"Many other Swedish corporations that enjoyed profitable dealings with the Nazis. The one most cherished by Germany was Enskilda Bank, owned by the Wallenbergs. The Nazis borrowed funds and laundered their stolen gold there. Safehaven documents revealed that the United States was tracking the pro-Nazi activities of the Wallenbergs for several years. In February 1945, in a letter to Secretary of State Edward Stettinius, Morgenthau charged that Enskilda was making large loans to the Nazis without collateral, and covertly investing money for German capitalists in U.S. industries, in line with the Bormann plans. He further charged the bank was repeatedly connected with large black market operations.
"Morgenthau identified Jacob Wallenberg as strongly pro-Nazi and rejected the claim that Marcus Wallenberg was for the Allies. Like S&K, the Wallenbergs were playing both sides. Cousin Raul Wallenberg helped to save 20,000 Jews in Budapest. When the Soviet army recaptured Budapest, Raul was arrested as an American spy. In June 1996, U.S. News and World Report published a review of declassified documents indicating that Raul Wallenberg was indeed a spy for the OSS."
" ... From the outset, Sweden agreed to the danger of Nazi assets being used to provide a rival, but contested the legality of the Allies’ claim to the assets.
"On July 18, the two sides reached an agreement. Of the estimated 378 million kroner (about $90.7 million) in German assets in Sweden, Sweden agreed to divide the assets as follows: 50 million kroner (about $12.5 million) went to the Intergovernmental Committee on Refugees (later the International Refugee Organization); 75 million kroner (about $18 million) went to the Inter-Allied Reparations Agency (IARA), excluding the amounts the United States, Britain and France received; 150 million kroner (about $36 million) went for aid in preventing disease and unrest in Germany. The last sum was used in Sweden or other countries to buy essential commodities for the German economy. Moreover, the agreement allowed for Swedish and German owners of liquidated property to be compensated in German currency. It also allowed for a mission to travel to the U.S., British and French zones of occupied Germany to inspect Swedish properties. Further it called for the release of frozen Swedish assets in the United States (estimated at the time at $200 million); the removal of any blacklists; and permission for the Allies to hold in reserve their claims to German properties in Sweden.
"In the agreement, Sweden would restitute 7,555 kilograms of fine gold (roughly $8.1 million), the same quantity stemming from the Bank of Belgium. The United States would hold Sweden harmless from any claims arising from transfers from the Swedish Riksbank to third countries. Finally, the agreement banned the Allies from claims to any gold received by Sweden from Germany and transferred to third countries before June 1, 1945 or any additional claims after July 1, 1947. In his report, Rubin noted the talks advanced smoothly and without bitterness.
"Sweden formally approved the agreement in November 1946. Shortly before the deadline for gold claims expired on July 1, 1947, the Allies filed a request for the return of 638 looted Dutch gold bars (worth about $10 million). Sweden challenged a portion of these claims. The Swedish challenge rested on the claim that some of this gold was acquired before the London Declaration. The Allies claimed the agreement included all the gold received. The debate over the Dutch gold continued into the 1950s. Eventually, in 1955, Sweden returned about 6 tons of gold (about $6.8 million) to the Netherlands.
"Other problems arose in fulfilling the agreement. Sweden did not turn over the gold specified in the July 1946 agreement by the March 1948 deadline. Although Sweden quickly fulfilled its obligation to IRO in July 1947, it was not as forthcoming with the funds for IARA. Throughout the period, Sweden argued that Law 5 was invalid.
"The latest investigation conducted by a bank-appointed commission revealed Sweden accepted 59.7 metric tons of gold from the Nazis. The newly discovered gold bears the same mark as that stolen from the Netherlands. The investigation also found 6 tons of gold of undetermined origin that could have come from the victims of the concentration camps. This additional find of gold was missed by the Safehaven operation. So far, Sweden has only returned 13.2 tons to Belgium and the Netherlands. The commission turned over its findings to the Swedish government. It was unclear whether that commission would have the power to recommend returning the gold. One of the investigators says Sweden has a moral but not a legal obligation to return the gold. The report was released in 1997."
................................................................................................
