Red House Report and the Fourth Reich

Red House Report

The Red House Report is the name coined up by some unknown US Intelligence officer for a US military intelligence document, Intelligence Report EW-Pa 128, dated 27 November 1944, datelined London, which was declassified by the US National Archives in 1996.

The Red House Report is based on information supplied by an agent of French intelligence, who supposedly attended a meeting of Nazi officials and German industrialists at the Maison Rouge (“Red House” in French) hotel in Strasbourg, France on 10 August 1944 (sufficiently far away from Gestapo headquarters – just in case).

The report, outlines the industrialists’ plans for the post-war resurrection of Germany (which actually happened – and made Germany the most powerful nation in Europe – again). While some have questioned the document’s authenticity, it includes the date of declassification, 6 May 1996, and the authorization code: NND765055.

National Archives and Records Administration archivist Tom McAnear identified the series (NND 765055) noting that it refers to over 2,000 boxes and declared that without more information in the way of a citation there is no way to easily locate this document or verify authenticity.

Here’s a full text of this thought-provoking document:

US Military Intelligence report EW-Pa 128

Enclosure No. 1 to despatch No. 19,489 of Nov. 27, 1944, from
the Embassy at London, England.

S E C R E T
SUPREME HEADQUARTERS
ALLIED EXPEDITIONARY FORCE
Office of Assistant Chief of Staff, G-2
7 November 1944
INTELLIGENCE REPORT NO. EW-Pa 128

SUBJECT: Plans of German industrialists to engage in underground activity after Germany’s defeat; flow of capital to neutral countries.

SOURCE: Agent of French Deuxieme Bureau, recommended by Commandant Zindel. This agent is regarded as reliable and has worked for the French on German problems since 1916. He was in close contact with the Germans, particularly industrialists, during
the occupation of France and he visited Germany as late as August, 1944.

1. A meeting of the principal German industrialists with interests in France was held on August 10, 1944, in the Hotel Rotes Haus in Strasbourg, France, and attended by the informant indicated above as the source. Among those present were the following:

Dr. Scheid, who presided, holding the [honorary] rank of S.S. Obergruppenfuhrer and Director of the Heche (Hermandorff & Schonburg) Company

Dr. Kaspar, representing Krupp

Dr. Tolle, representing Rochling

Dr. Sinderen, representing Messerschmitt

Drs. Kopp, Vier and Beerwanger, representing Rheinmetall

Captain Haberkorn and Dr. Ruhe, representing Bussing

Drs. Ellenmayer and Kardos, representing Volkswagenwerk

Engineers Drose, Yanchew and Koppshem, representing various factories in Posen, Poland (Drose, Yanchew, and Co., Brown-Boveri, Herkuleswerke, Buschwerke, and Stadtwerke)

Captain Dornbuach, head of the Industrial Inspection Section at Posen

Dr. Meyer, an official of the German Naval Ministry in Paris

Dr. Strossner, of the Ministry of Armament, Paris.

2. Dr. Scheid stated that all industrial material in France was to be evacuated to Germany immediately. The battle of France was lost for Germany and now the defense of the Siegried Line was the main problem.

From now on also German industry must realize that the war cannot be won and that it must take steps in preparation for a post-war commercial campaign. Each industrialist must make contacts and alliances with foreign firms, but this must be done individually
and without attracting any suspicion.

Moreover, the ground would have to be laid on the financial level for borrowing considerable sums from foreign countries after the war. As examples of the kind of penetration which had been most useful in the past, Dr. Scheid cited the fact that patents for stainless steel belonged to the Chemical Foundation, Inc., New York, and the Krupp company of Germany jointly and that the U.S. Steel Corporation, Carnegie Illinois, American Steel and Wire, and national Tube, etc. were thereby under an obligation to
work with the Krupp concern.

He also cited the Zeiss Company, the Leisa Company and the Hamburg-American Line as firms which had been especially effective in protecting German interests abroad and gave their New York addresses to the industrialists at this meeting.

