[Congressional Record Volume 142, Number 46 (Friday, March 29, 1996)]
[Senate]
[Pages S3246-S3247]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
THE SWISS BANKS, THE NAZIS, AND HOLOCAUST ASSETS
Mr. D'AMATO. Mr. President, I rise today to discuss the issue
that I spoke about yesterday, namely that of the return, by Swiss
banks, of assets deposited by European Jews and others in the years
preceding the Holocaust.
Today, I would like to discuss the revelations disclosed in newly
discovered documents by my staff. These documents explain the
connections of certain wartime Swiss bankers with Nazi Germany. The
documents are disturbing to read, especially when one considers the
history of the times and the horrors that took place because of the
murderous actions of the Nazi regime with which these men dealt.
One such declassified document, dated August 2, 1945, from the
American Embassy in London, from which made up the American
Occupational project, ``Operation Safe Haven,'' details the membership
of the board of directors of the I.G. Farben Co. I.G. Farben was, at
the time, the largest chemical company in the world, and is known,
quite infamously for the fact that one of its subsidiaries produced
``Zyklon B,'' the poison gas used in the gas chambers in the Nazi
extermination camps in Europe. While voluminous, the document provides
short biographies of the directors.
At this time, I would like to ask unanimous consent that a portion of
this document be printed in the Record at the conclusion of my remarks.
It is in this document that several Swiss nationals are listed and
some are listed as owners or directors of Swiss banks. Following are
the names of the bankers:
August Germann: Described as the ``Director of the Bank Fuer
Unternehmungen, Zurich.''
Carlo Mollwo: Described as ``A cover man for I.G. Farben formally
holding 100 percent of the shares of the Swiss bank, Ed. Greutert &
Cie. (Now H. Sturzenegger & Cie.).''
Hans Sturzenegger: Described as ``A Swiss and relative of Greutert,
became Managing Director of the Swiss Bank, Ed. Greutert & Cie. * * *
In 1942, Sturzenegger was listed as the unlimited partner of the bank
and Industrie Bank A.G. of Zurich was listed as the limited partner.''
Theodor Wolfensperger: Described as the ``President of Industrie
Bank, Zurich. Known as a member of the I.G. clique.''
Mr. President, I know that this is the stuff of history, but it
serves to point out one vital factor in understanding how this
controversy in Switzerland today, came about. Here we have Swiss
owners, or directors of banks in Switzerland, which might well have
been the place of deposit for funds of European Jews, and they are
sitting on the board of I.G. Farben, clearly a notorious company, by
any standard. These men, as you will see by the document, also headed
companies which acted as fronts for the Nazis, and later perhaps helped
get assets looted by the Nazis, out of Europe. My question is, if they
would do all this for the Nazis, what would they do with the assets of
Europe's Jews?
Mr. President, this is a disturbing question, and to one that I truly
do not know the answer. Nevertheless, I fear the worst. Yet, when
considering this question, it inevitably begs a further question. What
role did the Swiss Government play in this regard?
To provide a possible answer to this question, I would like to
introduce the now declassified report of Daniel J. Reagan, then
Counselor of Legation for Economic Affairs at the U.S. legation in
Bern, who wrote to the Secretary of State on October 4, 1945 concerning
the lack of cooperation of the Swiss Government.
I would ask that the text of this report be inserted in the Record at
this time.
Mr. President, this is a devastating indictment of the Swiss
Government and it illustrates how the Swiss went out of their way to
avoid cooperating with the Allies in breaking up the German war effort
and its vast economic structure.
This is only the beginning of our inquiry. We are finding documents
daily, and with each search, we find more evidence which, I hope will
place us closer to the truth, namely the authoritative, accurate and
final accounting of all assets that numerous Swiss banks continue to
hold from this time period and to which the survivors and rightful
heirs are entitled.
The report follows:
Secret Attachment
Sponsor Agency: External Security Intelligence Coordinating
Committee, Washington, D.C.
11. In Switzerland or Connected with the Swiss Business.
Fritz Fleiner--Member of the Board of I.G. Chemie.
Dr. Albert Gadow--I.G. Farbon's Swiss representative.
Member of the Board of each chief figure in I.G.
Chemie, Basle. Brother-in-law of Hermann Schmitz.
August Gormann--Member of I.G. Chemie's Board of Directors,
and Director of the Bank Fuer Unternehmungen, Zurich.
Paul Haefliger--(See IV. A.2.).
Anton Heinrich--(See IV. A.3.).
Ernst Huelsmann--(See IV. A.3.).
Felix Iselin--President of I.G. Chemie, Basle, replacing
Hermann Schmitz in 1940. One of most important lawyers in
eastern Switzerland, a colonel in the Swiss Army, and chief
of its Intelligence Service. Also President of the
Schweizerische Treuhand--Gesellschaft of Basle, the chartered
accountant firm of the Swiss chemical concerns Ciba, Geigy,
and Sandoz. A former colleague of Iselin's has stated that
Iselin is a prominent representative of absolutely German
interests, and that he goes to Berlin to take orders from
Hermann Schmitz and then telephones them to New York from
Basle, thus pretending to protect Swiss interests where he is
really protecting the interests of I. G. Farben.