"Britain and the United States began to enlist Sweden in the Safehaven program in 1944. Britain was in favor of restricting the program in Sweden to gold, while the United States wanted to include other assets. The United States used trade agreements as an inducement for cooperation. The Riksdag, the Swedish Parliament, voiced its approval of Safehaven and in February 1945, Sweden began an inventory of its gold and foreign currency to see how much was linked to the Nazis. By spring, the British agreed with the Americans and drafted a proposal for Sweden, which then served as a basis for talks in Lisbon and Madrid. By summer 1945, Sweden had passed several measures to restrict the sale or dispersal of German property, and expanded the range of its census to include all types of German property. In January 1946, at the urging of the Allies, Sweden broadened the laws to include German subsidiaries. In November 1945, Sweden gave the Treasury Department a report on Swedish gold transactions. From it, the Treasury decided Sweden had received $22.7 million in looted gold from Belgium. The United States soon reduced the amount to $17 million."
................................................................................................
"Before the outbreak of WWII, Portugal held strong and long-standing political and emotional ties to Britain, dating back to the 14th century Anglo-Portuguese Alliance against Spain. England was Portugal’s largest trading partner in 1938. Portugal joined the British early in WWI and sent 50,000 troops to the frontlines.
"Portugal’s association with Nazi Germany emerged during the Spanish Civil War. Dictator Antonio de Oliveira Salazar sided with Franco and Hitler, helped Germany smuggle arms to Franco’s forces and sent Portuguese volunteers to fight. Salazar hoped thereby to achieve his long-term goal of stabilization and development of the country’s economy. By the end of 1938, Germany was Portugal’s second largest trading partner. However, Salazar did protest Hitler’s invasion of Catholic Poland."
" ... In October 1942, Britain capitalized on its long-standing relationship by inducing Portugal to accept sterling in payment for goods. Britain’s gold reserves were low, and both Sweden and Switzerland were demanding payment in gold."
"Portugal’s economic success hinged on its rich wolframite or tungsten ore deposits. The Nazis were dependent on Portugal and Spain for this mineral. Tungsten has various uses, including light bulb filaments, but it was of particular value in producing war munitions. Germany’s machining industry used tungsten carbide almost exclusively, whereas the United States was still largely using inferior molybdenum-tipped tools, mainly because of the cartel agreement GE held with Krupp for carboloy or cemented tungsten carbide. In addition, tungsten was useful in armor-piercing munitions. The Allies were not solely dependent on Portugal or Spain and could buy wolframite from other sources, but it was their goal was to deprive Nazi Germany of as much tungsten ore as possible, so they bought as much as possible from Portugal. ... "
"On May 14, 1945, a week after Germany’s defeat, Portugal passed law 34,600 freezing all German assets in the country, creating a licensing system for unblocking these assets, providing a census of these assets, prohibiting trade of foreign currency notes and establishing a penalty regime to enforce these provisions. On May 23, Portugal extended the law to include all its colonies. Included in these assets were the German government buildings. On May 6, at the request of the Allies, Portugal had seized all German government buildings. Included in the seizure were 5,000 gold sovereigns found in the German Legation in Lisbon.
"While the Portuguese law gave the appearance of cooperation, the State Department feared it contained too many loopholes. For one, the census excluded participation by the Allies. The law also allowed for the transfer of blocked assets to individuals for their subsistence, and the normal exercise of commercial and industrial activity. In a report issued on June 19, 1946, the Division of Economic Security Controls decided that German firms continued to operate without any serious handicaps and many of the Nazis’ assets had dissipated. Moreover, the Portuguese census failed to uncover any holdings the Allies had not already identified."
................................................................................................
"The Lisbon talks of 1946-47 failed to resolve any of these issues. Portugal took a firm stand in 1945 that it was not responsible for returning gold it had exchanged with Germany during the war for tangible assets. Portugal claimed it never received German gold shipments from 1938 to ‘45. Allied intelligence decided Portugal received $143.8 million in gold from the Swiss National Bank, about half of the increase in the country’s gold reserves. Of this amount, the Allies were certain that $22.6 million was from gold looted from Belgium. During the negotiations, the Allies proposed that Portugal turn over $50.5 million. The Allies contended that this amount of gold was obtained after 1942 when it was clear to everyone the German gold reserves had expanded by the looting of Europe. Portugal claimed it was not aware of such looting. Later during the negotiations, Portugal contended that all the gold it gained had been in good faith and was not looted. Throughout the long period of negotiations stretching into the 1950s, Portugal only agreed to return $4.4 million.
