The Invisible Government

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"_I know no safe depository of the ultimate powers of society but the
people themselves; and if we think them not enlightened enough to
exercise their control with a wholesome discretion, the remedy is not to
take it from them, but to inform their discretion by education._"

--Thomas Jefferson

The Invisible Government

by

Dan Smoot

[Transcriber's note: Although copyrighted in 1962, the author did not
renewal his copyright claim after 28 years (which was required to retain
copyright for works published before 1964). Therefore, this text is now
in the public domain. The text of the copyright notice from the original
book is preserved below.]

Copyright 1962 by Dan Smoot

All rights reserved

First Printing June, 1962; Second Printing July, 1962; Third Printing
August, 1962; Fourth Printing September, 1962; Fifth Printing October,
1962

Sixth Printing (in pocketsize paperback) August, 1964

Communists in government during World War II formulated major policies
which the Truman administration followed; but when the known communists
were gone, the policies continued, under Eisenhower, Kennedy, Johnson.
The unseen _they_ who took control of government during World War II
still control it. Their tentacles of power are wrapped around levers of
political control in Washington; reach into schools, big unions,
colleges, churches, civic organizations; dominate communications; have a
grip on the prestige and money of big corporations.

For a generation, _they_ have kept voters from effecting any changes at
the polls. Voters are limited to the role of choosing between parties to
administer policies which _they_ formulate. _They_ are determined to
convert this Republic into a socialist province of a one-world socialist
system.

This book tells who _they_ are and how _they_ work. If enough Americans
had this information, our Republic would be saved. Please do your utmost
to spread the word: order extra copies of this book and help give it
wide distribution. See inside of back cover for quantity prices.

Published by
THE DAN SMOOT REPORT, INC.
P.O. Box 9538
Dallas, Texas 75214

Table of Contents

Foreword i

Chapter I History and The Council 1
Chapter II World War II and Tragic Consequences 23
Chapter III FPA-WAC-IPR 35
Chapter IV Committee For Economic Development 51
Chapter V Business Advisory Council 81
Chapter VI Advertising Council 97
Chapter VII UN and World Government Propaganda 103
Chapter VIII Foreign Aid 129
Chapter IX More of The Interlock 137
Chapter X Communications Media 153
Chapter XI Interlocking Untouchables 161
Chapter XII Why? What Can We Do? 173

Appendix I CFR Membership List 186
Appendix II AUC Membership List 201

Index 227

FOREWORD

On May 30, 1961, President Kennedy departed for Europe and a summit
meeting with Khrushchev[A]. Every day the Presidential tour was given
banner headlines; and the meeting with Khrushchev was reported as an
event of earth-shaking consequence.

It was an important event. But a meeting which was probably far more
important, and which had commanded no front-page headlines at all, ended
quietly on May 29, the day before President and Mrs. Kennedy set out on
their grand tour.

On May 12, 1961, Dr. Philip E. Mosely, Director of Studies of the
Council on Foreign Relations, announced that,

"Prominent Soviet and American citizens will hold a week-long
unofficial conference on Soviet-American relations in the Soviet
Union, beginning May 22."

Dr. Mosely, a co-chairman of the American group, said that the State
Department had approved the meeting but that the Americans involved
would go as "private citizens" and would express their own views.

_The New York Times'_ news story on Dr. Mosely's announcement (May 13,
1961) read:

"The importance attached by the Soviet Union to the meeting appears
to be suggested by the fact that the Soviet group will include
three members of the communist party's Central Committee ... and
one candidate member of that body....

"The meeting, to be held in the town of Nizhnyaya Oreanda, in the
Crimea, will follow the pattern of a similar unofficial meeting,
in which many of the same persons participated, at Dartmouth
College last fall. The meetings will take place in private and
there are no plans to issue an agreed statement on the subjects
discussed....

"The topics to be discussed include disarmament and the
guaranteeing of ... international peace, the role of the United
Nations in strengthening international security, the role of
advanced nations in aiding under-developed countries, and the
prospects for peaceful and improving Soviet-United States
relations.

