[98-38-3/NOR001]:RPT:L: [98/09/22][30: ] [1] STAND:[1.1.31/ ][1.1.31/ ][ . . / ] SUBJT:[5.1.00/ ][2.1.00/ ][ . . / ] TOPIC:[220.505:] SUB-T:[210.146:]EVNT-DATE:[1998/09/22] TITLE:[McCloy Report ] 1 of 12 Pages SYNOPSIS By: SR To: Nancy, Jeff, Lyn, Tony C. RE: Rosenblatt report on McCloy Headings, etc markings removed when put into text format: Another copy in Word Case Study of the British-American-Canadian Establishment John J. McCloy--The Dismantling of the Roosevelt Post-War Vision by Stu Rosenblatt Book review--The Chairman, John J. McCloy, The Making of the American Establishment, by Kai Bird; Simon and Schuster, NY 1992 Mccloy :"I am not sure who the chairman of the Establishment is today…by a thrust of sheer intuition, though, I did get the name of the 1958 chairman and was rather proud of myself for doing so. In that year, I discovered that J.K. Galbraith had for some time been surreptitiously at work in establishment studies, and he told me that he had found out who was running the thing. He tested me by challenging me to guess the man's name. I thought hard for a while and was on the point of naming Arthur Sulzberger, of the New York times, when suddenly the right name sprang to my lips. 'John J. McCloy', I exclaimed. 'Chairman of the Board of the Chase Manhattan Bank; once a partner at Cadwalader, Wickersham and Taft, and also in Cravath, de Gersdorff, Swaine and Wood, as well as, of course, Milbank, Tweed, Hope, Hadley and McCloy; former United States High Commissioner in Germany; former President of the World Bank; liberal Republican; chairman of the Ford Foundation and chairman, my God, how could I have hesitated, of the Council on Foreign Relations; Episcopalian.' "That's the one," Galbraith said." Richard Rovere, 1961. The American Scholar In a recent policy statement appearing in EIR, founding editor Lyndon LaRouche once again demonstrated that there exists with in the United States an "Establishment" that has been running the nation since at least the end of World War II. The British-American-Canadian establishment has been governing this country and much of the world on behalf of a financial oligarchy, based largely in London with subsidiaries in Europe and in the United States. This establishment, an assortment of policy gurus, Wall Street bankers and lawyers, and media moguls arose during the British spawning of American political-military-intelligence operations during World War II. The key time period was 1938-46 and out of this wartime crucible was created the current policy establishment. John J. McCloy was a typical product of this process. While McCloy wielded immense power within this configuration, this report will show that at all times he served his masters inside the BAC grouping, especially the Anglo-American financial aristocracy. In the case of McCloy, he was the deployed operative of the Warburg and later Rockefeller families and periodically a consortium including other British connected forces such as the Morgan banks. McCloy initiated policies only with their blessing, and many times at their request. This grouping was at war inside the United States against an "American System" tendency typified by the policy outlook of the New Deal and President Franklin Roosevelt. During World War II McCloy was Assistant Secretary of War and oversaw the massive defense industrial mobilization that rebuilt our nation and created the manufacturing colossus that won the war. Ironically, in the aftermath of the war, it was McCloy and his accomplices in the Wall Street banks that presided over the post-war industrial shutdown and the dismantling of the New Deal programs. McCloy oversaw the sabotage of the World Bank and sections of the Bretton Woods System. Exemplary of this dynamic I will detail three of McCloy's most nefarious actions: The witting destruction of President Roosevelt's post-war Bretton Woods policy from his position at the World Bank; the launching of 'detente' as a British inspired policy of destruction of the sovereignty of nation states, most emphatically that of the US; and the coverup of the assassination of President John Kennedy, from whose consequences the nation has yet to recover. A Servant of the Oligarchy—Wall Street Lawyer McCloy's initiation into establishment politics came in 1915 when, as a student at Amherst College, he was recruited to attend the Plattsburg, New York military training camps set up by Wall Street lawyer Grenville Clark to rally support for US entry into World War I on the British side. The United States had stubbornly refused to enter the war as an ally of our then-arch enemy England, and the purpose of the camps was to brainwash America's elite to join the war on the side of Britain. Clark was a 32 year old lawyer, heir to a railroad and banking fortune and senior partner in the firm Root, Clark, Buckner and Howland. He launched the training camps at the request of British agent and former President Teddy Roosevelt, and with the financial backing of Wall Street operative Bernard Baruch. Each day for two summers participants were trained in military skills by former 'Rough Rider' General Leonard Wood, and then whipped up at night by pro-British tirades from speakers including TR himself. An entire generation of leaders was recruited to His Majesty's cause through this process, including Henry Stimson, TR's sons, future Ambassador to England David Bruce, Elihu Root Jr., Willard Straight (founder of The New Republic), Mayor Mitchell of New York and others. It was out of this seminal association that the 'Stimsonian' political tradition was born. The key phrase was 'military preparedness', a code word for pro-British geopolitical dogma. America's elite were being groomed for US intervention into W.W.I to bail out their 'British cousins'. Following his brief service in the war, McCloy went the usual route through Harvard Law and eventually landed on Wall Street. After apprenticeship at the firm of Cadwalader, Wickersham and Taft, which included the brother of the former President and his Attorney General (Taft and Wickersham), McCloy began his long time association with the Wall Street law firm of Cravath, Henderson and De Gersdorff. The heavyweight in the firm, Paul Cravath, was second only to JP Morgan himself as a feared policy maker on Wall Street. Cravath, Henderson, and De Gersdorff was legal counsel to Westinghouse, RCA, and various railroads, but more importantly was the in-house counsel to the merchant banking of Kuhn, Loeb. Kuhn. Loeb was the second most powerful investment banking firm on Wall Street, after J.P. Morgan It was also a nest of anti-American pro-British traitors. In the 1920's it was run by the Schiff and Warburg intermarried families, the predominantly Jewish "Our Crowd" grouping, whose dominant partners were the Schiffs and the Warburgs.. The Schiffs and the Warburgs were both directly allied to the British Crown, the Schiffs through their association with shipping magnate Sir Ernst Cassel, confidante of King Edward VII and the Warburgs through their long alliance with the Rothschild family. Among the partners, Jacob