Gottfried Keller--Member of the Board of Directors of I.G.
Chemie, Basle.
Carlo Mollwo--German by birth, married to a Swiss, Became a
Swiss citizen. ``A cover man for I.G. Farben'' formerly,
holding 100% of the shares of the Swiss bank, Ed. Greutert &
Cie. (now H. Sturzenegger & Cie.). He was especially active
for I.G. in the nitrogen cartel through Greutert & Cie.
President of the Board of Administration of Societe
Auxiliaire de Participations et de Depots S.A., and member of
the Board of Directors of I.G. Chemie, Basle. Chief auditor
for I.G. Chemie since 1929.
Karl Pfoiffer--(See IV. A.1.).
Hormann Schmitz--(See IV. A.2.) Resigned as President of
I.G. Chemie in 1940 and was replaced by Felix Isolin.
Hans Sturzeneggor--A Swiss and relative of Groutort, became
Managing Director of the Swiss bank, Ed. Greutert & Cio.,
upon the death of Greutort in 1939, and the name of the bank
was changed to H. Sturzeneggor & Cio. He had been trained in
the Frankfurt offices of Metallgesellschaft and in the
Finance Dept. of I.G. In 1942 Sturzenogger was listed as the
unlimited partner of the bank and Industrie Bank A.G. of
Zurich was listed as the limited partner. He is a member of
the Board of I.G. Chemie
Theordor Wolfensperger--President of Industrie Bank,
Zurich, Switzerland. Known as a member of the I.G. clique. He
has been used as a nominee for I.G. in other dummy holding
companies, as for instance Mapro, an I.G. camouflaged holding
company in the Dutch East Indies.
12. Turkey
Widmann--Manger of Bayor; Turkey. His private funds and
personal possessions insured for LT 85,000 are held by Dr.
Feridun Frik, Istanbul, at the house of Salahettin Ozgen,
Eskisohir.
13. Latin American
Johann Carl Ahrons--Nominal partner in A. Quimica.
Bayor Lda., Brazil, Probably a front for I.G. Farben.
Ernst Holmut Andreas--German radio engineer who operated a
radio station, ``Radio Bayer'' in Managua, Nicaragua, from
1929 to 1940. It advertised Bayer products and in the later
years its programs included Nazi propaganda. (In 1940 the
station was sold to Joso Mondoza.) He was deported to the
U.S. in 1942 and in 1945 was a soldier in the U.S. Army.
Believed to be a Nazi and to have operated a secret
transmission set in Managua.
____
Bern, October 4, 1945.
Subject: Transmission of statement from Swiss purporting to
give an indication of results of census of German assets.
[Via air mail pouch--USA War Crimes Office, Oct. 26, 1945--Secret]
The Honorable
The Secretary of State,
Washington.
Sir: I have the honor to refer to the Legation's telegram
No. 4211 (Repeated to London as 1407 and to Paris as 692),
September 25, 1945, wherein it was reported that despite
repeated and joint efforts of the British, French and
ourselves during the past six months to induce the Swiss to
implement effectively the agreement of March 8, it now
appears that the Swiss are failing to meet in certain
respects their engagements under that agreement, indulging in
procrastinating tactics and also undermining economic warfare
measures. As evidence of this statement there is transmitted,
in the original and in translation, a memorandum presented to
the
[[Page S3247]]
Economic Counselor by Mr. Kohli on behalf of the Federal
Political Department, embracing what the Swiss describe as
their interim report on the census of German assets as
promised two months ago (Par. 4, Legation's telegram No.
3667, July 24). As it may be seen, this statement presents a
mere description of the mode of operation of the Swiss
Compensation office, the number of cases blocked without any
indication of the results of the census. Mr. Kohli refused to
indicate, moreover, when, if at all, any results of the
census would be made available to the Allies. He did not
contest the joint understanding of the British, French, and
ourselves that the Swiss would make available at least the
approximate value of interim blocked assets, but they have
now failed to do so.
Early in August Mr. Schwab, Chief of the Swiss Compensation
Office, informed the Economic Counselor that he had in the
course of preparation what he intimated was a complete report
which he was preparing for the Federal Political Department.
Mr. Schwab stated at the time that he understood this report
was intended for the Allies. Shortly afterwards Mr. Kohli, of
the Federal Political Department, informed the Economic
Counselor that he had received this report but that it was
being translated from German into French for us. The Economic
Counselor indicated that the German text would be
satisfactory. Mr. Kohli stated he thought it more polite to
transmit it in French. On August 23 Mr. Kohli was again
reminded that we had not received this document. He stated
that the translation had not yet been completed but that we
would obtain it in the near future.