"The Dartmouth conference last fall and the scheduled Crimean
conference originated from a suggestion made by Norman Cousins,
editor of _The Saturday Review_ and co-chairman of the American
group going to the Crimea, when he visited the Soviet Union a year
and a half ago....

"Mr. Cousins and Dr. Mosely formed a small American group early
last year to organize the conferences. It received financial
support from the Ford Foundation for the Dartmouth conference and
for travel costs to the Crimean meeting. This group selected the
American representatives for the two meetings.

"Among those who participated in the Dartmouth conference were
several who have since taken high posts in the Kennedy
Administration, including Dr. Walt W. Rostow, now an assistant to
President Kennedy, and George F. Kennan; now United States
Ambassador to Yugoslavia...."

* * * * *

The head of the Soviet delegation to the meeting in the Soviet Union,
May 22, 1961, was Alekesander Y. Korneichuk, a close personal friend of
Khrushchev. The American citizens scheduled to attend included besides
Dr. Mosely and Mr. Cousins:

_Marian Anderson_, the singer; _Dean Erwin N. Griswold_, of the Harvard
Law School; _Gabriel Hauge_, former economic adviser to President
Eisenhower and now an executive of the Manufacturers Trust Company; _Dr.
Margaret Mead_, a widely known anthropologist whose name (like that of
Norman Cousins) has been associated with communist front activities in
the United States; _Dr. A. William Loos_, Director of the Church Peace
Union; _Stuart Chase_, American author notable for his pro-socialist,
anti-anti-communist attitudes; _William Benton_, former U.S. Senator,
also well-known as a pro-socialist, anti-anti-communist, now Chairman of
the Board of _Encyclopaedia Britannica_; _Dr. George Fisher_, of the
Massachusetts Institute of Technology; _Professor Paul M. Doty_, _Jr._,
of Harvard's Chemistry Department; _Professor Lloyd Reynolds_, Yale
University economist; _Professor Louis B. Sohn_ of the Harvard Law
School; _Dr. Joseph E. Johnson_, an old friend and former associate of
Alger Hiss in the State Department, who succeeded Hiss as President of
the Carnegie Endowment for International Peace, and still holds that
position; _Professor Robert R. Bowie_, former head of the State
Department's Policy Planning Staff (a job which Hiss also held at one
time), now Director of the Center for International Affairs at Harvard;
and _Dr. Arthur Larson_, former assistant to, and ghost writer for,
President Eisenhower. Larson was often called "Mr. Modern Republican,"
because the political philosophy which he espoused was precisely that of
Eisenhower (Larson is now, 1962, Director of the World Rule of Law
Center at Duke University, where his full-time preoccupation is working
for repeal of the Connally Reservation, so that the World Court can take
jurisdiction over United States affairs).

* * * * *

I think the meeting which the Council on Foreign Relations arranged in
the Soviet Union, in 1961, was more important than President Kennedy's
meeting with Khrushchev, because I am convinced that the Council on
Foreign Relations, together with a great number of other associated
tax-exempt organizations, constitutes the invisible government which
sets the major policies of the federal government; exercises controlling
influence on governmental officials who implement the policies; and,
through massive and skillful propaganda, influences Congress and the
public to support the policies.

I am convinced that the objective of this invisible government is to
convert America into a socialist state and then make it a unit in a
one-world socialist system.

My convictions about the invisible government are based on information
which is presented in this book.

The information about membership and activities of the Council on
Foreign Relations and of its interlocking affiliates comes largely from
publications issued by those organizations. I am deeply indebted to
countless individuals who, when they learned of my interest, enriched my
own files with material they had been collecting for years, hoping that
someone would eventually use it.

I have not managed to get all of the membership rosters and publications
issued by all of the organizations discussed. Hence, there are gaps in
my information.

* * * * *

One aspect of the over-all subject, omitted entirely from this book, is
the working relationship between internationalist groups in the United
States and comparable groups abroad.

The Royal Institute of International Affairs in England (usually called
Chatham House) and the American Council on Foreign Relations were both
conceived at a dinner meeting in Paris in 1919. By working with the CFR,
the Royal Institute, undoubtedly, has had profound influence on American
affairs.