Schiff was a controller of President Theodore Roosevelt, had engineered the reorganization of the Union Pacific Railroad, and elevated the career of Robber Baron E.H. Harriman. He was also a co-equal of J.P. Morgan and worked with Paul Cravath to dominate Wall Street. Senior Partner Paul Warburg was the architect of the treasonous Federal Reserve Act of 1913, an intimate friend of Woodrow Wilson controller Col. Edward House, and served on the Board of Directors of the Fed. Other partners included Lewis Strauss, Herbert Hoover's secretary during W.W.I, and Sir William Wiseman, who ran British Intelligence operations in the United States during W.W.I. Wiseman had been sent to the United States for the purpose of bringing the US into the war on the British side, and working through Col. House manipulated the US into the war. He remained in the States after the war for the next forty or more years and co-ordinated British operations here from his perch at Kuhn Loeb. In the 1940's he collaborated closely with Sir William Stephenson to create British intelligence operations at the outbreak of WWII, and helped create the OSS in the British image. As for Cravath, he was a long time friend of Britain's Lord Beaverbrook, media mogul and Minister of Information in the W.W.I period. When the New York Council on Foreign Relations was founded in 1921 as a sister organization to the British Round Table, Cravath served as vice-president and on the Board of Directors. He also funded the Council' magazine Foreign Affairs. He remained a close confidante to JP Morgan and both could be seen striding down Nassau Street, complete with top hats and heavy coats plotting the swindles that would bring ruin on the world in the post war years. These were the circles that McCloy was brought into from his position at Cravath, Swaine. However it was not his first brush with this crowd. His mother, of Philadelphia working class stock, was a hairdresser to the Warburg family in their summer vacationing in Maine, and McCloy became a tutor to the Rockefeller family for a brief stint. Once ensconced at the firm, McCloy became tightly integrated into the social circles of Morgan and Warburg dominated Wall Street. His friends included the son of Morgan partner Harry Davison, Felix Warburg's son Freddie Warburg, Averell Harriman, Robert Lovett, son of the scion of the Union Pacific Railroad, who would later become a banker at Brown Brothers, and Benjamin Buttenweiser of Kuhn, Loeb. Following W.W.I, much of Kuhn, Loeb's business was syndicating post war reconstruction loans in Europe and McCloy represented Cravath, Swaine these trans-Atlantic operations. He made several trips to Europe including the negotiations that led to the implementation of the Dawes Plan in 1927-28. However this was not mere banking. In order to secure collection of their loans in an increasingly volatile atmosphere, Morgan, Warburg, Cravath and their British counterparts including Montague Norman imposed fascist governments on Italy and Germany. These circles collaborated with their British cohorts across the ocean in putting in both the Mussolini and Hitler governments. It is well known that Morgan bank chief Thomas Lamont personally guided the dictatorship of Benito Mussolini for over fifteen years and that Harriman-linked forces in cahoots with Bank of England chief Montague Norman put Adolph Hitler into power over the objections of the German population. Once in power Hitler was maintained there by among others the Warburg family who acted inside and outside of Germany to squelch all opposition from among the Jewish population. During the late 1920s McCloy headed up the Cravath, Swaine law firm in Milan. Cravath, Swaine were key advisors to Mussolini, helping to 'stabilize' his government. While pursuing his investigation into the Black Tom bombing, McCloy sat in Adolph Hitler's box in the 1936 Olympics. Thus, by the late 1930's McCloy had become a deployable asset of the most powerful banking and political families of the emerging British-American-Canadian cabal. As a full partner in Cravath, Swaine, De Gersdorff, McCloy cut his teeth defending the most unscrupulous practices of Wall Street run amok in the 1920s and '30s. He defended the 'Our Crowd' and 'Morgan' establishments against the label of 'economic royalist' and like his patrons became an opponent of President Franklin Roosevelt. He opposed the New Deal at every turn, counterposing his own brand of hard money and fiscal conservatism. McCloy collaborated with leaders of both parties to try and slow down the Roosevelt New Deal. 1938-1945 The World War II Anglo-American alliance Prior to the outbreak of the Second World War, McCloy ally and mentor Grenville Clark engineered the placing of Wall Street's Henry Stimson into the War Department. Stimson then appointed both Robert Lovett and John J. McCloy to be assistant secretaries, dubbed by Stimson the 'Imps of Satan'. During the war McCloy wielded enormous power. Under the positive influence of Franklin Roosevelt, McCloy ran the war production mobilization and various of the invasion plans. It was McCloy who helped crank up the massive United States industrial output to ensure the war was won. As well he joined in the creation of the war time predecessor of the CIA, the Office of Strategic Services, or OSS. There was no question that the US needed an intelligence capability, but the British used the opportunity to penetrate and control US thinking through their increasing subversion of OSS. Otherwise, McCloy's war time record was checkered. He oversaw the Japanese internment and also refused to eradicate the Nazi concentration camps, of whose existence he had adequate intelligence. He also defended General Patton against charges of cruelty to a lower ranking soldier and had Patton reinstated to his command. As for the issue of dropping nuclear weapons against Japan, McCloy concurred with MacArthur and opposed their use, but was overruled. Yet for all this, he had been incorporated into the upper echelons of all policymaking and at war's end was an agent of Stimson and the Wall Street bankers. Now finished with the war, they moved quickly to demobilize the military and the economy and return to the austerity policy of the prewar depression. When McCloy left the War Department in 1945, after playing a crucial role in running the war with Robert Lovett, the other 'imp of Satan', he received a medal from Stimson. Standing in Stimson's office, he noticed the portrait of Root on Stimson's wall and noted to himself," I felt a direct current running from Root through Stimson to me. They were the giants." (p. 265). After the War ended, McCloy left the Cravath law firm and was picked up by the Rockefeller family and made a partner in the family law firm, Milbank, Tweed, Hope and Hadley. He had always been a fawning admirer of the Rockefellers, and they in turn needed a Wall Street lawyer who could handle the pending divestiture case of Standard Oil. It was a perfect match. However, after just six months at Milbank, and a run in with the McCarthyist probes of the Truman