Chapter 1

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"_I know no safe depository of the ultimate powers of society but the

people themselves; and if we think them not enlightened enough to

exercise their control with a wholesome discretion, the remedy is not to

take it from them, but to inform their discretion by education._"

--Thomas Jefferson

The Invisible Government

by

Dan Smoot

[Transcriber's note: Although copyrighted in 1962, the author did not

renewal his copyright claim after 28 years (which was required to retain

copyright for works published before 1964). Therefore, this text is now

in the public domain. The text of the copyright notice from the original

book is preserved below.]

Copyright 1962 by Dan Smoot

All rights reserved

First Printing June, 1962; Second Printing July, 1962; Third Printing

August, 1962; Fourth Printing September, 1962; Fifth Printing October,

1962

Sixth Printing (in pocketsize paperback) August, 1964

Communists in government during World War II formulated major policies

which the Truman administration followed; but when the known communists

were gone, the policies continued, under Eisenhower, Kennedy, Johnson.

The unseen _they_ who took control of government during World War II

still control it. Their tentacles of power are wrapped around levers of

political control in Washington; reach into schools, big unions,

colleges, churches, civic organizations; dominate communications; have a

grip on the prestige and money of big corporations.

For a generation, _they_ have kept voters from effecting any changes at

the polls. Voters are limited to the role of choosing between parties to

administer policies which _they_ formulate. _They_ are determined to

convert this Republic into a socialist province of a one-world socialist

system.

This book tells who _they_ are and how _they_ work. If enough Americans

had this information, our Republic would be saved. Please do your utmost

to spread the word: order extra copies of this book and help give it

wide distribution. See inside of back cover for quantity prices.

Published by

THE DAN SMOOT REPORT, INC.

P.O. Box 9538

Dallas, Texas 75214

Table of Contents

Foreword i

Chapter I History and The Council 1

Chapter II World War II and Tragic Consequences 23

Chapter III FPA-WAC-IPR 35

Chapter IV Committee For Economic Development 51

Chapter V Business Advisory Council 81

Chapter VI Advertising Council 97

Chapter VII UN and World Government Propaganda 103

Chapter VIII Foreign Aid 129

Chapter IX More of The Interlock 137

Chapter X Communications Media 153

Chapter XI Interlocking Untouchables 161

Chapter XII Why? What Can We Do? 173

Appendix I CFR Membership List 186

Appendix II AUC Membership List 201

Index 227

FOREWORD

On May 30, 1961, President Kennedy departed for Europe and a summit

meeting with Khrushchev[A]. Every day the Presidential tour was given

banner headlines; and the meeting with Khrushchev was reported as an

event of earth-shaking consequence.

It was an important event. But a meeting which was probably far more

important, and which had commanded no front-page headlines at all, ended

quietly on May 29, the day before President and Mrs. Kennedy set out on

their grand tour.

On May 12, 1961, Dr. Philip E. Mosely, Director of Studies of the

Council on Foreign Relations, announced that,

"Prominent Soviet and American citizens will hold a week-long

unofficial conference on Soviet-American relations in the Soviet

Union, beginning May 22."

Dr. Mosely, a co-chairman of the American group, said that the State

Department had approved the meeting but that the Americans involved

would go as "private citizens" and would express their own views.

_The New York Times'_ news story on Dr. Mosely's announcement (May 13,

1961) read:

"The importance attached by the Soviet Union to the meeting appears

to be suggested by the fact that the Soviet group will include

three members of the communist party's Central Committee ... and

one candidate member of that body....

"The meeting, to be held in the town of Nizhnyaya Oreanda, in the

Crimea, will follow the pattern of a similar unofficial meeting,

in which many of the same persons participated, at Dartmouth

College last fall. The meetings will take place in private and

there are no plans to issue an agreed statement on the subjects

discussed....

"The topics to be discussed include disarmament and the

guaranteeing of ... international peace, the role of the United

Nations in strengthening international security, the role of

advanced nations in aiding under-developed countries, and the

prospects for peaceful and improving Soviet-United States

relations.

"The Dartmouth conference last fall and the scheduled Crimean

conference originated from a suggestion made by Norman Cousins,

editor of _The Saturday Review_ and co-chairman of the American

group going to the Crimea, when he visited the Soviet Union a year

and a half ago....

"Mr. Cousins and Dr. Mosely formed a small American group early

last year to organize the conferences. It received financial

support from the Ford Foundation for the Dartmouth conference and

for travel costs to the Crimean meeting. This group selected the

American representatives for the two meetings.

"Among those who participated in the Dartmouth conference were

several who have since taken high posts in the Kennedy

Administration, including Dr. Walt W. Rostow, now an assistant to

President Kennedy, and George F. Kennan; now United States

Ambassador to Yugoslavia...."

* * * * *

The head of the Soviet delegation to the meeting in the Soviet Union,

May 22, 1961, was Alekesander Y. Korneichuk, a close personal friend of

Khrushchev. The American citizens scheduled to attend included besides

Dr. Mosely and Mr. Cousins:

_Marian Anderson_, the singer; _Dean Erwin N. Griswold_, of the Harvard

Law School; _Gabriel Hauge_, former economic adviser to President

Eisenhower and now an executive of the Manufacturers Trust Company; _Dr.