Other internationalist organizations in foreign lands which work with
the American Council on Foreign Relations, include the Institut des
Relations Internationales (Belgium), Danish Foreign Policy Society,
Indian Council of World Affairs, Australian Institute of International
Affairs, and similar organizations in France, Italy, Yugoslavia, Greece,
and Turkey.

The "Bilderbergers" are another powerful group involved in the
internationalist web. The "Bilderbergers" take their name from the scene
of their first known meeting--the Bilderberg Hotel, Oosterbeck, The
Netherlands, in May, 1954. The group consists of influential Western
businessmen, diplomats, and high governmental officials. Their meetings,
conducted in secrecy and in a hugger-mugger atmosphere, are held about
every six months at various places throughout the world. His Royal
Highness, Prince Bernhard of The Netherlands, has presided at every
known meeting of the Bilderberger Group.

Prince Bernhard is known to be an influential member of the Societe
Generale de Belgique, a mysterious organization which seems to be an
association of large corporate interests from many countries. American
firms associated with the society are said to be among the large
corporations whose officers are members of the Council on Foreign
Relations and related organizations. I make no effort to explore this
situation in this volume.

My confession of limitation upon my research does not embarrass me,
because two committees of Congress have also failed to make a complete
investigation of the great _camarilla_ which manipulates our government.
And the congressional committees were trying to investigate only one
part of the web--the powerful tax-exempt foundations in the United
States.

My own research does reveal the broad outlines of the invisible
government.

D.S.
May, 1962

Chapter 1

HISTORY AND THE COUNCIL

President George Washington, in his Farewell Address to the People of
the United States on September 17, 1796, established a foreign policy
which became traditional and a main article of faith for the American
people in their dealings with the rest of the world.

Washington warned against foreign influence in the shaping of national
affairs. He urged America to avoid permanent, entangling alliances with
other nations, recommending a national policy of benign neutrality
toward the rest of the world. Washington did not want America to build a
wall around herself, or to become, in any sense, a hermit nation.
Washington's policy permitted freer exchange of travel, commerce, ideas,
and culture between Americans and other people than Americans have ever
enjoyed since the policy was abandoned. The Father of our Country wanted
the American _government_ to be kept out of the wars and revolutions and
political affairs of other nations.

Washington told Americans that their nation had a high destiny, which it
could not fulfill if they permitted their government to become entangled
in the affairs of other nations.

Despite the fact of two foreign wars (Mexican War, 1846-1848; and
Spanish American War, 1898) the foreign policy of Washington remained
the policy of this nation, _unaltered_, for 121 years--until Woodrow
Wilson's war message to Congress in April, 1917.

* * * * *

Wilson himself, when campaigning for re-election in 1916, had
unequivocally supported our traditional foreign policy: his one major
promise to the American people was that he would keep them out of the
European war.

Yet, even while making this promise, Wilson was yielding to a pressure
he was never able to withstand: the influence of Colonel Edward M.
House, Wilson's all-powerful adviser. According to House's own papers
and the historical studies of Wilson's ardent admirers (see, for
example, _Intimate Papers of Colonel House_, edited by Charles Seymour,
published in 1926 by Houghton Mifflin; and, _The Crisis of the Old
Order_ by Arthur M. Schlesinger, Jr., published 1957 by Houghton
Mifflin), House created Wilson's domestic and foreign policies, selected
most of Wilson's cabinet and other major appointees, and ran Wilson's
State Department.

House had powerful connections with international bankers in New York.
He was influential, for example, with great financial institutions
represented by such people as Paul and Felix Warburg, Otto H. Kahn,
Louis Marburg, Henry Morgenthau, Jacob and Mortimer Schiff, Herbert
Lehman. House had equally powerful connections with bankers and
politicians of Europe.

Bringing all of these forces to bear, House persuaded Wilson that
America had an evangelistic mission to save the world for "democracy."
The first major twentieth century tragedy for the United States
resulted: Wilson's war message to Congress and the declaration of war
against Germany on April 6, 1917.

House also persuaded Wilson that the way to avoid all future wars was to
create a world federation of nations. On May 27, 1916, in a speech to
the League to Enforce Peace, Wilson first publicly endorsed Colonel
House's world-government idea (without, however, identifying it as
originating with House).