administration, where McCloy, Dean Acheson and David Lillienthal were on the receiving end of red-baiting attacks, Mccloy was offered the job of heading the World Bank McCloy The World Bank, and the Destruction of Roosevelt's Post War Order In 1946, only five months into his term of World Bank President, Eugene Meyer , the first president , suddenly quit. The Bank for Reconstruction and Development and its twin pillar the International Monetary Fund had been created at Bretton Woods in 1944 as the mainstays of the Roosevelt post-war reconstruction vision. As has been reported elsewhere, these institutions were to form the guts of an American Century dominated post war world. Their purpose was to guide an aching and starving world out of chaos and into a technology vectored industrial recovery, along the lines of traditional "American System" economic growth. The idea was to take Roosevelt-styled New Deal and War time economics and apply them to economic rebuilding on a global scale. The IMF would handle monetary policy and the World Bank would supervise global development, as its name implied. Yet once Roosevelt died, the vision began to be eaten away. The World Bank's first President Eugene Meyer fought the board of the Bank tooth and nail on the direction of bank lending policies. He, of course, stuck to the Wall Street tight money approach, while the United States Executive Director Emilio "Pete" Collado opposed him. Collado had spent his entire adult life in the Roosevelt Administration and was a collaborator of Harry Dexter White at the Treasury Department and Alger Hiss at the State Department. The World Bank Board, which according to the charter, had enormous influence on policy, voted to issue as many loans as possible to war torn nations following the end of f Meyer refused them at every turn. Finally Meyer resigned in December, 1946. Wall Street was aghast at the resignation, and the Financial Times 'voiced fears that the World Bank might now become a ' universal soup kitchen' and its monies 'used for financing vote-catching reconstruction schemes propounded by the starry-eyed politicians of many nations.' (p. 283) As Meyer once approached McCloy to be chief counsel for the Bank, a post McCloy turned down, so Collado out of desperation to propitiate Wall Street, turned to McCloy to head the bank. Initially McCloy was hesitant, but he consulted with his controllers on Wall Street who convinced him otherwise. The Morgan Bank crowd, the foremost British operatives in the United States endorsed McCloy's nomination whole heartedly, seeing it as and opportunity to seize control of the Bank from the hands of the New Dealers. Harold Stanley, president of Morgan Stanley and Co.; Baxter Jackson, president Chemical Bank; Randolph Burgess, vice-chairman of National city Bank; and George Whitney, president of JP Morgan and Co. all supported McCloy. Whitney thought that Mccloy was ' the ideal man to head the Bank, if the Bank were to be run on a sensible and restrained basis.' (p. 285) Once McCloy took over running the bank, Morgan input through Russell Leffingwell would be continuous. However, McCloy still vacillated on taking over the World Bank because it meant a drop in pay. He was not as wealthy as many of his establishment controllers, but to calm his worries, his close friend and Middleburg, Va horse farm buddy, Freddie Warburg told him "Jack, you'll never have to worry about what to do after the World Bank. There will always be a place for you and people who will want you." (p. 284) With this endorsement, McCloy set about the do the necessary job for Wall Street and the BAC, viz. dismantle the World Bank. The time period December, 1946-March, 1947 represented the equivalent of a cold coup within the World Bank/IMF universe. In February, 1947, Mccloy took the job as head of the World Bank and then proceeded to replace Collado with Eugene Black, vice-president of Chase National Bank and one of Wall Street's best known bond salesmen. Another Wall Street banker Robert Garner would be the Bank's vice-president, and furthermore Mccloy would be given a hand in all loan decisions, violating the spirit of the World Ban k charter. One month later, in April, 1947, Harry Dexter White was forced out as head of the IMF, and less than a year later he was hauled before a congressional committee as an accused spy for the Soviet Union. Several days after testifying, White died of a heart attack. McCloy then moved to organize the funding of the World Bank along 'traditional, tight money' Wall Street lines and snuff out any hope for economic recovery. The Bank had pledged assets of $8billion but only twenty percent would be collected by summer. McCloy planned to finance the Bank by regular borrowings on Wall Street, and would meet their standards for any loan obligations. In the back of his mind was both the tight-fisted ethic and the memory of massive losses suffered by the private banks in the inter-war years. McCloy proposed that the Bank not loan more than the sum of US and Canadian subscriptions to the Bank, and that total lending would be less than $1billion per year. McCloy spoke at a meeting of the Chartered Life Underwriters in April and said the bank would operate 'in a goldfish bowl', that its securities would be listed on the New York Stock Exchange and comply with all SEC regulations. Political loans of any kind, he said 'were definitely excluded'. This would of course turn out to be another lie; World Bank loans would be totally political. However the tone was set. How the World Bank Wrecked the Vision of Reconstruction In April, 1947, France, Chile and Poland approached the Bank for loans. Only France was initially accepted, and only because of the recent election of Communist Party candidates into the government. The French wanted at least $500 million for general purposes, i.e. food and fuel imports. Though McCloy did not approve of this kind of non-specific loan he agreed to lend $250million, but on certain conditions: remove all communists from the government, allow World Bank officials to monitor disbursement of the loan, pledged repayment of the loan over all other priorities, ensure that the government would take steps to balance its budget, increase taxes, and cut consumption of luxury imports. McCloy was the original IMF banker so despised today. For good measure, the French would have to wait for the loan until McCloy floated bonds on Wall Street to pay for it. McCloy's actions incensed everyone. The French were furious with McCloy's tight-fisted approach, and even the British Labor Party crowd, which needed immense amounts of money to rebuild England after the war were outraged. All summer the British media lambasted McCloy for the miserable performance of the Bank. McCloy responded by saying his hands were tied by the amount of money that could be raised on the private capital markets, and that it might be years before he could hope to lend billions of dollars. In discussions with George Marshall, McCloy suggested that the American taxpayer foot the bill for European reconstruction. So was necessitated the Marshall Plan. While Marshall Plan aid was being gathered, though, McCloy even refused to send temporary food aid to alleviate the crisis. "Europe itself must make the major contribution to the solution of all these problems…Outside assistance is vital, but it represents a small percentage of the total effort…the Bank is not in the stop-gap business."