excerpted from the book
The Shadows of Power
The Council on Foreign Relations
and the American Decline
by James Perloff
Western Islands Publishers, 1988,
Felix Frankfurter, U.S. Supreme Court Justice
The real rulers in Washington are invisible,
and exercise power from behind the scenes.
John F. Hylan, Mayor of New York City, in a speech, March 26,
The real menace of our republic is the
invisible government which, like a giant octopus, sprawls its
slimy length over our city, state and nation. At the head is a
small group of banking houses generally referred to as "international
bankers." This little coterie of powerful international bankers
virtually run our government for their own selfish ends.
President Franklin D. Roosevelt, in a letter to an associate
dated November 21, 1933
The real truth of the matter is, as you
and I know, that a financial element in the large centers has
owned the government ever since the days of Andrew Jackson.
Senator William Jenner in a speech, February 23, 1954
Today the path to total dictatorship in
the United States can be laid by strictly legal means, unseen
and unheard by the Congress, the President, or the people ....
Outwardly we have a Constitutional government. We have operating
within our government and political system, another body representing
another form of government, a bureaucratic elite which believes
our Constitution is outmoded and is sure that it is the winning
side... All the strange developments in foreign policy agreements
may be traced to this group who are going to make us over to suit
their pleasure .... This political action group has its own local
political support organizations, its own pressure groups, its
own vested interests, its foothold within our government, and
its own propaganda apparatus.
American Heritage Dictionary
An exclusive group of powerful people
who rule a government or society by means of private agreements
Columnist Edith Kermit Roosevelt, granddaughter of President Theodore
Roosevelt, described the Establishment
The word "Establishment" is
a general term for the power elite in international finance, business,
the professions and government, largely from the northeast, who
wield most of the power regardless of who is in the White House.
Most people are unaware of the existence
of this "legitimate Mafia." Yet the power of the Establishment
makes itself felt from the professor who seeks a foundation grant,
to the candidate for a cabinet post or State Department job. It
affects the nation's policies in almost every area.
In the public mind, the American Establishment is probably most
associated with big business and with wealthy, old-line families.
The sons of these families have long followed a traditional career
path that begins with private schools, the most famous being Groton.
From these they have typically proceeded to Harvard, Yale, Princeton,
or Columbia, there entering exclusive fraternities, such as Yale's
secretive Skull and Bones. Some of the brightest have traveled
to Oxford for graduate work as Rhodes Scholars. From academia
they have customarily progressed to Wall Street, perhaps joining
an international investment bank, such as Chase Manhattan, or
a prominent law firm or brokerage house. Some of the politically
inclined have signed on with Establishment think tanks like the
Brookings Institution and the Rand Corporation. As they have matured,
a few have found themselves on the boards of the vast foundations
- Rockefeller, Ford, and Carnegie. And ultimately, some have advanced
into "public service" - high positions in the federal
For the latter, there has long been a
requisite: membership in a New York-based group called the Council
on Foreign Relations CFR for short. Since its founding in 1921,
the Council has been the Establishment's chief link to the U.S.
The Council [on Foreign Relations]. while remaining largely unknown
to the public, has exercised decisive impact on U.S. policy, especially
foreign policy, for several decades. It has achieved this primarily
in two ways. The first is by directly supplying personnel for
upper echelon government jobs.
Few Americans know how a President chooses
his administrators. The majority probably trust that, aside from
an occasional political payoff, the most qualified people are
sought and found. But the CFR's contribution cannot be overlooked.
Pulitzer Prize winner Theodore White said that the Councils "roster
of members has for a generation, under Republican and Democratic
administrations alike, been the chief recruiting ground for cabinet-level
officials in Washington." The Christian Science Monitor once
observed that "there is a constant flow of its members from
private life to public service. Almost half of the council's members
have been invited to assume official government positions or to
act as consultants at one time or another. "
Indeed, Joseph Kraft, writing in Harper's,
called the Council a "school for statesmen." David Halberstam
puts it more wryly: "They walk in one door as acquisitive
businessmen and come out the other door as statesmen-figures."
The historical record speaks even more
loudly than these quotes. Through early 1988, fourteen secretaries
of state, fourteen treasury secretaries, eleven defense secretaries,
and scores of other federal department heads have been CFR members.
Anthony Lukas, New York Times, 1971
Everyone knows how fraternity brothers
can help other brothers climb the ladder of life. If you want
to make foreign policy, there's no better fraternity to belong
to than the Council [on Foreign Relations].
