The Devil’s Chessboard: Allen Dulles, the CIA, and the Rise of America’s Secret Government

“I wasn’t dumb enough to ask him where my bag was,” Gowen recalled years later. “I knew what had happened. I knew what they were looking for.” As it turned out, there were no intelligence files in Gowen’s stolen bag. But the story wasn’t over.

In January 1948, while Gowen was still stationed in Germany with Army intelligence, he received a transatlantic phone call from syndicated columnist Drew Pearson. The influential Washington journalist told Gowen that he was working on a hot scoop and that Gowen was at the center of it. Pearson was going to report that Ferenc Vajta, a fugitive from war crimes charges in Hungary, where he had worked as an anti-Semitic propagandist for the fascist Arrow Cross Party, had slipped into the United States illegally—with the help of young Nazi hunter Bill Gowen. Pearson claimed he had proof: documents that showed Gowen had worked closely with Vajta on various covert missions. As he listened to Pearson, Gowen was so flabbergasted that he didn’t know what to say. Pearson’s exclusive story ran in newspapers across America on January 18 and was amplified further by his coast-to-coast radio broadcast.

There was some truth to Pearson’s report. Gowen did indeed know Vajta from his days in Rome, when he had used the Hungarian as an informer to help track the notorious Croatian fugitive Ante Pavelić, the fascist leader of the Ustaše movement who led a genocidal campaign in the Balkans during the war that was so extreme he had to be restrained by German authorities. With the help of Ferenc Vajta, Gowen had traced Pavelić to a villa atop the Aventine Hill. Pavelić was under the protection of Croatian officials in the Vatican and other fascist sympathizers. From his villa, Pavelić was able to sneak into nearby safe houses through a series of secret passageways that honeycombed the Aventine.

Gowen was perfectly willing to rely on lesser criminals like Vajta to locate much bigger targets like Pavelić. But he had had nothing to do with providing Vajta a special State Department security clearance and slipping him into the United States. That sleight of hand was likely performed by Frank Wisner, a close collaborator of Dulles’s from their days in the OSS who had recently been appointed head of the State Department’s clandestine operations unit, the Office of Policy Coordination.

But it was Gowen who would take the fall for the Vajta escapade. It did not take him long to figure out who was responsible for setting him up. Pearson had been fed the false story by Raymond Rocca, Angleton’s deputy in Rome.

Pearson’s exposé effectively ended Gowen’s budding intelligence career. Gowen never stopped trying to clear his name. At one point, he managed to get an appointment to see Dulles after Dulles became CIA director, but when Gowen showed up at the agency’s headquarters in Washington to plead his case, he was told that the spymaster had been called overseas.

Years after both men returned to America, Angleton continued to keep an eye on Gowen. Back in Washington, where he eventually became the all-powerful chief of CIA counterintelligence, Angleton invited Gowen to lunch at the Army-Navy Club and even to his home in Virginia. “You know, he was a very devious character,” Gowen said, “but he wanted to give me the impression that he was very friendly. He introduced me to his wife, Cicely, and their children, who were very young at the time.” Angleton’s betrayal of Gowen hovered silently in the air. “I never discussed it openly with him, I never trusted Angleton enough to do that.” Both men knew who had won the power struggle in Rome. But they also knew that the secret history they shared had the power to undo Angleton’s grand career and expose the underside of Sunrise.

Intelligence reports do not normally make for entertaining reading. Few station chiefs come close to having the literary touch of onetime spies like Graham Greene, David Cornwell (John le Carré), or Ian Fleming. But, following his release from U.S. military detention in 1947, Eugen Dollmann’s espionage career became such a flamboyant mess that he inspired some of the most colorful memoranda ever produced by the U.S. intelligence bureaucracy. Reading through these declassified CIA documents fills one with awe for Dollmann’s endless powers of reinvention, and a sense of wonder as to why men as knowing as Dulles and Angleton ever saw him as spy material.

U.S. surveillance of Dollmann began (#litres_trial_promo) getting interesting in 1951, when he was located in a suite at the posh Hotel Paradiso, overlooking Lake Lugano in Switzerland, near northern Italy. By then, the colonel’s high life was beginning to catch up with him. He was reported to be in financial distress and looking for ways to make some quick cash. Among the schemes he was pondering was writing his memoirs—which he was promising would be dishy—and hustling various Nazi documents he claimed were authentic, including some supposedly written by Hitler. The colonel was shaking down the CIA for 200,000 lire in return for the “exclusive” rights to examine the documents.

