Wherever one turns in investigating P2, Gladio, the "black aristocracy," international terrorism, or the Nazi International, one encounters the SMOM — the Sovereign Military and Hospitaller Order of St. John of Jerusalem, of Rhodes, and of Malta, known as "the Knights of St. John" or the "Knights of Malta."
They were omnipresent in the establishment of the financial and human infrastructure of modern international terrorism already during World War II, and immediately thereafter. SMOM member Baron Luigi Parilli, an industrialist with high-level connections into both Hitler's SS and SD in Italy, and to Mussolini's intelligence services, was the main liaison between SS Gen. Karl Wolff and Allen Dulles in Berne. SMOM bestowed one of its highest awards, Gran Croce Al Merito Con Placca, on U.S. Ambassador to Italy Ellery Stone, who had saved Borghese, and who became a postwar vice-president of the ITT corporation, which helped organize the Sept. 11, 1973 overthrow of Chilean President Salvador Allende and the installation of dictator Gen. Augusto Pinochet. The SMOM awarded its Croce Al Merito Seconda Classe to Italy's OSSchief James Jesus Angleton in 1946, around the same time it honored his boss, Allen Dulles. The following year, it bestowed the Gran Croce al Merito con Placca upon Hitler's Eastern Front intelligence chief Reinhard Gehlen, one of only four recipients of this award at the time. Gehlen's brother was the secretary to Thun Hohenstein, one of the five-member ruling Sovereign Council of the order. As head of the Institute for Associated Emigrations, Hohenstein printed some 2,000 passports, which were used to relocate leading Nazis to safe hiding places around the world. Other leading Knights included CIA chiefs Allen Dulles, John McCone, and William Casey. Nazi International figure Otto Skorzeny was a Knight, as was businessman J. Peter Grace, who used the SMOM's diplomatic immunity as a cover for Iran-Contra activities.
Sovereign Military Order of Malta logo Numerous leaders of Italy's military intelligence organization were members of both SMOM and P2, including Gen. Giuseppe Santovito (former head of SISMI, which replaced SID after 1977), Adm. Giovanni Torrisi, Chief of the General Staff of the Army, and Gen. Giovanni Allavena, head of SIFAR. Another key P2 member who was a Knight was Count Umberto Ortolani, a member of the SMOM's ruling inner council, and a veteran of Mussolini's counterespionage service. Some say he was the real brains behind P2, and he did sponsor the entrance of P2 boss Licio Gelli into the SMOM. Ortolani was a financier who, among other things, owned the second-largest bank in Uruguay, where he commanded enormous influence; the fascist Gelli had been in exile in Ibero-America until higher powers brought him back to Italy in the early 1960s to set up what became the P2 lodge. As with any organization, not all of its members are guilty, and sometimes not even witting of the organization's crimes. In this case, however, given the nature of the beast, that would be relatively rare. Besides the repeated surfacing of SMOM members in terrorist-related activities near the end of World War II, one of their more recent operations illustrates the organization's essential nature.
The Legacy of History: The Venetian Factor In 1582, the 40 or so families which controlled the vast fortunes and far-flung intelligence capabilities of Venice, split into two factions: the nuovi (the "new" houses, or families) and the vecchi (the "old" houses). On the surface, the appellations seemed to refer to those families ennobled since the serrata, the closing of the Grand Council in 1297, who were called the nuovi; whereas those who had already held titles of nobility, were the vecchi. In fact, the upheaval was the result of the establishment of sovereign nation-states for the first time in history, as a consequence of the Renaissance. The city-state of Venice, never more than 200,000 people, could not stand against the new powers that were coming into being, founded to promote the Common Good of their citizenry; the sheer numbers, the science and technology, the military power, were too much for even the powerful and devious masters of La Serenissima (as Venice is famously called). The nuovi realized that, notwithstanding the bloody religious warfare which Venice had unleashed in Europe following the failure of the League of Cambrai to defeat Venice in 1511, its days were ultimately numbered. They took several strategic actions. First, under the leadership of Paolo Sarpi, they created the philosophy of empiricism, as a sense-certainty-based fraud whose purpose was to destroy the creative method of Platonic hypothesizing. Second, also under Sarpi's leadership, they launched a fierce war against the Vatican, posing as the bastion of "enlightened" Europe against obscurantist Rome. Third, they brought the newly emerging Protestant powers England and Holland (whose rise came largely thanks to Venice itself), into what had always been the cornerstone of Venice's fortunes—its trade with the East Indies. The Venetians founded the British East India Company in 1600 (from a merger of the England-based Venice Company and the Turkey Company) and the Dutch East India Company in 1602, and the wealth derived from this trade helped create or enrich a number of great aristocratic families in both countries, along the Venetian model. And, as LaRouche has often emphasized, the British East India Company became the foremost power in the world in 1763, in the wake of the British-rigged Seven Years' War among contending European powers, in the classic Venetian "divide and conquer" method. Fourth, they moved much of their fortunes (and even some of their families) north, first into Holland, and then into England, where they created what would be known in the 18th Century as "the Venetian Party." As part of this, they established the famous Wisselbank (Exchange Bank) of Amsterdam in 1609—the most powerful bank in the world—modelled upon their own private, patrician-controlled banks, followed by the Bank of England in 1694, both serving as the models upon which all central banks have been established since then. In part because of these redeployments, Venice's financial power remained huge well into the 18th Century, as did its legendary spy system, brilliantly chronicled by Friedrich Schiller in his novella Der Geisterseher (The Ghost-Seer), and American intelligence operative James Fenimore Cooper in his novel The Bravo.8 Barings Bank in England, the bank of the British East India Company, for instance, was the vehicle for Venetian funds in Britain, and was at the center of the "Venetian Party," together with the Bank of England. Napoleon Bonaparte had been partially sponsored and funded by Venetian and Genoese families: The Genoese Princess Pallavicini of that era famously punned that her family owned "la buona parte"—"the best part"—of him. His Corsican family had been retainers for the Genoese and Venetian nobility for centuries; and, as noted above, his favorite sister married a Borghese. When Napoleon's ravages had ended, Count Giovanni Capodistria, a Venetian nobleman acting as a government minister of Russia, almost single-handledly wrote the essential documents issued by the 1814-15 Congress of Vienna, which established the ultra-reactionary Holy Alliance. Capodistria also pulled together the modern nation of Switzerland, in part as a repository for Venetian family funds (fondi), which were also used to found several insurance companies in the late 18th Century. These later included the Riunione Adriatica di Sicurtà (RAS) and the Assicurazioni Generali di Venezia e Trieste.9
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