Richard Barnet, a CFR member, wrote in 1972
Failure to be asked to be a member of
the Council [on Foreign Relations] has been regarded for a generation
as a presumption of unsuitability for high office in the national
The CFR [Council on Foreign Relations] advocates the creation
of a world 'government. The ultimate implication of this is that
all power would be centralized in a single global authority; national
identities and boundaries (including our own) would be eliminated.
Admiral Chester Ward, former Judge Advocate General of the U.S.
[The CFR has as a goal] submergence of
U.S. sovereignty and national independence into an all-powerful
one-world government... this lust to surrender the sovereignty
and independence of the United States is pervasive throughout
most of the membership... In the entire CFR lexicon, there is
no term of revulsion carrying a meaning so deep as 'America First.
Foreign Affairs, the journal of the CFR, December 1922
Obviously there is going to be no peace
or prosperity for mankind so long as it remains divided into fifty
or sixty independent states... Equally obviously there is going
to be no steady progress in civilization or self-government among
the more backward peoples until some kind of international system
is created which will put an end to the diplomatic struggles incident
to the attempt of every nation to make itself secure. The real
problem today is that of world government.
In 1959, the Council [CFR] issued a position paper entitled Study
No. 7, Basic Aims of U.S. Foreign Policy. This document proposed
that the U.S. seek to "build a new international order."
1. Search for an international order in
which the freedom of nations is recognized as interdependent and
in which many policies are jointly undertaken by free world states
with differing political, economic and social systems, and including
states labeling themselves as "socialist."
2. Safeguard U.S. security through preserving
a system of bilateral agreements and regional arrangements.
3. Maintain and gradually increase the
authority of the U.N.
4. Make more effective use of the International
Court of Justice, jurisdiction of which should be increased by
withdrawal of reservations by member nations on matters judged
to be domestic.
Foreign Affairs article, Fall 1984, by Kurt Waldheim, former
Secretary General of the UN, and former Nazi
As long as states insist that they are
the supreme arbiters of their destinies - that as sovereign entities
their decisions are subject to no higher authority - international
organizations will never be able to guarantee the maintenance
Naturally, everyone would like to see world harmony and peace.
But if the United States traded its sovereignty for membership
in a world government, what would become of our freedoms, as expressed
in the Bill of Rights? How would the rulers of this world government
be selected? And how could a single, central authority equitably
govern a planet that is so diversified?
Kermit Roosevelt, 1961
What is the Establishment's view-point?
Through the Roosevelt, Truman, Eisenhower and Kennedy administrations
its ideology is constant: That the best way to fight Communism
is by a One World Socialist state governed by "experts"
like themselves. The result has been policies which favor the
growth of the superstate, gradual surrender of United States sovereignty
to the United Nations and a steady retreat in the face of Communist
Senator Jesse Helms, before the Senate in December 1987, after
noting the Council on Foreign Relation's (CFR's) place within
The viewpoint of the Establishment today
is called globalism. Not so long ago, this viewpoint was called
the "one-world" view by its critics. The phrase is no
longer fashionable among sophisticates; yet, the phrase "one-world"
is still apt because nothing has changed in the minds and actions
of those promoting policies consistent with its fundamental tenets.
... In the globalist point of view, nation-states
and national boundaries do not count for anything. Political philosophies
and political principles seem to become simply relative. Indeed,
even constitutions are irrelevant to the exercise of power ...
In this point of view, the activities
of international financial and industrial forces should be oriented
to bringing this one-world design - with a convergence of the
Soviet and American systems as its centerpiece - into being.
An "international" banker is one who, among other things,
loans money to the governments of nations.
Essential to controlling a government is the establishment of
a central bank with a monopoly on the country's supply of money
Meyer Rothschild is said to have remarked
Let me issue and control a nation's money,
and I care not who writes its laws.
Carroll Quigley, Tragedy and Hope, 1966
The powers of financial capitalism had
[a] far-reaching aim, nothing less than to create a world system
of financial control in private hands able to dominate the political
system of each country and the economy of the world as a whole.
This system was to be controlled in a feudalist fashion by the
central banks of the world acting in concert, by secret agreements
arrived at in frequent private meetings and conferences.
