by Kai Bird
35. Oliver, International Economic Cooperation, pp. 247–48.
36. Newsweek, July 28, 1947.
37. The British thought the French loan’s 4.25-percent interest rate was “rather steep.” (5/21/47, PRO.)
38. Newsweek, July 28, 1947.
39. Mason and Asher, World Bank Since Bretton Woods, p. 132. It would be a full decade before Wall Street deigned to give World Bank securities a triple-A rating.
40. Ibid., p. 131.
41. Privy Council to Hugh Dalton, 6/23/47, PRO.
42. Yergin, Shattered Peace, p. 236; Forrest C. Pogue, George C. Marshall: Statesman 1945–1959 (New York: Viking, 1987), pp. 194–95.
43. The Times (London), June 17, 1947.
44. NYT, Jan. 16, 1948.
45. Philadelphia Evening Bulletin, Aug. 26, 1947.
46. WP, Sept. 11, 1947.
47. Yergin, Shattered Peace, pp. 327–28.
48. Washington Star, Sept. 13, 1947.
49. George Sokolsky, Philadelphia Inquirer, April 2, 1948.
50. Oliver, International Economic Cooperation, p. 239.
51. McCloy to Foster Dulles, 11/21/47, Dulles Papers, PU.
52. British Foreign Office memo, 5/29/47, PRO.
53. Oliver, International Economic Cooperation, p. 245.
54. Thomas Alan Schwartz, “From Occupation to Alliance: John J. McCloy and the Allied High Commission in the Federal Republic of Germany, 1949–52,” unpublished thesis, Department of History, Harvard University, June 1985, p. 41; Mason and Asher, World Bank Since Bretton Woods, pp. 170–71. While McCloy was in Poland, his vice-president, Bob Garner, went over to the State Department to discuss the “various political difficulties” of the loan with Bob Lovett. Garner frankly told Lovett that the Bank would “need positive backing by the State Department . . . before the Bank could afford to go into this ticklish situation.” (Robert L. Garner diary, 9/30/47, HST; Robert Garner-Llewellyn E. Thompson memo of conversation, 9/30/47, John Snyder Papers, HST.)
55. Foreign Office cable to Washington, 11/10/47, PRO.
56. Foreign Office to Munro in Washington, 10/28/47, PRO.
57. Munro to Rowe-Dutton, 12/17/47, FO 371/62351 xc/a/54435, PRO.
58. Robert L. Garner, This Is the Way It Was (Chevy Chase, Md.: Chevy Chase Printing, 1972), p. 211.
59. CIA intelligence memorandum no. 167, 4/21/49, HST.
60. NYT, March 3, 1949.
61. Averell Harriman memo, 6/28/71, Harriman oral history Truman Era, AH.
62. Fleming, Cold War and Origins, vol. I, p. 293.
63. Mayers, George Kennan, p. 99.
64. NYT, April 6, 1948.
65. John J. McCloy, address, Economic Commission of the 9th International Conference of American States, 11:00 A.M., Monday, April 5, 1948.
66. Alexander Fleming, Private Capital Flows to Developing Countries and Their Determination: Historical Perspectives, Recent Experience, and Future Prospects, World Bank Staff Working Paper No. 484 (Washington, D.C.: The World Bank, 1981), p. 2.
67. Time, June 20, 1949; Robert Garner diary, 12/13/48, HST.
68. Mason and Asher, World Bank Since Bretton Woods, pp. 496–98.
69. John J. McCloy memorandum to the president, 1/7/49, Dean Acheson Papers, HST.
70. Robert L. Garner diary, 1/24/49, HST; Marquis Childs, New York Post, Jan. 24, 1949.
71. NYT, Feb. 1, 1949.
72. McCloy to Baruch, 2/21/49, Baruch Papers, PU.
73. Mason and Asher, World Bank Since Bretton Woods, pp. 61, 96; Time, June 20, 1949.
74. Garner, The Way It Was, pp. 220, 218.
75. Phillip Knightley, The Master Spy: The Story of Kim Philby (New York: Alfred A. Knopf, 1989), p. 153.
76. James Rowe, Jr., to Dean Acheson, 5/13/48, HST.
77. James Rowe, Jr., to Dean Acheson, 5/7/48, HST.
78. Commission on Organization of the Executive Branch of the Government, Committee on the National Security Organization, morning meeting of June 9, 1948, Strauss Papers, Hoover Committee, National Security Task Force Minutes, HH.
