Cristina’s Christmas present

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Cristina Fernández de Kirchner

Well, it’s happened again. On Tuesday, a federal judge in Argentina, Julian Ercolini, ordered a trial of Cristina Fernández de Kirchner, who was president of that country from 2007 to 2015, on charges of corruption.

Also ordered to face trial were Julio de Vido, Kirchner’s sometime Minister of Federal Planning, and José Francisco López, former state secretary for public buildings.

According to the indictment, all three former officials are accused of forming an illegal association that was “created to commit crimes” involving the theft of “funds that were assigned to road works” – specifically, 52 projects in Santa Cruz province, where Kirchner’s late husband, Néstor Kirchner, served as governor before preceding her as president.

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Lázaro Báez

Already in court is contractor Lázaro Báez, whose company Austral Construcciones profited from the corruption scheme. Austral, it is reported, received over $4 billion in road-construction contracts from the Kirchner administration; of that amount, about $1 billion is estimated to have constituted illegal surcharges.

Judge Ercolini also froze $893 million in Kirchner’s personal assets.

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Cristina Kirchner with Axel Kiciloff

It’s the second time this has happened since she left office: in May, Kirchner, along with her former Economy Minister Axel Kiciloff and former Central Bank head Alejandro Vanoli, was indicted on charges of making illegal contracts to sell U.S. dollars at below market rates, supposedly with an eye to strengthening the peso. Instead of helping the Argentinian economy, these hijinks are said to have damaged it.

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José Francisco López

Inveterate readers of this site may recall that López, a longtime crony of Nestor Kirchner and “right-hand man” to de Vido, was arrested in June while trying to hide plastic bags full of money at a Buenos Aires convent. In addition to the plastic bags, he had a suitcase full of money, and he had driven these bags and suitcase to the convent in a car whose trunk was also full of money. The total stash: about $7 million dollars in the form of U.S. dollars, euros, yen, and other denominations. He also had a bunch of jewelry and several watches. And was packing a gun.

Apparently, all that dough was just a fraction of the massive sum fleeced from Argentinian taxpayers by by Kirchner, de Vido, López, Báez and company.

Kirchner, who was indicted in May for incompetent administration, was not taken into custody.

Noel Field’s Hungarian twilight

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Noel and Herta Field in Hungary

When Noel Field, State Department official turned Soviet spy, settled down in Budapest in 1955 to spend his twilight years under the Communist totalitarianism he adored, he was given a job as translator and editor at New Hungarian Quarterly, an English-language publication that was distributed abroad to show off new Hungarian writing. He was surprised to discover that his colleagues at the magazine did not share his zealous devotion to Communism. On the contrary, as one of them would later tell biographer Kati Marton, Field was “the only pure Communist” in the office. Sophisticated intellectuals who knew the system for what it was, Field’s coworkers considered his (or anyone’s) devout Communism “a sign of intellectual backwardness.” For his part, whenever he overheard one of them saying things that weren’t entirely in line with Communist ideology, he rushed to inform on them, like any good Bolshevik, and they lost their jobs.

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The Hungarian uprising, 1956: after a statue of Stalin is pulled down, the head lies in the street

In mid 1956, aware that the Hungarian people were growing restive under the Soviet yoke, Field wrote an article in the Hungarian Communist Party newpaper insisting that Communism was still “fundamentally sound” and calling dissenters “enemies of progress.” Soon after came the Hungarian uprising – and a few short weeks of freedom, which came to an end when Soviet tanks rolled in and brutally put down the rebellion. The next year, when a friend in Warsaw complained about the brutality of the Soviet incursion, Field replied sharply: “I don’t want to hear this!”

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János Kádár

In his view, the Soviet troops who marched into Hungary were “the real freedom fighters” and the Kremlin’s new puppet leader, János Kádár, had “saved Hungary from ‘White Terror.’” In 1960, four years after Khrushchev himself ardently denounced Stalin’s crimes, Field published an article in Mainstream, an American Communist Party periodical, calling those crimes “essential on the road to a Communism.” Of the men who had interrogated and tortured him years earlier, he wrote: “I approve their detestation.” When everyone around him had moved on from Stalin and embraced a somewhat softer totalitarianism, Field remained an uncompromising Stalinist.