(p. 293) During the remainder of 1947 the Bank managed to issue three more puny loans: $195 million to Netherlands, $40 million to Denmark, and $12 million to Luxembourg. This would be the total issued under McCloy to Europe. Undoubtedly much of this money was merely to compensate the Dutch imperialists for the loss of their overseas empires , in Viet Nam and Indonesia! As for loans to Eastern Europe, the World Bank became a tool of Churchill's new Cold War against the East. Bank policy explicitly violated the spirit of Bretton woods, at which the Soviets were signatories. The Russians had increased their subscription from $900million to $1.2billion in 1946. However, Winston Churchill intervened with McCloy to kill all loans to the East. Poland had applied for $600 million for coal mining and export equipment, and McCloy whittle down the proposal in ratchets to $250million, $125million, $25million, with excruciating 'conditionalities' attached. The loan was eventually rejected by the stunned Poles. Thus McCloy, the tool of the BAC establishment, killed any possibility for post war collaboration based on economic development and instead helped point the world in the direction of confrontation and British geopolitics. With regard to the developing sector and Ibero-America in particular, McCloy took the counsel of Morgan banker Russell Leffingwell. When asked by McCloy whether the World Bank should lend to the region Leffingwell said, "Except for the Argentine, I do not think of any Central of South American country that hasn't got a contemptible, discreditable record of default to American investors." (Chernow, House of Morgan, p. 487.) While approving small loans to several nations south of the US border, the best example of McCloy's Shylock -style approach is the treatment meted out to Chile. Despite all sorts of public pronouncements on the dire straits facing Chile and other nations, McCloy managed to eke out only $16million to Chile, and this only after he forced the Chileans to repay all $170million of their previously defaulted debt. In opposition to McCloy's 'generosity' other factions in the US created the Marshall Plan, the Point Four aid program for Ibero-America, and an expanded Eximbank, to stimulate US exports. By the end of 1947, the Eximbank had extended $1.1 billion in credit to Latin America alone, and Congress appropriated another $500 million for early 1948. McCloy was continually attacking the lending policies of his opposition institutions, but his criminal sabotage of the Bretton Woods framework had made necessary their creation. 'Chairman of the Establishment': The introduction of Detente Following his presidency of the World Bank, McCloy served as High Commissioner for Germany, overseeing the postwar reconstruction of Germany and the deliberate splitting of Germany into two nations. McCloy also played a critical role in creating the US Central Intelligence Agency out of the wartime OSS, and kept a hand in all US intelligence operations from his position as chairman of the Council on Foreign Relations, later head of the Ford Foundation (which he used to fund numerous covert operations), and as Chairman of Chase Manhattan during most of the decade. Throughout the 1950's McCloy deployed his substantial resources in many directions. One critical effort was the shift of US strategic policy away from one of American Century collaboration with other nation states, including Russia, to a British-style policy of world government, under the title 'detente'. As part of this shift, McCloy intervened to transform John Foster Dulles' limited idea of Mutual and Assured Destruction (MAD) and alter it with the lunatic doctrine of Flexible Response. He did not junk MAD, but increased the options leading to the threshold of total nuclear war and introduced the possibility of diplomacy-directed strategic confrontations. This shift occurred under the aegis of McCloy's control of the Council on Foreign Relations. In the 1950's McCloy set up the first CFR study groups. The first study project was on US-Soviet affairs. It was financed by the Ford Foundation, run by McCloy, and included McCloy, Dean Rusk, McGeorge Bundy, Walt Rostow, and six full time staff . The CIA, DOD, and State Department also participated. By 1956 McCloy had six study groups and five discussion groups going simultaneously. He sought to alter the direction of US foreign policy away from Roosevelt's emphasis on the sovereign nation state and toward the British direction of world government. The key group was the 1954 Nuclear Weapons and Foreign Policy study. After a year of wrangling, the groups' chairman Gordon Dean brought in Henry Kissinger to run the study group. While Kissinger was a protege of Harvard professor William Yandell Elliott, he had also been picked up by McCloy, who engineered Ford Foundation funding for Kissinger's publication "Confluence" , an intelligence operation targetting intellectuals in eastern and western Europe. Letters from McGeorge Bundy at Harvard, among others, helped secure Kissinger's appointment. The study group was composed of CFR heavyweights. It ultimately released the book Nuclear Weapons and Foreign Policy which launched the insane career of Henry Kissinger. The book reflected McCloy's thinking that Dulles's idea of massive retaliation limited all US responses. Instead, Kissinger introduced the idea of limited war, including limited nuclear war and his own British variety of diplomacy. The US must be prepared to fight limited wars, including nuclear wars, and Europe was to be seen as a critical trip wire. Rather than simple Mutual and Assured Destruction (MAD), we lurched into the era of step by step escalation, and war run by the diplomats not the generals. Traditional US military doctrine, typified by the ideas of Sherman, Grant and MacArthur were junked in favor of a modernized cabinet warfare. In March, 1957, McCloy participated in the Gaither Commission, chaired by then Chairman of the Ford Foundation, Rowan Gaither, who would be replaced by McCloy as Ford Foundation chairman that year. The Gaither Commission, bankrolled by the Rockefellers, studied US military preparedness, especially relating to nuclear war. It advocated a large increase in military spending and the construction of bomb shelters, feeding the nuclear war hysteria of the time. The critical insight of Gaither was the identification of a 'window of opportunity' to appear in the early 1960's when the US would have achieved massive superiority over the Soviets in military hardware, and could proceed to directly to implementing a US-Britain controlled world government.. In anticipation of this window, people involved in Gaither began arguing for both arms buildups and arms control!! This period