Nazi Gold

by Bower, Tom

  “On what Swiss.” FO 371/45814 September 26, 1945.

  “They’re perfectly correct.” FO 371/45813 September 13, 1945.

  113“This will go.” FO 371/45814 September 26, 1945.

  “It’s no different.” RG 59 1945–9 Swiss Aide-Mémoire, April 1946 Box 4206; RG 59 1945–9 Box 3527 740.00112 EW/9–1445.

  “heavy moral burden.” FO 192/198 “Swiss trade policy during the war, Zurich 1946.”

  The promised census. RG 56 U.S. Treasury Mann to White October 10, 1945.

  Compounding the insult. RG 56 U.S. Treasury, re: Swiss banks and Safehaven, Mann memorandum March 5, 1947.

  “Switzerland’s policy is.” RG 56 U.S. Treasury Mann to White October 10, 1945.

  114“guilty of dilatoriness.” RG 59 1945 Box 4194 October 4, 1945.

  “Swiss violations of.” RG 84 1942–9 Box 4194 November 28, 1945.

  “little value in.” RG 59 1945–9 FW 800.515/8–145 October 5, 1945.

  115The “relaxation on.” RG 56 U.S. Treasury Mann to White October 13, 1945.

  “an old friend.” FO 371/49710 October 18, 1945.

  116Weber approved financial. E 2800 (-) 1967/61 Bd 88 (Société de Banque Suisse).

  “to fulfill its.” E 7160 (A) i 1968/54 Bd 28 (Korrespondenz AK) November 19, 1947.

  117Summoning journalists, he. RG 131, Dept of Justice, Records of the Office of Alien Property; Foreign Funds Control, General Correspondence 1942–60 Box 446; New York Herald Tribune, October 29, 1945.

  “America’s terrorizing the neutrals.” FO 371/45814 October 1945.

  117Only the property. FO 371/46767 October 20, 1945.

  Overnight, dozens of. FO 1031/10 January 25, 1946; Eisenhower agreed to postpone widespread publication of the decree by one month to allow the British to champion Rubin’s approach. FO 371/45813 October 12, 1945.

  “the world safe.” RG 56 U.S. Treasury, re Swiss banks and Safehaven, Mann to White August 2, 1945.

  118Among the victims. U.S. Treasury re Swiss banks and Safehaven December 12, 1945.

  Listed for seizure. AJDC, letter October 27, 1947.

  119Insensitively, all individual. E 7160 (A) i 1968/54 Bd 95 (49, 11. Verordnung zum dt. Reichsbürgergesetz) August 3, 1945.

  120“It’s immoral,” he. T 236/1478 October 12, 1945.

  “It was never.” TB/Rubin.

  Surely that fact. E 7160 (A) i 1968/54 Bd 95 (49, 11. Verordnung zum dt. Reichsbürgergesetz) July 6, 1945.

  121The pro-Nazi lobby. E 7160 (A) 1 1968/54 Berichtüber die Tätigkeit der Abteilung, 1946/47.

  Championing that discrimination. E 2001 (E) 1968/79 Bd 2.

  122“That prevents any.” Ibid.

  123“should adopt a.” E 7160 (A) i 1968/54 Bd 95 (49, 11. Verordnung zum dt. Reichsbürgergesetz) September 29 and October 12, 1945.

  124“Never rely on.” E 7160 (A) i 1968/54 Bd 95 (49, 11. Verordnung zum dt. Reichsbürgergesetz) November 25, 1945.

  Jews and Nazis. E 9500.193, 1969/150 Bd 2 December 17, 1945.

  CHAPTER 8: THE PAWNS

  125“We’re doing our.” TB/Abramovitz.

  126To that money. T 236/1478 December 24, 1945; T 236/1479 April 20 and 22, 1947.

  There were, Waley. T 236/1478 November 5, 1945.

  “obviously attach considerable.” T 236/1478 November 8, 1945.

  126Still unaware that. T 236/1478 December 28, 1945.

  127“over £2 billion. T 236/1478 September 20, 1945.

  “I feel little.” FO 371/45814 November 3, 1945.

  “It corresponds,” Playfair. T 236/1478 November 10, 1945.

  128Weizmann’s “monstrous suggestions.” T 236/1478 November 8, 1945.