"Recent evidence shows that Portugal’s claims were, at best, disingenuous. In a confidential report, Victor Gautier, a high-ranking Swiss National Bank official, reported in his meeting with Albino Garble Peso, secretary general of the Banco de Portugal, that Portugal would not accept gold directly from the Nazis, due to political motivations and legal risks. He further noted Portuguese objections would evaporate if the money passed via the Swiss. These statements and others in Gautier’s report make it clear the Portuguese wanted the Nazi gold with a clean slate from the Swiss money launderers. Initially, Portugal used the Bank of International Settlements and the Yugoslav National Bank in Basel to launder the Nazi gold.
"However, starting in 1941 the Nazi invasion of Yugoslavia forced Portugal to look for other routes. Also, on Jan. 8, 1942, Montagu C. Norman, Director of the Bank of England, notified Thomas McKittrick, the American Director of the Bank of International Settlements, that it would no longer recognize shipments of gold from the International Bank to Portugal. Portugal then insisted the Reichsbank sell its gold for francs to the Swiss National Bank. The Reichsbank then deposited the francs into the Banco de Portugal account with the Swiss bank. The Banco de Portugal used these francs to buy the gold from the Swiss National Bank. In addition, the Portuguese used three accounts in the Swiss bank. Portugal used one to deposit gold transferred in payment for the purchase of escudos by SNB from the Banco de Portugal. It used the second account for gold bought from the Banco de Portugal, financed with the Swiss francs. The last account closed the circle by transferring gold on orders from Berlin to the Banco de Portugal account in Zurich.
"The Banco Espirito Santo also played a significant role in buying wolframite for the Nazis. An October 1945 FEA report charged that the bank was the financial agent for Nazi purchases of wolfram or wolframite (wolfram is the word for tungsten in German and other languages). After the Allies compelled the bank to forgo its German ties, the Nazis transferred their accounts to the Banco Lisboa e Acores.
"A significant amount of gold was smuggled into Portugal. The German Commercial Attaché in Madrid admitted to smuggling almost $1 million in English gold sovereigns from Berlin to the German embassy in Lisbon. The coins were sent in diplomatic pouches in 1943-44. Another report noted $360,000 in gold was flown to Portugal in June-July 1944 and deposited in the Bank of Portugal under the name of the ambassador. The bank director admitted several other dignitaries had special accounts, including the brother of Franco.
"While the Portuguese reached an early agreement with the Allies on German property, the issue of gold stalled the talks. Moreover, Portugal tied the property agreement to the gold issue and refused to liquidate the property. This delaying action only served to erode the value of the Nazi property seized. Talks continued off and on, formally and informally.
"Recently declassified documents show the American negotiators were aware of an OSS memo dated Feb. 7, 1946 stating that Portugal had received 124 tons of Nazi gold. Nevertheless, Allied negotiators were only seeking a return of 44 tons. The Azores complicated the negotiations from the end of the war until 1953. Portugal granted the U.S. permission to build an air base in the Azores for use during the war and for five years after. By July 1947, the State Department was urging negotiators to ease the hard-line approach and seek a compromise with Portugal on the gold issue. Foremost in the change of stance at the State Department was the Azores air base negotiation. In 1945, the Joint Chiefs designated the Azores as one of nine essential strategic bases needed to preserve the security of the United States. In 1947, the United States broke off the negotiations on gold until completion of the Azores negotiations.
"In 1948, Robert Lovett wrote the Treasury Secretary that “overriding political and strategic considerations of our foreign policy make it essential that the Portugal assets in the United States be unblocked.” A week later, the Treasury Department weakened the licensing procedures, effectively unblocking the assets. With that action, the United States lost all leverage over Portugal. On July 17, 1951, the State Department wired the embassy in Lisbon to settle on the Portuguese terms. The State Department based the decision on the overriding importance of politico-military objectives. Portugal had become a full member of NATO. Also at stake was a long-term lease for an air base in the Azores. Based on the priority of the Cold War objectives and after consulting British authorities, the State Department recommended settling the gold issue with Portugal for a mere $4.4 million.
