I,))),))) -reasury borrowing
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authoriFed for the ne5t five years. -he law does re8uire the 1resident to obtain annual appropriations for the -reasury borrowing, but permits him to make commitments to lend the money to foreign countries, before he obtains appropriations from 2ongress. (t was widely reported in the press that 2ongress had denied the 1resident the long9term borrowing authority he had re8uested6 but the 1resident himself was satisfied. /e knew that by promising loans to foreign governments (that is, "committing" the funds in advance of congressional appropriation) he would thus force 2ongress (in the interest of showing "national unity" and of not "repudiating" our 1resident) to appropriate whatever he promised. 3n August >%, the 1resident saidQ "-he compromise ... is wholly satisfactory. (t gives the +nited 'tates ;overnment authority to make commitments for long9term development programs with reasonable assurance that these commitments will be met."
.ormer Eice 1resident Richard #. Ni5on (a member of the 2.R) was happy about the $%&$ foreign aid bill. 3n August >%, Ni5on, on the A,2 radio network, said that he favored such "long9range
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foreign aid planning, financed through multi9year authoriFations and annual appropriations." Nelson A. Rockefeller, Republican ;overnor of New Jork, announced that he too favored "long9range foreign aid planning, financed through multi9year authoriFations and annual appropriations"Le5actly like Ni5on. .ormer 1resident 4isenhower was also happy. /e, too, said he favored this sort of thing. 'enator 0. !illiam .ulbright ( emocrat, Arkansas) was almost GubilantQ he said 2ongress for the ne5t five years would be under "strong obligation" to put up the money for whatever the 1resident promises to foreign governments. All in all, it is improbable that 2ongress ever passed another bill more destructive of American constitutional principles6 more harmful to our nation politically, economically, morally, and militarily6 and more helpful to communism9socialism all over the earthLthan the .oreign Assistance Act of $%&$, which was, from beginning to end, a product of the 2ouncil on .oreign Relations.
3ur foreign aid does grievous harm to the American people by burdening them with e5cessive ta5ation, thus making it difficult for them to e5pand their own economy. -his gives government
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prete5t for intervening with more ta5ation and controls for domestic subsidies. .urthermore, the money that government takes away from us for foreign aid is used to subsidiFe our political enemies and economic competitors abroad. Note, for e5ample, the large 8uantities of agricultural goods which we give every year to communist satellite nations, thus enabling communist governments to control the hungry people of those nations. Note that while we are giving away our agricultural surpluses to communist and socialist nations, we, under the $%&$ foreign aid bill (as under previous ones), are subsidiFing agricultural production in the underdeveloped countries. -he $%&$ foreign aid bill prohibited direct aid to 2uba, but authoriFed contributions to +nited Nations agencies, which were giving aid to 2uba. At a time when the American economy was suffering from the flight of American industry to foreign lands, the $%&$ foreign aid bill offered subsidies and investment guarantees to American firms moving abroad. 3ur foreign aid enriches and strengthens political leaders and ruling oligarchies (which are often corrupt) in underdeveloped lands6 and it does infinite harm to the people of those lands, when it inflates their economy and foists upon them an artificially9
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produced industrialism which they are not prepared to sustain or even understand.
-he basic argument for foreign aid is that by helping the underdeveloped nations develop, we will keep them from falling under the dictatorship of communism. -he argument is false and unsound, historically, politically, economically, and morally. -he communists have never subGugated a nation by winning the loyalties of the oppressed and downtrodden. -he communists first win the support of liberal9intellectuals, and then use them to subvert and pervert all established mores and ideals and social and political arrangements. 3ur foreign aid does not finance freedom in foreign lands6 it finances socialism6 and a world socialist system is what communists are trying to establish. As early as $%>$, 0oseph 'talin said that the advanced western nations must give economic aid to other nations in order to socialiFetheir economies and prepare them for integration in the communist*s world socialist system. 'ocialiFing the economies of all nations so that all can be merged into a one9world system was the obGective of 2olonel 4dward #. /ouse, who founded the 2ouncil on .oreign Relations, and has
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been the obGective of the 2ouncil, and of all its associated organiFations, from the beginning. Chapter 9 <5R( 5 41( 6)4(R95C> (t is impossible in this volume to discuss all organiFations interlocked with the 2ouncil on .oreign Relations. (n previous chapters, ( have discussed some of the most powerful agencies in the interlock. (n this chapter, ( present brief discussions of a few organiFations which make significant contributions to the over9all program of the 2ouncil. (N'-(-+-4 .3R A#4R(2AN '-RA-4;J -here are some men in the 2ouncil on .oreign Relations who condemn the conse8uences of the 2.R*s policiesLbut who never mention the 2.R as responsible for those policies, and who never really suggest any change in the policies. .rank R. ,arnett is such a man. #r. ,arnett, a member of the 2ouncil on .oreign Relations, is research director for the Richardson .oundation and also program director for the (nstitute for American 'trategy, which is largely financed by the Richardson .oundation. -he (nstitute for American 'trategy holds two9day regional "'trategy 'eminars" in cities throughout the +nited
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'tates. 1articipants in the seminars are carefully selected civic and community leaders. -he announced official purpose of the seminars isQ "...to inform influential private American citiFens of the danger which confronts the +nited 'tates in the realm of world politics. -hey have been conceived as a means for arousing an informed and articulate patriotism which can provide the basis for the sustained and intensive effort which alone can counter the skillful propaganda and ruthless con8uest so successfully practiced by the 'oviet +nion and her allies and satellites." #r. ,arnett is generally one of the featured speakers at these seminars. /e speaks effectively, arousing his audience to an awareness of the 'oviets as an ugly menace to freedom and decency in the world. /e makes his audience s8uirm with an5iety about how America is losing the cold war on all fronts, and makes them burn with desire to reverse this trend. ,ut when it comes to suggesting what can be done about the terrible situation, #r. ,arnett seems only to recommend that more and more people listen to more and more speakers like him in order to become angrier at the 'oviets and more disturbed about American lossesL so that we can continue the same policies we have, but do a better Gob with them.
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#r. ,arnett never criticiFes the basic internationalist policy of entwining the affairs of America with those of other nations, because #r. ,arnett, like all other internationalists, takes it for granted that America can no longer defend herself, without "allies," whom we must buy with foreign aid. /e does imply that our present network of permanent, entangling alliances is not working well6 but he never hints that we should abandon this disastrous policy and return to the traditional American policy of benign neutrality and no9permanent9involvement, which offers the only possible hope for our peace and security. Rather, #r. ,arnett would Gust like us to conduct our internationalist policy in such a way as to avoid the disaster which our internationalist policy is building for us.
#r. ,arnett*s recommendations on how to fight communism on the domestic front also trail off, generally, into contradictions and confusion. .or e5ample, in his speech to the "'trategy 'eminar" arranged by the (nstitute for American 'trategy and sponsored by the .ulton 2ounty #edical 'ociety in Atlanta, ;eorgia, 0une, $%&$, #r. ,arnett urged all citiFens to inform themselves about the communist threat and become educated on its aims so that they will be capable of combatting communist propaganda. ,ut, #r. ,arnett said, citiFens are "silly" who concern themselves with
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trying to find communists and fellow9travelers in the 1-AR (n a speech to reserve officers at the !ar 2ollege in 0uly, $%&$, #r. ,arnett denounced "crackpots" who hunt "pinkos" in local colleges. /e said the theory that internal subversion is the chief danger to the +nited 'tates is fallaciousLand is harmful, because it has great popular appeal. ,elief in this theory, #r. ,arnett said, makes people mistakenly feel that they "don*t have to think about ... strengthening NA-3, or improving foreign aid management, or volunteering for the 1eace 2orps, or anything else that might re8uire sacrifice." #r. ,arnett, who speaks persuasively as an e5pert on fighting communism, apparently does not know that the real work of the communist conspiracy is not performed by the shabby people who staff the official apparatus of the communist party, but is done by well9intentioned people (in the 1-A and similar organiFations) who have been brainwashed with communist ideas. 2ommunists (whom #r. ,arnett hates and fears) did not do the tremendous Gob of causing the +nited 'tates to abandon her traditional policies of freedom and independence for the internationalist policies which are dragging us into one9world socialism. -he most distinguished and respected Americans of our time, in the 2ouncil on .oreign Relations (of which #r. ,arnett is a member) did this Gob. (t is interesting to note that the principal book offered for sale and
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recommended for reading at #r. ,arnett*s,"'trategy 'eminars" is American 'trategy .or -he Nuclear Age. -he first chapter in the book, entitled ",asic Aims of +nited 'tates .oreign 1olicy," is a reprint of a 2ouncil on .oreign Relations report, compiled by a 2.R meeting in $%=%, attended by such well9known internationalist "liberals" as .rank Altschul, /amilton .ish Armstrong, Adolf A. ,erle, 0r., Robert ,lum, Robert R. ,owie, 0ohn 2owles, Arthur /. ean, -homas C. .inletter, !illiam 2. .oster, !. Averell /arriman, 1hilip 2. 0essup, 0oseph 4. 0ohnson, /enry R. <uce, (. (. Rabi, /erman ,. !ells, /enry #. !riston. 23##(''(3N 3N NA-(3NA< ;3A<' 3n ecember &, $%&), 1resident 4isenhower presented, to
1resident9elect Cennedy, a report by the 1resident*s 2ommission on National ;oals, a group of "distinguished" Americans whom 1resident 4isenhower had appointed $$ months before to find out what America*s national purpose should be. -he national purpose of this nation should be e5actly what it was during the first $>= years of our national lifeQ to stand as proof that free men can govern themselves6 to blaFe a trail toward freedom, a trail which all people, if they wish, can follow or guide themselves by, without any meddling from us. /ydrogen bombs and airplanes and intercontinental ballistic missiles do not change basic principles. -he principles on which