  New submissions to. T 236/1478 September 25, 1945.

  “has no logical.” T 236/1478 November 5, 1945.

  Jack Coulson argued. T 236/1478 November 27, 1945.

  Troutbeck’s replies to. T 236/1478 November 7, 1945.

  Nothing was publicly. RG 59 State Department Paris Conf.

  Final Report Box 2 p. 67.

  Accordingly, a request. T 236/1478 October 30, 1945.

  129“It would be.” T 236/1478 November 29, 1945.

  “funds deposited … by.” T 236/1478 December 7, 1945.

  Faced with isolation. T 236/1478 December 6, 1945.

  130“blackmail from the.” T 236/1478 December 13, 1945.

  raised “concern” about. FO 371/60479 February 16, 1946.

  Vieli spoke eloquently. RG 56 U.S. Treasury, Swiss banks and Safehaven. Ostrow letter to White February 1, 1946. Lunch was held on January 23, 1946.

  Gerald Selous, the. FO 192/198 February 12, 1946.

  131For example, Bernard. E 2800 (-) 1967/61 Bd 88 (Banques Suisse) July 15, 1947.

  The exemptions from. AJDC memorandum March 18, 1946.

  CHAPTER 9: WASHINGTON SHOWDOWN

  133“Should resist the Allies.” E 2001 (E) 1968/79 Bd 2 (DIV).

  Stucki’s instructions, formulated. Admitted to British by Victor Umbricht, First Secretary in Swiss legation in 1951 FO 837/1304 September 5, 1951.

  “We are not.” FO 192/198 April 18, 1946.

  “no legal basis.” Castlemur, Schweizerisch-Alliierte Finanzbeziehungen, p. 41

  133especially since the. Ibid., p. 43.

  For that purpose. FO 192/198 April 18, 1946.

  But that would. Castlemur, Schweizerisch-Alliierte Finanzbeziehungen, p. 41.

  “The bankers don’t.” E 2001 (E) 1968/79 Bd 2 (DIV).

  134But in the hours. Ibid.

  “If you can.” E 7160 (A) 1 1968/54 November 12, 1946.

  Having brilliantly resisted. FO 371 60479 February 16, 1946.

  135“strongly pro-American and.” RG 59 1945–9 Box 4206.

  “harbored sympathies for.” RG 260 OMGUS Property Control Box 653.

  “It is our.” RG 59, 800.515, 4200; Castlemur, Schweizerisch-Alliierte Finanzbeziehungen, p. 27.

  The only constraints. TB/Rubin.

  136Swiss solidarity with. Droit International Public, pillages allemands, Côte Y–10–1, vol. 48, p. 2.

  “and give him.” RG 59 800.515.4199; Castlemur, Schweizerisch-Alliierte Finanzbeziehungen, p. 29.

  McCombe’s only interest. RG 260 OMGUS Property Control Box 653 Rubin to Randolph March 8, 1946.

  137“shield the aggressor.” RG 260 OMGUS Property Control, Memorandum A, March 19, 1946, Washington Accord negotiations.

  “We propose,” said. RG 59 1945–9 Box 4206.

  “admiration and gratitude.” RG 260 OMGUS Property Control, Memorandum B, March 21, 1946, Washington Accord negotiations.

  “greatly impressed with.” New York Times, March 22, 1946, p. 10.

  138Switzerland’s “enormous losses.” FO 371/60479 April 5, 1946; RG 59 1945–9 Box 4206 March 26, 1946.

  “Switzerland’s claims are.” E 7160 (A) 1 1968/54 Bericht über die Tätigkeit der Abteilung, 1946/47.

  “I do not.” FO 371/60479 March 29, 1946.

  139Dunkel had, however. FO 837/1173 September 10, 1948.

  139The British estimate. FO 371/60479 February 1946, of which $32 million was identified as Belgian.

  while the American. RG 59 1945–9 Box 4206 German Gold Movements February 5, 1946. American estimate included $18.5 million assigned to Sweden and $32.5 million to Romania.

  On the most. Senator D’Amato in 1996 suggested that up to $398 million was looted.

  140The 3,859 ingots. FO 837/1159 February 13, 1947.

  By contrast, the. FO 371/45749 December 13, 1945.

