D e e p B l a c k L i e s .co.uk

As we can see, the Central Intelligence Agency appeared able to break every known law up to and including committing assassinations, without fear of exposure or criminal charges. This was helped enormously by a well guarded memorandum of agreement between the CIA and the Justice Department that allowed the CIA to police itself and, in effect, enabled it to turn a blind eye to any and all criminal activities carried out on the part of its employees -- making the CIA above the law. Curiously, this memorandum was dated 18 February 1954 [i] -- and was the direct predecessor of the now infamous Memorandum of Understanding between the CIA and the Justice Department signed during the Reagan Administration. The later “MOU” has come to be known as a charter for cocaine cartel operators and other drug traffickers during the 1980s and amounts to a de facto “get out of jail” card. It is interesting to note that the original 1954 agreement occurred on Allen Dulles’s watch as DCI (Director of Central Intelligence). Allen Dulles was appointed as Director of Central Intelligence in 1953 at about the same time his brother, John Foster, was appointed Secretary of State. Between them the Dulles boys grabbed hold of US foreign policy and shaped it in their own corrupt image. We shall return to the dastardly duo shortly and focus on their long and close association with the Schroder banking group. Importantly, the Schroder and Wagg families agreed to combine their interests in the formation of the City- based merchant bank, J. Henry Schroder Wagg & Co. –in an agreement enacted in, yes, 1954.

Another odd ingredient forms part of this peculiar story. Wackenhut Corporation, the international security firm that is known to have very close connection to the US military and intelligence community, “had its beginnings in 1954,” according to early Wackenhut literature sent to prospective clients. [ii] Wackenhut has been linked to the Inslaw software debacle as well as the Danny Casolaro story. Casolaro, a freelance journalist, was “suicided” on the brink of learning vital information in regard to the so-called “Octopus.” “Octopus” is the term used to refer to a deeply secretive and loose association of military, intelligence and organised crime professionals who line their own pockets in the name of state secrecy. Wackenhut also has long been involved in arms development and trading – one of the two essential ingredients of the “guns ‘n dope” barter brigade that has littered the twentieth century with dozens of high intensity conflicts fuelled by the dope trade.

The year 1954 was of significance for another reason, too. US projections forecast that by 1954 the Soviet Union would also have a tenable thermonuclear capability and that US military power must grow sufficiently by then in order to “provide reasonable assurance that the free world could survive an initial surprise atomic attack of the weight which it is estimated the USSR will be capable of delivering by 1954 and still permit the free world to go on to the eventual attainment of its objectives.” Cold War strategists had, back in 1950, written the coldest of Cold War documents: National Security Council Directive 68 (NSC 68). Fearing, or at least presenting the fear of, Soviet world domination, NSC 68 argued for “A Rapid Build-up of Political, Economic, and Military Strength in the Free World.” This was to be achieved by all necessary means, it seems, for, although admitting that, “the United States now possesses the greatest military potential of any single nation in the world,” the cold warriors were concerned that the Soviet Union possessed “greater numerical forces” than the US. This was not to be tolerated.

Instead, a “military shield” was to be provided that had the effect of mercilessly strapping the US taxpayer to the grindstone of weapons development – and, as a natural by-product, huge corporate profits for arms manufacturers -- for the next fifty years. NSC 68 argued persuasively that this could be achieved in the time honoured way by a “reduction of Federal expenditures for purposes other than defense and foreign assistance, if necessary by the deferment of certain desirable programs” and “increased taxes.” It seems probable that another hitherto unstated objective was the bribery of unaligned nations by means of gold certificates.

Another event of great significance took place in 1954. That year, President Eisenhower commissioned General James Doolittle to conduct a study of CIA covert operations. General Doolittle concluded the CIA was often ineffective against the KGB and that the CIA "must learn to subvert, sabotage and destroy its enemies by more clever, more sophisticated and more effective methods than those used against it." It is likely that bribery and corruption formed a part of Doolittle’s “more clever, more sophisticated and more effective methods...” [iii]

These measures included a willingness to modify behaviour and, where feasible, manipulate minds. It was in 1954 that Morse Allen, the CIA’s first behavioural research kingpin, began what are now regarded as deeply concerning experiments in hypnosis designed to create an unthinking, robotic assassin known as the “Manchurian Candidate.” These experiments developed and widened under the secret CIA mind control programme MKULTRA – a series of studies way ahead of their time that date back to 1953 and included, as far back as 1965, studies concerned with gene-splitting and gene manipulation.

