SIS History Part 04

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Foreign Missions of the Soviet Union
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JULY '946 ~
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'11 y-.;,-- / -'
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 'II
in the United States and Latin America
~if'#~:lit~
STATUS OF DlPLOMAnC RECOGNITION
JUNE, 1946

8XICO
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1. 8:IS Facilities and O>jectives
815 oper&tians, &8 such, began 1n iferlco in August, 19/.0, when
two ~ercover Agents nre assigned to tJ1a t R8IX1bl1c for & brief period
or tiM. In ~tober, 1940, 'U1e 'tllen Special Agent 1n Charge of tl1e San
Antonio Field Office _a 8ent to ltex.1co City in an official capacity and
attached to tne .A8rican ~a)". He W&8 tbe first SIS representative to
have an official .ta 'bls in ~ of the La tin Alm"ican C~tri88. nti8 Special
Agent 1n Charge, during' tJ1. years or his &881gDm8nt in San Anton1.o, had
developed 8D1' valuable contact. in J4ex1oo City and bad spent 808 time in
l~exico prior to his open assignment &8 an orficial of the Bureau engaged 1n
police trainin~ wmok.
When this r8Fe88ltati'Y.'S &8sien-nt to the Aa8l"ican mabuq
was phoed. on a perEnent basis, he was gi'Yai the tit.1e ot .0i'9'11 Attache"
in conwut to the titJ.e "Legal Attache" which ftS used in most of the
otJ1er count1"1ea, because or tJ1e American Ambassador's objections to tJ1e
latter title.
In lfarch, 1941, r~ umercover aen were assigned to ftr1~
parts or Mexico. During tbe tolloring montJ1s covc-age was expanded until
the n88r or 1943 when an average ot tort)" Agent. 'AS _intained in tlJat
COtlnUoT. B,. J.nguat. 1946, when tbe tinal procese or cloeiDg 'U1e 815 prograa
in JIex1co '88.8 .tarted, tJ1c-e were rwrteen a.lreau representatives attached
to tlle Ofrice or tbe Civil Attache. When tlle S1S program W&8 rinallY'
terDdnated in .1.1. 1947, two .Agents -re retained in a liaison capacit)"
due to the lIa'tAlre azxi voluae or tbe alreau'e work harKJ1ed in ~co.
During and. after tbe 'ar, tbe Civil Att.che's Ottice occupied
space in cn" near tlle mUd,1np of tlle AMri~ Embassy 1n )Mxico City.
For s~ time the otfice occupied space apart tr~ tJ1e othc- branches
of tJ1e lllbusy 1n a w!1ding acros8 the 8treet tr~ the Chancellery. Uter
tne war, reduced .pace was taken 1n the ChanceU 817 wilding for a short
time aJ¥1 tht3 office was tinall)" mO'9'ed to another b11J.d,ing near tne ){1.li tar,.
Attache's office.
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Due to the Fox1m1ty of J8x1co to the tk11ted States um the un-
hampered travel between tbe t.o caln-Q-iel the Fobl88 facing the &.1rsu' s
repr88ctativee in 1Iex1.oo 'were .moe mmer~8 aDd .~t different .tr~
t.l'lose facing tl1e 8m offices in otJ18r counu-ies. In add1t1m to foreign
intelligence operations, Ute o.f'.f'ice of Ute Civil Attache in realiV' function-
ed as another regular Field Office. 'rh18 was neo81sitated b7 ~e .1MIS
number of fugitives from tJle tklited .states who crossed tJ1e border ~.nto l8x1oo.
As 811 1Mication of the volu. of wm-k halxned, it -y be DOted tlIat during
the tJ1ree month period trom October 1, to December 31, 1944 Ute mooth1y
average of CUM pending in 'b Civil Attache'l Ot'f1ce'Wa8 between four hundred
and fifty am tive hu:¥5red. During that lame period, ~ hurxired azxi ninet,--
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nine cases wre opened in ~bat office aM one hUl¥ired and s1.xty-eigilt
were closed on the term.nation of the investigations. Most of the
remainder involved securitY' and intelligence .tters which, due to their
nature, rema1.ned 1.n a pend1.ng status.
'l'he Blreau's crim.1nalimestigations iD ~co were considerabl7
hari1per8d, when in ear~ 1944, a protest wu JlBde by t.he .rlCRl authorit1.es
against Bureau !gents crossing the international border on official 8atters... .This tem1nation or border crossing facilities greatly hampered the work
of the Civil Attache's office, and meant that personnel bad to be dispatched
trcm .nco City to the northern parts o.t the Republic which were .tar 8)re
accessible to the domestic .tield offices near the border than tbs7 were to
~co City.
'D1e principal obstacle to aore extensi ft coverage in Mexico was the
attitude of United States Ambassador George S. Messersmith. Despite the tact
that the American ~basS1' statf in *xico City was one or the largest in the
world, Mr. :Messersmith ~tu8.d to allow more than a handful of. Bureau repre-
sentatives in Mexico and did not permit the assignment of Agents to the var-
ious consulates tw!'Jughout the country. For this reason it is necessary to
utilize a high perc9ntage of undercover Agents. Mr. ~ssersm1th also denied
ev9ry Bureau request .for ~ installation or a radio .tat1~ in Mexico City,
thua leaving Kexico as tohe onl1' large country in \9h1ch the ~au had neither
radio .facilities nor Agents assigned in the various consulates. Aside .frcm
telephonic ooMections, which le.tt. IIII1ch to be desired, the moet rapid _ana
or colmmlnication with the Bureau representati'l'8s in Mexico City waS by coded
cablegra= through the St.ate Depar'tment, which at tims resu1.ted in a lapse
as great as two and ODe halt days between the hour of transmittal and that
or the receipt. (64-l.l~)
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In Securit7 J8.tter cases, the investigations conducted by the Bureau r s
S!S representati?8s in Mexico were concerned not a4lr with collecting intormat-
ion of value £r~ an intelligence standpoint, but also from the standpoint
of possible prosecution ot ene~ agents by the Mexican goverDIMnt. In several
of the 8OSt iJlq)or\ant instances, howeTer, the cases bad rami..tications in the
Uxuted States and the investigatio~ 'were conducted with the possibility in
Blind that prosecution tight be undertaken in the Unj.ted States.
