Friday, December 31, 2010

Happy New Year!

Understanding China's Rare Earth Metals Policy

The Chinese seem to have legitimate reasons for controlling supply, starting with their own burgeoning domestic demand derived from multiplying middle class development. It seems the strategic importance of the elements will ease legislative and regulatory restrictions that had helped to shut down US production previously, in favor of cheaper Chinese sources. However, for now, the demand/supply equation has been wildly swayed, and prices have rocketed. For instance, in 2003, you could get a pound of dysprosium for $6.50, though I don't know where. Today it runs upward of $132 a pound. Thus, capital is running to rare earth miners and companies whispering of moving some of their mining resources to rare earth production.

Click here to read his entire essay.

Thursday, December 30, 2010

2011 Will be the Year of Rare Earth Metals

An announcement this week by China that it plans to cut export quotas for rare earth minerals next year is raising concerns about future supplies of the increasingly sought after natural resource that is a crucial component in a wide range of high-tech goods. The move is sparking trade concerns and helping boost the hunt for and production of rare earths outside of China.

Approximately 97 percent of the world's production of rare earth minerals is located in China.

So, when China announced this week that it was cutting its quotas for the export of rare earths, countries and companies that rely on the elements for the production of everything from high-tech electronic devices to electric cars, wind turbines and defense systems began voicing objections.

Japan's electronics giant Sony says the move is a hindrance to free trade, adding it will try to reduce its reliance on Chinese supplies.

U.S. representatives at the World Trade Organization say they're "very concerned" about the restraints and have raised the issue with China. The U.S. says it may complain to the WTO about China's export restraints.

China's Export Controls

China argues that its export controls are in line with World Trade Organization rules.

Foreign Ministry spokeswoman Jiang Yu says the measures are necessary to protect China's environment and supply of resources. She adds that in the future China will continue to provide rare earth products to the international market.

Concern over the export of rare earth minerals has been building in recent months.

China slashed export quotas for the minerals in the second half of 2010, citing a shortage of supply for domestic manufacturers. And, when it was embroiled in a diplomatic dispute with Tokyo, shipments of the minerals to Japan were temporarily interrupted.

Gabe Collins, the co-founder of China Sign Post, says that he does not believe China will let the issue cause too much unnecessary friction in its relations with other countries.

However, he adds that should another dispute arise with Japan, the rare earths issue could again surface. China and Japan are the two major rare earth component producers in the world.

China's Industrial Policy

China's moves to cut quotas, Collins says, are ultimately reflection of its industrial policy.

"This is a manifestation of a Chinese industrial development policy," he says. "They want to keep they want to keep the higher value added steps of the manufacturing chain in China."

While the decision is raising concerns from governments, it is giving companies outside of China that are already in the business of mining rare earth minerals or working to restart projects a big boost.

Companies such as Australia's Lynas Corporation and the U.S.-based Molycorp have seen their share prices shoot up since the decision was announced.

Molycorp resumed operation of its rare earth metal facility in California last week. The site was shut down in 2002 amid environmental concerns and low costs for rare earth metals from mines in China.

Alaska and others states are actively assessing the prospects for the mining of rare earths.

Bob Swenson, director of Alaska's division of geological and geophysical surveys, says: "The Bokan area is actually the only known minable occurrence of rare earth elements in Alaska. We do have many areas specifically in interior Alaska as well as down in southeast Alaska where we do have indications of permissible geology for rare earths and those are the areas we've really been focusing on."

In November, the U.S. Geological Survey carried out its first-ever assessment for rare earths. It found that deposits that total about 13 million metric tons had been found in 14 states.

World demand for rare earths is currently at about 120,000 metric tons per year, with China accounting for most of that demand. The remainder is split between Japan, the United States and Europe.

The bottom line: in five years, rare earths will no longer seem so rare. In the meantime, fortunes will be made--staggering sums--in the field and on the major stock exchanges.

