For The Record

FTR #532 Interview with John Loftus

about Unholy Trin­ity and Intel­li­gence Summit

Recorded Novem­ber 6, 2005
REALAUDIO

In this inter­view with the heroic John Lof­tus, we revisit the sub­jects of the Vat­i­can Bank and the Vatican’s long involve­ment with fas­cism. After dis­cussing a sum­mit that John is help­ing to arrange between mem­bers of the intel­li­gence com­mu­nity and mem­bers of the gen­eral pub­lic to dis­cuss the war on ter­ror, the pro­gram focuses on John’s land­mark book Unholy Trin­ity and a law­suit he helped to file against the Vat­i­can Bank for loot­ing the wealth of Holo­caust vic­tims, aid­ing the escape of Nazi war crim­i­nals, and using the stolen money and the fugi­tives to wage covert oper­a­tions dur­ing the Cold War. In Unholy Trin­ity, John (and his co-author Mark Aarons) doc­u­ment a long his­tory of col­lu­sion between the Vat­i­can and Nazi Ger­many, going back to the imme­di­ate after­math of World War I. After invest­ing mil­lions of dol­lars in Ger­man (later Nazi) indus­try, the Vat­i­can col­lab­o­rated with U.S. cor­po­rate inter­ests to safe­guard the Nazi trea­sury, spir­it­ing the wealth out of Europe after the War. This cap­i­tal was recy­cled back to Ger­many in the 1950’s and was used to fund the so-called “Ger­man eco­nomic miracle”—that country’s eco­nomic revival. (Vet­eran lis­ten­ers will rec­og­nize this concatenation’s posi­tion within the con­stel­la­tion of the Bor­mann flight-capital pro­gram.) Much of the pro­gram focuses on the Vatican’s “Ratlines”—the escape net­works that were set up to help fugi­tive Nazis escape jus­tice. Many of the most noto­ri­ous Nazi war crim­i­nals escaped with the help of this net­work, which was oper­ated with the knowl­edge and bless­ings of the high­est offi­cials of the Church.

Pro­gram High­lights Include: The decades-long col­lab­o­ra­tion between the Vat­i­can and the pow­er­ful Wall Street law firm of Sul­li­van & Cromwell in pro­tect­ing their mutual invest­ment in Nazi indus­try; the his­tory of US cor­po­rate invest­ments in Nazi Ger­many; the involve­ment of West­ern (includ­ing Amer­i­can) intel­li­gence agen­cies in the oper­a­tion of the Rat­lines; the role of Argen­tine dic­ta­tor Juan Peron in the exo­dus of Nazi cap­i­tal and fugi­tive war crim­i­nals from Europe; the role of the World Com­merce Cor­po­ra­tion in the flight of Nazi wealth from Europe after the war; the shel­ter­ing of some of the worst Nazi crim­i­nals in the Pope’s sum­mer res­i­dence at Castel­gan­dolfo; the con­tin­u­ing cover-up by the gov­ern­ment of Argentina in that country’s con­spir­acy to aid fugi­tive Nazis; the con­tin­u­ing cover-up by Vat­i­can related ele­ments in Italy of the true extent of Church com­plic­ity in the escape of fugi­tive Nazis; the chan­nel­ing of Vat­i­can money to Hitler in 1919; the role of Popes Pius XII and Paul VI in the Vatican/Nazi conspiracy.

1. The broad­cast begins with John’s dis­cus­sion of a project with which he’s involved called “Intel­li­gence Sum­mit.” This is a meet­ing sched­uled for Pres­i­dents’ Day Week­end in 2006 in Wash­ing­ton D.C. Bring­ing together ele­ments of the intel­li­gence com­mu­ni­ties of numer­ous coun­tries, the gath­er­ing offers the oppor­tu­nity for mem­bers of the work­ing press and the gen­eral pub­lic to share infor­ma­tion with these intel­li­gence pro­fes­sion­als, and vice versa. The only stip­u­la­tion is that non-intelligence atten­dees can­not divulge the infor­ma­tion that they learn there any­where else. For more infor­ma­tion, see: http://www.intelligencesummit.org.

2. The bal­ance of the pro­gram con­sists of dis­cus­sion and analy­sis of John’s book Unholy Trin­ity: The Vat­i­can, The Nazis and the Swiss Banks (co-authored with Mark Aarons.) Before dis­cussing the book, we noted the rein­state­ment of a law­suit for which John was the intel­li­gence adviser. Note that the law­suit was rein­stated by an Amer­i­can appel­late court at the same time as Car­di­nal Ratzinger was appointed Pope. (For more about the Pope’s inter­est­ing back­ground, see FTR#508.) “A fed­eral appeals court stepped into the con­tro­versy over the Catholic Church’s rela­tions with Nazi regimes dur­ing World War II on Mon­day, rein­stat­ing a law­suit by Holo­caust sur­vivors against the Vat­i­can Bank for allegedly prof­it­ing from prop­erty looted by the Ustasha pup­pet gov­ern­ment in Croa­tia. . . .”
(“Court Revives Suit Against Vat­i­can Bank” by Bob Egelko; San Fran­cisco Chron­i­cle; 4/19/2005; p. A6.)

