Red House meeting

 Red House meeting (meeting)

A meeting on.
Date	August 10, 1944
Type	•  secret •  meeting
Interest of	Hermann Abs, Dave Emory, Adam LeBor
Description	A meeting of an elite group of German industrialists to plan for Germany's post-war recovery, preparing for the Nazis' return to power and work for a "strong German empire".

The Red House meeting was a meeting of unproven veracity between German industrialists and Nazi top brass on August 10, 1944, and openly talked of how "German industry must realize that the war cannot be won", and sketched out the groundwork for a Fourth Reich. It saw discussion of how German industry must take "in preparation for a postwar commercial campaign", including how "each industrialist must take contacts and alliances with foreign firms...without attracting any suspicion".

At the same time, the Nazi Government would help the industrialists hide capital in neutral countries, for future use. and explained that the Nazi's would establish sleeper cells: "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."

US Military Intelligence report EW-Pa 128

A summary of the meeting was presented to the US Senate Committee on Military Affairs on June 22, 1945. The source report the Senate used does not seem to be available online; but this document seems to have been found in the US National Archives by fiction writer and journalistAdam LeBor, who used it as a inspiration for his book , "The Budapest Protocol", and thus brought attention to the meeting. According to Lebor, the name of the document is "US Military Intelligence report EW-Pa 128", and was declassified by the US National Archives in 1996. The text is identical to the Senate committee's version (see below), but LeBor's source document has a bit more metadata.

According to Lebor's document, the details of the meeting became known to Allied intelligence services via a French agent. The source is given as "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." The Allied intelligence report is prepared "For the A.C. of S., G-2. Walter K. Schwinn,G-2, Economic Section, Prepared by Melvin M. Fagen". The rest of the document is identical to the Senate Report (see below).

This secret meeting is known to exist almost(?) exclusively as a result of LeBor's work. According to him, it was a closely typed 3 page summary of the discussion carried out on August 10, 1944, sent to British officials and thence by air pouch to Cordell Hull, the US Secretary of State.

Importance

This meeting doesn't figure in official histories of World War II. Since 2012, English Wikipedia links from "The Red House Report" to the author Adam LeBor , who cites it is inspiration for his work of fiction, "The Budapest Protocol". The implication is that no such meeting ever occurred. As of December 2017, French Wikipedia had a separate page, although it was suggested to be a "conspiracy theory". It is documented here because if it is genuine, the implications are wide-ranging.

"Red House Report"

A graphic included in the Daily Mail's 2009 story on the Red House meeting.

Schedule

Morning Conference

The main conference was held in the morning.

Afternoon Conference

A smaller conference in the afternoon, presided over by Dr. Bosse of the German Armaments Ministry, was attended only by representatives of Hecko, Krupp, and Röchling. Dr. Bosse reiterated Bormann's belief that the war unwinnable, but that it would be sustained until certain goals to insure the later economic resurgence of Germany had been achieved. He reminded German industrialists that they must be prepared to finance the continuation of the Nazi Party, which would be forced to go underground, just as had the Maquis in France.

Policy reversal

Both conferences were reminded that Reichsleiter Martin Bormann had cancelled the 1933 Treason Against the Nation statue, which mandated the death penalty for violation of foreign exchange regulations or concealing of foreign currency, was a dead letter. Instead, the new Nazi policy was to export as much of value as possible, not only money and bonds but also patents, scientists, and administrators.

Document

The intelligence report - a little bit shortened on metadata - is referred to in page 30 of the Elimination of German Resources for War: Hearings Before a Subcommittee of the Committee on Military Affairs, 22, June 1945. The Senate Committee does not mention the source, (like the "Agent of French Deuxieme Bureau, recommended by Commandant Zindel" mentioned above), but the document text is identical:

 REPORT ON A MEETING OF GERMAN INDUSTRIALISTS TO MAKE POSTWAR PLANS, STRASBOURG, AUGUST 10, 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. Among those present were the following:
 *Dr. Scheid, who presided, holding the rank of S.S. Obergruppenfuhrer and Director of the Hece (Hermadorff & Schenburg) Co.
 *Dr. Kaspar, representing Krupp.
 *Dr. Tolle, representing Rochling.
 *Dr Sinceren, representing Messerschmitt
 *Drs. Kopp, Vier, and Beerwanger, representing Rheinmetall.
 *Captain Haberkorn and Dr. Ruhe, representing Bussing.
 *Drs. Ellenmayer and Kardos, representing Volkswegenwerk
 *Engineers Drose, Yanchew, and Koppsheim, representing various factories in Posen, Poland (Drose, Yanchew & Co., Brown-Boveri, Herkuleswerke, Buschwerke, and Stadtwerke).
 *Captain Dornbusch, head of the Industrial Inspection Section and Posen
 *Dr. Meyer, and 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 defence of the Siegfried 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 postwar commercial campaign. Each industrialist must take 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 Co. Of Germany, jointly, and that the United States Steel Corp., Carnegie, Illinois, American Steel & wire, and National Tube, etc., were thereby under an obligation to work with the Krupp concern. He also cited the Zeiss Co., the Leisa Co., 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 guaranty 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 Maquis (in Gerbirgsverteidigungsstellengehen)) From now on the Government would allocate large sums to industrialists so that each could establish a secure postwar foundation in foreign countries. Existing financial reserves in foreign countries must be placed at the disposal of the party so that a strong German empire can be created after the defeat. It is also immediately required that the large factories in Germany create small technical offices of research bureaus which would be absolutely independent and have no known connections with the factory. These bureaus will receive plans and drawings of new weapons 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 hydroelectric power, where they can be pretending 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. Each office will have a liaison agent with the party. As soon as the party becomes strong enough to reestablish its control over Germany the industrialists will be paid for their effort and cooperation by concessions and orders.
 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 with anew Nazi policy whereby industrialists with Government assistance will export as much their capital as possible. Previously exports of capital by German industrialists to neutral countries had to be accomplished rater surreptitiously and by means of special influence/ Now the Nazi Part 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 postwar operation. This freedom given to the industrialists further cements their relations with the party by giving them a measure of protection.
 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 5-percent commission buy property in Switzerland, using 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.

 REPORT ON THE PREPARATION OF KRUPP WORKS FOR POSTWAR USE
 Step I- The Krupp Works were recently returned to «private» ownership. It is the hope of the Germans that under the conventional international law concepts «private» property would have an excellent chance of remaining untouched by the Allied occupation forces.
 Step II. - Germans anticipated that private ownership alone might not be enough. The occupation forces might be directed to take severe measures against Nazi ownership and control of industrial organizations. With this in mind, the Nazis are reported to have issued a decree prohibiting all Nazi Party officials and all persons who held Government posts to which they had been appointed by the Nazi Party from holding any official or managing position in any business undertaking, regardless of whether such position carried with it any remuneration or not.
 Step III. - Not wholly satisfied that property which was both privately owned and was not controlled or owned by Nazis would escape the allied controls, a further precaution was taken to make assurances doubly sure that the really important industries would be saved from allies destruction or control. Germans have reported on several occasions that Gustav Krupp von Bohlen and Halbach, the head of the great Krupp munitions combine, who was instrumental in bringing Hitler into power, was arrested for making defeatist utterances and for organizing anti-Nazi resistance groups. Thus the Krupp Works, one of the backbones of German aggression, is now «private property» owned and controlled by persons who not only are not Nazi Party members or Government officials, but who are seemingly in disfavor of the Nazi Government.
 The Krupp example is but one illustration in a pattern of behavior. The Krupp case is too obvious to fool many people – other cases will be less obvious. The underground which will keep the Nazi fire burning will be nourished and supported by the trustees of German heavy industry and the trustees of German economic and financial interest within and outside Germany. They are the true underground,
 Incidentally, step III above is a favorite Nazi device for screening the true character of t[potential underground leaders. Hjalmar Schacht, former president of the Reichsbank, who but recently was sufficiently in favor with the Nazis to be assigned to special missions, has been reported several times under arrests and later released. Similar reports have been circulated regarding Alfred Krupp and George van Schnitzer, one of the ardently pro-Nazi executives of I.G. Farben. Other evidence indicated that minor officials reported executed for treason are reappearing in neutral countries with fake passports.

 EDUARD HOUDREMONT
 Eduard Houdremont, managing director of the Krupp Armaments Works, is also an official of the Ministry of Armaments and Munitions headed by Albert Speer holding the post of Special Deputy for Metal Substitutes. In this post Houdremont is director for the coordination of all private, semipublic and public agencies (cartels, groups, etc.) engaging in finding substitutes for scare metals.

 Ministry of Armaments and Munitions

 The Ministry of Armaments and Munitions must properly be classified as a military institution. Its functions consist exclusively of the control of the sector of German industry that is concerned with the manufacture and distribution of combat material in the widest sense. The Ministry achieved its predominant position in the spring of 1942 when under the impact of the defeat suffered in Russia, a reorganization of the German economy was undertaken. At that time the Ministry of Armaments and Munitions took over from the Office for War economy and Armaments the control of armaments inspections. Thus the Speer Ministry obtained a highly developed management for the control of armament production and full control over the military sector of the German economy.

 Houdremont appears to have no connections other than those mentioned above.

 

Related Documents

Title	Type	Publication date	Author(s)	Description
Document:Princes of Plunder	article	1999	David Guyatt	Why, but for a suppressed act of treachery motivated by the safeguarding of vast wealth, the capture of the Arnhem bridge during the Allies' Operation 'Market Garden' might not have been 'A Bridge Too Far'
File:Martin Bormann - Nazi In Exile.pdf	book	1981	Paul Manning	A deep history of transnational corporate ownership networks originating from the fascist junction of state and economic power in Germany before and during WWII

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