US general Douglas Macarthur and Emperor Hirohito. September 1945

“And the corruption, it would appear, runs deep indeed. The Seagraves claim that huge quantities of war loot remain to this day stashed in the vaults of well-known international financial institutions such as Citibank, Chase, Hongkong & Shanghai Banking Corporation (HSBC), and Union Banque Suisse (UBS). One of the key characters in the Seagraves’ book is a mysterious man of many identies named Severino Garcia Diaz Santa–known to his friends simply as “Santy”–revealed in the new edition to have been an agent of the Vatican secret services. Involved in the torture of Major Kojima, General Yamashita’s driver in the last year of the war, Santy was able to extract the locations of more than a dozen Golden Lily treasure vaults in the mountains north of Manila, two of which were immediately and easily opened. In the decades following the end of the war, Santy played the role of gatekeeper in an organization referred to as “The Umbrella,” set up to move gold from the Philippines “to 176 bank accounts in 42 countries,” according to a letter written in 1991 by former Justice Department attorney Robert Ackerman [1,p.227]. Hounded relentlessly by Philippine President Ferdinand Marcos, Santy became worried and took steps to protect himself, hiring a bookkeeper named Tarciana Rodriguez who he put “in charge of billions in cash, bullion, gold certificates, stocks and other assets all over the world.” When he finally slipped into a state of deep alcoholic depression leading to his death in 1974, “The Man With No Name,” as he was often called, left behind a fortune conservatively estimated at $50 billion to his fourteen heirs [1,p.150]. The largest single account, stored at Union Banque Suisse, is claimed to contain 20,000 metric tons of gold bullion alone, this according to original UBS documents reproduced on the Gold Warriors CDs [1,p.222-223].

Attempts to recover this fortune brought the legitimate heirs to Santy’s estate face-to-face with the seedy underbelly of corporate finance. Santy’s common-law wife Luz Rambano is reported to have met with a vice-president of UBS in Geneva, who told her, according to an American friend who was with her at the time, that “he wouldn’t recommend her trying to claim this account while she was in Switzerland, because before the bank or even the government of Switzerland would agree to allow her to take what this account represented, they would not be beyond having her killed first” [1,p.224].

Similar results were reported in encounters with other banks. Faced with stonewalling from HSBC and Sanwa Bank, efforts eventually turned to Citibank, and in December 1990 Tarciana travelled to Manhatten to meet with then-CEO John Reed. “According to Santy’s own records and documents Tarciana had with her,” the Seagraves write, “Citibank held 4,700 metric tons of gold bullion belonging to Santy’s Estate.” Employing a well-known technique, Reed reportedly responded to the claims by hiring a phalanx of lawyers and moving Santy’s assets offshore, to Cititrust in the Bahamas. The case was later taken up by attorney Mel Belli, who charged that “Reed and Citibank have systematically sold and are selling said gold bullion to buyers and converting the sale proceeds to their own use” [1,p. 230]. Belli, however, died in 1996 with the case still pending. Reed was later ousted by Citibank under allegations of money laundering.”

Golden Lily Operation: the Treasure of Japanese Criminals
by Denis Boneau   / 8 November 2004

In 1895, Queen Min was burned alive by a group of murderers of the Black Ocean Society, an ultranationalist group led by legendary Mitsuru Toyama. The operation, aimed at destabilizing the Korean government, constituted one of the elements of the conquering strategy used by the Japanese secret service designed in conjunction with the yakusas of Toyama. The assassination of the Queen gave rise to the “incident” that justified the progressive invasion against Korea. In 1905, the country became a protectorate of Japan. The ultranationalist societies began the looting operations while the underworld chiefs took on key positions. With the support of the imperial government, Ryohei Uchida, chief of the Black Dragon Society, and Toyama’s right hand, put together the militias in charge of extorting money from Korean rich families. In 1910, Korea was fully annexed. The military chief, general Yamagata, commissioned Terauchi to undertake the secret police activities, which had initially been established by Black Dragon. The kempeitai carefully arranged the plundering of the territory, with the support of the Toyama and Uchida’s militias. Officially, Japan attempted to Project Southeast Asia from the Western settlers, by founding a “sphere of joint prosperity”. The Japanese imperial dynasty really oversaw the ongoing plundering of the country, stealing gold and masterpieces (the valued celadon porcelain), destroying the cultural heritage (Buddhism temples) with the clear intention of doing away with the Korean identity.

Ryoichi Sasakawa

A similar system was established in Manchuria, under the command of Nobusuke Kishi and the yakusa societies. The annexed territory enabled Japan to control the access by sea to the commercial ports in the North of China. The puppet government was then under the domain of the tairiki ronin -officers, chief warriors, drug traffickers… Entrepreneurial Yakusas made up true private armies to plunder territories on behalf of the Emperor, or they formed an alliance with the Chinese patrons of the Green Band to control the distribution networks of opium and its by-products. Ryoichi Sasakawa [1] and Yoshio Kodama [2] therefore amassed great fortunes, which at the end of the war, would allow them to finance the creation of the almighty Liberal Democratic Party (LDP).

The chiefs of these groups of criminals with expeditious methods were Nobusuke Kishi and his clan, which included general Hideki Tojo (chief of the secret policy and future Prime Minister of the Government during the war years), Hoshino Naoki (chief of the opium monopoly), Matsuoka Yosuke (chairman of Mantsetsu corporation) and Aikawa Gisuke (Nissan leader). They planned the looting operations with the complicity of the Emperor.

JPEG - 5.8 kb Yoshio Kodama

They founded the Manchues Heavy Industry Company, an organization that coordinated the development of the industry and concentrated the booty that the army and the yakusas had looted from the local population, through the use of different methods such as demanding ransoms, extorting money, robbing banks… The conquering obsession upset Western leaders, who feared that Japan might interfere in their own colonies and concessions. In 1936, in the midst of the full plundering of Korea, the Japanese strategists hesitated between two choices. One of the tactics was to take control of Siberia, a territory with abundant natural resources, to set up a security area in front of the Soviet Union, main rival in the region. This “anticommunist” strategy had the merit of pleasing one part of the West elite.

For this purpose, the Ambassador to London, Yoshida, attempted to set up an alliance with the British, resorting to the support of the Cliveden group. Several ultraconservatives in the United States, like former President, Herbert Hoover, or the Nazi pilot, Charles Lindberg, and officers close to general MacArthur, favored an understanding with the imperial dynasty. Prince Chichibu, Hirohito’s brother, traveled to London in 1936 to arrange a potential Anglo-Japanese alliance. It was likely that the possibility to create an anticommunist front seduced the British diplomats; however the advance of the Japanese troops in Asia threatened the European powers’ colonies. Very soon, Chichibu was deprived of every means of negotiation.

The army was totally out of control in China. In 1937, several officers were plotting the Marco Polo incident in China, which resulted in the invasion of the country by the Japanese troops with the unofficial support of the Emperor. Prince Chichibu declined the already obsolete idea of setting up and Anglo-Japanese alliance and flew to Nuremberg where chancellor Adolph Hitler was participating in a meeting [3]. When President Franklin D. Roosevelt declared that he wanted to put an end to the conquering «obsession» of Japan, the invading army was getting ready to commit an unprecedented massacre ordered by an imperial prince. As a matter of fact, prince Konoe, a “moderate” Prime Minister, commissioned prince Asaka to head the Nankin army. The latter ordered his troops not to leave any prisoner in the city. For days, the soldiers followed his orders very strictly. Tens of thousands of Chinese were murdered under horrifying circumstances in the face of many West witnesses. The soldiers «used» men as mannequin to learn how to use the bayonet and officers as a way to practice the beheading rituals. Women and girls were victims of collective rapes in front of their families. In the mean time, princes Chichibu and Takeda made sure that the booty of the plundering ended up in the hands of the imperial dynasty. The experts audited every banking document while the secret police tortured every suspect of having information on Nankin’s gold and fortune [4]. Japanese prince and general Chichibu, Hirohito’s brother, visited a colony of boy-scouts.

To make sure that the army did not unnecessarily squander the plundered products, Hirohito set up the Golden Lily, an organization that gathered experts in money extortion (accountants, finance professionals …), yakusa chiefs and powerful industrialists under the command of imperial princes, the only people the Emperor fully trusts in. Prince Chichibu was in charge of supervising the entire group [5]. In 1941, the regime of Philippe Petain authorized Japan to occupy the North of Indochina. Prince Konoe favored a “negotiated peace” but he was unable to convince Hirohito and he resigned. The Emperor, determined to declare war, appointed general Tojo in his place, who was one of the men of the Kishi clan that masterminded the systematic plundering of Manchuria.

The “surprise attack” [6] against Pearl Harbor was a sign that unleashed a Japanese offensive in Southeast Asia. Japan invaded Thailand, Sumatra, Burma, occupied Guam and Hong Kong. Japan also expelled general Macarthur from his feud in the Philippines. The new annexed territories were systematically plundered by the kempetai. Prince Chichibu established the general headquarters of Golden Lily in Singapore where the entire booty was sent to be inventoried by specialists. In the Philippines, the western banks were the main target of the Golden Lily experts who took possession of the Philippines treasure to benefit Yokohama Specie Bank, whose main shareholder was Hirohito himself, and the Bank of Taiwan, another state bank. Part of the gold was used to finance the war. Swiss, Portuguese, Argentinean and Chilean banks were in charge of the laundering. The fortune stolen by the kempetai and the Golden Lily agents was taken to Singapore, and then to Manila to be eventually sent to Japan. After the battle of Midway, the balance of military forces in Southeast Asia moved towards the United States. Japan lost control of sea routes. Hirohito and the imperial princes began to think of a potential defeat of the Empire. From then on, Golden Lily operation, headed by Chichibu, who officially underwent a tuberculosis treatment in the base of mount Fuji, consisted of saving the war booty stuck in Manila. Firstly, Chichibu had used the hospital-ships to transport the gold that was later on put in underground deposits built in the Japanese mountains.

In 1943, that solution was not applicable any more since the United States was in a position to impose an effective maritime blockade. The fortune began to pile up in the Manila harbor. Prince Chichibu then put together a group of engineers specialized in the construction of underground nets, and began to conceal the booty in underground hiding places. In Manila, he used the underground systems of Intramurom, an old Spanish city that provided great storage capacity. A gallery that allowed a discreet transfer of goods connected the harbor directly with Intramuro. Chichibu selected historical places, like churches, universities, and a whole series of places where the bombing risk was minimal. Prince Takeda used caves and supervised the construction of tunnel nets in the North of Manila. Specialists set up big quantities of ingenious and terribly effective traps: bombs, cyanide capsules, water and sand traps… Another prince, Takahito Asaka, son of the perpetrator of the Nankin slaughter, and general Yamashita, hero of the Singapore actions were sent to the Philippines to face the imminent US attack and participate in burial operations. Engineers and slaves were constantly buried alive.