At a meeting on September 12 the Economic Counselor stated
that he could not understand why this report, which had been
in Mr. Kohli's hands for approximately a month, had not yet
been transmitted. Mr. Kohli replied that after the
translation had been made from German into French, the latter
text had been submitted to Mr. Schwab of the Swiss
Compensation Office for the latter's approval, but that Mr.
Schwab had been on vacation for two weeks. The Economic
Counselor informed Mr. Kohli that this statement was most
remarkable, for members of his office had been in
communication with Mr. Schwab by telephone several times
during the preceding week. The Economic Counselor added that
he had advised the Department of State of the promise to
supply a report giving the pertinent information so far
obtained on the census, but that it now appeared that this
report, although completed a month ago by the Swiss
Compensation Office, had been held up by the Federal
Political Department. He expressed the fear that its
transmission to us was, for reasons unknown, no longer
intended. Mr. Kohli thereupon gave instructions to his
assistant to assure that the French text of the report be
delivered to us on the following day, which it was. It should
be observed that the Aide-Memoire enclosed herewith bears the
date of August 27, although it was not delivered until
September 13.
The foregoing incident has been recited in detail because
it suggests that the report prepared by the Swiss
Compensation Office and intended for this and the British
Legation and the French Embassy was censored and a
perfunctory resume substituted therefor. The enclosed report,
it is hardly necessary to state, represents a failure on the
part of the Swiss to carry out their promise to acquaint us
with the interim results of the census and was delivered two
weeks after the census was technically closed on August 31.
This failure of the Swiss to respect their promises is of
especial significance at this time. It would appear to be
related to the neglect the Swiss have shown inter alia for
those provisions of the March 8 agreement which related to
the prompt adoption of legislating necessary to facilitate
the restoration of looted property and to the attempt made by
the Swiss in the Viscose Suisse case, as reported in
Legation's telegram 4211, September 25, to negate the
influence of the Allied Proclaimed Lists. Reference must also
be made by the belated response offered by the Swiss on
September 25 (reported in Legation's telegram 4236 of
September 28) to Legation's note of August 3 asserting title
to German assets and to the Swiss failure to make any
response to the Legation's note of July 12. The latter, as
reported in Legation's dispatch 12188 of July 27, 1947,
requested the Swiss to take steps, in accordance with the
March 8 agreement, to assure that no disposition of German or
German-controlled property in Switzerland would occur. As
reported in Legation's telegram No. 4201 of September 24,
1945, despite this note and despite adequate notice from the
Economic Counselor of this Legation that one such disposition
was about to occur, the Swiss Government took no steps to
intervene in the proposed sale of a German school at Davos.
From these incidents one inference is difficult to avoid:
the Swiss Government is pursuing dilatory tactics designed to
test the sincerity, firmness, and unity of the Allies with
respect to the German assets in Switzerland and with respect
to the commercial future of those Swiss enterprises and
individuals whose pro-German activities were sufficiently
notorious to merit inclusion on the Allied black lists. These
tactics are being employed, it would appear, in the belief
that, in the interim, the Allies will become so preoccupied
with other affairs as to neglect to press for further
execution of the March 8, agreement. If they are successful,
the Swiss will thereby have escaped the proper and legitimate
obligations which the majority of other neutrals have
assumed, vis-a-vis the Allies, to put an end to the more
important potentials for the continuation of Nazi activities.
In this connection, attention must be directed to recent
discussions in the Swiss Parliament and the Swiss press. As
reported in Legation's telegrams 4176, September 20 and 4186,
September 21, 1945, Federal Councilor Stampfli, Chief of the
Department of Public Economy, and Mr. Dutweiler, influential
Swiss political leader, have violently attacked the Allies'
listing policy. They have chosen deliberately to misrepresent
the purposes and objectives of the Allies with respect to
German and Japanese assets and the Proclaimed List. They
have categorized these purposes and objectives as
``economic warfare'' directed against the Swiss economy, a
statement so palpably false as to require no comment here.
The significant point is that these responsible officials
and influential spokesmen, supported by large sections of
the Swiss press, choose this time to launch an offensive
against our lists and the policy behind the lists. This
campaign is mounting in scope and intensity. The
conclusion here too is difficult to avoid: the Swiss
officials are endeavoring to create a public opinion which
will accept as proper and in the interests of Switzerland
the failures of the Swiss Government to perform wholly in
accordance with the provisions and spirit of the
agreements made with the Allies.
Meanwhile, the concealment of German assets is facilitated
by inadequate enforcement of existing inadequate legislation
and Swiss nationals, in direct contravention of the March 8
agreement, are taking title to important German enterprises
located here, steps which further complicate the detection of
enemy property and the restoration of looted property.
Respectfully yours, For the Charge d'Affaires a.i.
Daniel J. Reagan,
Counselor of Legation
for Economic Affairs.
____________________