American Babylon
-Rise and Fall-


Part 4: A One World Vision, New York City, and the CFR

Cecil Rhodes and the One World Agenda
The Council for Global Domination
The CFR and the New York Financial Oligarchy
The CFR Creates the Postwar World

Cecil Rhodes and the One World Agenda

The Anglo-American Establishment is simply the powerful alliance of the top financial and merchant interests of Britain and the United States. On the British side political power became concentrated, beginning in the eighteenth century, in a group associated with the first modern multinational  corporation, the British East India Company, and in the City of London financial nexus (the "merchant bankers" that included Baring, Lehman, Rothschild and others). On the American side political power became concentrated by the early twentieth century in the factions that were associated with industry, commerce, and finance, such as Morgan (banking), Rockefeller (oil), Harriman (railroads), Carnegie (steel), Ford (automobiles), and DuPont (armaments). The so-called "great rapprochement" that took place between the British and American governments between 1895-1914 brought the Anglo and American factions together in the very simple common desire to dominate the world and to make a lot of money in the process.

One of the most important researchers of the Anglo-American Establishment in the twentieth century was the late Georgetown professor Carroll Quigley. His two most important books on the subject are Tragedy and Hope, published in 1966 but quickly suppressed, and The Anglo-American Establishment, not published until 1981 after Quigley's death. The cover of the latter work very fittingly depicts an upside-down American flag engulfed within the British Union Jack. Professor Quigley was a mainstream historian who claimed a pro-Establishment perspective and was thus allowed access to Establishment records and documentation, and his work has shown itself to be consistently credible and accurate and a primary source for understanding the makeup and evolution of the dominant political power in the world today.

For Quigley, the origins of the Anglo-American Establishment trace back to British imperialist Cecil Rhodes, and to his seven wills that controlled how his wealth was to be distributed after his death. The one consuming goal of Cecil Rhodes was to establish an Anglo-American alliance that would take over the world and establish a global empire. Near the end of his life Rhodes formed a secret group, together with his friends William T. Stead and Lord Alfred Milner, Britain's most influential journalists, and Lord Esher, later the influential advisor of Edward VII. The Group was formally established on February 5, 1891, and was named the "Society of the Elect." In an early letter to Stead Rhodes explained his vision for the Group,

The key of my idea discussed with you is a Society, copied from the Jesuits as to organization... an idea which ultimately [leads] to the cessation of all wars and one language throughout the world .... The only thing feasible to carry this idea out is a secret one gradually absorbing the wealth of the world to be devoted to such an object .... Fancy the charm to young America ... to share in a scheme to take the government of the whole world!

One of the most important creations of the Rhodes legacy was the Rhodes Scholarships that were set up in his seventh will. Through this endowment the best and brightest young students have been chosen from America and around the world and offered a chance to study at Oxford University. There they are indoctrinated in the philosophies and methods of the British elite to take their place in society as influential supporters of the Establishment's imperial agenda of "absorbing the wealth of the world." Dr. Dennis Cuddy's book The Globalists offers an excellent overview of the legacy of the Rhodes Scholarships over the years.

After Rhodes died, leadership of the Group that he had created passed to Lord Alfred Milner, and it became informally known as the Milner Group. In 1919 with the aid of Group member Lionel Curtis, and financial backing from Cecil Rhodes' close friend Sir Abe Bailey, the Royal Institute of International Affairs was created. It was organized on May 30 at a meeting of British and American experts that had been gathered in Paris for the Versaille peace negotiations. Quigley writes that the RIIA, "is nothing but the Milner Group 'writ large.' It was funded by the Group, has been consistently controlled by the Group, and to this day is the Milner Group in its widest aspect."

Quigley goes on to describe the American representatives of the meeting that created the RIIA,

The American group of experts, 'the Inquiry,' was manned almost as completely by persons from institutions (including universities) dominated by J.P. Morgan and Company. This was not an accident. Moreover, the Milner Group has always had very close relationships with the associates of J.P. Morgan and with the various branches of the Carnegie Trust.