When MacArthur began the reconquering of the Philippines, the princes try to quickly hide what they had not been able to bury yet. Ships loaded with gold were sunken with their crews on board. After Japan’s defeat that finished its occupation with the slaughter of civilians in Manila, the princes escaped in submarines. The American secret services knew about the Golden Lily operation since 1945. John Ballinger, an agent, disguised as a fisherman could observe the unloading of boxes full of gold that had been carried in a hospital-ship. MacArthur arrested its rival Yamashita and entrusted one of his own agents the mission to interrogate major Kojima – the Japanese general’s driver.

Severino García Santa Romana obtained numerous pieces of information on Yamashita’s itineraries and, in this way, he was able to locate several hiding places. “Santy” became then the guardian of “Yamashita’s treasure”. He remained at the beginning under the command of MacArthur until the enigmatic Edward Landsale [7], former-agent of the OSS, who had recently joined the G-2 services of general Willoughby [8], took command of the operations.

After submitting the issue to president Truman, they decided that the recovered booty would be used to raise money to create a fund against communism, known as Black Eagle. The project, conceived by an advisor to Roosevelt, consisted of using the gold stolen by Germany, Italy and Japan to finance pro-American governments and, consequently, to manipulate, with the use of money, elections in the core of several “democracies” threatened by the “red danger”. With the help of Robert Anderson, a money laundering specialist, the gold that Santy had recovered was dispersed in 170 bank accounts, opened in 42 countries. The banking network of the CIA allowed therefore to hide again the fortune stolen from Southeast Asia and to keep the gold prices at a convenient level for the economic interests of the United States [9].

The booty seized by the American authorities was deposited in three different secret funds at the beginning. The Yotsuya fund financed the most unthinkable activities of MacArthur’s right hand, the boss of G-2, Charles Willoughby, admirer of general Franco and of the fascist police methods. The second fund, baptized with the name of Joseph Keenan, prosecutor at the Tokyo trial, Japanese equivalent to the Nuremberg trial, had a very precise function: to bribe witnesses to exonerate the members of the imperial dynasty, who had become MacArthur’s allies in the struggle against communism. The Tokyo trial was a true farce that ended up in the hanging of a handful of scapegoats. Prince Asaka, perpetrator of the Nankin massacres, was not even summoned while general Matsui, accused of a crime in which he didn’t participate, was sentenced to hang. Yamashita, general MacArthur’s great rival, had the same fate; he was condemned for slaughtering civilians in Manila. General Tojo was found as main guilty and forced to take on responsibility for the war, instead of Emperor Hirohito.

The most strategic fund was certainly the M-Fund dedicated to the financing of the fight to prevent communists or social democrats from taking over power in Japan. After the war, an ephemeral socialist government was quickly discredited -thanks to the financing of the M-Fund- by the United States’ favorite, Shigeru Yoshida. This fund was also used to finance an official history about the Japanese defeat. That was the way in which Yoshio Kodama published his memoirs “I was defeated”. The book, financed by the CIA with the M-Fund, was good to exonerate the future Japanese strong men, ultranationalist supported by general MacArthur, such as Ryoichi Sasakawa and Nobusuke Kishi. The peace treaty is signed in 1951. Article 14 provided that Japan didn’t have the necessary resources to indemnify its victims. The existence of the Golden Lily, which turned into the Black Eagle, had to remain a secret.

After 1952, a board, headed by CIA members and the Japanese secret services, became responsible for the M-Fund. Thanks to the fund, Nobusuke Kishi, head of the Manchuria plundering and former Minister of Tojo’s war government, won the election. Eisenhower’s administration liked the extremely anticommunist war criminal. The M-Fund financed the election of several prime ministers, such as Kakuei Tanaka, Noboru Takeshita, Yasuhiro Nakasone and Miyazawa Kichii. Tanaka, to whom Nixon had promised the exclusive administration of the M-Fund, resorted very often to finance elections and dirty maneuvers. Part of the Golden Lily money was invested in Japan and was squandered by those who decided who was to be the future prime minister selected from the Liberal Democratic Party membership, which monopolized the power during 50 years.

The Marcos clan, new guardian of the Golden Lily
Many hiding places could not be controlled by Santy and MacArthur’s services in the Philippines. Marcos, Washington’s turbulent protégés, won the 1965 elections thanks to the “Yamashita’s gold”. Since the 1960’s, Ferdinand and Imelda Marcos tried to contact Santy, the legendary guardian of the Golden Lily. Knowing that Santy had numerous bank accounts, they thought that some of them might have been forgotten by the CIA and they wanted to control them. When Santy died, in 1974, Marcos became the new unofficial guardian of the Golden Lily and cooperated this way with American and Japanese teams. To locate the hiding places, the dictator used Ben Valmores, a Philippine peasant that had been prince Takeda’s servant. Marcos was able to accumulate important quantities of gold but the search operations were very complicated. The easiest thing was to ally with Japanese people that knew the location of the hiding places. Marcos resorted to Ryoichi Sasakawa, a war criminal and Mussolini’s admirer who then became part -after the Japanese defeat- of the restricted circle of new masters on Japan. Sasakawa was the ideal partner. He discreetly withdrew the gold deposited in the Lubang island and probably carried out the money laundering through his Philippine-Japanese Mutual Aid Association. At the beginning, Washington supported Marcos and Sasakawa’s anticommunist activities, and turned a blind eye [10].

However, Marcos sought to work on his own and recruited two partners, a clairvoyant who claimed to have located, thanks to his gifts, the remains of the Nachi ship, and a specialist in metallurgy. Robert Curtis would be in charge of “sanctifying the gold”, in other words, he would have to find the means to adapt the booty so that it could be used in the world market without attracting people’s attention. To finance his facilities, Curtis resorted to John Birch Society, an extreme right group specialized in anticommunist operations, which had colonel Lawrence Bunker among its members. Bunker, in his capacity as former-collaborator of MacArthur, was aware of the existence of the Golden Lily.

When president Reagan planned to return to the gold standard, he asked Marcos to share part of his reserves. The dictator’s greed would be his misfortune. Paul Wolfowitz (in his capacity as Undersecretary of State) ordered the American secret services to kidnap Ferdinand and Imelda Marcos and they were sent to exile in Hawaii [11]. Marcos’s reserves would have been sent to United States.

Many people still continue to covet the booty of the Golden Lily, the result of more than 50 years of systematic plundering of Southeast Asia by Japan. According to Sterling and Peggy Seagrave, since March 2001 the Bush administration (with Paul Wolfowitz as Secretary of Defense) has sent commands to the Philippines to recover part of Marcos’ reserves and to supervise new excavations. The control of what remains of “Yamashita’s gold” is still an extremely important objective for those interested in accepting the full disclosure of the existence of the Golden Lily. The access to the files on the Black Eagle fund was under the strictest control by the CIA.

[1] «Sasakawa, a respected war criminal», by Denis Boneau, Voltaire, January 21, 2005
[2] Kodama was commissioned to take control of drug trafficking operations in China. In this respect, he established an alliance with the Green Band and gradually became its main opium supplier. He established the Kodama kikan in Shanghai, a real machine to turn illegal drugs into gold and ships goods of the Golden Lily. «Yoshio Kodama, the yakusa of the CIA», by Denis Boneau, Voltaire, January 22, 2005
[3] Sterling and Peggy Seagrave, La dynastie du Yamoto, Histoire secrète de la dynastie impériale, Éditions Michalon, 1999, France
[4] They obtained this way several millions of tons of gold in Nankin. The kempeitai had systematically controlled the gold and jewels, as well as the furniture and mirrors of people, while the Golden Lily experts found the bank leaders
[5] Sterling y Peggy Seagrave, Golden Lily Operation, Le scandaleux secret de la guerre du Pacifique ou comment les États-Unis ont utilisé le trésor de guerre japonais pour financer la Guerre froide. (Golden Lily Operation, the secret scandal in the Pacific war or how the USA had used the Japanese war treasure to finance the Cold War), Éditions Michalon, 2002. Original title: Gold warriors
[6] Recently declassified documents have proved that the United States had predicted the attack and had prepared for it a year before. Cf «Remember Pearl Harbor!» text in French, by Paul Labarique, Voltaire, March 17, 2004
[7] General Edward Landsale was taken as a reference by the United States army in the area of psychological war
[8] The G-2 of general Willoughby equals in Asia what used to be the X-2 of James Jesus Angleton in Europe. Both counterespionage units were used to recruit and retrain enemy agents that would make up the stay-behind network to fight against communism. Cf. «Stay behind: the US destabilization and interference networks» by Thierry Meyssan, Voltaire, July 20, 2001
[9] Let us remember that the Bretton Woods agreement, signed after the end of World War Two, were the foundations to reorganize the world economy based on the dollar-gold convertibility
[10] «La Liga Anticomunista Mundial, internacional del crimen» by Thierry Meyssan, Voltaire, January 20, 2005
[11] Gaston Sigur, Paul Wolfowitz and Richard Armitage led the operation through which the Marcos couple was taken by force out of the Philippines.

The Looting of Asia
by Chalmers Johnson /  20 November 2003
Review of Gold Warriors: America’s Secret Recovery of Yamashita’s Gold
by Sterling Seagrave and Peggy Seagrave

It may be pointless to try to establish which World War Two Axis aggressor, Germany or Japan, was the more brutal to the peoples it victimised. The Germans killed six million Jews and 20 million Russians; the Japanese slaughtered as many as 30 million Filipinos, Malays, Vietnamese, Cambodians, Indonesians and Burmese, at least 23 million of them ethnic Chinese. Both nations looted the countries they conquered on a monumental scale, though Japan plundered more, over a longer period, than the Nazis. Both conquerors enslaved millions and exploited them as forced labourers – and, in the case of the Japanese, as prostitutes for front-line troops. If you were a Nazi prisoner of war from Britain, America, Australia, New Zealand or Canada (but not Russia) you faced a 4 per cent chance of not surviving the war; the death rate for Allied POWs held by the Japanese was nearly 30 per cent.

The real differences between the two nations, however, developed in the years and decades after 1945. Survivors and relatives of victims of the Holocaust have worked for almost six decades to win compensation from German corporations for slave labour and to regain possession of works of art stolen from their homes and offices. Litigation continues against Swiss banks that hid much of the Nazi loot. As recently as July 2001, the Austrian Government began to disburse some $300 million out of an endowment of almost $500 million to more than 100,000 former slave labourers. The German Government has long recognised that, in order to re-establish relations of mutual respect with the countries it pillaged, serious gestures towards restitution are necessary. It has so far paid more than $45 billion in compensation and reparations. Japan, on the other hand, has given its victims a mere $3 billion, while giving its own nationals around $400 billion in compensation for war losses.