Due to the varied interests ot ~ B1u'8au in Cr1minal and Securi t.Y'
cases in Mexico it 'Was necessarY' tor the 8IS Agents to obtain wide coverage.
In.ro~nts were therefore develo~ _0 eon'" bA R~nt. t.o anv ~ of' t.he -
- Republic to t!>llow various leads J I
I I were examp 8 ft .facilities dew loped bY' the
CiTil Ati.ache's office. _8 headed b7 a long-tiE Meoo
and B\uoeau' 8 A~nt8. During 19441 1n particular,
evo praCtically itS entire tiE and personnel to
, ~a1;n~f! :LnrarlE.t.ion .for the Civil Attache. Ul¥1er authority conveyed b7 the
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b7.D
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! ,b7D . aDS_ring apecitic questio~. ~ tillS COOT,&CTI ~ m1reBU'e re!..
presentati'V88 wre able to seaure backgrouM 1.n.tormation, Plotographsand haoov1ting or type-writ s ciMns of '9'8ri ec whom tt.O erested. ~OUgh ~which maint.ained a large .'taft ot or ,
s 1ntormation was a180 obta.iDed. wh1.ch
'were subll1.tted to ftnous I I g au .re ac ,. drawn
up by the Bureau's Agents "in order to obta1.n ftrious t1p88 of' iDforution
which ~ be o.t assistance in espionage aM other types of' casea.
During the war J I f'ac1ll ties were avai1able b 7 Dton t.he Cirl1 .&.tt.acbe's orrJ.ce TonrougD!-- - of' one o.t the Bureau'l
i BAJa R~I.O held the position
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:~r~n~ "::~.f'Lm eSTo w me "J..~ A~"(;&GD8' a u~~.u.. I
In addition to mese fac.i.l1 ties it might he mentioned that
515 operations in ~co involved a wider use of. umercover ..n on a percentage
basis than in ~st other countries. Ear~ in the 515 program in Mexico
one \1ndercover Agent 88 able to penetrate the German colon)" and to attend
the German propaganda school. Later other Agents wre utilized in penetrating
the ~can Canmunist PartJ, the Spanish Falange aM the Calmuniat-daDinated
so-called .Free. European ~velnent8.
By" the time SIB operations closed in Mexico the Bureau's repre-
sentatives bad developed very exteDs1'V8 aM successfUl coverage of. all
!letters of. interest to the .basS7 and to the B1areau.
18_1 or .A.ccomD1i8haents
2.
German Acti'Yities.
a.
'I'he German Colon,' in Mexico was ~ ot the best organised in Latin
America. As ot Apr1ll942, it was estimated that the total German popu1ation
in Mexico, including persons or Gennan extraction, .. 16,250. Baz1 Agents
found this group to be a tertiJa tield tor Propaganda. Both wi1ling~ or
through pressure man;- ot the Ge1'D1&M in *x1.co joined the Naz.1 Part.,. wb.1ch
was well organized into districts ~ed on Beven geographical eulxii'9i8iona
of "v"le coun1".r7.
Ot.her organizat101W \broach which ~ Wu» reached the Ge~n
popu1at10n wre the German School, the Hitler YOIltb., am the German Cbamber
of' Commerce.
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Several of the large German c<lllmercial .fir- in *x1co such 88
Beick, Felix and C~parI1', aDd the Bayer CCJlpaDy were useful to the Oerun
governmnt Dot ODly &8 a cover tor espionage agents but also as a .ans o.f
exerting pressure on the ~artant .-papers in *.x1c 0 to pubUsh German
propaganda news. Through econmc pressure brought by the large adwrt1sers
to bear upon Kexican newspapers and by offering DeWS aer'rice at ~l3"
law rates, the laz1ssucceeded in having their Traneocean News Serrlce releases
published in .ost o.f ~ important :Mexican D.-papers.
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Prior to ~ -.r aM ahortJ". after it began. most German activities
in Vex1co wre controlled by 8I1bers of' tJ1e German ~S7 staf'f'. In these
matters. the German Ambassador. Baron Ruedt V(Xl CoUenberg served mere~ as
a figure-head. The principal control ot espionage and Fopaganda acti'Y1t.ies
was in the hands of Arthm- Dietrich. the COamIercial Attache whose flagrant
activities caused him to be expeUed trom Mexico as persona non grata in t.he
1a.tter part. ot 1940. He -.. replaced 88 C~c1a1 Attache and principal
diplOll8tic figure in espionage and propaganda aatters by Hans Burardt.
A short 'tiIIIB Flc:a- to ~he opening ot h~til1ties in Europe, ~
Germans laid the ground work .tor an undercover espionage organisation which
would be able to tunction in case that hostilities mght exWld to the
Western HElnisphere alKi tr- Ge1'1D8.n agents be .forced to operate 'Wi'thin eneDO'"
territW7. Th18 organisation, wh11a collabm-ating with the &1ba887 was
entireq iMeperdent alKi was able to continue functioning &.fter the dip-
loma tic st.a.t.t departed tram Mexico.