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our nation was founded are eternal, as valid now as in the $:th century. (ndeed, modern developments in science should make us cling to those principles. (f foreign enemies can now destroy our nation by pressing a button, it seems obvious that our total defense effort should be devoted to protecting our nation against such an attackQ it is suicidal for us towaste any of our defense effort on "economic improvement" and military assistance for other nations. All of this being obvious, it is also obvious that the 1resident*s 2ommission on National ;oals was not really trying to discover our "national purpose." "National 1urpose" was the label for a propaganda effort intended to help perpetuate governmental policies, which are dragging America into international socialism, regardless of who succeeded 4isenhower as 1resident. -he Report is actually a rehash of maGor provisions in the $%&) emocrat and Republican party platforms. #ore than that, it is, in several fundamental and specific ways, identical with the $%&) published program of the communist party. (.or a full discussion of the 1resident*s 2ommission on National ;oals, see -he 'moot Report, "3ur National 1urpose," ecember $>, $%&).) !ho were the "distinguished" Americans whom 4isenhower appointed to draw this blueprint of America*s National 1urposeP -hey wereQ an
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4rwin
. 2anham, 4ditor9in92hief of the 2hristian arden, 0r., former 1resident of the
'cience #onitor6 0ames ,. 2onant, former 1resident of /arvard6 2olgate !. +niversity of Eirginia and former ;overnor of Eirginia6 2rawford /. ;reenewalt, 1resident of 4. (. du 1ont de Nemours A 2o., (nc.6 ;eneral Alfred #. ;ruenther, 1resident of the American Red 2ross6 <earned /and, retired Gudge of the +.'. 2ourt of Appeals6 2lark Cerr, 1resident of the +niversity of 2alifornia6 0ames R. Cillian, 0r., 2hairman of the #assachusetts (nstitute of -echnology6 ;eorge #eany, 1resident of the A.<92(36 .rank 1ace, 0r., former member of -ruman*s cabinet6 /enry #. !riston, 1resident of American Assembly and 1resident 4meritus of ,rown +niversity. 3f the $$, I are members of the 2ouncil on .oreign RelationsL 2anham, 2onant, ;ruenther, /and, Cillian, 1ace, !riston. All of the others are lower9level affiliates of the 2.R. NA-(3NA< 1<ANN(N; A''32(A-(3N -he National 1lanning Association was established in $%7K "to bring together leaders from agriculture, business, labor, and the professions to pool their e5perience and foresight in developing workable plans for the nation*s future...." -he 8uotation is from an N1A booklet, which also saysQ
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"4very year since the N1A was organiFed in $%7K, its reports have strongly influenced our national economy, +.'. economic policy, and business decisions." /ere are members of the 2ouncil on .oreign Relations listed as officials of the National 1lanning AssociationQ .rank Altschul, <aird ,ell, 2ourtney 2. ,rown, 4ric 0ohnston, onald R. #urphy, 4lmo Roper, ,eardsley Ruml, /ans 2hristian 'onne, <auren 'oth, !ayne 2hatfield -aylor, 0ohn /ay !hitney. -he following officials of National 1lanning Association are generally second9level affiliates of the 2.RLor are, at any rate, worth notingQ Arnold Uander, (nternational 1resident of American .ederation of 'tate, 2ounty and #unicipal 4mployees6 'olomon ,arkin, irector of Research for the -e5tile !orkers +nion of America6 <. '. ,uckmaster, ;eneral 1resident, +nited Rubber, 2ork, <inoleum A 1lastic !orkers of America6 0ames ,. 2arey, 'ecretary9-reasurer of 2(36 Albert 0. /ayes, (nternational 1resident of (nternational Association of #achinists6 and !alter 1. Reuther. A#4R(2AN 2(E(< <(,4R-(4' +N(3N (n $%>), the American 2ivil <iberties +nion was founded by .eli5 .rankfurter, a member of the 2ouncil on .oreign Relations, !illiam U. .oster, then head of the +.'. 2ommunist 1arty6 4liFabeth ;urley .lynn, a top communist party official6 r. /arry ..
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!ard, of +nion -heological 'eminary, a notorious communist9 fronter6 and Roger ,aldwin. 1atrick #. #alin, a member of the 2.R, has been director of the American 2ivil <iberties +nion since $%=>. 3ther 2.R members who are known to be officials in the American 2ivil <iberties +nion areQ !illiam ,utler, Richard '. 2hilds, Norman 2ousins, 1almer /oyt, 0r., 0. Robert 3ppenheimer, 4lmo Roper, Arthur #. 'chlesinger, 0r. NA-(3NA< 23N.4R4N24 3. 2/R('-(AN' AN 04!' -he late 2harles 4vans /ughes (a member of the 2.R) and the late '. 1arkes 2adman (former 1resident of the .ederalLnow NationalL2ouncil of 2hurches) founded the National 2onference of 2hristians and 0ews in $%>:. (n 0une, $%=) (at the suggestion of 1aul /offman) the National 2onference of 2hristians and 0ews founded !orld ,rotherhood at +N4'23 /ouse in 1aris, .rance. -he officers of !orld ,rotherhood wereQ Conrad Adenauer, !illiam ,enton, Arthur /. 2ompton, 1aul /enri9'paak, 1aul ;. /offman, /erbert /. <ehman, 0ohn 0. #c2loy, ;eorge #eany, #adame 1andit, 1aul Reynaud, 4leanor Roosevelt, Adlai 'tevenson.
(n August, $%=:, !orld ,rotherhood held a seminar in ,ern,
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'witFerland. All of the officers listed above attended and prepared "working papers." /ere is a summary of conclusions reached at this !orld ,rotherhood meeting, as condensed from an article by Arthur Crock, in -he New Jork -imes, November >$, $%=:Q !e must recogniFe that the communist countries are here to stay and cannot be wished away by propaganda. All is not bad in communist countries. !estern nations could learn from communist e5periments. !e should study ways to make changes in both systemsL communist and westernLin order to bring them nearer together. !e should try to eliminate the stereo9type attitudes about, and suspicion of, communism. !e must assume that the communist side is not worse than, but merely different from, our side. (n #ay, $%&), !orld ,rotherhood held a conference on "!orld -ensions" at 2hicago +niversity. <ester ,. 1earson (socialist9 internationalist from 2anada) presided at the conference6 and the following members of the 2ouncil on .oreign Relations served as officialsQ !illiam ,enton, Ralph ,unche, #ar8uis 2hilds, /arlan 2leveland, Norman 2ousins, 4rnest A. ;ross, 1aul ;. /offman, and Adlai 'tevenson. -he National 2onference of 2hristians and 0ews9!orld
,rotherhood $%&) meeting on "!orld -ensions," at 2hicago
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+niversity, concluded that the communists are interested in more trade but not interested in political subversion, and recommendedQ ($) a three9billion9dollar9a9year increase in +. '. foreign aid to "poor" countries6 (>) repeal of the 2onnally Reservation6 (7) closer relations between the +. '. and communist countries. Adlai 'tevenson told the group that Chrushchev is merely a "tough and realistic politician and polemicist," with whom it is possible to "conduct the dialogue of reason."
(n $%&$, !orld ,rotherhood, (nc., changed its name to 2onference 3n !orld -ensions. A#4R(2AN A''4#,<J (n $%=), when 1resident of 2olumbia +niversity, ;eneral wight
. 4isenhower founded the American AssemblyLsometimes calling itself the Arden /ouse ;roup, taking this name from its head8uarters and meeting place. -he Assembly holds a series of meetings at Arden /ouse in New Jork 2ity about every si5 months, and other round9table discussions at varying intervals throughout the nation. -he $%th meeting of the Arden /ouse ;roup, which ended #ay I, $%&$, was typical of all others, in that it was planned and conducted by members of the 2ouncil on .oreign RelationsLand
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concluded with recommendations concerning American policy, which, if followed, would best serve the ends of the Cremlin. -his $%&$ Arden /ouse meeting dealt with the problem of disarmament. /enry #. !riston (1resident of American Assembly and irector of the 2ouncil on .oreign Relations) presided over the three maGor discussion groupsLeach group, in turn, was under the chairmanship of a member of the 2ouncilQ Raymond 0. 'ontag of the +niversity of 2alifornia6 #ilton CatF, <egal 'tudies at /arvard6 and irector of (nternational irector of r. 1hilip 4. #osely,
'tudies for the 2ouncil on .oreign Relations. 0ohn 0. #c2loy (a member of the 2.R) as 1resident Cennedy*s irector of isarmament, sent three subordinates to participate. eputy irector of the -wo of the three (4dmund A. ;ullion,
isarmament Administration6 and 'hepard 'tone, a .ord .oundation official) are members of the 2.R. /ere are two maGor recommendations which the #ay, $%&$, American Assembly meeting madeQ ($) that the +nited 'tates avoid weapons and measures which might give "undue provocation" to the 'oviets, and which might reduce the likelihood of disarmament agreements6 (>) that the +nited 'tates strengthen its conventional
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military forces for participation in "limited wars" but avoid building up an ordnance of nuclear weapons. !e cannot match the communist nations in manpower or "conventional military forces" and should not try. 3ur only hope is to keep our military manpower in reserve, and uncommitted, in the +nited 'tates, while building an overwhelming superiority in nuclear weapons. !hen we "strengthen our conventional forces for participation in limited wars," we are leaving the 'oviets with the initiative to say when and where those wars will be fought6 and we are committing ourselves to fight with the kind of forces in which the 'oviets will inevitably have superiority. #ore than that, we are consuming so much of our economic resources that we do not have enough left for weaponry of the kind that would defend our homeland. A#4R(2AN' .3R 4#32RA-(2 A2-(3N -he A A was founded in April, $%KI, at a meeting in the old !illard /otel, !ashington, the A A ever since. /ere are members of the 2ouncil on .oreign Relations who are, or were, top officials in Americans .or avis, avid emocratic ActionQ .rancis avis, !illiam /. ,iddle, 2hester ,owles, #ar8uis 2hilds, 4lmer . 2. #embers of the 2ouncil on .oreign Relations dominated this meetingLand have dominated
ubinsky, -homas C. .inletter, 0ohn Cenneth
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;albraith, 1almer /oyt, /ubert /. /umphrey, 0acob C. 0avits, /erbert /. <ehman, Reinhold Niebuhr, Arthur 'chlesinger, 0r. /ere are some of the policies which the A A openly and vigorously advocated in $%&$Q Abolition of the /ouse 2ommittee on +n9American Activities 2ongressional investigation of the 0ohn ,irch 'ociety -otal isarmament under +nited Nations control +. '. recognition of red 2hina Admission of red 2hina to the +nited Nations, in place of nationalist 2hina .ederal aid to all public schools rastic overhaul of our immigration laws, to permit a more "liberal" admission of immigrants +rban renewal and planning for all cities
/ere is a good, brief characteriFation of the A A, from a <os
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Angeles -imes editorial, 'eptember $:, $%&$Q "-he A A members ... are as an organiFation strikingly like the ,ritish .abian 'ocialists.... -he .abians stood for non9#ar5ian evolutionary socialism, to be achieved not by class war but by ballot.... "A A is not an organiFation for subversive violence like #ar5ist9<enin communism.... -he socialism they want to bring about would be 8uite as total, industrially, as that in Russia, but they would accomplish it by legislation, not by shooting, and, of course, by infiltrating the e5ecutive branch of the government...." 'AN4 N+2<4AR 13<(2J, (N2. (n $%==, ,ertrand Russell (,ritish pro9communist socialist) and the late Albert 4instein (notorious for the number of communist fronts he supported) held a meeting in <ondon (attended by communists and socialists from all over the world). (n a fanfare of publicity, Russell and 4instein demanded international co9 operation among atomic scientists. -aking his inspiration from this meeting, 2yrus 4aton (wealthy American industrialist, notorious for his consistent pro9communist sympathies), in $%=&, held the first "1ugwash 2onference," which was a gathering of pro9'oviet propagandists, called scientists,
%hadow &overnment All Rights Reserved By 'ames ( )ance * +,-. cc555vii
from red 2hina, the 'oviet +nion, and !estern nations. Another 1ugwash 2onference was held in $%=I6 and from these 1ugwash 2onferences, the idea for a 'ane Nuclear 1olicy, (nc., emerged.