One reason for these differences is that victims of the Nazis have been politically influential in the US and Britain, forcing their Governments to put pressure on Germany, whereas Japan’s victims live in countries that for most of the postwar period were torn by revolution, anticolonial movements and civil wars. This has begun to change with the rise of Sino-American activists. The success of Iris Chang’s The Rape of Nanking (1997), a book the Japanese establishment did everything in its power to impugn, heralded the emergence of this group.

More significant, however, are differences in US Government policies towards the two countries. From the moment of Germany’s defeat, the United States was active in apprehending war criminals, denazifying German society, and collecting and protecting archives of the Nazi regime, all of which have by now been declassified. By contrast, from the moment of Japan’s defeat, the US Government sought to exonerate the Emperor and his relatives from any responsibility for the war. By 1948, it was seeking to restore the wartime ruling class to positions of power (Japan’s wartime minister of munitions, Nobusuke Kishi, for example, was prime minister from 1957 to 1960). The US keeps many of its archives concerned with postwar Japan highly classified, in violation of its own laws.

Most important, John Foster Dulles, President Truman’s special envoy to Japan charged with ending the occupation, wrote the peace treaty of 1951 in such a way that most former POWs and civilian victims of Japan are prevented from obtaining any form of compensation from either the Japanese Government or private Japanese corporations who profited from their slave labour. He did so in perfect secrecy and forced the other Allies to accept his draft (except for China and Russia, which did not sign). Article 14(b) of the treaty, signed at San Francisco on 8 September 1951, specifies: ‘Except as otherwise provided in the present Treaty, the Allied Powers waive all reparations claims of the Allied Powers, other claims of the Allied Powers and their nationals arising out of any actions taken by Japan and its nationals in the course of the prosecution of the war, and claims of the Allied Powers for direct military costs of occupation.’ As recently as 25 September 2001, three former American Ambassadors to Japan – Thomas Foley, a former Speaker of the House of Representatives, Michael Armacost, the president of the Brookings Institution, and Walter Mondale, Carter’s Vice-President – wrote a joint letter to the Washington Post denouncing Congress for its willingness even to think about helping former American slave labourers get around the treaty.

Why do these attitudes protecting and excusing Japan persist? Why has the US pursued such divergent policies towards postwar Germany and Japan? Why was the peace treaty written in the way it was? Many reasons have been offered over the years, including that Japan was too poor to pay, that these policies were necessary to keep postwar Japan from ‘going Communist’, and that the Emperor and Japanese people had been misled into war by a cabal of insane militarists, all of whom the occupation had eliminated from positions of responsibility. The explanation offered in the Seagraves’ book is considerably more sinister. It concerns what the United States did with Japan’s loot once it discovered how much of it there was, the form it took, and how little influence its original owners had.

Almost as soon as the war was over, American forces began to discover stupendous caches of Japanese war treasure. General MacArthur, in charge of the occupation, reported finding ‘great hoards of gold, silver, precious stones, foreign postage stamps, engraving plates and . . . currency not legal in Japan’. His officials arrested the underworld boss Yoshio Kodama, who had worked in China during the war, selling opium and supervising the collection and shipment to Japan of industrial metals such as tungsten, titanium and platinum. Japan was by far the largest opium producer in Asia throughout the first half of the 20th century, initially in its colony of Korea and then in Manchuria, which it seized in 1931. Kodama supplied heroin and liquor to occupied China in return for gold coins, jewellery and objets d’art, which the Japanese melted down into ingots.

Kodama returned to Japan after the surrender immensely rich. Before going to prison he transferred part of his booty to the conservative politicians Ichiro Hatoyama and Ichiro Kono, who used the proceeds to finance the newly created Liberal Party, precursor of the party that has ruled Japan almost uninterruptedly since 1949. When Kodama was released from prison, also in 1949, he went to work for the CIA and later became the chief agent in Japan for the Lockheed Aircraft Company, bribing and blackmailing politicians to buy the Lockheed F-104 fighter and the L-1011 airbus. With his stolen wealth, underworld ties and history as a supporter of militarism, Kodama became one of the godfathers of pro-American single-party rule in Japan.

He was not alone in his war-profiteering. One of the Seagraves’ more controversial contentions is that the looting of Asia took place under the supervision of the Imperial household. This contradicts the American fiction that the Emperor was a pacifist and a mere figurehead observer of the war. The Seagraves convincingly argue that after Japan’s full-scale invasion of China on 7 July 1937, Emperor Hirohito appointed one of his brothers, Prince Chichibu, to head a secret organisation called kin no yuri (‘Golden Lily’) whose function was to ensure that contraband was properly accounted for and not diverted by military officers or other insiders, such as Kodama, for their own enrichment. Putting an Imperial prince in charge was a guarantee that everyone, even the most senior commanders, would follow orders and that the Emperor personally would become immensely rich.

The Emperor also posted Prince Tsuneyoshi Takeda, a first cousin, to the staff of the Kwantung Army in Manchuria and later as his personal liaison officer to the Saigon headquarters of General Count Hisaichi Terauchi, to supervise looting and ensure that the proceeds were shipped to Japan in areas under Terauchi’s control. Although assigned to Saigon, Takeda worked almost exclusively in the Philippines as second in command to Chichibu. Hirohito named Prince Yasuhiko Asaka, his uncle, to be deputy commander of the Central China Area Army, in which capacity he commanded the final assault on Nanking, the Chinese capital, between 2 December and 6 December 1937, and allegedly gave the order to ‘kill all captives’. The Japanese removed some 6000 tonnes of gold from Chiang Kai-shek’s treasury and the homes and offices of the leaders of Nationalist China. All three princes were graduates of the military academy and all three survived the war; Chichibu died in 1953 of tuberculosis but the other two lived to a very ripe old age.

With the Japanese capture in the winter and spring of 1941-42 of all of South-East Asia, including the Philippines and Indonesia, the work of Golden Lily increased many times over. In addition to the monetary assets of the Dutch, British, French and Americans in their respective colonies, Golden Lily operatives absconded with as much of the wealth of the overseas Chinese populations as they could find, tore gilt from Buddhist temples, stole solid gold Buddhas from Burma, sold opium to the local populations and collected gemstones from anyone who had any. The gold was melted down into ingots at a big Japanese-run smelter in Ipoh, Malaya and marked with its degree of purity and weight. Chichibu and his staff inventoried all this plunder and put it aboard boats, usually disguised as hospital ships, bound for Japan. There was no overland route to Korea, the closest point on the mainland to Japan, until very briefly in late 1944.

A lot of gold and gems were lost as a result of American submarine warfare; and by early 1943, it was no longer possible for the Japanese to break through the Allied blockade of the main islands except by submarine. Chichibu therefore shifted his headquarters from Singapore to Manila and ordered all the shipments to head for Philippine ports. He and his staff reasoned that the war would end with a negotiated settlement, and they believed (or imagined) that the Americans could be persuaded to transfer the Philippines to Japan in return for an end to the war. From 1942, Chichibu supervised the building of 175 ‘Imperial’ storage sites to hide the treasure until after the war was over. Slave labourers and POWs dug tunnels and caves and then were invariably buried alive, often along with Japanese officers and soldiers, when the sites were sealed to keep their locations secret. Each cache was booby-trapped, and the few extant Golden Lily maps are elaborately encoded to hide exact location, depth, air vents (if any) and types of booby trap (e.g. large aerial bombs, sand traps, poison gases). In Manila itself, Golden Lily constructed treasure caverns in the dungeon of the old Spanish Fort Santiago, within the former American military headquarters (Fort McKinley, now Fort Bonifacio), and under the cathedral, all places the Japanese rightly assumed the Americans would not bomb. As the war came to an end, Chichibu and Takeda escaped back to Japan by submarine.

Soon after the liberation of the Philippines, American special agents began to discover a few of the hidden gold repositories. The key figure was a Filipino American born in Luzon in either 1901 or 1907 named Severino Garcia Diaz Santa Romana (and several other aliases), who in the mid-1940s worked for MacArthur’s chief intelligence officer, General Willoughby. As a commando behind the lines in the Philippines he had once witnessed the unloading of heavy boxes from a Japanese ship, their being placed in a tunnel, and the entrance being dynamited shut. He had already suspected what was going on. After the war, Santa Romana was joined in Manila by Captain Edward Lansdale of the OSS, the CIA’s predecessor. Lansdale later became one of America’s most notorious Cold Warriors, manipulating governments and armies in the Philippines and French Indo-China. He retired as a major-general in the Air Force.

Together, Santa Romana and Lansdale tortured the driver of General Tomoyuki Yamashita, Japan’s last commander in the Philippines, forcing him to divulge the places where he had driven Yamashita in the last months of the war. Using hand-picked troops from the US Army’s Corps of Engineers, these two opened about a dozen Golden Lily sites in the high valleys north of Manila. They were astonished to find stacks of gold ingots higher than their heads and reported this to their superiors. Lansdale was sent to Tokyo to brief MacArthur and Willoughby, and they, in turn, ordered Lansdale to Washington to report to Truman’s national security aide, Clark Clifford. As a result, Robert Anderson, on the staff of the Secretary of War, Henry Stimson, returned to Tokyo with Lansdale and, according to the Seagraves, then flew secretly with MacArthur to the Philippines, where they personally inspected several caverns. They concluded that what had been found in Luzon, combined with the caches the Occupation had uncovered in Japan, amounted to several billion dollars’ worth of war booty.

“The Americans discovered treasure vaults with gold stacked high to the ceiling”

Back in Washington, it was decided at the highest levels, presumably by Truman, to keep these discoveries secret and to funnel the money into various off-the-books slush funds to finance the clandestine activities of the CIA. One reason, it has been alleged, was to maintain the price of gold and the system of fixed currency exchange rates based on gold, which had been decided at Bretton Woods in 1944. Just like the South African diamond cartel, Washington’s plotters feared what would happen if this much ‘new’ gold was suddenly injected into world markets. They also realised that exposure of the Imperial household’s role in the looting of Asia would destroy their by now carefully constructed cover story of the Emperor as a peaceful marine biologist. Washington concluded that even though Japan, or at least the Emperor, had ample funds to pay compensation to Allied POWs, because of the other deceptions, the peace treaty would have to be written in such a way that Japan’s wealth would remain secret. The treaty therefore gave up all claims for compensation on behalf of American POWs. To keep the Santa Romana-Lansdale recoveries secret, MacArthur also decided to get rid of Yamashita, who had accompanied Chichibu on many site closings. After a hastily put-together court martial for war crimes, Yamashita was hanged on 23 February 1946.