  First, all the. State Department Memorandum June 12, 1946.

  Second, the Reichsbank’s. FO 837/1159 January 25, 1947.

  Third, the French. FO 192/200 Pt 3 December 10, 1946.

  Angered by that. FO 371/45749 December 4, 1945.

  “a great mistake.” FO 371 45749 December 15, 1945; U.S. State Department 20.12.45 B1.

  141Alfred Hirs knew. Castlemur, Schweizerisch-Alliierte Finanzbeziehungen, p. 40.

  “We
agree that.” FO 371 60479 February 1946.

  “Those statistics are.” RG 59 1945–9 Box 4206 Gold Memorandum April 17, 1946.

  142“stolen” Belgium’s gold. Rélations Bilatérales Suisse/France, Côte EU 29–8–3, vol. 18.

  “the Swiss National.” RG 59 1945–9 Box 4206 Gold Memorandum March 15, 1946.

  After Morgenthau’s February. RG 59 1945–9 Box 4206 Gold Mtg March 26, 1946.

  143“Why do I.” E. Schneeberger, Wirtschaftskrieg auch in Frieden (Bern, 1984), p. 185.

  Hirs also had. Vogler report, p. 16.

  “gradually demobilize the.” Peter Hug and Marc Perrenound, Assets in Switzerland of Victims of Nazism and the Compensation Agreements with East Block Countries (Swiss Foreign Affairs Department, December 1996; English version, January 1997), p. xx.

  143“He’s a well-known.” RG 59 1945–9 Box 4206 Swiss Observations on Gold Memorandum March 27 and April 13, 1946.

  144“Puhl was a.” RG 59 1945–9 Box 4206 Swiss Observations on Gold Memorandum April 13, 1946.

  145Crestfallen and humiliated. RG 59 1945–9 Box 4206 March 27, 1946.

  146“The Swiss delegation.” Négotiations de 1945; Guerre Economique, Côte Z424–1, 2, 4, vol. 26, p. 129.

  “We are isolated.” TB/Schaffner.

  147His principal successor. E 2800 (-) 1990/106 Bd 16 (Handakten Petitpierre).

  148“a decent and.” RG 59 1945–9 Box 4206 “Gold” Swiss memorandum April 13, 1946.

  “It’s imperative to.” FO 371/60479 April 11, 1945.

  “a part of.” FO 371/60479.

  “Half a loaf.” FO 944/305 April 24, 1946.

  149“a large portion.” Memorandum: German Foreign Assets p. 6, RG 59 1945–9 Bx 4206.

  150“a complete rupture.” FO 371/60479 May 3, 1946.

  were “kicking violently.” FO 371/60479 May 4, 1946.

  151“bring out influential.” Allemagne, Régime des biens allemands, série P9713, vol. 113, pp. 306–8.

  152“insists [that] rapid.” Allemagne, Régime des biens allemands, dec. 1945—mai 1946, série P9715 vol. 113, pp. 334–6.

  Stucki, he believed. Allemagne, Régime des biens allemands, juin 1946-mai 1947, série P9716, vol. 114, p. 50.

  153“We relied upon.” TB/Rubin.

  “specifically excluded Jews.” U.S. Dept of Treasury, History of Foreign Funds Control (1946), pp. 165, 182.

  an “informal agreement.” RG 59 1945–9 Box 4236 Rubin/Adams Memorandum of a conversation October 23, 1947.

  154“I cannot,” he. E 2001 (E) 1967/113 Bd 374 (111) March 20, 1950.

  154“No distinction was.” Ibid.

  155When all this. 50 million kroner from Sweden; 100 million escudos from Portugal and SF50 million from Switzerland. By 1953, only $17.5 million had been raised—$12.5 million from Sweden in full and $5 million from Switzerland. The non-monetary gold and jewelery found in the United States zones in Germany and Austria was valued at $3 million. (RG 59 State Department, Legal Advisor Records relating to postwar issues 1939–63 Non-monetary gold, Box 12.)

  “It was always.” TB/Rubin.

  156“A Swiss lie.” Négociations de 1945; Guerre Economique, Côte Z424–1, 2, 4, vol. 26, pp. 122–8.

  “shunt off on to.” Ibid., pp. 109–32.

