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TITLE:[McCloy Report  ]                           1 of 12 Pages


                                              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

:"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
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
     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
        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

     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
     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
     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
     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
'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
     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

     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
     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'
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
     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.