On orders from Washington, Lansdale supervised the recovery of several Golden Lily vaults, inventoried the bullion, and had it trucked to warehouses at the US Naval base at Subic Bay or the Air Force base at Clark Field. According to the Seagraves, two members of Stimson’s staff, together with financial experts from the newly formed CIA, instructed Santa Romana in how to deposit the gold in 176 reliable banks in 42 different countries. These deposits were made in his own name or in one of his numerous aliases in order to keep the identity of the true owners secret. Once the gold was in their vaults, the banks would issue certificates that are even more negotiable than money, being backed by gold itself. With this seemingly inexhaustible source of cash, the CIA set up slush funds to influence politics in Japan, Greece, Italy, Britain and many other places around the world. For example, money from what was called the ‘M-Fund’ (named after Major-General William Marquat of MacArthur’s staff) was secretly employed to pay for Japan’s initial rearmament after the outbreak of the Korean War, since the Japanese Diet itself refused to appropriate money for the purpose. The various uses to which these funds were put over the years, among them helping to finance the Nicaraguan counter-revolutionaries in their attacks on the elected government in Managua (the Iran-Contra scandal of the Reagan Presidency), would require another volume. Suffice it to say that virtually everyone known to have been involved with the secret CIA slush funds derived from Yamashita’s gold has had their career ruined.

Santa Romana died in 1974, leaving several wills, including a final holographic testament, naming Tarciana Rodriguez, a Filipina who was the official treasurer of his various companies, and Luz Rambano, his common-law wife, as his main heirs. They set out to recover the gold since, after all, it was in his name in various banks and they had custody of all the account books, secret code names, amounts, records of interest paid, and other official documents proving its existence. Using the famous San Francisco attorney Melvin Belli as her representative, Rambano actually filed a suit against John Reed, then CEO of Citibank in New York and today president of the New York Stock Exchange, charging him with ‘wrongful conversion’: that is, selling $20 billion of Santa Romana’s gold and converting the proceeds to his own use. The Seagraves vividly describe the extraordinary meetings that took place between Rambano and Reed, with phalanxes of lawyers on both sides, in Citibank’s boardroom in New York. Reed apparently ordered the gold moved to Cititrust in the Bahamas.

Santa Romana and Lansdale by no means discovered all the Golden Lily sites. Over the years, a cottage industry developed of treasure hunters digging holes in obscure places in Luzon, often claiming they were looking for the remains of family or lovers. A regular feature of life in the village of Bambang, in the Cagayan Valley, Nueva Viscaya province – one of the places where Takeda was most active – is the appearance of elderly Japanese ‘tourists’ bearing not the usual bag of golf clubs but sophisticated metal detectors. This area of the Philippines is one where guerrillas of the New People’s Army are active, and it has no major tourist attractions. Many local Filipinos have gone into business as professional ‘pointers’, telling gullible visitors, for a fee, where to search, before skipping town.

Twenty years after Santa Romana stopped searching in 1947, a secondary – and quite violent – hunt for gold began, carried out by Ferdinand Marcos. Marcos recovered at least $14 billion in gold – $6 billion from the sunken Japanese cruiser Nachi in Manila Bay, and $8 billion from the tunnel known as ‘Teresa 2’, 38 miles south of Manila in Rizal province. During 2001, Philippine politics were rocked when the former solicitor-general Francisco Chavez alleged that Irene Marcos-Araneta, Marcos’s youngest daughter, maintained an account worth $13.2 billion in Switzerland. Its existence apparently came to light when she tried to move it from the Union Bank of Switzerland to Deutsche Bank in Düsseldorf. Marcos, who personally supervised the opening of at least six sites and routinely used his thugs to steal any treasure that local peasants happened to find, died in exile in Honolulu in 1989. In 1998, the Supreme Court of Hawaii affirmed a judgment against his estate for the astonishing sum of $1.4 billion in favour of a Filipino who retrieved a solid gold Buddha and then had it stolen from him by Marcos, who also had him tortured for protesting.

The key to Marcos’s discoveries was the services of one Robert Curtis, a Nevada chemist, metallurgist and mining engineer, whom Marcos hired to resmelt his gold, to bring it up to current international requirements for purity so that it could be marketed internationally. Curtis proved to be the only person who could decipher the few Golden Lily maps that survived, in the possession of Takeda’s former valet, a Filipino youth from Bambang. The Seagraves describe very thoroughly Curtis’s activities, including his narrow escape from death on the orders of Marcos’s henchman General Ver, after he struck gold at Teresa 2.

The authors seem to sense that they might have a credibility problem, and have therefore taken the unusual step of making available two CDs containing more than 900 megabytes of documents, maps and photographs assembled in the course of their research. The CDs can be ordered from their website ( These are invaluable, particularly in what they reveal of the US Government’s vicious sting operation against a former American deputy Attorney General, Norbert Schlei. Schlei represented about sixty Japanese people on whom the Japanese Government had unloaded huge promissory notes in an attempt to hide the M-Fund after the former Prime Minister Kakuei Tanaka was convicted of bribery. The Government persisted in calling these notes forgeries (thus engaging in another form of illegal conversion) and Schlei’s career was ruined. Gold Warriors is easily the best guide available to the scandal of ‘Yamashita’s gold’, and the authors play fair with their readers by supplying them with massive amounts of their raw research materials.

The Seagraves end their ‘authors’ note’ with these words: ‘As a precaution, should anything odd happen, we have arranged for this book and all its documentation to be put up on the Internet at a number of sites. If we are murdered, readers will have no difficulty figuring out who “they” are.’ Unfortunately, the list of potential killers from this book alone would include at least several thousand generals, spies, bankers, politicians, lawyers, treasure hunters and thieves from half a dozen countries. So I wish the Seagraves a long life. Meanwhile, a substantial portion of the treasure stolen by the Japanese from East Asian countries remains buried in the Philippines.

Reviews of Gold Warriors, by Sterling & Peggy Seagrave
Click below to open full length pdfs of the following reviews:

The Seagraves have uncovered one of the biggest secrets of the twentieth century. -Iris Chang, author of The Rape of Nanking

from Michael Collins Piper, American Free Press

“This, of course, means that Yamashita’s gold –which amounts to certainly hundreds of billions in value, probably trillions– was a real source of power and influence for Marcos and, in the end, proved not only to be a source of his rise to power, but, ultimately, his undoing. The Seagraves relate – echoeing The Spotlight – that when Marcos demanded a higher-than-usual commission for lending a portion of his gold horde to the Reagan administration in order to prop up a Reagan scheme to manipulate the world gold market, this was the beginning of Marcos’ downfall. As a consequence, then U.S. CIA-Director William Casey set in motion the riots and protests that began creating trouble for Marcos in the streets of Manila. Although Casey flew to Manila, along with U.S. Treasury Secretary Donald Regen, CIA economist Professor Higdon and an attorney, Lawrence Kreager, to give Marcos a “last chance,” the Philippine nationalist would not buckle. Higdon told Marcos that he would be out of power “in two weeks” for not appeasing the international banking houses and their agents in the American administration. The Seagraves report that a source close to Marcos advised them that Marcos was then approached by an emissary from David Rockefeller’s Trilateral Commission asking Marcos to contribute $54 billion in gold bullion to a so-called “global development fund.” Marcos’ response was to consign the Trilateral demand into a waste basket. In no short order, of course, Marcos was forced from office and flown to Hawaii with his family where they were held effectively under house arrest. Marcos and his wife told many people-including reporters from The Spotlight-that they had never expected to be taken to Hawaii, that they had, instead, expected to be flown to safety from Manila to Marco’s home island of Ilocos Norte. In the meantime, billions of dollars worth of gold certificates that the Marcos had taken with them were confiscated by the U.S. government. But when the Marcoses demanded the return of the certificates, the U.S. said the certificates were “fake.” In other words, the Reagan administration casually and ruthlessly stole billions from the Marcos, at the same time helping perpetuate the media myth that the Marcos family had stolen billions from their own nation’s treasury. (And it should be noted, for the historical record, that one of the key behind-the-scenes Reagan administration operatives plotting against Marcos was one Paul Wolfowitz, now internationally known today as one of the prime movers behind the American effort to depose Saddam Hussein-probably no coincidence considering Saddam’s refusal, like Marcos, to surrender his nation’s sovereignty to international banking interests.)”

from Robert D. Steele, review posted at

“Major players include Presidents Truman, Eisenhower, and Nixon, both Allen and John Foster Dulles, Douglas MacArthur, John McCloy, and the famous unconventional warrior Edward Lansdale. What we learn from this book is that those writing about “blowback” (the consequences of unwise US actions) have barely scratched the surface. What we learn is that rather than truly seeking to help the Japanese, Chinese, and other looted nations recover in the aftermath of WWII, the most senior leaders of the US government, no doubt with the best of intentions, actually conspired with Nazi bankers and the Japanese imperial family to create a Black Eagle Trust controlled by a very select hand-picked cabal in Washington. Originally used to fight communism, the Black Eagle Trust, according to the authors, quickly became a global slush fund used to bribe national leaders and manipulate elections around the world. This fund remains in existence today, making the Swiss Holocaust funds seem like loose-change. According to the authors, major banks are “addicted” to the funds and would face collapse if public investigations resulted in a forced return of this gold and related certificates to the rightful owners. The authors have produced a magnificent work of both scholarship and investigative journalism. They document the extent of Japanese looting of Korea (beginning in 1895) and China as well as the other countries in the “co-prosperity sphere.” They document the manner in which Japan hid most of the gold in the Philippines (some in Indonesia), and were forced to leave it there from 1943 onwards, when US submarine interdiction became too effective to risk shipments homeward. I found the level of detail in this book to be quite gripping. The ingenious nature of the Japanese burial sites, with caverns below the more obvious tunnels, with sea-water protection, with maps created in reverse–and the in-bred cruelty of the Japanese, thinking nothing of burying all of the US and other national slave labor *and the Japanese engineers* alive as the final stage of protecting the looted treasure, leave one stunned.

The authors document the central role played by Lansdale in recognizing the opportunity and then briefing MacArthur and then President Truman. According to the authors, the architects of the Black Eagle Trust were three advisors to President’s Roosevelt’s Secretary of War, Henry Stimson: John McCloy (later head of the World Bank), Robert Lovett (later Secretary of Defense), and Robert Anderson (later Secretary of the Treasury). They made the case to Roosevelt, and presumably to Truman after Roosevelt died, that it would be impractical to return the looted gold to the rightful owners, in part because many of the looted countries were now under Soviet control. The authors, who conducted many interviews in support of the work, including interviews of former CIA deputy director Ray Cline, who they say was involved with Lansdale and the gold in the 1940’s and remained involved with the black gold through the 1980’s, provide copies of documents showing the redirection of the looted gold to 176 bank accounts in 42 countries. The gold was then used to support the creation of gold bearer certificates that were in turned used to bribe the most senior officials around the world.

