Tower of Basel: The Shadowy History of the Secret Bank That Runs the World (45 page)

2.
Thomas McKittrick interview, July 1964. John Foster Dulles Oral History Collection at Seeley G. Mudd Manuscript Library, Princeton University Library, 45.

3.
McKittrick to Aldrich, Dec. 12, 1945. Thomas H. McKittrick Papers. Harvard University Business School, Baker Library Series 2, Carton 8, Folder 18, Reel 18.

4.
Allen Dulles, “The Future of Germany,”
The Commercial & Financial Chronicle
, vol. 163, no. 4458. Author’s collection, with thanks to Christopher Simpson.

5.
Accessed at
http://www.oecd.org/general/organisationforeuropeaneconomicco-operation.htm
.

6.
McKittrick interview, 45.

7.
James M. Boughton, “Harry Dexter White and the International Monetary Fund,”
Finance and Development
magazine, September 1998.

8.
R. Bruce Craig,
Treasonable Doubt: The Harry Dexter White Spy Case
(Lawrence, KS: University Press of Kansas, 2004).

9.
James C. Van Hook, “Review of Treasonable Doubt: The Harry Dexter White Spy Case by R. Bruce Craig,”
Studies in Intelligence
, vol. 49, no. 1, April 2007.

10.
Accessed at
http://usa.usembassy.de/etexts/ga4-mccloy.htm
.

11.
Robert Taylor Swaine, “The Cravath Firm and its Predecessors 1819–1947,”
The Lawbook Exchange Ltd
, New Jersey, 611.

12.
Ibid., 610–611.

13.
“Alkali Exporters Held Trade Cartel,”
New York Times
, August 13, 1949.

14.
Rudolf Vrba and Alfred Wexler, two Jewish inmates, escaped from Auschwitz in April 1944. They wrote a detailed, thirty-page report about conditions inside the camp, the operations of the gas chambers, and the preparations for the extermination of Hungarian Jewry. The document, known as the “Auschwitz Protocol,” was distributed to the Vatican, the International Committee of the Red Cross, Allied governments, and Jewish leaders. See Martin Gilbert,
Auschwitz and the Allies
(London: Michael Joseph, 1981).

15.
David S. Wyman,
The Abandonment of the Jews
(NY: Pantheon, 1948), 296.

16.
Harriman interview, ibid.

17.
May to J. W. Pehle, Treasury official, August 18, 1941; Examiner’s report, October 5, 1942. NARA. Author’s collection.

18.
Federal Register, Vesting Order 248, November 7, 1942, page 9097, author’s collection)

CHAPTER TEN: ALL IS FORGIVEN

1.
Major Donald MacLaren, “Brief for the De-Nazification of the German Chemical Industry,” Part III, Dossiers of Principal IG Farben Officials, Hermann Schmitz. December 1, 1945. Author’s collection.

2.
Ron Chernow,
The Warburgs
(NY: Vintage, 1994), 501–502.

3.
Ibid., 583.

4.
David R. Henderson, “German Economic Miracle: The Concise Encyclopedia of Economics,” available at
http://www.econlib.org/library/Enc/GermanEconomicMiracle.html
.

5.
Author telephone interview with Dr. Adam Tooze, author of
The Wages of Destruction: The Making and Breaking of the Nazi Economy
(NY: Penguin, 2009), May 2009.

6.
Quoted in Weitz, 314.

7.
David Marsh,
The Bundesbank
(London: Heinemann, 1992), 19.

8.
Ibid., 137.

9.
Tom Bower,
Blind Eye to Murder: Britain, America and the Purging of Nazi Germany
(London: Andre Deutsch, 1981), 18. Bower’s information is based on his interview with Hermann Abs.

10.
Ibid., 15.

11.
Ibid.

12.
See Harold James:
The Deutsche Bank and the Nazi Economic War Against the Jews
. (London: Cambridge University Press, 1981).