3. “ . . . The Ustasha took power in Croa­tia after the Ger­man inva­sion in 1941 and estab­lished death camps in which as many as 700,000 peo­ple, mostly Serbs, were killed, accord­ing to a U.S. gov­ern­ment report cited by the court. A sep­a­rate State Depart­ment report said Ustasha lead­ers found sanc­tu­ary in a papal insti­tu­tion in Rome after the war, with a trea­sury of over $80 mil­lion. The suit claims much of the money had been stolen from Serbs, Jews, Gyp­sies, Ukraini­ans and oth­ers under Ustasha dom­i­na­tion and was kept in the Vat­i­can Bank, where it was used in part to finance the relo­ca­tion of Nazi fugi­tives. [Ital­ics are Mr. Emory’s.] The plaintiffs—who seek class-action sta­tus on behalf of all those affected—want resti­tu­tion of their losses and any prof­its gained by the bank. . . .” (Idem.)

4. After dis­cussing John’s law­suit, the pro­gram high­lights Unholy Trin­ity. Barred from writ­ing about the Vatican/Nazi/intelligence con­nec­tions because of his high secu­rity clear­ances, John and asso­ciates recruited a young man of Croa­t­ian her­itage, who spoke flu­ent Serbo-Croatian. Pos­ing as a young Ustashi enthu­si­ast, he was able to inter­view some of the sur­viv­ing vil­lains of the Vatican/Croatian/Nazi col­lab­o­ra­tion. Think­ing him to be a kin­dred soul, they “spilled the beans” into a tape-recorded micro­phone. With the veil of secrecy hav­ing been thus breached, John received clear­ance to go ahead with the pub­li­ca­tion of his book.

5. Next, the pro­gram turns to dis­cus­sion of the gen­e­sis of the Nazi/Vatican Bank con­nec­tion, which is at the foun­da­tion of Lof­tus’ law­suit. The story begins with the Webb/Pomerene act—a loop­hole in the Amer­i­can anti-trust leg­is­la­tion that legal­izes the for­ma­tion of car­tels (inter­na­tional monop­o­lies.) In pos­ses­sion of the tremen­dous wealth of the U.S. boom that began with World War I and con­tin­ued through the 1920’s, the “Rob­ber Barons” of the Amer­i­can power elite were free to net­work with their coun­ter­parts abroad (chiefly in Ger­many and Japan) in order to monop­o­lize inter­na­tional world trade. “ . . . The 1920’s and early 1930’s were a prof­itable time for Amer­i­can investors in Ger­many. The break-up of the Amer­i­can car­tels at the end of the nine­teenth cen­tury, fol­lowed by Teddy Roosevelt’s ‘trust-busting’ leg­is­la­tion in the 1910’s, induced the early multi­na­tional cor­po­ra­tions to seek a more friendly clime off­shore. Ger­many not only per­mit­ted car­tels and ver­ti­cal monop­o­lies, it encour­aged them as a means to rebuild its indus­trial might after the dev­as­ta­tion of World War I and the Ver­sailles repa­ra­tions.” (Unholy Trin­ity; p. 291.)

6. “More­over, from the late 1920’s the Ger­man econ­omy, although cash poor, was sci­en­tif­i­cally advanced. As the Weimar Repub­lic began to dis­in­te­grate under the weight of inter­nal chaos and exter­nal greed, Ger­man sci­en­tists, spon­sored by Ger­man cor­po­ra­tions, led the world in research in physics, chem­istry, and biol­ogy. So esteemed was the Ger­man intel­lec­tual edge at the end of the 1920’s that Amer­i­can sci­en­tists who wished to make their mark would take their advanced degree at a Ger­man uni­ver­sity.” (Idem.)

7. “Effec­tively, Ger­many had a vir­tual high-tech monop­oly on advanced pro­duc­tion tech­niques, rigidly rein­forced through a sys­tem of world­wide patents that gave it a decided advan­tage. If the Du Pont Cor­po­ra­tion, for exam­ple, wanted a license for chem­i­cal processes, it had to deal with Berlin.” (Idem.)

8. At the epi­cen­ter of the Nazi money/Vatican/Robber Baron con­nec­tion is Sul­li­van & Cromwell, the pow­er­ful white-shoe law firm, whose best known part­ners were Allen and John Fos­ter Dulles. (Under Pres­i­dent Eisen­hower, Allen Dulles became CIA direc­tor, while John Fos­ter became Sec­re­tary of State.) As dis­cussed in (among other pro­grams) FTR#361, Allen Dulles han­dled the Bush family’s invest­ments in Nazi Ger­many. “Sul­li­van & Cromwell’s Amer­i­can clients, in turn, had some­thing that the Ger­mans wanted badly: gold. Under the Ver­sailles Treaty, Ger­many had to pay its repa­ra­tions to the Allies in gold bul­lion. In 1924, Sul­li­van & Cromwell stepped into the breach with the inge­nious Dawes Plan. In its sim­plest form, the Dulles broth­ers’ clients would loan gold to Ger­many, so that it could repay its repa­ra­tions to France and Britain, which would then recy­cle the Amer­i­can gold to repay their war loans to Amer­ica. It was a crazy merry-go-round, but it worked.” (Ibid.; pp. 291–292.)

