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The decades-long arrangement, among the most closely guarded secrets of the Cold War, is laid bare in a comprehensive CIA history of the operation.
The account identifies the CIA officers who ran the programme and the company executives entrusted to execute it. It traces the origin of the venture as well as the internal conflicts that nearly derailed it. It describes how the United States and its allies exploited other nations, took their money and stole their secrets. Crypto AG, based in Switzerland, made millions of dollars and its clients included Iran and other countries in the Middle East; many European, Asian and African countries; military juntas in Latin America; nuclear rivals India and Pakistan; as well as the United Nations and the Vatican.
These countries included Czechoslovakia, Hungary, Romania and Yugoslavia. Hagelin developed encryption machines, which he sold to the US during World War II for use by soldiers in the field, making him a millionaire. As Switzerland was a neutral country the company could do business throughout the world with virtually no restrictions. In , Hagelin was approached by the French intelligence service with an offer to buy the company in partnership with German intelligence.
Hagelin rebuffed the offer and reported it to his CIA handlers. At this point in the story it is pertinent to look at the predecessor to the German Federal Intelligence Service, the Gehlen Organisation, which was set up by the Americans immediately following the end of the Second World War. Chief of the Department of Foreign Armies East was his official title.