Margaret Mead_, a widely known anthropologist whose name (like that of

Norman Cousins) has been associated with communist front activities in

the United States; _Dr. A. William Loos_, Director of the Church Peace

Union; _Stuart Chase_, American author notable for his pro-socialist,

anti-anti-communist attitudes; _William Benton_, former U.S. Senator,

also well-known as a pro-socialist, anti-anti-communist, now Chairman of

the Board of _Encyclopaedia Britannica_; _Dr. George Fisher_, of the

Massachusetts Institute of Technology; _Professor Paul M. Doty_, _Jr._,

of Harvard's Chemistry Department; _Professor Lloyd Reynolds_, Yale

University economist; _Professor Louis B. Sohn_ of the Harvard Law

School; _Dr. Joseph E. Johnson_, an old friend and former associate of

Alger Hiss in the State Department, who succeeded Hiss as President of

the Carnegie Endowment for International Peace, and still holds that

position; _Professor Robert R. Bowie_, former head of the State

Department's Policy Planning Staff (a job which Hiss also held at one

time), now Director of the Center for International Affairs at Harvard;

and _Dr. Arthur Larson_, former assistant to, and ghost writer for,

President Eisenhower. Larson was often called "Mr. Modern Republican,"

because the political philosophy which he espoused was precisely that of

Eisenhower (Larson is now, 1962, Director of the World Rule of Law

Center at Duke University, where his full-time preoccupation is working

for repeal of the Connally Reservation, so that the World Court can take

jurisdiction over United States affairs).

* * * * *

I think the meeting which the Council on Foreign Relations arranged in

the Soviet Union, in 1961, was more important than President Kennedy's

meeting with Khrushchev, because I am convinced that the Council on

Foreign Relations, together with a great number of other associated

tax-exempt organizations, constitutes the invisible government which

sets the major policies of the federal government; exercises controlling

influence on governmental officials who implement the policies; and,

through massive and skillful propaganda, influences Congress and the

public to support the policies.

I am convinced that the objective of this invisible government is to

convert America into a socialist state and then make it a unit in a

one-world socialist system.

My convictions about the invisible government are based on information

which is presented in this book.

The information about membership and activities of the Council on

Foreign Relations and of its interlocking affiliates comes largely from

publications issued by those organizations. I am deeply indebted to

countless individuals who, when they learned of my interest, enriched my

own files with material they had been collecting for years, hoping that

someone would eventually use it.

I have not managed to get all of the membership rosters and publications

issued by all of the organizations discussed. Hence, there are gaps in

my information.

* * * * *

One aspect of the over-all subject, omitted entirely from this book, is

the working relationship between internationalist groups in the United

States and comparable groups abroad.

The Royal Institute of International Affairs in England (usually called

Chatham House) and the American Council on Foreign Relations were both

conceived at a dinner meeting in Paris in 1919. By working with the CFR,

the Royal Institute, undoubtedly, has had profound influence on American

affairs.

Other internationalist organizations in foreign lands which work with

the American Council on Foreign Relations, include the Institut des

Relations Internationales (Belgium), Danish Foreign Policy Society,

Indian Council of World Affairs, Australian Institute of International

Affairs, and similar organizations in France, Italy, Yugoslavia, Greece,

and Turkey.

The "Bilderbergers" are another powerful group involved in the

internationalist web. The "Bilderbergers" take their name from the scene

of their first known meeting--the Bilderberg Hotel, Oosterbeck, The

Netherlands, in May, 1954. The group consists of influential Western

businessmen, diplomats, and high governmental officials. Their meetings,

conducted in secrecy and in a hugger-mugger atmosphere, are held about

every six months at various places throughout the world. His Royal

Highness, Prince Bernhard of The Netherlands, has presided at every

known meeting of the Bilderberger Group.

Prince Bernhard is known to be an influential member of the Societé

Generale de Belgique, a mysterious organization which seems to be an

association of large corporate interests from many countries. American

firms associated with the society are said to be among the large

corporations whose officers are members of the Council on Foreign

Relations and related organizations. I make no effort to explore this

situation in this volume.

My confession of limitation upon my research does not embarrass me,

because two committees of Congress have also failed to make a complete

investigation of the great _camarilla_ which manipulates our government.

And the congressional committees were trying to investigate only one

part of the web--the powerful tax-exempt foundations in the United

States.

My own research does reveal the broad outlines of the invisible

government.

D.S.

May, 1962

Chapter 1

HISTORY AND THE COUNCIL

President George Washington, in his Farewell Address to the People of

the United States on September 17, 1796, established a foreign policy

which became traditional and a main article of faith for the American

people in their dealings with the rest of the world.

Washington warned against foreign influence in the shaping of national

affairs. He urged America to avoid permanent, entangling alliances with

other nations, recommending a national policy of benign neutrality

toward the rest of the world. Washington did not want America to build a

wall around herself, or to become, in any sense, a hermit nation.

