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COMMENT: The elevation of Raoul Wallenberg to the status of a saint eclipses very important information about his apparent collaboration with SS-controlled business contacts.
More importantly, Wallenberg was a member of a consummately powerful family of Swedish oligarchs, whose operations actively aided Nazi Germany in a fundamental way and whose American subsidiary properties committed treason against the U.S.
The article below is from Mr. Emory’s Patreon platform.
The Wallenberg File
The name Raoul Wallenberg has become synonymous with selfless endeavor in times of crisis. A “diplomat” credited with saving a large number of Eastern European Jews from extermination at the hands of the Nazis during World War II, Wallenberg has had schools, NGOs, civic monuments and awards created in his name.
The almost mythic public acclaim accorded to Raoul Wallenberg has eclipsed darker activities of his, overlapping the cynical operations of the Swedish Wallenberg clam during the Second World War.
Key axis collaborators during World War II, the Wallenberg family leveraged their global monopoly on ball bearings, corrupting the official “neutrality” enjoyed by Sweden and maintaining critical Nazi influence in the postwar world through participation in the remarkable and deadly Bormann flight capital organization. (1)
Far from the altruistic crusader he has been made out to be, the available information suggests the distinct possibility that Wallenberg was actually a spy and that his activities sparing Jews was part of maneuvering late in the war by the SS leadership to gain ransomed wealth, immunity for their crimes, leniency from the Western allies.
SKF and the Enskilda Bank: Wallenberg Cartel Power
Understanding the Wallenberg family’s global power and the foundation of their collaboration with the Third Reich entails analysis and understanding of the Wallenbergs’ SKF firm and the family’s control of the powerful Enskilda Bank, the financial spigot that watered the decisive industrial influence enjoyed by the clan.
Of particular interest for our purposes are the German and American subsidiaries of SKF and the firms’ behavior during the Second World War.
Global Power, Axis Inclination
With a virtual monopoly on the manufacture of ball bearings, an essential element of industrial production and military manufacturing in particular, SKF enjoyed a status within Sweden’s power elite that conferred a quasi-governmental status on SKF, the affiliated Enskilda Bank and the powerful Wallenberg family that controlled both. (2)
Frequently, the SKF was represented in foreign countries by “ambassadors, ministers, or consuls, who represented Swedish policy all over the world.” (3)
In addition, SKF and the Wallenberg family controlled what might be viewed as a vertical monopoly, supplementing the horizontal monopoly SKF had on ball bearings. Indeed, the scope of the firm’s international holdings might qualify its operational structure as a cartel. The company “controlled iron ore mines, steel and blast furnaces, foundries and plants in the United States, Great Britain, France, and Germany.” (4)
The Wallenberg clan’s dominant figure in the operations of SKF and related industries was Jakob Wallenberg. He was in charge of “mining, shale oil, electrical goods . . . . virtually the whole industrial economy of his native country.” (5)
A complex Swedish-German corporate maneuver spawned the VKF company, a German plant with tremendous ball-bearing production capacity. Although it was nominally German, ownership documents indicated that SKF controlled 99.7 percent of the stock of VKF. (6)
An indicator of SKF’s ideological leanings can be gleaned from the facts that: over 60 percent of SKF’s production until late in the war was dedicated to German war production; the production at its factory in Schweinfurt Germany was producing at 93 percent of capacity; its U.S. subsidiary produced less than 38 percent of capacity and its British subsidiary still less. (7)
In addition to ball bearings, the SKF milieu was deeply involved with providing the Third Reich with a generous portion of its steel, as the company’s founder, Sven Winquist, along with ITT chief and Axis collaborator Sosthenes Behn and Electrolux founder and Nazi sympathizer Axel-Wenner Gren also controlled the Swedish Bofors firm, which provided Germany with much of its steel. (8)
International corporate maneuvering involving the Wallenbergs extended to other firms involved with the cartels’ dominance of German war production. Marcus Wallenberg operated as an agent of the Reichsbank while the Enskilda bank bought the shares of I.G. Farben subsidiary American Bosch, putting them in a financial holding company called “A.B. Investor.’ (9) One George Murname was designated by the Enskilda Bank as the “sole voting trustee with complete power to vote the American Bosch stock at stockholders’ meetings in the U.S.” (10) John Foster Dulles was positioned to name Murname’s successor in case he passed away. (11) Sullivan & Cromwell represented the Enskilda Bank and the Wallenbergs in the U.S. (12)
Even though the maneuvering outlined above preserved the legal ownership of Bosch in neutral hands, the parent firm in Germany was still able to exercise restrictive technological patent control, rebuffing the U.S. Navy’s attempts at getting a broadening of the license for fuel-injection systems for warships. (13)
Foster Dulles set up a voting trust for American Bosch with himself and William L. Batt as trustees. Batt’s activities are of pivotal interest. (14)
William L. Batt and Hugo von Rosen
SKF’s American subsidiary in Philadelphia was controlled by two men whose activities highlight and encapsulate the pro-Axis activities of SKF. William L. Batt and Hermann Goring’s second cousin by marriage Hugo von Rosen steered SKF’s U.S. subsidiary in a deft fashion, serving Germany’s business interests while successfully deflecting attempts at curbing activities which would be characterized as treasonous under normal circumstances.
