The Unseen Hand - Ralph Epperson

Aid And Trade

In his monumental study entitled The Decline and Fall of the Roman Empire, historian Edward Gibbon listed five reasons that the enormous empire collapsed:

  1. The increase in divorce, undermining the institution of the family;
  2. The imposition of higher taxes for bread and circuses;
  3. The drive for pleasure, sports becoming more exciting and brutal; and
  4. The people lost their faith. But the most important was the fifth reason:
  5. The existence of an internal conspiracy, working to undermine the government from within, all the time that the government was proclaiming that Rome's enemy was external.

Gibbon reported that the conspiracy was building huge armaments for protection against both real and imaginary external enemies, all the while they were literally destroying the empire from within.

These causes have parallels in today's world as well. In fact, the creation of an external enemy is consistent with the lessons contained inside the book entitled Report From Iron Mountain, which teaches that:

"The existence of an accepted external menace, then, is essential to social cohesiveness as well as to the acceptance of political authority. The menace must be believable, it must be of a magnitude consistent with the complexity of the society threatened, and it must appear, at least, to affect the entire society."

An enemy must be created, and the Western powers, collectively called the "Free World," have created theirs: The Union of Soviet Socialist Republics, (Russia.)

Dr. Antony Sutton is probably the greatest writer on this subject, having written numerous books and articles on America's involvement in the building of the Soviet Union. His conclusions can be summarized in one sentence:

"The United States and her NATO [North Atlantic Treaty Organization] allies [some of the major countries of the free world] have constructed their own enemy: Communism."

In his book, National Suicide, Military Aid to the Soviet Union, Dr. Sutton has written:

"The blunt truth is that trade with the Soviet Union from [the Russian Revolution of] 1917 to the present has built the Free World an enemy of the first order. Moreover, the technological component of this continuing trade enables the Soviet Union to pursue its programs of world conquest. . . ."

This position, of course, is in direct opposition to the traditional position taken by the historians of the day who claim that the "Capitalists" of the "Free World" are detested by the "Communists" of the "Communist" world.

In another of his books, in this case a book entitled Wall Street and the Bolshevik Revolution, Dr. Sutton continued his thoughts on this trade:

"One barrier to mature understanding of recent history is the notion that all capitalists are the bitter and unswerving enemies of all Marxists and socialists. The idea is nonsense. There has been a continuous, albeit concealed, alliance between international political capitalists and international revolutionary socialists—to their mutual benefit."

This mutual relationship was illustrated by an article in the December 5, 1971 issue of Parade magazine, that was captioned "Cyrus Eaton: The Communists' Best Capitalist Friend." It showed a series of pictures of Mr. Eaton, first with Premier Kosygin of Russia, then with Fidel Castro of Cuba, and then with Nikita Khrushchev of Russia, Eaton's host on a trip to Moscow, Russia. In all of the pictures, each individual is smiling warmly, showing that each was warmly greeting the other.

The role of the Western Capitalists in the construction of the Russian economy is extremely significant, so important that it becomes the very source of Russia's military power: "There is no such thing as Soviet technology. Almost all, perhaps 90 to 95% came directly or indirectly from the United States and its allies. In effect, the United States and the NATO countries have built the Soviet Union, its industrial and military capabilities."

This transfer of technology is not a recent phenomenon: it was begun shortly after the Russian Revolution of 1917.

"Bridge building to the Soviets began in 1918, under President Wilson, before the Bolsheviks had physically gained control of more than a fraction of Russia. As a result of this trade, the Bolsheviks were able to consolidate their totalitarian regime."

Lenin himself wrote frequently of the need for this aid and trade. It is presumed that the reason he did so was to pacify his fellow Communists who couldn't understand Lenin's visible friendship with the "Capitalists" who other Communists considered to be the enemy. Lenin had to have some way of explaining why the "hated Capitalists" were now appearing in Russia to assist the Bolsheviks in Communizing Russia. He wrote the following in 1922:

"First of all, we have to stabilize the economy. Without equipment and machinery from the capitalist countries, we could not hope to finish this task in the short time available to us. The most significant circumstance in ensuring our continued existence . . . was the commencement of economic relations with the capitalist countries."

And once again:

"When the time comes for us to hang the capitalists, they will compete with each other for the profits of selling us the rope. The capitalists will furnish credits and, by supplying us with materials and techniques which are not available to us, they will rebuild our war industry which is essential to our future attacks on our own suppliers. In other words, they will be laboring to prepare their own suicide."