Every time Field issued yet another pro-Communist public statement, such as his article in Mainstream, his family in the West were subjected to a new round of media attention – and public suspicion that they shared his sympathies. When Field’s brother, Hermann, wrote a letter pleading with Noel to try to keep a lower profile, Noel snapped back: “As you know, I have my convictions, and whenever these require me to speak out, I shall do so, however great the pain of causing unpleasantness to relatives I continue to hold dear.” This to someone who had been imprisoned and tortured for his sake.

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1968: the Soviets crush the Prague spring

The years went by. In 1968 the Kremlin again sent in tanks to crush an Eastern European revolt – this time in Czechoslovakia. Field was silent about it, but he did stop paying his Party dues. Is it possible that after so many decades of unshakable belief in the savage god of Communism, he finally lost his faith? There is no way of knowing for sure.

On this site, over the last year and a half, we’ve discussed scores of people who, out of either misguided devotion or pure self-interest, have put themselves at the service of tyrants. When it comes to unswerving ideological conviction, few if any could measure up to Noel Field. Kari Marton, Field’s biographer, sums it all up as follows: “His is the story of the sometimes terrible consequence of blind faith.”

Prisoners in Paradise

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Noel Field

Last week we started examining the curious life of Noel Field, American diplomat turned Stalinist spy, as told in a splendid recent biography by Kati Marton.

In our last installment, we saw that Field was exposed as a spy in 1948 by Whittaker Chambers. Seeking refuge and a new meaningful life in service to Communism, Field traveled to Prague – where he was promptly arrested, questioned, and tortured until he confessed to being an American spy. His torturers knew this was a lie, but they wanted Field to provide false “evidence” against other Communists so that they could be executed as traitors – and he obliged them, turning over no fewer than 562 names.

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Erica Wallach, 1962

This next part sounds almost like some kind of sick joke. When Field went missing, his wife, Herta, was worried. She went to Prague to look for him – and was promptly arrested. Field’s brother, Hermann, was also worried. He went to Warsaw – where he, too, was arrested. That left Erica Wallach, who had been a sort of stepdaughter to Noel and Herta and who was now married to an American GI with whom she had two small children. Erica contacted an East German official of her acquaintance and asked him to help her find Noel, Herta, and Hermann. He invited her to meet him at Communist Party headquarters on Unter den Linden in East Berlin. She went there and was immediately arrested, tried as a spy, sentenced to death, and sent to a Moscow prison to await her execution. But fate intervened: Stalin died, and instead of being executed, Erica was sent to the worst of the Gulag stations, north of the Arctic Circle, where she spent several years doing burdensome manual labor in subzero temperatures.

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Hermann Field and his wife, Kate, in later years

When all four of them – Noel, Herda, Hermann, and Erica – finally got out of prison, they owed their release to an unlikely savior. A Polish officer who had been Hermann’s torturer defected to the U.S. and held a press conference under the auspices of the CIA at which he said that the charges against all four were trumped up. The State Department immediately demanded their release, and the Communist governments complied. Noel and Herda were reunited, and discovered they had been imprisoned only a few meters from each other; but they didn’t cry until they were informed that Stalin was dead. Both still fanatical Communists, they begged to be allowed to remain in Hungary. (As Marton notes, they may well have been the first Americans to request political asylum in that country.)

When Noel found out that Hermann and Erica had been imprisoned because of him, did he feel guilty? Not at all. His main worry, where they were concerned, was that they would not say or do anything to damage the Communist cause. He tried to persuade Hermann (who had never been a Communist) to “defect” to the East in order to hand the Eastern Bloc a propaganda coup. As for Erica, instead of being glad that she could finally be reunited with her husband and children, Noel fretted that her American GI husband would poison her mind against Communism (as if her years in the Gulag hadn’t already done that). Erica was disgusted by Noel, saying: “This is just a Party man. The human being has disappeared.”