 \
~e to the D&~al antipatq or most Mexicans toward the United
States, the Ge~D agents found many ready listeners for their propaganda
and were able to recruit any nati".. Mexicans to aid in their propaganda
and espionage serTieea.
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(1.) I I_cp~. Due to the fact thaot l8.x:s.co '888
one of the principal ~Dt.ers of German activities in the 'Western Hemisphere,
the number of case. requiring investigation was exceptionan,. high. In
addition to these genuine cases, tbe work of the Bureau's representatiV88
was increased by allegations ade by irresponsible informants of the Kilitary
and :Naval Attaches. ~ such incidence _s that of Elsie Pearl Shriber of
Boulder Ciot,., .evad.a.
Coos1derabJe 1nvestigatiop of this woman 88 coMucted both in
the United States and by SIB 1P Mexico from October 191.2 to Juq 1943, based
upon informat.ion f'urnished b7 the Ott~e of t.b8 K1.~ta17 Attache in *.x1co
City. AccordiPg to this 1D.tora tion, I I bad arranged to cOllllun1cate
by code with supposed Nasi agents in ~co after returniPg to the United
States in October 191.2. In July 1943.. 1nfor-.t1on .. received troa a SIS
informant which iMicated that I lbad been a 'rictim of an entrapment
scheme concocted b7 certain iD.torsptB of the tilit.&r'r Attache'. Office who,
working on the premise that she was a Ge1'll&D spy deT1sed ftrious scb8ll.es to
f
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b7.p
get hm- to cO1m]it herself. A thorough iD:luiz:Y bY S~ in Mexico ver:i..fied
the S18 Informnt's repcnot am revealed that I I bad not" in tact"
arranged to cODlnunicate by code but on the contrary" when such a plan
was suggested t,o her" had to1d the supposed Nazi agent that he was stupid
to attempt such camnunications which might cost him his l1:Z'a. It was
further ascertained that tb~~SU osed Nazi agent who endeavored to entrap
I lwas an snployee ot an informant of' the MiUtaryAttache'S- Ottice.- The information ob). as a result or SIS inquiries into this
matter was .furnished to the Off'ice of' the 1!1lital"y Attache and to the
~ilitary InteUigence Division 1n Washington. (100-36875)
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(2) j,OPrehension of Gerhard Wilhe~ K~ze. In NovEmber,
1941, Gerhard Wilhelm ~ze, f~r head or the GermaI1-oAmerican B\md in the
United states, entered Uexico for tm purpose or renouncing his American
citizenship andxet1U"11ing to Germany to aid the en811QT's war erfort. The
Btn-eau's representatiYes in YeJdco conducted extensive investigations r~
the purpose of' locating Kunze and baving him appreheMed. The cooperation
or. the 1~exican mill tary police -and the Hexican Department or Gobernacion was b
obta:ined am pic-.es of Kunze were circulated among the agents of these
de~(.m8nts as ~~ ,,~~ong the variOUS .&merioatl Consuls in Ue:xi.co. b
I I A con1'ident~l informant '.~ the El Paso Field DiviaionJ I
I I who was acquainted 'With Kunze and JaJew a m.w8r or Geman individuals
in Mexico who aided K'unze, was sent into ~e.:xico in an attempt to locate hjm.
, 'contacted onJ lin l.iexico City 'Who was latera:x;-re~ted by the Mexican ~ th~i des ~or.ding' Kunze. I Irevealed to -
tne informant Kunze was J.n the vid1nity or Veracruz at'id on JUne 30, 1942,
K1JIlZe was arrested at Boca del Rio, Veracrllz by the Uerican military
authorities. He was round to be using the nan e of U1'onso Ora!' Cabiedes and
to be in possession of a birth certificate in that name showing him to be a
J.'e:x:i.can citizen. .
At the time of. his arrest K1mze was in the process of. having a 25-
f.oot boat built aJxl had ~Cbased approximate~ $150 worth of. provisions am
supplies. ~ toM the natives that he had heart trouble and wished to take
a pleasure trip in the vessel, but la.ter admitted that he intended to sail
the boat to f'rier¥il.y" territory- so tba.t he c~d make his ~ back to Germany.
He also stated he bad attempted to obt.ain f.orged ~ssports through friends
in nexico but had been unab~e to do so. As soon as Kunze was arrested, the
Bweau' s representative was notif'ied and a positive identification was
established. .
Through the cooperatim of the Department of Gobernacion, Kunze
was fiO\1n on Ju:iy 4, 1942 tran Mexico Cit,- to BrownS'rille, Texas, where he
was turned over to Bureau agents. The cooperation of Mexican authorities
in this atter was exempli.t'ied by the fact that they did not insist on the
.f~ity of extradition proceedings in order to turn Kunze over to the
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.American authm-ities, nor did tbe7 gift all)'" publ1cit7 to the oapture
of Kunze prior to the ti- that publicit7 in 'tI. cue RS issued b7
Bureau aut.horitias in the United States.
b
(3.) ~st ~ca.r BoDl. Ernst Hopt _s known &8 .America'.
No.2 Mazi.. For many years he resided in the Bronx Section of Hew York City
and 88 a partner ot -Baron- Joach.im Fre1h8rr yon W1amersperg in b operation
of t.M Deut.8cher HandelB uDd 'l:irtacbattsd1enst, with offices directly umer
those ot t~ Oe1'8&n Cooau1ate at 17 Battery P1ace, Ifew York Cit7. W1mMreperg
deserted his adopted country, the United States, to ret1J1"D '0 OerllaDJ". Rapf
was a Ember ot the N.S.D.J..P. and returned to his fatherland near~ eftr)'"
year after he first came to the United States in 1926.