Dulles and the CIA knew that there was great potential for embarrassment with Dollmann. As the years passed, the agency’s memos on the colorful SS veteran revealed rising levels of anxiety and exasperation.

In November 1951, Dollmann was reported to be in “close contact” with Donald Jones, which was an intriguing twist, since Jones was the OSS daredevil whom Dulles had asked to rescue Karl Wolff from the Italian partisans during the war. Jones was “still presumed to be an agent of U.S. intelligence,” but the memo made clear that Dollmann’s contact with him was not strictly professional. “The two are now divided because of a quarrel, presumed to have originated over a question of money, or perhaps jealousy, since both are suspected of being sexual perverts.” The memo concluded that Dollmann’s value as “an agent or informer” was “uncertain … he is not the man he was in 1940–45.”

Dollmann, no doubt, would have readily agreed. For one thing, he had less money. And he was stuck in purgatory in Switzerland rather than enjoying the sweet life in his beloved Italy because U.S. agents had warned him they still could not guarantee his safety there.

Nonetheless, Dollmann would soon find himself in Italy—at least briefly—after he outstayed his welcome in Switzerland. According to a U.S. intelligence report, Dollmann was expelled from Switzerland in February 1952 after he was caught having sex with a Swiss police official. In desperation, Dollmann appealed to his old fascist friends in the Italian church, and he was spirited across the border and given temporary sanctuary at a Franciscan monastery in Milan. Dollmann’s savior this time, Father Enrico Zucca, was famous for his role in raising Mussolini’s body from the grave on Easter 1946 in preparation for the day when Il Duce would be reburied with full honors on Rome’s Capitoline Hill. The abbot had less spectacular plans for Dollmann. He slipped a monk’s habit on him and smuggled him onto a boat in Genoa, from where Dollmann was shipped to General Franco’s fascist paradise in Spain.

In Madrid, Dollmann came under the protection of former Nazi commando leader Otto Skorzeny, who had put together a wide-ranging racket, trading in arms and helping SS fugitives flee justice. Skorzeny was joined for a time in Spain by Hjalmar Schacht, who had been acquitted at Nuremberg and would parlay his reputation as Hitler’s banker into a postwar career as an international financial consultant. Schacht knew where much of the wealth plundered from Europe by German corporations and Nazi officials had been hidden, and Skorzeny used this inside knowledge to help finance his SS ratlines. Angleton also found Skorzeny’s services useful, and he kept in regular touch with the entrepreneurial ex-Nazi.

Dollmann undertook errands for Skorzeny’s international neo-Nazi circuit. But Dollmann was no good at the freelance espionage game. In October 1952, he flew to Germany on some sort of political mission to make contact with German youth groups. His plans were betrayed and he was arrested at the airport as soon as he landed. The authorities accused him of traveling on a false passport, and he didn’t bother denying it. Even in his native Germany, Dollmann was a man without a country. No government wanted to claim him—at least not openly.

A November 1952 CIA memo reported that Dollmann was back in Rome. He started haunting his favorite cinemas again, but this time it nearly proved fatal when “he was noticed by certain Communist elements” in the theater and had to be “rescued by the police from a threatening mob.”

Still desperate for cash in Rome, Dollmann again tried his hand at selling Hitler documents that he insisted were genuine. This time he was dangling an Operation Sunrise angle that Dulles certainly found compelling. Among the papers in his possession, Dollmann swore, was a letter from Hitler to Stalin proposing a separate peace between Germany and Russia. Such a letter would have put Dulles’s own Operation Sunrise deal in a much better light. If Hitler and Stalin really did discuss their own pact near the end of the war, it made Dulles look like a brilliant chess player instead of an insubordinate troublemaker. Dulles’s friends at Life magazine let it be known that they would pay a staggering $1 million for such a letter. But Dollmann apparently never produced it.

Dollmann’s moneymaking schemes grew more frantic. In December 1952, he quietly reached out to Charles Siragusa, a federal narcotics agent in the U.S. embassy in Rome with close ties to the CIA. Siragusa had proved very (#litres_trial_promo)useful to Angleton over the years, as a bagman for political payoffs and as a link to the criminal underworld when the agency required the Mafia’s services. Dollmann had his own interesting offer for Siragusa. He proposed becoming a paid informant for the narcotics agent and infiltrating the neo-Nazi movement in Vienna, which he claimed was financing its activities by dealing cocaine.