The Federal Reserve became law in December 1913. Ostensibly, the
system was to act as guardian of reserves for banks; it was granted
control over interest rates and the size of the national money
supply. The public was induced to accept the Fed by claims that,
given these powers, it would stabilize the economy, preventing
further panics and bank runs. It did nothing of the kind. Not
only has our nation suffered through the Great Depression and
numerous recessions, but inflation and federal debt - negligible
problems before the Fed came into existence - have plagued America
Congressman Louis McFadden, who chaired the House Committee on
Banking and Currency from 1920 to 1931
When the Federal Reserve Act was passed,
the people of these United States did not perceive that a world
banking system was being set up here.
A super-state controlled by international
bankers and international industrialists acting together to enslave
the world for their own pleasure.
Every effort has been made by the Fed
to conceal its powers but the truth is - the Fed has usurped the
The average American probably does not know - or even think -
very much about our Federal Reserve System, but a few things should
be noted about it.
* Although it is called "Federal,"
it is privately owned.
* It has never received a meaningful audit
from an independent source.
* It makes its own policies and is not
subject to the President or the Congress. Private banks within
the system select two-thirds of the directors of the twelve Federal
Reserve banks; the Federal Reserve Board chooses the rest.
* As to the Federal Reserve Board itself,
its members are appointed by the President and approved by the
Senate, but, once in office, they serve fourteen-year terms. Fed
Chairmen have routinely come from the New York banking community,
on its recommendations, and the great majority have been members
of the CFR.
[By] staffing the Federal Reserve's management with themselves
or their associates, the international bankers gained effective
control over the nation's money supply and interest rates - and
thus over its economic life. Indeed, the Fed is authorized to
create money - and thus inflate - at will. According to the Constitution,
only Congress may issue money or regulate its value. The Federal
Reserve Act, however, placed these functions in the hands private
bankers - to their perpetual profit.
The Fed-was empowered to buy and sell government Securities, and
to loan to member banks so that they might themselves purchase
such securities, thus greatly multiplying the potential for government
indebtedness to the banking community.
However, if Washington was to incur debts,
it had to have some means of paying them off. The solution was
income tax. Prior to 1913, there was no income tax in America
(except during the War Between the States and early Reconstruction
period). The U.S. government survived on other revenue sources,
such as tariffs and excise taxes. As a result, it could neither
spend nor borrow heavily.
Because income tax had been declared unconstitutional
by the Supreme Court in 1895, it had to be instituted by constitutional
amendment. The man who brought forward the amendment in Congress
was the same senator who proposed the plan for the Federal Reserve
- Nelson Aldrich.
Why did the American people consent to
income tax? Initially, it was nominal: a mere one percent of income
under $20,000 - a figure few made in those days. Naturally, there
were assurances that it would never increase!
Another pitch used to sell the tax was
that, being graduated, it would "soak the rich." But
Senator Aldrich's backing of the amendment implied that "the
rich" desired it. America's billionaire elite, of course,
are notorious for sidestepping the IRS. The Pecora hearings of
1933, for example, revealed that J. P. Morgan had not paid any
income tax in 1931-32. When Nelson Rockefeller was being confirmed
as Vice President under Gerald Ford, the fact arose that he had
not paid any income tax in 1970.
One of the leading devices by which the
wealthy dodge taxes is the channeling of their fortunes into tax-free
foundations. The major foundations, though commonly regarded as
charitable institutions, often use their grant-making powers to
advance the interests of their founders. The Rockefeller Foundation,
for example, has poured millions into the Council on Foreign Relations,
which in turn serves as the Establishment's main bridge of influence
to the U.S. government. By the time the income tax became law
in 1913, the Rockefeller and Carnegie foundations were already
Income tax didn't soak the rich, it soaked
the middle class. Because it was a graduated tax, it tended to
prevent anyone from rising into affluence. Thus it acted to consolidate
the wealth of the entrenched interests, and protect them from
The year 1913 was an ominous one - there
now existed the means to loan the government colossal sums (the
Federal Reserve), and the means to exact repayment (income tax).
All that was needed now was a good reason for Washington to borrow.
In 1914, World War I erupted on the European
continent. America eventually participated, and as a result her
national debt soared from $1 billion to $25 billion.
A dominator common to many of the early CFR [Council on Foreign
Relations] members was support - material or moral - for the Bolsheviks
A revolution, like any other substantive
undertaking, cannot succeed without financing. The 1917 Russian
Revolution was no exception. It is now well known that the Germans
helped Lenin - who had been exiled by the Czar - into Russia in
a sealed train, carrying some $5 million in gold. The Germans,
of course, had an ulterior motive: Czarist Russia was fighting
them on the side of the Allies, and a successful revolution would
mean one less adversary for Germany to contend with.