  “completely taken in.” RG 260 OMGUS Property Control and External Assets 1945–50 Switzerland Box 654, Harrison to Sec. of State October 8, 1946.

  CHAPTER 10: THE HIDDEN MILLIONS

  157“We had to.” TB/Ginzberg.

  158“This government feels.” Eli Ginzberg, “Report to the Secretary of State,” Ginzberg private papers, p. 69.

  Britain’s “delaying tactics.” Ibid., p. 10.

  “my good friend.” Ibid., p. 17.

  159“I do everything.” Ibid., p. 19.

  “most of the.” T 236/1478 May 1, 1946.

  “The United States delegate.” T 236/1479 May 1946.

  160Mackillop’s proposal, to. T 236/1478 May 29, 1946.

  Unimpressed, Mackillop coldly. T 236/1478 June 5, 1946.

  “The money should.” T 236/1478 June 17, 1946.

  161Pérrier’s letter to. E 2001 (E) 1967/113 Bd 374.

  162“The present cowardice.” Négociations de 1945; Guerre Economique, Côte Z424–1, 2, 4, vol. 26, p. 153.

  By 1949, Switzerland. Allemagne, Avoirs de l’état allemand á l’étranger, Côte 4–21–2, vol. 1022, pp. 174–7.

  162“the atmosphere might.” T 236/1478 May 29, 1946.

  Another Swiss reported. Jacques Picard, Switzerland and the Assets of the Missing Victims of the Nazis (Bank Baer, 1996).

  163But in May. AJC letter, Gottschalk report, June 14, 1946.

  Ginzberg’s recommendation was. Ginzberg, “Report,” pp. 79–81, June 19, 1946.

  163“entirely unprecedented situation.” FO 371/60479 July 10, 1946.

  thirteen-page proposal. E 2001 (E) 1967/113 Bd 374 May 6, 1946.

  “It should not.” E 2001 (E) 1967/113 Bd 374 July 29, 1946.

  165“It is vital.” E 2001 (E) 1967/113 Bd 374 August 3, 1946.

  The idea of. E 2001 (E) 1967/113 Bd 374 August 26, 1946.

  “the approximate number.” FO 837/1175a December 20, 1949.

  166“He wants 5,000.” E 2001 (E) 1967/113 Bd 374 November 11, 1946.

  “the money belonged.” E 4001 (C) 1 Bd 309 (1800) November 25, 1946.

  167The Allies’ interest. FO 371/60481 February 23, 1946; FO 192/199 January 31, 1947; FO 371/67915A April 11, 1947.

  Swiss officials, accepting. Allemagne-Suisse, Côte EU 29–8–3, vol. 21, pp. 149–51.

  “The Swiss government.” RG 319 Records of Army Staff, Ebrty 85A, Army Intelligence File, Box 2882 February 4, 1948.

  Other privileged Germans. RG 59 1945–9 Box 4231 July 17, 1947.

  In Davos, the. Allemagne, Question Juive, Côte EU 4–8–3, vol. 330, p. 42.

  Rather, they spoke. Die Nation, July 23, 1947.

  Among the many. RG 59 1945–9 Box 4255 800.515/5–1149

  May 11, 1949, Robert Kempner, Nuremberg.

  168The accumulation of. FO 371/60479 September 25, 1946.

  “It’s contrary to.” E 7160 (A) b 1968/27 Bd 151 June 22, 1946.

  “There’s resistance to.” E 7160 (A) i 1968/54 Bd 23 (Nr 1–91).

  The lawyers mentioned were Dr. Carl Spahn, Ernst Lochmann, Dr. Kurt Brunner and Dr. Alphons Zuppinger.

  169“It’s shameful,” said. E 7160 (A) i 1968/54 Bd 23 February 11, 1947.

  “I’m pleased with.” E 7160 (A) i 1968/54 Bd 1 September 13, 1946.

  170“That’s impossible,” protested. E 7160 (A) i 1968/54 Bd 1 September 24, 1946.

  The subject would. E 7160 (A) i 1968/54 Bd 1 October 2, 1946.

  The reply to. FO 371/60479 September 25, 1946.

  Britain was asked. T 236/1478 October 5, 1946.

  171The British could. FO 192/199 December 3, 1946.

  “throw the ball.” T 236/1478 October 31, 1946.