3. Following this meeting a smaller one was held presided over by Dr. Bosse of the German Armaments Ministry and attended only by representatives of Hecho, Krupp and
Rochling. At this second meeting it was stated that the Nazi Party had informed the industrialists that the war was practically lost but that it would continue until a guarantee of the unity of Germany could be obtained.

German industrialists must, it was said, through their exports increase the strength
of Germany. They must also prepare themselves to finance the Nazi Party which would be forced to go underground as partisans [ODESSA-style, most likely].

From now on the [Nazi] government would allocate large sums [the “Nazi gold” obtained from “Nazi loot”, no doubt] to industrialists so that each could establish a secure post-war foundation in foreign countries.

Existing financial reserves in foreign countries must be placed at the disposal of the [Nazi] Party so that a strong German Empire can be created after the defeat [of the Third Reich].

[Not the empire, of course, but modern-day Germany is the most powerful country in Europe, so their plan apparently worked].

It is also immediately required that the large factories in Germany create small technical offices or research bureaus which would be absolutely independent and have no known connection with the factory.

These bureaus will receive plans and drawings of new weapons [did Hans Kammler have anything to do with it and did he really die in 1945?] as well as documents which they need to continue their research and which must not be allowed to fall into the hands of the enemy.

These offices are to be established in large cities where they can be most successfully
hidden as well as in little villages near sources of hydro-electric power where they can pretend to be studying the development of water resources.

The existence of these is to be known only by very few people in each industry and by
chiefs of the Nazi Party [Heinrich Himmler, no doubt]. Each office will have a liaison agent with the Party [more likely, the SS]. As soon as the Party becomes strong enough to re-establish its control over Germany the industrialists will be paid for their effort and cooperation by concessions and orders.

[The last sentence proves beyond the reasonable doubt that the meeting was organized by those top Nazi leaders who (a) did not fear Gestapo much; (b) were totally committed to building the Fourth Reich after the inevitable demise of the Third; and (c) had the necessary resources.

The only leader who fit the bill on all three counts was SS-Reichsfuhrer Heinrich Himmler who thus had no incentive to either surrender to the Allies or commit suicide. Hence the theory that Himmler did not die in May of 1945 but survived and went underground has some pretty solidfoundation]

4. These meetings seem to indicate that the prohibition against the export of capital which was rigorously enforced until now has been completely withdrawn and replaced by a new Nazi policy whereby industrialists with government assistance will export as much of their capital [and thus launder as much of the Nazi loot] as possible.

Previously exports of capital by German industrialists to neutral countries had to be accomplished rather surreptitiously and by means of special influence. Now the Nazi
party [the SS, I think as the Party itself at that time was already all but powerless] stands behind the industrialists and urges them to save themselves by getting funds outside Germany and at the same time to advance the Party’s plans for its post-war operation.

This freedom given to the industrialists further cements their relations with the Party by giving them a measure of protection [by the SS, no doubt].

5. The German industrialists are not only buying agricultural property in Germany but are placing their funds abroad, particularly in neutral countries. Two main banks through which this export of capital operates are the Basler Handelsbank and the Schweizerische Kreditanstalt of Zurich. Also there are a number of agencies in Switzerland which for a [negligible] 5 percent commission buy property in Switzerland, using a Swiss cloak.

6. After the defeat of Germany the Nazi Party recognizes that certain of its best known leaders will be condemned as war criminals. However, in cooperation with the industrialists it is arranging to place its less conspicuous but most important
members in positions with various German factories as technical experts or members of its research and designing offices [that’s precisely how the real ODESSA was rumored to have operated].

For the A.C. of S., G-2.
WALTER K. SCHWINN
G-2, Economic Section

Prepared by
MELVIN M. FAGEN

Distribution:
Same as EW-Pa 1,
U.S. Political Adviser, SHAEF
British Political Adviser, SHAEF

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