'ane Nuclear 1olicy, (nc., was founded in November, $%=I, with national head8uarters in New Jork 2ity, and with ,ertrand Russell of 4ngland and 'wedish socialist ;unnar #yrdal (among others) as honorary sponsors. 3fficers of 'ane Nuclear 1olicy, (nc., are largely second9level affiliates of the 2ouncil on .oreign Relations, with a good representation from the 2.R itself. /ere are past and present officials of 'AN4, who are also members of the 2ouncil on .oreign RelationsQ /arry A. ,ullis, /enry 'eidel 2anby, Norman 2ousins, 2lark #. 4ichelberger, <ewis #umford, 4arl 4lmo Roper, 0ames -. 'hotwell, 0ames 1. !arburg. 3ther national officials of 'AN4, who are not members of the 2.R, but worthy of note, areQ 'teve Allen, /arry ,elafonte, !alt Celly, #artin <uther Cing, <inus 1auling, Norman -homas, ,runo !alter. A typical activity of 'AN4 was a public rally at #adison '8uare . 3sborn,
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;arden in New Jork 2ity on #ay $%, $%&), featuring speeches by 4leanor Roosevelt, !alter Reuther, Norman -homas, Alf <andon, (srael ;oldstein, and ;. #ennen !illiams. All speakers demanded disarmament and strengthening the +nited Nations until it becomes strong enough to maintain world peace. 2ommenting on this 'AN4 rally at #adison '8uare ;arden, 'enator 0ames 3. 4astland, 2hairman of the 'enate (nternal 'ecurity 'ubcommittee said (in a press release from his office, dated 3ctober $>, $%&))Q "-he communists publiciFed the meeting well in advance through their own and sympathetic periodicals.... -he affair, in #adison '8uare ;arden #ay $%, was sponsored by the 2ommittee for a 'ane Nuclear 1olicy.... 2hief organiFer of the ;arden meeting, however, was one /enry /. Abrams of $$ Riverside rive, New Jork, New Jork, who was a veteran member of the communist party.... (t is to the credit of the officers of the organiFation that, when Abrams* record of communist connections was brought to their attention, Abrams was immediately discharged." .R44 4+R314 23##(--44 -he .ree 4urope 2ommittee, (nc., was founded in New Jork,
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primarily by /erbert /. <ehman (then +nited 'tates 'enator) in $%K%. (ts revenue comes from the big foundations (principally, .ord) and from annual fund9raising drives conducted in the name of 2rusade for .reedom. -he main activity of -he .ree 4urope 2ommittee (apart from the fund raising) is the running of Radio .ree 4urope and .ree 4urope 1ress. 4very year, 2rusade for .reedom (with maGor assistance from !ashington officialdom) conducts a vigorous nationwide drive, pleading for "truth dollars" from the American people to finance the activities of Radio .ree 4urope and .ree 4urope 1ress, which are supposed to be fighting communism behind the iron curtain by spreading the truth about communism to people in the captive satellite nations. (t is widely known among well9informed anti9communists, however, that Radio .ree 4urope actually helps, rather than hurts, the cause of international communismLparticularly in the captive nations. Radio .ree 4urope broadcasts tell the people behind the iron curtain that communism is badLas if they did not know this better than the R.4 broadcasters do6 but the broadcasts consistently support the programs, and present the ideology, of international socialism, always advocating the e8uivalent of a one9world socialist society as the solution to all problems. -his is, of course,
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the communist solution. And it is also the solution desired by the 2ouncil on .oreign Relations. A bill of particulars which reveals that Radio .ree 4urope helps rather than hurts communism with its so9called "anti9communist" broadcasts can be found in the 2ongressional Record for 0une >), $%=&. An article, beginning on page AK%):, was put in the Record by former 2ongressman Albert /. ,osch, of New Jork. (t was written by ;eorge ,rada, a 2Fechoslovakian who fled his homeland after the communists had taken over in $%K:. ,rada now lives in !estern ;ermany and is active in a number of anti9 communist groups in !estern 4urope. (n reality, the .ree 4urope 2ommittee and its subsidiary organiFations constitute another propaganda front for the 2ouncil on .oreign Relations. /ere, for e5ample, are the 2.R members who are, or have been, top officials of .ree 4urope 2ommittee, 2rusade for .reedom, or Radio .ree 4uropeLor all threeQ Adolf A. ,erle, avid C. 4. ,ruce, ;eneral <ucius ulles, wight . 2lay, !ill <. 2layton, Allen !. . 4isenhower, #ark .. 4thridge, 0ulius
.leischmann, /enry .ord ((, !alter '. ;ifford, 0oseph 2. ;rew, 1almer /oyt, 2. . 0ackson, /erbert /. <ehman, /enry R. <uce, avid 'arnoff, 4dward R. #urrow, (rving '. 3lds, Arthur !. 1age,
!hitney /. 'hepardson, ;eorge N. 'huster, 2harles #. 'pofford, /arold 4. 'tassen, /. ;regory -homas, !alter /. !heeler, 0r.
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NA-(3NA< A''32(A-(3N .3R -/4 A EAN24#4N- 3. 23<3R4 1431<4 -he 2ouncil on .oreign Relations has had a strong (though, probably, not controlling) hand in the NAA21. .eli5 .rankfurter, 2.R member, was an attorney for the NAA21 for ten years. 3ther 2.R members who are, or were, officials of the NAA21Q Ralph ,unche, Norman 2ousins, <ewis '. ;annett, 0ohn /ammond, /erbert /. <ehman. A#4R(2AN 23##(--44 3N A.R(2A -he American 2ommittee on Africa is a propaganda agency which concentrates on condemning the apartheid policies of the government of the +nion of 'outh AfricaLa nation of white people (practically encircled by millions of black savages), who feel that their racial policies are their only hope of avoiding total submergence and destruction. (n addition to disseminating propaganda to create ill9will for 'outh Africa among Americans, the American 2ommittee on Africa gives financial assistance to agitators and revolutionaries in the +nion of 'outh Africa. (t has, for e5ample, given financial aid to $=& persons charged with treason under the laws of the +nion. /ere are some of the 2ouncil on .oreign Relations members who are officials of the American 2ommittee on AfricaQ ;ardner 2owles, <ewis '. ;annett, 0ohn ;unther, 'enator /ubert /.
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/umphrey,
r. Robert <. 0ohnson,
r. Reinhold Niebuhr, Arthur #.
'chlesinger, 0r. #rs. 2hester ,owles is also an official. !3R< 131+<A-(3N 4#4R;4N2J 2A#1A(;N -he !orld 1opulation 4mergency 2ampaign urges the +nited 'tates government to use American ta5 money in an effort to solve the world population problem. (t specifically endorses the $%=% raper Report on foreign aid, which recommended that the +nited 'tates appropriate money for a +nited Nations population control proGect. <eadership of the !orld 1opulation 4mergency 2ampaign is dominated by such 2.R members asQ !ill <. 2layton, <ammot u1ont 2opeland, #aGor ;eneral !illiam /. raper, 0ohn Nuveen. #ost of the members of the "2ampaign" also belong to the Atlantic +nion 2ommittee, or to some other second9level affiliate of the 2.R. '2/33< 3. (N-4RNA-(3NA< '4RE(24 -he 'chool of (nternational 'ervice at American +niversity in !ashington, . 2., initiated a new academic program to train foreign service officers and other officials in newly independent nations, commencing in 'eptember, $%&$. -he foreign diplomats will study courses on land reforms, finance, labor problems, and several courses on 'oviet and 2hinese communism. -he program (under the newly created 2enter of iplomacy and .oreign 1olicy)
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is directed by former +nder 'ecretary of 'tate <oy !. /enderson, a member of the 2ouncil on .oreign Relations. (N'-(-+-4 3. (N-4RNA-(3NA< 4 +2A-(3N (n $%$%, 4lihu Root and 'tephen 2ouncil on .oreign Relations) uggan (both members of the founded the (nstitute of
(nternational 4ducation, to develop international understanding and goodwill through e5change of students, teachers, and others in the educational field. 1rior to !orld !ar ((, the (nstitute was financed by the 2arnegie 2orporation. 'ince the !ar, the federal government has contributed a little more than one9third of the (nstitute*s annual income of about $.: million dollars. .oundations, corporations, individuals, and colleges, contribute the rest. -he (nstitute is wholly a 2.R operation. (ts officials areQ 'tanley 2. Allyn, 4dward !. ,arrett, 2hester ,owles, Ralph 0. ,unche, !illiam 2. .oster, Arthur A. /oughton, ;rayson <. Cirk, 4dward R. #urrow, ;eorge N. 'huster, and 0ames members of the 2.R. . UellerbachLall
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Chapter 10 C5<<8)6CA465)% <(D6A (n nine chapters of this Eolume, ( have managed to discuss only a few of the most powerful organiFations interlocked with the 2ouncil on .oreign Relations, to form an amaFing web which is the invisible government of the +nited 'tates. -here are scores of such organiFations. ( have managed to name, relatively, only a few of the influential individuals who are members of the 2ouncil on .oreign Relations, or of affiliated agencies, and who also occupy key Gobs in the e5ecutive branch of government, including the 1residency. ( have asserted that the obGective of the invisible government is to convert America into a socialist nation and then make it a unit in a one9world socialist system. -he managers of the combine do not admit this, of course. -hey are "liberals" who say that the old "negative" kind of government we used to have is inade8uate for this century. -he liberals* "positive" foreign policy is said to be necessary for "world peace" and for meeting "America*s responsibility" in the world. -heir "positive" domestic policies are said to be necessary for the continued improvement and progress of our "free9enterprise" system.