Later, Lenin's replacement, Russian dictator Joseph Stalin, would tell the Russian people just what the real purpose of the aid was:

"It is essential that the proletariat of the advanced countries should render real and prolonged aid to the backward nationalities in their cultural and economic development. Unless such aid is forthcoming, it will be impossible to bring the various nations and peoples within a single world economic system that is so essential to the final triumph of socialism."

The Communist strategy was to use the western technology as a means of creating a world-wide threat of military annihilation so that the Russians and the "Free World" could be merged into a one-world government

To achieve this end, it was not essential for the Russians to buy large quantities of imported technology. One item would do; the Russians could duplicate whatever they purchased. Lenin, in 1921, established the Soviet trade policy of: ". . . acquaintance with European and American technology Moscow must have one specimen of all the most important machines from among the latest in order to learn and to instruct."

A former Polish intelligence officer, Michael Cheeinski, who defected to the West, said: "Every machine, device or instrument imported from the West is sent to a special analytic group. Their job is not only to copy technical solutions but to adapt them to the specifications of Soviet military production."

It was America's early plan to conceal the true intent of their sale of technology to Russia: to build a superior Russian military power. To accomplish this subterfuge, it became their task to convince the skeptical that the technology was being sold to Russia to assist them in reconstructing their war-ravaged economy, and that such trade was civilian and not military.

For instance, some of the first factories constructed in Russia in the 1920's and 1930's were "tractor" factories, constructed in the Russian cities of Volgograd, Kharkov, and Chelyabinsk. All three were constructed by American companies, the one at Volgograd being constructed by eighty American firms.

These "tractor" factories, ostensibly constructed to supply farm tractors to the Russian farmer, today produce tanks, armored cars, self-propelled guns, rocket launchers, missile carriers, anti-aircraft guns, and trucks.

In addition, military tanks, so essential to any military structure, are constructed in two key production plants: ". . . the Gorki plant and the Zil plant. . . ." The Gorki plant was built from scratch by Henry Ford in the 1930's."

One of the early workers at the Gorki plant in Russia was Walter Reuther, later to become head of the United Auto Workers labor union. He visited Russia in 1933 for about eighteen months. Walter and his brother Victor, both employees in this plant, later wrote a now famous letter:

"The daily inspiration that is ours as we work side by side with our Russian comrades in our factory, the thought that we are actually helping to build a society that will forever end the exploitation of man by man, the thought that what we are building will be for the benefit and enjoyment of the working class, not only for Russia, but the entire world, is the compensation we receive for our temporary absence from the struggle in the United States.

"Mel, you know Wal and I were always strong for the Soviet Union.

"You know we were always ready to defend it against the lies of the reactionaries . . . .

"In all my life, Mel, I have never seen anything so inspiring.

"Mel, once a fellow has seen what is possible where workers gain power, he no longer fights just for an ideal, he fights for something which is real, something tangible.

"Carry on the fight for a Soviet America.

"Vic and Wal."

The American government was aware that the Russians were quickly converting these plants to military uses:

"Official Washington also knows that Soviet industrialization has been preeminently Soviet militarization. The first priority in Soviet industrial plants was given to the military departments.

"Indeed, the original drive behind Russia's industrialization was military.

"This objective was clearly stated in 1929 by Unaschlicht, vice president of the Revolutionary Military Soviet, before American firms went into Russia to carry out the Five-Year Plans:

"We must try to ensure that industry can as quickly as possible be adapted to serving military needs."

In addition to building the plants that produce the military hardware essential to Russia's armed forces, the Americans constructed essential industries to assist the actual construction processes. For instance, there are two major steel plants in Russia, one in Magnitogorsk, and another in Kuznetsk. Both of these plants were constructed by American companies, the one in Magnitogorsk by the Arthur G. McKee & Co., the builder of the U.S. Steel plant in Gary, Indiana, and the other by the Freyn Engineering Company of Chicago.

The oil industry also received American attention. After the Nobel family fled Russia following the Russian Revolution, Lenin gave three oil boring concessions to three major oil companies: Standard Oil Company; the Comparre Oil Company of New Jersey, formed by W. Averill Harriman; and Royal Dutch Shell.

In addition to the oil concessions, Standard Oil received a concession to build a 150,000 ton kerosene plant, capable of producing 100 octane gasoline. Standard Oil also concluded a deal with the Communists to market Russian oil in European markets.