Washington's policy permitted freer exchange of travel, commerce, ideas,

and culture between Americans and other people than Americans have ever

enjoyed since the policy was abandoned. The Father of our Country wanted

the American _government_ to be kept out of the wars and revolutions and

political affairs of other nations.

Washington told Americans that their nation had a high destiny, which it

could not fulfill if they permitted their government to become entangled

in the affairs of other nations.

Despite the fact of two foreign wars (Mexican War, 1846-1848; and

Spanish American War, 1898) the foreign policy of Washington remained

the policy of this nation, _unaltered_, for 121 years--until Woodrow

Wilson's war message to Congress in April, 1917.

* * * * *

Wilson himself, when campaigning for re-election in 1916, had

unequivocally supported our traditional foreign policy: his one major

promise to the American people was that he would keep them out of the

European war.

Yet, even while making this promise, Wilson was yielding to a pressure

he was never able to withstand: the influence of Colonel Edward M.

House, Wilson's all-powerful adviser. According to House's own papers

and the historical studies of Wilson's ardent admirers (see, for

example, _Intimate Papers of Colonel House_, edited by Charles Seymour,

published in 1926 by Houghton Mifflin; and, _The Crisis of the Old

Order_ by Arthur M. Schlesinger, Jr., published 1957 by Houghton

Mifflin), House created Wilson's domestic and foreign policies, selected

most of Wilson's cabinet and other major appointees, and ran Wilson's

State Department.

House had powerful connections with international bankers in New York.

He was influential, for example, with great financial institutions

represented by such people as Paul and Felix Warburg, Otto H. Kahn,

Louis Marburg, Henry Morgenthau, Jacob and Mortimer Schiff, Herbert

Lehman. House had equally powerful connections with bankers and

politicians of Europe.

Bringing all of these forces to bear, House persuaded Wilson that

America had an evangelistic mission to save the world for "democracy."

The first major twentieth century tragedy for the United States

resulted: Wilson's war message to Congress and the declaration of war

against Germany on April 6, 1917.

House also persuaded Wilson that the way to avoid all future wars was to

create a world federation of nations. On May 27, 1916, in a speech to

the League to Enforce Peace, Wilson first publicly endorsed Colonel

House's world-government idea (without, however, identifying it as

originating with House).

* * * * *

In September, 1916, Wilson (at the urging of House) appointed a

committee of intellectuals (the first President's Brain Trust) to

formulate peace terms and draw up a charter for world government. This

committee, with House in charge, consisted of about 150 college

professors, graduate students, lawyers, economists, writers, and others.

Among them were men still familiar to Americans in the 1960's: Walter

Lippmann (columnist); Norman Thomas (head of the American socialist

party); Allen Dulles (former head of C.I.A.); John Foster Dulles (late

Secretary of State); Christian A. Herter (former Secretary of State).

These eager young intellectuals around Wilson, under the clear eyes of

crafty Colonel House, drew up their charter for world government (League

of Nations Covenant) and prepared for the brave new socialist one-world

to follow World War I. But things went sour at the Paris Peace

Conference. They soured even more when constitutionalists in the United

States Senate found out what was being planned and made it quite plain

that the Senate would not authorize United States membership in such a

world federation.

Bitter with disappointment but not willing to give up, Colonel House

called together in Paris, France, a group of his most dedicated young

intellectuals--among them, John Foster and Allen Dulles, Christian A.

Herter, and Tasker H. Bliss--and arranged a dinner meeting with a group

of like-minded Englishmen at the Majestic Hotel, Paris, on May 19, 1919.

The group formally agreed to form an organization "for the study of

international affairs."

The American group came home from Paris and formed The Council on

Foreign Relations, which was incorporated in 1921.

The purpose of the Council on Foreign Relations was to create (and

condition the American people to accept) what House called a "positive"

foreign policy for America--to replace the traditional "negative"

foreign policy which had kept America out of the endless turmoil of

old-world politics and had permitted the American people to develop

their great nation in freedom and independence from the rest of the

world.

The Council did not amount to a great deal until 1927, when the

Rockefeller family (through the various Rockefeller Foundations and

Funds) began to pour money into it. Before long, the Carnegie

Foundations (and later the Ford Foundation) began to finance the

Council.

In 1929, the Council (largely with Rockefeller gifts) acquired its

present headquarters property: The Harold Pratt House, 58 East 68th

Street, New York City.

In 1939, the Council began taking over the U.S. State Department.

Shortly after the start of World War II, in September, 1939, Hamilton

Fish Armstrong and Walter H. Mallory, of the Council on Foreign

Relations, visited the State Department to offer the services of the

Council. It was agreed that the Council would do research and make

recommendations for the State Department, without formal assignment or

responsibility. The Council formed groups to work in four general

fields--Security and Armaments Problems, Economic and Financial

Problems, Political Problems, and Territorial Problems.

The Rockefeller Foundation agreed to finance, through grants, the

operation of this plan.

In February, 1941, the Council on Foreign Relations' relationship with

the State Department changed. The State Department created the Division

of Special Research, which was divided into Economic, Security,

Political, Territorial sections. Leo Pasvolsky, of the Council, was

appointed Director of this Division. Within a very short time, members

of the Council on Foreign Relations dominated this new Division in the

State Department.