Dollmann’s offer smacked of desperation, but, in fact, he was already spying on other ex-Nazi colleagues for the CIA. At the same time, in true Dollmann fashion, he was also hiring himself out to these neo-Nazi groups and reporting back to them about U.S. intelligence activities. As if this web of competing loyalties was not complicated enough, while Dollmann was living in Madrid by the grace of the Franco government, he was also working as a British spy.

By 1952, CIA station chiefs in Europe had grown deeply leery of Dollmann. That spring, an agency memo circulating among the field stations in Germany, Italy, and Spain warned “against [the operational] use of Dollmann … because he had already been involved with several intelligence organizations in Western Europe since 1945; his reputation for blackmail, subterfuge and double-dealing is infamous; [and] he is homosexual.” At one point, CIA officials even raised the possibility that Dollmann had sold himself to Moscow and was a Soviet double agent.

But it was not until 1955 that the CIA finally severed its ties to Dollmann. It took one last brazen blackmail attempt to persuade Dulles that he had to cut the cord. Dollmann had finished his memoirs that year, and, as promised, the book was rife with salacious details, including unflattering observations about Dulles and Angleton. Before the book went to the printers, Dollmann sent a message to Dulles through the U.S. consulate in Munich, letting it be known that he was eager “not to offend [my] great good friend” Dulles, and politely asking the CIA director to flag anything he found objectionable in the excerpts mailed to him. The implication was clear: They were men of the world who understood each other. They could certainly work out an appropriate arrangement.

After this, Dollmann abruptly disappeared from the CIA documentary record. The astute colonel undoubtedly realized that he had pushed his luck with the agency as far as he should, and, for his own good, it was time to retire from the spy game. He lived on for three more decades, trading on his notorious past to get by. He was a good storyteller, and his two colorful memoirs sold briskly in Europe. His astonishing tales even proved, for the most part, to be true. Dollmann also made frequent appearances on European television, and dabbled a bit in his beloved cinematic arts, writing the German subtitles for Fellini’s La Dolce Vita.

In 1967, an American writer named Robert Katz, who was working on a book about the Ardeatine Caves massacre, tracked down Dollmann, finding him in the comfortable residential hotel in Munich where he would live out the rest of his days. At sixty-seven, the silver-haired and still trim Dollmann seemed quite content with his life. His sunny garret in the blue-painted hotel was cluttered with photos, books, and memorabilia that recalled his former life. He was perfectly happy to live in the past, Dollmann told his visitor—after all, he had begun his career as a historian, until he was kidnapped by history.

At one point, Dollmann brought up Allen Dulles, his old American benefactor. Dulles had recently published The Secret Surrender, his Operation Sunrise memoir, and Dollmann was upset to read the spymaster’s description of him as a “slippery customer.”

“From the little English I know (#litres_trial_promo),” Dollmann told Katz in his perfect Italian, “‘sleeperee coostomer’ is not exactly a compliment. Is it?”

Katz explained that it meant someone who was shrewd, cunning, Machiavellian.

The colonel broke into a radiant smile. “Oh! That is a compliment—for me.”

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6 (#ulink_e991e881-a743-580c-961d-cc487c628c0f)

Useful People (#ulink_e991e881-a743-580c-961d-cc487c628c0f)

Allen Dulles’s wife, Clover, and his wartime mistress, Mary Bancroft, were both patients of Carl Jung. Mary began treatment with the man who was the second pillar of modern psychology in the 1930s, after moving to Zurich with her new husband, a Swiss banker. Clover entered analysis with Jung after reuniting with Allen in Switzerland in the final months of the war. The extroverted Mary got an electric charge from her connection to the great man, intellectually sparring with him, swapping gossip, and, although he was nearly three decades older, openly flirting with him. Clover, whom Jung quickly sized up as a classic introvert—sensitive, reticent, dreamy—had a more troubled reaction to him, and she terminated their relationship after a few sessions in favor of one of his disciples, a brilliant Jewish female analyst named Jolande Jacobi, who had fled the Nazi invasion of Vienna. After twenty-five years of marriage to Allen Dulles, Clover had had her fill of domineering men. Jung clearly was much more in touch with his female “anima” than her husband. But, still, the imposing figure struck her as “arrogant (#litres_trial_promo)” and made her feel small in his presence. With his gray mustache, rimless spectacles, and ever-present pipe, Jung even bore some resemblance to her husband.