represented the final uneasy truce between the traditional military and republican forces, who favored a strong military to defend the nation state, versus the utopian, one world, Anglophiles like McCloy, Acheson, and others who favored ending the standoff between nation state and financial oligarchism , and moving to implement radical 'one-worldist' schemes, i.e. detente. The final years of the Eisenhower administration witnessed a complete takeover of the labile 'Ike' by the Wall Street crowd. This coincided with the massive push by Bertrand Russell, Cyrus Eaton, and the Pugwash crowd to seal a deal with the Soviets for 'détente' policies. McCloy, Robert Lovett, Bedell Smith, and others formed a 'kitchen cabinet' around Ike, and launched a strong move for Test Ban talks with the Russians, disarmament and other schemes. One of the key people setting the agenda was British Prime Minister Harold MacMillan, who oversaw a key White House meeting with the McCloy crowd to advise Ike how to move on negotiations with the Russians. In 1960 the stage was set for a May summit between the US and the Soviet Union to sign a host of arms control deals and signal the beginning of detente, but it was aborted by the Russian military shooting down Gary Powers U-2 spy plane, thus temporarily derailing the policy shift. JFK, McCloy, and Arms Control The election of John Kennedy in 1961 briefly stymied McCloy's march toward world government. Kennedy was not a member of the CFR crowd. His administration was a compromise between New Deal FDR democrats like John Kenneth Galbraith, Walter Heller, and Ted Sorenson and Establishment insiders Douglas Dillon, Dean Rusk, Robert MacNamara, and McCloy. McCloy turned down an offer to be Secretary of the Treasury in order to head up the Arms Control and Disarmament office. During 1961 McCloy sought to force through an entire agenda of arms control/detente initiatives. Based on the assessment of the Gaither Commission, the US had a strategic superiority over the Soviets in weaponry of all types and McCloy seized upon the opportunity to implement his radical new policy. McCloy began serious negotiations with the Soviet Union on the issue of arms control and began Test Ban Treaty talks with them in Geneva in the spring. McCloy brought Arthur Dean, part of his original CFR study group on US-Soviet affairs, to help manage the talks. McCloy was pushing for total disarmament and was confident that the Soviets would be trustworthy negotiating partners for his utopian plan. He proposed ceding the right to maintain a national army to an international body. He wanted to create an international body that could enforce peace, such as the World Court. He wanted to use the 'rule of law' to create a new international order. This brought him into direct conflict with Arthur Schlesinger who complained that McCloy was trying to work toward some vague 'concept of the rule of law'. However McCloy worked with his close friend and confidant Adlai Stevenson, the US Ambassador to the UN, to get the outline of this policy adopted by the Kennedy Administration. In June, 1961, Kennedy and Kruschev had their infamous Vienna mini-summit. While Kruschev tried to bully the President on Berlin and other issues, he put forward an open policy on disarmament, linking it to bans on testing nuclear devices. The door to detente was open. McCloy then began his talks with Soviet disarmament negotiator Valerin Zorin at the State Department in June of 1961, but the imposition of the Berlin Wall crisis stopped the momentum towards disarmament. The crisis around Berlin had been building since the end of WWII. While the perceptible issue was the continuous stream of emigres leaving East Berlin for the west, the larger issues included: the reunification of Germany, the division of Europe and the configuration of the world. As the crisis increased over the summer of 1961, it came to a head in August. The Soviet government began erecting what became known as the Berlin Wall, while the President was on vacation. While Acheson and some others mouthed some opposition, there was in reality no opposition in the West. McCloy, Harriman and their cohorts supported the Wall as the divider of Germany and East vs. West. This was approval of the historic British dogma of geopolitics—the division of the world between Western Europe and Asia, with the division being through Germany, precisely as specified in Halford Mackinder's doctrines. "For McCloy and his generation, who had twice fought a world war against Germany, this was not the worst outcome(viz. Two Germanys). George Kennan and Chip Bohlen certainly felt this way and advised the president not to overreact to the building of the wall. As for McCloy, he could not publicly say such things without touching a raw nerve among his West German friends. But that Germany was best left divided, even if half of it had to live under communism, was the unspoken truth. And there was no point in going to war over the wall, which, after all, had become a necessity if Germany was to remain divided. "Averell Harriman said it bluntly to Kennedy in a secret letter written to the president a few weeks after the wall went up. 'Since Potsdam, I have been satisfied that Germany would be divided for a long time…' …Implicit in both McCloy's view of German separation and that of Harriman was the commitment to the postwar structure of peace that required the division of Germany between East and West." (3) p. 512. With the construction of the wall, the world was now partitioned between east and west, with the supernational governing bodies associated with the United Nations increasingly running the planet. The power of the nation state would be further eroded with the fast approaching crises leading up to the Cuban Missile Crisis. In September, 1961 McCloy lobbied for a comprehensive disarmament policy ,and in this context, for passage of legislation to create an Arms Control and Disarmament Agency. McCloy personally armtwisted numbers of key congressmen on the ACDA legislation. The two most prominent were long time friends, William Fulbright and Senate Banking chair Willis Robertson, an ardent opponent of the bill. Robertson, father of kook-televangelist Pat Robertson, was a fishing buddy of McCloy's going back several decades. McCloy's lobbying merely proved that both 'the Left' and 'the so-called Right' were both in the hip pocket of the Anglo-American Establishment when push and shove came together. McCloy interspersed his lobbying with private negotiations with Valerin Zorin in Moscow and New York. His intent was to produce an agreement on general disarmament principles, but there was still intense opposition to this madness by the nationalist elements remaining in both countries. Both governments and their respective armies were continually violating various test ban agreements indicating their enmity toward McCloy's scheme of general disarmament. McCloy was trying to pull off a virtual utopian coup. Enter Grenville Clark During the negotiations with Zorin, McCloy drew heavily and liberally from the writings of his long