During 1942, the State Department set up the Advisory Committee on

Postwar Foreign Policy. Secretary of State Cordell Hull was Chairman.

The following members of the Council on Foreign Relations were on this

Committee: Under Secretary of State Sumner Welles (Vice-Chairman), Dr.

Leo Pasvolsky (Executive Officer); Hamilton Fish Armstrong, Isaiah

Bowman, Benjamin V. Cohen, Norman H. Davis, and James T. Shotwell.

Other members of the Council also found positions in the State

Department: Philip E. Mosely, Walter E. Sharp, and Grayson Kirk, among

others.

The crowning moment of achievement for the Council came at San Francisco

in 1945, when over 40 members of the United States Delegation to the

organizational meeting of the United Nations (where the United Nations

Charter was written) were members of the Council. Among them: Alger

Hiss, Secretary of State Edward R. Stettinius, Leo Pasvolsky, John

Foster Dulles, John J. McCloy, Julius C. Holmes, Nelson A. Rockefeller,

Adlai Stevenson, Joseph E. Johnson, Ralph J. Bunche, Clark M.

Eichelberger, and Thomas K. Finletter.

By 1945, the Council on Foreign Relations, and various foundations and

other organizations interlocked with it, had virtually taken over the

U.S. State Department.

Some CFR members were later identified as Soviet espionage agents: for

example, Alger Hiss and Lauchlin Currie.

Other Council on Foreign Relations members--Owen Lattimore, for

example--with powerful influence in the Roosevelt and Truman

Administrations, were subsequently identified, not as actual communists

or Soviet espionage agents, but as "conscious, articulate instruments of

the Soviet international conspiracy."

I do not intend to imply by these citations that the Council on Foreign

Relations is, or ever was, a communist organization. Boasting among its

members Presidents of the United States (Hoover, Eisenhower, and

Kennedy), Secretaries of State, and many other high officials, both

civilian and military, the Council can be termed, by those who agree

with its objectives, a "patriotic" organization.

The fact, however, that communists, Soviet espionage agents, and

pro-communists could work inconspicuously for many years as influential

members of the Council indicates something very significant about the

Council's objectives. The ultimate aim of the Council on Foreign

Relations (however well-intentioned its prominent and powerful members

may be) is the same as the ultimate aim of international communism: to

create a one-world socialist system and make the United States an

official part of it.

Some indication of the influence of CFR members can be found in the

boasts of their best friends. Consider the remarkable case of the

nomination and confirmation of Julius C. Holmes as United States

Ambassador to Iran. Holmes was one of the CFR members who served as

United States delegates to the United Nations founding conference at San

Francisco in 1945.

Mr. Holmes has had many important jobs in the State Department since

1925; but from 1945 to 1948, he was out of government service.

During that early postwar period, the United States government had

approximately 390 Merchant Marine oil tankers (built and used during

World War II) which had become surplus.

A law of Congress prohibited the government from selling the surplus

vessels to foreign-owned or foreign-controlled companies, and prohibited

any American company from purchasing them for resale to foreigners.

The purpose of the law was to guarantee that oil tankers (vital in times

of war) would remain under the control of the United States government.

Julius Holmes conceived the idea of making a quick profit by buying and

selling some of the surplus tankers.

Holmes was closely associated with Edward Stettinius, former Secretary

of State, and with two of Stettinius' principal advisers: Joe Casey, a

former U.S. Congressman; and Stanley Klein, a New York financier.

In August, 1947, this group formed a corporation (and ultimately formed

others) to buy surplus oil tankers from the government. The legal and

technical maneuvering which followed is complex and shady, but it has

all been revealed and reported by congressional committees.

Holmes and his associates managed to buy eight oil tankers from the U.S.

government and re-sell all of them to foreign interests, in violation of

the intent of the law and of the surplus-disposal program. One of the

eight tankers was ultimately leased to the Soviet Union and used to haul

fuel oil from communist Romania to the Chinese reds during the Korean

war.

By the time he returned to foreign service with the State Department in

September, 1948, Holmes had made for himself an estimated profit of

about one million dollars, with practically no investment of his own

money, and at no financial risk.

A Senate subcommittee, which, in 1952, investigated this affair,

unanimously condemned the Holmes-Casey-Klein tanker deals as "morally

wrong and clearly in violation of the intent of the law," and as a

"highly improper, if not actually illegal, get-rich-quick" operation

which was detrimental to the interests of the United States.

Holmes and his associates were criminally indicted in 1954--but the

Department of Justice dismissed the indictments on a legal technicality

later that same year.

A few weeks after the criminal indictment against Holmes had been

dismissed, President Eisenhower, in 1955, nominated Julius C. Holmes to

be our Ambassador to Iran.

Enough United States Senators in 1955 expressed a decent sense of

outrage about the nomination of such a man for such a post that Holmes

"permitted" his name to be withdrawn, before the Senate acted on the

question of confirming his appointment.

The State Department promptly sent Holmes to Tangier with the rank of

Minister; brought him back to Washington in 1956 as a Special Assistant

to the Secretary of State; and sent him out as Minister and Consul

General in Hong Kong and Macao in 1959.