Batt’s efforts on behalf of the SKF interests were effectively masked by his position as vice-chairman of the War Production Board, personally appointed by Franklin Delano Roosevelt himself. (15) Batt’s maneuvering on behalf of SKF and Germany was coupled with vehement exhortations to the average American to do whatever they could to forego many products deemed essential to war production, such as “tin cans, old tires, rags, newspapers, old wool and even fats needed for glycerin.” (16)
Supplying Latin America; Breaking the Blockade
Among the pro-Axis behavior of Batt and von Rosen was supplying the “Proclaimed Listees” in Latin America with ball bearings. Faced with naval blockade and executive restrictions of ball bearing shipments from SKF to Nazi and Italian affiliated companies in Latin America, the Swedish firm turned to its American subsidiary and the efforts of William L. Batt and Hugo von Rosen to keep the Axis-affiliated firms in the Southern Hemisphere supplied.
Von Rosen saw to it that SKF’s Axis-affiliated companies circumvented the Allied blockade by providing them with sufficient qualities of ball-bearings from the Philadelphia plant. (17)
Starving the U.S. Army Air Force
The conglomerate’s Philadelphia subsidiary minimized ball bearing production. The relative paucity of bearings supplied to the U.S. Army Air Force hampered the operations of that service (before the Air Force was established as a separate entity). As noted above, SKF’s Philadelphia plant operated at 38 percent of capacity.
When an American SKF executive went to Washington D.C. to vent his frustration with von Rosen’s obstruction of the U.S. aerial campaign, he had a noteworthy confrontation with William L. Batt, who (it should be remembered) was vice-chairman of the War Production Board. Batt’s response was “Nothing can be done. Nor will it be done.” (18)
Apparently to cover for the bearings being illegally shipped to Latin America, personnel of the Philadelphia plant doctored inventories, to make it appear that far fewer ball bearings were being manufactured than were actually being made. (19).
Von Rosen also saw to it that some bearings were deliberately deficient and consequently useless. He operated with impunity. (20)
Continued Subversion of the Allied Cause
Subverting manufacturing was not the only undertaking of von Rosen. He also saw to it that critical documents about production processes and patents were secretly smuggled to Sweden, to SKF’s parent firm, in direct contravention of U.S. law. (21)
Eventually, the Philadelphia plant was granted a license to deal internationally, legalizing much of its de-facto treason. (22)
The Philadelphia plant was allowed to slide on the issue of Swedish-German ownership, which would have facilitated seizure of the firm as Axis property. Batt burned relevant documents in order to maintain this charade. (23)
Rebuffing Governmental Authority
J.S. Tawresey, a chief engineer and board member of the Philadelphia plant charged von Rosen and Blatt with deliberate subversion of the war effort, citing the company’s consistent failure to provide 150,000 bearings per month to the Pratt & Whitney firm for its production of engines for fighter aircraft. In disgust, he resigned from the company and joined the Army Air Force, a position which permitted him to call attention to SKF’s subversive behavior. (24)
Supplementing the Philadelphia plant’s treason was National City Bank, which channeled profits from von Rosen’s illegal supplying of Axis-affiliated Latin American companies to SKF’s parent firm in Sweden. (25) That traffic delivered 600,000 bearings a year to the Axis plants in Latin America.
1943: The Fruits of Cartel
As Germany’s inventory of SKF’s bearings became depleted, the parent company arranged for bearings to be shipped to Germany from the Latin American market. Because of their total dependence on SKF for their bearings, both Great Britain and the Soviet Union acquiesced in this operation! (26)
In order to deprive Germany of vital ball bearing production, the U.S. Army Air Force undertook a series of bombing raids on VKF’s Schweinfurt factories in Germany. Just before the attacks, Batt flew to Sweden in an American bomber, accompanied by several U.S. officers. The trip was essentially and officially to facilitate the transfer of more bearings to Philadelphia, despite the fact that production had stabilized by that point. (27)
The actual purpose of Batt’s meeting with Jacob Wallenberg and Swen Winquist remains a mystery. That real purpose should be pondered in light of the observations of U.S. Army Air Force General Henry H. (“Hap”) Arnold: “ . . . . I don’t know how they could have prepared the defense they did unless they had been warned in advance.” (28) The Army Air Force lost fifty heavy bombers in one raid alone! (29) Some sources claim the toll was sixty planes.