The authors tell a shocking tale of how quickly MacArthur chose to collaborate with the very leadership of Japan that declared war on the USA and was responsible for genocide and looting in Asia on a scale rarely achieved by anyone else. Bringing the story up to date, the authors show how prior attempts to investigate the Black Eagle Trust have led to the ruin of individuals such as Norbert Schlei, at one time deputy attorney general to Presidents Kennedy and Johnson. While I have no direct knowledge and cannot be certain myself, I believe the authors have provided a sufficiently compelling case to warrant an international investigation concurrently with a General Accounting Office investigation to be chartered by Congress with unlimited supeona powers specifically directed against classified personalities and archives. If this story is true, and I personally think that it is, then the US government, in active collusion with the very people the American people fought to defeat in WWII, has been guilty of fraud and depravity on a global scale and against the best interests of both the American people, and the against the rightful owners of the looted gold and other treasures.

from Douglas Valentine, author of The Hotel Tacloban & The Phoenix Program

“The Americans viewed this money as a War prize, and every American president from Harry Truman to George W. Bush has used the slush funds for various purposes. Truman, through a number of his top aides close to the Harrimans and the Rockefellers, set up the Black Eagle Trust Fund to fight communism. General MacArthur set up the Yotsuya Fund to finance Japan’s yakuza underworld, and one of his aides set up the M-Fund to help reconstruct Japan and turn it into an economic powerhouse. Eisenhower used the M-Fund to help create Japan’s Liberal Democratic Party in 1956, and in 1960, Vice President Richard Nixon turned over M-Fund over to Japan’s Prime Minister, Kishi Nobosuke, in return for kickbacks Nixon used to help finance his presidential campaign. Carter, Reagan, Clinton and both Bushes were complicit, using Golden Lily slush fund money to buy elections in nations all around the world. George W. got into the act in March 2001, sending Navy SEAL commandos to the Philippines to recover a portion of General Yamashita’s gold. Bush was privately in the market to buy some of the bullion that was being recovered. His representative was William S. Parish, his nominee as ambassador to Great Britain, and the manager of his blind trust.

The Seagraves conclude their exciting and excellent book by taking us down the Money Trail, and explaining, in layman’s terms, how the Gold Warriors have been able to cover their tracks. Emperor Hirohito, for example, worked directly with
Pope Pius XII to launder money through the Vatican bank. In another instance, Japan’s Ministry of Finance produced gold certificates that were slightly different than ordinary Japanese bonds. The Seagraves interview persons defrauded in this scam, and other scams involving the Union Bank of Switzerland and Citibank. Without descending into convoluted legalese, the Seagraves describe the devious means bankers have used to conceal the vast hordes of Nazi and Japanese gold in their possession. The Seagraves do this primarily by examining multi-million-dollar lawsuits filed by Roxas, Curtis, and Santa Romana’s heirs against Citibank, the US government, and Philippine President Ferdinand Marcos. In this way the Seagraves reveal how the banks use complex accounting methods, or claim that gold certificates are fake, or simply move gold to offshore accounts to conceal it. In every case the US government assists the banks by stonewalling, refusing to investigate, or ignoring Freedom of Information Act requests.

In one noteworthy case, attorney W.R. “Cotton” Jones walked into the Swiss Bank Corporation in New York City and asked the bank to authenticate a $25 million certificate of deposit issued by the Bank and bearing the Federal Reserve seal. Cotton was quickly arrested by the Secret Service and his certificates were confiscated. As Cotton rhetorically asks, how can a Swiss bank have a federal agency intervene on its behalf and confiscate personal possessions? What right does the Secret Service have to arrest, interrogate, intimidate, and threaten anyone on a Swiss bank’s behalf, without due process of law? The answer is obvious: the banks that maintain the US government’s stolen gold are above the law, and if they stonewall long enough, anyone trying to sue them will eventually fade away. The Seagraves asked the Treasury Department, Defense Department, and the CIA for records on Yamashita’s gold in 1987, but were told the records were exempt from release. During the 1990s, the records mysteriously went missing. Other records were destroyed in what the Seagraves caustically call “history laundering.”


While the size of the Bormann treasure is not known with any accuracy, it undoubtedly is the largest Nazi treasure that has not been recovered. The only other treasure remaining from WWII that could rival it in size is the Golden Lily treasure collected for the Japanese Emperor. While the Nazi treasure has been the subject of numerous searches and research, the Japanese treasure has been largely left unexplored. While the Nazis appointed a special unit of the SS, Devisenschutzkommando to take charge of the looting of Europe, the Japanese likewise had a special unit. Whereas, the Nazi unit employed Frenchmen to locate gold and currency on a ten percent commission, the unit was plagued by individuals seeking to enrich themselves rather than the Third Reich and much gold was siphoned off into private treasures. Seeking to avoid a similar problem, Hirohito appointed Prince Takeda Tsuneoshi as chief financial officer of the Kwantung Army. Several princes were involved with the Golden Lily operation. After the Japanese invaded China in 1937, the Golden Lily operation conducted a parallel operation. Loot was amassed and trucked to Korea for shipment to the Japanese homeland.77

In 1939, the Japanese invaders suffered a stinging defeat at Nomonhan after a boarder clash with the Soviets. It’s worth noting that this was the first battle in which the Japanese Unit 731 employed biological warfare, using typhoid bacteria. The experiment was a failure. In 1941, Roosevelt signed a secret agreement with Britain and the Netherlands agreeing to go to their defense if their colonies in Southeast Asia were attacked. In 1940, Prince Chichibu was appointed to head the Golden Lily. He and Takeda traveled throughout China and Southeast Asia, overseeing the looting and shipping the treasure back to Japan aboard hospital ships. By 1943, the United States submarine blockade of the home islands became effective. This forced Prince Chichibu to move his Golden Lily headquarters from Singapore to Luzon. He spent the next two and half years inventorying and hiding the treasure in a series of vaults, tunnels, and caves. The treasure was hidden in a total of 172 sites. The hope was Japan could arrange a cease-fire and be allowed to hang onto the Philippines as a territory and then recover the treasure at their leisure.

Besides using the Philippines to hide the treasure in the last year of the war, Japan hid gold at sea by scuttling ships. The cruiser, Nachii was torpedoed by a submarine in Manila Bay. The submarine then machined gunned any survivors to ensure secrecy. President Marcos recovered the gold from the Nachii in the 1970s. In 1997, A Japanese television crew filmed the recovery of 1,800 gold bars worth $150 million. The Igorot hill people had discovered the gold. After the death of Prince Chichibu in the 1950s, a member of the Imperial family confided that the Golden Lily had amassed over $100 billion in treasure, much of which was hidden in the Philippines. He also confirmed that the prince had escaped from MacArthur’s advancing forces by submarine.

The hospital ship, Tenno Maru, arrived at Yoksuka Naval Base loaded with causalities from the Philippines and 2,000 metric tons of gold. Days later it moved to Maizura Naval Base, where additional treasure was put aboard. The ship then sailed at night. Its crew was murdered and the ship sunk in the bay. In a secret operation in 1987, Japan recovered the gold. Another hospital ship, Awa Maru was sunk mistakenly off the coast of China in April 1945. Aboard the ship was 40 metric tons of gold, 12 metric tons of platinum, 150,000 carats of diamonds, a large quantity of titanium, and other strategic materials. Old mines in the Japanese mountains served as repositories for portions of the Golden Lily treasure. Near the Olympic Village of Nagano, a tunnel complex was dug by Korean slave labors. A ten kilometer tunnel completed the complex. This complex was used to hide portions of the Golden Lily.

The Allies had made it clear that they intended to prosecute Japanese war criminals in the same manner as Nuremberg. However, unlike Germany, only a few generals and admirals were ever convicted. The archives in Japan had vanished. The United States took exclusive control over Japan, unlike the four zones in Germany. President Truman appointed MacArthur as the Supreme Commander. For six years after the surrender of Japan, MacArthur held virtually unchallenged power. As Supreme Commander he ignored the Far Eastern commission of eleven nations. MacArthur had the power to reform the country, but instead left it in the same hands that bombed Pearl Harbor. The only reform implemented was the successful land reform that went ahead before it could be blocked. Washington D.C. was at least partially responsible for the lack of reforms. The liberals in Washington wanted reform while the conservatives blocked all reform efforts. The conservative Democrats and the Republicans held Congress until the 1946 election when the Republicans regained a majority of seats, putting Congress solidly in the conservative camp.

There were great plans for reforms, such as the dissolution of the zaibatsu, conglomerates, banking reforms, and a new constitution as well as restitution payments to nations ravaged by Japan. None of these plans were ever implemented. MacArthur killed those plans and was soon backing away from punishment of war criminals. To protect the ruling elite, MacArthur soon banned all labor demonstrations and canceled the right of labor unions to strike.

Just as the denazification of Germany had been sabotaged, the democratization of Japan was sabotaged by MacArthur and his staff with additional help coming from the former ambassador to Japan, Joseph Grew, and former President Herbert Hoover. Grew had been ambassador to Japan appointed to the post by Hoover in 1932 and was acting secretary of state in 1945. His wife was a grand niece of Commodore Perry and her mother was a Cabot. Grew was from the top society of Boston and was deaf to those beneath his stature in society. Grew’s family had longtime ties to Asia. The Grews had been bankers, who underwrote the opium clipper ships of the 1800s.

Grew had started sabotaging the democratization of Japan during the war. During the war Grew held private talks with Japan’s ambassador to Switzerland and promised that the United States would not prosecute Hirohito and that he would be allowed to keep his throne. Such a promise was adamantly opposed by both the Roosevelt and the Truman administrations, which both called for unconditional surrender and prosecution of war criminals.

Grew however, knew he had the backing of some of the most powerful figures in American politics and high finance. He left it up to Bonner Fellers to see to it. Fellers was a former OSS agent attached to MacArthur’s command who had been stationed in Cairo in 1941. While stationed in Cairo to observe the British operations in North Africa, he transmitted reports back to his superiors using the black code. The Italians had broken the black code and within minutes of Feller’s transmissions, Rommel knew the positions of British forces and battleplan. After being transferred to the states for a brief period Fellers was attached to MacArthur’s command.

