Hewitt: "The State Department [was] complicit in the launching of the Holocaust."

Just so I'm not accused to taking this out of context, here's an exchange between Hugh Hewitt and John Bolton. I've bolded the part that befuddles me.

HH: I want to go back to, though, your colleagues at the Mission and at the State Department. When they hear Ahmadinejad talk about the blue haze, and they read about the 12^th Imam, and they read what the supreme leader thinks, do they laugh it off? Do they ignore it? How do they not understand this is different from our previous peer competitors?

JB: Well, you know, when Ahmadinejad sent a letter, a long, rambling letter in the summer of 2006, most people around the world either took it as the sign of a delusional individual, or saw in it references to Islamic teachings that were profoundly dangerous for the United States. But many people at the State Department said well, this give us a basis to negotiate. This is the kind of perception by too many of our career foreign service officers that everything is open for negotiation. And let me just add here quickly, because I make the point in the book, and I think it’s important, I don’t want anybody to understand that I’m criticizing everybody in the foreign service, or all the civil service people who work at the State Department. There are many very good and effective diplomats who understand the proper role of diplomacy. We need a strong State Department. One of the things that I try to explain in the book is what we need to change the culture of the State Department. And that’s something that the next president really needs to wrestle with. But the culture that’s developed over the years is very firmly entrenched. So this is not an issue about this individual that I disagreed with or that individual. It’s about an entire way of thinking that I’m sad to say pervades the building.

HH: And for those of you who are trying to find that segment, that’s on Page 449, where he talks about the prototypical civil servant being excellent, and we’ll come back to that. But before we move on, is there any awareness within the State Department, Ambassador Bolton, that they botched the first Holocaust, they held back on the refugee numbers admitted to the United States, they did not facilitate the distribution…in many ways, they were complicit in the launching of the Holocaust. Is there any burden that they bear, vis-à-vis the second pending holocaust as a result of that? Or has that gone down the memory hole?

While it's true that the State Department turned back Jewish refugees, to say that the SD was "complicit" is crazy, no?

If I'm wrong, please tell me.