The CIA Covenant
Nazis in Washington
Muller's Journal's
by Gregory Douglas
Thursday, 4 May 1950
Every so often, one plants a seed and then forgets about it. Actually, doesn’t forget about it but it
gets pushed to the bottom of the pile. A little earlier, I had the acute pleasure in seeing one of my small
acorns suddenly sprout into a massive oak tree! It started early in the morning when Angleton called me in
some agitation and said he simply had to see me at once. As he knows full well who I am and where I live,
I told him finally to come over. He said he would walk, not being that far from here, but from the look on
his face, I would rather thought he had run over.
He had not yet been inside the house and he was greatly impressed with the nice things I have on
the first floor. Such a nervous, pale and very obviously distraught man he was. Then I took him into my
library with all the Catherine the Great items (from her palace) about and asked him to sit down. I turned
on the recording device by the simple expedient of opening a desk drawer and asked him what I could do
for him.
Although badly frightened, he managed to maintain his sly demeanor...at least up to a point. He
asked me if I had ever heard of a Brontös Karlsefni! The oak had grown at last! I said that I certainly
recognized the name. What did my honored guest want to know about this man?
What could I tell him about this man?
What did he himself know?
Brontös Karlsefni, according to our subsequent conversation, was an Icelander from an old Norse
family. He had lived in various countries and had done intelligence work for a number of these countries,
including Germany. Yes, I cautiously acknowledged, I had used this man’s services in the past.
Angleton then went straight to the point, that is how badly rattled he was. Normally, he would
wander around making sly, oblique remarks that would mask his ignorance and give him the impression of
knowing everything. In this case, it was I who knew everything but he didn’t know that.
It comes down to the fact that Angleton, and others at the CIA, have heard that this man, who
might be working for the N.K.V.D, had amassed considerable information on many O.S.S people and, of
course, of many CIA people. Angleton heard that Karlsefni might be trying to sell his papers here in the
United States but he did not know to whom. Since I had known K. “in my previous life” (as if I were the
victim of reincarnation) A. wanted to know if I had heard from K. If I had not, did I know how to contact
him?
I would have absolutely no problem whatsoever in getting into contact with the elusive Karlsefni
because I am Karlsefni! I invented this man many years ago as a cat’s-paw or a straw man upon whom I
can blame many things. I at once told A. that if he would wait a moment, I would get a file.
I didn’t even have to go to the wine cellar and within five minutes, I was back again, just in time
to catch Angleton attempting to get into my desk. He pretended he was looking at my silver-framed picture
of Bunny (whom he knows socially) and we all went on with the theater.
He looked at the file and went as white as my handkerchief. “Oh, my God, we are all finished!” he
kept saying.
Wonderful performance on my part as I managed to look both concerned and conspiratorial at the
same time. Angleton at once told me that he wanted to find out where K. was now so he could have him
killed!
As I know, A. has had quite a few people he did not like killed. Some by Pash and some by
others. I should let him use Arno’s services but then I would tell Arno to finish off Angleton and throw him
in the Potomac down by the canal.
“Yes,” he said, “this man must die as soon as possible before he makes more trouble for all of us.”
He tried to include me in this, to enlist my support of course, by saying that K. would expose me too and I
would have to stand trial.
I think not, James.
I told him that K. had been in Japan with Meisinger and then ended up in Chiang’s China and at
this point, I thought he was in Taiwan acting as an intelligence source.
Angleton said: “We have friends there. Try to get an address and I’ll have him killed at once.”
Of course I said I would try and then invited him to stay for breakfast. They all like free food and
he is no exception.
He kept looking at some of my treasures and I finally told him what he already knows, namely
that I have been selling stolen loot for the CIA since 1948.
He knows (James Speyer, ed) Kronthal, their station chief in Bern very well and went on about his
art dealings. Angleton is jealous so to draw him further into the web, I gave him two small paintings and a
nice gold necklace for Cicely (his wife, ed.). Knowing that they were in all probability stolen in Paris from
Jewish collectors, Angleton had no problem taking them home. The rumor is that he is part Jewish on his
mother’s side but I am certain his greed overcame his racial unhappiness.
I intend to enlarge on the K. issue and produce some highly incriminating material on Angleton
and several other potential troublemakers. I will do this in a spirit of friendly assistance on the face of it but
beneath the mask, a warning: I have this now so be very careful where you walk or indeed, you will swing
from a rope sometime.
Push the man into a corner but always allow him the ability to make a graceful exit...on your
terms only.
James Jesus Angleton was the gray eminence at the CIA. A Yale graduate and well known at that
institution as a poet, Angleton went into the OSS and operated in Italy during the war. His father had a
business there before the war.
Angleton spied on everyone, including the CIA, bugged everyone’s offices and telephones and
made recordings of all kinds of highly compromising conversations that he gleefully played for the
voyeuristic enjoyment of Allen Dulles.
When Angleton became head of counterintelligence for the CIA, he continued his unsavory
activities, to which he added assassinations. Anyone whom Angleton felt to be a danger to him or his
agency was subject to being terminated “with extreme prejudice,” a term invented for CIA murders.
It was a term used extensively during his reign
In 1961, Angleton and several of his associates developed a dislike of Dag Hammarskjöld,
Secretary General of the United Nations. Angleton felt that Hammarskjöld, who was attempting to interfere
in the CIA-instigated upheaval in the mineral-rich Belgian Congo, was not properly oriented to the CIA’s
goals and the former Swedish foreign minister’s aircraft was sabotaged near Ndola in Zambia. The
Secretary General died in the crash.
In 1963, furious that President Kennedy was secretly planning to establish a rapprochement with
Fidel Castro and also because of his firing of Allen Dulles as head of the CIA, Angleton became involved
in a successful plot to assassinate the president.
A considerable body of documentation exists, one is told, on these subjects and as distant felonies
become nothing more than interesting history, perhaps much of this will surface in one forum or another.
Dean Swift’s description of the proceedings of the Academy of Laputa, while bitter satire, are very close to
the mark indeed.
Saturday, 6 May 1950
Truman has reluctantly agreed to release a number of security files concerning various State
Department officials. There have been some problems with McCarthy and the figures he released earlier
about known communists in that department. The problem with M. is that he is not always entirely sober
and he changes his stories from day to day. Here I had given him very concrete information about known
and proven communist agents working, or at least assigned, to the State Department and he has made a
terrible mess of the matter by simply forgetting the facts. His figures go up or down depending on how far
he has progressed into his daily bottle.
I had a very nice note today from Heini Schumacher in Germany, congratulating me on my
birthday last month.
Müller was born in Munich, 28 April 1900.
Also made a number of sarcastic remarks about British Intelligence who have been speaking with
him about me. They wanted me to work for them and initially confused Heini with Dr. Hans S. of the
RSHA! I think they wanted his services too!
Heinrich Schumacher, former SS-Untersturmführer and member of the Gestapo, worked in
Müller’s private office from 1939 to 1945. Dr. Hans Schumacher was an SS-Sturmbannführer in the SS
Main Security Office.
My, we are all so much in demand these days, aren’t we? The Russians have acquired a number of
my men, the CIA has grabbed off a whole train full, CIC has more and MI 6 has the rest. As long as no one
can prove a Gestapo man shoved Jews into the coke ovens at Auschwitz then he is home free. Sometimes
when I get together at home here with some of my old fellows and the beer and sausage is much in
evidence, it’s just like a Lokal in Munich or Berlin.
Heini is doing very well and maybe I can bring him over here one of these days.
Also a note from my father who is also doing fairly well. Since my mother died three years ago,
he is still sad. Also, the Americans keep trying to interview him about me that shows how stupid these
people can be. He’s still going strong at seventy-five which bodes well for me.
Müller’s father, Alois, was born in Neuberg a.d. Donau in 1875 and died in 1962 at the age of 87.
I have cut way down on the Cognac, one glass a day in the evening, and the cigars, also one a day.
Good exercise every day and I watch my diet. I have gained a few pounds but I do my exercises and carry
the weight well enough. I look better at 50 than most of my co-workers do. Of course they are great
drinkers and smokers and most have fat tires around their middles and will die of heart attacks in due time.