79. Gregory F. Treverton, Covert Action: The Limits of Intervention in the Postwar World (New York: Basic Books, 1987), pp. 35–36; U.S. Senate, Final Report of the Select Committee to Study Governmental Operations with Respect to Intelligence Activities, bk. IV, 4/23/76, p. 31.
80. John Ranelagh, The Agency: The Rise and Decline of the CIA from Wild Bill Donovan to William Casey (New York: Simon & Schuster, 1986), p. 115; William R. Corson, The Armies of Ignorance: The Rise of the American Intelligence Empire (New York: Dial, 1977), pp. 295, 299.
81. Walter Isaacson and Evan Thomas, The Wise Men: Six Friends and the World They Made, pp. 457–59.
82. Morning meeting, 9/9/48, Committee on National Security Organization, Meek Papers, Intelligence Gathering-Interview Sessions, p. 452, HH; see also Corson, Armies of Ignorance, p. 292.
83. Report on the Central Intelligence Agency, Sutherland and Bross for Eberstadt, 9/20/48, Meek Papers, Intelligence Gathering, National Security Task Force, HH.
84. Rhodri Jeffreys-Jones, The CIA and American Democracy (New Haven, Conn.: Yale University Press, 1989), p. 58.
85. Final Report, Senate Select Committee on Intelligence, “CIA History,” bk. IV, p. 31; Ranelagh, The Agency, p. 218; Harriman cable to Hoffman, 3/28/49, AH.
86. McCloy to Baruch, 2/21/49, Baruch Papers, PU.
87. Robert Paul Browder and Thomas G. Smith, Independent: A Biography of Lewis W. Douglas, p. 326; Douglas cable re: McCloy travel plans, 4/6/49, LD.
88. Isaacson and Thomas, Wise Men, p. 515; McCloy interview.
89. Oliver, International Economic Cooperation, p. 240; Lew Douglas to McCloy, 5/11/49, LD.
90. Schwartz, “From Occupation to Alliance,” pp. 72–74. When Harriman, who had objected to Clay’s attempt to control ECA funds in Germany, learned that McCloy was to be Clay’s successor, he said his old friend could “write his own ticket.”
91. McCloy to Truman, 5/18/49, Official File, HST.
92. The World Bank Annual Report 1988 (Washington, D.C.: The World Bank, 1989), p. 9.
93. John J. McCloy, “The Lesson of the World Bank,” Foreign Affairs, July 1949.
FIFTEEN: GERMAN PROCONSUL: 1949
1. NYT, May 21, 1949.
2. Ibid., May 20, 1949.
3. Ronald Steel, Walter Lippmann and the American Century, p. 452.
4. Ibid., p. 451.
5. Richard Hiscocks, The-Adenauer Era (Philadelphia: J. B. Lippincott, 1966), pp. 18–20, 24.
6. D. F. Fleming, The Cold War and Its Origins: 1917–1960, vol. I, p. 506.
7. Steel, Walter Lippmann, p. 453.
8. Thomas Alan Schwartz, “From Occupation to Alliance: John J. McCloy and the Allied High Commission in the Federal Republic of Germany, 1949–52,” unpublished thesis, Department of History, Harvard University, June 1985, p. 65.
9. Lippmann to Kennan, Feb. 1,1949, in John Morton Blum, ed., Public Philosopher: Selected Letters of Walter Lippmann, p. 528.
10. Axel von dem Bussche interview, April 5, 1984. Von dem Bussche, a member of the German resistance, remembers having long conversations with McCloy about the resistance and Germany’s collective guilt.
11. For a general discussion of the Allied attitude toward the division of Germany, see Wolfram F. Hanrieder, Germany, America, Europe: Forty Years of German Foreign Policy (New Haven, Conn.: Yale University Press, 1989), pp. 6–11.