Independent Israeli Intelligence and Security News Service Says Saudi Arabia Has Acquired Atomic Arms


China's Defense Chief Strikes Warlike Tone


A Modest Proposal for the New Year: America Should Outsource Energy Policy to an Ethical Foreign Expert

Whereas the leaders of both political parties in the United States have hollowed out the nation's economy in order to benefit relative handfuls of corporate shareholders and executives, and the bankers, lawyers, accountants, and consultants who have enriched themselves through globalization, the Obama administration should now consider outsourcing energy policy to a qualified foreigner with the expertise and ethics to do a first-rate job--for the whole country.

Surely, such a qualified individual can be found; and it isn't hard to imagine what he or she would do, given the power to move swiftly and effectively--in the national interest.

Simply put, the Ultimate Energy Czar-for-Hire would unlock the nation's awesome energy resources--immense, hidden-in-plain-sight reserves of oil and gas and coal and shale--to achieve energy independence. Tapping the neglected and despised (by liberal loons and the media that regularly disinforms them) fossil fuels with which America has been blessed would create millions of well paying, permanent jobs, generate hundreds of billions of dollars in tax revenues, and put the country back on the road to real prosperity.

Think about it: a Chinese or Indian energy expert tasked with making America energy independent.

This reporter volunteers to write the want-ad.

Related: George Will's must-read piece on China's insatiable appetite for coal.

Copper Climbs to Record on China News


Ahmadinejad Aiming to Take Power from Ayatollah


Wednesday, December 29, 2010



Can China Crush Gangster-Run Rare Earth Mines?



South Korea Getting Tough With North


Year in Review: Sino-India Relations


Miner's Shares Jump on China Rare Earth News


AFP: "China produces more than 95 percent of the world's rare earths, which are critical to manufacturing 21st-century goods from iPods to low-emission cars to wind turbines."

Japan, S. Korea Drawing Closer With US Push


Tuesday, December 28, 2010

Kimist TV Features Deranged Leader's Son

Still Silent on Persecution of Pakistan Christians and Molly Norris Case, Obama Takes Time Out of Hawaii Vacation to Defend Dog-Abusing Football Star

Click here and here to read a piece about the barbaric blasphemy laws of backward Pakistan, a nuclear-armed nation--and so-called ally of the United States--organized around Islam (the only rationale for the country's existence in the first place) ... and here to read about U.S. President Barack Obama's disturbing defense of the sadistic, dog-abusing Philadelphia Eagles (National Football League) quarterback, Michael Vick.

In April 2007, Vick was found to have been involved in an illegal interstate dog fighting ring that had operated over five years. In August 2007, he pleaded guilty to federal felony charges and served 21 months in prison, followed by two months in home confinement.

Obama has yet to speak out on behalf of Christians, other minorities, and secular Muslims who are increasingly attacked, persecuted, and oppressed in Muslim lands (where, incidentally, dogs are routinely abused and neglected by cruel and ignorant populations).

And, although he shockingly intervened in France's burqa controversy--on the side of barbaric burqa backers--and spoke out in support of the perfidious Ground Zero mosque project--Obama failed to reach out to Molly Norris, the innocent, American cartoonist forced into hiding by Muslim fanatics. America's first Muslim-born President (according to Islamic law) could have offered her sanctuary--in the White House. Instead, he ignored her awful plight.

Click here for an update on that story, which the Islamist-appeasing, Obama-adoring, liberal media have deliberately downplayed or ignored.




S. Koreans Alarmed by North's New Uniforms


Thursday, December 23, 2010

Venezuela's Tropical Mussolini Tightens His Grip




INSTANT ANALYSIS: Weakness--real or perceived--invites aggression. China Confidential analysts believe that the Kimist regime believes that it can actually drop an atomic bomb on South Korea--and on U.S. forces there--without fear of U.S. nuclear reaction, given President Obama's commitment to nuclear disarmament and arms control. North Korea is far more dangerous and unpredictable than imagined; and the jury is still out on China's real position. And North Korea's partner in proliferation--Iran--is involved in all these developments. The Axis of Evil is alive and well.

Tuesday, December 21, 2010


Instant Analysis: On the one hand, the news does not make sense. South Korea seems to be inexplicably playing with fire. Thus, the China Confidential forecast of Korean clashes--before Christmas or the New Year--could still come true.