Despite their striking personality differences—and their awkward romantic triangle—Clover and Mary developed a unique friendship that would last the rest of their lives. With her keen intuition, Clover sized up the situation soon after arriving in Bern in January 1945. Finding herself alone with Mary one day, she reportedly told her rival, “I want you to know I can see how much you and Allen care for each other (#litres_trial_promo)—and I approve.” This story gives Clover an authority over Allen’s amorous adventures that, in reality, she sorely lacked. In truth, no woman in Dulles’s life enjoyed this type of leverage over him. Even Mary Bancroft—who was allowed to participate in some of his secret life as his wartime courier, translator, confidante, and bedmate—would struggle for years to decipher her relationship with Dulles, which she called “the most complex and overwhelming (#litres_trial_promo)” connection of her life.

Clover and Mary were bound by their mutual fascination and bewilderment with Dulles. But the two women’s joint effort to understand the puzzle that was Allen Dulles was a doomed enterprise. On the surface he was full of a charm and gaiety that promised entry into a world of fascinating dignitaries and dazzling conversation. His air of mystery only seemed to add to his allure. But as the women in his life sought more from him, Dulles only revealed a deeper and deeper emotional impenetrability. Even in the life-and-death throes of wartime espionage, Dulles seemed untouched by the intense human drama swirling around him. Mary would always remember “those cold, blue eyes of his (#litres_trial_promo)” and “that rather peculiar, mirthless laugh (#litres_trial_promo).”

In her effort to find out more about the man at the emotional center of her life, Mary sought enlightenment from the great Jung. She made her way down the long, tree-lined path to his home on Lake Zurich, above whose elaborate stone portal was etched in Latin: Vocatus atque non vocatus deus aderit (“Called or uncalled, God will be present”). Jung was alive to the potential of the supernatural. He believed in demons and angels. The inscription reminded Jung, who said he always felt “unsafe,” that he was “in the presence of superior possibilities (#litres_trial_promo).”

Jung enjoyed discussing men of power and action like Dulles. Analyzing the dictators of his era who held the fate of Europe in their hands, he had developed various power “archetypes.” Jung deemed Hitler a “medicine man” who ruled more through magic than political power. Whereas Mussolini projected the brute strength of a tribal chief, Hitler seemed to lack not just physical potency but basic human qualities. His power came from his uncanny “mystical” ability to tap into the German people’s deeply troubled unconscious.

Before the war, standing near the two leaders at a Berlin military parade, Jung once had the occasion to observe Hitler and Mussolini together. Jung recalled the revealing experience for an interviewer in October 1938. While Mussolini greeted the goose-stepping troops and trotting cavalry horses “with the zest of a small boy at the circus,” Hitler showed no emotion. He appeared to Jung like “a mask, like a robot, or a mask of a robot (#litres_trial_promo) … He seemed as if he might be the double of a real person, and that Hitler the man might perhaps be hiding inside like an appendix, and deliberately so hiding in order not to disturb the mechanism.

“What an amazing difference there is between Hitler and Mussolini!” Jung exclaimed. “I couldn’t help liking Mussolini … You have the homely feeling with Mussolini of being with a human being. With Hitler, you are scared.”

Jung’s portrait of Hitler is as chilling a picture of psychopathology as you will find. Dulles was fascinated by his insights into the German leader, and he urged Mary to keep seeking more such wisdom from Jung.

The esteemed psychoanalyst was happy to oblige. The two most powerful men in Mary Bancroft’s life were intrigued with each other, though they had little direct communication. Jung had a hard time figuring out Dulles. He did not fit neatly into the Jungian system of power archetypes. One could see in Dulles the same disturbing mix of magnetism and ruthlessness that Jung observed in the dictators of his day. But there was also an impenetrable blankness that made him hard to read. Jung warned Mary that her lover was “quite a tough nut (#litres_trial_promo).”

Dulles, for his part, approved of his wife and mistress’s submitting to Jung’s treatment. He told Mary that he realized analysis could be “useful” for others, but he was convinced that he himself had no need for it.

Throughout his life, Dulles was drawn to creative, intelligent, neurotic women like Clover and Mary—women who were under constant siege from their unconscious, as Joan Dulles described her mother’s emotional plight. For a man as emotionally numb as Dulles, women like this were his essential link to the rest of humanity. They translated human feeling for him. They were, in short, “useful”—that favorite word of his. It was a word, recalled Mary, which “was constantly on his lips (#litres_trial_promo).” If Dulles could use a person, that person was somehow real for him. If not, that person didn’t exist.