"The Treasury Department would only agree to the terms if it received a letter signed at the Assistant Secretary level indicating there were political considerations warranting a settlement and that any agreement would not result in claims against the United States. Acting Assistant Secretary for European Affairs James Bonbright signed the letter to the Treasury. The United States finally agreed with Portugal on June 24, 1953. However, Portugal hinged the agreement on the condition of reaching an agreement with West Germany. It took until June 1958 before Germany and Portugal concluded an agreement. The next year, Portugal returned the $4.4 million in gold."
................................................................................................
"While many of the neutrals leaned toward fascism, none were fully fascist like Franco’s Spain. Both Germany and Italy provided support for Franco during the Spanish Civil War. In 1941, Franco sent 40,000 volunteers to Germany. Known as the Blue Division, they served for two years on the Russian front. Although Franco declared neutrality as soon as war broke out in Europe, Spain hovered on the brink of joining the Axis powers through 1940-41. Spanish belligerency was premised on an early German victory over Britain and Germany’s agreement to allow Spain to expand territorially into French Morocco, Africa and perhaps even Europe.
"The Nazis recognized the strategic location of Spain early on. As early as mid-1940, the Nazis had comprehensive plans to invade Gibraltar. The plans, code-named Operation Felix, originally called for a mid-1941 operation in which two corps would move by road across Spain, with Franco’s permission. Spain’s rail system was a different gauge than the rest of Europe, forcing the Nazis to rely on the roads. Once in position, Gibraltar was to be attacked from both the land and air with deadly Nazi efficiency. The plans also included two extra divisions to attack Morocco once Operation Felix succeeded.
"A Nazi seizure of Gibraltar would add weeks for oil tankers to reach Britain from the Mideast and give the Nazis strategic control of the Mediterranean. Franco certainly must have been aware of Britain’s precarious situation in 1940. With the empire under attack worldwide, it was hardly capable of defending itself against a follow-up attack on Morocco, the country that Franco eyed. Nevertheless, the Nazis failed to get Franco’s approval. Whether this was due to the intervention of the American ambassador or poor Nazi diplomacy, it has to be one of the biggest diplomatic and strategic setbacks for the Nazis.
"After 1941, there were similar plans to attack Gibraltar. However, once Hitler invaded Russia, any such plans were impractical. The Germans did not have the manpower or equipment to open a new battlefront."
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"Allied efforts to recover gold from Turkey were never pursued with any vigor. Turkey’s geographical location, controlling access to the Black Sea and its border with the Soviet Union made it a cornerstone for U.S. strategic interests in the coming Cold War. In 1946, formal talks were held to consider the gold received from the Nazis, as well as German assets in Turkey. The Allies estimated that German assets totaled $51 million. In March 1947, the Truman Doctrine included Turkey with Greece. In July, the United States signed a $150 million trade agreement with Turkey that dealt a deathblow to any further negotiations on restitution. Turkey never turned over any gold."
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"In January 1942, Argentina agreed to the terms of the Rio Conference, severing all commercial and financial relations with the Axis powers. In June 1942, Argentina agreed to the Final Act of the Inter-American Conference on Economic and Financial Controls, obligating all states to end commercial intercourse with the Axis. Argentina ignored the terms and continued business with the Nazis. Moreover, during 1942, Juan Goyeneche, a confidential agent of Peron, and Adrian Escobar, Argentina’s Ambassador to Spain, traveled through war-torn Europe, meeting with Nazi and Vatican officials. Goyeneche collaborated extensively with the Foreign Intelligence Branch of the SS. Escobar and his consul Aquilino Lopez were collaborating with Himmler’s secret service by crossing into Vichy France and reporting details on Spanish and Allied diplomats.
"After extensive meetings with Vatican Secretary of State Cardinal Luigi Magione, an agreement was reached in which, once peace was established, Argentina would generously apply its immigration laws. This seemingly innocent meeting takes on critical importance at the end of the war. It proves the Vatican was planning on helping Nazis war criminals escape from Europe as early as 1942. This meeting set up the Vatican ratlines.
""On Oct. 10, the Pope received Escobar and welcomed Argentina’s view that it was proper for the Vatican to engage in the peace talks. Goyeneche traveled to Germany and met with Ribbentrop seeking Nazi support for the nationalist candidate in the 1943 elections. This façade of neutrality was maintained until 1943 and the colonels’ revolution that eventually brought Peron to power.