These efforts in the oil industry have paid off, as today Russia is the world's largest petroleum producer. (A newspaper article in June, 1977, said one of the reasons Russia is selling oil outside of her borders is to pay for the import of Western technology. About one-tenth of their oil is sold to Eastern Europe, at OPEC prices.)

Dr. Antony Sutton has concluded that this Standard Oil concession to sell Russian oil has continued after 1935, and Gary Allen, another researcher of merit into this subject, has stated:

"It is possible the Rockefellers still own oil production facilities behind the Iron Curtain, drawing the profits out through Switzerland. By doing this, they would not have to share the loot with either their stockholders or the tax collector."

The Americanization of the Russian oil industry was so immense that in August, 1960 " . . . an American petroleum industry delegation [visiting in Russia] was shown four refineries in August, 1960—three of them . . . Lend Lease refineries [lent to Russia during World War II] and the fourth, either a Lend Lease refinery or a Soviet copy of a U.S. installation."

The tragic cost to the Russian people of this aid and trade was made known in 1934 when Henry Morgenthau, Roosevelt's Secretary of the Treasury: "removed restrictions on trade with Russia. . . although the U.S. Government had evidence concerning forced-labor camps in the Soviet Union. If forced labor was used, then production costs would be artificially lowered."

(Note: It goes without saying that the greatest profits are made when labor costs are the lowest. That would tend to please the "monopolistic capitalists" who enjoy making large profits.)

In addition to pursuing the military equipment needed for their Army, the Russians have utilized western technology and construction ability to produce a high percentage of both the Russian merchant marine, (Russia's sea-going merchant fleet) and their Navy. For instance, during the Vietnamese War, Dr. Sutton was able to identify eighty-four ocean going cargo ships being utilized by Russia in transporting military goods from Russian ports into the Vietnamese port of Haiphong. Sutton concluded from his research that: "None of the main engines in those ships were designed and manufactured inside the USSR. All the larger and faster vessels on the Haiphong run were built outside the USSR. All shipbuilding technology in the USSR comes directly or indirectly from the U.S. or its N.A.T.O. allies."

Western ship-building efforts for Russia are illustrated in the following statistics collected by Professor Sutton: "68% of all Russian ships were constructed in the West; 80% of all Russian diesel engines were built in the West; and 20% of all Russian engines were built in the USSR but under Western licensing."

Sutton went on to identify Japan and Western Germany as the largest suppliers of these ships. But others are busy as well, as: ". . . no less than 95 percent of all ships manufactured in Finland since World War II have been on Soviet account." All of the 11,000 horsepower marine diesel engines made in Russia are constructed according to technology supplied by Burmeister and Wain of Denmark.

Japan and West Germany and Finland and Denmark are supposed to be America's allies.

Western assistance to the Russian Navy is not recent, however. For instance, in March 1939, the American State Department approved a proposal by the English Boat Company of Groton, Connecticut, to send plans, specifications and construction services for the construction of a Russian submarine.

But the greatest military and technological assistance to the Russian government came during World War II, when the United States developed a program known as Lend Lease. This agreement obligated the Americans to supply the Russians with over $11 billion worth of a variety of war-making goods. Included in this list were the following items for the Russian Navy:

  • 90 dry cargo vessels,
  • 10 ocean going tankers,
  • 46 110' submarine chasers,
  • 57 65' submarine chasers,
  • 3,320 marine diesel engines,
  • 4,297 marine gasoline engines, and 2,700,000 naval guns.

In addition to the military equipment cited above, Lend Lease also supplied Russia with:

  • A $29 million petroleum refinery.
  • Patents for bombsights, military tanks, airplanes-helicopters, and bullet-resisting armor
  • Five factories for synthetic rubber
  • Locomotives
  • TNT, dynamite, and smokeless powder
  • Bombers and fighters
  • Tanks, trucks and trailers.

Lend Lease was also the excuse for sharing some of America's other military technology as well. For instance, General John R. Deane, who was secretary to the combined Chiefs of Staff in Washington during part of the war, reported:

"Our policy was to make any of our new inventions in electronics and other fields available to Russia. Each month I would receive a revised list of secret American equipment about which Russia could be informed . . . . We never lost an opportunity to give the Russians equipment, weapons or information."

In addition to Lend Lease during the war, America also permitted the Russian government to dismantle Germany's war making facilities, such as factories, dry-docks, cranes, etc., after the war as a form of war reparations.

"There is no question that there were sizable Soviet equipment removals from occupied areas after World War II: a minimum figure in excess of $10 billion in 1938 prices can be set for equipment thus removed."