On the other hand ... Reuters observes that although the North
could lob thousands of artillery rounds into more populated and developed areas of the South, including the dense capital region of Seoul, home to about half of the country's population, and fire missiles at cities in the South and in Japan, causing crippling economic damage....
an all-out war between the rival Koreas
is unlikely. North Korea's obsolete conventional armed forces and military equipment mean quick and near certain defeat if it wages full-scale war, and Pyongyang is well aware of its limitations.

'Biography' of Fictional Hawaiian-Chinese Detective Shows Xenophobia and Racism Can be Overcome

Charlie Chan Rivaled Holmes and Marlowe

"CHARLIE CHAN, the celebrated fictitious Hawaiian-Chinese detective hero of six novels and 48 films, is elevated to new heights of inter-racial significance in this scholarly, imaginative and witty work of cultural analysis by Yunte Huang, an academic with a sense of humour. Huang was born in China, gained a doctorate in Buffalo, New York, taught at Harvard and is now a professor of English at the University of California, and, like Charlie Chan, demonstrates in person that Rudyard Kipling was wrong: East is East and West is West and the twain have met."

Click here to read the Irish Times review of Charlie Chan by Yunte Huang.

More Muslim Madness: Koran Written in Blood of Psychotic, Mass Murdering Despot Saddam Hussein

Only in Iraq ... or Allah-knows how many Muslim countries ... could this happen. Click here for the story.

Incredibly, Liberal Idiots of Appeasement (led by the Appeaser-in-Chief in the White House) insist that civilized people respect 'Muslim World' culture ... meaning, barbarism and backwardness, burqas and brutality, head-slicing and headscarves, atrocities and amputations, clerical fascism and female genital mutilation, hatred and Holocaust-denial, violence and intolerance, terrorism and torture.

So it goes in the so-called politically correct Global Era, where propaganda passes for news, disinformation for analysis, and so on and so forth.

Exploring China's Kingdom of Women: Mosuo Tribe Near Tibet May be World's Last Matriarchal Society

Long Isolated, Gentle, Peaceful People Threatened by Tourism, Sex Trade

Click on this Headline to Read All About it:

Malaysian Gay Man Threatened With Death


White House, Liberals, Mainstream Media Ignore
'Muslim World' Persecution of Gays and Lesbians

Inconvenient (for Liberal Viewers) Video: Kuwaiti Islamist Calls
for Mass Murder and Torture of Homosexual Men and Women

S. Korean Christmas Tree Could be New Flashpoint



Some 20 American military personnel were on the island at that time of the drill, taking support and observer roles. This, according to Jang Sung-min, a former South Korean presidential aide for national security, who was in charge of the presidential Blue House Situation Room, served as a crucial deterrent. "My observation on North Korean behavior for many years is that North Korea doesn't meddle into a South Korean military drill when US arms servicemen also participate," said Jang.

"North Korea's strategy was to threaten the ally of the US so that the US would come to the negotiation table. But it also feared that the situation might become a major clash between North Korea and the US, in case US military personnel became casualties," said Jang.
Click here to read the entire article, "The Day the Guns Were Silent."

Further Analysis: Rock, Paper, Scissors

Click here to read about the gamesmanship that seems to be at play. An excerpt:

Jonathan Pollack, a senior Fellow of Foreign Policy at the John L. Thornton China Center, says Chinese influence on North Korea is increasing. "There has been a distinct pattern at work that is trying to increase North Korea's dependence and reliance on China. And North Korea's apparent willingness (and) readiness for the moment to align more fully with China," he said.

Pollack says Beijing has been making a steady move toward strengthening its relationship with Pyongyang. "Through economic assistance, energy aid, provision of food, a supply of consumer goods, a slow but measurable increase in Chinese inroads in the North Korean economy, particularly in terms of resource exploitation and infrastructural development," he said.

Pollack says the imminence of a leadership succession in North Korea has convinced Beijing that it must accommodate the regime, its policies and nuclear program for now to maintain stability in the immediate region. He says U.S. policy is taking a similar stance for mostly security reasons.