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,ut the "positive" foreign policy for peace has dragged us into so many international commitments (many of which are in direct conflict with each otherQ such as, our subsidiFing national independence for former colonies of 4uropean powers, while we are also subsidiFing the 4uropean powers trying to keep the colonies) that, if we continue in our present direction, we will inevitably find ourselves in perpetual war for perpetual peaceLor we will surrender our freedom and national independence and become an out9voted province in a socialist one9world system. -he liberals* "positive" domestic policies always bring the federal government into the role of subsidiFing and controlling the economic activities of the people6 and that is the known highway to the total, tyrannical socialist state. -he 2ouncil on .oreign Relations is rapidly achieving its purpose. An obvious reason for its successQ it is reaching the American public with its clever propaganda. /owever much power the 2.R combine may have inside the agencies of government6 however e5tensive the reach of its propaganda through organiFations designed to "educate" the public to acceptance of 2.R ideasLthe 2.R needs to reach the mass audience of Americans who do not belong to, or attend the meetings of, or read material distributed by, the propaganda organiFations. 2ouncil on .oreign Relations leaders are aware of
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this need, and they have met it.
(n the $%=I Annual Report of the 2ommittee for 4conomic evelopment (a maGor propaganda arm of the 2.R), ;ardner 2owles, then 2hairman of 24 *s (nformation 2ommittee, did a bit of boasting about how successful 24 had been in communicating its ideas to the general public. #r. 2owles saidQ "-he value of 24 *s research and recommendations is directly related to its ability to communicate them ... the organiFation*s role as an agency that can influence private and public economic policies and decisions ... can be effective ... only to the e5tent that 24 ideas across to thinking people.... " uring the year S$%=IT, the (nformation ivision Sof gets its
24 T distributed K> pamphlets having a total circulation of =K=,=:=6 issued 7I press releases and te5ts of statements6 arranged K press conferences, $) radio and television appearances, $> speeches for -rustees, 7 magaFine articles and the publication of 7 books.... (n assessing the year, we are reminded again of the great debt we owe the nation*s editors. -heir regard for the obGectivity and non9partisanship of 24 *s work is
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reflected in the e5ceptional attention they give to what 24 has to say. -he S24 T statement, *-oward a Realistic .arm 1olicy,* for e5ample not only received e5tended news treatment but was the subGect of 7&> editorials. -he circulation represented in the editorials alone totaled $%,77&,>%%." #r. 2owles was modest. /e gave only a hint of the total e5tent to which the mass9communication media have become a controlled propaganda network for the 2ouncil on .oreign Relations and its inter9connecting agencies. ( doubt that anyone really knows the full e5tent. #y research reveals a few of the 2.R members who have (or have had) controlling, or e5tremely influential, positions in the publishing and broadcasting industries. #y list of 2.R members in this field is far from complete6 and ( have not tried to compile a list of the thousands of people who are not members of the 2.R, but who are members of 24 , .1A, or of some other 2.R affiliateL and who also control important channels of public communications. /ence, the following listLof 2ouncil on .oreign Relations members whom ( know to be influential in the communications industriesLis intended to be indicative, rather than comprehensive and informativeQ
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/erbert Agar (former 4ditor,<ouisville 2ourier90ournal) /anson !. ,aldwin (#ilitary Affairs 4ditor,New Jork -imes) 0oseph ,arnes (4ditor9in92hief, 'imon A 'chuster, 1ublishers) 4lliott E. ,ell (2hairman of 45ecutive 2ommittee, #c;raw9/ill 1ublishing 2o.6 1ublisher and 4ditor of ,usiness !eek) 0ohn #ason ,rown (4ditor,'aturday Review of
<iterature, drama critic, author) 2ass 2anfield (2hairman of the 4ditorial ,oard of /arper A ,rothers, 1ublishers) #ar8uis 2hilds (author, syndicated columnist) Norman 2ousins (4ditor9in92hief,'aturday Review of <iterature) ;ardner 2owles, 8uoted above from the $%=I 24 Annual Report, and 0ohn 2owles (-hey occupy controlling offices in 2owles #agaFine 2ompany, which
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owns such publications as <ook, #inneapolis 'tar and -ribune, and es #oines Register and -ribune, and which also owns a broadcasting company.) #ark 4thridge (1ublisher,<ouisville 2ourier90ournal,
<ouisville -imes) ;eorge ;allup (public opinion analyst, ;allup 1oll6 1resident, National #unicipal <eague) 1hilip ;raham (1ublisher,!ashington 1ost and -imes /erald) Allen ;rover (Eice 1resident of -ime, (nc.) 0oseph 2. /arsch (of -he 2hristian 'cience #onitor) August /eckscher (4ditor, New Jork /erald -ribune) 1almer /oyt (1ublisher, enver 1ost)
avid <awrence (1resident and 4ditor9in92hief,+. '. News and !orld Report) /al <ehrman (4ditor, New Jork 1ost) (rving <evine (N,2 news official and commentator)
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!alter <ippmann (author, syndicated columnist) /enry R. <uce (1ublisher, -ime, <ife, .ortune, 'ports (llustrated) #alcolm #uir (2hairman of the ,oard and 4ditor9in9 2hief,Newsweek) !illiam '. 1aley (2hairman of the ,oard, 2olumbia ,roadcasting 'ystem) 3gden Reid (former 2hairman of the ,oard, New Jork /erald -ribune) !hitelaw Reid (former 4ditor9in92hief, New Jork /erald -ribune) 0ames ,. Reston (4ditorial writer, New Jork -imes) 4lmo Roper (public opinion analyst, Roper 1oll) avid 'arnoff (2hairman of the ,oard, Radio
2orporation of AmericaLN,2, R2A Eictor, etc.) /arry 'cherman (founder and 2hairman of the ,oard, ,ook9of9the9#onth 2lub)
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!illiam <. 'hirer (author, news commentator) 1aul 2. 'mith (1resident and 4ditor9in92hief, 2rowell9 2ollier 1ublishing 2ompany) <eland 'tone (head of News Reporting for Radio .ree 4urope, 2hicago aily News foreign correspondent) Robert Cenneth 'traus (former research director for .. .
Roosevelt*s 2ouncil of 4conomic Advisers6 owner and publisher of the 'an .ernando, 2alifornia, 'un6 largest stockholder and member of ,oard of 3range 2oast 1ublishing 2ompany, which publishes the aily ;lobe9 /erald of 2osta #esa, the 1ilot and other small newspapers in 2alifornia6 member of group which owns andpublishesAmerican /eritage and /oriFon magaFines6 -reasurer and irector of (ndustrial 1ublishing 2ompany of 2leveland, which publishes trade magaFines) Arthur /ayes 'ulFberger (2hairman of the ,oard, New Jork -imes) 2. <. 'ulFberger (4ditorial writer, New Jork -imes) ( do not mean to imply that all of these people are controlled by the 2ouncil on .oreign Relations, or that they uniformly support
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the total program of international socialism which the 2ouncil wants. -he 2ouncil does not own its membersQ it merely has varying degrees of influence on each. .or e5ample, former 1resident /erbert /oover, a member of the 2ouncil, has fought elo8uently against many basic policies which the 2ouncil supports. 'pruille ,raden is another. #r. ,raden formerly held several important ambassadorial posts and at one time was Assistant 'ecretary of 'tate in charge of American Republic Affairs. (n recent years, #r. ,raden has given leadership to many patriotic organiFations and efforts, such as .or America and -he 0ohn ,irch 'ociety6 and, in testimony before various committees of 2ongress, he has given much valuable information about communist influences in the 'tate epartment. #r. ,raden Goined the 2ouncil on .oreign Relations in the late $%>)*s or early 7)*s, when membership in the 2ouncil was a fashionable badge of respectability, helpful to the careers of young men in the foreign service, in the same way that membership in e5pensive country clubs and similar organiFations is considered helpful to the careers of young business e5ecutives. #en who know ,raden well say that he stayed in the 2ouncil after he came to realiFe its responsibility for the policies of disaster which our nation has followed in the postwar eraLhoping to e5ert some pro9American influence inside the 2ouncil.
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(t apparently was a frustrated hope. -here is a story in well9 informed New Jork circles about the last time the 2ouncil on .oreign Relations ever called on 'pruille ,raden to participate in an important activity. ,raden was asked to preside over a 2ouncil on .oreign Relations meeting when the featured speaker was /erbert #atthews (member of the New Jork -imes editorial board) whose support of communist 2astro in 2uba is notorious. (t is said that the anti9communist viewpoint which ,raden tried to inGect into this meeting will rather well guarantee against his ever being asked to officiate at another 2.R affair. ;enerally, however, the degree of influence which the 2.R e5erts upon its own members is very high indeed.