The Russians literally dismantled factories down to the very foundation and removed them to Russia. These reparations were agreed to by the American and British governments at the meetings in Yalta and Potsdam.

The Russians also stripped Mongolia after World War II of: ". . . at least $800,000,000 of movable assets under the specious claim that it was 'war booty.'"

But the most important transfer to the Russians was the technology and material for the building of the atomic bomb.

It is customarily explained by the majority of current historians that the Russians received the secrets to the atomic bomb from convicted American spies Ethel and Julius Rosenberg who were charged with the giving of these plans to the Russians in 1950.

When Judge Irving Kaufman sentenced the Rosenbergs to death, he said:

"I consider your crime worse than murder Your conduct in putting into the hands of the Russians the A-bomb years before our best scientists predicted Russia would perfect the bomb has already caused, in my opinion, the Communist aggression in Korea Indeed, by your betrayal you undoubtedly have altered the course of history to the disadvantage of our country."

But the story of the atomic bomb occurred prior to the sentencing of the Rosenbergs. The American government had given Russia the bomb in 1943, during the Lend Lease program.

Major George Racey Jordan, an officer in the United States Army during the Second World War, was the officer in charge of the transfer of the Lend Lease supplies through the Great Falls, Montana, air base. It was here that the planes were loaded with the transferable goods prior to their being flown to Fairbanks, Alaska, where the planes were flown into Russia by Russian pilots.

[Illustration] from The Unseen Hand by Ralph Epperson


Major Jordan, curious by nature, opened various briefcases and cartons, and saw various words he was not familiar with on various papers: uranium, cyclotron, proton, neutron, cobalt, and plutonium. In addition, Jordan discovered various reports from "Oak Ridge, Manhattan District" (it was the "Manhattan Project" in Oak Ridge, Tennessee, where the American scientists were developing the plans for the atomic bomb) containing phrases like "energy produced by fission."

Jordan also discovered ". . . at least three consignments of uranium chemicals . . . nearly three quarters of a ton. Confirmed also was the shipment of one kilogram, or 2.2 pounds, of uranium metal at a time when the total American stock was 4.5 pounds."

These findings meant little to Major Jordan until 1949, when Russia exploded their first atomic bomb. It was then that he realized that he had been witness to the transfer of the materials and plans for construction of Russia's atomic bomb. And this occurred in 1943.

Major Jordan's charges were corroborated by a novel written by James Roosevelt, the son of Franklin Roosevelt, in 1980. The dust cover of the book describes the contents of the novel, entitled A Family Matter.

"[President] Roosevelt. . . makes a bold secret decision—to share the results of the Manhattan Project with the Soviet Union."

The dust cover continues by informing the reader that Roosevelt has "written a novel of spine-chilling drama and authenticity." (emphasis added.)

The novel details how President Roosevelt gave Russia the plans for the atomic bomb in 1943 and 1944.

Not only did the United States government give Russia the plans for the atomic bomb, plus all of the ingredients to manufacture one, they also arranged for the Russians to secure a cyclotron at the end of the war. Life magazine detailed the circumstances in their October 3, 1949 article:

"In May, 1945—three months before the first bomb was dropped—Russians beat Americans to the punch and carried, off the cyclotron in the Kaiser Wilhelm Institute in Berlin."

It will be recalled that it was the plan of the Roosevelt administration to allow Russia to get to Berlin first.

But even with this technology supplied by the American government, there is still doubt that Russia exploded the atomic bomb in 1949, as it is claimed.

Life magazine of October 3, 1949, carried an article about the supposed explosion:

"U.S. Detects Atomic Blast in Russia." President Harry Truman announced that "We have evidence that within recent weeks an atomic explosion occurred in the U.S.S.R."

The article reported: "It seems probable that the blast was caused by a bomb." It appeared that no one was certain that the Russians had exploded the bomb, including even the Russians: "Vishinsky, the Russian Foreign Minister, pretended ignorance, refused comment"

It would seem probable that, if Russia had exploded an atomic bomb, it would have proudly announced it to the world, complete with pictures documenting the fact

Life attempted to prove their case with a: "Picture of possible A-bomb structure [that] appeared in a Russian-zone German paper."

The evidence that Russia had exploded an atomic bomb was a picture of a "possible" A-bomb, from an unspecified newspaper with no apparent reported connection with the Russian government.

Life then clinched the argument: "It is even remotely possible that the Russians have developed a superior bomb. No one knows. Most information on Russian accomplishments is purely conjectural."