time associate from the Plattsburgh Training Camps, Grenville Clark. writings to craft a general disarmament treaty that changed the direction of history. In 1961, Clark was 79 years old. The son of a prominent banker of the banking house of Clark, Dodge, and Co., his family had been endowing Harvard University since 1672, and he, like his father was a Harvard grad. While still at Harvard, Grenville Clark was befriended by then-Vice President Teddy Roosevelt, which would lead to a long association, and he also became friends with future Justice Felix Frankfurter and Elihu Root, Jr., son of the incumbent Secretary of War. After Harvard, Clark founded a law practice with Root's son and others that would become a prominent Wall Street firm. In 1915-16, Clark initiated the Plattsburgh military training camps at the direction of Teddy Roosevelt. These camps recruited 'the best and the brightest' Wall Street, Eastern Establishment sons, including McCloy. Clark remained a life-long friend of McCloy. Both practiced law on Wall Street; both entered into politics, McCloy as a Republican and Clark as a Democrat. A long time friend of Franklin Roosevelt, Clark founded the National Economy League in 1932 upon the election of the president. While Admiral Richard Byrd was honorary chairman, the leaders were TR's son Archibald, former President Calvin Coolidge , Lewis Douglas (McCloy's brother in law and long time associate) and Clark. Like today's New Democrats, the League led a mobilization in 1933 to force the President to slash the budget and adopt every austerity style policy imaginable. The result was a disaster, but it was this tight fisted 'Wall Street-style' austerity that animated both Clark and McCloy's entire economic approach. While he was attempting to destroy Roosevelt in 1933, Clark also intervened on behalf of the treacherous Bertrand Russell in New York at the same time. When Russell, the apostle of libertinism, was booted out of CCNY, none other than Clark rushed to his defense, providing him legal counsel and arguing on his behalf at Harvard. As a lawyer in the War Department at the end of the thirties, Clark led the move that brought Clark allly Henry Stimson into the department and paved the way for McCloy, Robert Lovett and other Wall Street types to run the department during WWII. During the war years this Wall Street gang was on their best behavior, following the dictates of FDR. Following the war, Stimson commissioned Clark to "go home and try to figure out the way to stop the next war"(5)Dunne, p141. Clark, already by then a convert to globalist, one-world schemes, worked feverishly behind the scenes in the late forties and early fifties towards creating such an institution. In the climate of hysteria created by the Atomic bombing in 1945 and the takeover by the British of the United Nations in the following years, Clark convened two meetings in 1946 that led to the founding of the World Federalists. Among the attendees were former Supreme Court Justice Owen Roberts, former governor of New Hampshire Robert Bass, Thomas Finletter, future Secretary of the Air Force, future Yale President Kingman Brewster, and future US Senator Alan Cranston, and future CIA honcho Cord Meyer. Despite the fact that all the participants did not sign the final document, Clark rammed through a call to go beyond the strictures of the United Nations. "The conference proposes: That a World Federal Government be created with closely defined and limited powers adequate to prevent war and strengthen the freedoms that are the inalienable Rights of Man."(6) Dunne, p. 158. Clark kept agitating for the World Federalist view throughout the 1950's from his position in the World Federalist grouping and amongst his Boston Brahmin cohorts. Clark sat on the Board of the Harvard Corporation but hobnobbed among the inner circle of Establishment policy makers including Felix Frankfurter, Wild Bill Donovan, Averell Harriman, James Conant , and others. In 1958 Clark collaborated with Harvard Law professor Louis Sohn in the publication of a critical book entitled "World Peace Through World Law". The book was heavily promoted by the Ford Foundation and the NY Council on Foreign Relations through direct intervention of John McCloy, who saw to it that the book was printed and widely distributed.. Clark's book was a blueprint for total reform of the United Nations from a World Federalist perspective. The book launched a frontal assault on the very existence of nation states. It proposed to subordinate all critical powers to a world governing body that would appropriate all military policing powers to itself. It would eliminate the existence of most weaponry i.e. total and complete disarmament, have complete legal jurisdiction to impose itself on violating nations, have its own large scale police force and legal system, and a revamped governing body. There would be an executive grouping, but there would be no veto power among the leading nations, thereby abrogating all semblance of national government. The brunt of the book is the call for global disarmament , global policing and global courts. In the updated introduction issued in 1960, Clark acknowledged the role of the British and Soviet governments in promoting this scheme and stated, "thus in the first discussions of the Russian and British proposals, it became apparent that, apart from an effective inspection system to supervise the disarmament process from the outset, it will be indispensable simultaneously to establish an adequate world police force in order that, after complete disarmament has been accomplished, the means will exist to deter or apprehend violators of the world law forbidding any national armaments and prohibiting violence or the threat of it between nations. It will then become equally clear that along with the prohibition of violence or the threat of it as the means of dealing with international disputes, it will be essential to establish alternative peaceful means to deal with all disputes between nations in the shape of a world judicial and conciliation system…. "the necessity will also be seen for a world legislature with carefully limited yet adequate powers to vote the annual budgets of the world peace authority, to enact appropriate penalties for violation of the world law and other essential regulations concerning disarmament and the maintenance of peace, and to keep a watchful eye on the other organs and agencies of the peace authority. In addition it will be necessary to constitute an effective world executive, free from any crippling veto, in order to direct and control the world inspection service and the world police force and to exercise other essential executive functions. "Finally, it will follow as surely as day follows night that an effective world revenue system must be adopted, since there would otherwise be no reliable means to provide the large sums required for the maintenance of the inspection service, the world police force, the judicial system and other necessary world institutions." (7) World Peace Through World Law, p. xii. In 1961 John J. McCloy, intimate