"The United States is pursuing a strategy in the near term very much of prevention, trying to enhance U.S. response options, heighten collaboration and communication with both of its North East Asian allies (South Korea and Japan)," he said.

Monday, December 20, 2010

Iran Threatens to Murder US Generals

'In the Far East, North Korea is backed by the ascendant power, China. In the Middle East, Iran aspires to be the ascendant power.'

Click here to read the New York Post editorial, "Iran Rising."

UK Counterterror Raids Nab 12 Muslim Men


Sudan President Threatens to Impose Strict Sharia





China Confidential instant analysis and forecast:

  • Seeking to avoid a full-blown war in Korea, China managed to control its wholly dependent vassal.
  • North Korea will probably retaliate in time, with new provocations and/or new nuclear and missile tests.
  • The Obama administration's tough stance--standing by America's South Korean ally and its decision to go ahead with the live-fire drill--will give the administration political cover to continue to try to engage and enter into a Grand Bargain with Iran.
  • If North Korea refrains from actually attacking South Korean targets, it could be a sign that the United States and China have quietly reached some understandings regarding the Middle East--meaning Iran--and Taiwan. Pay attention to the term Grand Bargain. Conceptually, Obama is receptive to it with respect to both Iran and China, which means that Israel and Taiwan could be in for some tough sledding this winter.

Saturday, December 18, 2010

Obama Risks War With Nuclear-Armed North Korea While Pursuing Phony Peace with Nuclearizing Iran

Early Warning.

In light of its seemingly tough stance on nuclear-armed North Korea and secret dealings with nuclear-arming Iran (scroll down for the stories), the embattled Obama administration may be willing to take extraordinary risks and move in unexpected ways in order to bolster the President's popularity and reelection prospects for 2012. Obama's opponents and critics may have underestimated his political skills.

He improved relations with Iran, stood up to North Korea, got us out of Iraq and Afghanistan, and saved America from full-blown depression ... this reporter can see it now. It will all end catastrophically, of course, because Islamist Iran is pursuing an imperialist foreign policy--the regime actually boasts that it intends to overthrow the current world order--and by definition cannot be appeased. But the disasters could be delayed long enough to assure an Obama second term.

Israel's leaders should pay careful attention. The Big Middle East Fix may be in. Not for nothing has Obama cozied up to Turkey's crypto-Islamist regime; not for nothing has Jordan's King Abdullah announced his intention to visit Iran, and, more important, to avoid further criticism of its horrific policies. There could be more to the Jordanian king's kowtowing to Tehran's turbaned tyranny than meets the eye. Jordan is an American client; and its monarch may be following orders.



China Confidential analysis: Shooting War Could Start Before Christmas

Top US Military Officer: Iran Trying to Build Bomb


Left unsaid: Barack Obama's 2008 Presidential election victory guaranteed Iran time to develop weapons, including missiles and atomic arms, given his promise to "engage" the monstrous mullahocracy (code for appease and attempt to align with Iran in a Grand Bargain). For Iran's atomic ayatollah and mad mullahs, Obama was an Allah-sent U.S. Commander-in-Chief.

Thursday, December 16, 2010

Al Qaeda Planning Christmas Season Suicide Attacks

An Al Qaeda Christmas offensive? Click here for the story.

US Military Confirms China Confidential View New South Korean Drills Could Spark Full-Fledged War


Pyongyang Probably Right About Maritime Border, But US and Seoul Stuck with Defending the Line

An international mess, explained over here.

Bernard Lewis Says 'Survival of Our Civilization' at Stake in Centuries-Old Struggle With Radical Islam

Expert on Islam Compares Current Conflict
With Wars Against Nazism and Bolshevism

Chevron Sought Iran Oil Deal: WikiLeaks


Chevron, the American (in name only) multinational energy behemoth, sought to develop oil reserves straddling Iraq and Iran, in spite of sanctions on Iran that would have made the venture illegal. Click here for the story, which recalls Chevron's dealings with Nazi Germany--before and during World War II--when the company was called Standard Oil. Scroll down to read about that awful chapter in the history of one of the original Seven Sisters (now known as the six Supermajors), which was first unearthed in Charles Higham's must-read classic, Trading With the Enemy: the Nazi-American Money Plot 1933-1949.