Probably no name symbolizes capitalism more than Rockefeller.
Yet that family has for decades supplied trade and credit to Communist
nations. After the Bolsheviks took power, the Rockefellers' Standard
Oil of New Jersey bought up Russian oil fields, while Standard
Oil of New York built the Soviets a refinery and made an arrangement
to market their oil in Europe. During the 1920's the Rockefeller's
Chase Bank helped found the American-Russian Chamber of Commerce,
and was involved in financing Soviet raw material exports and
selling Soviet bonds in the U.S..
... while the J. P. Morgan interests dominated
the CFR in its early days, the center of influence gradually shifted
to the Rockefellers. Indeed, David Rockefeller was chairman of
the CFR from 1970 to 1985.
Communism, in practice, is a system where government has total
power - not only political power, but power over the economy,
education, communications, etc. Socialism is essentially a lesser
form - a little brother - of Communism: the government controls
the means of production and distribution, but is not as pervasive
in its authority.
The American free enterprise system, as
originally set up, was much the opposite of Communism. The Constitution
forced the government to remain "laissez faire"; it
could exert virtually no influence on business, education, religion,
and most other features of national life. These were left in the
private hands of the people.
It is natural enough to suppose that rich
capitalists, who made their fortunes through the free market,
would be proponents of that system. This, however, has not been
the case historically. Free enterprise means competition: it means,
in its purest form, that everyone has an equal opportunity to
make it in the marketplace. But John D. Rockefeller J. P. Morgan,
and other kingpins of the Money Trust were powerful monopolists.
A monopolist seeks to eliminate competition. In fact, Rockefeller
once said: "Competition is a sin." These men were not
free enterprise advocates.
Their coziness with Marxism ... becomes
more comprehensible when we realize that Communism and socialism
are themselves forms of monopoly. The only difference is that
in this case, the monopoly is operated by the government. But
hat if an international banker, through loans to the state, manipulation
of a central bank, campaign contributions, or bribes, is able
to achieve dominion over a government? In that case, he would
find socialism welcome, for it would serve him as an instrument
to control society.
Frederick C Howe, in his book Confessions of a Monopolist (1906)
... all monopoly is bottomed on legislation.
... These are the rules of big business.
They have superseded the teachings of our parents and are reducible
to a simple maxim: Get a monopoly; let society work for you; and
remember that the best of all business is politics, for a legislative
grant, franchise, subsidy or tax exemption is worth more than
a Kimberly or Comstock lode, since it does not require any labor,
either mental or physical, for its exploitation.
[The] Export-Import Bank ... was established to "promote
trade". Here is how it can work. An American manufacturer
wants to sell his products to, say, Poland - but the Poles have
no cash to put up. So the Export-Import Bank theoretically loans
Poland money to buy the goods. We say "theoretically"
because in practice this step is cut out as unnecessary - the
money goes straight to the manufacturer. The Poles then pay off
the Export-Import Bank in installments - but at a low rate subsidized
by American taxpayers. And what if the Poles default? We taxpayers
pick up the whole tab! The manufacturer makes the transaction
at no risk to himself, through the medium of a federal agency.
There is nothing on earth more powerful than government, a fact
long ago recognized by international bankers. Regulation, socialism,
and Communism are simply different gradations of monopoly. Who
cares if the government is running things, if you run the government
... In the final analysis, there is little
difference between the goals of Marxism and capitalist monopolism.
The Dawes Plan (1924) and the Young Plan (1930) were the international
measures adopted to solve Germany's payment troubles.
... the Dawes Plan called for massive
loans to Germany. Dr. Carroll Quigley said of the undertaking:
It is worthy of note that this system
was set up by the international bankers and that the subsequent
lending of other people's money to Germany was very profitable
to these bankers.
David Lloyd George, who had been British
Prime Minister from 1916 to 1922, stated:
The international bankers dictated the
Dawes reparation settlement... They swept statesmen, politicians
and journalists to one side and issued their orders with the imperiousness
of absolute monarchs who knew that there was no appeal from their
Profit and arrogance, however, were overshadowed
by a far more sinister aspect to the new reparations program.
Three German cartels in particular were beneficiaries of credit
under the Dawes Plan. This trio became the industrial backbone
of the Nazi war machine, and the financial backbone of Adolph
Hitler's rise to power in Germany.
