Editing Red House Report (EW-Pa 128)

According to Adam Lebor, "the US Military Intelligence report EW-Pa 128 is as chilling now as the day it was written in November 1944. The document, also known as the Red House Report, is a detailed account of a secret meeting at the Maison Rouge Hotel in Strasbourg on August 10, 1944. There, Nazi officials ordered an elite group of German industrialists to plan for Germany's post-war recovery, prepare for the Nazis' return to power and work for a 'strong German empire'. In other words: the Fourth Reich."

The Red House Report acknowledged SS Chief Heinrich Himmler and Max Faust, an engineer with IG Farben were collaborators. The report was classified as SECRET and a courtesy copy was sent to British officials; it was addressed to Cordell Hull, Secretary of State. The report detailed how the industrialists were planning to work with the Nazi Party to rebuild Germany's economy, post WW2, using the banking system set up in Switzerland.

Their plan was to set up a network of secret front companies around the world and use them for their covert activities, much like the CIA and other intelligence agencies have, in fact, done. The industrialists included representatives of Volkswagen, Krupp and Messerschmitt among others. Officials from the Navy and Ministry of Armaments were also at the meeting as well. The plan was basically to create the Fourth German Reich using economical controls (covert) or warfare instead of military actions (overt).

This would be accomplished using newly created economical/banking structures like the International Monetary Fund (IMF) and the World Bank (WB) along with the World Trade Organization (WTO). Germany, the state, was defeated in WW2, the Nazi Party and fascism in general was not. It lived on in the bankers, scientists, industrialists that were not held accountable in the aftermath of WW2 and went on to set up NATO, Operation Gladio, Operation Condor along with many other efforts to bring international fascism into each country using a Strategy of Tension. 

They have set up the European economic union and interfered in any election that challenged their anointed  cast of characters using their post WW2 intelligence agencies as control agents. The Red House Report was written by a French agent of Deuxieme Bureau, who was at the meeting in Strasbourg in 1944 and it has basically come to pass. It is very similar to the Madrid Circular written in 1950 which foretells basically the same ideas being used to continue to spread fascism internationally.

The industrialists gathered at the Maison Rouge Hotel waited expectantly as SS Obergruppenfuhrer (meaning paramilitary leader rank in Nazi Germany) Dr Scheid began the meeting. He served as Director of the Heche (Hermandorff & Schonburg) Company. Dr. Kasper of Krupp, Dr. Tolle of Rochling, Dr. Sinderen of Messerschmitt, Drs Kopp, Vier and Beerwanger of Rheinmetall, Captain Haberkorn and Dr. Ruhe of Bussing, Drs Ellenmayer and Kardos of Volkswagen, Engineers Drose, Yanchew, and Koppshem (of various factories), Captain Dornbuach in charge of of the Industrial Inspection Section at Posen, Dr. Meyer an offcial of the German Naval Ministry in Paris, and Dr. Strossner of the Ministry of Armament, Paris. 

Dr. Scheid began by stating that "all industrial material in France was to be evacuated to Germany immediately. The battle of France was lost for Germany and now the defense of the Siegried Line was the main problem. From now on also German industry must realize that the war cannot be won and that it must take steps in preparation for a post-war commercial campaign. Each industrialist must make contacts and alliances with foreign firms, but this must be done individually and without attracting any suspicion."

He continued "Moreover, the ground would have to be laid on the financial level for borrowing considerable sums from foreign countries after the war. As examples of the kind of penetration which had been most useful in the past, Dr. Scheid cited the fact that patents for stainless steel belonged to the Chemical Foundation, Inc., New York, and the Krupp company of Germany jointly and that the U.S. Steel Corporation, Carnegie Illinois, American Steel and Wire, and national Tube, etc. were thereby under an obligation to work with the Krupp concern. He also cited the Zeiss Company, the Leisa Company and the Hamburg-American Line as firms which had been especially effective in protecting German interests abroad and gave their New York addresses to the industrialists at this meeting." These arrangements were set up prior to WW2 by US law firms such as Sullivan & Cromwell and it would be there two top lawyers overseeing these actions post WW2 from the vantage point of the US Secretary of State (John Foster Dulles) and the CIA (Allen Dulles).

