The story of General Reinhard Gehlen has been endlessly rehashed in books, articles, History Channel reprises, and Gehlen's own self-serving memoirs, so we do not intend to recapitulate the full historical record. But this precis will suffice for our purposes:
During mid- and late World War II, Gehlen was head of Foreign Armies East, a Wehrmacht organization tasked with gaining order-of-battle estimations of the Red Army. As the self-flattering retrospectives would have it, Foreign Armies East's estimations were more accurate than those of the ever-optimistic Hitler and his sycophantic retinue. Consequently, Gehlen's favor fell as the Russian steamroller inexorably crunched towards the Reich.
By early 1945, Gehlen and his associates saw the inevitable, and, having no desire to join their Führer on a Wagnerian funeral pyre, resolved to make a deal with the Western allies. They microfilmed choice extracts from their files and buried them in containers somewhere in the Alps.
At war's end, Gehlen surrendered to the Americans and made a startling proposition. He would provide the Americans with what they lacked: intelligence about their erstwhile ally, the Soviet Union. To newly-minted intelligence officers from Topeka and Paducah, this sounded like an arresting offer. By August 1945, the Americans were sufficiently intrigued to fly Gehlen, in the uniform of a U.S. Army general, to Washington in General Walter Bedell Smith's transport aircraft. He met with such "present at the creation" panjandrums as Allen Dulles and William Donavan.
The outlines of the deal are these: Gehlen would transfer his organization and its information into the American intelligence network. As indubitable anticommunists, their zeal to serve their new masters was self-evident. All Gehlen demanded in return was the following:
• Gehlen must have complete control over his organization's activities;
• He retained the right to approve U.S. liaison officers to the Organization;
• The Organization would only be used against the USSR and its client states;
• The Organization would become the official intelligence agency of a future West German state;
• The Organization would never be required to do anything Gehlen considered against German interests. [5]
As the reader can surely guess, the American authorities snapped at the bait like a starving barracuda. And the rest is history: Since the Gehlen Organization's sole claim to legitimacy was its purported knowledge of the Soviet Union, the Red Army perforce became 20 feet tall.
Reinhard Gehlen essentially fostered the Cold War by evoking fear and mistrust in both Russia and the U.S.