“Last evening,” continued Flick, “I spent with Captain Arthur D. Reed, Property Control Officer of the Military Government. He is the custodian of all businesses, a highly intelligent and earnest man of about forty…. Captain Reed is in accord with any personal efforts I have and can make on behalf of my company. He is sold on… Fellinger, and has given him a position of trust with his section, that of trustee of former Nazi businesses. He also uses Fellinger as counsillor on IBM policy.35
“After my conversation with Captain Reed,” Flick went on, “it was agreed that I might communicate with Fellinger through him, and, if you so desire, I will forward any directions in this manner until more normal communications are restored. Also through Reed, I was able to locate Major Andrew Haensel from whom you may have heard through [Watson aide] Jack Kenney. I spent the morning with Haensel and am forwarding some reports on this meeting as enclosures hereto…. Haensel has done an outstanding job of cooperation insofar as he can do so within existing regulations. The same is true of Captain Reed. I made arrangements with Haensel, to forward any communications to the present executives of the company here in Berlin, with a copy to Reed and vice versa. Thus, any correspondence will be entirely on the up and up, and will by the same token be subject to military screening. The three of us will keep in touch with one another as stated.”36
Flick also addressed the difficulty of significant cash accounts in Germany that were blocked and therefore unavailable to defray the day-to-day needs of Dehomag.
“The company [Dehomag] needs cash,” wrote Flick. “Reed, Haensel, and Fellinger have all indicated that a matter of one hundred fifty thousand marks will keep the breath of life in the organization for a period of three months when it might be possible to operate more normally once again. If I get to Hamburg I will endeavor to do something about this if it can be done within existing regulations. Haensel, who is quite thoroughly informed, holds out little hope that any capital in Berlin will be available for a long time.”37
Flick concluded his long report to Watson, “In the meanwhile I would appreciate hearing from you on the matter of how much interest any of the IBMers should continue to take in European business, etc. Until I hear further, I shall endeavor to pick up any and all data that may be of interest to you. It is of course obvious that much of the data may already be available to you or may duplicate information, which you have had for some time. There is no way of avoiding this, and it is only with the hope that what is gathered may be of help to the home office, that we in the field, are gathering with considerable difficulty, the material which is being sent in.”38
Watson did not appreciate the help. In IBM’s view, the IBM Soldiers rendered invaluable service to the company. But he saw Flick’s helpfulness trying to restore Hummel as unwanted interference. Watson had no intention of re-empowering the leaders of the Dehomag revolt, and any manager with a claim to a percentage on profits. Watson possessed the ability to send a single letter from his office that would reach directly into the bombed-out sectors of Berlin. He wanted Flick silenced and removed. He ordered Chauncey to Washington with a letter.
SEPTEMBER 20, 1945
The Honorable William L. Clayton
Assistant Secretary of State
Washington D.C.
Dear Mr. Secretary,
I have just received a letter from Lt. Col. Lawrence G. Flick, who is on leave of absence from the International Business Machines Corporation, in the Military Service, a photostatic copy of which I enclose. In the first and fourth paragraphs he refers to restoring Mr. Karl Hummel to the Management. We do not want any of our IBM people in the Military Service discussing anything of this kind with any of our German representatives because we do not know how many of the German employees we will take back into the organization, when our business is re-instated in Germany.We would like to have Colonel Flick notified of this, and I am asking you to advise Mr. H. K. Chauncey, who presents this letter, as to how the matter can be handled, consistent, of course, with the policies and wishes of the Military authorities in charge.
The response was swift. Several days later, Assistant Secretary of State Clayton wrote to his counterpart at the Pentagon.
Dear General Hilldring:
On 21 September 1945 Mr. H. K. Chauncey, of the International Business Machines Corporation, delivered two letters to the Department, copies of which are attached for your information, which indicate that Lt. Colonel Lawrence G. Flick, now on leave from the International Business Machines Corporation and currently assigned to G5 Industry Branch in Berlin, is actively interfering in the management of the German subsidiary of the International Business Machines Corporation. You will note that Mr. Thomas J. Watson, President of the International Business Machines Corporation, requests in his letter to me that Lt. Colonel Flick and any other personnel now on leave from the International Business Machines Corporation while in the military service, be restrained from discussing policy with respect to the affairs of the German subsidiary. I assume that you will request the proper authorities to notify Colonel Flick to this effect….
Clayton reported back to Watson the same day.
My Dear Mr. Watson:
Pursuant to the suggestion advanced in your letter of September 20, delivered by Mr. Chauncey to officers of this Department, I have addressed a communication to General Hilldring of the War Department General Staff, Civil Affairs Division, notifying him that it is your desire that former employees of the International Business Machines Corporation, now in the military service, shall not perform any actions relating to the management or operation of your German subsidiary. I have advised General Hilldring that the Department at this time does not favor the restoration of private business connections or relations with German firms by persons who are or claim to be acting for the benefit of principals located in the United States.
In mid-November, Major General Hilldring at the Pentagon forwarded a copy of Watson’s letter directly to Gen. Lucius Clay, Deputy Military Governor in Berlin. This prompted a full army brass investigation of Flick’s well-intentioned actions. By November 19, General Clay had completed the investigation. On November 27, 1945, Hilldring reported back to the State Department, “Lt. Colonel Flick is being returned to the United States for retirement from the Army. Therefore, General Clay has recommended that no further action is necessary.”42
Dehomag, the Berlin company so integral to the Hitler war machine, was never treated as an enemy entity. It was welcomed back as a precious American interest and still under the control of Thomas J. Watson.