The RIIA became headquartered in London at Chatham House, the former residence of Sir William Pitt, the first Earl of Chatham. Pitt was a member of the House of Lords when, in 1770, he remarked, "There is something behind the throne greater than the king himself." This is the basis of the phrase "the power behind the throne," and it is certainly an ironic twist that Pitt's home became the home of the most influential organization pushing behind the scenes for a world government. (Click here for the text of Sir Henry Kissinger's address to his allies at Chatham House on May 10, 1982, in which he embraced the imperial foreign policy of Winston Churchill over the idealistic American approach of Franklin Roosevelt.)

The Council for Global Domination

After establishing a formal organization through which the British and American elite would jointly seek world domination, and after establishing the British base in London, the American faction sought out a base in their capital, New York City. Initially these efforts faltered, but in 1921 an elitist dinner club that was suffering from inactivity, known as the Council on Foreign Relations, was officially merged with the RIIA. The inconspicuous CFR at the time was chaired by Wall Street lawyer Elihu Root, who supervised the merger and brought new life into the organization. After World War II it would become the Establishment's most influential voice dictating the nature of the post-war world.

Over the years the very mention of the CFR can bring forth accusations of "conspiranoia" from the Establishment media, its payrolled pundits and its mainstream academic dupes. This mainstream rejection of any critical analysis of the CFR's role over the years largely stems from the hysterical and counter-productive accusations that have come from the extreme right through organizations such as the John Birch Society. The basic JBS charge is that the CFR is a bastion of global Communism and that it has continually promoted the Communist movement around the world. This well-known accusation has actually been a very useful smokescreen for the Establishment, because the historical record is very clear that the agenda of the CFR has actually been that of the opposite extreme.

The JBS, through its accusations, implies that the agenda of the CFR must be that of promoting total government control over national economies, which is the basis of Communism. However, the reality is that the CFR's consistent agenda has been that of destroying the power of Nation-States around the world, eroding the State's legitimate role as caretaker of a fair economy, and limiting its fundamental function as the protector and promoter of the general welfare of its citizens. The CFR, since the end of World War II, has in fact been the most important foreign policy engine promoting Anglo-American corporate Imperialism around the world, utilizing laissez faire Capitalism as their weapon, and not Communism.

The CFR has always had a very complicated relationship with Communism (which will be discussed in an upcoming article), and not all of the far-right John Birch hysteria is off-target, but unfortunately it has clouded the issue of what the CFR represents, and has helped to shield it from legitimate criticism that it should have been bombarded with. However, this shielding has not been entirely successful, as evidenced by the groundbreaking 1977 work of Laurence H. Shoup and William Minter in Imperial Brain Trust: The Council on Foreign Relations & United States Foreign Policy. Their research offers documented proof that the CFR has been and is controlled by American corporate and financial interests that are predominantly based in New York City, and that the CFR has consistently influenced official American foreign policy to look out for those interests as its main priority. Part 3 of this study mentioned a number of specific cases where those corporate interests were forcefully protected by the Establishment as it worked through the US Government, and now with the help of Imperial Brain Trust (IBT) the influence and agenda of the Establishment as it has been channeled through the medium of the CFR will be examined.

The CFR and the New York Financial Oligarchy

After the CFR became the RIIA's American counterpart it was reorganized according to the plan of an appointed committee. Elihu Root became the honorary president, John W. Davis the president, Paul Cravath the vice-president, and Edwin Gay the secretary and treasurer. All of them were associated with Wall Street and all were based in New York City.

Elihu Root was the revered elder statesman of American diplomacy. He was a Republican that had served under McKinley as Secretary of War and under Theodore Roosevelt as Secretary of State. According to IBT,

Root was an early leader in America's imperial expansion, being responsible for organizing the administration of the overseas territories won by the United States in the Spanish-American War. He acted as counsel for several leading American corporations and banks of the time. In addition he advised Andrew Carnegie on his philanthropies, and served as first president of the Carnegie Endowment for International Peace.