And then, in 1961, Kennedy nominated Julius C. Holmes for the same job

Eisenhower had tried to give him in 1955--Ambassador to Iran.

Arguing in favor of Holmes, Senator Prescott Bush admitted that Holmes'

tanker deals were improper and ill-advised, but claimed that Holmes was

an innocent victim of sharp operators! The "innocent" victim made a

million dollars in one year by being victimized. He has never offered to

make restitution to the government. Moreover, when questioned, in April,

1961, Holmes said he still sees nothing wrong with what he did and

admits he would do it again if he had the opportunity--and felt that no

congressional committee would ever investigate.

All Senators, who supported Holmes in debate, hammered the point that,

although Holmes may have done something shady and unsavory during the

three-year period in the late 1940's when he was _out_ of government

service, there was no evidence that he had ever misbehaved while he was

_in_ government service.

This amoral attitude seems to imply that a known chicken thief cannot be

considered a threat to turkey growers, unless he has actually been

caught stealing turkeys.

Senate debates on the confirmation of Holmes as Ambassador to Iran are

printed in the _Congressional Record_: pp. 6385-86, April 27, 1961; pp.

6668-69, May 3, 1961; and pp. 6982-95, May 8, 1961.

The vote was taken on May 8. After the history of Julius C. Holmes had

been thoroughly exposed, the Senate confirmed Holmes' nomination 75 to

21, with 4 Senators taking no stand. Julius C. Holmes was sworn in as

United States Ambassador to Iran on May 15, 1961.

The real reason why Holmes was nominated for an important ambassadorship

by two Presidents and finally confirmed by the Senate is obvious--and

was, indeed, inadvertently revealed by Senator Prescott Bush: Holmes, a

Council on Foreign Relations member, is a darling of the leftwing

internationalists who are determined to drag America into a socialist

one-world system.

During the Senate debate about Holmes' nomination Senator Bush said:

"I believe that one of the most telling witnesses with whom I have

ever talked regarding Mr. Holmes is Mr. Henry Wriston, formerly

president of Brown University, now chairman of the Council on

Foreign Relations, in New York, and chairman of the American

Assembly. Mr. Wriston not only holds these distinguished offices,

but he has also made a special study of the State Department and

the career service in the State Department.

"He is credited with having 'Wristonized' the Foreign Service of

the United States. He told me a few years ago ... [that] 'Julius

Holmes is the ablest man in the Foreign Service Corps of the United

States.'"

Dr. Wriston was (in 1961) President (not Chairman, as Senator Bush

called him) of the Council on Foreign Relations. But Senator Bush was

not exaggerating or erring when he said that the State Department has

been _Wristonized_--if we acknowledge that the State Department has been

converted into an agency of Dr. Wriston's Council on Foreign Relations.

Indeed, the Senator could have said that the United States government

has been _Wristonized_.

Here, for example, are _some_ of the members of the Council on Foreign

Relations who, in 1961, held positions in the United States Government:

John F. Kennedy, President; Dean Rusk, Secretary of State; Douglas

Dillon, Secretary of the Treasury; Adlai Stevenson, United Nations

Ambassador; Allen W. Dulles, Director of the Central Intelligence

Agency; Chester Bowles, Under Secretary of State; W. Averell Harriman,

Ambassador-at-large; John J. McCloy, Disarmament Administrator; General

Lyman L. Lemnitzer, Chairman of the Joint Chiefs of Staff; John Kenneth

Galbraith, Ambassador to India; Edward R. Murrow, Head of United States

Information Agency; G. Frederick Reinhardt, Ambassador to Italy; David

K. E. Bruce, Ambassador to United Kingdom; Livingston T. Merchant,

Ambassador to Canada; Lt. Gen. James M. Gavin, Ambassador to France;

George F. Kennan, Ambassador to Yugoslavia; Julius C. Holmes, Ambassador

to Iran; Arthur H. Dean, head of the United States Delegation to Geneva

Disarmament Conference; Arthur M. Schlesinger, Jr., Special White House

Assistant; Edwin O. Reischauer, Ambassador to Japan; Thomas K.

Finletter, Ambassador to the North Atlantic Treaty Organization for

Economic Co-operation and Development; George C. McGhee, Assistant

Secretary of State for Policy Planning; Henry R. Labouisse, Director of

International Cooperation Administration; George W. Ball, Under

Secretary of State for Economic Affairs; McGeorge Bundy, Special

Assistant for National Security; Paul H. Nitze, Assistant Secretary of

Defense; Adolf A. Berle, Chairman, Inter-Departmental Committee on Latin

America; Charles E. Bohlen, Assistant Secretary of State.

The names listed do not, by any means, constitute a complete roster of

all Council members who are in the Congress or hold important positions

in the Administration.

In the 1960-61 Annual Report of the Council on Foreign Relations, there

is an item of information which reveals a great deal about the close

relationship between the Council and the executive branch of the federal

government.

On Page 37, The Report explains why there had been an unusually large

recent increase in the number of non-resident members (CFR members who

do not reside within 50 miles of New York City Hall):

"The rather large increase in the non-resident academic category is

largely explained by the fact that many academic members have left

New York to join the new administration."