Nor can this re-telling of events be complete without brief mention of the fastidious audit of US gold reserves conducted at Fort Knox in utmost secrecy in 1954. This is curious, as meticulous audits of gold reserves on the 1954 scale are uncommon. Each of the almost three quarters of a million 400-ounce bars was counted and weighed. Moreover, every hundredth bar was bored and a small quantity of gold removed and assayed to determine purity. Extraordinarily, the gold “plugs” removed from the bars were sent to assay offices throughout the United States to ensure that no single individual could learn how detailed the audit was.

To this day, no one knows why this comprehensive inventory was conducted in such secrecy. Is it possible that someone in the Eisenhower Administration learned of the gold hoards on the Philippines and figured that Fort Knox had been plundered and its gold replaced with ersatz bullion while the real gold had been shipped to the Philippines and buried? Did someone conclude that General Douglas MacArthur and his mentor, former President Herbert Hoover, might have been behind such a crooked scheme? We now know that both MacArthur and Hoover had huge quantities of gold valued in excess of $100 million stashed in hidden bank accounts set up by the CIA’s Santa Romana. [iv]

Meanwhile, the following lists some of the more significant events of 1954, but does not include the US Internal Revenue Code of that year, only because I have been unable to study that code in any detail. By any measure, however, 1954 is proving to be a spectacular year for historians:

* Secret Treaty signed that concerns vast amounts of gold stashed in the
Philippines. The treaty remains virtually impenetrable - although it is
rumoured to involve bribery of national leaders of non-aligned nations
attending the Bandung conference in 1955.

* Marcos learns that Yamashita's gold is real in November 1953 and begins
digging in 1954.

* Fred Meuser, Lockheed's European Director, transfers to Geneva to live,
work and play and bribe Bilderberg Chairman, Prince Bernhard.

* German External Debt Treaty agreed to (Bormann funds flood back to the
fatherland).

* Four Power Treaty is signed in Paris to terminate the occupation regime in Germany

* Ten - year - old Gunther Russbacher emigrates to the US to later take up a
career in ONI and CIA -- along, he says, with many other Austrian nationals.
They all become US citizens. Forty years later, Russbacher peddles gold
recovered from the Philippines to the Austrian central bank.

* German industrialists (principally Krupp) begin campaign in US Senate to
recover assets seized by Allies at the end of WWII. John Foster Dulles supports the
campaign.

* Swiss bankers discuss question of Nazi gold and "heirless assets" -- those
plundered from Jews in the concentration camps.

* Schroder and Wagg families combine their interests via the 1954 registered
company Schroder Successors Ltd., to become J. Henry Schroder Wagg
merchant bankers.

* Bilderberg's second annual meeting includes discussions of the Bandung Meeting (second item
on the agenda)

Meanwhile, one of the more intriguing pieces of information regarding the Dulles brothers is their interest in the Council on Foreign Relations, an elite group of policy makers that sprang out of the 1919 Paris Peace Conference. The CFR was formed as the sister organisation of the British Royal Institute of International Affairs (RIIA), which was founded by those closely associated with the aims of the Rhodes-Milner group. Moreover, according to Peter Grose in his all-too-flattering biography of Allen Dulles, Gentleman Spy, Dulles travelled to Europe in 1947, where he “… paused in London for meetings with Alan Toynbee and took a leisurely side trip to Oxford ‘at its loveliest’ for mellow conversations in the common room of All Souls, where matters of import could be considered over port and cigars.” [v]

The name Arnold Toynbee, naturally raises interest, for he was one of that small and close band of disciples of John Ruskin at Oxford that included Cecil Rhodes, Lord Alfred Milner and others who became principal architects of the Rhodes-Milner group that sat at the very heart of the RIIA-CFR, Anglo-American relationship. Peter Grose also references what is portrayed as an almost chance encounter between Dulles and Arnold Toynbee (the nephew of the Toynbee the older) on board a Pan American Clipper “Flying Boat” in 1942. This was during Dulles’s extended journey to Switzerland for the purpose of taking up residence as the senior OSS man. Toynbee, in addition to his Oxford connections, was also a member of Britain’s secret intelligence service. This is of some consequence, particularly when we recall Dr. Damanik’s earlier mention that the Secret Treaty was closely connected to “Rhodes scholars.”