Apart from an occasional article or editorial which criticiFes some aspect of, or some leader in, the socialist revolution in America6 and despite much rhetoric in praise of "free enterprise" and "the American way," such publications as -ime, <ife, .ortune, New Jork -imes, New Jork 1ost,<ouisville 2ourier90ournal, !ashington 1ost and -imes /erald, 'aturday Review of <iterature, the enver 1ost, -he 2hristian 'cience #onitorand <ook (( name only those, in the list above, which (, personally, have read a great deal.) have not one time in the past $= years spoken editorially against any fundamentally important aspect of
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the over9all governmental policies which are dragging this nation into socialism and world governmentLat least, not to my knowledge. 3n the contrary, these publications heartily support those policies, criticiFing them, if at all, only about some detailLor for being too timid, small and slowR (n contrast, avid <awrence, of +. '. News A !orld Report,
publishes fine, obGective news9reporting, often featuring articles which factually e5pose the costly fallacies of governmental policy. -his is especially true of +. '. News A !orld Report in connection with domestic issues. 3n matters of foreign policy, avid <awrence often goes down the line for the internationalist policyL being convinced (as all internationalists seem to be) that this is the only policy possible for America in the "shrunken world" of the twentieth century. An intelligent man like avid <awrenceLwho must see the endless and unbroken chain of disasters which the internationalist foreign policy has brought to America6 and who is thoroughly familiar with the proven record of marvelous success which our traditional policy of benign neutrality and no9permanent9involvement enGoyedQ how can he still feel that we are nonetheless inescapably bound to follow the policy of disasterP ( wish ( knew.
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Chapter 11 6)4(R95C>6)& 8)458C1AB9(% #embers of 2ongress are not unaware of the far9reaching power of the ta59e5empt private organiFationLthe 2.R6 but the power of the 2ouncil is somewhat indicated by the fact that no committee of 2ongress has yet been powerful enough to investigate it or the foundations with which it has interlocking connections and from which it receives its support. 3n August $, $%=$, 2ongressman 4. 4. 2o5 ( emocrat, ;eorgia) introduced a resolution in the /ouse asking for a 2ommittee to conduct a thorough investigation of ta59e5empt foundations. 2ongressman 2o5 said that some of the great foundations, "had operated in the field of social reform and international relations (and) many have brought down on themselves harsh and Gust condemnation." /e named the Rockefeller .oundation, "whose funds have been used to finance individuals and organiFations whose business it has been to get communism into the private and public schools of the country, to talk down America and to play up Russia." /e cited the ;uggenheim .oundation, whose money,
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"was used to spread radicalism throughout the country to an e5tent not e5celled by any other foundation." /e listed the 2arnegie 2orporation, -he Rosenwald .und, and other foundations, sayingQ "-here are dis8uieting evidences that at least a few of the foundations have permitted themselves to be infiltrated by men and women who are disloyal to our American way of life. -hey should be investigated and e5posed to the pitiless light of publicity, and appropriate legislation should be framed to correct the present situation." 2ongressman 2o5*s resolution, proposing an investigation of foundations, died in 2ommittee.
3n #arch $), $%=>, 2o5 introduced the same resolution again. ,ecause he had mentioned foundation support for <angston /ughes, a Negro communist, 2ongressman 2o5 was accused of racial preGudice. ,ecause he had criticiFed the Rosenwald .und for making grants to known communists, he was called anti9 semitic. ,ut the 2o5 resolution was adopted in $%=>6 and the 2o5 committee to investigate ta59e5empt foundations was set up.
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2ongressman 2o5 died before the end of the year6 and the final report of his committee (filed 0anuary $, $%=7) was a pathetic whitewash of the whole subGect. A Republican9controlled 2ongress (the :7rd) came into e5istence in 0anuary, $%=7.
3n April >7, $%=7, the late 2ongressman 2arroll Reece, (Republican, -ennessee) introduced a resolution proposing a committee to carry on the "unfinished business" of the defunct 2o5 2ommittee. -he new committee to investigate ta59e5empt foundations (popularly known as the Reece 2ommittee) was approved by 2ongress on 0uly >I, $%=7. (t went out of e5istence on 0anuary 7, $%==, having proven, mainly, that the mammoth ta59e5empt foundations have such power in the !hite /ouse, in 2ongress, and in the press that they are 8uite beyond the reach of a mere committee of the 2ongress of the +nited 'tates. (f you want to read this whole incredible (and rather terrifying) story, ( suggest .oundations, a book written by Rene A. !ormser who was general counsel to the Reece 2ommittee. /is book was published in $%=: by -he evin9Adair 2ompany. (n the final report on -a5945empt .oundations, which the late 2ongressman Reece made for his ill9fated 'pecial 2ommittee
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(Report published
ecember $&, $%=K, by the ;overnment
1rinting 3ffice), #r. Reece saidQ "#iss 2asey*s report (/earings pp. :II, et se8.) shows clearly the interlock between -he 2arnegie 4ndowment for (nternational 1eace, and some of its associated organiFations, Relations and epartment. such other (ndeed, as the these 2ouncil with on the .oreign 'tate and foundations,
foundations
organiFations would not dream of denying this interlock. -hey proudly note it in reports. -hey have undertaken vital research proGects for the epartment6 virtually created minor departments or groups within the epartment for it6 supplied advisors and e5ecutives from their ranks6 fed a constant stream of personnel into the 'tate epartment trained by themselves or under programs which they have financed6 and have had much to do with the formulation of foreign policy both in principle and detail. "-hey have, to a marked degree, acted as direct agents of the 'tate epartment. And they have engaged actively, and with the e5penditure of enormous sums, in propagandiFing (*educating*P) public opinion in support of the policies which they have helped to formulate....
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"!hat we see here is a number of large foundations, primarily -he Rockefeller .oundation, -he 2arnegie 2orporation of New Jork, and the 2arnegie 4ndowment for (nternational 1eace, using their enormous public funds to finance a one9sided approach to foreign policy and to promote it actively, among the public by propaganda, and in the ;overnment through infiltration. -he power to do this comes out of the power of the vast funds employed." #r. Reece listed -he 2ouncil on .oreign Relations, -he (nstitute of (nternational 4ducation, -he .oreign 1olicy Association, and -he (nstitute of 1acific Relations, as among the interlocking organiFations which are "agencies of these foundations," and pointed out that research and propaganda which does not support the "globalism" (or internationalism) to which all of these agencies are dedicated, receive little support from the ta59e5empt foundations. ( disagree with #r. Reece here, only in the placing of emphasis. As ( see it, the foundations (which do finance the vast, comple5, and powerful interlock of organiFations devoted to a socialist one9 world system) have, nonetheless, become the "agencies" of the principal organiFation which they financeLthe 2ouncil on .oreign Relations.
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-he Reece 2ommittee investigation threw some revealing light on the historical blackout which the 2ouncil on .oreign Relations has ordered and conducted. #en who run the 2ouncil do not want the policies and measures of .ranklin . Roosevelt to undergo the critical analysis and obGective study which e5posed the policies of !oodrow !ilson after !orld !ar (. -he 2ouncil has decided that the official propaganda of !orld !ar (( must be perpetuated as history and the public protected from learning the truth. /ence, the 2ouncil sponsors historical works which give the socialist9internationalist version of historical events prior to and during !orld !ar ((, while ignoring, or debunking, revisionist studies which attempt to tell the truth. /ere is how all of this is put in the $%K& Annual Report of the Rockefeller .oundationQ "-he 2ommittee on 'tudies of the 2ouncil on .oreign Relations is concerned that the debunking Gournalistic campaign following !orld !ar ( should not be repeated and believes that the American public deserves a clear competent statement of our basic aims and activities during the second !orld !ar."
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(n $%K&, the Rockefeller .oundation allotted H$7%,))) to the cost of a two9volume history of !orld !ar ((, written by !illiam <. <anger, a member of the 2.R, and '. 4verett ;leason. -he generous grant was supplemented by a gift of H$),))) from the Alfred 1. 'loan .oundation. -he <anger9;leason work was published by /arper and ,rothers for the 2ouncil on .oreign RelationsQ Eolume ( in $%=> under the title, -he 2hallenge -o (solationism, $%7I9$%K)6 Eolume (( in $%=7, under the title, -he +ndeclared !ar. -he 2.R*s stated purpose in bringing out this work was to head off the revisionist historians like 2harles 2allan -ansill, /arry 4lmer ,arnes, .rederic R. 'anborn, ;eorge #orgenstern, .rances Neilson. -he truth, however, is not easy to suppress. -hough written by and for the 2.R, to perpetuate that organiFation*s version of history, the <anger9;leason volumes contain a wealth of information which helps to prove the basic thesis of this present volume.
3ne thing that the ill9fated Reece 2ommittee found out in $%=79 ==, when trying to investigate the foundations, is that the ta59 e5empt organiFations are set up, not for the purpose of doing some good in our society, but for the purpose of avoiding the income ta5.
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Rene A. !ormser, in .oundation saysQ "-he chief motivation in the creation of foundations has long ceased to be pure philanthropyLit is now predominantly ta5 avoidance.... -he increasing ta5 burden on income and estates has greatly accelerated a trend toward creation of foundations as instruments for the retention of control over capital assets that would otherwise be lost.... "-he creation of a new foundation very often serves the purpose of contributing to a favorable public opinion for the person or corporation that endows it...." -he ta59e5empt organiFations have a vested interest in the oppressive, ine8uitable, and wasteful federal9income9ta5 system. -a5 e5perts have devised, for e5ample, a complicated scheme by which a wealthy man can actually save money by giving to ta59 e5empt organiFations. (n short, many of the great philanthropies which buy fame and respectability for wealthy individuals, or corporations, are ta59 avoidance schemes which, every year, add billions to the billions of private capital which is thus steriliFed. -hese accumulations of ta59e5empt billions place a heavier burden on ta5payers. Removing billions from ta5ation, the ta59e5empt organiFations
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thus obviously make ta5payers pay more in order to produce all that government demands.