New Korean Conflict Before the New Year?

Tensions on the Korean Peninsula continue to rise, as reported here and here, and here also.

North Korea could again attack the South as early as next Tuesday; and Seoul has vowed to respond to any new aggression with military action--namely, aerial bombing raids. If that happens, Pyongyang is likely to escalate militarily; it could even shell the South Korean capital.

Bombardment of Seoul would almost certainly draw the United States into a conflict that could actually escalate into nuclear war. The North's repeated threats to use atomic arms against both South Korea and the U.S. should not be taken lightly. The Stalinist/Kimist/criminal regime--Iran's partner in nuclear/missile proliferation--is a true rogue state, capable of doing just about anything. Normal rules don't apply.

In short, China's Korean vassal has unleashed a dangerous dynamic that could lead to all-out war before the New Year. China, alone, has the power to preserve the peace; it should use that power at once, while there is still time to prevent a terrible catastrophe from occurring, one that is capable of engulfing not only the Korean Peninsula but Japan, too, and perhaps, even, the Middle East. The monsters ruling Tehran and their Hitlerian allies, Hezbollah and Hamas, could be tempted to launch their own acts of aggression should an already weakened and overstretched U.S. suddenly become involved in yet another war.

Obama Administration's Unthinkable Answer to Atomic Terror Threat: 1950s Advice to Americans to Stay Inside Until Siren Sounds After Horrible Blast


Shocking true story--read it

Fact is, there is no deterrent against an anonymous atomic attack on the U.S. homeland, given the Obama administration's appeasement policies. The only meaningful deterrent is to make it known that suspect (Muslim) nations will automatically be obliterated if a nuclear device of any kind is ever detonated on U.S. soil.

Wednesday, December 15, 2010

'Islamic Tidal Wave Coming'

The Muslim Brotherhood (which the Obama administration has attempted to engage) is aiming for worldwide sharia imposition. Click here or scroll down for the story.


Click here for the story.

Notice the contrast between the speed with which Obama spoke out ... in defense of nuclear-arming, Islamist Iran ... and his slowness in condemning Islamist terror attacks in Russia, as reported by China Confidential. Click here for the archived story.





New Report Reveals Shocking Extent of America's Postwar Collusion With Nazi War Criminals, Nazi-Arab Axis, Hitler-Husseini Palestine Conquest Plot

American Jewish Committee Responds to 'Sickening and Painful' Revelations

The American Jewish Committee (AJC ) on Sunday called a new National Archives report on collaboration between the United States government and Nazi officials immediately after World War II--as well as Nazi ties to Arab leaders during and after the war--an important contribution to establishing historical truths about the most tragic period of the twentieth century.

"The real shame is that these documents, critical for understanding our government's full role during the World War II era, were hidden for so long," said AJC Executive Director David Harris. "To have absolute proof 65 years later about what the U.S. did in assisting notorious Nazi leaders like Klaus Barbie, Rudolf Mildner and others is sickening and painful."

The documents are referenced in a new U.S. government report, "Hitler's Shadow: Nazi War Criminals, U.S. Intelligence, and the Cold War," published Friday by the National Archives and reported in The New York Times.

"The depth and intimacy of the relationship between Nazi Germany and the main Palestinian leader of the time, Haj Amin al-Husseini, Grand Mufti of Jerusalem, is particularly appalling," said Harris.

Hitler-Husseini Bond

"The National Archives now has left no doubt about Husseini's total collusion with the Nazis," said Harris. "The documents confirm that while Nazi Germany was exterminating the Jewish people across Europe, an alliance was forged with certain Arab leaders to go after Jews in the British Mandate of Palestine, which included the historic land of Israel."

According to the Times, the National Archives report revealed that Husseini had "energetically recruited Muslims for the SS, the Nazi Party's elite military command, and was promised that he would be installed as the leader of Palestine after German troops drove out the British and exterminated more than 350,000 Jews there."