When the raids temporarily knocked out German production, the parent firm, Swedish SKF, replaced the lost German inventory. (30)
German-Swedish ball bearing trade from SKF tripled in the aftermath of the Schweinfurt raids, generating outrage from General Carl Spaatz, who noted both British and American complicity with the increase. When he precipitated inquiry into the traffic, he was informed that the British were wholly dependent on SKF’s production, following the Luftwaffe’s successful raid on the SKF factory in Britain! (31)
Eventually, SKF’s traffic to Germany peaked in 1943, despite sixteen costly raids against Schweinfurt. (32)
Following lengthy, tedious deliberations, an American negotiating team that had traveled to Stockholm in an effort to rectify the situation, it was agreed that “ . . . . An $8 million credit was to be paid to the Enskilda Bank. [To buy off SKF production—D.E.] . . . When the war was over . . . there would be no anti-trust action against SKF. SKF would keep all of its German properties, forever, and all SKF Nazi connections in the United States would be forgiven, and—more importantly—unexposed. . . .” (33)
Even that agreement proved illusory: The Swedes continually reneged on the agreed upon quotas shipped to Germany. (34)
In 1946, William L. Batt conferred with James Stewart Martin, in a successful effort to see to it that none of the SKF/VKF factories in Germany would be removed from Germany for war reparations. (Martin was in charge of the ultimately unsuccessful attempts at decartelization and economic reform in Germany.) (35)
Raoul Wallenberg and U.S. Intelligence
Another member of the family, Raoul Wallenberg, has been lionized for having rescued many Jews from extermination at the hands of the Nazis by obtaining official Swedish “papers.”
He disappeared at the end of the war, and the details of his fate have remained enigmatic.
The “mystery” of Raoul Wallenberg’s disappearance becomes more transparent as information surfaces that he had operational links to elements of U.S. intelligence during World War II.
It is generally believed that he died in a Soviet prison during the Cold War, an allegation that gains dimension when the activities of Raoul Wallenberg in conjunction with both the Office of Strategic Services (America’s World War II intelligence service and a direct precursor of the CIA) and a far more secretive organization called “The Pond.”
That Wallenberg was performing an intelligence function was largely confirmed when the CIA released a document acknowledging that he was recruited for his rescue mission by an agent for the OSS. (36)
In addition, the Stockholm chief of the War Refugee Board, one Iver C. Olsen, belonged to the 35-man OSS contingent in that city, and he had done the actual secret recruitment of Raoul Wallenberg, who masked his U.S. intelligence connection by secretly communicating through Swedish diplomatic networks. (37)
It has also been suggested that Wallenberg worked for a secret, parallel American intelligence network known informally as “The Pond.” (38)
Relying in considerable measure on information provided by contacts in private commercial enterprises, the Pond might have recruited Wallenberg through or because of his family’s consummately influential business connections. (39)
Networking with the SS
As documented above, the Axis connections and pro-Nazi machinations of the Wallenberg family were extensive.
Looming large in the circumstances surrounding Raoul Wallenberg’s activities and disappearance is his operational link to SS General Karl Wolff, Heinrich Himmler’s personal adjutant.
As is well known, Wolff was involved in negotiations with Allen Dulles in 1945 to arrange a separate surrender of SS forces in Italy, an arrangement that ran directly counter to stated U.S. policy and one that appears to have laid part of the foundation for the collaborative arrangement between American intelligence and the SS cadres associated with the Reinhard Gehlen spy outfit. (40)
A critical consideration concerning Raoul Wallenberg’s “philanthropy” involves his operations on behalf of a company called Melaneuropeiska AB, a Swedish firm that imported hard-to-get commodities like fruit and cigarettes, whose scarcity was a product of the wartime economy. (41)
Throughout the war, Wallenberg’s work with the company was performed in cooperation with Ludolph Christensen, a German businessman who, in turn, operated with the protection of General Wolff. (42)
Just before the beginning of his rescue operation, Wallenberg met with Christensen. (43)
Noteworthy, as well, is the fact that, near the end of the war, the SS was involved with various negotiations, some of which were peace feelers advanced through Swedish intermediaries.
Reichsfuhrer SS Heinrich Himmler networked with Swedish diplomat Count Bernadotte in an attempt to secure clemency from the Allies. (44)
Other SS negotiations involved the physical safety of wealthy Jews, exchanged in return for the transfer of their wealth to the SS. Raoul Wallenberg’s operational base, Hungary, was central to many of these operations. (45) The Swiss vice-consul in Bern’s efforts to save Hungarian Jews dramatically eclipsed Raoul Wallenberg’s, issuing five times as many visas to otherwise doomed Hungarian Jews. (46) He has not, however, achieved Wallenberg’s near mythical stature.