Root was the direct mentor of Henry L. Stimson (CFR member from the beginning), who in turn served as Secretary of War under Taft, Secretary of State under Hoover, and then under FDR as Secretary of War from 1940. It was Stimson who pushed for the forced internment of Japanese Americans during the war, and it was Stimson's eight-person government committee that included four other CFR members that recommended the cruel and unnecessary atomic bombing of Hiroshima and Nagasaki under President Truman. One of Stimson's CFR colleagues on the committee, Karl T. Compton the president of MIT, argued that the bombs needed to be dropped to "impress the world." After Stimson's retirement from government service Stimson then passed the imperialist baton to his protégé, the Wall Street lawyer John J. McCloy, who chaired the CFR from 1953-1970. From Root, to Stimson, to McCloy there are three generations of CFR and Wall Street-based American Imperialists who worked their whole lives against the very ideals that the American Republic was founded upon.

John W. Davis, the CFR's first president, was another Wall Street lawyer. He served President Woodrow Wilson as solicitor general, and then as ambassador to Great Britain. After World War I he formed his own law firm in New York City and became the chief counsel for J.P. Morgan and Company. He was the Democratic presidential candidate in 1924, but was beaten in the election by Calvin Coolidge. In 1933 John W. Davis became involved in a fascist plot to topple the new Roosevelt administration that threatened the Morgan interests that were allied with the Bank of England, a plot that was exposed by Major General Smedley Butler but then covered up by the Establishment press. Davis also helped to found the American Liberty League, a Wall Street-dominated organization that masqueraded as a patriotic "grass roots" movement that opposed the New Deal.

Paul Cravath, the CFR's first vice-president was yet another Wall Street lawyer, and his firm, Cravath, Swaine and Moore was one of New York's largest and most influential. Cravath hired John J. McCloy and Henry Leffingwell (another influential CFR member), to work for his firm at different intervals.

Edwin Gay, the CFR's first secretary and treasurer, was not a lawyer, he was an economist and the first dean of the Harvard Business School. However he had close ties to Wall Street, and after World War I Thomas W. Lamont, the chief executive of J.P. Morgan and Co., made Gay the editor of his New York Evening Post.

In the third chapter of Imperial Brain Trust, entitled "The Council and the New York Financial Oligarchy," the authors delve deep into the council's membership, leadership, and financial backing to further expose its intimate ties to the New York corporate elite. They write,

We have located the Council on Foreign Relations at the center of a network linking both private and government sectors of the foreign policy community. The picture presented so far lacks an essential element, however, for neither the Council as an organization nor the Council network and community exist within an isolated world of foreign policy expertise. The Council is solidly based in the United States capitalist class and represents a conscious initiative of the dominant sector of that class, the New York financial oligarchy. Unless this is taken into account, the content of the Council's views and the extent of its influence are largely inexplicable.

Initial funding for the CFR came from individual members, chiefly those associated with the Morgan Group, and then later coming predominantly from the Rockefeller Group. In the late 1930s  the CFR began to receive funding from the major foundations, first coming from Elihu Root's Carnegie Corporation, and then from the Rockefeller Foundation, of which fourteen of its twenty-one trustees were CFR members in 1939. The CFR's current headquarters at the Pratt House in New York City came from the Rockefeller circle, donated to the Council in 1945 by Mrs. Harold I. Pratt, whose fortune came from her husband's years as an employee of Rockefeller's Standard Oil. In 1953 the Ford Foundation, which had been newly reorganized according to Establishment dictates, made its first contribution to the CFR, a $100,000 grant to finance a study on US-Soviet relations that was chaired by John J. McCloy, through which Henry Kissinger first made a name for himself. IBT remarks that this was the very same year in which McCloy became the chairman of the CFR, Chase Manhattan Bank, and the Ford Foundation all at once, an unsurpassed Establishment hat trick. The next year the Ford Foundation gave the CFR $1.5 million and the two organizations have had close ties ever since. (See the article "Time For Ford Foundation & CFR To Divest?" by Bob Feldman.)