The late PLO leader Yasser Arafat often proclaimed he was a descendant of the notorious Husseini.

The National Archives report also provides details of how several Nazi leaders, who had fled to some Arab countries, continued to channel their deep hatred of Jews.

"Whatever short-term gains our intelligence agencies had hoped to secure by giving a pass to Nazi mass murderers, letting them flee or colluding with them, stands out as a dark period in U.S. history," said Harris. "It is to the credit of this country, however, that, late though it is, the release of these revealing documents sheds needed light on that dark period."

EDITOR'S NOTE: The report's chapter dealing with the Hitler-Husseini relationship is republished below.

Nazis and the Middle East

Recent scholarship has highlighted Nazi aims in the Middle East, including the
intent to murder the Jewish population of Palestine with a special task force that
was to accompany the Afrika Korps past the Suez Canal in the summer of 1942.
Scholars have also re-examined the relationship between the Nazi state and Haj
Amin al-Husseini, the Grand Mufti of Jerusalem, as well as the postwar place
of the Holocaust in Arab and Muslim thinking. Newly released CIC and CIA
records supplement this scholarship in revealing ways.

Einsatzkommando Egypt

The 1946 testimony of Franz Hoth casts interesting light on both Nazi territorial
objectives and Jewish policy in 1940–42. British troops in Norway captured Hoth, an SS
and Sicherheitsdienst (Security Service or SD) officer who had served in a number of
different mobile killing units called Einsatzkommandos. When in March 1946 British
interrogators asked Hoth about the functions of the Einsatzkommandos, he studiously
avoided giving self-incriminating statements. His interrogator seems to have liked him:
“Hoth declares—and the interrogator is inclined to believe him—that throughout his
SD career, he tried to work in accordance with his ideals. It is not thought that Hoth
would consciously have made himself guilty of any crimes....” As a result of this
generous assessment, his interrogator let him get away with many evasive answers.

Nevertheless, Hoth gave useful background about the early 1941 training
of police officers slated for deployment in Africa when Germany expected to
establish a raw materials empire there. At the Security Police School in Berlin-
Charlottenburg, medical experts, Foreign Office officials, and other experts
lectured to three classes of about 30 police officers each; additional classes were
held for non-commissioned officers. “The purpose of these courses was to make
the students familiar with the history and problems of the former German
colonies in preparation for the day when these colonies would be retrieved by
Germany,” Hoth explained. Afterwards, all the German police officers went to
Rome (April 1941), attending an Italian police school where they learned how
the Italian police handled resistance in the Italian African colonies.

Hoth was friendly with a senior official of the Reich Security Main Office
(RSHA) named Walter Rauff, one of the inventors and distributors of the gas van
used to asphyxiate victims in Belarus and later at the Chelmno extermination
camp. Because of his connection with Rauff, who was slated for command of
an Einsatzkommando in North Africa, and his colonial training, Hoth was
appointed head of section I of Rauff’s Einsatzkommando Egypt, which was
assembled and dispatched to Athens in July 1942. There the unit waited for
General Rommel’s troops to conquer Egypt and move into the British-controlled
Mandate of Palestine, where roughly half a million Jews lived.

Rauff’s Einsatzkommando, technically subordinated to Rommel’s army,
reported directly to the RSHA in Berlin. After Reinhard Heydrich was assassinated
in Czechoslovakia, SS chief Heinrich Himmler took direct command of this
umbrella security-police organization. Two German historians have indicated
that Himmler conferred with Hitler about the deployment of Einsatzkommando
Egypt, which was to take “executive measures” against civilians on its own
authority, in other words, the mass murder of Jews. In 1946 Hoth commented
only that his Einsatzkommando was supposed to perform the usual Security
Police and SD duties in Egypt; he avoided saying that such duties elsewhere had
included the mass execution of Jews. But this context puts a rather different light
on what his British interrogator called Hoth’s idealism.