Their wives are bored and such is my Christian charity that I like to fill their wasted hours with
anticipation and joy. And after a pleasant afternoon on the mattress with a wife, I get to see the husband
puffing around the building the next morning and coughing like the last act of “Camille.”
Am working on the menu for the T. dinner. The pianos are in place and Bunny and I are working
on the music now. The silver needs to be polished as do the windows in the dining room, the crystals on
the chandeliers, the floors, the chairs, table and so on. We will have to do some local hiring on a temporary
basis to augment the staff. I want a footman for each guest and we don’t have enough on hand here.
At this time, we have myself, Bunny, her aunt, the Pres., Arno, Heini, Irmgard, Heini’s brother
and two of Truman’s people. That makes ten. T. at one end of the table, myself at the other and four each
on either side. A nice balance. I will need to hire six more people and I want matching livery for all.
More details as decided.
What a triumph for me!
T. would never go to, let us say, the Wisners even though they are well
connected socially. Both Frank and Polly come from moneyed families. Frank, though he came from the
south, originated with the Gardner family, which is a very old family and owns an island off of Long
Island. Living in baronial splendor, those people do.
There is also the question of decorations.
I asked Truman very discreetly if he had any objections to my wearing my decorations and he said
not at all. He would wear his, he said, and the people he was bringing would be most discreet. What a most
interesting thought!
Here am I, in America, living better than I ever have before, entertaining the most powerful man
in the world in my house at an elegant banquet, and wearing all of my decoration from both Reichs!
Sophie would break her teeth in envy. That woman has no sense of presentation and I had to keep
her at home in Berlin.
Well, she can live in poverty in Pasing and I can live in splendor in Washington and that’s the
way of the world. At least for now.
On my visit to Colorado, I met a real estate fellow who now tells me that he had a very nice place
for me to look at. Six hundred and fifty acres and a beautiful house already on it. Skiing and mountain
climbing nearby, an all-year stream filled with trout, deer and elk abounding, just waiting to be shot. All
for less than a hundred thousand dollars! Just about what I got from the last auction of my looted art at
Christies.
Comes in and goes out again, just like food but a lot more sweeter-smelling!
I will buy it next week and consider moving a quantity of my furnishings there. Perhaps I can get
Heini’s brother to live there as a housekeeper until I decide I have done enough damage here. Washington
is a very unpleasant place. The climate is awful, the blacks (which make up most of the permanent
population) are very poor and kept in their place and the old time Washington people, the Cave Dwellers,
are acceptable but the rest are liars, thieves and pompous idiots. The people I work with on a daily basis are
psychotic criminals only some of whom can be said to have brains. Everyone here sleeps with other people
and a man who is loyal to his wife, or a wife to her husband, is considered to be a “quaint oddity” as Bunny
says.
It is always this way at the top of things so the thought of retiring into the mountains in some
elegance has very much to offer me.
As long as Truman is in office, I have no worries but the question is, will he run again? He is
having so much trouble with his public relations that he has said he might not run. To have great power and
to voluntarily surrender it takes enormous character.
Truman has this character; Roosevelt did not. Drooling and completely senile, that one had to be
carried feet first out of office.
Robert was talking to me yesterday about the situation in the Orient. He feels that there might be
some trouble there but has been told to keep quiet about this as no one here wants to deflect Truman’s gaze
(and support) from Europe. There is, after all, a lot more money for our people to make in Europe than
there is now in Asia.
And John Dulles is certainly cleaning up with all his support for various German business
interests. I chatted with Behn last week and he was delighted with the way Dulles is reconnecting with the
old German business structures. Of course D. is making huge money in bribes by doing this. Clever people
pay him in Farben stock, etc., so that he will have an added incentive to improve the value of his holdings.
Poor (Joseph P., ed.)Kennedy has had all of his German stock put under the Alien Property office here and
can’t get at it.
The Kennedy shares of I.G. Farben stock were released to the family when Kennedy’s son,
Robert, was installed as Attorney General after the election of his brother to the Presidency.
Friday, 12
May 1950
Dr. Oppenheimer has been accused in California of being a communist with the usual uproar from
the liberal community. He is most certainly a well-known source for the Soviets, as I know from my own
files. Pash knows about him but was shut up by Roosevelt who actually wanted Stalin to get information
on the atomic bomb! Now, no one wants to talk about these things.
(Senator Dennis, ed.) Chavez is now attacking Budnez for joining the Catholic Church, which he
claims, is a “cover” for his ongoing communist activities. MacCarthy is very angry with this but Chavez is
a Democrat so what can one expect. I understand the Church will fire a thunderbolt at C., which probably
won’t have any effect. These Congressmen have hides like a rhino or a Nile crocodile and very little can
offend them. They hide behind their immunity and attack everyone. I think the new Tower of Babel can be
found in the capitol building. I have sat in the visitor’s gallery there and have seen a number of
Congressmen at the Metropolitan Club and they all remind me of nothing more than the American version
of Schaefer’s Dwarves who used to entertain circus-goers in Germany! My God, when you think of how
much power they have, you are constantly amazed how such awful shits could run a great country. We
could put dachshunds in there and they would do much better. Of course the Reichstag members were not
much better but they were a great deal more careful not to get caught stealing. These assholes might as well
set up stalls in the rotunda with prices above them.
It seems the widow of Woodrow Wilson had made off with some important state papers that made
her husband look rather bad and refused to return them to the archives. Last week, someone broke into her
home while she was out and recovered them.
What do they say?
That Wilson hated Negroes, referred to them as “niggers” and threw all of them out of the
government! Also, something for Hoover to chew on. He is blamed, along with Attorney General (A.
Mitchell, ed.) Palmer, of instigating a series of raids on any kind of left wing person or group they could.
Wilson was supposed to be “totally unaware” of what they were up to but the newly found papers show
that he actually ordered these raids!
This, coupled with his constant invasions of Mexico and other Latin American countries, makes
his “self-determination” of nations utter shit. Of course, Wilson was only protecting American business
interests (in return for the usual money under the table) and nothing else.
Well, Wilson was a Democrat and they are still in power but I did manage to get photocopies of
the papers. For a man who was so self-righteous, Wilson was a notorious womanizer and now, a vicious
bigot. We must paint over our heroes for the history books so Woodrow will not lose his halo...at least not
during the Truman Administration.
Wilson was an evil man whose father was a preacher; and was completely in the pockets of the
British bankers, hence his determination to drag this country into England’s trade wars. Considering his
end, he paid the price for his duplicity, tottering off the stage and drooling on his diapers. It wouldn’t be so
bad, I suppose, if Wilson was an outright Napoleon whose aggressive actions were scarcely concealed but
he posed as such a righteous and pious man.
You watch out for that kind, believe me. They preach sermons on Sunday and bugger the maids
the rest of the week.
Klaus and I are working on the menu for the Truman dinner. He showed me a number of Escoffier
suggestions and I have finally decided on:
Hors d’oeuvre
Consommé Leopold
Bisque d’Écrevisses
Turbotin au Volnay
Whitebait Diablé
Poularde á la Diva
Concombres au beurre
Selle d'agneau Portugaise
Haricots verts á l'Anglaise
Faisan Périgourdine
Salade d'Endives
Pâté de foie gras
Biscuit glacé aux marrons
Savarin aux fruits
Friandises
I will leave the choice of the wines up to my wine man. I do like a good wine but for such a
dinner, a real expert is necessary.
And we now have the extra help secured so at least some of the staff won't have to wear knee
britches but instead they can polish the place up for the President. I had both pianos tuned today. One
needed it rather badly but the other was still nearly perfect.
Bunny and I are going over the Bach...I have decided on the double concerto in C major (the
BWV 1061). The first movement is without a tempo noting but I have practiced it in different tempos and
have settled on one somewhat slower than usually played.
I like this piece because it can be performed without an orchestra and is essentially a tightly knit
duet between two pianos. It calls for great coordination but I am confident that we can pull it off. It should
run a little over fifteen minutes that I assume is just about long enough to keep the President's attention.