The groundwork for sabotaging the peace in Japan had been laid out by Grew and Hoover. Fellers was friends with both and had acquired a reputation of being an expert on Japan. He had been stationed in the Philippines in the 1930s and had made frequent trips to Japan during that time. Hoover used Fellers during the occupation of Japan to convey ideas to MacArthur. MacArthur used Fellers in turn to push his presidential ambitions to Hoover and the Republican hierarchy.

As president, Hoover showed little concern about foreign affairs. However, after his defeat and as the war clouds descended on Europe, he took an active interest in foreign affairs. In 1938, Hoover met with Hitler. Even at this late date, Hoover still would have aligned the country with Hitler to defeat Stalin. He was also a friend with Japanese royalty from his time spent in China. Hoover wanted Japan to be a conservative Pacific outpost strongly opposed to communism. He wanted Japan to be allied with the US and to act as an Asian base for the Republican Party and its Wall Street cronies. Once he could cleanse the emperor of any guilt over the war, he could cleanse the government and Japanese factories would be humming again.

Hoover’s and Grew’s plan to cleanse the emperor and the Japanese government of any war crimes had to be kept secret. There were still far too many, bitter war memories from Pearl Harbor, the Bataan death march, and Japanese forced labor camps. As late as 1945, Congress had voted that Hirohito should be tried as a war criminal. Fellers and another Grew protégé, Max Bishop, engineered the cleansing process. First, to discover the true extent of Hirohito’s guilt, they questioned Japanese officials and indicted war criminals in secret. Once all the facts had been assembled, they sanitized each incriminating bit of information by suborning witnesses. Before the trials could begin, several adverse witnesses conveniently died. American POWs on their way home were forced by US intelligence to sign documents forbidding them to talk about the harsh treatment they received at the hands of the Japanese.

While MacArthur was quietly trying to stop the trials, he received a blunt reminder from the Joint Chiefs to get serious about bringing the Emperor to trial. Despite such orders, MacArthur would not permit a trial of Hirohito. MacArthur even put Hirohito on the public relations circuit, showing him shaking hands and portraying him as a great pacifist. Behind the scenes, MacArthur and Fellers were castigating anyone not falling in line with the opinion that the war was the fault of the military.

MacArthur’s list of war criminals was remarkably short. Of 300 cases investigated only 28 appeared before the court. Only seven were executed. All of those hung were Choshu and not Satsuma. This may have been a payoff to the royal court from a long-standing feud dating back to the early days of the Meiji Restoration. Even post war maps omitted the name Choshu after renaming the prefecture Yamaguchi.

Chief prosecutor was Joseph Keenan, the eleven-member panel of judges consisted of a judge from each Allied nation. Some of the criminals high on the list were granted pardons arbitrarily. For instance, the British decided not to prosecute a naval officer who ordered the machine gunning of 600 British sailors trying to stay afloat after their ship had been sunk. MacArthur ordered that not a single bit of information about biological warfare and Unit 731 be admitted in the trials.

While Herbert Hoover kept Fellers and MacArthur busy in Japan, nursing MacArthur’s political ambition, he guided Grew stateside. At the end of the war Grew resigned from the State Department and moved to Wall Street, where he became the leading spokesman for the Japan crowd. Grew became the co-chairman of the American Council on Japan (ACJ). The ACJ was a political action committee formed by wealthy conservatives immediately after the war to lobby Washington and to fight any efforts to reform Japan. The ACJ was backed by Newsweek, a newsmagazine founded in 1937 by Averell Harriman. His brother was a director. While Harriman was equally guilty in supplying Hitler before the war, he is normally associated with the Democratic Party. Newsweek’s pro-Japanese stance had his blessing. His role as a leading fundraiser of Democratic causes obviously came at a cost as he was looking out for his financial interests and those of his clients. The magazine hailed the Wall Street vision for Japan. Chief organizers for the AJC were Harry Kern, Newsweek foreign editor, Compton Pakenham, Newsweek’s bureau chief in Tokyo, and James Kauffman, a New York lawyer who served the interest of General Electric, Standard Oil, Ford, National Cash register, Ottis Elevator, and Dillon Reed in Japan.82

Grew’s cochairman at ACJ was another agent of Herbert Hoover, William Castle. Castle was a wealthy plantation owner from Hawaii and a former ambassador to Japan. Ambassador positions at the state department were regarded by the wealthy as their own providence. Grew’s assistant at the ACJ was Eugene Dooman, who was raised in Japan. They regarded their mission to stop any excesses in reforming Japan. Right wing business leaders were careful to denounce cartels and monopolies in principle, but fought vigorously against any effort to break up Japanese conglomerates. They looked toward restoring trade with Japan and saw that Japan was Asia’s only industrial base. Once the financial elite of Japan could be restored to power, the quicker business could resume.

In the summer of 1947, Kauffman visited Tokyo on behalf of Dillon Reed and made a personal assessment of Truman’s plan to break apart the zaibatsu. Truman’s plans were classified secret. However, Undersecretary of Defense William Draper leaked the documents to Newsweek. The reader should recall that William Draper played a prominent role in sabotaging the 4-Ds program in postwar Germany. In December, as the nation was gearing up for the presidential election, Newsweek denounced the overall plan for Japan as costly.

In Congress, the attack was led by Republican Senator William Knowland a wealthy newspaper publisher from California. Knowland claimed the Truman policy on Japan was written by communists, paving the way for Joe McCarthy. Knowland and Congressman Walter Judd a Republican from Minnesota, led the China lobby on Capitol Hill and blamed the loss of China to communism on Truman. Herbert Hoover meanwhile continued to lead MacArthur on about his chances of being nominated for the Republican ticket. MacArthur was particularly sensitive to Newsweek’s charges of communism. Those charges enraged the general and he halted all further implementation of the reform program.

The final deathblow for reform in Japan came early in 1948. In February, William Draper and Percy Johnson, a Wall Street banker, toured Japan to review the policy. Johnston was chairman of Chemical Bank, which had a long time relationship with Mitsui Bank. The outcome was predictable. Of the original list of 325 Japanese companies that were to be broken apart, only 20 remained on the Draper-Johnston list. Not a single Japanese bank would be restructured. The Japanese banks changed their names as a precaution and hid their past.

By 1952, when the occupation ended, all leftists had once again been purged and the conservatives were in control of Japan. The Emperor’s fortune still laid under the waters of Tokyo Bay and in other locations. The first recovery of a portion of the Golden Lily is known as the Santa Romana recovery. In the Philippines during the waning days of the war, Filipino guerillas observed the Japanese transporting heavy bronze cases and hiding them in a cave. An OSS major was with the group that observed the burial. After the treasure was hidden in the cave, the entrance was dynamited shut and concealed. The OSS agent reopened the cave and found the cases to contain gold. Following the war, between 1945 and 1948, the gold was recovered. The operation was known to Wiliam Donovan, MacArthur, Fellers, Edward Langsdale, and Herbert Hoover. Later, Allen Dulles knew of the operation. Donovan and Langsdale were assigned the recovery. No attempt was ever made to return the gold to its rightful heirs. Instead, the gold was deposited in 176 bank accounts in 42 different countries. It became the basis of the CIA off the books financing. This financing was done by issuing gold certificates to influential people, binding them to the CIA. One account in Langsdale’s name in the Geneva branch of Union Banque Suisse contained 20,000 metric tons of gold. The insiders squirreled some of the bullion away for private use. Documents confirm that one of the largest accounts was in the name of MacArthur.

Other documents indicated Herbert Hoover had an account containing $100 million in gold bullion. One can be certain that Hoover’s deep concern over Japan was based on his ability to smell a big payoff in gold from his previous experiences in China and Australia. The large holding of gold by Hoover was confirmed after his death, when his son sought out government approval to dispose of a large sum of gold bullion. The large accounts of MacArthur and Hoover suggest that the cleansing of Hirohito came at a high price.

Edwin Pauley, a rich oilman, had been dispatched to Japan to assess Japan’s ability to pay reparations. Pauly was informed of the $2 billion dollars of gold in Tokyo Bay shortly after his arrival in Japan. Yet, Pauley concluded Japan was in shambles and could not pay its fair share of expenses of the American occupation, let alone to anyone else’s rebuilding efforts. Largely due to Pauley’s assessment, Japan’s bill for reparations came to only one billion dollars. If such a sum had been distributed equally to the next of kin of the 20 million people who died as a result of Japan’s aggression, each would have received the paltry sum of $30. In the immediate post war scramble for reparations, the wealthy in Japan who had profited from the war and hid their profits submitted their own claim for reparations, totaling $5 billion. Many of these claims were paid.

Instead of cash payment to countries, Japan was ordered to provide industrial equipment. Even such token payments were suspended by Washington when the equipment was claimed as collateral for bonds issued before the war by American firms. Two of the largest American firms making such claims were Morgan Bank and Dillon Reed. By 1950, Japan owed Morgan Bank over $600 million in interest, penalties, and principle just for the 1924 earthquake loans. In 1951, Japan arranged for refinancing of the loans through Smith Barney and Guaranty Trust. By 1952, Japan had repaid all prewar investments by American corporations and compensated them for all property damage. While all prewar Japanese bonds held by companies affiliated with the ACJ were repaid, companies not affiliated were not so fortunate. The reader should ponder long and hard how a country so shattered was able to pay off such a colossal debt in such a short time.

The issue of Japan’s compensation is still an issue. In 1998, one month before Prince Akihito’s visit to Britain, Congress passed the following resolution:

“Whereas the government of Germany has formally apologized to the victims of the Holocaust and gone to great lengths to provide financial compensation to the victims and to provide for their needs and recovery; and Whereas by contrast the Government of Japan has refused to fully acknowledge the crimes it committed during World War II and to provide Reparations to its victims: Now, therefore, be it Resolved by the House of Representatives (the Senate concurring), That it is the sense of the Congress that the Government of Japan should.
1.Formally issue a clear and unambiguous apology for the atrocious war crimes committed by the Japanese military during World War II; and:
2. Immediately pay reparations to the victims of those crimes including United States military and civilian prisoners of, people of Guam who were subjected to violence and imprisonment, survivors of the “Rape of Nanking” from December 1937, until February, 1938, and the women who were forced into sexual slavery and known by the Japanese military as “comfort women.”

One intriguing theory that sheds additional light on the fate of the Golden Lily comes from David Guyatt, author and researcher. Guyatt theorizes that the total mined supply of gold has been deliberately understated and that the supply of gold is much larger than the 140,000 tons reported. This additional supply of black gold is controlled by extremely right wing fascists. One reported trader in this market is the son of George Bush. His theory revolves around the year 1954. London Bullion Market was shut down in 1939 at the onset of war. Even before the war, England’s gold reserves were extremely low. The war was an additional drain on those reserves, as evident by the destroyer trade and England’s reliance on the Lend Lease program. As well as the concession of Portugal to accept the pound in trade rather than demand gold. In short, England was walking among the financially dead at the war’s end. However, in 1954, just nine short years from the end of the war, England had apparently acquired enough supply of gold to reopen the bullion market.