When Hop!'" nmber ca- up in t)" dratt I. crossed the Mex1can
border under the assumed ME of' Beman Di.etz iD August" 1941. SIS repre-
sentati'Yes" howver" succeeded in locating him. He was appreheIxled by Mexican
Goverment agents and incarcerated as an alien dangerous to the security of'
Mexico. Be 88 eventuall3' deported by the Jlexi.can Go1'9~Dt to Iaredo"
Texas" where be was arrested by BI1r8au AgeDts.
On October 13, 1943, a.tter a trial 1n Federal D18trict CO1D"'t in
New York Cit7 he was 88ntenoed to tJ1r88 years 1n pr1s~ .r~ Tiolation ot the
Selsctive Service Act. (65-9524; 25-88355)
(4. ) The ].(eX1canM1.crod.ot Cu.. m" .Clo2 Case-. '!he
Mexican Microdot Case was t.he largest and most important espionage oue
investigated b,. tbe Bureau's 515 Agents. It involved more tha~ tift,. _in
subjects aoo had ramiticationa in the United States, Colmbia, ~zil,
J.rgent1Da, Urugua,., and Chile. It was ginn \be code DaM .Clog Cue-.
'lbile 'this group aintained ita headquarters in )8xi.co City it receiftd reports
!rom, aM transmitted Essages to, individuals in the other countries involved.
The group in Mexico, &8 tbe inTestigation developed, proved to be co~ed ot
three separate esp100age rings operating under orders !rom Jst ~rl1D, Jst
Hal!i)urg, and lest Cologne. i'h. ooaaon denolRiDator ot these rings 88 their
principal .ana or comlmm1cation through micro-Ptot.ograpba. At wrioua tilDes
these agents utilized code messages ~ secret inks, and clandestiDB radios. The
chiet 888D8 ot cC8nun1oat1on on which tbe,. relied, hOWl8ver, alter their radio
ataUon.. closed down as the s18tell ot a1cro-pbotographs _lch has been
ter8d the outataJK1ing develol88nt 1D .p1onage cC8D1'nication curing tJ1e
recent war.
orb. aicro-photograJi1 .yste. e~lo.,ed b7 the Oe~n intelligence
organizatioDS was a product ot German Icient1.tic genius. Under ~ method,
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. Vnt!h rtf' t.he .f.ine co0D8ratioD in tI11.s case was due to ~ work
.~ who later as
 o.fl

MICRODOT
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espionage material ~ photographed and reduced 1n size ml e8pecia~
sensitized film to a llicroscopic size. Sane ot these finished micrcxlotl
were the size of' a period on a tr!1G~iter, whi1s others wre s1J.ghtl7 larger. The finished dot.-.s concealed on letters or other material .
which ~ mailed through regular channels to GertD8.n drop boxes 1.n Europe
from. where it was forarded to German Intelligence Headquarters. In
other instances, 8icrooots 'Rre f'ound concealed in the clothing of' couriers
or agents returning to &1rope .trom the Western 18mspbere.
~le 8)8t of the German agents received instructions in tM
enlargement ot microdots so that the,. might receive instructions from German,-
through this _ana, the production of microdots was too complicated tor the
majoritr of tbBm to handle. The production, therefore, was centered in
one _n who ... traiMd for this purpose. fh1s man I s services ...re utilized
by Hans Burandt, of the Geman Bnbusy on occasion aM by the ftrious
Ge~n espi.onage rings operating in Mexico. It was for this reason that t.he
.Clog Case8 involved mare than ODe operating espionage ring.
InV8stig~ t.ion ot the case began 1n 1940 as an otf-shoot ot the
"Ducase8 and it first centered aroond Frederich Karl Von Schlebrugge aM
Ge orge Nicolaus" the leaders ot the espionage group reporting to Ast Berlin.
Extensive inwstigation developed the contacts and an". ot the activities
of these irxi1rlduals. In April, 1941" Von Schlebrugge left Mexico eDroute
to the Orient. It was SCDe tiE betore investigation '9'8rified his reported
departure inasmuch as his bro~er" Franz Freiherr Van Schlebl'ugge" who also
resided in Mexico, impersonated hi. aM visited mDy- of his old haunts sub-
sequent to his departure. SIB investigations" how'9'8r" f1na~ verified
the tact that Frederic Karl Von Sch1s1:rugge bad departed from }lexica and that
the person who bad impersonated him 88 his ~other.
roUowing Von Schlebr'IJgg8 18 depart~e .trcm )(exico~ the principal
figure in the !at Berlin ring~ which was tbe largest of all the eapionage
groupe operating in M8x1co~ .. George )Jicolaus. !his 1ndiTidua~ ac't1Tites
wre mown to 8m .&.gents for some tiM before he _8 denOllDced to t1le Ksrlcan
goverment b7 hia former laooW,. and paramour ~ *ria Teresa Qu1ntanilla~ as
a German sPY'~ on .&.pril 2S~ 1941.
Nicolaus and Von Schlebrugge bad M"ganized & highly effecti ft
espionage organisation aI¥i at first c~UDicated nth German)'" by code messages"
secret inks" and clandestine radio. For radio facilities they enlisted the
services of Carlos Re'te1sdort" the Mex1ou of German decent who owned a
coffee plantation near Coatepec" Veracrus. Retel8dorf as an amateur radio
operator aM through his station QBO endeavored to 8end messages to Ge~I1Y'.
Due to difficulties in contacting Gerllm.n 8tations" Retelsdort .tr8quent~
forwarded _ssagea tbrouF t.he radio station at Center Point" Long I8~
which _s operated by the e8pionage organisation of Prederick Joubert DugueSn8
under control of the FBI. Rete lsd ort , 8 radio amateur l1cense ~ revoked b7
~eCREi 478

the JExican government on June 28, 1941 and his station closed down.
