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15 September 2023

A brief introduction to smuggling looted assets into Spain

bt Marc Masurovsky
France and the demarcation line (1940-1942)

During the German occupation of Western Europe (1940-1945), one of the major activities of the occupying forces and their local collaborators was plunder, looting, outright theft of Jewish-owned property, regardless of its form and shape, from residential and commercial property deeds to industrial know-how (patents, licenses, royalty agreements and trademarks), to financial instruments (stocks, bonds, shares) to artistic, cultural and religious objects. Let’s not forget those highly fungible precious stones and metals.

Regardless of the motivations for these wanton acts of thievery perpetrated on an industrial scale against their victims, the idea of monetizing this stolen property was high up on the looters’ priority list. An infrastructural web of connections was carefully woven, often aided by local and national police officials, fueled by pre-war business and political relationships, to allow for these transactions to take place for the benefit of the Reich and its collaborators. Oftentimes, this plundered moveable property was ferried across borders into neighboring countries that acted either as end points or transit centers for this property to move even further. Think Western Hemisphere, the Americas-North, Central, and South, and especially the islands lying between the Gulf of Mexico and the northern edge of South America.

In the case of thefts committed in the Netherlands, Belgium, and France, looters looked to the south to sell off or “dump” their loot. Precious stones looted from Dutch and Belgian Jews were very easily transported and promised lucrative payoffs. An exception: many works of art looted traveled to Germany and other “Germanophile” markets to be incorporated into museum collections or sold at auction. Otherwise, paintings and other works of art were taken through Belgium and France into Spain, Switzerland or Italy. The main way station for this movement was Paris, which behaved as an international turnstile based on connections between dealers, collectors, art world officials, intelligence agents and the like. These works would find their way to Swiss cities and banks or make their way further south across the Pyrenees [Pyrénées] mountains into northern Spain.

The literature on the role of Switzerland as an endpoint for looted art is ample. From the earliest cases of Nazi thefts of Jewish assets, looted goods were sent to Switzerland from Germany (gold, jewelry, cash, securities, etc.). After the Anschluss in Austria in March 1938, a similar movement was observed from Austria into Switzerland. Likewise, Switzerland has served as a haven for Italian Fascists to deposit their ill-gotten assets in Swiss banks and estates. The passage of the Bank Secrecy Act in the mid-1930s secured complete confidentiality for foreign depositors transferring assets to Swiss institutions. 

By contrast, Spain and Portugal, but mostly Spain, have been largely ignored as loci of such activity. We’ve heard of Axis war criminals, collaborators of all stripes and shades, making their way into Axis-friendly Spain governed by the iron fist of "Generalisimo" (General) Francisco Franco and his Falange. These fugitives sought protection and shelter from prosecution and the wrath of the victorious Allied forces and national Resistance movements desirous to get their hands on these criminals and bring them to justice. 

What did these people carry with them? Little is known aside from well-documented cases like Alois Miedl, Goering’s personal banker and art agent in the Netherlands who almost single-handedly aryanized the famed Goudstikker collection. Lesser-known players have been largely ignored by the historical field. They turned out to be far more effective than Miedl to ferry looted goods into Spain. Still, it might be eventually worth taking a closer look at the Miedl case because he tapped into multiple networks of criminal gangs to ensure his flight to safety. In other words, even someone as important as Miedl was forced to rely on underworld figures and torturers to get across the Franco-Spanish border with his Dutch loot.

In the last years of the Second World War, southwestern France—an area bounded to the north by Bordeaux, and to the East by Montpellier and to the South by the Pyrenees, had been teeming with French fascists, criminal elements who were making their way to Spain. Nazi security agents, Italian and Spanish fascists worked side by side with Nazis and French fascists. In the midst of this beehive of terror and persecution, Allied agents together with Resistance elements did their best to provide some solace to refugees and victims seeking to make their way to Spain and to evade the dragnets established by local collaborators. They set up, at great risk, clandestine chains through which refugees and anti-Nazi militants could flee to relative safety. It was better to spend time in a refugee camp inside Spain than a jail cell run by Gestapo and Milice agents “up north.”
Southwestern France

In setting up these chains, it was critical to know which village, which hill, which crossroads were safe for travel away from prying eyes. Was the mayor in cahoots with the enemy? How about the local police? The priest? The judicial authorities? The baker? Not knowing was the bane of the victims and their protectors—resistance fighters and Allied agents. As you can imagine, many clandestine operatives were unmasked and arrested. Their resilience and persistence eventually saved many lives. How did one get across a porous border where no one could be trusted? As you can imagine, the odds favored the perpetrators by a long shot.

Smuggling goods and people across the border was a profitable way of life on both sides of the Pyrenees. Entire hamlets supplemented their meager resources with these clandestine acts. As long as there was an exchange of money, locals were at your service, as long as the risk could be mitigated. Knowing this, it was not very difficult for fleeing war criminals, underworld figures, intelligence agents, and economic collaborators to make full use of the “friendly” atmosphere that reigned all along the French and Spanish sides of the Pyrenees, viz., the Basque and Catalan regions, Navarre and Aragon, separated by a mountain chain. One still had to be careful with whom one did business and in whom one put one’s trust because he/she could turn on a dime, or a franc, or a peseta, and your luck would end there. As a general rule, you were in far more trouble if you were caught on the north side of the border than on the south side. Lastly, the political reliability of the individuals running these smuggling chains ensured the temporary safety of their clients, long enough to get them to a secure area.

To be continued….

Updated on 13 November 2024
Reviewed and edited by Maria Ruigomez Eraso