Allen Dulles first laid eyes on Martha Clover Todd in the summer of 1920 at a party of fashionable young people at a lakeside resort near the Dulles family home in upstate New York. Before the week was out, he had proposed to her. She later spoke of her blitzkrieg courtship and marriage to Dulles with a sense of wonder. She couldn’t quite explain why she had agreed to marry the headstrong young man. “I married Allen (#litres_trial_promo),” she told a curious nephew years later, “because he was attractive, and doing interesting things.” This commonplace observation was the best she could offer. Clover had other suitors at the time, including a perfectly acceptable young doctor who was particularly eager to win her. That courtship became entangled in her indecision. But Allen Dulles gave her no room to ruminate or reconsider. He had made the decision for both of them—she was the girl for him.

At twenty-six, Clover was a year younger than Dulles, and she radiated an ethereal beauty that set her apart from the other debutantes in her social set. She had sensuous lips and wide-set, almond-shaped green eyes that seemed to hint of deep sadness. She spoke in a breathy voice that made men lean closer to her. In photographs of Clover at the time, she always seemed to be looking away from the camera, as if her thoughts were somewhere else and too melancholy to be shared. She had an air of fragile mystery that undoubtedly appealed to Dulles.

But she also possessed some of the feisty “flapper” spirit of her generation of liberated women. She looked sexy and self-possessed in the masculine fashions of the day, posing for one photo in a trim suit, businesslike tie, and a wide-brimmed hat jammed down over her tightly coiffed curls.

Once, on holiday from her Connecticut boarding school, Clover was invited by an eccentric New York society queen to an evening in honor of “some poor convicts (#litres_trial_promo)” recently paroled from Sing Sing prison. The evening was grinding on with excruciating stiffness until Clover broke the ice by challenging the ex-cons to a game of poker. In later years, she made prison reform a passionate personal commitment. Clover’s affinity for convicts was fueled by the fact that she often felt like a prisoner of her own life. During World War I, she volunteered as a canteen girl in a Paris officers’ club. She sometimes wandered the streets of the war-tattered city dressed as a beggar, just to feel what it was like to be someone else, someone who had to plead for bread.

Clover’s own childhood was rich in material comfort. Her mother came from a wealthy Baltimore manufacturing family whose foundry had produced the metal plates for the USS Monitor, the famed ironclad Civil War vessel. Her father, Henry Todd, was a distinguished professor of romance languages at Columbia University. She and her sister and two brothers grew up in a tastefully furnished house near Central Park filled with books and music. Their father would take his children on long strolls through the city, discoursing at length on its history and architecture. Her mother would make “fairy circles (#litres_trial_promo)” from tiny white stones in the park, where, she insisted, the sprites would gather for dances on moonlit nights. Clover grew up with her mother’s fey spirit and would constantly be disappointed by the modern world’s banality. Instead of the fairy world conjured by her mother, she was forced to dwell in a world “too pedestrian, too filled with anxiety, with duty, with the necessity to be always right.”

Clover’s father, a strict Presbyterian with an Old Testament sense of right and wrong, made her feel that she never measured up. When she was eight and her sister, Lisa, was ten, he tried to teach them both Latin but gave up in frustrated rage. “We simply weren’t ready for Latin yet (#litres_trial_promo), or at least I wasn’t,” she recalled. “We exasperated Father terribly. He was a scholar—very tense and high-strung—and he cared. As he was a professor, it was hard to have subnormal children.”

Her mother, who was prone to debilitating migraines and would often take to bed for long “rest cures,” was too involved with her own travails to provide her children with maternal love. There were nursemaids for the children and housekeepers, and when Clover’s mother was confined to bed under her pillowy white bedspread, an efficient domestic manager named Miss MacMillan would arrive and put the house in order. But Clover’s mother would go into rapid decline as soon as Miss MacMillan departed, overwhelmed by the obligations of family life.

Clover’s emotional touchstone in her family was her younger brother, Paul, a beautiful and sensitive boy the nursemaids enjoyed dressing like a girl. While still quite young, he began demonstrating precocious artistic skill, drawing “the most astonishing [pictures], queer animals always, each one different from the last and exhibiting the most extraordinary amount of skill and imagination.” But their father thought Paul’s nursemaids had turned him into a “sissy.” He seemed too fragile for the rough-and-tumble of college life when he went away to Princeton in 1918, and at the end of his freshman year, he dropped out.

On the eve of Allen and Clover’s wedding—which was held in October 1920 on the wooded estate of Todd family friends outside Baltimore—Paul sent word that he did not feel hearty enough to attend the festivities. “He said he didn’t feel well enough and we thought it rather queer,” Clover later noted in her diary, “but we were always all of us not being well and having all sorts of inhibitions and neurotic feelings.”