Hitler himself signaled his intention to eliminate the Jews of Palestine. In
a November 28, 1941, conversation in Berlin with Haj Amin al-Husseini, the
Grand Mufti of Jerusalem, Hitler said that the outcome of the war in Europe
would also decide the fate of the Arab world. German troops intended to break
through the Caucasus region and move into the Middle East. This would result
in the liberation of Arab peoples. Hitler said that Germany’s only objective there
would be the destruction of the Jews.

The British never prosecuted Hoth for his Einsatzkommando activities. But
he had also served in the Security Police in the French city of Nancy, and the
French military authorities found him guilty of crimes there. He was sentenced
to death and executed in 1949.

New Documentation: Haj Amin al-Husseini’s Contract

Recent books have added greatly to our knowledge of Haj Amin al-Husseini’s
activities as leader of anti-Jewish revolts in the British Mandate in Palestine in
1929 and 1936, as the impetus behind the pro-German coup in Iraq in April 1941,
and as a pro-Nazi propagandist in Berlin, broadcasting over German short-wave
radio to large audiences in the Middle East starting in late 1941.10 CIA and U.S.
Army files on Husseini offer small pieces of new evidence about his relationship
with the Nazi government and his escape from postwar justice.

The Nazi government financed Husseini and Rashid Ali el-Gailani, the
former premier of Iraq who had joined Husseini in Berlin after his failed coup
in Iraq. After the war Carl Berthold Franz Rekowski, an official of the German
Foreign Office who had dealt with Husseini, testified that the Foreign Office
financially supported the two Arab leaders, their families, and other Arabs in
their entourage who had fled to Germany after the coup. Husseini and Gailani
determined how these funds were distributed among the others. The CIA file
on Husseini includes a document indicating that he had a staff of 20–30 men in
Berlin. A separate source indicates that he lived in a villa in the Krumme Lanke
neighborhood of Berlin. From spring 1943 to spring 1944, Husseini personally
received 50,000 marks monthly and Gailani 65,000 for operational expenses. In
addition, they each received living expenses averaging 80,000 marks per month,
an absolute fortune. A German field marshal received a base salary of 26,500
marks per year. Finally, Husseini and Gailani received substantial foreign
currency to support adherents living in countries outside Germany.

Through conversations with other Foreign Office officials, Rekowski learned
that Nazi authorities planned to use both Arab leaders to control their respective
countries after Germany conquered them. Gailani was an Iraqi nationalist who
maintained good ties with the German Foreign Office. Husseini, however, was a
believer in a Pan-Arab state. His closest ties were with the SS. The other Arabs
were divided into one camp or the other.

SS-Sturmbannführer Wilhelm Beisner, like Hoth, an officer on Einsatzkom-
mando Egypt, had frequent contact with Husseini during the war. Beisner told
Rekowski that Husseini had good ties with Himmler and with Waffen-SS Gen.
Gottlob Berger, who handled the recruitment of non-German forces into the
Waffen-SS. SS leaders and Husseini both claimed that Nazism and Islam had
common values as well as common enemies—above all, the Jews.

Another independent source of information on Husseini’s ties with the SS was
the disaffected and abused wife of a young Egyptian, Dr. Abdel Halim el-Naggar,
who had worked in Berlin for the German Foreign Office and the Propaganda
Ministry. An Egyptian named Galal in Berlin edited an Arabic-language periodical
designed to stir up the Arabs to support Germany, and el-Naggar assisted him in
1940. By 1941 el-Naggar had his own Arabic publication for Middle Eastern audi-
ences, and in 1942 he took on the additional job of director of Nazi short-wave
broadcasts to the Near East. After Husseini came to Berlin, he wanted to coop-
erate with el-Naggar on Middle Eastern broadcasts, and for a time they worked
together successfully. Then el-Naggar established an Islamic Central Institute in
Berlin. Husseini had wanted to head this institute, and after el-Naggar refused him,
Husseini used his influence with the SS to get el-Naggar removed from the broad-
casting job.

