1. It's been a while since I've updated. With the Olympic torch relay beginning, I did a little research.

The Olympic Flame from the ancient games was reintroduced during the 1928 Games. [...] The modern convention of moving the Olympic Flame via a relay system from Olympia to the Olympic venue began with the 1936 Summer Olympics in Berlin, Germany. The relay, captured in Leni Riefenstahl's film Olympia, was part of the Nazi propaganda machine’s attempt to add myth and mystique to Adolf Hitler’s regime. Hitler saw the link with the ancient Games as the perfect way to illustrate his belief that classical Greece was an Aryan forerunner of the modern German Reich.

from http://en.wikipedia.org/wiki/Olympic_torch

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2. Closely related, regarding the 1936 Olympics in Nazi Germany (some of the comments sound strangely contemporary):

Those who voiced their opinions on the debate included Americans Ernest Lee Jahncke, Judge Jeremiah Mahoney, and future IOC President Avery Brundage. The United States considered boycotting the Games, as to participate in the festivity might be considered a sign of support for the Nazi regime and its anti-Semitic policies. However, others argued that the Olympic Games should not reflect political views, but rather be strictly a contest of the greatest athletes.

Avery Brundage of the United States Olympic Committee opposed the boycott, stating that Jewish athletes were being treated fairly and that the Games should continue. Brundage believed that politics played no role in sports, and that they should never be entwined. He stated, “The very foundation of the modern Olympic revival will be undermined if individual countries are allowed to restrict participation by reason of class, creed, or race.”

[...] Avery Brundage became a main supporter of the Games being held in Germany, arguing that "politics has no place in sport", despite having initial doubts.

from http://en.wikipedia.org/wiki/1936_Summer_Olympics#Boycott_debate_in_the_United_States_of_America

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3. On a lighter and funny note, also regarding the 1936 Olympics:

Basketball was added to the Olympic program. In the final game, the United States beat Canada 19-8. The contest was played outdoors on a dirt court in driving rain. Because of the quagmire, the teams could not dribble, thus the score was held to a minimum. Joe Fortenbury was the high scorer for the U.S. with 7 points. Spectators did not have seats, and the people (approximately 1000) in attendance had to stand in the rain.

from http://en.wikipedia.org/wiki/1936_Summer_Olympics#Sporting_innovations

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