** World War II -- American Investments and business in Axis Countries and the Soviet Union country trends








American Companies: Investments in Axis Countries and the Soviet Union--Country Trends

World War II German motor vehicles
Figure 1.--A major weakness of the German Wehrmacht in preparing for World War II was that it was not fully mechanized. And it did not have an overall industrial capacity or a vehicle production capability comparable to the countries it would have to fight. Notice this German scene, a street completely devoid of civilian traffic and the vehicles atracting the interest of a boy because they were usual. I'm not sure what company built these vehickes.

American companies had substantial investments in Axis countries. The most important were in Germany which after World War I despeately needed capital and was the infustrial center of Europe. American corporations investing in Germany included: DuPont, Ford, General Electric, General Motors, Internsationsal Busines Machine, Kodak, and Shell Oil. GM (Opel) and Ford controlled 70 percent of the German automotive market when Hitler launched the War (1939). Both companies retooled their plants to produce equipment for the German war effort. As the War was to be a mechanzed struggle, their efforts were of some importance. Luckily for the Allies, the German automotive industry was much smaller than the American industry. Even so, the contribution of American automobile companies to the NAZI war effort was significant. A Congressiional investigation found, "The outbreak of war in September 1939 resulted inevitably in the full conversion by General Motors (GM) and Ford of their Axis plants to the production of military aircraft and trucks. [U.S. Senate Judiciary Committee, 1974] One of the weaknesses of the Wehrmacht was the limited mechanization and inadequate supply capability. The trucks built and track vehicles built at the American subsiduaries played an important role in strenthening the mechanized capability of the Wehrmacht. GM and Ford subsidiaries in the Reich built nearly 90 percent of the armored �mule� 3-ton half-trucks and more than 70 percent of the Reich�s medium and heavy-duty trucks. These vehicles according to American intelligence reports, served as �the backbone of the German Army transportation system'.

Axis

American companies had substantial investments in Axis countries. The most important were in Germany which after World War I despeately needed capital and was the infustrial center of Europe. American corporations investing in Germany included: DuPont, Ford, General Electric, General Motors, Internsationsal Busines Machine, Kodak, and Shell Oil. GM (Opel) and Ford controlled 70 percent of the German automotive market when Hitler launched the War (1939). Both companies retooled their plants to produce equipment for the German war effort. As the War was to be a mechanzed struggle, their efforts were of some importance. Luckily for the Allies, the German automotive industry was much smaller than the American industry. Even so, the contribution of American automobile companies proived very important after the NAZIs seuzed power (1933). The ciontribution to the NAZI war effort would be significant. A Congressiional investigation found, "The outbreak of war in September 1939 resulted inevitably in the full conversion by General Motors (GM) and Ford of their Axis plants to the production of military aircraft and trucks. [U.S. Senate Judiciary Committee, 1974] One of the weaknesses of the Wehrmacht was the limited mechanization and inadequate supply capability. The trucks built and track vehicles built at the American subsiduaries played an important role in strenthening the mechanized capability of the Wehrmacht. GM and Ford subsidiaries in the Reich built nearly 90 percent of the armored �mule� 3-ton half-trucks and more than 70 percent of the Reich�s medium and heavy-duty trucks. These vehicles according to American intelligence reports, served as �the backbone of the German Army transportation system'.

Soviet Union

The Bolheviks who seized power in Russia firmly believed thst they were waging a world wide revolution against capitalism (1917). They were shocked thst their success occured in backward Russia, a country with a popultion dominated by the rural peasantry. Marxist ideology projected that the Revolution would come in indudstrial countries with a fully developed indudtrial proleterit. From the beginning, the Bolsheviks began promoting subversise actions in capitlist targets. Germany was a priority target. Bolsheviks conspiratal attitudes were intendified when the Allies began intervening in Russia. This was never a msjor effort or well coordinsted. The United States effirt was primsrily focused on preventng arms and supplied sent to the Tsarist Giovernment and then the Proviionsl Government from reching gthe Bolsheviks. Actually the primary American effort after the Revolution was to prevent Russians from starving. The combination of the Civil War and Bolshevik barbarity resulted in a terrible famine also known as Povolzhye famine in which some 5 million Russiabs died, primarily because the Bolsheviks would not accept American hunmanitarian food relief. Had they not finally relented under international pressure many more Russians would have perished. As a result, of Bolshevik Markist economic policies, factories stood idle and farm production lagged. Lenin of all people began to grasp that and introduced the New Economic Policy (NEP), essentially market reforms meaning capitalism. The NEP violated fundamental principles of Markism everything in which the Bolsheviks believed. It was becoming obvious that that Communism with its socialist, planned economic system did not work. This would be undone by Stalin after Lenin's death. Stalin and his NKVD manged to hide the dreadful Ukranian famine. As a result, some in the West actually began to think of the Soviet Union as a worker and peasant paradice. This was especially the case as the Depression wreaked havoc on the Western economies. Socialism began to attract people in both Europe and America. Socialist parties began winning elections in Europe and Communist parties began to attract considerable suoport. Western businessmen began signing contacts with the Soviets. [Fitch] Some of the individuals involved were Averell Harriman, Armand Hammer, and Henry Ford. One of the first was W. Averell Harriman who negotiated a concession agreement with the Soviet Union to mine the manganese deposits of Tchiatouri, Georgia (1924). Hammer with more success helped the Soviet oil industry. Ford helped open tractor factories. Commercial ties developed between the Soviet Union and the United States, establishing the basis for further cooperation, dialogue, and diplomatic relations between the two countries. Stalin eradicate vestiges of capitalism. He was practical enough, however, to accept the assistance of corporaions with financing snd technology. European countries began recognizing the Soviet Union. The Roosevelt Administration regognized the Soviet Government (1933).

Sources

Fitch, Stephen D. "The Harriman manganese concession in the Soviet Union: Lessons for today," Berkeley Journal of International Law Vol. 9, Issue 1 Summer, Article 5 (1991).

U.S. Senate Judiciary Committee. (1974).








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Created: 3:19 AM 9/12/2009
Last updated: 6:58 PM 7/28/2018