-he big ta59e5empt organiFations use their ta59e5empt billions to buy prestige and power for themselves, and to bludgeon some critics into silence. .or e5ample, the .ord .oundation established the .und for the Republic with a $= million dollar grant in $%=>Lat a time when public awareness of the communist danger was seeping into the thinking of enough Americans to create a powerful anti9communist movement in this country. ,y late $%==, the .und*s activities (publicly granting awards to fifth9amendment communists and so on) had become so blatant that public indignation was rising significantly. 0ust at the right time, the .ord .oundation announced a gift of =)) million dollars to the colleges of America. NewspapersLalso beholden in many ways to the big foundationsL which will not publish news about the foundations* anti9American activities, give banner headlines to the lavish benefactions for purposes universally believed to be good. !here will you find a college administration that will not defend the .ord .oundation against all criticsLif the college has Gust received, or is in line to receive, a million9dollar gift from the
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.oundationP /ow far must you search to find college professors or school teachers who will not defend the .oundation which gives >= million dollars at one time, to raise the salaries of professors or school teachersP !here will you find a plain 0ohn oe citiFen who is not favorably
impressed that the hospitals and colleges in his community have received a multi9million dollar gift from a big foundationP 4very significant movement to destroy the American way of life has been directed and financed, in whole or in part, by ta59e5empt organiFations, which are entrenched in public opinion as benefactors of our society. !orst of allQ this tremendous power and prestige are in the hands of what Rene !ormser calls a special eliteLa group of eggheads like Robert /utchins (or worse) who neither understand nor respect the profit9motivated economic principles and the great political ideal of individual9freedom9under9limited9government which made our nation great. 3verlapping of personnel clearly shows a tight interlock between the 2ouncil on .oreign Relations and the big foundations. -he following information, concerning assets and officers of foundations, all comes from -he .oundation irectory, prepared
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by -he .oundation <ibrary 2enter and published by the Russell 'age .oundation, New Jork 2ity, $%&). .3R .3+N A-(3NQAssets totaling H7,7$&,))),))).)) (7
billion, 7$& million) on 'eptember 7), $%=%. -he -rustees of the .ord .oundation areQ 4ugene R. ,lack (2.R)6 0ames ,. ,lack6 0ames .. ,rownlee6 0ohn 2owles (2.R)6 onald C. avid (2.R)6 #ark .. 4thridge (2.R)6 ,enson .ord6 /enry .ord ((6 /. Rowan ;aither, 0r. (2.R)6 <aurence #. ;ould (2.R)6 /enry -. /eald (2.R)6 Roy 4. <arsen6 0ohn 0. #c2loy (2.R)6 0ulius A. 'tratton (2.R)6 2harles 4. !yFanski, 0r. (2.R). Note that of the $= members of the ,oard of -rustees, $) are members of the 2ouncil on .oreign Relations (2.R). .+N .3R -/4 R41+,<(2, 'anta ,arbara, 2alifornia, a
subsidiary of .ord, had assets totaling H&,&&I,)>>.)) on 'eptember 7), $%=I. 3fficers and directorsQ Robert /utchins6 1aul ;. /offman (2.R)6 4lmo Roper (2.R)6 ;eorge N. 'huster (2.R)6 /arry '. Ashmore6 ,ruce 2atton6 2harles !. 2ole (2.R)6 Arthur 0. ;oldberg6 !illiam /. 0oyce, 0r.6 #eyer Cestnbaum (2.R)6 #sgr. .rancis <ally6 /erbert /. <ehman (2.R)6 #. Albert <inton6 0. /oward #arshall6 0ubal R. 1arten6 Alicia 1atterson6 #rs. 4leanor ,. 'tevenson6 /enry 1. Ean usen (2.R). Note that I of the $: are 2.R members. R32C4.4<<4R .3+N A-(3N, $$$ !est =)th 'treet, New Jork
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>), New Jork, had assets totaling H&KI,&%K,:=:.)) on 7$, $%=:. 3fficers and -rusteesQ 0ohn . ,race6 Richard ,radfield (2.R)6 0. ,unche (2.R)6 0ohn '. (2.R)6 <ee A.
ecember
. Rockefeller 7rd (2.R)6
ean Rusk (2.R)6 ,arry ,ingham6 2hester ,owles (2.R)6 <loyd etlev !. ,ronk (2.R)6 Ralph ouglas ickey (2.R)6 <ewis !.
u,ridge6 !allace C. /arrison6 Arthur A. /oughton,
0r. (2.R)6 0ohn R. Cimberly (2.R)6 Robert .. <oeb6 Robert A. <ovett (2.R)6 ,enGamin #. #cCelway6 /enry Allen #oe6 /enry 1. Ean usen (2.R)6 !. ,arry !ood, 0r. 3f the >), $> are 2.R members. R32C4.4<<4R ,R3-/4R' .+N , 7) Rockefeller 1laFa, New Jork >), New Jork, had assets totaling H=7,$IK,>$).)) on ecember 7$, $%=:. 3fficers and -rusteesQ <aurence '. Rockefeller6 0ohn avid Rockefeller (2.R)6 etlev !. ,ronk (2.R)6 !allace C. /arrison6 Abby Rockefeller #auFe6 Abby #. 3*Neill6 . Rockefeller 7rd (2.R)6 Nelson A. Rockefeller (2.R)6 !inthrop Rockefeller. 3f the %, K are 2.R members. 2ARN4;(4 23R13RA-(3N 3. N4! J3RC, =:% .ifth Avenue, New Jork $I, New Jork, had assets totaling H>&$,>KK,KI$.)) on 'eptember 7), $%=%. 3fficers and -rusteesQ 0ohn !. ;ardner (2.R)6 #orris /adley6 0ames A. 1erkins (2.R)6 Robert .. ,acher6 2aryl 1. /askins (2.R)6 2. . 0ackson (2.R)6 evereu5 2.
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0osephs (2.R)6 Nicholas Celley (2.R)6 #alcolm A. #ac(ntyre (2.R)6 #argaret 2arnegie #iller6 .rederick 3sborn (2.R)6 ;wilym A. 1rice6 4lihu Root, 0r. (2.R)6 .rederick 'heffield6 2harles 'pofford (2.R)6 2harles Allen -homas. 3f the $&, $) are 2.R members. 2ARN4;(4 4N 3!#4N- .3R (N-4RNA-(3NA< 14A24, +nited Nations 1laFa A K&th 'treet, New Jork $I, New Jork, had a net worth of H>>,=II,$7K.)) on 0une 7), $%=:. 3fficers and -rusteesQ 0oseph 4. 0ohnson (2.R)6 !hitney North 'eymour (2.R)6 3. .rederick Nolde6 <awrence '. .inkelstein (2.R)6 Arthur C. !atson (2.R)6 0ames #. Nicely (2.R)6 avid <. 2ole6 .rederick '. illon Anderson (2.R)6 2harles 4. ,eard6 Robert ,lum (2.R)6 /arvey /. ,undy (2.R)6 unn (2.R)6 Arthur 0. ;oldberg6 4rnest A. ;ross (2.R)6 1hilip 2. 0essup (2.R)6 #ilton CatF (2.R)6 ;rayson <. Cirk (2.R)6 #rs. 2lare ,oothe <uce6 2harles A. #eyer (2.R)6 3tto <. Nelson, 0r.6 4llmore 2. 1atterson (2.R)6 /oward 2. 1etersen (2.R)6 /oward 1. Robertson6 (2.R). 3f the >&, $: are 2.R members. 2ARN4;(4 .3+N A-(3N .3R -/4 A EAN24#4N- 3. -4A2/(N;, had assets totaling H>),)K7,:=%.)) on 0une 7), $%=%. 3fficers and -rusteesQ 2arter avidson (2.R)6 0ohn !. avid Rockefeller (2.R)6 !. 0. 'chieffelin, 0r.6 ;eorge N. 'huster
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;ardner (2.R)6 0ames A. 1erkins (2.R)6 !illiam .. /ouston6 /arvie ,ranscomb6 Arthur /. ean (2.R)6 Robert .. ;oheen (2.R)6 <aurence #. ;ould (2.R)6 A. !hitney ;riswold (2.R)6 Rufus 2. /arris6 .rederick <. /ovde (2.R)6 2lark Cerr6 <awrence A. Cimpton6 ;rayson <. Cirk (2.R)6 -homas '. <amont (2.R)6 Robert A. <ovett (2.R)6 /oward .. <owry6 N. A. #. #acCenFie6 Catharine 4. #c,ride6 #illicent 2. #c(ntosh6 0ohn '. #illis (2.R)6 .ranklin . #urphy (2.R)6 Nathan #. 1usey (2.R)6 /erman ,. !ells (2.R)6 <ogan !ilson6 3. #eredith !ilson. 3f the >&, $= are 2.R members. 2ARN4;(4 (N'-(-+-4 3. !A'/(N;-3N, $=7) "1" 'treet, N.!., !ashington =, . 2., had assets totaling H:),:7:,=>:.)) on 0une 7), $%=:. 3fficers and -rusteesQ 2aryl 1. /askins (2.R)6 !alter '. ;ifford (2.R)6 ,arklie #cCee /enry6 Robert !oods ,liss (2.R)6 0ames .. ,ell6 ;eneral 3mar N. ,radley6 Eannevar ,ush6 2rawford /. ;reenewalt6 Alfred <. <oomis (2.R)6 Robert A. <ovett (2.R)6 Ceith '. #c/ugh6 #argaret 2arnegie #iller6 /enry '. #organ (2.R)6 'eeley ;. #udd6 !illiam (. #yers6 /enning !. 1rentis, 0r.6 4lihu Root, 0r. (2.R)6 /enry R. 'hepley6 2harles 1. -aft6 0uan -erry -rippe (2.R)6 0ames N. !hite6 Robert 4. !ilson. 3f the >>, : are 2.R members. A<.R4 1. '<3AN .3+N A-(3N, &7) .ifth Avenue, New Jork ecember
>), New Jork, had assets totaling H$I=,=77,$$).)) on
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7$, $%=:. 3fficers and -rusteesQ Albert ,radley (2.R)6 Alfred 1. 'loan, 0r. (2.R)6 Raymond 1. 'loan6 Arnold 0. Uurcher (2.R)6 .rank !. Abrams6 /enry 2. Ale5ander (2.R)6 !alter '. 2arpenter, 0r. (2.R)6 ;eneral <ucius 2ollyer (2.R)6 <ewis !. . 2lay (2.R)6 0ohn <. ouglas (2.R)6 .rank A. /oward6
evereu5 2. 0osephs (2.R)6 #ervin 0. Celly (2.R)6 0ames R. Cillian, 0r. (2.R)6 <aurence '. Rockefeller6 ;eorge !hitney (2.R). 3f the $&, $> are 2.R members. -/4 23##3N!4A<-/ .+N Avenue, New Jork I:, 3. N4! J3RC, ==)) #aspeth Jork, had assets totaling
New
H$$%,%)K,&$K.)) on 0une 7), $%=%. 3fficers and -rusteesQ #alcolm 1. Aldrich6 0ohn A. ;ifford6 <eo 1. ,erry6 Roger #. ,lough (2.R)6 /arry 1. /enry 2. -aylor. 3f the $), & are 2.R members. -!4N-(4-/ 24N-+RJ .+N , (N2., K$ 4ast I)th 'treet, New Jork 7, New Jork, had assets totaling H$I,=>>,KK$.)) on ecember 7$, $%=:. 3fficers and -rusteesQ Adolf A. ,erle, 0r. (2.R)6 .rancis ,iddle (2.R)6 August /eckscher (2.R)6 /ans 2hristian 'onne (2.R)6 #orris ,. Abram6 Arthur .. ,urns (2.R)6 4rwin . 2anham (2.R)6 4vans 2lark (2.R)6 ,enGamin E. 2ohen . !elch (2.R)6 ;eorge avison (2.R)6 /arold
,. /oskins6 0. Muigg Newton (2.R)6 !illiam 4. 'tevenson (2.R)6
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(2.R)6 !allace C. /arrison (2.R)6
avid 4. <ilienthal (2.R)6
Robert '. <ynd6 0ames ;. #c onald (2.R)6 0. Robert 3ppenheimer (2.R)6 4dmund 3rgill6 0ames /. Rowe, 0r.6 Arthur #. 'chlesinger, 0r. (2.R)6 /erman !. 'teinkraus6 2harles 1. -aft6 !. !. !aymack. 3f the >), $7 are 2.R members.S1g $:$T Chapter 12 "17? "1A4 CA) "( D5? 2laiming to believe in the high destiny of America as a world9 leader, our invisible government urges timid policies of appeasement and surrender which make America a world whipping9boy rather than a world leader. 2laiming to believe in the dignity and worth of the human individual, the modern liberals who run our invisible government urge an ever9growing welfare9state which is destroying individualismLwhich has already so weakened the American sense of personal responsibility that crime rates have increased %: percent in our land during the past ten years. !hyP !hy do prominent Americans support programs which are so harmfulP (t is a difficult 8uestion to answer.