* * * * *

In September, 1916, Wilson (at the urging of House) appointed a
committee of intellectuals (the first President's Brain Trust) to
formulate peace terms and draw up a charter for world government. This
committee, with House in charge, consisted of about 150 college
professors, graduate students, lawyers, economists, writers, and others.
Among them were men still familiar to Americans in the 1960's: Walter
Lippmann (columnist); Norman Thomas (head of the American socialist
party); Allen Dulles (former head of C.I.A.); John Foster Dulles (late
Secretary of State); Christian A. Herter (former Secretary of State).

These eager young intellectuals around Wilson, under the clear eyes of
crafty Colonel House, drew up their charter for world government (League
of Nations Covenant) and prepared for the brave new socialist one-world
to follow World War I. But things went sour at the Paris Peace
Conference. They soured even more when constitutionalists in the United
States Senate found out what was being planned and made it quite plain
that the Senate would not authorize United States membership in such a
world federation.

Bitter with disappointment but not willing to give up, Colonel House
called together in Paris, France, a group of his most dedicated young
intellectuals--among them, John Foster and Allen Dulles, Christian A.
Herter, and Tasker H. Bliss--and arranged a dinner meeting with a group
of like-minded Englishmen at the Majestic Hotel, Paris, on May 19, 1919.
The group formally agreed to form an organization "for the study of
international affairs."

The American group came home from Paris and formed The Council on
Foreign Relations, which was incorporated in 1921.

The purpose of the Council on Foreign Relations was to create (and
condition the American people to accept) what House called a "positive"
foreign policy for America--to replace the traditional "negative"
foreign policy which had kept America out of the endless turmoil of
old-world politics and had permitted the American people to develop
their great nation in freedom and independence from the rest of the
world.

The Council did not amount to a great deal until 1927, when the
Rockefeller family (through the various Rockefeller Foundations and
Funds) began to pour money into it. Before long, the Carnegie
Foundations (and later the Ford Foundation) began to finance the
Council.

In 1929, the Council (largely with Rockefeller gifts) acquired its
present headquarters property: The Harold Pratt House, 58 East 68th
Street, New York City.

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

Shortly after the start of World War II, in September, 1939, Hamilton
Fish Armstrong and Walter H. Mallory, of the Council on Foreign
Relations, visited the State Department to offer the services of the
Council. It was agreed that the Council would do research and make
recommendations for the State Department, without formal assignment or
responsibility. The Council formed groups to work in four general
fields--Security and Armaments Problems, Economic and Financial
Problems, Political Problems, and Territorial Problems.

The Rockefeller Foundation agreed to finance, through grants, the
operation of this plan.

In February, 1941, the Council on Foreign Relations' relationship with
the State Department changed. The State Department created the Division
of Special Research, which was divided into Economic, Security,
Political, Territorial sections. Leo Pasvolsky, of the Council, was
appointed Director of this Division. Within a very short time, members
of the Council on Foreign Relations dominated this new Division in the
State Department.

During 1942, the State Department set up the Advisory Committee on
Postwar Foreign Policy. Secretary of State Cordell Hull was Chairman.
The following members of the Council on Foreign Relations were on this
Committee: Under Secretary of State Sumner Welles (Vice-Chairman), Dr.
Leo Pasvolsky (Executive Officer); Hamilton Fish Armstrong, Isaiah
Bowman, Benjamin V. Cohen, Norman H. Davis, and James T. Shotwell.

Other members of the Council also found positions in the State
Department: Philip E. Mosely, Walter E. Sharp, and Grayson Kirk, among
others.

The crowning moment of achievement for the Council came at San Francisco
in 1945, when over 40 members of the United States Delegation to the
organizational meeting of the United Nations (where the United Nations
Charter was written) were members of the Council. Among them: Alger
Hiss, Secretary of State Edward R. Stettinius, Leo Pasvolsky, John
Foster Dulles, John J. McCloy, Julius C. Holmes, Nelson A. Rockefeller,
Adlai Stevenson, Joseph E. Johnson, Ralph J. Bunche, Clark M.
Eichelberger, and Thomas K. Finletter.