* * * * *

Concerning President Kennedy's membership in the CFR, there is an

interesting story. On June 7, 1960, Mr. Kennedy, then a United States

Senator, wrote a letter answering a question about his membership in the

Council. Mr. Kennedy said:

"I am a member of the Council on Foreign Relations in New York

City. As a long-time subscriber to the quarterly, Foreign Affairs,

and as a member of the Senate, I was invited to become a member."

On August 23, 1961, Mr. George S. Franklin, Jr., Executive Director of

the Council on Foreign Relations, wrote a letter answering a question

about President Kennedy's membership. Mr. Franklin said:

"I am enclosing the latest Annual Report of the Council with a list

of members in the back. You will note that President Eisenhower is

a member, but this is not true of either President Kennedy or

President Truman."

President Kennedy is not listed as a member in the 1960-61 Annual Report

of the CFR.

The complete roster of CFR members, as set out in the 1960-61 Annual

Report, is in Appendix I of this volume. Several persons, besides

President Kennedy, whom I have called CFR members are not on this

roster. I have called them CFR members, if their names have ever

appeared on _any_ official CFR membership list.

The Council is actually a small organization. Its membership is

restricted to 700 resident members (American citizens whose residences

or places of business are within 50 miles of City Hall in New York

City), and 700 non-resident members (American citizens who reside or do

business outside that 50-mile radius); but most of the members occupy

important positions in government, in education, in the press, in the

broadcasting industry, in business, in finance, or in some

multi-million-dollar tax-exempt foundation.

An indication of overall accomplishments of the Council can be found in

its Annual Report of 1958-59, which reprints a speech by Walter H.

Mallory on the occasion of his retiring after 32 years as Executive

Director of the Council. Speaking to the Board of Directors of the

Council at a small dinner in his honor on May 21, 1959, Mr. Mallory

said:

"When I cast my mind back to 1927, the year that I first joined the

Council, it seems little short of a miracle that the organization

could have taken root in those days. You will remember that the

United States had decided not to join the League of Nations.... On

the domestic front, the budget was extremely small, taxes were

light ... and we didn't even recognize the Russians. What could

there possibly be for a Council on Foreign Relations to do?

"Well, there were a few men who did not feel content with that

comfortable isolationist climate. They thought the United States

had an important role to play in the world and they resolved to try

to find out what that role ought to be. Some of those men are

present this evening."

The Council's principal publication is a quarterly magazine, _Foreign

Affairs_. Indeed, publishing this quarterly is the Council's major

activity; and income from the publication is a principal source of

revenue for the Council.

On June 30, 1961, _Foreign Affairs_ had a circulation of only 43,500;

but it is probably the most influential publication in the world. Key

figures in government--from the Secretary of State downward--write

articles for, and announce new policies in, _Foreign Affairs_.

Other publications of the Council include three volumes which it

publishes annually (_Political Handbook of the World_, _The United

States in World Affairs_ and _Documents on American Foreign Relations_),

and numerous special studies and books.

The Council's financial statement for the 1960-61 fiscal year listed the

following income:

Membership Dues $123,200

Council Development Fund $ 87,000

Committees Development Fund $ 2,500

Corporation Service $112,200

Foundation Grants $231,700

Net Income from Investments $106,700

Net Receipt from Sale of Books $ 26,700

_Foreign Affairs_ Subscriptions and Sales $210,300

_Foreign Affairs_ Advertising $ 21,800

Miscellaneous $ 2,900

---------

Total $925,000

"Corporation Service" on this list means money contributed to the

Council by business firms.

Here are firms listed as contributors to the Council during the 1960-61

fiscal year:

Aluminum Limited, Inc.

American Can Company

American Metal Climax, Inc.

American Telephone and Telegraph Company

Arabian American Oil Company

Armco International Corporation

Asiatic Petroleum Corporation

Bankers Trust Company

Belgian Securities Corporation

Bethlehem Steel Company, Inc.

Brown Brothers, Harriman and Co.

Cabot Corporation

California Texas Oil Corp.

Cameron Iron Works, Inc.

Campbell Soup Company

The Chase Manhattan Bank

Chesebrough-Pond's Inc.

Chicago Bridge and Iron Co.

Cities Service Company, Inc.

Connecticut General Life Insurance Company

Continental Can Company

Continental Oil Company

Corn Products Company

Corning Glass Works

Dresser Industries, Inc.

Ethyl Corporation

I. I. du Pont de Nemours & Co., Inc.

Farrell Lines, Inc.

The First National City Bank of New York

Ford Motor Company, International Division

Foster Wheeler Corporation

Freeport Sulphur Company

General Dynamics Corporation

General Motors Overseas Operations

The Gillette Company

W. R. Grace and Co.

Gulf Oil Corporation

Halliburton Oil Well Cementing Company

Haskins and Sells

H. J. Heinz Company

Hughes Tool Company

IBM World Trade Corporation

International General Electric Company

The International Nickel Company, Inc.

International Telephone and Telegraph Corporation

Irving Trust Company

The M. W. Kellogg Company

Kidder, Peabody and Co.