9. “The attrac­tion for Sul­li­van & Cromwell’s clients was that the Ger­mans paid off the orig­i­nal Amer­i­can gold loans with stock in Ger­man cor­po­ra­tions. Unlike the hyper­in­flated Deutsch mark, Ger­man stocks and bonds were far from worth­less, as they were backed by the very patents and trade secrets that Amer­i­can indus­try so des­per­ately sought. With the crash of 1929, the Amer­i­can econ­omy went into the Great Depres­sion, but simul­ta­ne­ously Sul­li­van & Cromwell’s clients poured bil­lions into the Ger­man econ­omy. For exam­ple, John Fos­ter Dulles’s legal records show that he han­dled the trans­fer of $10 bil­lion worth of gold in return for Ger­man bonds and invest­ments. By some esti­mates, 70 per­cent of the money that went to rebuild the Ger­man econ­omy after World War I came from Wall Street investors, most of whom sought the legal coun­sel of Sul­li­van & Cromwell. . . .” (Idem.)

10. “ . . . The secret strings of Ger­man invest­ment were held by Amer­i­can lawyers sit­ting on the boards of Ger­man banks and cor­po­ra­tions. Allen Dulles, for exam­ple, sat on the board of the Schroder Bank, with offices in Lon­don, New York, and Berlin. Osten­si­bly owned by a promi­nent Ger­man bank­ing fam­ily, the real con­trollers were Sul­li­van & Cromwell’s clients. . . .” (Ibid.; p. 293.)

11. Next, the pro­gram high­lights the gen­e­sis of the Vatican/Nazi money con­nec­tion, which was cen­tral to the real­iza­tion of the American/Nazi money-go-round. Arch­bishop Euge­nio Pacelli (later Pope Pius XII) was the Papal Nun­cio to Munich Ger­many. He gave Vat­i­can money to Hitler in 1919 to fight com­mu­nism in Ger­many. Fol­low­ing the Lat­eran Treaty of 1929 between the Vat­i­can and Mussolini’s fas­cist gov­ern­ment in Italy, the large finan­cial wind­fall the Vat­i­can obtained from Mus­solini was invested in Ger­man heavy indus­try. (For more on the Vatican/Nazi money link, see RFA#’s 17–21, avail­able from Spit­fire.) “ . . . Sul­li­van & Cromwell’s clients were not the only for­eign investors in Ger­many, nor were they the only ones to hedge their bets by mak­ing small dona­tions to the infant Nazi party. Fol­low­ing the $26 mil­lion cash set­tle­ment with Mus­solini over dis­puted lands in 1929, the Vat­i­can invested nearly all the pro­ceeds in Ger­man indus­try, but at least one small invest­ment was made in the Nazis as well. The fol­low­ing inci­dent was reported by an eye­wit­ness, Sis­ter Pas­calina, a nun who was the per­sonal aide (and devoted admirer) of the Papal Nun­cio in Munich and the man who would become Pope Pius XII on the eve of World War II: ‘Hitler came one night to the holy res­i­dence of Arch­bishop Euge­nio Pacelli (later Pius XII). All oth­ers in the house­hold were asleep by then, except [Sis­ter] Pas­calina . . . . Hitler told Pacelli that he was out to check the spread of athe­is­tic com­mu­nism. . . . It did not come as a sur­prise to her, there­fore, in light of Pacelli’s hatred of the Reds, to see the prelate present Hitler with a large cache of Church money to aid the ris­ing rev­o­lu­tion­ary and his small strug­gling band of anti-communists.’ . . . .” (Ibid.; pp. 294–295.)

12. After tak­ing power, Hitler passed laws ren­der­ing the West­ern industrialist/Nazi money links more opaque. This even­tu­al­ity cemented the part­ner­ship between the Nazis, the Vat­i­can and the U.S. money men—a con­nec­tion that was to prove cen­tral to the post­war laun­der­ing of Nazi wealth, as well as its recy­cling back to drive the Ger­man “eco­nomic mir­a­cle” of the 1950’s. “ . . . It is no coin­ci­dence that the Swiss passed a law in 1934 mak­ing dis­clo­sure of Swiss bank accounts a crime. In the same year, Sul­li­van & Cromwell offi­cially closed its Berlin office. From 1934, Switzer­land was the cen­ter of the Dulles broth­ers’ oper­a­tions. With so much of its own hold­ings tied up in Nazi Ger­many, the Vat­i­can had lit­tle option but to adopt the same course.” (Ibid.; p. 295.)

13. The real­iza­tion of the Vatican/Nazi/U.S. finan­cial axis was com­pleted with the imple­men­ta­tion of the IOR—the Vat­i­can Bank. “The Holy See devised a spe­cial shield to help pro­tect it from the loom­ing inter­na­tional conflict—its own finan­cial insti­tu­tion, the Vat­i­can Bank. This was the one mon­e­tary entity in the world that was com­pletely immune from out­side audits, pro­tected by Vat­i­can sov­er­eignty, and with the added con­ve­nience of diplo­matic immu­nity. Dur­ing the War, the Dulles broth­ers and the Vat­i­can were drawn into a sym­bi­otic rela­tion­ship: Sul­li­van & Cromwell’s investors needed the Vat­i­can Bank to laun­der their prof­its under the watch­ful eyes of both the Nazis and their own gov­ern­ments, while the Vat­i­can needed the Dulles broth­ers to pro­tect its own invest­ments in Hitler’s Ger­many. . . .” (Idem.)