In 1953 the CFR began its Corporation Service, a program offering seminars to business executives of corporations that gave $1000 or more annually to the Council. Twenty-five firms signed on for the service initially, but it grew quickly. IBT remarks that David Rockefeller was particularly active in recruiting corporations to sign up for the program and by 1972 it included 157 companies that together contributed hundreds of thousands of dollars to the Council each year. The third chapter of IBT includes the following table that documents the corporate presence within the CFR:

Table 3-3: Firms with Four or More Council Members as Directors or Partners (1969)

Industrials (with Fortune rank, 1970)
    8 members    U.S. Steel (12)
    7 members    Mobil Oil (6)
    6 members    Standard Oil (N.J.) (now Exxon) (2)
    6 members    IBM (5)
    5 members    ITT (8)
    5 members    General Electric (4)
    4 members    DuPont (18)

Commercial banks (with rank by trust holdings, 1972)
    8 members    Chase Manhattan Bank (2)
    8 members    J.P. Morgan and Co. (1)
    7 members    First National City Bank (5)
    7 members    Chemical Bank (12)
    6 members    Brown Brothers Harriman and Co. (private bank, not ranked)
    4 members    Bank of New York (8)

Life insurance companies (with Fortune rank, 1970)
    9 members    Equitable Life (3)
    8 members    New York Life (4)
    4 members    Metropolitan Life (2)
    4 members    Mutual of New York (11)

Investment banks
6 members    Morgan Stanley
    4 members    Kuhn, Loeb
    4 members    Lehman Brothers

Law firms (with 1957 ranks from Smigel)
    8 members    Sullivan and Cromwell (9) [the law firm of the Dulles brothers]
    7 members    Debevoise, Plimpton, Lyons and Gates (not in top twenty in 1957)
   7 members    Davis, Polk, Wardwell, Sunderland and Kiendl (6) [of the Morgan group's John W. Davis]
    5 members    Shearman and Sterling (1)
   4 members    Milbank, Tweed, Hadley and McCloy (7) [the law firm of John J. McCloy]

Investment company
    7 members    General American Investors

The authors of IBT explain why these major corporations and the banks and firms associated with them have such a strong interest in having a voice within the foreign policy think tank,

The firms listed in Table 3-3 are certainly included among the top "multinationals." Of the industrials and commercial banks, at least Mobil, IBM, and the First National City Bank earn more than 50 percent of their profits overseas. Chase Manhattan Bank has subsidiaries in over 100 countries and obtains almost 35 percent of its earnings from foreign operations, while Exxon and ITT make 39 and 38 percents of their sales, respectively, overseas. In 1974 DuPont made 28 percent of its total sales overseas and had over 100 plants in twenty-nine countries and territories outside the United States. General Electric, which reported 18 percent foreign sales, is also a full-scale "multinational," with manufacturing facilities in twenty-four countries and an international orientation aimed at building the "GE World System." J.P. Morgan does business in thirty-two different foreign countries and Chemical Bank in twenty-five. Even U.S. Steel, which had only five percent of its sales overseas in 1973, is heavily involved abroad in other ways, owning a near majority of stock in a manganese mine in Gabon, a copper mine in South Africa, a nickel mine in Indonesia, iron mines in Canada, and manufacturing or steel making facilities in Spain, Nicaragua, Italy, France, Brazil, India, and Germany. The other financial institutions and law firms listed, while not "multinationals," are intimately involved in the same world economic system as investors in and advisors to the industrial firms and commercial banks. It is thus clear that these corporations and their leaders, dominant in the Council on Foreign Relations, are most concerned with establishing and maintaining a foreign policy and world environment favorable to their very large economic interests overseas.