Of the three cartels, the chemical enterprise
I. G. Farben stands out. The Farben company received significant
assistance under the Dawes Plan, including a flotation of $30
million from the Rockefellers' National City Bank. I. G. Farben
grew to be the largest chemical concern in the world.
After World War II, an investigation by
the U.S. War Department noted:
Without I. G. [Farben's] immense productive
facilities, its intense research, and vast international affiliations,
Germany's prosecution of the war would have been unthinkable and
This is entirely supported by statistics.
In 1943, for example, [I.G.] Farben produced one hundred percent
of Germany's synthetic rubber, one hundred percent of its lubricating
oil, and eighty-four percent of its explosives. It even manufactured
the deadly Zyklon B gas, used to exterminate human beings in Hitler's
I. G. Farben also supplied forty-five
percent of the election funds used to bring the Nazis to power
What is particularly odious is that certain
American companies did robust business with I. G. Farben ..
... The Rockefellers' Standard Oil of
New Jersey sold $20 million in aviation fuel to the firm. I. G.
Farben even had an American subsidiary called American I. G..
Among the directors of the latter were the ubiquitous Paul Warburg
(CFR founder), Herman A. Metz (CFR founder), and Charles E. Mitchell,
who joined the CFR in 1923 and was a director of both the New
York Federal Reserve Bank and National City Bank. There were also
several Germans on the board of American I. G.; after the war,
three of them were found guilty of war crimes at the Nuremburg
trials. But none of the Americans were ever prosecuted.
This story of American ties to German
fascism has been avoided like the plague by the major U.S. media.
[Franklin Delano] Roosevelt was himself a prototypic Wall Streeter.
His family had been involved in New York banking since the eighteenth
century. His uncle, Frederic Delano, was on the original Federal
Reserve Board. FDR had a customary Establishment education, attending
Groton and Harvard. During the 1920's he pursued a career on Wall
Street, working as a bond writer and corporate promoter, and organizing
speculation enterprises. He was on the board of directors eleven
FDR's bonds to the Council were affirmed by his son-in-law, Curtis
Dall. Dali, a regular visitor at the Roosevelt home, eventually
wrote a book entitled FDR: My Exploited Father-In-Law. He wrote
For a long time I felt that FDR had developed
many thoughts and ideas that were his own to benefit this country,
the U.S.A. But, he didn't. Most of his thoughts, his political
"ammunition," as it were, were carefully manufactured
for him in advance by the CFR-One World Money group. Brilliantly,
with great gusto, like a fine piece of artillery, he exploded
that prepared "ammunition" in the middle of an unsuspecting
target, the American people - and thus paid off and retained his
internationalist political support.
Establishment historians present the '29 stock market crash as
they do most events: an accident, evolved from erroneous policies,
k not from deliberate planning. We have all heard how foolish
speculation bid stock prices high, but that the bubble finally
burst, plunging brokers out of windows and America into the Depression.
That version is correct enough, but has
several missing parts. The free enterprise system has been the
traditional scapegoat for the Crash. In reality, however, the
Federal Reserve prompted the speculation by expanding the money
supply a whopping sixty-two percent between 1923 and 1929. When
the central bank became law in 1913, Congressman Charles Lindbergh
had warned: "From now on depressions will be scientifically
created. Like two con men working a mark, the Fed made credit
easy while Establishment newspapers hyped what riches could be
made in the stock market.
Louis McFadden, chairman of the House
Banking Committee, declared of the Depression: "It was not
accidental. It was carefully contrived occurrence .... The international
bankers sought to bring about a condition of despair here so that
they might emerge as rulers of us all.
Curtis Dall, himself a syndicate manager for Lehman Brothers,
was on the floor of the New York Stock Exchange on the day of
the Crash. He said of the calamity:
[The 1929 stock market crash] was the
calculated "shearing" of the public by the World-Money
powers triggered by the planned sudden shortage of call money
in the New York money market.
It must be understood that an expedient existed on the New York
exchange called a "24 hour broker call loan." In those
days, one could purchase stock on extensive credit. He could lay
down, say, $100, and borrow $900 from a bank through his broker,
to purchase $1000 in securities. If the stock increased just ten
percent in value, he could sell it, repay the loan, and walk away
with his original investment doubled.