The second movement is quite a beautiful work and the final fugue is enjoyable. The first movement is the
most difficult and the rest is easy.
I had the pleasure of a visit from Dr. Lamb today. That's my French doctor friend who is so good
at giving heart attacks to people who are in disfavor. Wisner took my advice and hired him and he came by
to say thank you. Of course he did his favorite lamb with garlic (hence my name for him) and we ate in my
private dining room just off my bedroom. It's the one room in the house that is absolutely secure from the
point of listening in.
Arno joined us for lunch and it was very pleasant. Most of the conversation was conducted in
French and Arno is much more fluent than I am in that language.
The good doctor has already removed several unwanted people and discussed a new "medicine"
he had been working on while living in Switzerland. Also discussed how to give people cancer (by
injection during a routine physical examination) and other pleasant topics.
Arno, who prefers the silk garrote or the knife, was fascinated by the doctor's techniques and we
had a jolly time over the dessert discussing whom in this country we could kill off. I suggested Henry
Morgenthau, Roosevelt's Minister of Finance. That nasty old Jew tried his best to destroy Germany and
only Truman was able to prevent him, and his evil communist spy, co-religionist and right hand man,
Harry White from carrying out their psychotic plans.
I know where M. lives and I suggested to both the doctor and Arno that they might both pay him a
visit. Arno would certainly like to learn the joys of the hypodermic needle (although the doctor has now
developed a spray which is just as effective and doesn't leave any telltale marks on the ass). It would
probably not come about because I need Arno here and the doctor is up to his chin in various CIA
assignments.
In the event, Henry Morgenthau, former Secretary of the Treasury, didn't die until 1967 and since
Müller doesn't mention him again, it is reasonable to assume that Roosevelt's Hyde Park neighbor died a
natural death. Many others, however, did not.
Two issues which do not directly concern my activities but are of great historical interest. I will
put copies of these into the files for possible future use.
One is a copy of a report made by Henry Wallace in October of 1945 to President Truman. At that
time, Wallace was Commerce Secretary in Truman’s cabinet. W. had been in direct touch with Soviet
intelligence throughout his term as Vice President under Roosevelt. He expected, and Stalin wanted him, to
be the Vice President, next in line to the presidency. It was obvious to all, including Roosevelt that the
latter was very quickly dying and both Stalin and his partner, Roosevelt, wanted Wallace in the White
House.
Why? Because Wallace is a very dedicated communist and has been for some time. This pushing
forward of Wallace was evident to the leaders of the Democratic Party and they balked at having a Stalinist
president. They forced Roosevelt to replace Wallace with Truman, something Stalin was livid about.
But, Truman kept Wallace on for a time just to placate the liberals in this country. Wallace, who
made regular visits to the Soviet head of espionage here, had kept up his treason even into Truman’s reign
and in spite of the fact that T. detests communists.
Finally, W. sent Truman this aide memoir that I can only term as the ravings of a feeble-minded
fanatic. Wallace insists that he alone would be the only choice for an American president who could best
cooperate with the Russians. He told T. that Stalin admired him and that he, Wallace, was fully prepared to
“integrate American foreign policy with Russian foreign policy” so as to be able to better serve the cause
of world peace! Truman went through the ceiling of the office when he read this and Wallace was finished
forever according to what T. personally told me.
This man should surely be fully exposed in public as a Soviet agent-in-place and either forced into
exile or removed, permanently, from the scene. I don’t think T. would approve of this although I know that
Roosevelt had Huey Long killed and got to the Pope to have Father Coughlin shut up. Killing a popular
priest would not be a good idea but killing a populist, intelligent and very dangerous political opponent
who could have kicked Roosevelt out of office, was much more practical.
So much for one distasteful matter. Now, on to the other business.
I have a very secret copy of a National Security Council meeting on my desk that deals with
American military strength. It shows, very clearly, that this country has seriously weakened its military
forces by demobilizing its armed forces and not seeking any means to expand them in the event of war.
Very pessimistic report. Also, the report (of two meetings held in the last three months) writes the Far East
completely out of American defense perimeters. I mean complete abandonment of all U.S. bases in the
Orient with the exception of occupation troops in Japan. These are there to prevent the Japanese from
becoming strong again and, believe this or not...threatening Stalin’s flanks!
Oh yes, this bit of shit is the result of Roosevelt’s connivance with Stalin. That part is on paper
and I have a copy of it. Roosevelt had to bribe Stalin to get into the Pacific war and then promised him that
the United States would stand guard in Japan for twenty years to keep Japan from ever threatening Russia
again.
The Japanese are very fortunate that there were no Jews in that country or there would have been
a Morgenthau Plan in place for utterly destroying that country as well.
As it was, Roosevelt’s Jewish advisers almost succeeded in Germany until God intervened and
stopped the beating of that moral leper’s heart. Hundreds of thousands of German prisoners of war were
allowed to die in the Rhineland camps from starvation and disease. This by instructions of Roosevelt and
with the full and willing cooperation of Eisenhower who hates the Germans because of their attitude and
actions towards the Jews. Also, the food levels in Germany had fallen well below the subsistence level,
another planned project by the Morgenthau people as the final part of the extermination of the German
people.
There was to have been a total dismantling of all German industry, both in the eastern zone and in
the west. This was moving along until Roosevelt died. Then, a period of uncertainty and Truman put a halt
to the killings and ordered food into Germany. My God how the cabal hates him for that! And Moscow
was also furious which again made the cabal angry.
They are as attentive to the wishes of Moscow as Wallace is and they view Truman as their worst
enemy. No wonder the Stern gang tried to kill him and that certain press barons loathe him. Bismarck said,
“Many enemies, Much honor,” and if we can judge the character of a man by the character of his enemies,
the Pope will make Truman a saint while he is still alive!
He disrupted their timetable for them and they do not forgive. If Truman runs for office again, the
cabal will put up Eisenhower without a doubt and if he gets in, God knows what will happen. The CIA will
double in size overnight and all their psychotic and murderous little children’s games will become state
policy. God will then truly have to help even the smallest foreigner to whom the CIA drunks take a dislike.
They will have to formalize all this with a Secretary of Death who can oversee all the small, vicious wars,
public assassinations, poisonings, thefts, currency counterfeiting, internal disruptions, induced diseases and
so on.
And these things are also directed at plants as well as people. I am privy to a project that would
attack the rice crops of China and India and destroy them overnight, like the potato blight in Ireland in the
last century. That was England’s way of getting rid of their Irish slave problem. I doubt if the rice plot will
go anywhere because such things cannot be controlled and rice growers have some power in this country.
Oddly enough, Wisner comes from the south where rice is grown and is a staple in some areas. He will put
on the brakes on this bit of nastiness but who knows what other wickedness will germinate in its place?
Here we have a nation which is still beating Germany for being terrible and brutal and even in our
worst moments, we Germans never even began to approach the monstrous viciousness of the people with
whom I have to deal on a daily basis.
I think I should have stayed in Switzerland and at least tried to hang onto some shreds of self respect.
Doesn’t the Bible say that he who touches pitch shall be defiled?
At the Metropolitan Club last week I heard a very prominent American educator say, in my
hearing although not to me personally, that it was too bad Hitler didn’t kill off all the Jews because most of
them came over here and are digging in like an army of moles. Some of the high level, establishment
people I have met at the Club, including Colonel Behn, talk like a meeting of SS leaders only they are far
more vicious.
These men have the power and the liberals merely have the press, the motion picture industry and
the bureaucracy. In pitched battle, who would win?
What did von Seekt say when asked about where the German Army stood during the early,
troubled days of Weimar? “The Army, gentlemen, stands behind me!”
That’s what the whole thing is all about. Where does the Army stand? Certainly not behind
Morgenthau, White, Wallace and Baruch but behind...? The establishment here, which is certainly not
liberal and when word reached into the silent and sacred confines of my club that Roosevelt was finally
dead, there was loud cheering and the popping of many champagne corks. I was told that there was a
movement to go over en masse to the White House and stick pins in the imperial corpse to be sure he was
really dead.