By 1945, the Council on Foreign Relations, and various foundations and
other organizations interlocked with it, had virtually taken over the
U.S. State Department.

Some CFR members were later identified as Soviet espionage agents: for
example, Alger Hiss and Lauchlin Currie.

Other Council on Foreign Relations members--Owen Lattimore, for
example--with powerful influence in the Roosevelt and Truman
Administrations, were subsequently identified, not as actual communists
or Soviet espionage agents, but as "conscious, articulate instruments of
the Soviet international conspiracy."

I do not intend to imply by these citations that the Council on Foreign
Relations is, or ever was, a communist organization. Boasting among its
members Presidents of the United States (Hoover, Eisenhower, and
Kennedy), Secretaries of State, and many other high officials, both
civilian and military, the Council can be termed, by those who agree
with its objectives, a "patriotic" organization.

The fact, however, that communists, Soviet espionage agents, and
pro-communists could work inconspicuously for many years as influential
members of the Council indicates something very significant about the
Council's objectives. The ultimate aim of the Council on Foreign
Relations (however well-intentioned its prominent and powerful members
may be) is the same as the ultimate aim of international communism: to
create a one-world socialist system and make the United States an
official part of it.

Some indication of the influence of CFR members can be found in the
boasts of their best friends. Consider the remarkable case of the
nomination and confirmation of Julius C. Holmes as United States
Ambassador to Iran. Holmes was one of the CFR members who served as
United States delegates to the United Nations founding conference at San
Francisco in 1945.

Mr. Holmes has had many important jobs in the State Department since
1925; but from 1945 to 1948, he was out of government service.

During that early postwar period, the United States government had
approximately 390 Merchant Marine oil tankers (built and used during
World War II) which had become surplus.

A law of Congress prohibited the government from selling the surplus
vessels to foreign-owned or foreign-controlled companies, and prohibited
any American company from purchasing them for resale to foreigners.

The purpose of the law was to guarantee that oil tankers (vital in times
of war) would remain under the control of the United States government.

Julius Holmes conceived the idea of making a quick profit by buying and
selling some of the surplus tankers.

Holmes was closely associated with Edward Stettinius, former Secretary
of State, and with two of Stettinius' principal advisers: Joe Casey, a
former U.S. Congressman; and Stanley Klein, a New York financier.

In August, 1947, this group formed a corporation (and ultimately formed
others) to buy surplus oil tankers from the government. The legal and
technical maneuvering which followed is complex and shady, but it has
all been revealed and reported by congressional committees.

Holmes and his associates managed to buy eight oil tankers from the U.S.
government and re-sell all of them to foreign interests, in violation of
the intent of the law and of the surplus-disposal program. One of the
eight tankers was ultimately leased to the Soviet Union and used to haul
fuel oil from communist Romania to the Chinese reds during the Korean
war.

By the time he returned to foreign service with the State Department in
September, 1948, Holmes had made for himself an estimated profit of
about one million dollars, with practically no investment of his own
money, and at no financial risk.

A Senate subcommittee, which, in 1952, investigated this affair,
unanimously condemned the Holmes-Casey-Klein tanker deals as "morally
wrong and clearly in violation of the intent of the law," and as a
"highly improper, if not actually illegal, get-rich-quick" operation
which was detrimental to the interests of the United States.

Holmes and his associates were criminally indicted in 1954--but the
Department of Justice dismissed the indictments on a legal technicality
later that same year.

A few weeks after the criminal indictment against Holmes had been
dismissed, President Eisenhower, in 1955, nominated Julius C. Holmes to
be our Ambassador to Iran.

Enough United States Senators in 1955 expressed a decent sense of
outrage about the nomination of such a man for such a post that Holmes
"permitted" his name to be withdrawn, before the Senate acted on the
question of confirming his appointment.

The State Department promptly sent Holmes to Tangier with the rank of
Minister; brought him back to Washington in 1956 as a Special Assistant
to the Secretary of State; and sent him out as Minister and Consul
General in Hong Kong and Macao in 1959.

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