IBT goes further into documenting the makeup of the CFR by highlighting the seven major financial groups or factions that in 1977 (IBT's publication date) maintained the highest levels of influence within the Council. These factions were (and are) the Rockefeller Group, which controlled Chase Manhattan Bank, Chemical Bank,  the Bank of New York, Equitable Life, Metropolitan Life, Mobil Oil, the investment bank Kuhn, Loeb, the law firm Debevoise, Plimpton, Lyons and Gates, the law firm Milbank, Tweed, Hadley and McCloy, and Standard Oil of New Jersey (Exxon); the Morgan Group, which controlled J.P. Morgan and Co., Morgan Stanley, New York Life, Mutual of New York, the law firm Davis, Polk, and the multinationals U.S. Steel, General Electric, and IBM; the First National City Group (basically another subsidiary of the Rockefeller Group), which controlled First National City Bank, the law firm Shearman and Sterling, and International Telephone and Telegraph (ITT); the Harriman Group that specialized in banking and through which the Bush family rose to power; the Lehman Brothers - Goldman Sachs Group that was based in Wall Street and controlled General American Investors; the Sullivan and Cromwell Group, the prestigious New York-based international corporate law firm run by the Dulles brothers; and the DuPont Group, that has an international reach and specializes in armaments and chemicals.

The CFR Creates the Postwar World

Now that the dominant role of the New York financial oligarchy within the CFR has been explained, it is time to examine the hugely influential role that has been played by the CFR in formulating the economic and foreign policies of the United States government since even before World War II.

After Herbert Hoover was defeated by FDR the Establishment was faced with the emerging reality that laissez faire economic policies had been a major factor creating the Great Depression. The emerging trend became that of economic nationalism, and the monopoly held by the corporate/financial Establishment over economic decisions was challenged. The government was asked to take a role in regulating a fair financial climate and FDR's New Deal was a step in this direction. To meet the threat of "Big Government" the CFR's secretary-treasurer Edwin F. Gay published an article in the CFR's journal Foreign Affairs, which was followed by a study group that was chaired by John Foster Dulles and included influential members of FDR's administration. The end result was that the extent of FDR's domestic economic reforms were scaled back, and the passage of the Export-Import Bank and Trade agreements Act in 1934 "marked a return to traditional emphasis on foreign trade expansion as a solution to domestic problems." FDR was indeed influenced by the banking establishment, but he was influenced to tilt decidedly towards the right, in a direction that favored Wall Street and laissez faire capitalism, rather than towards the left as some conservative critics of FDR continue to imagine.

During World War II the CFR's most important program was its War and Peace Studies Project. IBT explains,

    The Second World War and the subsequent cold war were decisive turning points in the history of American foreign policy. They marked a move on the part of the United States toward a full-blown imperialism - a largely successful attempt to organize a single, world-spanning political economy with the United States at the center. Providing the intellectual rationale and leading this thrust toward global power was the Council on Foreign Relations...
    Among the groups depending on the Council for "light and guidance" was the United States Department of State. The department had just incorporated the top leadership of the Council's special War and Peace Studies Project into its own Advisory Committee on Postwar Foreign Policy, and the Council's research secretaries for the project into its own planning staff for half of each week.
    The War and Peace Studies were a turning point in American history...

The War and Peace Studies Project began in 1939 with funding from the Rockefeller Foundation. It was divided into five study groups (Economic and Financial, Political, Armaments, Territorial, and Peace Aims) that focused on specific aspects of the future postwar world, and plotted how to guide US foreign policy in a way that ensured the dominance of the New York-based financial and corporate powers. IBT documents the role of the Project in chapter four entitled: "Shaping a New World Order: The Council's Blueprint for World Hegemony, 1939-1975." At least four major postwar global institutions were planned either within the War and Peace Studies Project, or elsewhere within the CFR during the war, and then created afterwards:

The Marshall Plan for rebuilding Western Europe was created within a group headed by lawyer Charles M. Spofford, with a young David Rockefeller as secretary, called Reconstruction in Western Europe. This group maintained close contact with Secretary of State George C. Marshall for whom the plan was later named. The Marshall Plan provided American tax dollars to European governments which were then kicked back to American corporations to purchase imports and pay for the rebuilding of infrastructure. It was a very important plan for the New York financial oligarchy and John J. McCloy was dispatched to Germany to act as High Commissioner to oversee the early phases of the plan. The Marshall Plan worked out to be a gift to Europe from the American taxpayer and a very positive initiative to help Europe rebuild, but it was also a brilliant financial coup for Wall Street and for the many corporations involved that made millions.