"Once in power, the colonels sought arms from Germany in case war broke out between Argentina and Brazil. By September 1943, the colonels gave up the idea of smuggling arms into Argentina from Germany and, instead, sought an alliance with the Nazis. The group of colonels dispatched Osmar Hellmuth and Carlos Velez to Spain to negotiate. Unfortunately for the colonels, U.S. Magic intercepts detected the upcoming mission from transmissions between the SS agent in Argentina, a Capt. Becker, and Schellenberg in Germany, and had the British seize Hellmuth when the ship docked in Trinidad.
"The seizure of Hellmuth failed to deter further plots. Peron and Becker continued to plan the overthrow of neighboring governments to set up a pro-Nazi block in South America. Peron wrote in a secret manifest of the colonels:
""Forming alliances will be the first step. We have Paraguay; we have Bolivia and Chile. With Argentina, Paraguay, Bolivia and Chile, it will be easy to pressure Uruguay. Then the five united nations will easy draw in Brazil because of its type of government and its large nucleus of Germans. With Brazil fallen, the American continent will be ours.""
................................................................................................
"During the final year of the war, Argentina was a prime destination for many of the assets that Bormann spirited out of Germany for a rebirth of the Third Reich. Following the war, Argentina also was a prime destination for Nazi war criminals. Even war criminals who escaped to other South American countries generally first entered the continent through Argentina. While other South American countries generally supported the U.S. policies during the war, there was no cooperation from Argentina. Other countries adhered to the Proclaimed List and took steps to eliminate any smuggling efforts. The Treasury Department urged harsher actions toward Argentina than the State Department was willing to impose. The State Department was hampered by a fear that a harsher policy would alienate other South American countries and by a difference of opinion with the British. During both world wars, England depended on Argentina for beef. However, as early as 1942, Argentina’s neutrality policy made it a leading focus of the Treasury Department and the Board of Economic Warfare."
"Safehaven negotiations with Argentina started in 1944. However, the distressed relations restrained any progress in the negotiations. In February 1944, Argentine President Ramirez delegated his powers to Gen. Edelmiro Farrell. The United States failed to recognize the Farrell government and recalled the ambassador. In August and September, the State Department announced more sanctions against Argentina due to its failure to comply with denazification. In response, Argentina withdrew from the Montevideo Committee for the political defense of the continent. The Argentine Central Bank provided little help to U.S. investigators in locating German assets. After Cordell Hull resigned as Secretary of State in November 1944, the incoming Secretary, Edward Stettinius, developed an easier policy toward Argentina. Nelson Rockefeller, the appointed wartime chief of South American intelligence, also favored easier terms with Argentina. Rockefeller-controlled banks illegally transferred funds between the U.S. and Argentina from frozen accounts."
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"Recognizing its increasing isolation from other nations in the Western Hemisphere, Argentina declared war against Germany in the last month of hostilities.
"On Feb. 11, 1946, the State Department released the famed Blue Book on Argentina. The book confirmed that the Argentine government asserted no control over German firms, delaying the efforts to seize the Nazi assets until they were dispersed elsewhere. The book also confirmed that Nazi Germany sent large sums of money to its embassy in Argentina without any serious obstacles. Some historians credit the release of the Blue Book for Peron’s election as part of an anti-American backlash. On May 22, 1946, the Safehaven team reported the total value of German assets at roughly $200 million. The assets included bank balances, real estate and merchandise. The Safehaven team found no caches of art or gems, and assumed that Argentina was not a major destination of looted treasure. The team also reported that no records revealed Argentina receiving Nazi gold.
"As early as 1942, the United States knew of illegal Argentina currency dealings. In April 1942, the U.S. Consulate in Switzerland reported that an Argentine diplomat was smuggling dollars stolen by the Nazis to his homeland for sale; the funds were then transferred to Switzerland. British cables from 1944 show Argentina conducted vigorous trade with Switzerland and often the payment was in gold. By 1945, the State and Treasury departments found decisive evidence of extensive transactions involving the transfer of Argentine pesos, Reichsmarks and Swiss francs from Argentina to Switzerland. In May 1947, Argentina proposed a transfer of $170 million to its Federal Reserve account. Concern over the source of the gold only momentarily delayed the transfer. Guyatt reports that in 1973, after returning to power, Peron sold 400 tons of gold on the black market. Peron code-named the sale Bormann 1345. While the Spanish government tutored the sale, the transfer agent labeled it political. Despite the massive increase in Argentina’s gold reserve and the number of Nazi war criminals who found sanctuary in Argentina, even after 50 years there is little proof of Argentina accepting gold from the Nazis.