The only problem was that such a loan
could be called at any time - and if it was, the investor had
to pay it off within twenty-four hours. For most, the only way
to do so was to sell the stock. One can imagine the impact on
the market if a great multitude of these loans were called simultaneously.
In The United States' Unresolved Monetary
and Political Problems, William Bryan explains what occurred during
the '29 Panic:
When everything was ready, the New York
financiers started calling 24 hour broker call loans. This meant
that the stock brokers and the customers had to dump their stock
on the market in order to pay the loans. This naturally collapsed
the stock market and brought a banking collapse all over the country
because the banks not owned by the oligarchy were heavily involved
in broker call claims at this time, and bank runs soon exhausted
their coin and currency and they had to close. The Federal Reserve
System would not come to their aid, although they were instructed
under the law to maintain an elastic currency.
Plummeting stock prices ruined small investors,
but not the top "insiders" on Wall Street. Paul Warburg
had issued a tip in March of 1929 that the Crash was coming. Before
it did, John D. Rockefeller, Bernard Baruch, Joseph P. Kennedy,
and other money barons got out of the market.\According to John
Kenneth Galbraith in The Great Crash, 1929, Winston Churchill
appeared in the visitors' gallery of the New York Stock Exchange
during the frenzy of the panic. It has been said that Bernard
Baruch brought him there, perhaps to show him the power of the
Early withdrawal from the market not only
preserved the fortunes of these men: it also enabled them to return
later and buy up whole companies for a song. Shares that once
sold for a dollar now cost a nickel. Joseph P. Kennedy's worth
reportedly grew from $4 million in 1929 to $100 million in 1935.
'Not everyone was selling apples j during the Depression!
FDR now rode an open highway to the Presidency,
fueled by such men as Bernard Baruch. The latter's assistant,
Hugh Johnson, said of the campaign: "Every time a crisis
came, B. M. [Baruch] either gave the necessary money, or went
out and got it." In the meantime, the Republicans were issued
a death sentence. Newspapers blamed President Herbert Hoover for
the Crash and Depression. The Federal Reserve, instead of moving
to stimulate growth and recovery, contracted the money supply
by more than one third between 1929 and 1933, thus sustaining
the Depression and giving no relief to the thousands of banks
dying from runs.
President Hoover had a plan to bail out
the banks, but he needed backing from the Democratic Congress.
After losing the 1932 election, the lame duck President appealed
to Roosevelt: Would he issue a statement encouraging Congressional
support, and thus help end the crisis? FDR gave no reply, later
claiming that he had written one, but that due to an oversight
it was not sent. The banks were allowed to go on collapsing right
until his inauguration, thus attaching maximum stigma to the Republican
Party. Ironically, when the new President announced emergency
banking measures, he used the very plan drawn up by Hoover's Treasury
The international bankers, having created the Depression, now
loaned America the cash to recover from it. Naturally, the interest
on these loans would be borne on the backs of taxpayers for years
Herbert Hoover in his memoirs
Among the early Roosevelt fascist measures
was the National Industry Recovery Act (NRA) ... The origins of
this scheme are worth repeating. These ideas were first suggested
by Gerard Swope... Following this, they were adopted by the United
States Chamber of Commerce. During the campaign of 1932, Henry
I. Harriman, president of that body, urged that I agree to support
these proposals, informing me that Mr. Roosevelt had agreed to
do so. I tried to show him that this stuff was pure fascism; that
it was merely a remaking of Mussolini's "corporate state"
and refused to agree to any of it. He informed me that in view
of my attitude, the business world would support Roosevelt with
money and influence. That for the most part, proved true.
Over the years, a number of books have documented that Franklin
D. Roosevelt had foreknowledge of the surprise attack on Pearl
Harbor. Of these, the most recent and authoritative is Infamy:
Pearl Harbor and Its Aftermath (1982) by Pulitzer-Prize winner
... American military intelligence had
cracked the radio code Tokyo used to communicate with its embassies.
As a result, Japanese diplomatic messages in 1941 were known to
Washington, often on a same-day basis. The decoded intercepts
revealed that spies in Hawaii were informing Tokyo of the precise
locations of the U.S. warships docked in Pearl Harbor; collectively,
the messages suggested an assault would come on or about December
7. These intercepts were routinely sent to the President and to
Army Chief of Staff General George Marshall. In addition, separate
warnings about the attack with varying specificity as to its time
- were transmitted to these two men by or through various officials,
including Joseph Grew, our ambassador to Japan; FBI Director J.