The IMF and the World Bank were also envisioned early on within the CFR. In November 28, 1941 a memorandum was dispatched to FDR and the Department of State from the Economic and Financial Group of the War and Peace Studies Project. It mentioned the need for a US/UK board of financial experts to be set up to plan for an "international investment agency which would stimulate world trade and prosperity by facilitating investment in developmental programs the world over." This memo was then followed up by recommendations for what the board itself should recommend. Jacob Viner, the professor of economics at the University of Chicago who led the Group said in February of 1942, "It might be wise to set up two financial institutions: one an international exchange stabilization board and one an international bank to handle short-term transactions not directly concerned with stabilization." Viner's recommendations became a reality in 1944 at Bretton Woods, New Hampshire, when both the IMF and the World Bank were created under firm Anglo-American control. The role that these organizations have played in helping the Anglo-American Establishment "gradually absorb the wealth of the world" will be covered below.

The creation of the United Nations was also recommended by the CFR during the war, and the eighteen acres on the east side of Manhattan on which the UN headquarters now stand was donated to the UN by John D. Rockefeller Jr. in 1946. The first serious planning for the UN began with the Informal Agenda Group established by Secretary of State Cordell Hull. Hull was not a CFR member, but he was acting on CFR proposals and five out of the six original members of the IAG were members of the CFR. After the IAG produced a draft for the proposed UN they then turned to three distinguished lawyers to rule on its constitutionality. They were Myron C. Taylor (CFR director), John W. Davis (former CFR President and current director, and lawyer for J.P. Morgan Co.), and Nathan L. Miller the former governor of New York. When the UN was officially created at the international conference in San Francisco in 1945 the American delegation included seventy-four CFR members. IBT concludes,

The Department of State was clearly in charge of these propositions within the American government, and the role of the Council on Foreign Relations within the Department of State was, in turn, very great indeed. The Council's power was unrivaled. It had more information, representation, and decision-making power on postwar questions than the Congress, any executive bureaucracy except the Department of State, or other private group. It had a very large input into decisions on the International Monetary Fund, the World Bank, and the United Nations. The formulators of the Grand Area had indeed been able to gain positions of strength and put their plans for United States world hegemony into effect.

 The United Nations has been dominated by the Anglo-American faction of London and New York from the very beginning. Rather than supporting national sovereignty and strengthening the ability of nations to act on behalf of their peoples the UN has evolved into just another tool of Empire. The Establishment has been the main cause of the economic misfortunes in the world and the resulting  suffering and injustice since the end of World War II, and to remedy that injustice the Establishment offers the bogus solution of world government through multinational agencies and their unelected bureaucrats, spearheaded through the UN.

That the Establishment has dominated the UN cannot be argued, as author Phyllis Bennis proves in her book Calling the Shots - How Washington Dominates Today's UN. However, as is sadly typical of many commentators, Bennis fails to adequately explain that Washington is itself dominated by New York and that the elected representatives based in Washington are simply the puppets of the New York-based Corporate elite. Rockefeller would not have given the UN eighteen acres of prime Manhattan real estate and allowed the US to grant it sovereign territorial status, if he had not been completely certain that his family and the interests allied with it would always be in control of the organization.

For a greater understanding of the Establishment's CFR influence within the US government over the years, in central banking and the Federal Reserve System, in US colleges and universities, and in influential global governing bodies, please see this page at www.restoringamerica.org.

Part 5
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