No action was taken against Retelsdort, hawver, until June 191.2, wben
he was arrested and interned in the concent.ration camp at Perote, Veracruz.
Following tbe closing of' Rete~dort's radio station the German
espionage agents in )Iex1co began using microoots in their canmunicatioDS
with GerClany. It 'WaS 8ubseq,uent~ reported that these llicrcxiots were
made by Arno1d Karl Franz Joach1m Ruge who bad returned to ~co in August
1940 after having gone to Ge1"188.ny where be 'AS trained in 8icrophotography.
The tiret east-bound 8icrooo~ were intercepted by censorship facilities
on a letter postmarked from '*:I:1.CO, D.l. on Deceaber 6, 1941. The flow oE
microoot ~ssages from *xico to Germ&n7 continued until the last of Jan-
uary, 1942, a few weeks be£ore Nico]aus as arrested by the Mexican
authorities. Shorty after his arrest, Rugs was also detained as one of
Kico1aus' known cont.acts and sent to t.he concentration camp at Perote,
Ve!"acruz. This terminated the first series of aicrodot letters.
Nicolaus was S.,it to the United States to be repatriated when it
was ~scovered that be ~. I9ndeavoring to sauggle espionage information
to Germany. .A. search disclosed that he bad seV8ralincr1m1D&t1ng items on
him aDd that he bad conoealed several 8icrcxiots in his shoes. ~ this basis
the United Stat,es Gove~nt re.tuaed to repatriate Nicolaus am interned
him far- the dm-at1.on of the.r. In spite of' the incriminating evidence
found on him, Nico1aus refused to devulge &rJ7 1n!ormat,ion of value regarding
his act1.vities am assoc1.ates in Merlco unt1.l the war was over. When he
finally became convinced that OermaD1 was defeated and that Hitler 8S dead,
he f'urn18hed Bureau Agents considerable 1.n.t'oril&tion regard.i.ng German espionage
activities in Mexico. Alt.hoogh this 1n.toraation as received too late to
be of' much value to the 1.DV8stigatiOll, it served to substantiate the int'or-
mation previousJ.,. obtained b7 515 representatives in Mexico. ThiS statement
also SerTed to ftr~ the collaboration wh1.ch existed bet'W8en German and
Japanese espionage agents in Mexico prior to the departure of' the Japanese
Diplcxaat1.c mssion.
ThrQlgh bribery, Ruge was ab1s to _obtain his release from
the Mexican concentration caJlp in JulJ' 1942. Shortly atterwards he assumed
Nico1aus' 014 position as head of the Aat Ber1.i.n group and the flow of' micro-
dot letters was resU8d. As 800n as the new .eries or letters began, 5IS
investigative attention.. concentrated on determining the ident- aM contacts
of the Qe~ agents suspected as being inwlY8d. These investigations de-
veloDed ramifications in .everal otMr LaUD American countries and as has
been previousq pointed out, it 88 8Tentua~ d1acowred that there-as a
connection bet_en the .Clog- group and ~e EFE courier ring operating out
or BueDOS Aires.
In addi tiOD to the large number of agents ~ction1ng UIxler in-
struC\10D8 of Ast BerUn *0 ut1lised Ruge's microdot 8yBt.ela, the representatives
of' ut Hamburg aM Nest Cologne 1n Mexico alBo forwarded Essages by t.b8
"ame .thod. ':;::~ +St.~.! .
419

The activities of the .1It H&mbI1rg group .re directed priar1l'1
toward accumu1a't1ng and transmitting int0r8t1on of a 8trict~ ailitar,-
natm-e. The leader of the Bamburg group in lexica as Edgar Bilgen. .A.t'ter
the arrest ot Nicolaus and Ruge, Hilgert 't8!Dp~ar11.y discontinued hi8 work
for the Nazis. When Ruge was released .!ran confinement and todc oyer the
leadereMp ot the Berlin group, Hilgert resumed his tuncti0D8 on behalf
of Hamburg am became closely associated with Ruge. Col1aboratiOD between
the two groups eventually amounted to a near .rger ot the Berlin and Ballburg
organizations of Mexico.
The third group coUaborating with the Ber11n axxl Hamburg espionage
rings 'waS that controUad b7 Nest Cologne under the leadership ot Franz
Yilhe1a Buchenau. ibis iMividual Was also interD8d at Perote, Veraoruz in
~tober, 1942. He was subsequently released in Februar,-, 1943 aUegedly atter
paying a bribe of 5,000 pe80S. Uter biB relaase, Buchenau resumed bi8
association with RLlgert and Ruge.
SIB investigations produced a ",ut ..~t of e'ridence regarding the
espionage activities of the principal subjects in this C88e. This 1n!ormation
however. was not turned over to the .xican Government during the ar. due to
the objections of tbe United States War at¥! Na'V7 Departments which telt that
the disclosure of' 80.- of' the decoded material Bight jeopardize the ar ef'tort
by letting ~e Qe~ns know that their code had been broken. Material prepared
f'or traD8m1.ssion to the ~xican GovernMnt was rewritten at the Bureau to
delete reterences to deccxied information and the military departments gave
their consent to f:urn1shing the revised material to the *xican go",ern_nt.
The American Ambassador to Mexico. George S. *ssersmith. h~ver, objected
to the transm.ssion of' this memoramum to tbe .ncan Gove~nt, and de1ayed
f'urnishing it to the Jexican Foreign ottice until January 26, 1946.