Edgar Hoover; Senator Guy Gillette, who was acting on a tip from
the Korean underground; Congressman Martin Dies; Brigadier General
Elliot Thorpe, the U.S. military observer in Java; Colonel F.
G. L. Weijerman, the Dutch military attaché in Washington;
and other sources. Captain Johan Ranneft, the Dutch naval attaché
in Washington, recorded that U.S. naval intelligence officers
told him on December 6 that Japanese carriers were only 400 miles
northwest of Honolulu .'
Despite all of this, no alert was passed
on to our commanders in Hawaii, Admiral Husband Kimmel and General
Walter C. Short. Kimmel's predecessor, Admiral Richardson, had
been removed by FDR after protesting the President's order to
base the Pacific Fleet in Pearl Harbor, where it was quite vulnerable
to attack. Roosevelt and Marshall stripped the island of most
of its air defenses shortly before the raid, and allotted it only
one third of the surveillance planes needed to reliably detect
approaching forces. Perhaps to preserve his station in history,
Marshall sent a warning to Hawaii that arrived a few hours after
the attack, which left over two thousand Americans dead, and eighteen
naval vessels sunk or heavily damaged.
FDR appointed a commission to investigate
what had happened. Heading it was Supreme Court justice Owen Roberts,
an internationalist friendly with Roosevelt. Two of the other
four members were in the CFR. The Roberts Commission absolved
Washington of blame, declaring that Pearl Harbor had been caught
off guard due to "dereliction of duty" by commanders
Kimmel and Short. The two officers long sought court-martials
so they might have a fair hearing. This was finally mandated by
Congress in 1944. At the court-martials, attorneys for the defendants
dug up some of Washington's secrets. The Roberts verdict was overturned:
Kimmel was exonerated; Short received a small reprimand; and the
onus of blame was fixed squarely on Washington. But the Roosevelt
administration suppressed these results, saying public revelation
would endanger national security in wartime. It then conducted
"new" inquiries in which several witnesses were persuaded
to change their testimony. Incriminating memoranda in the files
of the Navy and War departments were destroyed. The court-martial
findings were buried in a forty-volume government report on Pearl
Harbor, and few Americans ever learned the truth.
Most Americans believe the UN was formed after World War as a
result of international revulsion at the horrors of the war. Actually,
it originated in CFR intellects, and the term "United Nations"
was in use as early as 1942.
In January 1943, Secretary of State Cordell
Hull formed a steering committee composed of himself, Leo Pasvolsky,
Isaiah Bowman, Sumner Welles, Norman Davis, and Myron Taylor.
All of these men - with the exception of Hull - were in the CFR.
Later known as the Informal Agenda Group, they drafted the original
proposal for the United Nations. It was Bowman - a founder of
the CFR and member of Colonel House's old "Inquiry"
- who first put forward the concept. They called in three attorneys,
all CFR men, who ruled that it was constitutional. They then discussed
it with FDR on June 15, 1944. The President approved the plan,
and announced it to the public that same day.
If the key to controlling a nation is to run its central bank,
one can imagine the potential of a global central bank, able to
dictate the world's credit and money supply. The roots for such
a system were planted when the International Monetary Fund (IMF)
and World Bank were formed at the Bretton Woods Conference of
1944. These UN agencies were both CFR creations. The idea for
them hatched with the Economic and Finance Group, one of the units
of the Council's War and Peace Studies Project. This group proposed
the IMF and World Bank in a series of increasingly sophisticated
memos to the President and State Department during 1941-42. After
Bretton Woods, the two institutions were touted in Foreign Affairs.
A. K Chesterton, the distinguished British
author, declared: "The final act of Bretton Woods, which
gave birth to the World Bank and International Monetary Fund..,
and many similar assemblies of hand-picked functionaries were
not incubated by hard-pressed Governments engaged in waging war,
but by a Supra-national Money Power which could afford to look
ahead to the shaping of a post-war world that would serve its
Aid to the poor countries [from the World Bank] usually ends up
as seed money or loans to the wealthy industrialists from the
developed countries to further their overseas operations in competition
with the people whose country they claim to represent .
There's a saying that the [World] Bank
takes tax money from poor people in rich nations to give to rich
people in poor nations."
John Kenneth Galbraith
Those of us who had worked for the Kennedy
election were tolerated in the government... but foreign policy
was still with the Council on Foreign Relations people.
Shadows of Power