Carl M. Loeb, Rhoades and Co.

The Lummus Company

Merck and Company, Inc.

Mobil International Oil Co.

Model, Roland and Stone

The National Cash Register Co.

National Lead Company, Inc.

The New York Times

The Ohio Oil Co., Inc.

Olin Mathieson Chemical Corporation

Otis Elevator Company

Owens-Corning Fiberglas Corporation

Pan American Airways System

Pfizer International, Inc.

Radio Corporation of America

The RAND Corporation

San Jacinto Petroleum Corporation

J. Henry Schroder Banking Corporation

Sinclair Oil Corporation

The Singer Manufacturing Company

Sprague Electric Company

Standard Oil Company of California

Standard Oil Company (N. J.)

Standard-Vacuum Oil Company

Stauffer Chemical Company

Symington Wayne Corporation

Texaco, Inc.

Texas Gulf Sulphur Company

Texas Instruments, Inc.

Tidewater Oil Company

Time, Inc.

Union Tank Car Company

United States Lines Company

United States Steel Corporation

White, Weld and Co.

Wyandotte Chemicals Corporation

What do these corporations get for the money contributed to the Council

on Foreign Relations?

From the 1960-61 Annual Report of the Council:

"Subscribers to the Council's Corporation Service (who pay a

minimum fee of $1,000) are entitled to several privileges. Among

them are (a) free consultation with members of the Council's staff

on problems of foreign policy, (b) access to the Council's

specialized library on international affairs, including its unique

collection of magazine and press clippings, (c) copies of all

Council publications and six subscriptions to _Foreign Affairs_ for

officers of the company or its library, (d) an off-the-record

dinner, held annually for chairmen and presidents of subscribing

companies at which a prominent speaker discusses some outstanding

issue of United States foreign policy, and (e) two annual series of

Seminars for business executives appointed by their companies.

These Seminars are led by widely experienced Americans who discuss

various problems of American political or economic foreign policy."

_All_ speakers at the Council's dinner meetings and seminars for

business executives are leading advocates of internationalism and the

total state. Many of them, in fact, are important officials in

government. The ego-appeal is enormous to businessmen, who get special

off-the-record briefings from Cabinet officers and other officials close

to the President of the United States.

The briefings and the seminar lectures are consistently designed to

elicit the support of businessmen for major features of Administration

policy.

For example, during 1960 and 1961, the three issues of major importance

to both Presidents Eisenhower and Kennedy were Disarmament, the

declining value of the American dollar, and the tariff-and-trade

problem. The Eisenhower and Kennedy positions on these three issues were

virtually identical; and the solutions they urged meshed with the

internationalist program of pushing America into a one-world socialist

system.

The business executives who attended CFR briefings and seminars in the

1960-61 fiscal year received expert indoctrination in the

internationalist position on the three major issues of that year. From

"Seminars For Business Executives," Pages 43-44 of the 1960-61 Annual

Report of the Council on Foreign Relations:

"The Fall 1960 Seminar ... was brought to a close with an appraisal

of disarmament negotiations, past and present, by Edmund A.

Gullion, then Acting Deputy Director, United States Disarmament

Administration....

"'The International Position of the Dollar' was the theme of the

Spring 1961 Seminar series. Robert Triffin, Professor of Economics

at Yale University, spoke on the present balance of payments

situation at the opening session. At the second meeting, William

Diebold, Jr., Director of Economic Studies at the Council,

addressed the group on United States foreign trade policy. The

third meeting dealt with foreign investment and the balance of

payments. August Maffry, Vice President of the Irving Trust

Company, was discussion leader....

"On June 8, George W. Ball, Under Secretary of State for Economic

Affairs, spoke at the annual Corporation Service dinner for

presidents and board chairmen of participating companies....

Secretary Ball [discussed] the foreign economic policy of the new

Kennedy Administration."

George W. Ball was, for several years, a registered lobbyist in

Washington, representing foreign commercial interests. He is a chief

architect of President Kennedy's 1962 tariff-and-trade proposals--which

would internationalize American trade and commerce, as a prelude to

amalgamating our economy with that of other nations.

In 1960-61, 84 leading corporations contributed 112,200 tax-exempt

dollars to the Council on Foreign Relations for the privilege of having

their chief officers exposed to the propaganda of international

socialism.

A principal activity of the Council is its meetings, according to the

1958-1959 annual report:

"During 1958-59, the Council's program of meetings continued to

place emphasis on small, roundtable meetings.... Of the 99 meetings

held during the year, 58 were roundtables.... The balance of the

meetings program was made up of the more traditional large

afternoon or dinner sessions for larger groups of Council members.

In the course of the year, the Council convened such meetings for

Premier Castro; First Deputy Premier Mikoyan; Secretary-General Dag

Hammarskjold...."

The Council's annual report lists all of the meetings and

"distinguished" speakers for which it convened the meetings. It is an

amazing list. Although the Council has tax-exemption as an organization

to study international affairs and, presumably, to help the public

arrive at a better understanding of United States foreign policy, not

one speaker for any Council meeting represented traditional U. S.

policy. Every one was a known advocate of leftwing internationalism. A

surprising number of them were known communists or communist

sympathizers or admitted socialists.