  Selous, the commercial. FO 192/199 December 3, 1946.

  Since the nonmonetary. T 236/1478 October 21, 1946.

  This evasion concealed. T 236/1479 September 13, 1947.

  Their fate in. Réparations-Restitutions, Côte Y–59–2, vol. 365, pp. 88, 285–9; vol. 366, p. 28.

  “It would be.” RG 59 1945–9 Box 4228 800.515/4–2547; AJDC, Abba Schwartz May 1, 1947.

  172The Swiss should. RG 59 1945–9 Box 4215A 800.515/10–946 October 9, 1946.

  “fed up with.” E 2800 (-) 1967/61 Bd 88 (Société de Banques Suisse) November 26, 1946.

  To the minister. RG 131 1942–60 Box 51 February 2, 1947 Ostrow to Washington.

  173Letters addressed to. FO 192/201 pt 5 October 28, 1947.

  Inside Switzerland—unlike. RG 260 OMGUS Property Control and External Assets 1945–50 Switzerland Box 654.

  Schwab and his. FO 192/199 February 3, 1947.

  “We know about.” RG 59 1945–9 Box 4218 December 23, 1946.

  174“We’re
not finding.” E 7160 (A) 1 1968/54 November 12, 1946 and October 28, 1947.

  “the Germans should.” E 7160 (A) 1 1968/54 Bd 29 (Korrespondenz AK 1952–4) June 13, 1952.

  Compensation Office’s valuation. FO 371/93941 August 10, 1951.

  174“We cannot allow.” FO 837/1288.

  175“Homberger’s prediction about.” E 7160 (A) 1 1968/54 November 12, 1946.

  “I believe we.” E 7160 (A) i 1968/54 vol. 6 June 1, 1947.

  176Stuclri was shocked. E 7160 (A) i 1968/54 Bd 23 (Nr 1–91) September 5, 1947.

  “This wasn’t done.” E 7160 (A) i 1968/54 September 9, 1947.

  177The discrepancies exposed. E 7160 (A) i 1968/54 Bd 23 Exposé Nr 79 October 24, 1947.

  “The banks acted.” E 7160 (A) i 1968/54 vol. 5 October 28, 1947.

  CHAPTER 11: PERFIDIOUS SWISS

  179“The Committee is.” E 7160 (A) i 1968/54 Bd 23 March 11, 1947.

  “a Galacian Jew.” E 7160 (A) i 1968/54 vol. 5 December 16, 1947.

  180Posted during the. RG 56 U.S. Treasury, re Swiss banks and Safehaven, Mann memorandum for the files, February 25, 1947.

  The contents could. AJDC, AR 45/64 1207 February 27, 1948.

  181“We’ve reached the.” RG 59 1945–9 Box 4225 800.515/3–2847.

  “in full recognition.” FO 192/200 Pt 3 April 16, 1947.

  “We’ll be accused.” E 7160 (A) i 1968/54 Bd 23 May 25, 1947.

  The Jewish refugees. Stucki was also aware that Sweden had not yet paid its promised 50 million kroner for refugees or returned its looted gold—prompting Desmond Morton’s condemnation in London of “the inherent dishonesty of the Swedes” (FO 837/1287 May 31, 1948).

  182The Foreign Office’s. FO 837/1288 October 25, 1947.

  “I have been.” FO 837/1288 October 20, 1947. The Allies proposed that the rate of exchange should be the same as between Nazi Germany and Switzerland during the war—SF173 to RM100. On October 8, Switzerland made a counteroffer of SF43 to RM100.

  182“The Swiss,” he. FO 837/128 December 9, 1947.

  “We could rely.” E7160 (A) i 1968/54 Bd 4 Protokoll AK June 24, 1947.

  “suggestions for turning.” FO 837/1288 October 25, 1947, November 1 and 29, 1947. Meeting on October 14.

  183“We regard the.” FO 837/128 November 29, 1947.

  To help Germans. E 7160 (A) i 1968/54 Bd 23 May 27, 1947.

  “It seems to.” E 2001 (E) 1967/113 Bd 374 (111) March 20, 1950.

  “It never crossed.” RG 59 1945–9 Box 4236 Rubin/Adams memorandum of a conversation October 23, 1947.