The Bilderberg group held its first meeting in 1954. The Bilderberg group was founded by Prince Bernhard of the Netherlands and former officer in the SS. Bernhard had also worked in I.G. Farben’s notorious NW7 group, which served as spies for the Third Reich. The Prince is also associated with the Knights of Templar, through its Dutch variety. Bernhard was appointed to govern the Dutch order in 1954. John Foster Dulles was reported to have been one of the most helpful Americans in establishing the Bilderberg group. Incidentally, in 1954 Dulles testified in favor of a bill designed to return vested enemy assets such as GAF, to their previous owners. From the beginning, the Bilderberg group had several members of the intelligence community associated with it. Sir Colin Gubbins, Britian’s wartime SOE head, was a founding member. Walter Bedell Smith was a co-chairman of the group in the US.

The year 1954 was significant in a number of other ways. A memorandum of agreement between the CIA and the Justice Department that allowed the CIA to police itself was dated February 18, 1954. In effect, it allowed the CIA free reign as the Justice department would turn a blind eye towards matters of national security. Another noteworthy aspect of 1954 was the merger of the Schroder Bank and the Wagg family to form the city based merchant bank, J. Henry Schroder Wagg & Co. Wackenhut Corporation, a corporation with deep ties to both the military and intelligence communities, was formed in 1954.

However, more significant was that 1954 was the year the U.S. had forecasted that the Soviet Union would have thermo nuclear weapons. With their greater numerical strength, a massive military build up had been launched, costing taxpayers billions, while the corporations reaped fat profits. It was also the year in which General James Doolittle concluded his study of the CIA and reached the conclusion that the agency was not as adept as the KGB. The MK-Ultra, the mind control program of the CIA, began in 1954.

Perhaps the most noteworthy of all events in 1954 was a strange audit of the gold supply in Fort Knox. Every bar, totaling almost three quarters of a million, was weighed singularly. Moreover, every hundredth bar was drilled and a small sample taken to be assayed. No single assayer was used so the extent of the audit could not be deduced. No reasonable explanation for such a detailed and secret audit has been uncovered.

A partial list of significant events of 1954 follows: After learning about the Japanese treasures in November 1953, Marcos starts digging for gold in the Philippines. Fred Meuser, Lockheed’s European Director, transfers to Geneva to live, this event figures in later. The Four-Power Treaty is signed in Paris to terminate the occupation regime in Germany. Germany joins NATO. Geneva Accord reached regarding peace between France and Indochina. Additionally, 1954 was the year that Edward Landsdale arrived in Vietnam to take over the opium trade. The Israeli Mossad and US CIA formed an intelligence “partnership.” Nazi gold was moved from Argentina to the Philippines in 1954 after the Mosad determined it was located in Argentina.

Guyatt provides a more extensive list of events revolving around 1954 than provided above. However, the essential events to support his theory have been covered and we can now begin to look more directly at the Golden Lily and its recovery. Research done by the Seagraves has found 172 treasure sites of the Golden Lily in the Philippines. One of those sites audited by Japanese accountants contained a staggering 777 billion yen or the equivalent of $194 billion. Estimates for all 172 sites comes to a staggering $100 trillion. Over the years, numerous right wing groups have aided and abetted the CIA by laundering plundered items from the Golden Lily.

One of the latest recoveries, which raised scandalous headlines in 1994 involving former UN Secretary General Kurt Waldheim, was part of an operation involving the CIA and former General John Singlaub. The operation, dubbed Nippon Star, had recovered in excess of 500 metric tons of gold recovered from the Philippines. Singlaub, who is very active in right wing extremist groups and political intrigue in Central and South America, headed the team. Singlaub was part of the military/CIA intelligence complex before retiring. The team consisted of Gunther Russbacher, a CIA agent, five other Americans, and a handful of Filipinos. The recovered gold contained Nazi gold and gold stole from China by the Japanese. Kurt Waldheim served as the intermediary between the Austrian National Bank and Philippine President Ramos.

What is intriguing about this sale, besides the extraordinary size, is this operation was also known to the Knights of Malta. A document from the Knights of Malta entitled the Landsdale Project references 500 MT. Moreover, it refers to a meeting of Washington people to discuss the ramifications of another Landsdale project. While a number of former intelligence officials and military leaders are known members of the Knights of Malta, their knowledge of a secret CIA operation raises further questions. Who else was in on this operation? What were the ramifications of the second Landsdale Project? Was the Vatican a part of this operation? For now, those questions and others will have to go unanswered.

The stated reason for the transfer to Austria was to provide backing for the Euro dollar. However, the presence of Waldheim as an intermediary only raises questions of connections to Nazis and fascism. Even before Waldheim took his office in the UN, the CIA and military intelligence must have known about his former background as an SS officer. It is inconceivable that the US did not know of his background, since he was in an automatic arrest category following the war.

One of the earliest documents attesting to Marcos’s recovering the treasure of the Golden Lily is a gold certificate dated 1956. This was before Marcos had become a member of the senate. Swiss Bank Corporation (Schweizerische Bank GESELLSCHAFT M.H.C.) issued the certificate for a deposit of 7,120 metric tons of gold. Marcos collaborated with Japanese-American investigator Minoru Fukimatsu. Together they interviewed over 300 witnesses and somehow accessed secret Japanese government archives in determining the locations of the treasure.

Another gold certificate was issued on January 17, 1963 by Unions Bank of Switzerland. The certificate was issued to Adnan Kasogi. Adnan Kasogi was actually Adnan Khashoggi, a Marcos crony. Khashoggi’s name was misspelled, but that is often the case in these certificates. Khashoggi was a Lockheed agent and partner of Yoshio Kodama. Kodama was a Japanese rear admiral during the war and also a member of the Japanese Yakuza crime clan. Kodama was charged with shipping the loot to the Philippines during the war. This gold certificate was issued just before Lockheed paid the first known bribe to Prince Bernhard. Lockheed was being used by the CIA to funnel money worldwide. Moreover, Lockheed’s European Sales Director, Dutchman Fred Meuser, had been a member of Prince Bernhard’s wartime air force squadron. An additional member of the Lockheed bribe team was CIA officer Nicholas Deak. Deak had founded a money brokering firm that was used to funnel money to Kodama. Deak’s company later merged with Lionel C. Perera, who founded the money firm of Perera, Manfra & Brookes. Perera was attached to the Chief of Military Government Finance Office at the Third Army’s headquarters in Germany at war’s end, where he interviewed Colonel Rauch. Rauch was the SS colonel responsible for hiding the Reich Bank gold reserves.

With so many figures involved directly with both the Nazi and the Japanese treasures, such an event as the Lockheed bribery cannot be dismissed as mere happenstance. However, the intrigue does not stop there. Marcos, Kodama, and Singlaub were all members of the World Anti-Communist League, a right wing extremist group populated with known war criminals and fascists. Under the Reagan administration, the World Anti-Communist League was granted tax-exempt status. That raises the possibility that the World Anti-Communist League was being used as a front for the CIA. Moreover, the intrigue continues. Guyatt goes on to claim that a letter from Henry Kissinger was sent to Marcos on Trilateral notepaper. Kissinger demanded that Marcos sell “63,321 tons of gold to 2000 US and European banks admittedly controlled by the Trilateral.” The letter was dated February 21, 1986. Marcos refused and was overthrown as a result of his refusal. Imelda Marcos, however, chose to sell the gold to avoid criminal charges, and the gold was transferred aboard the US Eisenhower to the United States.

Additional evidence of Marco’s recovering the Golden Lily treasure comes from the Filipino newspaper, The Inquirer. In 1998 the paper published an article entitled “Soldiers of Fortune.” The article revealed that all members of the 16th Infantry Battalion had signed a joint affidavit declaring that, together with members of the 51st Engineering Brigade, they had recovered 60,000 metric tons of gold from thirty sites between 1973 and 1985. Both units operated in strict secrecy under Marcos’ henchman Fabian Ver.

Whether Guyatt’s theory of a secret gold treaty being reached in 1954 is correct or not, it is obvious from his findings and those of the Seagraves that considerable treasure has been recovered from the Golden Lily, ending up in the hands of those involved in intelligence and right wing causes. Was this gold put to private use or the use of the CIA? It’s most likely that a portion was skimmed for private use while the bulk of the remainder was used to fund clandestine CIA operations. It is interesting to note that those connected with the secret recoveries: Herbert Hoover, MacArthur, Allen Dulles, and others were the very ones that worked the hardest in derailing the reform of Japan and Nazi Germany. Their sole objective was to reestablish the cartels and get on with business as usual, and to hell with war crimes. Moreover, it seems certain that a large portion of the Nazi treasure and the Golden Lily was used in rebuilding Germany and Japan with the explicit approval of the right wing in America.

While the largest portions of the Nazi hoard and the Golden Lily remains shrouded under a curtain of mystery and controversy a good deal is known about smaller caches that have been recovered. Until recently, little was known about America’s acquisition of treasures from the war. Much mystery still remains and undoubtedly more caches will surface with additional time. Although Congress passed legislation requiring the return to Germany of much of this material, the bulk of it remains stored in the American archives and private collections. The legislation has been supported by court rulings. Only after Clinton authorized Eizenstat to reach a settlement on unclaimed assets has the New York Federal Reserve admitted to holding two tons of Nazi gold. There has been little effort to return the war booty.

Aftermath: Martin Bormann and the Fourth Reich, by Ladislas Farago
by Benno Weiser Varon  /  04.01.75
Review of Aftermath: Martin Bormann and the Fourth Reich, by Ladislas Farago

Aftermath deals with the thousands of Nazi war criminals who have found asylum—or at least a refuge—in South America since the end of World War II. They are for the most part living well, under their own or assumed names, and have by now gotten over the fright induced by the abduction of Adolf Eichmann in 1961. Among them, according to the author, is the notorious Martin Bormann, Rudolf Hess’s successor, who as Reichsleiter could sign orders to the Nazi leadership in Hitler’s name, and who was sentenced to death in absentia at Nuremberg. Farago claims actually to have seen Bormann in February 1974—“not sick but in an advanced state of senility”—in a remote Redemptorist convent located high in the mountains of Bolivia.