Food for Thought
Noteworthy in evaluating Raoul Wallenberg’s activities late in the war is John “Frenchy” Grombach.
The principal operative of “The Pond,” Grombach networked with SS General Karl Wolff, utilizing a group of SS officers under his control to generate intelligence, which he channeled to former Senator Joseph McCarthy to be used in his witch hunts. “ . . . One of Grombach’s most important assets, according to U.S. naval intelligence records obtained under the Freedom of Information Act, was SS General Karl Wolff, a major war criminal who had gone into the arms trade in Europe after the war. . . . Grombach worked simultaneously under contract to the Department of State and the CIA. . . .” (47)
As documented above, Wallenberg’s business networking with Ludolph Christensen was protected by Wolff.
Raoul Wallenberg’s possible employment by “The Pond” and that network’s utilization of Karl Wolff’s network of SS officers gives depth to the possibility that the Swedish diplomat was working in the SS/Allied collusion as World War II gave way to the Cold War.
Conclusions
Although the mystery surrounding Raoul Wallenberg’s disappearance, and probable imprisonment by the Soviets, remains (to an extent) unsolved, some distinct clues can be gleaned from a careful examination of the totality of the diplomat’s activities.
That his family was heavily networked with the Third Reich is beyond dispute. Raoul Wallenberg, in turn, was working in conjunction with U.S. intelligence, and networked with SS General Karl Wolff’s protégé Ludolph Christensen.
With the wartime alliance between the West and the Soviet Union disintegrating into what became the Cold War, Wallenberg’s activities certainly would have been of interest to Soviet intelligence.
Stalin, of course, was not known for his moderation.
That Wallenberg may well have been involved in espionage activity and, possibly, the ransoming of Jews in exchange for the transfer of their wealth and/or clemency for high-ranking SS officers is a subject that bears further investigation.
That Wallenberg may not have been the saint he is portrayed as having been is a possibility that may be clarified by continued exploration of his enigmatic career.
NOTES
- Martin Bormann: Nazi in Exile; Paul Manning; Copyright 1981 [HC]; Lyle Stuart Inc.; ISBN 0–8184-0309–8; pp. 133–134.
- Trading with the Enemy: An Expose of the Nazi-American Money Plot 1933–1945 by Charles Higham; Dell [SC]; Copyright 1983 by Charles Higham; ISBN 0–440-19055‑X; p. 137.
- Idem.
- Idem.
- Trading with the Enemy: An Expose of the Nazi-American Money Plot 1933–1945; p. 138.
- All Honorable Men by James Stewart Martin; Little Brown [HC]; Copyright 1950 by James Stewart Martin; p. 252.
- Trading with the Enemy: An Expose of the Nazi-American Money Plot 1933–1945; pp. 137–138.
- Ibid.; p. 138.
- All Honorable Men; p. 250.
- Idem.
- Idem.
- Idem.
- Idem.
- Trading with the Enemy: An Expose of the Nazi-American Money Plot 1933–1945; p. 139.
- Idem.
- Idem.
- Ibid.; p. 140.
- Ibid.; pp. 140–141.
- Ibid.; p. 141.
- Idem.
- Idem.
- Idem.
- Ibid.; pp. 141–142.
- Ibid.; p. 142.
- Ibid.; p. 143.
- Ibid.;
- Ibid.; p. 143
- Idem.
- Idem.
- Ibid.; p. 146.
- Ibid.; p. 149.
- Ibid.; p. 146.
- All Honorable Men; p. 254.
- “Clues Surfacing in Wallenberg Case” by Arthur Max and Randy Herschaft; NBC News; 4/17/2008.
- All Honorable Men; p. 254.
- Clues Surfacing in Wallenberg Case” by Arthur Max and Randy Herschaft; NBC News; 4/17/2008.
- Idem.
- Idem.
- Idem.
- “How Allen Dulles and the SS Preserved Each Other” by Peter Dale Scott; Covert Action Information Bulletin; Issue 25 (Winter 1986); pp. 4–16.
- “‘Swedish Schindler’s Death Linked to Germany;” The Local [SE]; 1/15/2015.
- Idem.
- Idem.
- Gehlen: Spy of the Century by E.H. Cookridge; Random House [HC]; European Copyright Company Limited; ISBN 0–394-47313–2; p. 102.
- Nazi Gold by Tom Bower; Harper Perennial [SC]; Copyright 1997 and 1998 by Tom Bower; ISBN 0–06-109982–1; pp. 61–62.
- Ibid. ; p. 62.
- Blowback; Christopher Simpson; Collier [Macmillan] {SC}; Copyright 1988 by Christopher Simpson; ISBN 0–02-044995‑X; pp. 236–237.



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