"The Cold War badly compromised Safehaven investigations in Argentina. On June 3, 1947, President Truman and Argentine Ambassador Ivanissevich issued a joint announcement that the two countries would renew consultations with other Latin American countries about creating a treaty of mutual aid. In September, Argentina joined the United States and other American Republics in agreeing to the Inter-American Treaty for Reciprocal Assistance, the Rio Pact, for mutual defense against aggression. Bormann’s cloaked companies in Argentina, as well as any treasure, were safe and secure. The hemisphere had to be protected from communism."
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"On April 10, 1941, following the Nazi invasion of Yugoslavia, the so-called independent state of Croatia was established, headed by Ante Pavelic, a member of the fascist Croat Ustashi political movement. Mussolini declared Croatia a protectorate of Italy. Both Italy and the Nazis supported Croatia. The Ustashi also were closely aligned with the Vatican. On May 18, 1941, Acting Secretary of State Sumner Welles reaffirmed the exile government of Yugoslavia did not recognize the independent state of Croatia. Shortly after, Croatia sealed the U.S. embassy in Zagreb. Since Croatia only existed as a state during the war and the United States never recognized it, the figures presented in this section are likely to be subject to revision in the future.
"Postwar reports suggest the Ustashi treasury had at its disposal more than $80 million, mostly gold coins, some stolen from their victims. On May 31, 1944, Croatia deposited $403,000 in the Swiss National Bank. On Aug. 4, 1944, Croatia deposited another $1.1 million in gold. An OSS report in July 1945 concluded that Croat-owned commercial accounts in Bern totaled more than $93,000. The Historical Section of the Task Force of the Swiss Federal Department of Foreign Affairs shows that on July 24, 1945, the Swiss National Bank returned to the National Bank of Yugoslavia all 1,338 kilograms of gold in 121 ingots in the account of the wartime Croatian regime.
"While bank records of deposit are not likely to change much, the gold the Ustashi carried as they fled to Austria as the war was reaching an end is very much in doubt. Estimates placed the value of gold Ante Pavelic had when entering Austria at $5 million-$6 million. Whatever the value of the loot, it is certain that much of it was used to set up and run a ratline with the Vatican. In October 1946, U.S. intelligence reported to the Treasury Department that the Ustashi had $47 million deposited in the Vatican before transfer to Spain and then to Argentina. Due to the Cold War, the Allies expended little effort in returning the thousands of war criminals from Italy to Yugoslavia. The issue of Ustashi gold received even less attention at the war’s conclusion."
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"In August 1938, after the Anschluss the Federal Council ordered the borders closed. Fearing a mix of refugees, including Jews, the Federal Council petitioned the Nazi government in Berlin to affix a “J” stamp on all Jewish passports. The Nazis initially were not keen on the idea because they were still using immigration as a way to free Germany of Jews. Negotiations continued throughout late summer and autumn. Eventually, the Swiss threatened to require visas for all Germans entering Switzerland. The Nazis then proposed the “J” stamp on passports as a solution. Now it was a Nazi idea in the eyes of the Federal Council.
"The only reason the Swiss were so intent on such a marking on passports was to make it easier for border guards to turn away Jews. Despite the myth of Switzerland as a refuge for Jews during the war, border guards turned away more than 30,000 Jewish refugees. In August 1942, the Federal Council passed another law to seal the border to Jewish refugees, despite vigorous pleas from some church members and the press. The Swiss people were not anti-Semitic and opposed the government’s policy. Other than closing the border to Jews, Switzerland passed no anti-Jewish laws. The Jewish community in Switzerland was divided, with a minority favoring demonstrations to allow more Jewish immigration and a majority favoring a policy of “don’t make trouble.”
"Even if the Jewish refugees were able to get past the border guards, Swiss officials demanded to see their passports. If the passport had the “J” stamp, the officials forced the hapless Jews back into the hands of the Nazis. Border guard Grueninger received his order in 1938 not to allow in any Jews. However, Grueninger allowed 3,600 Jews entry and helped them to alter their passports so they could remain. Alerted by the Nazis of Grueninger’s acts of humanity, the Swiss suspended him in December 1938. In January 1939, the government filed charges against him for forging documents. In 1941, a court found him guilty of insubordination and took away his job, retirement and severance pay, and levied a stiff fine. Afterward, he never was able to find a suitable job and was dogged by rumors that he demanded money and sexual favors from those he helped. The former boarder guard vigorously denied the unfounded rumors."
