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>Israel Faxx
>JN Dec. 2, 1998, Vol. 6, No. 217

Arafat: Jerusalem is Top Issue

Israel Faxx Staff Report


Palestinian leader Yasir Arafat has reignited a hot dispute with Prime Minister Binyamin Netanyahu by publicly laying claim to the "occupied" eastern part of the city. At the end of a donors conference Monday that netted the Palestinians pledges of more than $3 billion from 43 nations, Arafat registered his satisfaction with the outpouring, said he was confident the pledges would be fulfilled and then opened up on Jerusalem.

Referring apparently to East Jerusalem, Arafat said it was "occupied territory" that Israel was bound to relinquish under U.N. Security Council resolutions on an overall settlement with the Arabs.


Ford & GM Suspected of Collaboration with Nazis

By IsraelWire

Historians and lawyers researching class-action suits on behalf of former prisoners of war are busy amassing evidence of collaboration by US automakers with the Nazi regime. The issues at stake for the US automobile corporations go far beyond the relatively modest sums involved in settling any lawsuit.


During the war, the car companies established a reputation for themselves as "the arsenal of democracy" by transforming their production lines to make airplanes, tanks and trucks for the armies that defeated Adolf Hitler. They deny that their huge business interests in Nazi Germany led them, wittingly or unwittingly, to also become "the arsenal of fascism."

According to the Washington Post, the Ford Motor Company mobilized dozens of historians, lawyers and researchers to fight a civil case by lawyers specializing in extracting large cash settlements from banks and insurance companies accused of defrauding Holocaust victims. Also, a book scheduled for publication next year will accuse General Motors Corp. of playing a key role in Hitler's invasions of Poland and the Soviet Union.


"General Motors was far more important to the Nazi war machine than Switzerland," said Bradford Snell. "Switzerland was just a repository of looted funds. GM was an integral part of the German war effort. The Nazis could have invaded Poland and Russia without Switzerland. They could not have done so without GM."

Both General Motors and Ford insist that they bear little or no responsibility for the operations of their German subsidiaries, which controlled 70 percent of the German car market at the outbreak of war in 1939 and rapidly retooled themselves to become suppliers of war material to the German army.


But documents discovered in German and American archives show a much more complicated picture. In certain instances, American managers of both GM and Ford went along with the conversion of their German plants to military production at a time when US government documents show they were still resisting calls by the Roosevelt administration to step up military production in their plants at home.


Although some of the allegations against GM and Ford surfaced during 1974 congressional hearings into monopolistic practices in the automobile industry, American corporations have largely succeeded in playing down their connections to Nazi Germany. As with Switzerland, however, their very success in projecting a wholesome, patriotic image of themselves is now being turned against them by their critics.


"When you think of Ford, you think of baseball and apple pie," said Miriam Kleinman, a researcher with the Washington law firm of Cohen, Millstein and Hausfeld, who spent weeks examining records at the National Archives in an attempt to build a slave labor case against the Dearborn-based company. "You don't think of Hitler having a portrait of Henry Ford on his office wall in Munich."


Ford spokesman John Spellich defended the company's decision to maintain business ties with Nazi Germany on the grounds that the US government continued to have diplomatic relations with Berlin up until the Japanese attack on Pearl Harbor in December 1941. GM spokesman John Mueller said that General Motors lost day-to-day control over its German plants in September 1939 and "did not assist the Nazis in any way during World War II."


The relationship of Ford and GM to the Nazi regime goes back to the 1920s and 1930s, when the American car companies competed against each other for access to the lucrative German market. Hitler was an admirer of American mass production techniques and an avid reader of the anti-Semitic tracts penned by Henry Ford. "I regard Henry Ford as my inspiration," Hitler told a Detroit News reporter two years before becoming the German chancellor in 1933, explaining why he kept a life-size portrait of the American automaker next to his desk.


Although Ford allegedly later renounced his anti-Semitic writings, he remained an admirer of Nazi Germany and sought to keep America out of the coming war. Snell says that Nazi armaments chief Albert Speer told him in 1977 that Hitler "would never have considered invading Poland" without synthetic fuel technology provided by General Motors.


As war approached, it became increasingly difficult for US corporations like GM and Ford to operate in Germany without cooperating closely with the Nazi rearmament effort. Documents show that the parent companies followed a conscious strategy of continuing to do business with the Nazi regime, rather than divest themselves of their German assets. Less than three weeks after the Nazi occupation of Czechoslovakia in March 1939, GM Chairman Alfred P. Sloan defended this strategy as sound business practice, given the fact that the company's German operations were "highly profitable."


The internal politics of Nazi Germany "should not be considered the business of the management of General Motors," Sloan explained in a letter to a concerned shareholder dated April 6, 1939. "We must conduct ourselves [in Germany] as a German organization...We have no right to shut down the plant."


While there was no direct contact between American Ford and its German subsidiary after December 1941, there appear to have been some indirect contacts. In June 1943, the Nazi custodian of the Cologne plant, Robert Schmidt, traveled to Portugal for talks with Ford managers there. In addition, the Treasury Department investigated Ford after Pearl Harbor for possible illegal contacts with its subsidiary in occupied France, which produced Germany army trucks. The investigation ended without charges being filed.


Even though American Ford now condemns what happened at its Cologne plant during the war, it continued to employ the managers in charge at the time. After the war, Schmidt was briefly arrested by Allied military authorities and barred from working for Ford. But he was reinstated as the company's technical director in 1950 after he wrote to Henry Ford II claiming that he had always "detested" the Nazis and had never been a member of the party. A letter signed by a leading Cologne Nazi in February 1942 describes Schmidt as a trusted party member. Ford maintains that Schmidt's name does not show up on Nazi membership lists.


Similar arguments apply to General Motors, which was paid $32 million by the US government for damages sustained to its German plants. Washington attorney Michael Hausfeld, who is involved in the Ford lawsuit, confirms GM also is "on our list" as a possible target.


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