But they continued the myth in a later article, in their October 10, 1949 issue entitled "Can Russia Deliver the Bomb?" "Now that Russia has the bomb—and perhaps a supply of them—"One would have to fairly conclude that the evidence confirming the supposed explosion was not very convincing. But America has not ended its assistance of Russia's nuclear industry. An article in the Wall Street Journal of April 25, 1975, headlined: "U.S. Quietly Allows Uranium Shipments to Soviet Union for Processing Into Fuel" The article detailed that the State Department had approved the sale of 1.4 million pounds of uranium oxide mined in Wyoming and New Mexico to the Soviet government. It would in turn be processed into pellets rich in uranium 235. "This isotype provides the power for nuclear electric plants and for the atomic bomb." (emphasis added)

The answer to the question as to why the State Department and the American government first gave Russia the plans for constructing the atomic bomb, and then later the materials to put into it, quite possibly was given by the authoress Rose Martin, in her book Fabian Freeway:

"Until such time as international control of atomic energy has been achieved, the threat of nuclear destruction could always be raised to generate that atmosphere of perpetual crisis needed to justify Keynesian spending politics."

How all of this aid and trade comes together was made abundantly clear on September 1, 1983, when the Russian government shot down an unarmed Korean Air Lines 747 jet over Russian waters. There were 269 passengers aboard the plane and they were all killed.

The media quickly reported that it was a Russian made airplane that had shot at least two Russian made aircraft-to-aircraft missiles into the plane.

The tragic truth was that even though the Russian missiles and the jet were built in Russia, they were built from American technology.

For instance, during the Lend Lease program of World War II, America "lent" Russia: 3,000 pursuit planes, communication equipment, radio direction finders, altimeters, radio compasses, radio locators, aircraft construction equipment, aircraft manufacturing factories; the Corps of Engineers built airports in Russia; radar, aircraft lubricating oils, gasoline, nitric acid (used in making explosives,) gyroscopes, and aluminum sheet factories.

Later, in 1946, America turned over two-thirds of Germany's aircraft manufacturing capacity to Russia. These factories and installations were crated off to Russia to form the nucleus of their jet aircraft industry. One of the engineers turned over to Russia later developed their MIG-15, the aircraft that was flown in Korea against American pilots. The MIG-15 was powered by a jet engine purchased from Rolls Royce of Great Britain, America's supposed ally. During that year, America sold Russia boring machines, balancing machines used in balancing jet engine shafts, and grinding machines.

Between 1960 and 1973, America sold Russia: aluminum oxide, rubber compound chemicals, airborne navigation equipment and parts, electronic computers, information on the distillation of petroleum, flexible printed circuits, technical data for the engineering and planning for aircraft production, and technical data for aircraft landing system instruments. In 1974, General Dynamics sent Russia technical data for aircraft construction. And America trained Yugoslavian jet pilots (Yugoslavia is Russia's Communist ally.)

In what can only be termed a strange arrangement, America sent its latest technology in jet aircraft, the F-16, on Russian ships to NATO countries in Europe in 1978. Technicians at Wright-Patterson Air Force Base, where the United States tests its latest aircraft technology, report that Russian generals are among its frequent visitors.

Czechoslovakia is the largest supplier of jet aircraft to Russia outside of its borders. Their largest plant, producing not only jet aircraft but other materials for war purposes, has an agreement with an American machine tool company to supply them with the latest in machine tools.

Russia's missiles also have an American background. The United States government has sold Russia accelerometers used to measure gravitational pull on missiles, ball bearings used in missile guidance systems, miniature ball bearings that gave Russia the ability to place multiple warheads on their missiles, technology on high explosives, and entire chemical plants capable of making explosives.

But there is something even more incredible in the story of the Korean Airlines flight 007. Diagrams in various American news magazines show the airplane "wandering off course" over the Kurile Islands and the Sakhalin peninsula, all within Russian territory. It will be remembered that these former Japanese territories were among the lands given to the Russian government at the end of World War II by President Roosevelt

If President Roosevelt had not given these areas to the Russian government, flight 007 could not have "wandered off course."

There are some who are wondering whether the airplane was shot down, not because it strayed over Russian waters, but because one of the passengers on board was the most vocal opponent of such Russian aid and trade. Was it a coincidence that the most vocal anti-trade member of Congress, Congressman Larry McDonald, was aboard the plane shot down by American technology sent to Russia in the name of "peaceful trade?"