12. Time, June 20, 1949.
13. Ibid.
14. Washington Star, June 19, 1949.
15. “Excerpts from Conference on the Future of the Jews in Germany, Remarks by John J. McCloy, High Commissioner,” McCloy HICOG Papers, NA (Suitland).
16. Allen Dulles to McCloy, 6/9/49, box 41, John J. McCloy 1949, Dulles Papers, PU.
17. NYT, June 30, 1949.
18. WP, July 2, 1949.
19. NYT, July 3, 1949.
20. Newsweek, July 11, 1949.
21. Washington Star; July 27, 194
9.
22. Shepard Stone interview, March 1, 1984.
23. Edward M. M. Warburg to McCloy, 7/1/49, McCloy HICOG Papers, NA (Suitland); Jacques Attali, A Man of Influence: The Extraordinary Career of S. G. Warburg (Bethesda, Md.: Adler & Adler, 1987), p. 188.
24. Harry Greenstein to McCloy, 7/19/49, McCloy HICOG Papers, NA (Suitland).
25. “Introduction of Mr. McCloy by Harry Greenstein at the Conference on the Future of the Jews in Germany, Heidelberg, 31 July 1949,” McCloy HICOG Papers, NA (Suitland).
26. Text of McCloy remarks, Heidelberg, 7/31/49, McCloy HICOG Papers, NA (Suitland).
27. Benjamin Buttenwieser oral history, Nov. 10–11, 1982, Columbia University.
28. Saul Sherman interview, Feb. 3, 1984; Benjamin Buttenwieser oral history, Columbia University.
29. Dean Acheson, Sketches from Life of Men I Have Known (New York: Harper & Brothers, 1959), p. 167.
30. Ibid., p. 168.
31. Mrs. Frederick Warburg interview, April 10, 1984.
32. Saul Sherman interview, Feb. 3, 1984.
33. Gates Davison interview, Nov. 5, 1986.
34. Acheson, Sketches from Life, p. 177.
35. Mrs. Frederick Warburg interview, April 10, 1984.
36. Dean Acheson, Present at the Creation, p. 288.
37. McCloy to Acheson, eyes only, 9/16/49, McCloy HICOG Papers, NA (Suitland).
38. Schwartz, “From Occupation to Alliance,” p. 101.
39. Washington Star, Aug. 7, 1949.
40. NYT., Aug. 15, 1949.
41. The Times (London), Aug. 15, 1949.
42. NYT, Aug. 16, 1949.
43. James Warburg, Germany: Key to Peace (Cambridge, Mass.: Harvard University Press, 1953), p. 121.
44. Terence Prittie, Adenauer: A Study in Fortitude (Chicago: Cowles, 1971), p. 124. Prittie points out that in 1934 Adenauer wrote a letter to the Nazi minister of the interior in which he used rather obsequious language to request the payment of his pension of 12,000 marks a year and compensation for two homes requisitioned by the party in Cologne. Adenauer stated that he was “nationally reliable” and that his dealings with the Nazis had always been “correct.” His plea was successful, and he used these monies to build the house he owned in the village of Rhondorf, where he was left alone up to 1944. Until very late, Adenauer had always thought the communists more dangerous than the Nazis. After his dismissal as mayor of Cologne, he never made any demonstration of his opposition to Hitler and never joined the resistance. (Ibid., pp. 94–95.)
45. Schwartz, “From Occupation to Alliance,” p. 89.
46. Prittie, Study in Fortitude; William Manchester, The Arms of Krupp (Boston: Little, Brown, 1964), p. 307.
47. Charles Wighton, Adenauer: A Critical Biography (New York: Coward-McCann, 1963), pp. 109–10.
48. Benjamin Buttenwieser oral history, Columbia University; Charles W. Thayer, The Unquiet Germans (New York: Harper & Brothers, 1957), p. 120.