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"From the beginning, Swiss government officials knew of the early methodology of the Nazi genocide. The Nazis invited Swiss army doctors to serve on the Eastern Front to treat wounded Nazi soldiers in Operation Barbarossa. At that stage, roving bands of the Einsatzgruppen carried out the killings by shooting the Jews they rounded up. While the Swiss doctors did not see the killing squads, they saw the effects and reported them to the Red Cross and government officials. A 1943 National Bank Legal report mentions the deportations and persecutions of Jews."
"The earliest news of the Holocaust to reach the West came in a telegram on Aug. 8, 1942 from Gerhart Riegner. The informant who provided the information was a Leipzig businessman, Eduard Scholte.
""Received alarming report that in Fuhrer’s headquarters plan discussed and under consideration according to which all Jews in countries occupied or controlled Germany numbering three and a half to four million should after deportation and concentration in the east be exterminated at one blow to resolve once and for all the Jewish question in Europe. Action reported planned for autumn; methods under discussion including prussic acid. We transmit information with all necessary reservation as exactitude cannot be confirmed. Informant stated to have close connections with highest German authorities and his reports generally reliable."
"Unfortunately, this report was widely disbelieved, even by Jews. Allen Dulles labeled it hysterical Jewish propaganda. Rabbi Stephen Wise, one of the recipients of the telegram, released it to the press on Nov. 24, 1942. After that, everyone was aware of the savagery and horror occurring in the Third Reich."
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"A Feb. 5, 1946 report by the economic intelligence group Allied Claims Against Swiss for Return of Looted Gold provides the best estimate of gold looted from the central banks of Europe. The report estimates the total amount of gold the Nazis accumulated at $648 million. At the outbreak of the war, the best estimate of the Nazi gold reserves was $100 million. The Nazis looted the difference of $548 million from the countries of Europe. The report estimates from bank records that the Nazis sold between $275 million and $282 million to the Swiss National Bank. In addition, the Nazis sold another $20 million to commercial Swiss banks. The report proves that much of the gold ended up in Portugal and Spain after the Swiss laundered it."
"A six-page report, Safehaven No. 2969, detailed the extent of Nazi assets in Switzerland. The document was sent by Americans in Bern to the Secretary of State. ... In the report, a Swiss banker estimates the banks held $110 million in Nazi assets. ..."
"In addition, the Nazis had large amounts of gold, currency, gems and art stored away in safe-deposit boxes. The British estimated the value of 53 paintings at $484,000. The report determined the total value of all the looted paintings at $390 million-$545 million."
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"In February 1945, after much wrangling about imposing sterner measures against Switzerland, Lauchlin Currie, assistant to President Roosevelt, headed the American delegation to Switzerland for talks on stopping the wartime trade and to begin negotiations on gold issues. William Rappard headed the Swiss delegation, although the man pulling the strings was Walter Stucki. In March, Currie reported some success. The Swiss agreed to freeze all German assets; ban importation, exportation and dealing in all foreign currencies; and restrict Swiss purchases of gold from Germany. While the Currie mission was greeted as a success, controversy soon followed. In May 1945, the U.S. Legation in Bern reported the Swiss bought 3,000 kilograms of gold from Germany. The Currie agreement clearly excluded the buy. However, the Swiss argued the gold was not looted.
"In June 1945, Harley Kilgore chaired the Senate’s War Mobilization Subcommittee. In the hearings, he introduced documents uncovered by Allied investigators of correspondence between German Reichsbank Vice President Emil Puhl and the German Minister of Economic Affairs Walter Funk about German-Swiss commercial discussions conducted during the Currie Mission. The treachery of the Swiss received widespread publicity. Orvis A. Schmidt, Director of Foreign Funds Control for the Treasury Department and a member of the Currie Mission to Bern, testified before the subcommittee:
""Even at this late date, the Swiss Government is loath to take the necessary steps to force banks and other cloaking institutions to disclose the owners of assets held in or through Switzerland. This means that German assets held in or through Switzerland will not be identified. Thus, the true picture of German financial and industrial penetration throughout the world will be kept a secret. By the same token, Swiss banks will continue to profit by protecting, through their secrecy laws, German’s war potential and the hidden assets of it financiers and industrialists.""