Whether or not the reader accepts this claim, he is likely to find Farago’s case for Bormann alive more convincing, and certainly better documented, than the case for his death, based on the alleged discovery several years ago of a human skull and bones beneath the paving stones of a Berlin street. Authorities of the State of Hesse announced that the Invalidenstrasse remains were those of Bormann, come to light some twenty-seven years after his death: their identification was founded, among other sources, on the testimony of a court pathologist who had no credentials whatsoever as a forensic anthropologist, and on a dental chart drawn from memory by Bormann’s dentist, since deceased. Neither medical charts nor X-rays were available during these proceedings which were launched, by an odd coincidence, only a few days after publication in the London Daily Express of a series of articles by Farago claiming that both Bormann and the infamous Dr. Mengele of Auschwitz were still alive. When it was pointed out in connection with the dental sketch that a three-tooth bridge was missing, a second “dig” was undertaken and the three missing teeth obligingly came to light. How convincing this evidence was may be gauged from the fact that the criminal court of Frankfurt later refused to accept it, as did Bormann’s seven children.

Farago’s case, on the other hand, if not definitive, is certainly a good deal more plausible. According to Farago, Bormann was seen walking alongside a tank in Berlin on May 2, 1945, and three weeks later was recognized by his former driver on a street in Munich. In June 1945 a German journalist described meeting Bormann on a train heading for Denmark, a claim borne out years later when Werner Heyde, awaiting trial in jail as chief of the Reich’s euthanasia program, confessed in 1963 to having hidden Bormann after the war in the Danish castle of Benno Weiser Varon has been the Ambassador of Israel to a number of Latin American countries. Graasten. In 1948 Bormann was spotted in Bolzano by the widow of his Bavarian physician, a recognition which, we are told, was instantaneous, unmistakable, and mutual, and following which Bormann panicked and fled. Like other Nazi bigwigs, Bormann was trailed by the federal police from the day of his arrival in Argentina, and Farago provides photostats from his various dossiers along with the names of three physicians who described treating him in 1959, 1968, and 1972.

The Eichmann trial provided further evidence that, as of 1961 at least, Bormann was still alive. A police search of Eichmann’s home shortly after his capture produced three letters from Bormann. Eichmann himself spoke of Bormann during his trial as of a living person, and Eichmann’s lawyer, Dr. Robert Servatius, said on August 14, 1961, that if Eichmann was the principal culprit in the Final Solution, “Himmler had no reason to kill himself [and] Bormann can come out of hiding.” In addition, a police search of the home of Friedrich Schwend, in Lima, Peru, who during the war printed fake pound sterling notes to undermine the British currency, produced an address book in which Bormann and all his aliases and addresses were listed.

Beyond that, the official spokesman of the Holy See, Professor Federico Alessandrini, has acknowledged that “Bormann was probably one of the beneficiaries” of the Vatican’s “help for the helpless,” and the Auxiliary Bishop of Munich, Johann Neuhaeusler, dropped the “probably” and conceded point-blank that Catholic refugee organizations had been instrumental in helping Bormann escape.

Indeed, Farago’s revelations about Bormann are considerably less important than his revelations about the part played by the Vatican in the escape of an estimated 50,000 Nazis after the war. Other books have treated this subject, but Aftermath breaks new ground with its in-depth study of the central figure behind this rescue operation, the German Catholic Bishop Alois Hudal. Hudal’s influence in German Church circles dated from his longstanding friendship with Pope Pius XII, whom he met in Rome in 1924 when the latter, then Eugenio Pacelli, was Papal Nuncio. Later, Pacelli became Secretary of State for the Holy See, and obtained for Hudal the Bishopric of Aela, making him “the senior German-speaking Bishop abroad.”

Hudal put this position to good use. As early as 1933, be began “explaining” Nazism to audiences outside Germany, welcoming the 700 members of Rome’s German colony, for example, at a Nazi May Day celebration, with the words: “We German Catholics greet the New German Reich, founded on loyalty to Christ and the fatherland.” In 1935, Hudal published a laudatory book, The Foundations of National Socialism, and in 1943 it was Hudal again who was asked by the Pope to intercede with the German commandant of Rome in the matter of the planned arrest of Italian Jews. Hudal presented the case in strictly political rather than humanitarian terms, “in the interest of the good relations . . . between the Vatican and the German high command,” and because he “feared” that “otherwise the Pope [would] have to make an open stand.” But the German commandant knew better. Although, as Ambassador von Weizsaecker reported to Berlin, “the event had taken place practically under the windows of the Pope,” the Pontiff remained silent.

From 1944 on, Hudal found a new friend in the person of the supervisor of the refugee bureau of the Vatican, Monsignor Giovanni Montini, who is today Pope Paul VI. One of the functions of the refugee bureau was to issue “identity certificates,” patterned on the Nansen passes, with no questions asked as to the true identity of their bearers, ‘in the name of Christian charity’ and as a matter of “Christian love of fellow men.” According to Farago, however, Hudal also obtained from Montini, with the Pope’s explicit permission, a limited number of regular Vatican passports for “important” Nazis, among them Bormann, who assumed clerical disguise in order to qualify as bona-fide Vatican citizens. Hudal knew that it was too late to save the Nazi regime. But he, too, saw in every Nazi he rescued a potential frontline fighter in the struggle against “godless Marxism.”

The effectiveness of the Vatican rescue operation may be gauged by the grateful words Farago cites from a speech in 1970 by Colonel Hans Ulrich Rudel, all-time ace of the German Luftwaffe and founder of the rescue organization Kameradenwerk: “One may otherwise view Catholicism as one wishes. But what during those years the Church, especially certain towering personalities, . . . undertook to save the best of our nation . . . must never be forgotten! . . . With its own tremendous resources, the Church helped many of us to go overseas. In this manner, in quiet and secrecy, the demented victor’s mad craving for revenge and retribution could be effectively countermanded.”

Golden Secrets, by Bix Weir

The mainstream gold world wants you to believe that in the entire history of gold mining there has been just over 170,000 tons of gold mined from the ground. On top of that, with all our latest seismic and exploration technology, we have only found about 100,000 tons of underground gold reserves that could be economically mined in the future. For the last 100 years a global effort has been orchestrated to obfuscate, distort, manipulate and confuse the majority of the world’s population as to the supply, demand and value proposition presented by gold.

There are two widely accepted gold statisticians that are followed religiously by the gold mining companies, central banks, governments and investment community:

Above Ground Gold: GFMS, Ltd. is the above ground gold market prognosticator and claims that the total amount of gold ever mined in the world is 170,000 tons (5.4B oz). Historically, this measure rises only as gold is pulled from the ground as reported by global gold mining companies around the world. Any “mystery gold” that suddenly appears on the market in ETF’s, on the LBMA, in the COMEX warehouses or in Government coffers is assumed to come from the unreported gold held by private individuals so that their historical figures never have to change. Adrian Douglas wrote an excellent analysis of what a sham organization GFMS is:

Below Ground Gold: The USGS tallies all the identified and unidentified underground gold reserves reported by governments and mining companies around the world. This figure totals 100,000 tons (3.2B oz) and at the current extraction rate all the remaining gold reserves will be depleted within 40 years.

There is very little 3rd party confirmation and clearly little investigation as to whether or not the historical numbers are correct. These USGS figures measure “publicly announced” gold deposits and never delve into hidden gold deposits that are scattered throughout the world…especially within the United States! There are many secret above ground hoards of gold that the US and the banking establishments do not want the world to know about…and for good reason. Nobody should underestimate the importance of gold in the economic, political and global balance of power.

This September 11 Commission Report gives an excellent insiders view of what goes on in the gold conspiracy world. Pay special attention to Chapters 7 & 8 starting on page 151 for the Gold transactions related to September 11th.

Once you understand the role that gold plays in international espionage it won’t take much of a leap to believe that powerful people around the world want to keep the truth about gold a secret.

Probably the most famous secret gold stash is the “Nazi Gold” that was confiscated from Hitler after WW2. Hitler plundered many European nations of their gold as well as countless individuals. Nobody knows the actual figures but estimates are in the 2,000-50,000 ton range much of which has been used secretly by the military industrial complex and banking cabal to fund their dirty operations. Information and theories on what happened to the Nazi Gold can be found all over the internet…some sites present clearly fanciful theories but others are loaded with facts, figures and motives that are very believable.

Another golden stash of even greater volume is Yamashita’s Gold that was plundered by the Japanese for decades from conquered Asian countries. In order to hide the gold from the US it was hidden in caves in the Philippines but the US found the gold and it has been using it to fund covert operations ever since. This secret gold stash is claimed to be in the 100,000-300,000+ ton range but again nobody really knows. The Sterling and Peggy Seagrave book Gold Warriors gives a detailed account of this gigantic treasure. They also have mountains of documentation backing up their claims of the existence of this secret gold stash and the ramifications are stunning. Listen closely to this interview with Sterling Seagrave and you will understand:

Imagine the implications if this secret gold stash was ever to be made “officially” public. The price of gold would likely crash (although only briefly) and then, once the world understood the reasoning behind hiding this treasure, every country and investor in the world would try to get their hands on some gold. In the aftermath of the market chaos the world would want answers as to where the gold was sold, who got the money, who covered it up, who has it now, who does the gold legally belong to and why is gold so important. All are very, very good questions but the answers would implicate some of the most powerful people in the world. The covert use of Yamashita’s gold has changed the world in the last 70 years and when disclosed to the public it will change it again.

A third is the rumored Chinese Imperial Gold that Benjamin Fulford among others has claimed to have knowledge of. This treasure is so vast that Fulford’s contacts has put the total of above ground physical gold in the world closer to 1,000,000 tons instead of the official number of 170,000 tons. The basic fact is that Eastern countries have coveted gold for centuries and it makes sense that most of the gold ever mined in the world is located somewhere in Asia. Even today, India imports around 33% of all the gold mined in the world and have been the largest gold importer for years.

Maybe the largest unknown store of physical gold in the world is the Vatican Gold. For nearly two thousand years the church has been hoarding gold gained from wars and conquests in the name of God. Throughout the ages people have been shoveling vast amounts of gold into the collection trays every Sunday. The Vatican gold hoard is a closely guarded secret but I believe that it may be the largest collection in history if you take into account all the gold used in the artwork, crosses, trinkets, coins and cups owned by the church. The Vatican is all about privacy, secrecy and power and I guarantee you they know the true value of gold.

These are just some of the above ground Secret Gold Stashes that may be out there. When I add it all up and do some “conspiratorial guess work” I come up with a vast store of gold in the neighborhood of 1.5M tons of above ground gold or 10x the gold supply “accepted” in the mainstream gold markets. Of course this may be very far off…both to the upside or the downside. The point is that the “Accepted” above ground gold numbers are completely dismissing the vast hoards of secret gold that are both rumored to be circulating and/or are very well documented as fact.”

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