In the event, no one ever went there and the casket was kept closed. There is some speculation as
to why this happened as it went against strong convention but speculation is just that. Some have said he
was assassinated but I believe his sclerosis and high blood pressure killed him, just as the reports say. Still,
his official doctor is still running around claiming that Roosevelt was in “perfect health” right up to the
minute he fell off the chair. A bad doctor or a political one, who cares? Like Wallace, he has no more
power either.
I am still concerned about the NSC reports. Should Stalin get wind of them and realize that there
are no defenses in the Far East, you can believe that Josef will at once move in there. Nature abhors a
vacuum and Josef knows this. If I were making policy, which I am not, I would advise Truman to put Asia
back into the game, at least on paper.
Hoover claims that he knows all the communist agents in America but this is nonsense. My
Gestapo was far more efficient than his FBI and I am, modestly, far more intelligent and capable than
Hoover, and even I, in a much smaller and more easily controlled country, would never make such a banal
and utterly stupid statement.
The 20th of July exposed a lot of these vermin and I was finally able to get at some of the more
insidious of the traitors but in this vast, unorganized and basically rebellious country, no one who is sane
could claim that they knew “all the communists in America.”
Speaking of Behn, we talked about the Swedish Wallenberg family at some length. It seems the
Swedish bankers were going to help Stalin rebuild Russian economy with enormous, low-interest loans.
Once that got out, that had to be stopped dead in its tracks and the pressure was put onto the Wallenbergs
to stop giving Stalin a sou (a cheap French bronze coin, ed.). Josef, losing the money, was in a rage and
threatened to attack Sweden, which would have been impossible. His army, like the American Army, is a
mere shell of what it once was and his industry simply could not support a war, even if his broken
economy could.
We beat Josef in the Berlin business and as far as I am concerned, we stopped any military
adventures at that point. Stalin was humiliated in the eyes of the world and he will now be reduced to
subversion, treason and infiltration instead of military action.
How much longer can the old man survive? Reports indicate that he is becoming more and more
irrational as time goes by and he is terrorizing his closest associates. If Josef reads history, he should
consider the end of Caligula. Never terrorize your own bodyguards. And again, look at what Fouché did to
Robespierre! A wonderful bit of work which has gone relatively unreported. If you are forced to use terror,
use it sparingly and against limited, unpopular targets, not against your allies.
Fear can accomplish what reason cannot. Men, who are nearly impossible to unify, will do this
under fear of death.
Thursday, 25 May 1950
The dinner was a tremendous success! I had to take time to digest the food and the evening, in
equal amounts, and allow things to return to their usual chaotic levels before taking the time to jot down
various impressions for this journal.
Someday, I suppose, I should publish it but, God forbid! not while I am alive or I shortly wouldn’t
be.
All of the plans were carefully laid, the food and wines laid in, the whole lower floors carefully
cleaned and polished, the temporary servants instructed, last minute changes taken care of and so on.
I have had my friends in before but never like this.
Truman came quietly but very punctually at eight. We were to eat at nine and everyone was in
their best dress. As I wished, I was able to wear my decorations (some in miniature); the tailor had
delivered my formal wear and gave me the last minute fitting about five in the afternoon.
Bunny and her aunt arrived at seven thirty and all of us went into the drawing room to talk and
wait for the President to arrive. He was announced exactly at eight and I was in the main hall with Bunny
to greet him. He brought two aides with him, very discreet fellows, and no great retinue of guards such as
Hitler or Stalin would have used at such occasions.
Neither Truman nor myself grew up in a great house but I dare say we all behaved in a most
civilized and correct manner. Introductions were made and we all sat in the drawing room and had very
polite conversations until dinner was announced.
The President took Bunny’s aunt in to dinner, I took Bunny, Heini took Irmgard and the rest
followed two by two. I had footmen in the halls, standing along the corridor, and the dining room was
magnificent to behold. The crystal chandelier blazed with light and there were glorious floral arrangements
on the table and sideboards. All of the china and silver had the Imperial Russian eagle displayed. I never
bothered to tell Truman that this had come from the Imperial palace complex at Pushkin, courtesy of the
Wehrmacht.
There was a servant for each guest, a forest of crystal glasses and a great rack of knives, forks and
spoons displayed on each side of the service plates. Elaborate folded linen napkins and hand-lettered place
cards were all there. I must say, it looked like a state dinner, not a pleasant evening among friends.
Truman sat at one end of the table and I the other and we were still close enough to hear each
other’s remarks. I think we could have had more women present but three was almost enough.
The dinner was perfect. Klaus had surpassed himself (he did get in a French cook to help him) and
the service was seamless. The footmen stood against the walls until they were needed and Klaus did not
make the portions so large that there would be no room for the next one.
I began with a toast to the President who graciously responded with a toast to me and then we all
sat down to a magnificent dinner and actually interesting conversation.
After dinner, we all went to the music room and Bunny and I performed the Bach for Truman. It
went off very well and neither of us missed a note. The piece was just long enough to enjoy and not be
bored. When it was over, Truman stood up and applauded and we both bowed to him. And then, I thought
a nice touch, I said,
“Now, Mr. President, from the sublime to the ridiculous...”
And without mentioning this to Bunny (for it was an impulse on my part) I sat down and played
Joplin’s “Felicity Rag” for him. It went very quickly and when I looked over at him, he was beating time
with one foot as well as his hand. I also noticed that he was smiling broadly. And he also gave me a round
of applause when it was over saying,
“Of course the Bach was first class but I really enjoyed the last piece.” And he asked me where I
learned it.
We discussed music for a few minutes and then I took him by the arm and said I had a pleasant
surprise for him and would the company excuse us? They did and I walked the President down the hall to
my study.
It is far too ornate for me to work in but I have a desk in there and like to receive important people
there rather than upstairs in my bedroom where I actually work.
The room was filled with relics of Catherine II, including a huge portrait in a gilt frame over the
marble fireplace, and two large glass cabinets with extremely rare Russian icons displayed. The President
was suitably impressed and I asked him to sit in one of the leather armchairs while I poured both of us a
drink. I had my usual cognac and I gave him a Waterford glass with the good bourbon in it.
One drink of it and his entire face lit up.
“My God, Heinrich, this is first class! Where did you get it?”
And I told him.
All together, he had three drinks (he holds his liquor very well) and I had two plus a good cigar.
Basically, we talked about his career and mine and his plans for the future. And, of course, we had
a very serious discussion about the people and groups who thought they controlled this country. A very
frank discussion, I must say. And T. kept asking me for my opinions on various matters that, considering
everything, was most flattering.
Whether it was good manners, the drinks or the overall evening, I do not know but he was
certainly open and very sincere.
He hates McCarthy as a crude demagogue and a man “who has no character to lose,” but
recognizes that what M. is doing is important in neutralizing the influence the extreme left has had in this
country. He will continue to rail against the Senator from Wisconsin but will do nothing.
Clifford had dug up some of McCarthy’s homosexual activities but Truman flatly refuses to
permit this to be used.
This led us into a discussion about the Senate vote on Wednesday to fund an investigation into
homosexuality and other such perverse activity in higher government circles. The local police estimate that
there are many hundreds of these assholes working in the State Department alone and Truman agrees that
we have to weed them out.
My argument was that we ought not to simply persecute these creatures for their activities but to
get rid of any such government employee so inclined because of the very real risk that Soviet intelligence
might discover their activities and blackmail them into working for them!!! Not that they haven’t already
but it must not be permitted to continue.
State has already dismissed about a hundred such in the past year but it doesn’t touch the rest and
this must go on.
Of course, as I told Harry (he has asked me to call him that!) that if we weeded out all the
homosexuals in government, did that include Congress as well? And where would it stop? Better to
frighten them, like I am frightening the communists and their friends, so as to keep them quiet. Like
Voltaire’s “Candide,” we can shoot one to encourage the others.
I did also mention the concern I had about excluding Asia from our sphere of influence. I clarified
this by saying that I had no agenda for him but was merely expressing my concern based entirely on my
knowledge of Stalin and his workings. Harry agreed with me completely and will try to give the impression
that we are not disinterested in Asia.
