Operation Bloodstone was a covert operation whereby the Central Intelligence Agency (CIA) sought out Nazis and collaborators living in Soviet-controlled areas, to work undercover for U.S. intelligence inside the Soviet Union, Latin America, and Canada, as well as domestically within the United States.
[1][2] Many of those who were hired as part of Bloodstone were high-ranking Nazi intelligence agents who had committed war crimes.
In the initial stages of the operation, a brief paper identified these anti-Communist elements in non-Western hemisphere countries outside the Soviet orbit who "have shown extreme fortitude in the face of the Communist menace" and have "demonstrated the know-how to counter Communist propaganda and techniques to obtain control of mass movements.
"[3] Operation Bloodstone sought to tap these individuals who were "immobilized" due to lack of funds and a coordinated international movement.
In July, SANACC expanded the operation to:[4] comprise those activities against the enemy which are conducted by Allied or friendly forces behind enemy lines ... [to] include psychological warfare, subversion, sabotage, and miscellaneous operations such as assassination, target capture and rescue of Allied airmen.By 1976, Operation Bloodstone was no longer a closely guarded secret, but an investigation revealed that two other highly classified programs were connected to it: Operation Paperclip and Alsos Mission.