Following this meeting, a smaller one was held presided over by Dr. Bosse of the German Armaments Ministry and attended only by representatives of Hecho, Krupp and Rochling. At this second meeting it was stated that the Nazi Party had informed the industrialists that the war was practically lost but that it would continue until a guarantee of the unity of Germany could be obtained. German industrialists must, it was said, through their exports increase the strength of Germany. They must also prepare themselves to finance the Nazi Party which would be forced to go underground as Maquis (in Gebirgaverteidigungastellengehen, which functions similar to stay behind units). 

The report coninued...From now on the government would allocate large sums to industrialists so that each could establish a secure post-war foundation in foreign countries. Existing financial reserves in foreign countries must be placed at the disposal of the Party so that a strong German Empire can be created after the defeat. It is also immediately required that the large factories in Germany create small technical offices or research bureaus which would be absolutely independent and have no known connection with the factory. These bureaus will receive plans and drawings of new weapons as well as documents which they need to continue their research and which must not be allowed to fall into the hands of the enemy. 

The offices were to be established in large cities where they can be most successfully be hidden as well as in little villages near sources of hydro-electric power where they can pretend to be studying the development of water resources. The existence of these is to be known only by very few people in each industry and by chiefs of the Nazi Party. Each office will have a liaison agent with the Party. As soon as the Party becomes strong enough to re-establish its control over Germany the industrialists will be paid for their effort and cooperation by concessions and orders.

These meetings seem to indicate that the prohibition against the export of capital which was rigorously enforced until now has been completely withdrawn and replaced by a new Nazi policy whereby industrialists with government assistance will export as much of their capital as possible. Previously exports of capital by German industrialists to neutral countries had to be accomplished rather surreptitiously and by means of special influence. Now the Nazi party stands behind the industrialists and urges them to save themselves by getting funds outside Germany and at the same time to advance the party's plans for its post-war operation. This freedom given to the industrialists further cements their relations with the Party by giving them a measure of protection.

The German industrialists are not only buying agricultural property in Germany but are placing their funds abroad, particularly in neutral countries. Two main banks through which this export of capital operates are the Basler Handelsbank and the Schweizerische Kreditanstalt of Zurich. Also there are a number of agencies in Switzerland which for a 5 percent commission is charged to buy property in Switzerland, using a Swiss cloak.

After the defeat of Germany the Nazi Party recognizes that certain of its best known leaders will be condemned as war criminals. However, in cooperation with the industrialists it is arranging to place its less conspicuous but most important members in positions with various German factories as technical experts or members of its research and designing offices.

Swiss banks, in particular the Swiss National Bank, accepted gold looted from the treasuries of Nazi-occupied countries. They accepted assets and property titles taken from Jewish businessmen in Germany and occupied countries, and supplied the foreign currency that the Nazis needed to buy vital war materials. In addition, the revelation that the Nazis placed certain important members in positions to appear not to be connected to the Nazi hierarchy is significant because that is the exact excuse used by US intelligence agencies to justify immigrating certain Germans to the US as well as not prosecuting them at Nuremberg. Interesting to note that Allen Dulles worked with these companies prior to WW2, set up their US affiliates and coincidentally is assigned to the Switzerland OSS office during the timeframe that these arrangements and meeting took place. In addition, he would work with SS Nazi General Reinhard Gehlen to set up the CIA of West Germany: BND.

The Red House Report's author notes: 'Previously, exports of capital by German industrialists to neutral countries had to be accomplished rather surreptitiously and by means of special influence.'Now the Nazi Party stands behind the industrialists and urges them to save themselves by getting funds outside Germany and at the same time advance the party's plans for its post-war operations.'