We’ll finish this up tomorrow.

Digging up Samsung’s dirt

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Samsung headquarters

The probe into corruption at Samsung and the Blue House – South Korea’s presidential palace – entered a new stage on Wednesday, with investigators racing to get to the bottom of last year’s shady merger between Samsung C&T and another Samsung affiliate, Cheil Industries.

A quick summary of what we already know: last year, Samsung donated $20 million to two entities, the Mir Foundation and K-Sports Foundation, that are linked to Choi Soon-sil, an intimate of President Park Geun-hye. Samsung also funneled sizable amounts of cash to Choi and her family through a German corporation she controls and even underwrote her teenage daughter’s pricey equestrian activities.

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Choi Soon-sil

Why exactly did they fork over all this dough to Choi & co.? The working theory, in three words: quid pro quo. Try to follow this reaction pathway: Samsung bigwigs are believed to have bribed Choi to lean on her BFF, President Park, to order the National Pension Service – a major Samsung stockholder – to approve of the C&T/Chiel merger. The pension execs, as it happens, did indeed end up voting for the merger, even though their analysts had urged them to give it a thumbs-down.

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Lee Jae-yong

In short, the guardians of South Korea’s retirement funds didn’t do what was best for retirees or for fellow C&T and Cheil stockholders (who, recognizing the merger as unfavorable to their interests, fiercely opposed the merger). They did what was best for the powers that be at Samsung, period. Especially Samsung vice chairman Lee Jae-yong.

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President Park Geun-hye

At least that’s where the available evidence – largely acquired during a previous round of prosecutorial raids – seems to point. Now two investigative teams, one of them led by special independent counsel Park Young-soo, are intensifying the probe. On Wednesday, seeking further evidence, Park’s team – which has 70 days (with a 30-day extension if necessary) to complete its work – confiscated documents and hard drives at about ten locations, including the National Pension Service’s asset management office, the headquarters of the Ministry of Health and Welfare, and the homes of several Samsung executives.

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Chung Yoo-rah

That’s not all. The independent counsel has also secured an arrest warrant for Chung Yoo-rah, Choi’s horse-happy daughter, now 19. Since Chung is believed to be in Germany, the counsel has asked German officials to extradite her, has requested her German credit-card and phone records,  and has arranged for the cancellation of her passport. The investigators are even scrutinizing Chung’s high-school record, which turns out to have been faked. (The national educational department has already revoked her diploma.)

Meanwhile Lee – who, since his father, Lee Kung-hee, suffered a heart attack in May 2014, has been Samsung’s de facto top dog, and hence South Korea’s most powerful businessperson – has been barred from leaving the country. Earlier this month, the younger Lee testified at a parliamentary hearing that he didn’t know Choi and that Samsung’s payouts to her and her organizations were not bribes. According to one source, the independent counsel’s main goal is to find out whether or not that’s true.

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A car that was reportedly set on fire by an exploding Samsung Galaxy 7 phone

The whole scandal is, of course, a huge blow to Samsung, South Korea’s largest conglomerate and the ultimate symbol of the nation’s postwar economic success. And it’s happening, note well, at a time when Samsung is still smarting from its exploding-phone fiasco.

So start the countdown: seventy days. For our part, we can’t wait to see what Park Young-soo and his colleagues dig up.

Noel Field: defending his torturers

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Noel Field (right) with his wife, Herda, and Unitarian leader Charles Joy

Quitting the League of Nations in 1940, Soviet spy Noel Field and wife, Herta, began working for the Unitarian Service Committee in Marseille. Their job, as Field’s biographer Kati Marton recounts, was to aid refugees, and in particular to lend life-saving help to Jews fleeing the Holocaust. Unbeknownst to the committee, however, the Fields used its money, above all, to help their fellow Communists and to further the Communist cause. They also refused to help Ukrainian refugees, because in their eyes anyone fleeing from the Soviets was by definition “only a little less reactionary than Nazis.”