friend of Clark, borrowed liberally from this entire book in drafting the American position on disarmament. McCloy insisted that disarmament take place totally and in stages and be supervised by a global police force. The Soviets concurred and in September the two sides drafted a 'Joint Statement of Agreed Principles for Disarmament Negotiations' that was adopted by the UN General Assembly and became known as the McCloy-Zorin Agreed Principles. "Its language was both utopian and specific: 'The programme for general and complete disarmament shall ensure that States will have at their disposal only those nonnuclear armaments, forces, facilities and establishments as are agreed to be necessary to maintain internal order and protect the personal security of citizens; and that States shall support and provide agreed manpower for a United Nations peace force. ' …To implement the various stages of disarmament, inspectors from an International Disarmament Organization would 'be assured unrestricted access without veto to all places as necessary for the purpose of effective verification.'" (8)McCloy, p. 515. Importantly, there were other sections that McCloy had included in his original draft in terms of specifics of weapons to be eliminated, etc., and on this he clashed openly with the White House and the Military. Both Kennedy and even McGeorge Bundy thought the proposal was too radical. However, in the eyes of the Soviets, and especially Khruschev, McCloy had become a crucial channel into US policy making circles. McCloy soon complemented his insider role by befriending Moscow's new ambassador to Washington, Anatoly Dobrynin, who would become a McCloy confidante on all crucial issues, "from the collapse of the stock market in 1962 to why the United States was supporting the creation of the Common Market."(9)McCloy, p. 516. McCloy left government service formally in October, 1961, but became chairman of the newly created President's Advisory Committee on Disarmament, as a way to steer the entire détente/disarmament campaign. Also by this time, McCloy was at the apex of his power, the putative 'chairman of the establishment' in Galbraith's words, and exerting immense power globally as a spokesman for the British-American-Canadian Establishment. The Cuban Missile Crisis All of the preconditions had thus been met for the Cuban Missile Crisis. Both Acheson and McCloy were enraged when briefed of the existence of Soviet missiles on Cuba. Both probably thought the Soviets were reneging on the deal, and that the recalcitrant nationalist elements had to be dealt with. McCloy immediately recommended an air strike to take out the missiles and Dean Acheson concurred. Robert F. Kennedy intervened to steer the world away from a likely escalation toward nuclear war with his timely proposal of the blockade. This ultimately was also promoted by Robert MacNamara and others and carried the day. Though not in the cabinet, McCloy and Acheson were both brought in to the top secret Executive Committee meetings. (EXCOM) The day to day movement of the Cuban Missile Crisis is not our concern here. The world was brought right to the brink of thermonuclear war as a byproduct of this process. The crisis had several key components: The psychological warfare waged against the US and world populations initiated the horrendous process of 'shock effects' that would terrorize the population and relieve all inhibitions to cultural brainwashing. The 'crisis management' initiated between the Soviet Union and the US by people like Bertrand Russell, who actively intervened in the crisis, was used to cement the 'détente' relationship between the two superpowers, mediated ultimately by the 'world government' establishment The military and nationalist establishments of both countries were demoted in their relative power and rendered subservient to the world government apparatus. The preconditions had thus been laid for the future assassination of President Kennedy as a nationalistic impediment to the predilections of McCloy, Harriman and company. Finally, the previous 500 year standoff between nation state elements and world government/financier elements could now be ended, with the financier (i.e. British Establishment and their American counterparts) elements now moving toward a policy of de-industrialization and eradication of nation-state impulses. Once the immediate crisis had abated, McCloy was deployed to the UN to head the US negotiating team to 'resolve' the key issues. For the next several months McCloy and his Soviet counterpart Vasily Kuznetsov smoothed out various details, much to the chagrin of President Kennedy, as McCloy ushered in the new world-government configuration. The sovereignty of the United States was continuously eroded, though Kennedy fought his own negotiator every step of the way. McCloy's conduct of the negotiations earned him the continuous wrath of President Kennedy. McCloy was willing to compromise on most terms of the negotiations. For example, on the issue of verifiability, Kennedy opposed McCloy's 'gentlemen's agreements' on launch pads, and Kennedy instructed his negotiators to "'insist on both on site inspection and the removal of the IL280's(bombers stationed in Cuba). Furthermore, said Kennedy, McCloy was to tell Kuznetsov that no Soviet military base of any kind was to remain in Cuba.'"(8)p. 534. McCloy wanted to wrap up the Cuban crisis and move on to "broader arms -control measures and such specific topics as the current Chinese-Indian war, which he thought was the kind of regional conflict that might get out of hand. Kennedy was disinclined to open the discussions up to such far-flung issues and felt he repeatedly had to instruct McCloy and (Adlai) Stevenson (UN Ambassador and long time McCloy personal friend) not to talk to the Russians about these larger issues. The president was heard one day complaining that he was spending more time worrying about McCloy and Stevenson than he did about the Russians."(9) p.536 Detente was now a 'done deal', and McCloy set about eliminating other vestiges of nation state resistance to the new global order. He travelled into Europe regularly and singled out French President Charles DeGaulle, no friend of the British, for ongoing attack, and also expressed displeasure at the sympathetic behavior of German Chancellor Konrad Adenauer towards De Gaulle. The Kennedy Assassination President Kennedy and President DeGaulle were now expendable. As EIR has documented elsewhere, the British American Canadian assassination bureau known as Permindex failed in its numerous attempts to kill DeGaulle, but did succeed in the assassination of President Kennedy. There is no evidence linking McCloy to the assassination, but he was a prominent player on the Warren Commission, that orchestrated the cover-up, what McCloy termed "laying on the dust." (11)p. 549. Once again McCloy was deployed to do establishment dirty work, this time in collaboration with Allen Dulles, former CIA chief fired by Kennedy. McCloy was the most experienced spy sleuth within the Establishment outside of the immediate