49. Schwartz, “From Occupation to Alliance,” p. 88.
50. Acheson, Sketches from Life, p. 169.
51. Wilhelm Grewe interview, Feb. 9, 1984.
52. Prittie, Study in Fortitude, p. 153.
53. T. H. Tetens, The New Germany and the Old Nazis (London: Seeker & Warburg, 1962), p. 63.
54. Warburg, Germany: Key to Peace, p. 120.
55. Transcript of 23rd meeting of the military governors in Frankfurt, 9/2/49, McCloy HICOG Papers, NA (Suitland).
56. Transcript of HICOG staff conference, 9/22/49, McCloy HICOG Papers, NA (Suitland).
57. HICOG staff-meeting transcript, 11/18/49, McCloy HICOG Papers, NA (Suitland).
58. Schwartz, “From Occupation to Alliance,” pp. 124–25.
59. Ibid., pp. 125–26; Paul Weymar, Adenauer: His Authorized Biography (New York: E. P. Dutton, 1957), pp. 286–87; Konrad Adenauer, Memoirs 1945–1953 (Chicago: Henry Regnery, 1966), p. 184; Prittie, Study in Fortitude, p. 154. It is possible that McCloy confused his “Canossa” anecdote with a later meeting between Adenauer and the high commissioners.
60. Weymar, Authorized Biography, pp. 288–89.
61. Prittie, Study in Fortitude, p. 153.
62. Ibid., p. 129.
63. Memo of conversation with American labor leaders, 3/14/50, DOS FOI A.
64. C. L. Sulzberger, A Long Row of Candles (Toronto: Macmillan, 1969), p. 893.
65. Walter Isaacson and Evan Thomas, The Wise Men: Six Friends and the World They Made, p. 516.
66. NYT, Sept. 14, 1949; McCloy cable to Acheson, 9/14/49, re: dismantling and his meeting with Adenauer and Schumacher, McCloy HICOG Papers, NA (Suitland).
67. Schwartz, “From Occupation to Alliance,” p. 146; Axel von dem Bussche interview, April 5, 1984; Eric Warburg interview, March 10, 1986; see also Eric Warburg to Allen Dulles, 10/6/49, Allen Dulles Papers, box 42, PU.
68. WPt 10/10 49; Schwartz, “From Occupation to Alliance,” pp. 153–54.
69. Schwartz, “From Occupation to Alliance,” p. 148.
70. Ibid., p. 162.
71. Meeting of ambassadors at Paris, summary record, 10/21–22/49, HST.
72. Summary meeting between Adenauer and the high commissioners at BonnPetersberg, 10/28/49, McCloy HICOG Papers, NA (Suitland).
73. Prittie, Study in Fortitude, p. 152.
74. Secret memorandum of conversation of luncheon with Adenauer, McCloy, Acheson, et al., 11/13/49, McCloy HICOG Papers, NA (Suitland).
75. Acheson, Sketches from Life, pp. 172–73.
76. Ibid., p. 178.
77. Prittie, Study in Fortitude, pp. 154–55.
78. NYT, Nov. 30, 1949, Dec. 17, 1949; Prittie, Study in Fortitude, p. 156; Schwartz, “From Occupation to Alliance,” p. 172.
79. McCloy cable to Acheson and Byroade, 12/2/49, McCloy HICOG Papers, NA (Suitland).
80. McCloy letter to Maurice Leon, 12/12/49, McCloy HICOG Papers, NA (Suitland).
81. “Possibility of Soviet Troop Withdrawal from Germany before the Summer of 1949,” CIA report ORE 51–48; “The Possibility of Direct Soviet Military Action During 1949,” CIA report ORE 46–48; “Review of the World Situation,” July 1949, CIA report to the president, pp. 5–6, HST.
82. NYT, Nov. 8, 1949.
83. Secret memorandum of conversation of luncheon with Adenauer, McCloy, Acheson, et al., 11/13/49, McCloy HICOG Papers, NA (Suitland).