The order to export foreign capital was technically illegal in Nazi Germany, but by the summer of 1944 the law did not matter. More than two months after D-Day, the Nazis were being squeezed by the Allies from the west and the Soviets from the east. The Nazi leadership was nervous, fractious and quarrelling. During the war years the SS, like their Japanese counterparts had stolen billions of dollars worth of property, currency and gold. The Red House meeting could not have occurred without intelligence agents on both sides knowing about it. It was well known that any discussion of post-war planning was banned by the Nazi government. It was extremely dangerous to do that in public. But the SS was thinking in the long-term. If you are trying to establish a workable coalition after the war, the only safe place to do it is under the auspices of the apparatus of terror.' This terror campaign would be the beginnings of Operation Gladio. 

SS leaders like Otto Ohlendorf was thinking ahead. As commander of Einsatzgruppe D, which operated on the Eastern Front between 1941 and 1942, Ohlendorf was responsible for the murder of 90,000 men, women and children. A highly educated, intelligent lawyer and economist, Ohlendorf showed great concern for the psychological welfare of his extermination squad's gunmen: he ordered that several of them should fire simultaneously at their victims, so as to avoid any feelings of personal responsibility.

By the winter of 1943 he was transferred to the Ministry of Economics. Ohlendorf s ostensible job was focusing on export trade, but his real priority was preserving the SS's massive pan-European economic empire after Germany's defeat. Ohlendorf, who was later hanged at Nuremberg, took particular interest in the work of a German economist called Ludwig Erhard. Erhard had written a lengthy manuscript on the transition to a post-war economy after Germany's defeat. This was dangerous, especially as his name had been mentioned in connection with resistance groups.

But Ohlendorf, who was also chief of the SD, the Nazi domestic security service, protected Erhard as he agreed with his views on stabilizing the post-war German economy. Ohlendorf himself was protected by Heinrich Himmler, the chief of the SS. Ohlendorf and Erhard feared a bout of hyper-inflation, such as the one that had destroyed the German economy in the Twenties. Such a catastrophe would render the SS's economic empire almost worthless.

The two men agreed that the post-war priority was rapid monetary stabilization through a stable currency unit, but they realized this would have to be enforced by a friendly occupying power, as no post-war German state would have enough legitimacy to introduce a currency that would have any value. That unit would become the Deutschmark, which was introduced in 1948. It was an astonishing success and it kick-started the German economy. With a stable currency, Germany was once again an attractive trading partner.

The German industrial conglomerates could rapidly rebuild their economic empires across Europe. War had been extraordinarily profitable for the German economy. By 1948 - despite six years of conflict, Allied bombing and post-war reparations payments - the capital stock of assets such as equipment and buildings was larger than in 1936, thanks mainly to the armaments boom.

Erhard pondered how German industry could expand its reach across the shattered European continent. The answer was through supra-nationalism which was seen as the voluntary surrender of national sovereignty to an international body. Germany and France were the drivers behind the European Coal and Steel Community (ECSC), the precursor to the European Union. The ECSC was the first supra-national organization, established in April 1951 by six European states. It created a common market for coal and steel which it regulated. This set a vital precedent for the steady erosion of national sovereignty, a process that continues today.

But before the common market could be set up, the Nazi industrialists had to be pardoned, and Nazi bankers and officials reintegrated. In 1957, John J. McCloy, the American High Commissioner for Germany, issued an amnesty for industrialists convicted of war crimes. The two most powerful Nazi industrialists, Alfried Krupp of Krupp Industries and Friedrich Flick, whose Flick Group eventually owned a 40 per cent stake in DaimlerBenz, were released from prison after serving barely three years.

Krupp and Flick had been central figures in the Nazi economy. Their companies used slave laborers and worked them to death. The Krupp company soon became one of Europe's leading industrial combines. The Flick Group also quickly built up a new pan-European business empire. Friedrich Flick remained unrepentant about his wartime record and refused to pay a single Deutschmark in compensation until his death in July 1972 at the age of 90, when he left a fortune of more than $lbillion, the equivalent of £400million at the time.