Kwame Nkrumah, Prime Minister of Ghana, who is widely believed to be a

communist; who is admittedly socialist; and who aligned his nation with

the Soviets--spoke to the Council on "Free Africa," with W. Averell

Harriman presiding.

Mahmoud Fawzi, Minister of Foreign Affairs of the United Arab Republic,

a socialist whose hatred of the United States is rather well known,

spoke to the Council on "Middle East."

Herbert L. Matthews, a member of the editorial board of _The New York

Times_ (whose articles on Castro as the Robin Hood of Cuba built that

communist hoodlum a worldwide reputation and helped him conquer Cuba)

spoke to the Council _twice_, once on "A Political Appraisal of Latin

American Affairs," and once on "The Castro Regime."

M. C. Chagla, Ambassador of India to the United States, a socialist,

spoke to the Council on "Indian Foreign Policy."

Anastas I. Mikoyan, First Deputy Premier, USSR, spoke to the Council on

"Issues in Soviet-American Relations," with John J. McCloy (later

Kennedy's Disarmament Administrator) presiding.

Fidel Castro spoke to the Council on "Cuba and the United States."

Here are some other well-known socialists who spoke to the Council on

Foreign Relations during the 1958-59 year:

Dag Hammarskjold, Secretary-General of the United Nations; Per

Jacobsson, Managing Director of the International Monetary Fund; Abba

Eban, Ambassador of Israel to the United States; Willy Brandt, Mayor of

West Berlin; Stanley de Zoysa, Minister of Finance of Ceylon; Mortarji

Desai, Minister of Finance of India; Victor Urquidi, President of

Mexican Economic Society; Fritz Erler, Co-Chairman of the Socialist

Group in the German Bundestag; Tom Mboya, Member of the Kenya

Legislative Council; Sir Grantley H. Adams, Prime Minister of the West

Indies Federation; Theodore Kollek, Director-General of the Office of

the Prime Minister of Israel; Dr. Gikomyo W. Kiano, member of the Kenya

Legislative Council.

Officials of communist governments, in addition to those already listed,

who spoke to the Council that year, included Oscar Lange, Vice-President

of the State Council of the Polish People's Republic; and Marko Nikezic,

Ambassador of Yugoslavia to the United States.

* * * * *

Throughout this book, I show the close inter-locking connection between

the Council on Foreign Relations and many other organizations. The only

organizations formally affiliated with the Council, however, are the

Committees on Foreign Relations, which the Council created, which it

controls, and which exist in 30 cities: Albuquerque, Atlanta,

Birmingham, Boise, Boston, Casper, Charlottesville, Denver, Des Moines,

Detroit, Houston, Indianapolis, Little Rock, Los Angeles, Louisville,

Nashville, Omaha, Philadelphia, Portland (Maine), Portland (Oregon),

Providence, St. Louis, St. Paul-Minneapolis, Salt Lake City, San

Francisco, Seattle, Tucson, Tulsa, Wichita, Worcester.

A booklet entitled _Committees on Foreign Relations: Directory of

Members, January, 1961_, published by the Council on Foreign Relations,

contains a roster of members of all the Committees on Foreign Relations,

except the one at Casper, Wyoming, which was not organized until later

in 1961. The booklet also gives a brief history of the Committees:

"In 1938, with the financial assistance of the Carnegie Corporation

of New York, the Council began to organize affiliated discussion

groups in a few American cities....

"Each Committee is composed of forty or more men who are leaders in

the professions and occupations of their area--representatives of

business, the law, universities and schools, the press, and so on.

About once a month, from October through May, members come together

for dinner and an evening of discussion with a guest speaker of

special competence.... Since the beginning in 1938, the Carnegie

Corporation of New York has continued to make annual grants in

support of the Committee program."

The following information about the Committees on Foreign Relations is

from the 1960-61 Annual Report of the Council on Foreign Relations:

"During the past season the Foreign Relations Committees carried on

their customary programs of private dinner meetings. In all, 206

meetings were held....

"The Council arranged or figured in the arrangement of about

three-quarters of the meetings held, the other sessions being

undertaken upon the initiative of the Committees. Attendance at the

discussions averaged 28 persons, slightly more than in previous

years and about the maximum number for good discussion. There was

little change in membership--the total being just under 1800. It

will be recalled that this membership consists of men who are

leaders in the various professions and occupations....

"On June 2 and 3, the 23rd annual conference of Committee

representatives was held at the Harold Pratt House. Mounting

pressures throughout the year ... made it advisable to plan a

conference program that would facilitate re-examination of the

strategic uses of the United Nations for American Policy in the

years ahead. Accordingly, the conference theme was designated as

_United States Policy and the United Nations_. Emphasis was upon

re-appraisal of the United States national interest in the United

Nations--and the cost of sustaining that interest....

"In the course of the year, officers and members of the Council and

of the staff visited most of the Committees for the purpose of

leading discussions at meetings, supervising Committee procedures

and seeking the strengthening of Committee relations with the

Council."

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