14. The pro­gram sets forth the man­ner in which Allen Dulles, the Vat­i­can and the Third Reich helped recy­cle the Nazi wealth from Europe to Argentina, and then back to Ger­many. (For more on how this rela­tion­ship worked, as well as how this con­cate­na­tion fits into the con­text of the Bor­mann flight cap­i­tal pro­gram and Under­ground Reich, see FTR#’s 504, 508. Some of the actual doc­u­ments prov­ing the Dulles and Bush fam­ily col­lab­o­ra­tion with the post­war Nazi/Argentine money axis are avail­able at: www.debatecomics.org/BushFamilyFortune/. For more about the Bor­mann flight cap­i­tal pro­gram see: http://www.spitfirelist.com/f305.html.) “ . . . Few who watch the film Evita would rec­og­nize that the Peron fam­ily of Argentina worked directly with the Croa­t­ian Ustashi to estab­lish a pipeline from the Vat­i­can Bank. As recounted ear­lier in this book, Ante Pavelic him­self, the Croa­t­ian Nazi leader, moved to Buenos Aires and became a ‘secu­rity adviser’ to the Per­ons. Laun­dered through the ‘untrace­able’ Vat­i­can Bank, the Nazi trea­sure moved from Switzer­land to South Amer­ica. There the stolen funds were invested in a num­ber of Argen­tine busi­nesses whose lawyer was, of course, Allen Dulles.” (Ibid.; p. 300.)

15. Among the vehi­cles used in the Vatican-assisted Nazi flight cap­i­tal was the World Com­merce Cor­po­ra­tion. Fea­tur­ing for­mer OSS chief William Dono­van and for­mer British head of intel­li­gence for North Amer­i­can William Stephen­son, this orga­ni­za­tion epit­o­mized the syn­the­sis of busi­ness and espi­onage. For more about the WCC, see—among other programs—FTR#’s 504, 508. “As the final act of the money laun­der­ing, Dulles cre­ated the World Com­merce Cor­po­ra­tion to revive trade between Argentina and West Ger­many. On its board were such nota­bles as William Dono­van of US intel­li­gence, and William Stephen­son of British intel­li­gence. Dur­ing the 1950’s, much of the stolen pro­ceeds were laun­dered back to Ger­many for the great eco­nomic revival of West Ger­many.” (Idem.)

16. “In the end, the money went back to the orig­i­nal Ger­man com­pa­nies and their West­ern investors. It is not Swiss bank accounts that we should be trac­ing; it is the stock own­er­ship of the Swiss banks. There lies the last and per­haps the ugli­est secret of World War II. And therein lies the major cul­pa­bil­ity of the Vat­i­can in the rela­tions with Hitler’s Ger­many: with­out the Vatican’s invest­ments in the Third Reich there could not have been the motive to pro­vide the means to smug­gle the Nazis’ plun­dered loot from Switzer­land through the Vat­i­can Bank. . . .” (Idem.)

17. Next, the pro­gram turns to the sub­ject of the “Ratlines”—the Vat­i­can Nazi-smuggling effort con­ducted in con­junc­tion with ele­ments of West­ern (and U.S.) intel­li­gence. Some of the most impor­tant Nazis escaped via the Vat­i­can net­work, includ­ing Adolph Eich­mann, the super­vi­sor of the exter­mi­na­tion of the Jews. In addi­tion to Pius XII him­self, Car­di­nal Mon­tini (later Pope Paul VI), Bishop Alois Hudal and Father Kunoslav Draganovic over­saw the net­works. One of the prin­ci­pal Nazi fig­ures in set­ting up the Rat­lines was Wal­ter Rauff, who devised the mobile gas cham­bers dur­ing the war. Rauff, in turn, worked with SS offi­cer Friedrich Schwendt, who over­saw Oper­a­tion Bern­hard and Oper­a­tion Wendig (“Win­dow”), the forg­ing of British pound notes in order to destroy the British war econ­omy and finance the Rat­lines. (For more about the Rat­lines, see RFA#17, avail­able from Spit­fire. The Rat­lines are also dis­cussed in FTR#’s 504, 508, 529. The roles of Pius XII [Euge­nio Pacelli] and Mon­tini [later and bet­ter known as Pope Paul VI] are dis­cussed in these For The Record shows as well.) “ . . . Fol­low­ing the col­lapse of Mussolini’s regime in Sep­tem­ber 1943, Rauff was dis­patched to north­ern Italy where he served with the SS in the region around Genoa, Turin and Milan. Once again, his assign­ment was the exter­mi­na­tion of the Jew­ish pop­u­la­tion. It was dur­ing this period that Hudal made con­tact with this noto­ri­ous mass mur­derer. The gen­e­sis of Hudal’s and Rauff’s friend­ship is some­thing of a mys­tery. Alfred Jarschel, a for­mer Nazi Youth leader, claims that Rauff first met Hudal in the spring of 1943, when Deputy Fuhrer Mar­tin Bor­mann sent him to Rome for six months with­out any appar­ent mis­sion. This was at a time when the Reich des­per­ately needed senior offi­cers of Rauff’s expe­ri­ence and cal­iber as the war’s out­come still hung in the bal­ance. Jarschel believes ‘that the first con­tacts with the Vat­i­can were estab­lished dur­ing those months, which were to lead even­tu­ally to the set­ting up of Hudal’s escape net­work.’” (Ibid.; pp. 33–34.)