When I judged that we had said enough, and he had drunk enough, I rose and we went out into the
hall and down to the drawing room. It appeared that everyone was enjoying themselves without us and all
in all, it was a pleasant, and for me, a very important moment in my life. After all, I was never invited into
the Chancellery or to the Berghof for one of Hitler’s social occasions and I can just see what would have
happened if he had come to one of my wife’s one-pot dinners!
I like to sit back and enjoy a good cigar and a glass of first class cognac in peace and quiet and to
contemplate the amazing things that Fortune does for some of us!
When Harry was leaving, I had one of the servants carry out the remainder of the case of bourbon
to put into his car. “My Lord,” he said, “now that’s what I call a royal present. Believe me, I would rather
have a case of that than get an honorary degree from Harvard!”
And we all parted in the very best of humor and I went upstairs, kicked off my pumps and had my
cigar and a final cognac before going to bed, all alone except for the ever-attentive Maxl who seemed to
know how pleased I was.
Muller had strong views on security and he had no hesitation in expressing them when and where
he thought best. He had no real knowledge of the actual condition in Asia other than as it might be
reflected in Stalin’s plans. By linking the two together, he made a number of very well educated guesses.
How successful he was will be seen later.
During the late 1940's, the question of homosexuality in government was coming to the forefront
in America along with a long-festering fear of communist infiltration.
There is no doubt that many government employees were so inclined and openly recruited others
of their persuasion to also seek government service. This was not to promote sedition but merely to have
congenial working conditions, and perhaps, even more congenial after-hours activities.
Intelligence officials do not tend to be moralists or they would not be in their occupations, and
their basic concerns insofar as homosexuality is concerned is a vulnerability of the subject to outside
pressures and very possible manipulation by outside persons or agencies to gain influence or confidential
information.
The Russians are well known to exploit sex as an effective tool for recruitment or entrapment, and
this exploitation certainly did not stop with Glasnost or the subsequent disintegration of the former Soviet
Union.
Just before the end of that geopolitical entity, a scandal involving a homosexual prostitution ring
surfaced in Washington at the highest levels and the major concern expressed at that time was the
possibility that the KGB might very well be involved.
One of the people involved was a White House press aide who briefed President Reagan daily on
press matters.
When his name was found on credit card vouchers for what turned out to be service fees for male
prostitutes, Todd Blodgett, 28, admitted his name had been used and that parties with naked male
prostitutes had taken place in his apartment but, like Harry Dexter White, flatly denied that he had any
guilty knowledge and had “no idea at all” how his name and signature had gotten onto the vouchers.
At the time this scandal broke, the major concern among the Secret Service and other intelligence
agencies in Washington was that the inclusion of top government and military officials in the scandal
could well, and strongly, indicate the delicate hand of the KGB. A full discussion of this issue and its
intelligence concerns is made in an in-depth, front page article in the “Washington Times” of Thursday,
June 29, 1989, “Homosexual prostitution inquiry ensnares VIPs with Reagan, Bush.” [almost certain this was the tie in to Omaha,Larry King and that band of sick pups involved in the Franklin Scandal DC]
Thursday, 1 June 1950
McCarthy has really gotten his teeth into this communist business and is now fencing with the
State Department. That agency claims that McCarthy has not uncovered a “single communist” in their
department and has gotten the U.S. Attorney General to attack McCarthy. However, in the Commerce
Department, two senior people, Lee and Remington, have been asked to resign for the reason that they
have been involved with communists in the past.
There is the question of loyalty oaths. A genuine communist agent would pose as a black stocking
Republican and cheerfully sign ten such oaths. An intellectual communist would not. One gets by the
public screening and the other does not. Of course it is obvious that Hollywood is full of left wing activists
but no one wants to make a distinction between some soft headed left wing idiot and a cold, calculating spy.
Well, they will certainly pay for their flirtations with the Mad Maiden of Moscow, won’t they?
Friday, 9 June 1950
An interesting story today in the papers that I knew about a week ago.
Incriminating stolen papers found when the left-wing offices of “Amerasia” were raided in 1945
and seized, illegally, by the O.S.S! It turns out that some of these very sensitive documents clearly
connected the father of the CIA with pro-communist and certainly treasonable activities. Secretary Forrestal
himself tried to block the business but Truman overruled him. Such a rushing around and cover-ups!
I can say that a number of my colleagues at the CIA are very frightened the way this “witch hunt”
is going and would like to shut McCarthy up for good. I strongly doubt if they would have the nerve to kill
him and they probably won’t. They are frightened that their own flirtations with the left, either while in
college or when working for the very pro-Stalin OSS will emerge and ruin their chances in the great shield
(and organizer) of current U.S. foreign policy.
My knee is bothering me again so I am going to take off a week and give it a rest. I like to walk to
work and then take a long stroll around about lunchtime and admire the pretty secretaries out on their lunch
hour. I haven’t the time, what with the various CIA wives I have been sleeping with and with Bunny who
is seriously thinking of moving into my house (flattering, but to be discouraged for the time being). Too
much secret work being done there.
Saturday, 24 June 1950 through
Thursday, 29 June 1950
Momentous occasions! I’m putting this down based on brief notes taken over the last five days.
Harry decided to go back to his farm on Saturday and everything was very quiet in Washington. I
was looking at some paintings and seeing to shipping some more degenerate art to New York for a Christie
sale. Late in the afternoon, while I was sitting out on the terrace with a glass of iced tea, discussing the
garden with Bunny, Heini came running through the door.
“There’s war, boss, war!”
I nearly fell out my chair. What was all this about? Someone had called from the agency to tell
me, urgently, that the communist (North, ed.) Korean Army had launched a full-scale military attack on
their southern neighbors! I was to go to the office at once and a car was sent for me. This was in my
capacity as an expert on the Soviets, not as an Asian expert.
A disturbed anthill. Those in the agency who had tried to ignore Asia and whose reports will now
certainly return both to haunt them and ruin their careers, are drinking openly in their offices and yelling
like children caught in a burning barn. The President has just been informed and will be coming back.
Acheson is to blame for this by declaring in public a number of times that we were no longer
interested in that area! I warned Harry about this and I will have to see how much good my warning did.
The real question here is: Will China join in? Will Russia?
I think possibly on the former but negative on the latter. Stalin cannot afford a new war and that
devious old Turk will find a way to let the Chinese (whom he is not too fond of, take all the risks and all
the blame if they fail) pull his chestnuts out of the fire for him. Oh clever Josef! I can see his hand (at least
his good one) in all of this.
We have no troops there and MacArthur is very slow to react. He was even slower to react in
December of 1941 when he had eight hours advance notice of the Japanese attack on Pearl Harbor and sat
on his Imperial Ass and did nothing at all. His air force, which had long-range bombers and could have
done terrible damage to the Japanese fleet and transports, merely sat on the airfields on his specific orders
and did nothing at all although his own generals begged him to let the planes attack! And what happened?
His aircraft were destroyed on the ground and there was no counter attack. The Japanese were able to land
and crush him and wipe out his army.
This time, he’s done nothing either. There was a strange relationship between M. and Roosevelt
and we know the general loved money. He got a half a million dollars in cash about this time from the
Philippine government. No one knows why. And Roosevelt had M. evacuated from Manila and left
everyone else behind. We all know Roosevelt feared MacArthur and the general once said of Roosevelt
that he would never tell the truth if a lie would suffice.
So now we have a reprise of 1941.
I ask: If the CIA is so clever and has such a nice budget to cover their spies worldwide, how did
they, or MacArthur’s Tokyo intelligence group, manage to overlook large north Korean (and possibly
Chinese) troop movements? You cannot conduct such things in the dark, after all.
Everyone at the CIA is blaming everyone else. The few of us who foresaw the possibility of some
kind of Stalinist action are now feeling very superior to the others who studiously avoid us like a plague.
The President returns, very upset and nervous. Is there to be a major war over there or only a
limited aggression? In any case, Stalin has picked the wrong man to play games with. Now, he’s trying to
even the score with Truman over T’s victory with the Berlin airlift that cost Josef so much face in the eyes
of the world.