'omewhere at the top of the pyramid in the invisible government
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are a few sinister people who know e5actly what they are doingQ they want America to become part of a worldwide socialist dictatorship, under the control of the Cremlin.
'ome may actually dislike communists, but feel that one9world socialism is desirable and inevitable. -hey are working with a sense of urgency for a "benign" world socialist dictatorship to forestall the Cremlin from imposing its brand of world dictatorship by force.
'ome leaders in the invisible government are brilliant and power9 hungry men who feel that the masses are unable to govern themselves and who want to set up a great dictatorship which will give them power to arrange things for the masses. -he leadership of the invisible government doubtless rests in the hands of a sinister or power9hungry few6 but its real strength is in the thousands of Americans who have been drawn into the web for other reasons. #any, if not most, of these are status9seekers.
!hen you are a rising Gunior e5ecutive, or a man of any age looking for good business and social connections, it seems good
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to go to a luncheon where you can sit at the head table and call leaders of the community by their first names. #ost of the propaganda agencies affiliated with the 2ouncil on .oreign Relations provide such opportunities for members. A businessman enGoys coming home from a black9tie affair in New Jork or !ashington where he and a few other "chosen" men have been given a "confidential, off9the9record briefing" by some high governmental official. -he 2ouncil on .oreign Relations provides such e5periences for officials of companies which contribute money to the 2.R. -his status9seeking is a way of life for thousands of American businessmen. 'ome of them would not give it up even if they knew their activities were supporting the socialist revolution, although at heart they are opposed to socialism. #ost of them, however, would withdraw from the .oreign 1olicy Association, and the !orld Affairs 2ouncils, and the 2ommittee for 4conomic evelopment, and the American Association for the +N, and the National 2onference of 2hristians and 0ews, and the Advertising 2ouncil, and similar organiFations, if they were educated to an understanding of what their membership in such organiFations really means. -he Gob of every American who knows and cares is to make sure that all of the people in the invisible government network know
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e5actly what they are doing.
,ut beyond that, what can we doP !hat can we Americans do about the 2ouncil on .oreign Relations and its countless tentacles of power and money and influence and propaganda which are wrapped around all the levers of political power in !ashington6 which reach into the schools and churches and respected civic organiFations of America6 which control maGor media of communications6 which are insinuated into controlling positions in the big unions6 and which even have a grip on the prestige and money of maGor American corporationsP (t is often suggested that investigation by the .,( might be the answer. .or e5ample, after the #arch9April -erm ($%&)) ;rand 0ury in .ulton 2ounty, ;eorgia, condemned .oreign 1olicy Association literature as "insidious and subversive" and the American <egion 1ost published -he -ruth About -he .oreign 1olicy Association to document the ;rand 0ury*s findings (see 2hapter E), supporters of the .oreign 1olicy Association denounced the legionnaires, saying, in effect, that if there were a need to investigate the .1A, the investigation should be done in proper, legal manner by trained .,( professionals and not by "vigilantes" and "amateurs" and "bigoted ignoramuses" on some committee of an American
ccl55iv
<egion 1ost. -his is an effective propaganda techni8ue. (t gives many the idea that the organiFation under criticism has nothing to hide and is willing to have all its activities thoroughly investigated, if the investigation is conducted properly and decently.
,ut the fact is that the .,( has no Gurisdiction to investigate the kind of activities engaged in by the .oreign 1olicy Association and its related and affiliated organiFations. -he .oreign 1olicy Association is not a communist organiFation. (f it were, it could be handled easily. -he Attorney ;eneral and the committees of 2ongress could simply post it as a communist organiFation. -hen, it would receive support only from people who are conscious instruments of the communist conspiracy6 and there are not, relatively, very many of those in the +nited 'tates. -he .1A*s 2ouncils on !orld Affairs are supported by patriotic community leaders. Jet, these 2ouncils have done more than all communistshave ever managed to do, in brainwashing the American people with propaganda for governmental intervention in the economic affairs of the people, and for endless permanent entanglement in the affairs of foreign nationsLthus preparing this nation for submergence in a one9world socialist system, which is the obGective of communism.
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(nasmuch
as
the
invisible
government
is
composed
of
organiFations which enGoy the special privilege of federal ta59 e5emption (a privilege seldom given to organiFations advocating return to traditional American policies) it is often suggested that public pressures might persuade the -reasury epartment to withdraw the ta59e5empt privilege from these organiFations. /ow could the -reasury controls the epartment ever be persuaded to take ouglas illon, 'ecretary of the
action against the 2ouncil on .oreign Relations, when the 2ouncil epartmentP -reasury, is a member of the 2.R. (t is impractical to think of getting -reasury be dangerous. A governmental agency which has limitless power to withdraw special ta59privileges must also have limitless power to grant special privileges. -he -reasury epartment could destroy all of the organiFations composing the invisible government interlock by the simple action of withdrawing the ta59e5empt privilege, thus drying up maGor sources of revenue. ,ut the -reasury e5emption to other organiFations. epartment could then create another .rankenstein monster by giving ta59 epartment action
against the 2.R. #oreover, such a solution to the problem could
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(t is often suggested that some congressional committee investigate the 2ouncil on .oreign Relations and the network of organiFations interlocked with it. Jet, as we have seen, two different committees of 2ongressLone emocrat9controlled and one Republican9controlledLhave tried to investigate the big ta59e5empt foundations which are interlocked with, and controlled by, and provide the primary source of revenue for, the 2ouncil on .oreign Relations and its affiliates. ,oth committees were gutted with ridicule and vicious
denunciation, not Gust by the official communist party press, but by internationalists in the 2ongress, by spokesmen for the e5ecutive branch of government, and by big respected publishing and broadcasting firms which are a part of the controlled propaganda network of the 2ouncil on .oreign Relations.
-he invisible government is not, however, beyond the reach of the whole 2ongress, if the 2ongress has the spur and support of an informed public. 3ur only hope lies in the 2ongress which is responsive to public will, when that will is fully and insistently e5pressed. 4very time ( suggest that aroused citiFens write their
2ongressmen and 'enators, ( get complaints from people who
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say they have been writing for years and that it does no good. Jet, remember the 2onnally Reservation issue in 0anuary, $%&). -he /umphrey Resolution (to repeal the 2onnally Reservation and thus permit the !orld 2ourt to assume unlimited Gurisdiction over American affairs) was before the 'enate .oreign Relations 2ommittee. -he 2hairman of this 2ommittee was 0. !illiam .ulbright ( emocrat, Arkansas) a Rhodes9scholar internationalist, determined to repeal the 2onnally Reservation. <eaders in 2ongress and in the Administration were determined to repeal the 2onnally Reservation, and so was the invisible government of the +nited 'tatesLwhich means that the vast thought9controlling machine of the 2.R (radio and television networks6 maGor newspapers and magaFines6 and an imposing array of civic, church, professional, and "educational" organiFations) had been in high gear for many months, saturating the public with "world9 peace9through9world9law" propaganda intended to shame and scare the public into accepting repeal of the 2onnally Reservation. ,ut word got out, and the American public positively 'tunned 2ongress with protests. .ulbright let the resolution die in committee. -he e5pression of public will was massive and e5plosive in connection with the 2onnally Reservation, whereas in connection
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with many other e8ually important issues, the public seems indifferent. -he reason is that the 2onnally Reservation is a simple issue. (t is easy for a voter to write or wire his elected representatives saying, "<et*s keep the 2onnally Reservation"6 or, "(f you vote for repeal of the 2onnally Reservation, (*ll vote against you." !hat kind of wire or letter can a voter send his elected representatives concerning the bigger and more important issue which ( have labeled "(nvisible ;overnment"P -he ultimate solution lies in many sweeping and profound changes in the policies of government, which cannot be effected until a great many more Americans have learned a great deal more about the American constitutional system than they know now.