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Allen Dulles

In 1942, with the U.S. finally in the war, the Fields relocated to Switzerland, where Noel joined the OSS (the forerunner of the CIA) under Allen Dulles. He served as a sort of middleman, passing on U.S. resources to Communist friends, who in turn provided the OSS with intelligence from Communist resistance fighters in France and Germany.

After the war, a jobless Field traveled around “liberated” Eastern Europe. Years earlier, back in Washington, he had been acutely aware of the poverty and sadness he witnessed, but now he was blind to the far worse privation and misery around him. All he could see was a “Promised Land” in the process of being born.

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Whittaker Chambers

In 1948, Whittaker Chambers, a former Communist, told the House Un-American Activities Committee that his old State Department colleague, Alger Hiss, was a Communist. Hiss had powerful friends who protected him, including future Secretaries of State Dean Acheson and John Foster Dulles. Field didn’t. What to do? Jobless, footloose in Western Europe, and scared to return to the U.S., Field wrote to a Czech official begging for a job in Prague. His letter, as Marton writes, betrays an “astonishing zeal to enter a country slowly morphing into a prison state.”

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Tito

Field was invited to Prague – where he was promptly kidnapped by the authorities, transported to Budapest, and accused of being a U.S. spy. Interrogated, beaten, and tortured, he ultimately confessed to a ridiculous charge that his tormenters knew to be untrue: that his rescue of Communists in wartime Marseille had been a cover for recruiting them for the CIA and the Yugoslav leader, Tito. Ordered to list all the Communists whose return to Poland, East Germany, Czechoslovakia, or Hungary he had facilitated, Field provided 562 names. Most of the people he fingered ended up being subjected to new show trials, convicted on his “evidence,” and executed.

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Noel and Herda Field

Field later regretted the weakness that had led him to ascribe guilt to innocent people. But he never criticized his torturers. On the contrary, he defended them. And he made a list of reasons why they were right to have beaten a false confession out of him:

  1. I am an American

  1. I worked for the State Department

  2. I worked for a Christian philanthropy

  3. I was in touch with Dulles

  4. I snooped around the East Bloc after the war

  5. I was born bourgeois

“This,” writes Marton, “was the ultimate triumph of totalitarianism: the accused accepted, even embraced, his guilt. The party can never be wrong.”

More anon.

Becoming a traitor

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J. Edgar Hoover

After World War II, there would be much talk about the “paranoia” about Communism that supposedly could be found in the corridors of power in Washington, D.C. But during the years between the world wars, the problem in the nation’s capital was the opposite. Almost anybody working at, say, the State or War department could easily access classified documents. Communist sympathies on the part of high-level officials were accepted with a shrug by the FBI and other agencies. J. Edgar Hoover and his men were all but oblivious to the danger of Soviet spying.

In fact there were plenty of Soviet spies in Washington, some of whom held very high-level positions in the U.S. government. Those who worked for the NKVD (the forerunner of the KGB) reported to J. Peters, a Hungarian who had been born Sándor Goldberger and who worked out of the American Communist Party’s offices in New York. In 1934, Peters sent one of his underlings, Hede Massing, to Washington to try to enlist State Department official Noel Field, as Kati Marton reports in her fascinating biography of Field. As it happened, Field was also being wooed by a friend at State, Alger Hiss, who worked for the Kremlin’s military intelligence agency.

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Hede Massing

Field hesitated, then finally signed up with the NKVD in the fall of 1935.

Spying proved easy. These were days, he later recalled, when the “most secret documents… circulated from hand to hand.”

His new NKVD colleagues noticed several things about Field. One was his incredible naivete. Another was the “innate need for a guiding faith to imbue his life with meaning”: this “made him a devoted Communist.” Yet another was his desperate need to obey orders: he was a follower, not a leader or original thinker. “Noel could be strong only when he was doing what his superiors told him to do,” his friend and fellow spy Paul Massing later observed. Then there was his absolute belief in the goodness and rightness of Stalin and the Party. “For Noel,” Massing said, “the leaders of the Revolution can do no wrong.”