The llexican GoV6~nt, after a atud7 ot the evidence submitted,
agreed nrbalq to tJ1e repatriation ot aU ot 'the German Citizens iuvolved
in the case. On July 20, 1946, the Mexican Secretary of Foreign Relations
advised the United States Ambaasador that 24 civiUan8 'were 8cbeduled tor
l'epatriation to GermanY' along with 2~ German Seamen who had been interned
since the beginning ot the war. '1'w8nt1'-one of the 24 civil1ane .re subjects
in the .Clog Case".
The Vexican officials began aking the arrests on August 1, 1946.
The f'ollowi.ng day, an attempt was made to arrest Joachim Ruga at his h~ on
the outakirt.s ot Mexico City, where tor some time be had been operating a
chicken farll. lQlge avoided detention at that t1- b7 threatening to kin
anyone who tried to arrest him. When the *xican police ret1D"ned to his hC8
the following day to ettect his arrest, they d18cOftred that Ruge had canm1tted
suicide.
JIaDJ of. t.he subjects in the -Clog Cue- who .re listed tor de-
port,ation learned o.t the action to be taken against them several da18 prior
to the actual arrests. This ga" sewral of. them an opportunit7 to go into
p-2ding. Through 8m 8~C8S, the Bureau's representati"8 were able to toUOW'
~T 480

the plans of &1gar Hilgert, one 01' t.be principal leaders, who went into
hiding on a ranch near Pueblo, Mexico. Hilgert' 8 whereabouts was furnished
to the *xican police who raided the ranch aoo arrested him.
The entire deportat1.on program 1.n'9'Olnng these ind1.Yidua1s '8S
handled in a wry indifferent atter bJ' the Vexican government. Eighty-three
civ1.l1ans aM 194 Seamen had been reco~nded by the United States offic1a1s
for repatriat1.on. The Mexican GoverDIMnt agreed to deport the entire group
of 8eaDen aDd 24 c1.T1.l1ans. Of this number, however, only JJ ciT1.lians
and 62 seamn were actua~ deported to Germany. Reliable sources indicated
that the payment of bribes to Jlexican officials enabled a number of civilians
to avoid deportation. Others went into hiding until tbe departure of the re-
patriation ship fro. Veracruz. In most instances, the arrests which were
actual17 made were not accompanied by searches alxi therefore no espionage
materials wre located aM no inform.tion was obtained regarding the where-
abouts of the mcro-photograph equipment employed b)" Rugs in making microdots.
The excuse offftred officially by the Jlexican Goverrmtent to the
American Ambassador tor failure to take atrenuous action against the .Clog
Case" subjects who were naturaUzed lfexicans was that under eD-sting law, repat-
riation or deportation of these individuals was impossible. It was added that
if the 1ntormation concerning the activities of these subjects bad been obtained
by the JExican Gove~nt during the progress of the war J there would haye been
little diff'icult7 in repatriating them in 88 much as adequate legislation of' an
emergency nature could bave been put into affect. The failure to tarn1sh
the Mex1.can Gove~nt iDf'ol'mation regardj.ng th.1s case while tbe poSsibil1.ty
of action still existed was due to the desire of tht: ailitary departments not
to disclose inf'ona tion regarding decoded mterial and subsequently due to the
dil1tory tactics of Ambassador Messersmith. (65-l62?3)
b.
~~ Li.S!: Q!!!S
Intoration which was compi1ad regarding Mexican firlE that Jaad
to their being pJaced upon the Proc1a1med Liet (Black List) in Kex1co, ..
handled by the C~ercial Attache of the United States Embassy in Mexico,
D.F. The C~rc1al Attache _de rec0mm8ndatioDl to the State Departaent
that certain firms be pIaced upon the Bladc List when it 'R8 found that they
were controlled b,. ind1vidua1s sympathetic to the Axis cause or financed
by Ax18 eympatl'dzers.
The Commercial Attache frequently conferred with the Bureau'8
representative in Kex1co and in doubtful cases, requested that an inT8st-
igation be made tor tie purpose ot deterlling whether a reco~ndation
should be Mde to piace 't.b8 firm on the Black List. It was 8sti_ted that
the Bureau' was responsible for the placing of. about ten per cent of
the fir- in ltexico which ." on the Black List. The information regardi.ng
s~~~£~
481.

these t'1.rID8 was also f'urnished to tJ:. .xican GonrlJDent sioc» in ~t
cases where fir8B were placed on t~ Bl&cir. List, tb8 MexJ.can Oovernment
took over the _nagemen't or the concerns. Such 1ntOrllat1on '{4'O'ved to be
very valuable to the Jexican Govemment ot1'1c1ala in ID8k1I1g their dec1e1~.
An ~tatanding example at the work done by the Bmoeau in connection
with black1i8ted f'irm a!xi individuals 18 the case o.t AtJEoaham Z. R1.11.1ips.
Hlillipe had been arrested and charged wi tb violating a Mexican criJIinal
statute in attempting to 81n1ggle contraband mercury aboard a Japanese ship
at MansaniUo.. Mexico, in October, 1941. Be and aU the cC8panies '8hJ.ch be
controlled were placed on the Proclaimed List as a result of this episode.
Phillips 'AS released from jail on' bail and im8d1atel7 began to use hi8
influence and moneY' with high *x1oan Gonrlment of'f'icials to get biB D&8
remand from the Blat* L1.st. He had for MnY years been engaged in a
number of questionable activitiea in Mexico and, as a result, bad been able to
influence a numer cf '98r,. 1IDportant 1J¥iiT1dual8 in *x1co. In fact, at various
tiD8s be had been in 1oIua1ne88 wi t.h 8~ of' the high GovertDent of'fic1a~.
