User blog comment:KennyChief/S.H.I.E.L.D. is a UNITED STATES GOVERNMENT organization, not International./@comment-6127681-20151013043349/@comment-2041242-20151013223757

You keep on thinking that not being nazi means not being a german force, atleast that is what it looks like. They were still a part of the german army, just not one following the nazi ideolism (therefor not Nazi).

At that time (since 1943) Schmidt found himself more important then Nazi Germany, but was still leader of a german organization, with German troops. Why they still wore SS-Insingas and Swastika's are simple: dont make an enemy out of an "ally". They killed the entire German army at Azzanno, and therefor only the Americans who survived could have known this. And why would Germany believe it when they hear a HYDRA-Army killed a Wehrmacht regiment from an American Source. They would just expect it to be a lie, trying to make a rift between them.

And even before he decided his own world domination was more important then Nazi Germany the leader of HYDRA dropped the Nazi Ideology within HYDRA, becauce he (and he = HYDRA) did not care about it.

Remember: There is a difference between not caring about Nazi Germany and wanted to dominate the world your self (like HYDRA did) and making an Enemy out of Germany by openly attacking them on front.