After the surrender of France to the Germans in 1940 and the occupation of Paris, Bedaux became acquainted with leading Nazi and
Vichy figures, and he was appointed as an economic advisor to the Vichy regime and the
Reich. In 1941, Bedaux experimented with a political-economic system of his own invention,
Equivalism, in
Roquefort,
Vichy France, though recent research has shown that the experiments amounted to tinkering which locals hardly noticed. Also in May–June, 1941, there was a violent coal strike over the
Bedaux System in the Nord and Pas de Calais in occupied France. Bedaux's German connections were not restricted to occupied France. In October 1941 he was designated by the sabotage branch of the
Abwehr (Abwehr II) to command a covert mission to
Persia (
Iran) to capture the refinery at
Abadan from his former client, the
Anglo-Persian Oil Company, and protect it from Allied bombardment prior to a planned German military invasion of
Iraq and Persia. By the end of 1942, however, strategic events (e.g. the
Second Battle of El Alamein and the
Battle of Stalingrad) had rendered the operation unworkable, and
Berlin lost interest in Bedaux. The countersabotage plan then became obsolete, though it looked suspicious when Bedaux was later investigated by the
FBI and
MI5. Despite Bedaux's cultivation of relationships with various
Abwehr and
Nazi Party officials, declassified
National Archives and Records Administration records indicate that Bedaux did not have connections to the upper echelons of the Party or with officials of the
Sicherheitsdienst (SS Security Service). ==Bedaux's arrest and suicide==