Consequentl7, he was Mftr brought to trial, aM it appeared that thr~
his 1nf'luence.. enOllgh pressure might be brought to have hi8 name remowd .trom
the Black Liat. Howver, cen it became known to the Bureau that Pb1ll1pa
had 8de a request for the deletion of' b18 na8 tl'oa the BJack List, tbe
Bureau I s files -1'8 renewd to obtain all infor-. t1on pertaining to Ph1ll1psl
ac~1T1tie8. Aa a result, an eleven page amoralMiua was prepared f'or the
Interdepart.8ntal Committee on the Proc1a1lD8d L1.et, which CCXIIn1ttee decided
whether a reque8t f'or deletion f'r<*1 the List would be granted. !he aemorandum
was based principa1l7 upon information furniShed by the Bureau 18 repre8ent.a-
tiT88 in Mexico and it showed quit.e clearly that H1il1ipe bad been acting
in behalf of the Japanese Gove1"J88nt onr a period of' year8, that h18 activ-
itie8 bad been detr1mental to the United States Gavemment.. and that there
was no indication that h18 activities wou1d Dot continue to be detr1Mntal
to the United States Governaent. Aa a result, Abraham Z. .A11l~p8 was
continued OD the Black List. (64-S003-6~; 64-2700-B-22,35,54; !.it-27ct>-B-22)
j-nt1-Un1ted State. Pro~e:a~
 c.
The tear with which JBOst Mexicans T1e'rf the United States aa &
strooger OOUDtr,. has Be ~co a fertiJs field for anti-United States
propagalxla. Mlch of this propaguKia 18 prepared b7 professional agitators
and is usually baaed on distorted facta i.f' not outright fal8.ho~. The
damage mich these agitators baTe been able to do to llexic&n-uni ted States
relations baa been ot cons1derab1B CODcern to State Department ofticia1a.
In at least two instances, S18 representati'98s were able ~o furnish infor-
mation which lead to the check.-.ting of 8uch agitat.mos.
(1. ) !be .j,seociation tor t~ Protection of United
States Citizens &B *;xico.. In Juq aM Auguat, 1942, .~co was .tloooed
with thousar¥i8 of leaflets containing rlcioua propaganda reportedq issued
~ the .Association tor the Protection at United States Citizens in ~co..
~e leaflet. conaisted of a number of 8tat.-nts aM 1natruc'ti0D8 telling what
an American toor18t ahouJd be on tb8 lookout fmo wben in Kex1co. The 8tate-

mente were ot such a Damre that they reflected, in a very derogatory Emler I
upon both tbe ~can and Aaerioan people and. apparentJ.y were intended to
disrupt relations between tbe two people.. . large m1m.ber of. tlles8 leafiet.
were also sent to vari~s JE"ominent people in tJle thited States.
~'9
.A. short time J&t,er a postoard bearing the same sort ot In"opaganda
was purpor~ issued by tbe -American Detens8 Soc1e't,- in J8xico", a1'tlliated
with the -Assoaiation for 'U1e Protection o.f lhited States Citizens in 187-1co".
The viciws na 'blre ot this propagandaC"oused both the American am Mexican
autborities and. intensive investigation the'
sentatives in close collaboration wi
!a a direct result of tbis investigatior
COl18 e ec 0 ed8 ot printing establishments 1n
Mexico City-, an individual residing in .%1co under tne !Jam ot Jose IDpez
was arrested on September 8, 1942. This lMividual, upon questioning, stated
that his name "DB Claude English and gave detailed 1nf.ormation regarding his
alleged past activities. His fingerprints were obtained and forwarded to 'U1e
Bureau at Washington where the,. were identified with the prints of Charles
Janson. He had enlisted in tJ1e lhited States Army on April 22, 1919. In-
vestigation in tbe tilited. states showed tb&t J:n"&ctically all tJ1e in.fonaation
that Janson had given the autborities at lfexico City- -s fabricated. It
was also determ1ned ~ t Janson bad bec~ a good trieIKl or one Claude :&1g1isI-~
while botJ1 were _ntal patients in the thited States Veterans' Hospitall8l,
Bronx, New York, 1n 1924 and tl1at English had given Janson permission to get
&; copy of EnGlish's birtJ1 certificate in Trenton, New Jersey, 80 tJ1at Janson
could get a pension trom the State of New York. Janson had been using English's
n&8 and life story ever since tJ1&t time. The *xican au 'U1ori ties, convinced
of Janson's guilt, sent him to the *x1can Government concen~ation prison
at Perote, Veracru~.
It as Ja.-ter tOWKi 'UJat Jansm bad been adjudged by the Veterans
Administration to be "1nc~tent and insane" and 'UJat a compensation rum
was due Janson totaling approximately $10,000, but tJ1at his whereabouts were
unlalown to the Veterans .Administzoation a1nce 1933. The Veterans AdnLinis't1"ation
was advised or his whereabOllts. In December, 1944, tlte State Department
requested tAe 1!exican autAorit1es to return Janson to t11e United States.
(100-149244)
(2) Gerardo Jalrlllo aka Dr. AU. The work and activities or
a vicious 8nti-American iiiaiiit.1.~t.1.c }n"opagandist were uncovered by the
alerto!:."~ an ~~~o~: :::oa:;:::: :on:v ~ .::Jss ot an 1D!ormant ot one or the B\1reau '8 undercover a ente in ~co
City. was in
tl1e 0 ce 0 rar 0 0, a we own can WI" ,one 1', observed
that Murillo's secretary was bus1J.,y clipping articles lrom various anti-American
am anti-6emitic plblications. He reported tl11s information to tJle Bureau'8
undercovC' .A.gent and ~t l.aent, alter 508 investigation, reported tlJat ~1ll0,
~D148 3
!~~~~ T

whose pen ~ was Dr. J.tl. appeared to be &gaged in the ..itiDg of no10U8
anti-.a.rioan and anti-sellS.t10 propagmda. This 1DtorutioD '88.. reported
to the Btlreau and up= oheok1ng ~e fil.. recarding Murillo. it foad
'that the ~8&U had r8cord8 r8Card1D.g hi. aotiT1tie. dated back 'to 1915.