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Noel Field (right) at the League of Nations, 1939

Leaving the State Department in 1936, Field went to Geneva to work for the League of Nations – and to continue his espionage work. The next year, this young man who’d been drawn to Communism by a desire to usher in a better world was an accessory to the assassination of Ignaz Reisz, a veteran Soviet spy chief who’d dared to complain to Stalin about the show trials and executions of loyal Communists that were then underway in the USSR. Field had no remorse about this coldblooded murder. “He was a traitor,” Field said. “He deserved to die.”

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Gen. Walter Krivitsky

Field wasn’t troubled by the show trials, at which heroes of the Russian Revolution were railroaded and condemned to death. Other Communists, however, were outraged. Among them was Field’s handler, General Walter Krivitsky, who defected to the U.S., wrote exposés of Stalinism in the Saturday Evening Post, and ended up being murdered by Soviet agents in a Washington hotel room – a victim of Western officials’ unawareness of just how brutal the Kremlin was. (Krivitsky had actually told British Intelligence about the spies who’d later be known as the Cambridge Five, but they, like the FBI, had responded with a shrug.)

In 1938, a former colleague told the House Un-American Activities Committee that Field was a Communist. But thanks to official Washington’s – and America’s – lackadaisical attitude toward Communism during the FDR years, nothing happened to him. At about the same time, Field’s State Department friend Larry Duggan was also revealed to be a Soviet agent, but he, too, got away with it. Indeed, instead of being arrested or at least fired, Duggan was – incredibly – promoted: during most of World War II he served as assistant to Secretary of State Cordell Hull, a position that provided him with access to the nation’s most secret documents.

More tomorrow.

Noel Field: From State Department to Stalinism

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Noel Field

Born in 1904 and raised in Zurich, Switzerland, by upright, pious, and wealthy American Quaker parents, Noel Field was brought up to be a fervent – but, alas, eternally naive – believer in peace and equality. After his father’s death in 1921, Noel, his two siblings, and their mother relocated to the U.S., where Noel attended Harvard and then joined the State Department, an idealistic and unworldly young man determined to use his position to remedy the world’s cruelties and inequities.

In Washington, D.C., Field and his Swiss wife, Herta – whom he had known since he was nine years old – lived in a black neighborhood and, appalled by the racism they observed, took part in anti-segregation protests.

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Nicola Sacco and Bartolomeo Vanzetti

Then there was the case of Sacco and Vanzetti, two Italian immigrants who were convicted of murder in 1921 and executed in 1927. The case made international headlines, resulted in the formation of defense committees around the world, and led to riots and vandalism. All this activity on behalf of the two defendants was believed at the time to be spontaneous; in fact it was all orchestrated by a U.S.-based Soviet agent, Willi Münzenberg, who saw the case as a golden opportunity to destroy “the myth of America” and thus make the U.S. fertile ground for Communism. Millions fell into his trap. One of them was Field, whom Kati Marton, in her recent biography of him, describes as “an ideal target” for Münzenberg’s machinations.

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John Reed

Disillusioned by his own country, Field began to read the works of Marx, Lenin, and the American Communist John Reed. He subscribed to the Daily Worker. Soon he was a “secret radical.” Bookish, sheltered, and utopian-minded as he was, he was easily drawn to the Communist dream of a workers’ paradise. The fact that he’d never set foot in the Soviet Union helped. “His exposure to Stalin’s Russia,” notes Marton, “came entirely from Moscow’s propaganda.” The Daily Worker‘s glorious descriptions of Bolshevik life – which he took entirely at face value – contrasted dramatically with America’s economic inequality and racism, which he saw firsthand.

Marton cites another factor in his attraction to Moscow: brought up in a starchy milieu (part WASP-y, part Swiss) without much in the way of human intimacy, the “stiffly self-conscious Noel” was deeply moved by the feeling of warm solidarity he experienced at a 1929 gathering of Communist laborers in New York City. “For once,” he wrote, “I felt myself a ‘comrade’ among that enthusiastic workers’ audience.”

It would take five more years before Noel Field fully shifted his allegiance. But he was already on the path to treason.