Watson's merger of diplomacy and business was not always lauded. During the 1930s, IBM's German subsidiary was its most profitable foreign operation, and a 2001 book by Edwin Black, IBM and the Holocaust, proves that Watson's pursuit of profit led him to personally approve and spearhead IBM's strategic technological relationship with Nazi Germany.[15] In particular, critics point to the Order of the German Eagle medal that Watson received at the Berlin ICC meeting in 1937, as evidence that he was being honored for the help that IBM's German subsidiary Dehomag (Deutsche Hollerith-Maschinen Gesellschaft mbH) and its punch card machines provided the Nazi regime, particularly in the tabulation of census data (i.e. location of Jews). Another study argues that Watson believed, perhaps naively, that the medal was in recognition of his years of labor on behalf of global commerce and international peace.[6] Within a year of the Berlin congress though, where Watson's hopes had run high, he found himself strongly protesting the German policy toward the Jews.
Because of his strong feelings about the issue, Watson wanted to return his German citation shortly after receiving it. When Secretary of State Hull advised him against that course of action, he gave up the idea until the spring of 1940. Then Hull refused advice, and Watson sent the medal back in June 1940.[16] Dehomag's management disapproved of Watson's action and considered separating from IBM. This occurred when Germany declared war on the United States in December 1941, and the German shareholders took custody of the Dehomag operation.[6] But during World War II, IBM subsidiaries in occupied Europe never stopped delivery of punch cards to Dehomag, and documents uncovered show that senior executives at IBM world headquarters in New York took great pains to maintain legal authority over Dehomag's operations and assets through the personal intervention of IBM managers in neutral Switzerland, directed via personal communications and private letters.[15]
https://en.wikipedia.org/wiki/Thomas_J._Watson#Head_of_IBM