It won’t work this time either, Josef. Truman is terrible in his determination and anger and he will
fight a great deal faster than Josef will. Josef likes to bluff and Truman does not.
This might be the beginning of the end for the glorious Georgian murderer. We shall certainly see.
The U.S. stock market had a bowel movement on the 27th and four million shares were dumped. It was the worst drop since the beginning of the last war in 1939. It came back again the next day.
I have not yet decided whether or not I want to get into stocks and bonds. I know nothing about that field and wouldn’t think of it until I learned more. I did give an order to buy some stocks in what will be the war industry because this business looks as if it will go on for some time and now, rearmament is an absolute certainty!
War is certainly good for business, isn’t it?
In 1950, all Christie auctions were held in England but the firm had an office in New York that handled American consignments.
Wednesday, 12 July 1950
The (North, ed.) Koreans are pushing everything before them as they drive towards the south. It now looks as if the heavily outnumbered Americans will be shoved right off the Korean Peninsula. Things are not good but Truman will certainly strike back and I am certain American material strength will prevail in the end. The major question here, of course, is what will China do? If the U.S. is driven out of Korea, probably nothing. If the U.S. counterattacks, one does not know.
I have access to most of the very secret CIA position papers on this subject and have been looking over many of them. I am amazed to note that not a single position paper prepared by the CIA ever hinted at a North Korean attack! We are dealing with a gang of pseudo-intellectual morons! Not a single report! My God, and these imbeciles think they can run the foreign policy of this country. Now, they are rushing to find people who have not made such serious errors to come up with new reports that indicate China will attack us next! They hope by this to reestablish their credit here and get in on the rearmament frenzy.
Lunch at the club today with my good friend Senhor Carvalho from Lisbon.
A very frank, and to me at least, a very profitable meeting. The Bank is doing very, very well indeed!
As a Director, my assets in it are now upwards of fifty million dollars! The question now is one of finance vis a vis the war in Korea. We were joined by one of the few practical members of the CIA, Samuel Cummings. One of the few Englishmen I can tolerate, Cummings is deeply engaged in the weapons business and we discussed certain rearming problems for the now-fleeing South Korean constabulary.
Cummings has been scouting out sources of weapons in Europe and I was able to point out some caches in Poland for him. Now he is talking about whether or not the CIA ought to give weapons to Israel. Angleton, and others, are putting this forward here. The Czech Zionists in fresh power there have been sending all their weapons to the new state including German tanks and a lot of our weapons that they captured at the end of the war. How ironic that the Zionists now have a large supply of Third Reich guns which they use to slaughter Arabs!
After Cummings left, my fellow director and myself went to the library where we had a most pleasant discussion about the state of the Bank.
Indeed, when I was in Lisbon in October 1942, it was merely by chance that I encountered Carvalho at our Embassy. I struck up a conversation with him. He needed a small favor from us and since it cost me nothing, I gave it to him. And from there, grew the Bank!
A very private concern, very. Not even identified as a bank anywhere but in the vaults. For example, who knows what lies behind the steel door of 145 rue de Lafayette in Paris? What mysteries does it hide? And our little establishment is the same way, and in a literal sense, the same thing as the Lafayette address. All of it literally and symbolically underground. It was such a careful plan and it actually worked out.
All of the captured gold we could get was funneled into Portugal through Credit Suisse throughout the war. Much of the gold captured in Holland, Belgium, Denmark and France went to the Reichsbank but I saw to it that certain amounts were sidetracked to Switzerland and from there, shipped across occupied France, through Spain to Portugal. We had no trouble in France because we controlled it but we did have to make certain concessions to Franco, hence a branch of the Bank in Madrid. Nevertheless, it went off very well indeed.
In addition to various bank holdings in Europe, we also managed to lay our hands on all manner of Jewish deposits both via the French, American and British banks. American Express, the House of Morgan, Guarantee Trust, Chase, Barclay’s, the Westminister Bank and the Royal Bank of Canada all surrendered their assets belonging to Jewish sources to the French, and they in turn, kept some of it and we got the rest.
No one, of course, was going to stand in the way of the Gestapo and like Louis XIV, the Gestapo was myself. And we took no paper at all, only gold.
The one thing that bothers me, and the other Directors, is that we were unable to lay hands on Globocnik’s loot because most of that was in gold. Some of it was found at the end of the war but the rest of it is still down in Austria and it is galling that we can’t get at it. There also is the gold that went down on the HMS Edinburgh but that is so deep and the water so cold that getting it up would be impossible, at least at this time.
Now, we have our hands on a very large amount of very safe capital located in two very safe places. Portugal and Spain are as secure as you can get these days. Salazar shows no sign of weakening and Franco is very firmly in power in Spain.
Much of the money stolen by Roosevelt from the Jews in this country in 1941 was hidden in the Canadian bank, and this was later transferred to a bank in England and from there to Switzerland. It was quite easy to lay hands on most of this when it was in Bern and now our assets are in excess of $500 million and still growing! As one of the three directors with no stockholders and no government supervision...and most important, no books to be poked through by greedy investigators, I am gloriously rich and I and the others are at liberty to invest where and when we wish.
The talk about this subject today was concerned with the Korean business. If it stops very soon, there will be no reason to invest in American weaponry and allied products, but if it goes on for any length of time I am certain that Truman will make a serious issue out of it and there will be heavy military involvement. Given the sad state of American armaments, we could well invest in the right firms. With Cummings’ connections as well as my own, we can either buy up small but important firms outright or at the least, invest in them. It is a matter of timing, after all.
My guest will come to dinner tonight and Bunny and I will entertain him until he returns home next week. She is actually very competent in this field and I am now turning over in my mind where our relationship is headed. If it appears to be a solid, progressive one, I may well have to tell her certain background facts about myself before one of the wives tells her something to make her suspicious.
The fact that I have been sleeping with a number of the prettier ones is not to be told to Bunny directly but I will hint that I was entertaining myself before I met her, but now, Small lies but women thrive on them!
McCarthy spoke with me yesterday by phone at the office, which I do not like, and informed me that he suspects that the State Department vacuumed their files of any references to perversion and espionage in 1946! Seeing that the Roosevelt permissive days were gone they determined to protect as many of their black sheep as they could. The FBI was involved in this according to M., so I will talk to Hoover about this as soon as I can. I told M. not to call me directly again and will punish him if he does so.
I find it amusing to read ponderous books by sanctified academics discussing the real reasons behind the Second World War. Oh my yes, such gas is escaping. As we used to say, “Breathe deep children, there’s vitamins in the air” just after someone farted.
Of course they blame Hitler for everything and claim he was crazy. Roosevelt and Churchill are elevated to Olympus where they can piss on everyone below, and Stalin, once part of the Unholy Trinity, is now the Fallen Angel.
Robert told me an American joke once. “Those who can, do; those who can’t, teach.”
In Germany, a learned professor was an important and respected member of society, but in America the professors are neither learned nor respected. I talked to a prominent one at the club a few weeks ago; a highly respected historical writer who is as stupid as a he-goat and babbles on about his self- importance endlessly. This educated idiot is supposed to be an expert on Germany, especially the Germany of the Third Reich. The subject turned to the Gestapo and I asked him, with great glee, who was the head of this agency?
He looked at me with the glazed eye of a dead herring and said with great disdain, “Why Heinrich Himmler, of course! Didn’t you know that?” “Oh, I had heard it was someone named Muller.” “Nonsense, it was Himmler. I never heard of this Muller.” “Are you certain?” “My God, did you read my last book? Of course it was Himmler. Of course Heydrich helped him...”
And so on.
If he knew to whom he was talking, he would have shit in his pants, and in the old days I would have stuck him in the cells to instruct him in the realities of life. As it is, I will pull his leg in the future, or much worse, because he is planning to work for the CIA! Just the sort of sponge-head who would do so well there.
If anyone ever thought about it, they would realize that the war had its roots not in nationalism, anti-Semitism, fascism or whatever convenient shibboleth they lean on but in money! It’s always money, economics or what you will, that leads men to war. Clausewitz said that war was an extension of political endeavor but I think the financial aspect is far more important, though rarely mentioned by anyone.