'For many leading industrial figures close to the Nazi regime, Europe became a cover for pursuing German national interests after the defeat of Hitler,' says historian Dr Michael Pinto-Duschinsky, an adviser to Jewish former slave laborers. 'The continuity of the economy of Germany and the economies of post-war Europe is striking. Some of the leading figures in the Nazi economy became leading builders of the European Union.'

Numerous household names had exploited slave and forced laborers including BMW, Siemens and Volkswagen, which produced munitions and the VI rocket. Slave labour was an integral part of the Nazi war machine. Many concentration camps were attached to dedicated factories where company officials worked hand-in-hand with the SS officers overseeing the camps.

Like Krupp and Flick, Hermann Abs, post-war Germany's most powerful banker, had prospered in the Third Reich. An elegant diplomat, Abs joined the board of Deutsche Bank, Germany's biggest bank, in 1937. As the Nazi empire expanded, Deutsche Bank enthusiastically Aryanized' Austrian and Czechoslovak banks that were owned by Jewish families. By 1942, Abs held 40 directorships, a quarter of which were in countries occupied by the Nazis. Many of these Aryanized companies used slave labour and by 1943 Deutsche Bank's wealth had quadrupled.

Abs also sat on the supervisory board of I.G Farben, as Deutsche Bank's representative. I.G. Farben was one of Nazi Germany's most powerful companies, formed out of a union of BASF, Bayer, Hoechst and subsidiaries in the Twenties. It was so deeply entwined with the SS and the Nazis that it ran its own slave labour camp at Auschwitz, known as Auschwitz III, where tens of thousands of Jewish and other prisoners died producing artificial rubber.

When they could work no longer the Nazis would moved them to Birkenau. There they were gassed using Zyklon B, the patent for which was owned by I.G. Farben. During the war the company had financed Ludwig Erhard's research. After the war, 24 I.G. Farben executives were indicted for war crimes over Auschwitz III - but only twelve of the 24 were found guilty and sentenced to prison terms ranging from one-and-a-half to eight years. I.G. Farben got away with murder.

Abs was one of the most important figures in Germany's post-war reconstruction. It was largely thanks to him that, just as the Red House Report exhorted, a 'strong German empire' was indeed rebuilt, one which formed the basis of today's European Union. Abs was put in charge of allocating Marshall Aid - reconstruction funds - to German industry. By 1948 he was effectively managing Germany's economic recovery. The Marshall Fund was also used to fund Operation Gladio throughout Europe.

Abs was also a member of the European League for Economic Co-operation, an elite intellectual pressure group set up in 1946. The league was dedicated to the establishment of a common market, the precursor of the European Union. Its members included industrialists and financiers and it developed policies that are strikingly familiar today - on monetary integration and common transport, energy and welfare systems. Which is exactly what the Red House Report collaborators predicted would happen. 

When Konrad Adenauer, the first Chancellor of West Germany, took power in 1949, Abs was his most important financial adviser. Behind the scenes Abs was working hard for Deutsche Bank to be allowed to reconstitute itself after decentralization. In 1957 he succeeded and he returned to his former employer. That same year the six members of the ECSC signed the Treaty of Rome, which set up the European Economic Community. The treaty further liberalized trade and established increasingly powerful supra-national institutions including the European Parliament and European Commission.

Like Abs, Ludwig Erhard flourished in post-war Germany. Adenauer made Erhard Germany's first post-war economics minister. In 1963 Erhard succeeded Adenauer as Chancellor for three years. But the German economic miracle, so vital to the idea of a new Europe, was built on mass murder. The number of slave laborers who were worked to death by German companies in the Nazi era was 2,700,000.

Some sporadic compensation payments were made but German industry agreed a conclusive, global settlement only in 2000, with a £3billion compensation fund. There was no admission of legal liability and the individual compensation was paltry. 

Joseph Goebbels, Hitler's propaganda chief, once said: In 50 years' time nobody will think of nation states.' Fascism International meets One World Government.