,ut there is certain action which the people could demand of 2ongress immediately6 and every 2ongressman and 'enator who refuses to support such action could be voted out of office the ne5t time he stands for re9election. $. !e should demand that 2ongress amend the (nternal Revenue 2ode in such a way that no agency of the e5ecutive branch of government will have the power to
ccl55i5
grant federal ta59e5emption. -he 2onstitution gives the power of ta5ation only to the 2ongress. /ence, only 2ongress should have the power to grant e5emption from ta5ation. (nstead of permitting the (nternal Revenue 'ervice of the -reasury epartment to decide whether a foundation or any other organiFation shall have federal ta59e5emption, 2ongress should e5ercise this power, fully publiciFing and fre8uently reviewing all grants of ta59e5emption. >. (n addition to demanding that 2ongress take the power of granting and withholding federal ta59e5emption away from the e5ecutive agencies, voters should demand that the /ouse of Representatives form a special committee to investigate the 2ouncil on .oreign Relations and its associated foundations and other organiFations. -he investigation should be conducted for the same purpose that the great #c2arran investigation of the (nstitute of 1acific Relations was conductedLthat is, to identify the people and organiFations involved and to provide an authentic record, of the invisible government*s aims and programs, and personnel, for the public to see and study. 'uch an investigation, if properly
ccl555
conducted, would thoroughly discredit the invisible government in the eyes of the American people.
-here is, however, only one sure and final way to stop this great and growing evilLand that is to cut it out as if it were cancerous, which it is. -he only way to cut it out is to eliminate the income9ta5 system which spawned it. -he federal income9ta5 system suckles the forces which are destroying our free and independent republic. Abolish the system, and the sucklings will die of starvation. -hat is the ultimate remedy, but before we can compel 2ongress to provide this remedy, we must have an educated electorate. -he problem of educating the public is greatLnot because of the inability of the people to understand, but because of the difficulty of reaching them with the freedom story. (f the federal government, during the $%&> fiscal year, had not collected one penny in ta5 on personal incomes, the government would still have had more ta5 revenue from other sources than the total of what /arry -ruman collected in his most e5travagant peacetime spending year. 4very American, who knows that, can readily understand the possibility and the necessity of repealing the federal ta5 on personal incomes. ,ut how many Americans
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know those simple factsP -he Gob of everyone who knows and cares is to get such facts to others.
4ven if we did take action to divest the 2ouncil on .oreign Relations and its powerful interlock of control over our government6 and even if we did reverse the policies which are now dragging us into a one9world socialist dictatorshipLwhat would we do about some of the dangerous messes which our policies already have us involved inP !hat, for e5ample, could we do about 2ubaP About ,erlinP (n some ways, the policies of our invisible government have taken us beyond the point of no return. 2onsider the problem of 2uba. Armed intervention in the affairs of another nation violates the principles of the traditional American policy of benign neutrality, to which ( think our nation should return. Jet, our intervention in 2uban affairs (on the side of communism) has produced such a dangerous condition that we should now intervene with armed might in the interest of our own survival.
.or si5teen years, we have seen the disastrous fallacy of trying to handle the foreign affairs of our great nation through international agencies. -his leaves us without a policy of our own, and makes it
ccl555ii
impossible for us to take any action in our own interest or against the interests of communism, because communists have more actual votes, and infinitely more influence, in all the international agencies than we have. At the same time, our enemies, the communist nations, set and the follow their own agencies policies, which contemptuously ignoring international
hamstring America and bleed American ta5payers for subsidies to our mortal enemies. America must do two things soon if she e5pects to survive as a free and independent nationQ ($) !e must withdraw from membership in all international, governmental, or 8uasi9governmental, organiFationsLincluding, specifically, the !orld 2ourt, the +nited Nations, and all +N specialiFed agencies. (>) !e must act vigorously, unilaterally, and 8uickly, to protect vital American security interests in the !estern /emisphereLparticularly in 2uba. !e have already passed the time when we can act in 2uba easily and at no risk6 but if we have any sane, manly concern for protecting the vital security of the American nation and the lives and property of +nited 'tates citiFens, we had better do the only thing left for us to doQ send overwhelming American military force to take 2uba over 8uickly, and keep it under American military occupation, as beneficently as possible, until the 2uban people
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can hold free elections to select their own government. -he other nations of the world would scream6 but they would, nonetheless, respect us. 'uch action in our own interests is the only thing that will restore our "prestige" in the worldLand restore American military security in the !estern /emisphere.
!hat should we do about ,erlinP -he ,erlin problem must be solved soon, because it is too effectively serving the purpose for which it was created in the first placeQ to Gustify whatever programs the various governments involved want to pursue. (t sometimes looks as if the Cremlin and !ashington officialdom are working hand9in9glove to deceive the people of both nations, turning the ,erlin "crisis" on and off to cover up failures and to provide e5cuses for more adventures. ,erlin will cause a world war only when the +nited 'tates is willing to go to war with the 'oviet +nion to free ,erlin from the trap it is in. (f we won*t defend our own vital interests against the aggressive and arrogant actions of communists %) miles from our shores, what would prompt us to cross the ocean and defend ;ermans from communistsP -he cold fact of the matter is that we should not defend ,erlin.
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-his is a Gob for ;ermans, not Americans. -he ;ermans are an able and prosperous people. -hey are capable of fighting their own war, if war is necessary to protect them from communism. (t is inaccurate to refer to the eastern part of ;ermany as "communist ;ermany." -hat part of ;ermany is under communist enslavement6 but the ;ermans who live there probably hate communists more than any other people on earth do. -he uprisings of $%=7, and the endless stream of refugees fleeing from the communist Fone in ;ermany, are proof enough that the communists could not hold 4ast ;ermany without the presence of 'oviet troops. -here is enough hunger and poverty and hatred of communism in eastern ;ermany to Gustify the conclusion that even Chrushchev knows he has a bear by the tail there. (f we would do our part, Chrushchev would either turn loose and run6 or the bear would pull loose and destroy Chrushchev. !hat part should we playP !e should do e5actly what the 1resident and the 'tate ultimatum. !e should call an immediate conference with the governments of epartment assure the world they will not doQ we should present the 'oviets with a fait accompli, and an
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.rance, 4ngland, and !est ;ermany to e5plain that America has devoted $& years and many billions of dollars to rehabilitating and defending western 4urope6 that 4urope is now in many ways more soundly prosperous than we are6 that the $:) million Americans can no longer be e5pected to ruin their own economy and neglect the defense of their own homeland for the purpose of assisting and defending the >>= million people of !estern 4urope6 and that, therefore, we are through. !e have no need, at home, for all of the vast stores of military e8uipment which we now have in 4urope for the defense of 4urope. !hat we do not need for the defense of our homeland, we should offer as a gift to !est ;ermany, since we produced the material in the first place for the purpose of resisting communism, and since the !est ;ermans are the only people in !estern 4urope who apparently want to resist it. !e should give the !est ;ermans (and the other western powers) si5 months to train whatever manpower they want for manning their own defenses. At the end of that time, we should pull out and devote ourselves to defending America. !ith or without the consent of .rance and 4ngland, we should sign a peace treaty with the government of !estern ;ermany, recogniFing it as the lawful government of all ;ermany and imposing no restrictions on the sovereignty of ;ermanyLthat is,
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leaving ;ermany free to arm as it pleases. (mmediately following the signing of this treaty, we should announce to the world that, when we pull out of 4urope at the end of si5 months, we e5pect the 'oviets to pull out of ;ermany entirely. (f, within one week after we effect our withdrawal, the 'oviets are not outLor if they later come back in, against the wishes of the ;erman nationLwe should break off diplomatic relations with all communist countries6 deny all representatives of all communist nations access to +nited Nations head8uarters which are on +nited 'tates soil6 and e5ert ma5imum pressures throughout the world to isolate all communist countries, economically countries. -hat is an American plan, which would solve the ;erman "problem" in the interests of peace and freedom. and diplomatically, from all non9communist
#any Americans, who see what the solution to our grave problems ought to be, have lost hope that we will ever achieve such solution, because, in the end, the solution rests with the people. (t is the people who must compel their elected representatives to make a thorough investigation of the 2ouncil on .oreign Relations
ccl555vii
and its interlock. (t is the people who must compel 2ongress to deny administrative Agencies of government the unconstitutional power of granting ta59e5emption. (t is the people who must compel 2ongress to submit a constitutional amendment calling for repeal of the income ta5 amendment. (t is the people who must compel !ashington officialdom to do what is right and best for America in foreign affairs, especially in 2uba and ,erlin. #any Americans are in despair because they feel that the people will never do these things. -hese pessimists seem to share the late /arry /opkins* conviction that the American people are too dumb to think. ( do not believe it. ( subscribe to the marvelous doctrine of -homas 0efferson, who saidQ "( know no safe depository of the ultimate powers of society but the people themselves6 and if we think them not enlightened enough to e5ercise their control with a wholesome discretion, the remedy is not to take it from them, but to inform their discretion by education."
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thought/provoking 0+,!,, (book or ree 1(R(2

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about thirty men.B

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'ettlements (,(') in ,asel, 'witFerland.

(cke writes in 2hildren of the #atri5, that the Rockefellers and

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which had gobbled up several large banks and corporations by

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ulles and Rockefeller families are cousins. Allen

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2nited +tates 0m"assador to =ugos!avia

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4able of Contents 3reface

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'tate 4dward R. 'tettinius, <eo 1asvolsky, 0ohn .oster

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since $%>=6 but from $%K= to $%K:, he was out of government

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Adlai 'tevenson, +nited Nations Ambassador6 Allen !.

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