France had huge investments in Imperial Russia, England was losing her world trade to Germany, America wanted to expand into European markets, Japan was taking control of Chinese markets, the Depression was creating serious social problems in America in addition to the devastating economic ones, the Allies took all of Germany’s gold reserves after the 1914 war, the Soviets refused to honor Czarist bonds, and so on and so on.
Ideologies do not make wars but money does. And that I well know from having been on the inside for years.
Hundreds of millions of U.S. dollars taken in by the SS with the faked British bank notes not only ruined the British economy (which was bankrupt already) but enriched our coffers to the point where I and a few others have now become very rich. And to think I once tried to shut down the Bernhard program because it promoted theft and corruption!
The entire planet is run entirely by theft and corruption, or the love of it!
Sunday, 16 July 1950
Reinforcements are going to Japan where they will be thrown into the battle against the communists in Korea.
Bunny’s cousin is a stockbroker and I spoke with him yesterday evening at dinner and the final outcome is that I am now going to invest in so-called defense industry stocks. The word from the White House is that we are in this battle to the bitter end and if the Chinese get into the war there (officially a “police action”) then we will be tied up in Asia for some time. They have little in the way of sophisticated military equipment but an enormous pool of manpower. A war there could go on for years. Remember what happened in China when Japan got into it? I don’t think the idiots here even remember that protracted morass. They are too busy trying to become important in areas they will never understand, than to read history that could benefit them.
I will start out with petroleum stocks, move into some of the weapons companies and also aircraft. I have a list here of potential military contractors which I obtained three days ago (these wars are certainly well-planned in advance. This list was drawn up two months before the communist attack! Obviously someone knew it was coming but certainly not the President or his closest aides) and I will use that as a menu.
Harry has gone through several bottles of my bourbon present and says each bottle gets better. I think it’s his imagination. He is certainly very upset about the war but also a very stubborn man. This is not a man to get angry, as I have noted.
A very long talk with Bunny last night about one thing and another, mostly my past and our present.... and future. I finally told her who I was, and amazingly, she did not care. There is a risk in saying too much to a woman but this one is quite different from the others. She has a very quick mind, knows where she is going and apparently has strong feelings for me.
We discussed the intelligence game for some time and she indicated to me that she would very much like to get involved in it. I do not like this but she is determined.
She certainly has enough social connections to get in and considering her intelligence, would probably be the Deputy Director in a year but women do not play an important role in Washington at this time.
We went over a number of matters concerning the CIA and I told her several times that they were a gang of elitist cutthroats with no social redemption. She laughed because she knows a number of them and has been around such assholes most of her life. Getting paid for it, she says, would be rewarding.
The next thing we discussed was the future for us.
She knows about Sophie and that while I am legally dead; I am still legally married to her and have a family. Bunny doesn’t care about that, said that if I am officially dead, I can remarry under my new personality. She also referred to us as latter day Mormons and we could practice polygamy!
The word marriage has not yet quite surfaced but it came very, very close and I assume I am expected to make the move. I will have to think about it, discuss this with a lawyer friend and then go from there. In a week, perhaps, or two. I told her I would make a decision on the future by then and she trusts me to keep my word. After all, we have been remarkably honest with each other.
And I did tell her about my little affairs with the CIA wives. I thought she might get angry but she only laughed. That sort of thing is the rule in Washington, not the exception and both of us are adults in the end.
She did mention to me that she wanted to talk to me about some property that was in her family down in Virginia. It belonged to an uncle who could not keep it up during the war (the servants all ran away and worked in defense plants) and then had a stroke and could not live there. It is a large Herrenhaus (manor, ed.) with hundreds of acres surrounding it. The uncle raised blooded horses. The place is going up for sale and she said that she would really like to keep it in the family, but her aunt liked Washington and her town house so that was not possible.
I am getting tired of this place because it is now too small for my collection, it is rented for me and my idiot colleagues from the CIA and the army come by and bother me. I told her we could drive down next weekend, look at the place and make a day of it. Of course Heini would have to drive and she has no problem with that.
The place is located at a town named Warrenton, about sixty miles southwest of Washington.
We shall see.
NEXT
Sunday, 23 July 1950.(113)
This might be the beginning of the end for the glorious Georgian murderer. We shall certainly see.
The U.S. stock market had a bowel movement on the 27th and four million shares were dumped. It was the worst drop since the beginning of the last war in 1939. It came back again the next day.
I have not yet decided whether or not I want to get into stocks and bonds. I know nothing about that field and wouldn’t think of it until I learned more. I did give an order to buy some stocks in what will be the war industry because this business looks as if it will go on for some time and now, rearmament is an absolute certainty!
War is certainly good for business, isn’t it?
In 1950, all Christie auctions were held in England but the firm had an office in New York that handled American consignments.
Wednesday, 12 July 1950
The (North, ed.) Koreans are pushing everything before them as they drive towards the south. It now looks as if the heavily outnumbered Americans will be shoved right off the Korean Peninsula. Things are not good but Truman will certainly strike back and I am certain American material strength will prevail in the end. The major question here, of course, is what will China do? If the U.S. is driven out of Korea, probably nothing. If the U.S. counterattacks, one does not know.
I have access to most of the very secret CIA position papers on this subject and have been looking over many of them. I am amazed to note that not a single position paper prepared by the CIA ever hinted at a North Korean attack! We are dealing with a gang of pseudo-intellectual morons! Not a single report! My God, and these imbeciles think they can run the foreign policy of this country. Now, they are rushing to find people who have not made such serious errors to come up with new reports that indicate China will attack us next! They hope by this to reestablish their credit here and get in on the rearmament frenzy.
Lunch at the club today with my good friend Senhor Carvalho from Lisbon.
A very frank, and to me at least, a very profitable meeting. The Bank is doing very, very well indeed!
As a Director, my assets in it are now upwards of fifty million dollars! The question now is one of finance vis a vis the war in Korea. We were joined by one of the few practical members of the CIA, Samuel Cummings. One of the few Englishmen I can tolerate, Cummings is deeply engaged in the weapons business and we discussed certain rearming problems for the now-fleeing South Korean constabulary.
Cummings has been scouting out sources of weapons in Europe and I was able to point out some caches in Poland for him. Now he is talking about whether or not the CIA ought to give weapons to Israel. Angleton, and others, are putting this forward here. The Czech Zionists in fresh power there have been sending all their weapons to the new state including German tanks and a lot of our weapons that they captured at the end of the war. How ironic that the Zionists now have a large supply of Third Reich guns which they use to slaughter Arabs!
After Cummings left, my fellow director and myself went to the library where we had a most pleasant discussion about the state of the Bank.
Indeed, when I was in Lisbon in October 1942, it was merely by chance that I encountered Carvalho at our Embassy. I struck up a conversation with him. He needed a small favor from us and since it cost me nothing, I gave it to him. And from there, grew the Bank!
A very private concern, very. Not even identified as a bank anywhere but in the vaults. For example, who knows what lies behind the steel door of 145 rue de Lafayette in Paris? What mysteries does it hide? And our little establishment is the same way, and in a literal sense, the same thing as the Lafayette address. All of it literally and symbolically underground. It was such a careful plan and it actually worked out.
All of the captured gold we could get was funneled into Portugal through Credit Suisse throughout the war. Much of the gold captured in Holland, Belgium, Denmark and France went to the Reichsbank but I saw to it that certain amounts were sidetracked to Switzerland and from there, shipped across occupied France, through Spain to Portugal. We had no trouble in France because we controlled it but we did have to make certain concessions to Franco, hence a branch of the Bank in Madrid. Nevertheless, it went off very well indeed.
In addition to various bank holdings in Europe, we also managed to lay our hands on all manner of Jewish deposits both via the French, American and British banks. American Express, the House of Morgan, Guarantee Trust, Chase, Barclay’s, the Westminister Bank and the Royal Bank of Canada all surrendered their assets belonging to Jewish sources to the French, and they in turn, kept some of it and we got the rest.
No one, of course, was going to stand in the way of the Gestapo and like Louis XIV, the Gestapo was myself. And we took no paper at all, only gold.