84. Prittie, Study in Fortitude, p. 158.
85. McCloy to Acheson, 12/22/49, McCloy HICOG Papers, NA (Suitland).
86. The Times (London), Dec. 23, 1949.
87. NYT, Dec. 24, 1949.
88. Shepard Stone interview, March 1, 1984.
89. Tetens, New Germany and Old Nazis, p. 100.
90. Schwartz, “From Occupation to Alliance,” p. 169.
91. Tetens, New Germany and Old Nazis, p. 51.
92. Robert Wistrich, Who’s Who in Nazi Germany (London: Weidenfeld & Nicolson, 1982), pp. 93–94. Adenauer had offered Globke the powerful post of state secretary of the Chancellory in 1949, but Globke turned it down on the grounds that the position was too prominent. He accepted the same post in 1953. (Prittie, Study in Fortitude, p. 217.)
93. Benjamin Buttenwieser oral history, Columbia University; Axel von dem Bussche interview, April 5, 1984.
94. Tetens, New Germany and Old Nazis, p. 253.
95. Edwin Hartrich, The Fourth and Richest Reich: How the Germans Conquered the Postwar World (New York: Macmillan, 1980), pp. 68–70.
96. Transcript of HICOG staff meeting, 11/30/49, McCloy HICOG Papers, NA (Suitland).
97. Memo by Mortimer Kollender, acting chief of the HICOG Administrative Justice Division, to the general counsel, 10/11/49, McCloy HICOG Papers, NA (Suitland).
98. McCloy memo to McClain, 12/9/49, with attachments: McCloy memo to McCloy, 12/9/49; draft letter from McCloy to Joseph Cardinal Frings, archbishop of Cologne, 12/9/49; and archbishop to McCloy, 11/17/49, McCloy HICOG Papers, NA (Suitland).
99. Telford Taylor to McCloy, 12/27/49, McCloy HICOG
Papers, NA (Suitland).
SIXTEEN: THE DILEMMA OF GERMAN REARMAMENT
1. T. H. Tetens, The New Germany and the Old Nazis, p. 100.
2. McCloy extended a dinner invitation to Frau Elizabeth Struenck at the urging of Allen Dulles. Struenck’s husband had served as one of Dulles’s underground couriers during the war and had informed Dulles about the plot to assassinate Hitler. (Dulles to McCloy, 8/31/49; McCloy to Dulles, 9/30/49, Allen Dulles Papers, box 41, PU.)
3. Drexel Sprecher interview, May 25, 1984; McCloy to Eugene Meyer, 12/14/49, Meyer Papers, box 35, LOC.
4. NYT, Jan. 12, 1950.
5. Draft statement regarding formation of a clemency board, 1/19/50, McCloy HICOG Papers, NA (Suitland).
6. McCloy to Acheson, 1/7/46, HST.
7. Stars and Stripes, Feb. 2, 1950.
8. McCloy to Acheson, 2/17/50; Acheson to McCloy, 2/23/50, McCloy HICOG Papers, NA (Suitland).
9. NYT, Jan. 27, 1950.
10. Ibid., Feb. 7, 1950.
11. WP, Feb. 8, 1950.
12. New York Post, Feb 8, 1950; New York Compass, Feb. 8, 1950.
13. Thomas Alan Schwartz, “From Occupation to Alliance: John J. McCloy and the Allied High Commission in the Federal Republic of Germany, 1949–52,” unpublished thesis, Department of History, Harvard University, June 1965, p. 192.
14. NYT, April 19, 1950.
15. McCloy to Adenauer, 4/25/50, McCloy HICOG Papers, NA (Suitland).
16. Drexel Sprecher interview, July 11, 1984.
17. William Manchester, The Arms of Krupp, pp. 647–48.
18. NYT, April 3, 1950.
19. Schwartz, “From Occupation to Alliance,” p. 199.
20. NYT, April 5, 1950.
21. Schwartz, “From Occupation to Alliance,” p. 236.
22. NYT, May 15, 1950; Schwartz, “From Occupation to Alliance,” p. 201.
23. NYT, May 3, 1950.
24. Ibid., May 23, 1950.
25. Ibid., June 17, 1950; WP, June 17, 1950.
26. Schwartz, “From Occupation to Alliance,” p. 237.
27. McCloy to Stimson, 6/28/50, McCloy HICOG Papers, NA (Suitland).