CIA 'plundered Japan gold for political funds'

The CIA used billions of dollars worth of gold unearthed from hidden Japanese World War II tunnels in the Philippines to run a secret political fund to fight the Soviet Union during the Cold War, according to new research.

Sterling and Peggy Seagrave are the authors of a book to be published later this year alleging a huge cover-up of the riches looted from East Asia. They say they have evidence to prove Japan was not bankrupted by the war but was tremendously rich with the treasure trove buried in the Philippines.

The gold and other treasure, including gems and artefacts looted from Hong Kong and China, were located by CIA agents soon after the war ended, according to the book.

'We discovered that the 'black gold' was used to create secret political action funds in 42 countries to buy elections for pro-American parties and to bribe politicians and military officers,' Sterling Seagrave told the Sunday Morning Post.

The couple allege gold was paid into the central banks of the US allies to shore up their reserves after the war as part of a deal to get them to endorse the San Francisco Peace Treaty, signed 50 years ago next month.

'One of the worst effects of this secret decision was that it led to the fraudulent contrivance of the 1951 Japan peace treaty, which blocked all reparations to POWs and the civilian slave labourers on the false contention that Japan had been bankrupted by the war and could not pay reparations,' Sterling Seagrave said.

'It is this corrupt treaty that has been used by Washington and Tokyo ever since to block victims' lawsuits against rich Japanese corporations.'