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1947 was American High Commissioner to Germany. McCloy, we learn from Retinger’s<br />

diary, embraced <strong>the</strong> idea at once. Sheppard Stone, who was on McCloy’s staff, <strong>and</strong> Robert<br />

Murphy, <strong>the</strong> U.S. ambassador to Belgium, whom Retinger called one of <strong>the</strong> European<br />

Movement’s best supporters, joined McCloy in raiding <strong>the</strong> huge reserve of European<br />

currencies called ‘counterpart funds’ which had piled up as a result of Marshall Plan aid....<br />

McCloy, Stone <strong>and</strong> Murphy "promptly <strong>and</strong> unhesitatingly put ample funds at <strong>the</strong> disposal of<br />

Paul Henri Spaak," Retinger recorded.36<br />

It was this same Joseph Retinger who recruited Prince Bernhard of <strong>the</strong> Ne<strong>the</strong>rl<strong>and</strong>s to host <strong>the</strong> meeting<br />

at <strong>the</strong> Hotel Bilderberg in Oosterbeek, Holl<strong>and</strong> in May 1954 that launched <strong>the</strong> annual secretive<br />

Bilderberger conclaves where <strong>the</strong> international ruling elite meet to scheme <strong>and</strong> palaver. McCloy would<br />

become a member of <strong>the</strong> Bilderberger steering committee.37<br />

<strong>The</strong> Merger Begins<br />

<strong>The</strong> first concrete step toward <strong>the</strong> abolition of <strong>the</strong> European nation-states was taken in 1951 with <strong>the</strong><br />

signing of <strong>the</strong> treaty creating <strong>the</strong> European Coal <strong>and</strong> Steel Community (ECSC). "This was a truly<br />

revolutionary organization," wrote Professor Carroll Quigley, <strong>the</strong> Insiders’ own inside historian, "since<br />

it had sovereign powers, including <strong>the</strong> authority to raise funds outside any existing state’s power."38<br />

<strong>The</strong> ECSC treaty, which went into force in July 1952, merged <strong>the</strong> coal <strong>and</strong> steel industries of six<br />

countries (West Germany, France, Italy, Belgium, <strong>the</strong> Ne<strong>the</strong>rl<strong>and</strong>s, <strong>and</strong> Luxembourg) under a single<br />

High Authority. Professor Quigley wrote in his 1966 history of <strong>the</strong> world, Tragedy <strong>and</strong> Hope:<br />

This "supranational" body had <strong>the</strong> right to control prices, channel investment, raise funds,<br />

allocate coal <strong>and</strong> steel.... Its powers to raise funds for its own use by taxing each ton<br />

produced made it independent of governments. Moreover, its decisions were binding, <strong>and</strong><br />

could be reached by majority vote without <strong>the</strong> unanimity required in most international<br />

organizations of sovereign states.39<br />

<strong>The</strong> proposal for <strong>the</strong> ECSC was introduced, amidst great fanfare, in May 1950 as <strong>the</strong> "Schuman Plan."<br />

Although Monsieur Monnet, <strong>the</strong>n head of France’s General Planning Commission, was <strong>the</strong> real author<br />

of <strong>the</strong> plan, he thought it expedient to name it for his comrade Robert Schuman, <strong>the</strong> Socialist French<br />

Foreign Minister who later became Prime Minister.40<br />

<strong>The</strong> American Insiders leapt to praise <strong>the</strong> Schuman Plan. John Foster Dulles called it "brilliantly<br />

creative."41 Dean Acheson termed it a "major contribution toward <strong>the</strong> resolution of <strong>the</strong> pressing<br />

political <strong>and</strong> economic problems of Europe."42 And President Truman called it "an act of constructive<br />

statesmanship."43 <strong>The</strong> Carnegie Foundation awarded Monnet its Wateler Peace Prize of two million<br />

francs "in recognition of <strong>the</strong> international spirit which he had shown in conceiving <strong>the</strong> Coal <strong>and</strong> Steel<br />

Community...."44<br />

Monnet, whom columnist Joseph Alsop (CFR) called <strong>the</strong> "good, gray wizard of Western European<br />

union,"45 was appointed <strong>the</strong> first president of <strong>the</strong> powerful new ECSC. Monnet knew full well just how<br />

powerful <strong>and</strong> revolutionary his new creation was. Merry <strong>and</strong> Serge Bromberger reported in Jean Monnet<br />

<strong>and</strong> <strong>the</strong> <strong>United</strong> States of Europe that when Monnet <strong>and</strong> his "brain trust" had outlined <strong>the</strong> basics of <strong>the</strong><br />

ECSC proposal, <strong>the</strong>y called in legal expert Maurice Lagrange to take care of <strong>the</strong> detail work. <strong>The</strong><br />

Brombergers wrote:<br />

Lagrange was stunned. An idea of revolutionary daring had been launched <strong>and</strong> was being

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