13.
Alfred C. Mierzejewski,
Ludwig Erhard
(Chapel Hill: Univ. of North Carolina Press, 2006), 19–22.

14.
John Easton, Economic Warfare Division, to Secretary of State, London, November 27, 1944. NARA. Author’s collection.

15.
Henry Morgenthau diaries, Book 755, Bretton Woods, July 16–18, 1944, pages 9 and 21.

16.
Ibid.

17.
Dulles cable, March 21, 1945. NARA. RG 226, Entry 134, Box 162.

18.
Donald MacLaren, Brief for the De-Nazification of the German Chemical Industry, Introduction, December 1, 1945. Author’s collection.

19.
Otto Ambros, Wollheim Memorial. Available at
http://www.wollheim-memorial.de/en/otto_ambros_19011990
.

20.
Kai Bird,
The Chairman: John J. McCloy and the Making of the American Establishment
(NY: Simon and Schuster, 1992), 369–371.

21.
Jeffreys, 346.

22.
Chernow,
The Warburgs
, 576–577.

23.
Simpson, 146–147.

24.
Ibid., 136–137.

25.
Murphy to Secretary of State, December 10, 1945. NARA. RG 59, Lot 61, D33, Box 1, file “War Crimes, International Military Tribunal folder A-1.”

26.
Harrison to Secretary of State, December 13, 1945. NARA. RG 59, Lot 61, D33, Box 1, file “War Crimes, International Military Tribunal folder A-1.”

27.
Simpson, 228–229.

28.
Ibid., 235.

29.
Bower,
Blind Eye to Murder
, 347.

30.
Priscilla Norman, letter to
The Times (of London)
, July 17, 1981.

31.
Peregrine Worsthorne interview with Rosie Whitehouse for author, March 2012.

32.
Weitz, 333–334.

CHAPTER ELEVEN: THE GERMAN PHOENIX ARISES

1.
Speech by John McCloy, “Germany in a United Europe,”
Information Bulletin
, May 1950. Available at
http://digicoll.library.wisc.edu/cgi-bin/History/History-idx?type=turn&entity=History.omg1950May.p0041&id=History.omg1950May&isize=text
.

2.
Paul Hoffman speech to OEEC Council, October 31, 1949. Available at
www.let.leidenuniv.nl/pdf/geschiedenis/eu-history/EU_03.doc
.

3.
Jacobssen, 401.

4.
Ibid., 157.

5.
David W. Ellwood, “The Propaganda of the Marshall Plan in Italy in a Cold War Context,” in Giles Scott-Smith and Hans Krabbendam, eds.,
The Cultural Cold War in Western Europe, 1945–1960
(Independence, KY: Frank Cass Publishing, 2004), 225.

6.
Author interview with Alexandre Lamfalussy, in Brussels, March 18, 2010. Available at
http://www.cvce.eu/obj/interview_with_alexandre_lamfalussy_the_bis_the_committee_of_governors_of_the_central_banks_of_the_member_states_of_the_eec_and_the_delors_committee_brussels_18_march_2010-en-72964f36-a638-47c8-8af4-f40a938e7420.html
.

7.
John Singleton,
Central Banking in the Twentieth Century
(NY: Cambridge University Press), 156–157.

8.
Richard Hall, interview with the author, December 2012.

9.
Toniolo, 333.

10.
See the website of the European Commission at
http://eacea.ec.europa.eu/llp/funding/2012/call_jean_monnet_action_ka1_2012_en.php
.

11.
Bird, 72.

12.
Trygve Ugland,
Jean Monnet and Canada: Early Travels and the Idea of European Unity
(Toronto: Univ. of Toronto Press, 2011).

13.
Interview with Albert Connolly. European University Institute, Int 549, Jean Monnet Statesman of Interdependence Collection. Available at
http://www.eui.eu/HAEU/OralHistory/bin/CreaInt.asp?rc=INT549
.

14.
Preussen, 119.

15.
Lisagor and Lipsius, 111.

16.
Preussen, 309.

17.
Ibid., 310–311.

18.
Interview with Jelle Zijlstra. European University Institute, Int 534, Jean Monnet Statesman of Interdependence Collection. Available at
http://www.eui.eu/HAEU/OralHistory/bin/CreaInt.asp?rc=INT534
.

19.
Zijlstra interview, ibid.

20.
Richard J. Aldrich, “OSS, CIA and European Unity: The American Committee on United Europe, 1948–1960,”
Diplomacy & Statecraft
, vol. 8, no. 1 (1997):208.