There may also well be some connections to the 1954 report of the Reece Committee. The Special Congressional Committee under Chairman B. Carroll Reece (Tennessee) had been charged in 1953 with investigating tax-exempt foundations. Establishment historian, Carroll Quigley, in his book Tragedy & Hope – which provided the first clear factual insight into the Rhodes-Milner group – states of the Reece Committee that: “it soon became clear that people of immense wealth would be unhappy if the investigation went too far and that the ‘most respected’ newspapers in the country, closely allied with these men of wealth, would not get excited enough about any revelations to make the publicity worthwhile, in terms of votes or campaign contributions.” [vi] What Quigley was describing was self-censorship by the US media to protect the interests of their patrons. In any event, one cannot help but muse whether the seven trusts mentioned by Dr. Damanik as being vehicles for the Secret Treaty gold bullion certificates were, in some manner, connected to one or more of those tax-exempt foundations investigated by Congressman Reece and his committee. Once again, a study of the Internal Revenue Code of 1954 is called for when time permits.

Joseph Retinger, one of the architects of the Atlantic-Europe movement that sewed together the elites of America and Europe, was also the principal founding member of the Bilderberg group. According to Retinger, John Foster Dulles, “was among those in America who helped us most.” [vii] Another founding member of the Bilderberg group was Sir Colin Gubbins, who headed Britain’s wartime SOE, which was the model for the OSS, which in turn was the predecessor of the CIA. There were others from the intelligence community who involved themselves with Bilderberg from the very beginning. For example, Walter Beedel Smith, Eisenhower’s Chief of Staff during World War II – and later Director of the then newly formed Central Intelligence Agency -- became one of two US co-chairman.

Crucial to the underlying Anglo-American structure of Bilderberg was the Continental European contingent of which German participants formed the greater part. Not least, Prince Bernhard of the Netherlands was the first Chairman of Bilderberg. In an earlier incarnation, the Prince worked for I.G. Farben’s notorious intelligence department “NW7,” which became the Third Reich’s private eyes and ears during World War II. In his Farben role, Bernhard worked under Frank Fahle, who later was appointed as Lockheed’s agent in West Germany. The connections continue. John Foster Dulles, as senior partner in the law firm Sullivan & Cromwell, personally represented I. G. Farben’s American company, General Aniline and Film Corporation, prior to World War II. His allegiance to his clients in obfuscating German ownership of GAF earned Foster a reprimand from a state prosecutor as a “scoundrel who should be disbarred.”

Of some interest too, is the fact that Prince Bernhard is associated with the Knights Templar through the Dutch variant of the Order of St. John (the Johanniter Orde, Nederland), of which he is the head with the title "Landcommandeur." The Prince governs the Dutch order along with a chapter of eight other knights. The Prince was appointed to his position in 1954. The involvement of secret societies as a covert ant-Communist force throughout the Cold War is dealt with in more detail in an article I have written titled "Holy Smoke & Mirrors," which appears in an Appendix to this Dossier.

The rebuke aimed at John Foster Dulles mentioned above in no way thwarted the ambitions of the crusty statesman. By 1954, as Secretary of State, he dropped any pretence of impartiality and testified (in opposition to the Justice Department’s position) in favour of a bill designed to return vested enemy assets (of which GAF was one, for example) to their former owners. This bill, introduced by Senator Dirksen, was intended to contravene the 1945 Reparations Agreement.

[i] Central Intelligence Agency Inspector General REPORT OF INVESTIGATION INTO ALLEGATIONS OF CONNECTIONS BETWEEN CIA AND THE CONTRAS IN COCAINE TRAFFICKING TO THE UNITED STATES Volume II -- The Contra Story, dated October 8, 1998. The report stated: "For over 20 years, CIA had broad discretion to report or not report information that came to its attention regarding potential violations of federal law by its employees, assets and other persons. According to a 1954 memorandum from CIA General Counsel Lawrence Houston to the DCI, Houston discussed the issue of reporting Federal criminal violations to the Department of Justice (DoJ) with Deputy Attorney General William P. Rogers on February 18, 1954. According to that memorandum, Rogers and Houston agreed that CIA would be responsible for determining whether a potential violation of criminal law by persons associated with CIA would be referred to DoJ for prosecution."

[ii] Noted in Carol Marshall’s excellent but thus far unpublished manuscript The Last Circle, at 15. A condensed version is available on the Internet at the Lycaeum Book Archives at www.lycaeum.org/books/books/last_circle/.

[iv] See Sterling Seagrave The Yamato Dynasty (London: Bantam Press, 1999) at 293.

[v] Peter Grose, Gentleman Spy, the Life of Allen Dulles (Amherst: University of Massachusetts Press, 1994) at 270.

[vi] Carroll Quigley, Tragedy & Hope (California: GSG Associates, reprint of original London: MacMillan, 1966 imprint) at 955.

The Secret Gold Treaty

PART 2.3