18. “The time was fast approach­ing when it would be needed. By early 1944 when the Allies landed in Sicily, even Hudal could see that Hitler’s ‘Thou­sand Year Reich’ was doomed. As long as the Nazi Armies were win­ning, he had proudly dri­ven around Rome with a ‘Greater Ger­many’ flag on his car; but when the Allies arrived in the Ital­ian cap­i­tal in June of 1944, Hudal ‘was the first to change it—suddenly his flag was Aus­trian.’” (Ibid.; p. 34.)

19. “ . . . There were many dra­matic changes in the Vat­i­can as well, one of which may have played a cru­cial role in the devel­op­ment of Hudal’s escape net­work. In August 1944, Car­di­nal Maglione died. Pius XII decided not to appoint a new Sec­re­tary of State, reas­sum­ing per­sonal respon­si­bil­ity for for­eign pol­icy. From that time, Mon­signors Tar­dini and Mon­tini worked directly for the Pope. Ladis­las Farago claimed in his con­tro­ver­sial book, After­math, that this deci­sion ‘was Hudal’s entrée to the high­est ech­e­lon of the Holy See.’ Farago argues that Hudal had been on the outs with Maglione, rely­ing on infre­quent con­tact with the Pope him­self to influ­ence Vat­i­can pol­icy. But now he ‘acquired a friend in the Sec­re­tariat of State.’” (Idem.)

20. “Maglione’s death sud­denly left Gio­vanni Mon­tini in charge of Pon­tif­i­cal Assis­tance to refugees, open­ing the door for Hudal’s plans. Farago claims that it was Mon­tini who allowed Hudal access to Vat­i­can pass­ports and other iden­tity and travel doc­u­ments, which he then used to aid his Nazi friends. At the same time Hudal allegedly devel­oped good con­tacts with another impor­tant Vat­i­can bureau under Montini’s con­trol. This was the Pon­tif­i­cal Com­mis­sion for Assis­tance, which was con­cerned with work among refugees. One of its major roles was issu­ing travel doc­u­ments to legit­i­mate refugees. Finally, Farago alleged that Mon­tini gave Hudal access to Car­i­tas Inter­na­tional, a Catholic char­ity which paid liv­ing and trav­el­ing expenses to help gen­uine refugees. . . .There is some cir­cum­stan­tial evi­dence in the Amer­i­can diplo­matic records to sup­port the claim that Mon­tini was delib­er­ately aid­ing Hudal’s Nazi-smuggling. . . .” (Ibid.; pp. 34–35.)

21. “ . . . In fact, Drag­onovic was widely known among West­ern intel­li­gence oper­a­tives as the ‘Balkan grey emi­nence.’ This was a stand­ing joke among both Amer­i­can and British offi­cers, in whose cir­cles Draganovic moved freely. This was also con­firmed by Sim­cic, who was cer­tain that Draganovic had direct con­tact with British, Amer­i­can and Ital­ian intel­li­gence. The for­mer British offi­cer was also emphatic that ‘you can almost talk about inter­lock­ing direc­tor­ships between West­ern intel­li­gence and the Vat­i­can at this period.’” (Ibid.; p. 114.)

22. “It is no coin­ci­dence that Rauff’s ‘Mr. Dulles’ later became Direc­tor of the Cen­tral Intel­li­gence Agency, or that James Jesus Angle­ton became head of CIA Counter Intel­li­gence. Through­out Angleton’s career he retained exclu­sive con­trol over Amer­i­can intel­li­gence liai­son with the Vat­i­can. What­ever the Amer­i­can motive, it is incon­testable that Rauff was released from cus­tody and returned to his flat in Milan.” (Ibid.; p. 39.)

23. “Accord­ing to the French pub­li­ca­tion Cer­cle Noir, Rauff made con­tact with Arch­bishop Siri of Genoa, and imme­di­ately went to work for the Vat­i­can in estab­lish­ing a Nazi-smuggling sys­tem. Apart from his high level Amer­i­can and Vat­i­can con­tacts, Rauff’s main con­tri­bu­tion to Hudal’s smug­gling sys­tem may have been finan­cial. The man who once can the mobile gas truck pro­gram now became a money laun­derer, with the help of Fred­erico Schwendt, Rauff’s for­mer SS col­league. Schwendt is con­sid­ered among the great­est coun­ter­feit­ers in his­tory, hav­ing forged mil­lions of ban­knotes dur­ing the war as part of an SS oper­a­tion code­named Wendig.” (Idem.)

24. “The orig­i­nal inten­tion was to under­mine and pos­si­bly destroy the Allied economies, but as the war was draw­ing to a close, Schwendt laun­dered the coun­ter­feit money through var­i­ous banks for the first Nazi escape net­work. Wiesen­thal claims that Schwendt turned the pro­ceeds over to his old com­rade, Wal­ter Rauff.” (Idem.)

