Genocide: - DIIS

Lars Heide
Germany they needed to act carefully to avoid problems with the Gestapo
or the exposure of their German contacts. This is an exciting story that
contributes to an understanding of the interplay between multinationals
and national governments.
The relations between IBM and Dehomag were troubled. Dehomag’s
German founder, Willy Heidinger, established the agency that became
the most profi table of any IBM agency or subsidiary. Already in 1922
Heidinger’s position was so strong that when the American company exploited
the German monetary collapse of the early 1920s to take over Dehomag,
he remained de facto in charge of the company while resenting the
change in ownership. The IBM president Thomas J. Watson was satisfi ed
with Dehomag’s business success, and while he monitored the German
company closely at the level of the board of trustees, he allowed Heidinger
wide operational freedom – a construction which led to several confl icts.
During the 1930s German rearmament and growth provided Dehomag
with more opportunities for increased activity than, for example, Siemens.
Punched cards became important for the arms build-up and for warfare.
The Dehomag profi ts caused IBM annual problems, as transfer of accrued
profi ts was not possible, and Heidinger – who was in his sixties – wanted
his dividends. Declaring the profi ts was delayed for as long as possible
and they were either reinvested or invested in property. From 1940-1941
Heidinger tried use his contacts with the Nazi regime to regain his independence.
Unfortunately Black does not examine this key confl ict between
a multinational company and one of its national clients. He approaches
the relations as being primarily between the Nazi regime and IBM in New
York, personifi ed in the powerful and charismatic Thomas J. Watson. The
author repeatedly claims that these relations represented a “strategic alliance,”
but offers no plausible proof.
To assess the role – and possible complicity – of American multinationals
like General Motors, Ford and IBM operating in the Third Reich, we
need to distinguish between having business assets locked up in Germany
after the introduction of the autarchy before the Nazi seizure of power,
and those actually establishing an alliance with the regime. During the
1930s Watson, through the International Chamber of Commerce, worked
for appeasement with Nazi Germany. He was chairman of the Chamber
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