"In March 1946, formal talks with Switzerland, United States, Britain and France opened in Washington. U.S. negotiators held an optimistic view that the Swiss were committed to the Currie Mission agreement. On the other hand, Switzerland viewed its actions during the war as consistent with the internationally recognized obligations and rights of a neutral power. The Swiss asserted that international law granted the Nazis’ seizure of monetary gold from the occupied countries (the right of occupying powers to war booty). Thus, the receipt of the gold by Switzerland was legal. Switzerland argued the Allies’ claim to Nazi assets beyond Germany’s border was illegal and a violation of Swiss sovereignty. In addition, Switzerland sought the removal of all Swiss companies and individuals from the Allied blacklist."
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" ... Treasury briefing material for the U.S. negotiators urged a global approach to the gold issue, rather than settling the amount of looted gold in each transaction. Also, the Treasury wanted an open-end clause in any agreement, which required Switzerland to return any looted gold found in the future. Treasury Assistant Secretary Harry Dexter White insisted that Swiss funds remain blocked in the United States until the Swiss provided ironclad guarantees that they would identify and seize all accounts under German control. White estimated total of German assets in Switzerland, excluding numbered accounts and cloaked assets, to be $500 million.
"The American negotiators had the benefit of two comprehensive evaluations of German gold movements during World War II. Both reports were prepared from the records of the Reichsbank. Otto Fletcher, Special Assistant to the Division of Economic Security Controls of the State Department, estimated that at the beginning of the war, Nazi gold reserves totaled $120 million. He estimated the Nazis acquired another $661 million in monetary gold during the war, most of which was looted. Fletcher also reported that all gold sold by the Nazis after early 1943 was looted. His report showed the Nazis sold or transferred $414 million in looted gold to the Swiss National Bank. The second report, prepared by James Mann of the Treasury Department, estimated the total monetary gold looted by Germany at $579 million, out of $785 million available after June 30, 1940. Mann’s report decided the Swiss took $289 million in gold from the Nazis."
" ... the Swiss released a report, Swiss Observations With Regard to the Gold Problem that differed markedly from Allied calculations about German gold holdings at the beginning of the war, and questioned the credibility of information provided by former Reichsbank Vice President Emil Puhl. Puhl told Allied investigators the Swiss National Bank knew the gold was looted because he had told them."
" ... Finally, on April 24, Seymour Rubin told Under Secretary Acheson and Assistant Secretary Clayton that the Swiss suspended the talks. The Allies sought the return of $130 million in gold looted from Belgium and traceable to Switzerland."
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"Negotiations with Switzerland continued until 1952 before reaching a final accord. Throughout the years, Switzerland displayed a disregard and contempt for the Allies’ authority. Swiss duplicity marked all the negotiations, especially in the heirless assets. With heirless assets, the Swiss banks had no problems liquidating accounts for the benefit of the bank, but refused all help to Jews seeking the accounts of loved ones lost in the Holocaust. Often the banks demanded a death certificate, knowing the Nazis never issued them for concentration camps victims. This final issue was not settled until the 1990s initiative started by President Clinton and headed by Eizenstat.
"Although there were renewed talks in the 1990s, Swiss duplicity still abounds. A new scandal emerged in 1997 when former bank guard Christoph Meili came forward with evidence that Union Bank of Switzerland was shredding documents about its activities with the Nazis. Meili, a night guard at Union Bank, discovered a large quantity of documents waiting to be shredded. Among them were records of accounts from the war years. The young guard turned over two books and pages ripped from another to a Jewish organization in Switzerland. Swiss law forbids destroying documents that might relate to WWII investigations. As a reward for his efforts to uncover the truth, Union Bank fired Meili. The government also is studying whether he violated any Swiss secrecy laws. The young man was threatened with the kidnapping of his daughters and has since moved to the United States. Even in the U.S., Meili still receives death threats. President Clinton signed a bill granting the Meili family permanent resident status. Christoph Meili has the distinction of being the only Swiss citizen ever granted political asylum in the United States."
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