In the fall of 1943 Husseini went to the Independent State of Croatia, a Nazi
ally, to recruit Muslims for the Waffen-SS. During that trip he told the troops
of the newly formed Bosnian-Muslim 13th Mountain Waffen-SS division that
the entire Muslim world ought to follow their example. Husseini also organized
a 1944 mission for Palestinian Arabs and Germans to carry out sabotage and
propaganda after German planes dropped them into Palestine by parachute. In
discussions with the Foreign Intelligence branch of the RSHA, Husseini insisted
that the Arabs take command after they landed and direct their fight against the
Jews of Palestine, not the British authorities.

Today we have more detailed scholarly accounts today of Husseini’s war-
time activities, but Husseini’s CIA file indicates that wartime Allied intelligence
organizations gathered a healthy portion of this incriminating evidence. This
evidence is significant in light of Husseini’s lenient postwar treatment.

In the spring of 1945, a German Foreign Office official reached agreement
with Gailani effective April 1: his cash payments were raised to 85,000 marks, but
Gailani would repay the Germans after his forces reconquered Iraq. Similarly,
according to a newly declassified document, the Foreign Office and Husseini
signed a contract for subsidies of up to 12,000 marks per month to continue
after April 1, 1945, with the Mufti pledging to repay these amounts later. In April
1945 neither side could have had much doubt about the outcome of the war. The
continuing contractual relationships meant that Nazi officials and the two Arab
leaders hoped to continue their joint or complementary political-ideological
campaign in the postwar period.

Declassified CIA and Army files establish that the Allies knew enough about
Husseini’s wartime activities to consider him a war criminal. Apparently fearing
Allied prosecution, he tried to flee to Switzerland at the end of the war. Swiss
authorities turned him over to the French, who brought him to Paris.

Haj Amin al-Husseini’s Escape

Right after the war ended a group of Palestinian-Arab soldiers in the British
Army who were stationed in Lebanon had staged anti-French demonstrations.
They carried around a large picture of Husseini and declared him to be the
“sword of the faith.”20 According to one source considered reliable by the rump
American intelligence organization known as the Strategic Services Unit (SSU),
British officials objected to French plans to prosecute Husseini, fearing that this
would cause political unrest in Palestine. The British “threatened” the French
with Arab uprisings in French Morocco.

In October 1945 Arthur Giles (who used the title Bey), British head of
Palestine’s Criminal Investigation Division, told the assistant American military
attaché in Cairo that the Mufti might be the only person who could unite the
Palestine Arabs and “cool off the Zionists.... Of course, we can’t do it, but it
might not be such a damn bad idea at that.” French intelligence officials, bitter
at France’s loss of colonial territory in the Middle East, said they would enjoy
having the Mufti around to embarrass the British.

Husseini was well treated in Paris. Meanwhile, Palestinian Arab leaders and various
Muslim extremists agitated to bring him back to the Middle East. According to the
American military attaché in Cairo, this plan initially embarrassed moderate officials
in the Arab League. But as prospects for a peaceful settlement in the British Mandate
for Palestine declined and as other Arab prisoners were released or escaped (Gailani
escaped), sentiment changed. A delegate of the Palestine Higher Arab Committee went
to Paris in June 1946 and told Husseini to get ready for a little trip.

According to another American source in Syria, at a meeting in the Egyptian
Embassy in Paris, the ambassador, the ministers of Syria and Lebanon, and a
few Arab leaders from Morocco and Algeria worked out the details of Husseini’s
escape. The French government learned of, or was informed of, the plan, but
chose not to intervene in order to avoid offending the Arabs of North Africa.
Husseini flew to Syria, then went via Aleppo and Beirut to Alexandria, Egypt.

By 1947 Husseini denied that he had worked for the Axis powers during the
war. He told one acquaintance that he hoped soon to have documentary evidence
rebutting this slander, which the Jews were spreading. Similarly, after Adolf Eichmann
was brought to Israel for trial in March 1961, Husseini, by now in Beirut, denied
having ever met Eichmann during the war. He said that he had been forced to take
refuge in Germany simply because British wanted to capture him. Nazi persecution
of Jews had served Zionism, according to Husseini, by exciting world sympathy for
them. Husseini never worked for American intelligence; the CIA simply considered
him a person worth tracking. He died in Beirut in 1974.