25. “How­ever Jarschel has a slightly dif­fer­ent ver­sion. He claims that Hudal con­tacted Rauff in July 1945, ask­ing him to come to Rome for a secret meet­ing. This proved impos­si­ble, so Hudal sug­gested that Rauff travel instead to Genoa and con­tact the newly appointed and strongly anti-Communist Arch­bishop Siri, another key player in the Nazi-smuggling oper­a­tion. Rauff went to Genoa and was received by one of Siri’s pri­vate sec­re­taries. Jarschel alleges that he was given a size­able sum of money and a Red Cross pass­port with a valid visa for Syria. He then returned to Milan and estab­lished the escape net­work.” (Idem.)

26. “Per­haps the truth is some­where in between: Rauff prob­a­bly used Siri’s money to aug­ment the pro­ceeds from the coun­ter­feit laun­der­ing oper­a­tion. Jarschel and Cer­cle Noir both agree that over the next four years some of the most wanted Nazi war crim­i­nals passed from Rauff in Milan, to Bishop Hudal at the Anima in Rome and then on to Arch­bishop Siri in Genoa. Here they boarded ships and left for new lives in South Amer­ica. . . .” (Ibid.; pp. 39–40.)

27. One of the most heinous Nazis who escaped with the help of the Vat­i­can was Ante Pavelic, head of the bru­tal Croa­t­ian Ustashi gov­ern­ment in World War II. Before flee­ing to Argentina (where he became an aide to Juan Peron), Pavelic was actu­ally phys­i­cally shel­tered in Castel­gan­dolfo, the Pope’s sum­mer res­i­dence. “. . . From a very con­fi­den­tial source, Amer­i­can intel­li­gence had dis­cov­ered in May 1946 that the Poglavnik was liv­ing ‘close to Rome in a build­ing which is under the juris­dic­tion of the Vat­i­can.’ This was soon after Pavelic had first arrived in Rome from Aus­tria, and it is now known that the Poglavnik, like Fer­enc Vajta, actu­ally took refuge at Castel­gan­dolfo, where the Pope’s sum­mer res­i­dence is located. It seems that many Nazis grav­i­tated to Castel­gan­dolfo, for Pavelic was housed with a for­mer Min­is­ter in the Nazi Roman­ian gov­ern­ment. [Ital­ics are Mr. Emory’s.]” (Ibid.; p. 78.)

28. Next, the pro­gram sets forth doc­u­men­ta­tion of the verac­ity of the plain­tiffs’ charges in the afore­men­tioned law­suit against the Vat­i­can Bank. The Vat­i­can “ratlines”—the Church’s Nazi escape networks—were presided over by Bishop Alois Hudal and Father Draganovic (the “Golden Priest”). Draganovic helped to spirit the Ustashi plun­der out of Yugoslavia as well. In the imme­di­ate after­math of the war, the Ustashi loot was used, in part, to finance a guerilla war against the Yugosla­vian regime. These recon­structed Ustashis were termed “Krizari”—Crusaders. The Krizari cam­paign was admin­is­tered by British intel­li­gence, which assisted the Vat­i­can with the exo­dus of the Ustashi plun­der. Again, the “Pavelic” referred to in the fol­low­ing pas­sage was Ante Pavelic, the Fuhrer of the Ustacha regime, who became a trusted adviser to Argen­tine dic­ta­tor Juan Peron after the war. “ . . . With the help of Catholic priests, Pavelic had begun to trans­fer large quan­ti­ties of gold and cur­rency to Switzer­land in early 1944. Some of the trea­sure had been taken to Italy by British Lieu­tenant Colonel Jon­son to finance the Krizari forces. Another por­tion went to Rome with Draganovic and also ended up financ­ing the ter­ror­ist net­work.” (Ibid.; p. 132.)

29. “But over 2,400 kilos of gold and other valu­ables still remained secreted in Berne. It was sup­posed to be used to ‘aid refugees of the Catholic reli­gion’, but was really ear­marked for the Ustashi’s clan­des­tine oper­a­tions. Although the Allies had tem­porar­ily pre­vented them from gain­ing access to these funds, by early 1948 the time had come to use the Church to retrieve the loot.” (Idem.)

30. “In Berne, Rozman’s Ustashi friends were engaged in whole­sale fraud, using the black mar­ket to con­vert the gold into dol­lars, and later, into Aus­trian schillings. ‘Aid to the refugees is accounted for at the offi­cial rate of exchange for dol­lars,’ the Amer­i­can offi­cers noted, adding that ‘mal­prac­tices have been car­ried on (offi­cially, the dol­lar is worth 10 schillings; on the black mar­ket, 100 to 150). Accord­ing to reli­able infor­ma­tion: ‘Roz­man is going to Berne to take care of these finances. The money is in a Swiss bank, and he plans to have most of it sent through to Italy and from there to the Ustashis in [the] Argen­tine.’” (Ibid.; pp. 132–133.)