21.
Speech by McCloy, “Germany in a United Europe.”

22.
Ambrose Evans-Pritchard, “Euro-Federalists Financed by US Spy Chiefs,”
Daily Telegraph
, September 19, 2000.

23.
BIS Annual Report, 1956, 229.

24.
Ibid.

25.
Trial of Walther Funk, May 6, 1946. Available at
http://avalon.law.yale.edu/imt/05-06-46.asp
.

26.
Banking with Hitler
, from the BBC Timewatch series, produced by Paul Elston, 1998.

27.
Donald MacLaren, brief for the De-Nazification of the German Chemical Industry, Introduction, December 1, 1945. Author’s collection.

28.
Ibid.

CHAPTER TWELVE: THE RISE OF THE DESK-MURDERERS

1.
David Marsh,
The Bundesbank: The Bank That Rules Europe
(London: Heineman, 1992), 55. Marsh notes that British officials were less enthusiastic about the German banker, describing him as a “mixed Blessing”.

2.
Charles Coombs,
The Arena of International Finance
(NY: John Wiley, 1976). All of Coombs quotes are taken from his memoir, mainly from Chapter 3: The Basel Meetings.

3.
Ibid., 27.

4.
Marsh, 91.

5.
Ibid., 54.

6.
Bower, 15.

7.
Marsh, 52–53.

8.
Simpson,
The Splendid Blond Beast: Money, Law and Genocide in the Twentieth Century
. (Monroe, ME: Common Courage Press, 1995), 224.

9.
Ibid., 225.

10.
Allen Dulles to Joseph Dodge, September 20, 1945. NARA. OMGUS-FINAD. RG260, Box 237. File: Johannes Tuengeler. The extracts from the bankers’ biographies are taken from this document. The author is grateful to Christopher Simpson for generously supplying copies of this document, which he unearthed in the US National Archives.

11.
Dulles to Dodge, September 20 1945.

12.
Petersen, 426–427.

13.
Ibid., 628.

14.
Toniolo, 377.

15.
Coombs, 26.

16.
Toniolo, 402.

17.
Eric Roll, Obituary of Hermann Abs, the
Independent
, February 8, 1994.

18.
Marsh, 51–52.

19.
Chernow, 664.

20.
“Karl Blessing Is Dead at 71; Led West German Central Bank,”
New York Times
, April 27, 1971.

CHAPTER THIRTEEN: THE TOWER ARISES

1.
Edward Jay Epstein, “Ruling the World of Money,”
Harper’s
, November 1983.

2.
See Ron Chernow’s biography of the Warburg family,
The Warburgs: The Twentieth-Century Odyssey of a Remarkable Jewish Family
(NY: Vintage, 1994).

3.
Author interview with Richard Hall, December 2012.

4.
Toniolo, 362.

5.
Epstein, “Ruling the World of Money.”

6.
Author interview with Frigyes Hárshegyi, in Budapest, December 2012.

7.
James M. Boughton, “Silent Revolution: The International Monetary Fund,” (Washington, DC: IMF, 2001), 324.

8.
Author interview with Hárshegyi, December 2012.

9.
Boughton, 293.

10.
Author interview with Richard Hall, December 2012.

11.
David M. Andrews, “Command and Control in the Committee of Governors: Leadership, Staff and Preparations for EMU,” European University Institute, 2003.

12.
Alexandre Lamfalussy interview, Brussels, March 8, 2010. “The BIS, the Committee of Governors of the Central Banks of the EEC, and the Delors Committee,” available online at:
www.cvce.eu
.

13.
Ibid.

14.
Ibid.

15.
Harold James,
Making the European Monetary Union
(Cambridge, MA: Harvard University Press, 2012), 249.

16.
Ibid.

17.
Boughton, 329.

CHAPTER FOURTEEN: THE SECOND TOWER

1.
John Laughlan,
The Tainted Source
(London: Warner Books, 1997), 32.

2.
Stephen Haseler,
Super-State: The New Europe and its Challenge to America
(London: I. B. Taurus, 2004), 80.

3.
Antony Beevor, “Europe’s Long Shadow,”
Prospect
, December 2012.