confines of the CIA. He had coordinated one of the largest investigations of espionage and counter-intelligence in US history, in the Black Tom case, that ran from the end of W.W.I to well into the 1930's. He had overseen the creation of the war time OSS from his position as Assistant Secretary of War, and had helped engineer the peace time conversion of the OSS into the CIA. In the 1950's he helped co-ordinate US intelligence activities both in and out of government, and his Ford Foundation became a money bags for legal and illicit intelligence ploys. He was at the very top of the 'secret government' of the post war period. McCloy and his ally Allen Dulles, himself no more a friend of JFK than was McCloy, co-ordinated the complete coverup of the Kennedy assassination from within the confines of the Warren Commission. McCloy acted ruthlessly throughout to quash any thought or investigation of a conspiracy. It was McCloy that brought in F. Lee Rankin to run the commission, and it was McCloy who orchestrated the suppression of all critical evidence. When Rankin reported to the commission that the Texas Attorney General had reported that Lee Harvey Oswald was a likely FBI agent, complete with agent number, and payroll reports, McCloy moved to quash this revelation through a series of duplicitous maneuvers. He ultimately conspired with J. Edgar Hoover to deny any truth to the allegation. As for the completely contradictory medical and coroner reports, that demonstrated the impossibility of any simple explanation for the number of shots and shooters, McCloy simply opted for one report, that of the Bethesda Navy doctors, that come the closest to proving the single shooter hoax. McCloy was unabashed in his level of deceit. A long time hunter and gun expert, he knew that the bolt action Italian rifle could not have been the murder weapon. He also knew that the reports of other shots fired from the grassy knoll were completely credible. On these and other counts he simply lied to keep the truth from being discovered. The lone assassin theory, propagated by Dulles from the first day of the Commission meetings, would be the centerpiece of all the lies. McCloy and Dulles ran roughshod over the Commission to ensure that this story stuck, and they also argued for the necessary corollary, viz. the so-called magic bullet idea. McCloy had to know that this fairy tale was fractured, but he rammed it down the throat of the nation. Three Senators doubted the veracity of the Commission findings, Cooper, Russell, and Boggs, and it was ultimately McCloy, with his lawyerly doubletalk and likely veiled threats that brought the recalcitrants around. McCloy drafted the language of the final draft in all of the thorny cases. He told the holdout Senators that there would be no minority report, and so on the 'single bullet' theory he wrote, "there was very persuasive evidence from the experts to indicate that the same bullet which pierced the President's throat also caused Governor Connally's wounds.' However, Connally's testimony and 'certain other factors have given rise to some difference of opinion as to this probability but there is no question in the mind of any member of the Commission that all the shots which caused the President's and Governor Connally's wounds were fired from the sixth floor of the Texas Book Depository.'"(12)p. 565. Thus McCloy took two separate and equally unproved 'facts'; viz. the single bullet and the lone assassin-cum- Lee Harvey Oswald and joined them together, with no proof! Only a Wall Street lawyer would do this. The piece de resistance was the drafting of the final conclusion, that Lee Harvey Oswald had acted alone. "The staff's initial draft stated that there had been 'no conspiracy'. Ford (Gerald) suggested it say that the Commission had found 'no evidence' of a conspiracy. McCloy's language was finally agreed upon: 'Because of the difficulty of proving a negative to a certainty the possibility of others being involved with either Oswald or Ruby cannot be rejected categorically, but if there is any such evidence it has been beyond the reach of all investigative agencies and resources of the United States and has not come to the attention of this Commission.' This was lawyers' language, and it laid 'the dust' on all the 'ugly rumors' of conspiracy without forcing the Commission to make a categorical denial, to 'prove a negative.'"(13) p. 565. Thus the thuggery of Wall Street legal lingo was used to ensure that the real killers of President Kennedy, no friend of John J. McCloy, got away, only furthering the hysteria and pessimism of a shocked nation. Viet nam and Beyond During the remainder of the 1960's McCloy escalated his attacks on nationalism in Europe and beyond. He continually single out the French and DeGaulle for his assaults. In the United States McCloy intervened on numerous fronts to weaken the power of this country and hasten the transition into the 'globalized' economy. In 1967 he brokered a complex deal between the US, the British, and the German governments concerning maintaining US troops in Germany. In negotiating the monetary side of this equation to keep US troops in Germany, albeit at a low cost for the Germans, Germany agreed to pay a low price but in return pledged to never convert their large dollar holdings into gold. This was the precursor of the August, 1971 decoupling of the dollar from the gold standard, and it was arranged by McCloy. On the issue of Viet Nam, McCloy best epitomized the British approach. He played both sides. A leading 'hawk' in the 1960's, he participated in numerous 'Wise Men' meetings with LBJ during the escalation of the war. He endorsed this insane adventure, likening it to the British engagement in the Boer War, ugly but necessary. However it was McCloy who, as head of the Ford Foundation, began slowly turning away from the war effort in the late '60s and created the climate where other Establishment luminaries, such as his hand-picked successor at the Ford Foundation, McGeorge Bundy, would become 'doves'. McCloy protege Bundy actively orchestrated the 'anti-war' effort from within the confines of McCloy's Ford Foundation. John J. McCloy was hardly a 'Wise Man". As a very powerful agent for the anglophile families such as the Morgans and the Cravaths, he rejected a post-war American System policy -- despite American power at the end of WWII -- and adopted an Anglo-American empire policy instead. McCloy represented the 'wise guys' running the British American Canadian establishment -- forces which have brought civilization to the brink of ruin. The question facing all Americans today is to discern where we went wrong after the victory of World War II. How was the optimistic vision of FDR's post-war vision turned into today's disaster of collapsing economies and destroyed governments. Are we doomed to repeat, as Shakespeare's Horatio warns at the end of Hamlet, their fatal errors and crash civilization onto the rocks? Or will we get up onto the stage of history, and reverse the course of this tragedy before the play has reached its point of no return. 12