31. “A short time later Roz­man duly arrived in Berne, accom­pa­nied by Bishop Ivan Saric, the ‘hang­man’ of Sara­jevo. By the end of May 1948, Roz­man had appar­ently car­ried out this money laun­der­ing oper­a­tion for the Ustashi, for the vis­ited the U.S. Con­sulate in Zurich and was given a ‘non-quota immi­gra­tion visa as a min­is­ter of reli­gion.’ He then trav­eled to the United States and set­tled in Cleve­land, Ohio. The cir­cle was now almost com­plete. Pavelic’s stolen ‘trea­sure’ had been tracked down through close mon­i­tor­ing of the move­ments and activ­i­ties of the quis­ling Bishop of Ljubl­jana. . . .” (Ibid.; p. 133.)

32. “William Gowen and his CIC col­leagues had started to unravel Britain’s role in the Krizari’s oper­a­tions dur­ing their hunt for Ante Pavelic in 1947. As already dis­cussed, they soon dis­cov­ered that the Vat­i­can was shel­ter­ing Pavelic, with the con­nivance of the British Secret Intel­li­gence Ser­vice. In the course of estab­lish­ing this, Gowen also con­firmed sen­sa­tional claims made by Fer­enc Vajta. It will be recalled that the American’s Hun­gar­ian Nazi con­tact had told him that SIS was behind the mil­i­tary and polit­i­cal revival of the Ustashi.” (Ibid.; p. 122.)

33. “Gowen inves­ti­gated the Krizari’s finances and soon uncov­ered the unsa­vory truth: their money came partly from the ‘trea­sure’ which ‘Pavelic’s hench­men’ had car­ried out of Croa­tia. Accord­ing to Gowen, the Ustashi had fled with a large num­ber of truck­loads of this stolen booty. When the British SIS appre­hended Pavelic in Aus­tria in may 1945, they also picked up some of his loot. Gowen believed that the fol­low­ing story of what really hap­pened was ‘clos­est to the truth’: ‘British Lt. Colonel Jon­son was placed in charge of two (2) trucks laden with the sup­posed prop­erty of the Catholic Church in the British Zone of Aus­tria. These two (2) trucks, accom­pa­nied by a num­ber of priests and the British offi­cer, then entered Italy and went to an unknown des­ti­na­tion.’” (Ibid.; p. 123.)

34. “Major Stephen Clis­sold con­firmed that two such Ustashi ‘trea­sure trucks’ had indeed reached Aus­tria. Not sur­pris­ingly, Clis­sold did not men­tion the British role in remov­ing them to Italy, claim­ing instead that they ‘were deposited in the safe-keeping of a monastery,’ but Gowen was cer­tain that the British were now using it to finance ‘the Croat resis­tance move­ment in Yugoslavia. The resis­tance forces . . . go by the name of Krizari (Cru­saders) . . . Radio con­tact is main­tained by means of a field radio oper­ated by Vran­cic, a for­mer Pavelic min­is­ter located in the British Zone of Aus­tria. The Ustashia courier ser­vice within the Aus­trian Zones is believed aided by the Roman Catholic Church in Aus­tria. The Car­di­nal of Graz is known to be on close terms with . . . Pro­fes­sor Draganovic, Krunoslav, known Pavelic con­tact in Rome.’” (Idem.)

35. “Yet again, West­ern intel­li­gence found that Father Draganovic was at the cen­ter of the Ustashi’s clan­des­tine activ­i­ties. Indeed, he was widely known in West­ern intel­li­gence and émigré cir­cles as ‘the golden priest’ because he con­trolled a large part of the stolen trea­sure. Although Colonel Jon­son had taken away two truck­loads in 1945, this was only a frac­tion of Pavelic’s loot.” (Idem.)

36. “Four hun­dred kilos of gold, worth mil­lions of dol­lars, and a con­sid­er­able amount of for­eign cur­rency had been secreted at Wolfs­berg, where it was under the con­trol of for­mer Ustashi Min­is­ter, Lovro Susic. Draganovic dis­cov­ered this from senior Ustashi offi­cials dur­ing his visit to Aus­tria in mid-1945. They were appar­ently deter­mined to main­tain some inde­pen­dence from the British, who they feared would seize the gold, so they asked Draganovic to save it. The priest was only too will­ing to oblige, for he con­tacted Susic and with his agree­ment took forty kilos of gold bars to Rome, con­cealed in two pack­ing cases. There is no doubt about Draganovic’s close con­nec­tions with the Ustashi hier­ar­chy in this money laun­der­ing scheme. . . .” (Ibid.; pp. 123–124.)

37. Another of the Croa­t­ian war crim­i­nals who ben­e­fited from the Rat­line was Srecko Rover. In the 1990’s, Rover returned to Croa­tia to become an adviser to the “new” Croa­t­ian gov­ern­ment in its atroc­i­ties com­mit­ted against Serbs and Bosn­ian Mus­lims. (For more about the Croa­t­ian Ustashis and their influ­ence on the “new” Croa­t­ian gov­ern­ment, see—among other pro­grams, FTR#48.) “It is no coin­ci­dence that Pavelic’s lieu­tenant Srecko Rover—whose roles in the bru­tal atroc­i­ties in and around Sara­jevo dur­ing World War II and in the British intel­li­gence ter­ror­ist net­works of the late 1940’s are doc­u­mented in Chap­ter Six of this book—has given Tudjman’s gov­ern­ment spe­cial­ist advice on how to con­duct a good mas­sacre. Nor is it a coin­ci­dence that Rover, and his Ustashi com­rades who were smug­gled down the Vat­i­can Rat­lines to Argentina, Amer­ica, Canada, Aus­tralia, and Britain, trained a new gen­er­a­tion of Western-educated Croa­t­ian war crim­i­nals who left their adopted coun­tries to slaugh­ter Serbs and Mus­lims in the 1990’s Balkans wars.” (Ibid.; p. xvi.)