The one thing that bothers me, and the other Directors, is that we were unable to lay hands on Globocnik’s loot because most of that was in gold. Some of it was found at the end of the war but the rest of it is still down in Austria and it is galling that we can’t get at it. There also is the gold that went down on the HMS Edinburgh but that is so deep and the water so cold that getting it up would be impossible, at least at this time.
Now, we have our hands on a very large amount of very safe capital located in two very safe places. Portugal and Spain are as secure as you can get these days. Salazar shows no sign of weakening and Franco is very firmly in power in Spain.
Much of the money stolen by Roosevelt from the Jews in this country in 1941 was hidden in the Canadian bank, and this was later transferred to a bank in England and from there to Switzerland. It was quite easy to lay hands on most of this when it was in Bern and now our assets are in excess of $500 million and still growing! As one of the three directors with no stockholders and no government supervision...and most important, no books to be poked through by greedy investigators, I am gloriously rich and I and the others are at liberty to invest where and when we wish.
The talk about this subject today was concerned with the Korean business. If it stops very soon, there will be no reason to invest in American weaponry and allied products, but if it goes on for any length of time I am certain that Truman will make a serious issue out of it and there will be heavy military involvement. Given the sad state of American armaments, we could well invest in the right firms. With Cummings’ connections as well as my own, we can either buy up small but important firms outright or at the least, invest in them. It is a matter of timing, after all.
My guest will come to dinner tonight and Bunny and I will entertain him until he returns home next week. She is actually very competent in this field and I am now turning over in my mind where our relationship is headed. If it appears to be a solid, progressive one, I may well have to tell her certain background facts about myself before one of the wives tells her something to make her suspicious.
The fact that I have been sleeping with a number of the prettier ones is not to be told to Bunny directly but I will hint that I was entertaining myself before I met her, but now, Small lies but women thrive on them!
McCarthy spoke with me yesterday by phone at the office, which I do not like, and informed me that he suspects that the State Department vacuumed their files of any references to perversion and espionage in 1946! Seeing that the Roosevelt permissive days were gone they determined to protect as many of their black sheep as they could. The FBI was involved in this according to M., so I will talk to Hoover about this as soon as I can. I told M. not to call me directly again and will punish him if he does so.
I find it amusing to read ponderous books by sanctified academics discussing the real reasons behind the Second World War. Oh my yes, such gas is escaping. As we used to say, “Breathe deep children, there’s vitamins in the air” just after someone farted.
Of course they blame Hitler for everything and claim he was crazy. Roosevelt and Churchill are elevated to Olympus where they can piss on everyone below, and Stalin, once part of the Unholy Trinity, is now the Fallen Angel.
Robert told me an American joke once. “Those who can, do; those who can’t, teach.”
In Germany, a learned professor was an important and respected member of society, but in America the professors are neither learned nor respected. I talked to a prominent one at the club a few weeks ago; a highly respected historical writer who is as stupid as a he-goat and babbles on about his self- importance endlessly. This educated idiot is supposed to be an expert on Germany, especially the Germany of the Third Reich. The subject turned to the Gestapo and I asked him, with great glee, who was the head of this agency?
He looked at me with the glazed eye of a dead herring and said with great disdain, “Why Heinrich Himmler, of course! Didn’t you know that?” “Oh, I had heard it was someone named Muller.” “Nonsense, it was Himmler. I never heard of this Muller.” “Are you certain?” “My God, did you read my last book? Of course it was Himmler. Of course Heydrich helped him...”
And so on.
If he knew to whom he was talking, he would have shit in his pants, and in the old days I would have stuck him in the cells to instruct him in the realities of life. As it is, I will pull his leg in the future, or much worse, because he is planning to work for the CIA! Just the sort of sponge-head who would do so well there.
If anyone ever thought about it, they would realize that the war had its roots not in nationalism, anti-Semitism, fascism or whatever convenient shibboleth they lean on but in money! It’s always money, economics or what you will, that leads men to war. Clausewitz said that war was an extension of political endeavor but I think the financial aspect is far more important, though rarely mentioned by anyone.
France had huge investments in Imperial Russia, England was losing her world trade to Germany, America wanted to expand into European markets, Japan was taking control of Chinese markets, the Depression was creating serious social problems in America in addition to the devastating economic ones, the Allies took all of Germany’s gold reserves after the 1914 war, the Soviets refused to honor Czarist bonds, and so on and so on.
Ideologies do not make wars but money does. And that I well know from having been on the inside for years.
Hundreds of millions of U.S. dollars taken in by the SS with the faked British bank notes not only ruined the British economy (which was bankrupt already) but enriched our coffers to the point where I and a few others have now become very rich. And to think I once tried to shut down the Bernhard program because it promoted theft and corruption!
The entire planet is run entirely by theft and corruption, or the love of it!
Sunday, 16 July 1950
Reinforcements are going to Japan where they will be thrown into the battle against the communists in Korea.
Bunny’s cousin is a stockbroker and I spoke with him yesterday evening at dinner and the final outcome is that I am now going to invest in so-called defense industry stocks. The word from the White House is that we are in this battle to the bitter end and if the Chinese get into the war there (officially a “police action”) then we will be tied up in Asia for some time. They have little in the way of sophisticated military equipment but an enormous pool of manpower. A war there could go on for years. Remember what happened in China when Japan got into it? I don’t think the idiots here even remember that protracted morass. They are too busy trying to become important in areas they will never understand, than to read history that could benefit them.
I will start out with petroleum stocks, move into some of the weapons companies and also aircraft. I have a list here of potential military contractors which I obtained three days ago (these wars are certainly well-planned in advance. This list was drawn up two months before the communist attack! Obviously someone knew it was coming but certainly not the President or his closest aides) and I will use that as a menu.
Harry has gone through several bottles of my bourbon present and says each bottle gets better. I think it’s his imagination. He is certainly very upset about the war but also a very stubborn man. This is not a man to get angry, as I have noted.
A very long talk with Bunny last night about one thing and another, mostly my past and our present.... and future. I finally told her who I was, and amazingly, she did not care. There is a risk in saying too much to a woman but this one is quite different from the others. She has a very quick mind, knows where she is going and apparently has strong feelings for me.
We discussed the intelligence game for some time and she indicated to me that she would very much like to get involved in it. I do not like this but she is determined.
She certainly has enough social connections to get in and considering her intelligence, would probably be the Deputy Director in a year but women do not play an important role in Washington at this time.
We went over a number of matters concerning the CIA and I told her several times that they were a gang of elitist cutthroats with no social redemption. She laughed because she knows a number of them and has been around such assholes most of her life. Getting paid for it, she says, would be rewarding.
The next thing we discussed was the future for us.
She knows about Sophie and that while I am legally dead; I am still legally married to her and have a family. Bunny doesn’t care about that, said that if I am officially dead, I can remarry under my new personality. She also referred to us as latter day Mormons and we could practice polygamy!
The word marriage has not yet quite surfaced but it came very, very close and I assume I am expected to make the move. I will have to think about it, discuss this with a lawyer friend and then go from there. In a week, perhaps, or two. I told her I would make a decision on the future by then and she trusts me to keep my word. After all, we have been remarkably honest with each other.
And I did tell her about my little affairs with the CIA wives. I thought she might get angry but she only laughed. That sort of thing is the rule in Washington, not the exception and both of us are adults in the end.
She did mention to me that she wanted to talk to me about some property that was in her family down in Virginia. It belonged to an uncle who could not keep it up during the war (the servants all ran away and worked in defense plants) and then had a stroke and could not live there. It is a large Herrenhaus (manor, ed.) with hundreds of acres surrounding it. The uncle raised blooded horses. The place is going up for sale and she said that she would really like to keep it in the family, but her aunt liked Washington and her town house so that was not possible.
I am getting tired of this place because it is now too small for my collection, it is rented for me and my idiot colleagues from the CIA and the army come by and bother me. I told her we could drive down next weekend, look at the place and make a day of it. Of course Heini would have to drive and she has no problem with that.
The place is located at a town named Warrenton, about sixty miles southwest of Washington.
We shall see.
NEXT
Sunday, 23 July 1950.(113)
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