38. Next, the pro­gram turned to an invi­ta­tion that John Lof­tus received to attend an event in Argentina, sup­pos­edly to help shed light on Nazi war crim­i­nals and their exo­dus to Argentina. This occurred in the imme­di­ate after­math of Loftus’s role in aid­ing the dis­cov­ery and extra­di­tion of Nazi war crim­i­nal Eric Priebke, the per­pe­tra­tor of the Adrea­tine Caves mas­sacre in Rome dur­ing World War II. Priebke was among the Nazis who ben­e­fit­ted from the Rat­line. (For more about Priebke, see FTR#6.)“ . . . Sud­denly, John Lof­tus, one of the authors of this book, received an invi­ta­tion from the Menem gov­ern­ment to come to Buenos Aires to address an Inter­na­tional Sem­i­nar on anti-Semitism. It did not take long to dis­cover why: the Argen­tine gov­ern­ment wanted him to talk about Nazis in Amer­ica., to take the sting away from the Nazis in Argentina. The con­fer­ence turned out to be a pub­lic rela­tions effort to gloss over the dark side of Juan and Evita Peron’s role in pro­vid­ing Argen­tine visas to the Vat­i­can to smug­gle Nazis out of Europe, which we doc­u­ment later in this book. Sev­eral speak­ers min­i­mized the pres­ence of Nazis in Argentina, defended the Per­ons, and praised Pres­i­dent Menem for his coura­geous deci­sion to open Argentina’s immi­gra­tion files for inspec­tion.” (Ibid.; p. xiii.)

39. Note that the Menem gov­ern­ment con­tin­ued to mask the truth about the extent of Nazi involve­ment with Argentina. Note, also, that Priebke con­tin­ued to be shel­tered by pow­er­ful ele­ments, who did not want the truth about the Rat­lines and the com­plic­ity of those who par­tic­i­pated to emerge. “ . . . As this book shows, Juan and Evita Peron had wel­comed some of the worst Nazi mass mur­der­ers of World War II, includ­ing Ante Pavelic, the leader of the ‘inde­pen­dent’ state of Croa­tia. Pavelic and nearly the entire cab­i­net of his bloody Ustashi gov­ern­ment had emi­grated via the Vat­i­can to Buenos Aires, where Peron promptly made Pavelic one of his senior ‘secu­rity advis­ers.’ Even the care­fully pre­sented facts did move the Menem gov­ern­ment. Months passed, and it seemed that Priebke would suf­fer lit­tle more than ‘pro­tec­tive’ cus­tody under the benev­o­lent eye of the Argen­tini­ans. Even­tu­ally, how­ever, they had to hand Priebke over in the wake of an almost unprece­dented inter­na­tional cam­paign.” (Ibid.; pp. xiii-xiv.)

40. “Sev­eral of our intel­li­gence sources warned us that Priebke was still being pro­tected. He knew too much about the Vatican’s Rat­lines to Argentina to ever be per­mit­ted to stand trial. Amaz­ingly, the Ital­ian mil­i­tary tri­bunal acquit­ted Priebke on a tech­ni­cal­ity. The peo­ple of Rome dimmed the lights of the city in protest. The next morn­ing, Priebke was rear­rested. The Supreme Court of Italy ruled that he must stand trial in a civil court. But to our dis­may, Priebke received only a five-year sen­tence, roughly equiv­a­lent to a week in jail for every per­son he had mur­dered in the Adrea­tine caves.” (Ibid.; p. xiv.)

41. “As we were to dis­cover, Priebke was indeed pro­tected by char­i­ta­ble forces. Priebke knew too much about the Vatican’s Rat­lines, and did not even serve his time in a prison, but lived com­fort­ably for many months under ‘house arrest’ in a Catholic monastery. In March 1998, the Ital­ian mil­i­tary tri­bunal again con­sid­ered his case, and this time decided to jail him for life. By this time Priebke had been moved to a hos­pi­tal located, iron­i­cally enough, in the Jew­ish quar­ter of Rome. As we write in April 1998 it seems unlikely that Priebke will serve more than a few sym­bolic days of his ‘life sen­tence’ in a prison.” (Idem.)

42. Next the pro­gram reviewed some of the infor­ma­tion about the Cru­sade For Free­dom and the com­plic­ity of high rank­ing GOP offi­cials in aid­ing the relo­ca­tion of Nazis to the United States. For more about this, see—among other programs—FTR#465.

43. The pro­gram also reviewed the CIA’s spon­sor­ship of the Mus­lim Broth­er­hood, the Arab Nazi col­lab­o­ra­tors. The show also reviewed the GOP/Muslim Brotherhood/Bank Al Taqwa con­nec­tion. For more about this, see—among other programs—FTR#’s 454, 473, 514, 515.

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