!here were DU88r0U8 referenoel pertaining ~o MQrillo'. aotiT1t1e.
in Ke.x1oo mod the Uni'ted S'ta't88 during the World War period aDd the J8&r8
follawiDg. A4 early.. 1915 .nd 1916, MUrillo was ed1 ~or of 8Uob aD~i-
American publ1ca~i0D8 u 8~dil Accion8 and 811 ~do.8 A~ tha~ ~,
MUrillo ... a 80oialil~ 8Dd wrote iDtlamma~ory artiole. resardiDg the UDi'ted
Stat.,. throughout the J'8ar8 he a'ttached hiuelt ~o ~iou. radioal organi-
zations. luoh ai' The Y.W.W. (International Work8rl of the World); the
Syndioalil't8J and the CmmmID1.~I. 1D 1921, he wa. ao~iT8 in 8DarOh18~
delnOD8tratiOni aDmC railroad worarl in Manoo. OAe of thele demnltra~ionl
a-t Ouadalajara. .%100. re8ult.8d in the killing of leY- Catholici and the
wounding of eleTen.
JD inYel~.sat1on ot ~r1l1o'. aotiTit1e. ~ the Bureau" repre.enta-
tin in llerloo 1m. ,..,Uabora'tion with 'the ~O8D pos'tal authoritie. revealed
that he had jut o~1eted the tint ot thr.e To1~. ot a 'Wrk ct1t1ed,
-La. ~d10. Sobr. Jmerloa8 (J... OYer A..r1ca), Wbc in October. 1942 he
lent thi. tirlt To1ume in quant1t1e. to tome eight tDd1T1duall 10oated through-
out .noo. !hil book, wr1'ttc in 8panilh. ... ~. of the ~8't .ourr1lou.
propaganda boob po.sibl.. It 1. not onl,. a Ticioul attack on the J.-,
but 11 a180 aB eqaaI1y Ticioul attack on President Rool8T8It and 8Ost ot the
high C0T8~t, buaine.. and induatr1al ricure. in the UD.it.d States.
The book and Mlrillo' 8 background ..re i_edia~ely brouch~ ~o the attctioa
of all the intere.ted ~r1oan Go~rn88Rt agencies and ~o ~he attention of the
Merloan GoTerDm8D~. !'he 81pt indiT1dua11 to Who. the qUaDti~1e. ot boob were
_lIed were tDnstigated ad action .. taken b7 the Mexican GoTernaet to
preT8ut the cceral distr1but10n ot this propacanda. (64-2T~-6S3)
d.
c~.'t 5:,.v iit.
(1.) ~oan_C~~4It~~ The Kex1oan COI8mlrl
Party. a. .uoh. 11 Tery- 1811 in oODtra8t with the C~ml.t Partie. ot
other Iatin .A88rioan oO1m.trie.. In lM6 it wu ..ti.t8d to haT. bec
bet88en 6.000 and 12.000 ..mberle !hele t1(Qr81 are deoep~iT.. ~er,
tnaamuch a. per8oaali ty conflict. 8nd 'truggle. tor aQtbori ty haTe re8Ul ted
in l8Teral -.plita- 8nd -purg..- .too. ~ whiCh baTe greatly r.duoed the
number or tndiTiduall atfiUa~ed with the Party.
484
!he r-..181Dg ~jori 'ty ot per8ou aDd taction. 810 haTe be8n
expelled, hORTer, haTt' in ~ 'ftJ abandoned their ~I't philo80phf or
weakened in tb.ir IUpport ot balio C~I't polioie., iDolu4iDg the ..pport
or the SoTi.t UD1~. !be.e expell.e. to£ether with the lar£. D~er of 80-
called ~lell -.rxilt.,. the admitted 18r2i8't1 ~o tor per8oual re.80D8
or oti1.rwi.e haTe Dft'8r otficially become affili.ted with the COaIBmilt Party,

wield considerable influence and when their disruptive efforts are added
to those ot the official party elabers, they constitute a farce dangerous
to the .-ltare ot Americ£D interests in Mexico.
Since 1940 when the old Jaadership or the Party _8 expelled
wxier orders ot the CCJIIintern, the *xican C~1I81n1At Party has been
under the official gu1dacce of' Dionisio Bncina. This individual 18 a
wak leader, poorly ftrsed in *rx1at tbeorie8, and 88 a result be has
had a sreat deal of' d1f'ficulty in holding the Party together.
After the dissolution of the CCDintern aM as a token
con~ss1on to the policy of -Nat.ional UDit~, the C~ist Party
of ~co changed ita name to the .}Mxican C<*1DIlmst Party." Thi8
variatim W88 offered &8 an iM1.-tion that the Party... now 1ooepeMent
hom foreign influences and was .national- in its concepts.
In 1946.t the l'axican Communists had a chance to test their
strength as a political p4rty. In that year the ~ncan Govemment
pranul.g&ted a rww ele\; _"!'allaw in preparation tor the pending national
elections. 'Dlrough forgery and fraud tM CaDIa1niBt Party 'Was able ~o
register 11,899 Embers throughout the Replblic. 'l'hi8 number 88 sufficient
to allow \he Party ~o reg18ter as a du}:" organiHd political group. In
the 8ubaequent, elections, h.-ever.t Done of the official Canmunist PartY'
candidate8 was elected. The Canmuniata obtai.-.d s~ innuenoe with the
new national arl8lin;~t.ration, nevertheless, 8ince tM7 aM ~he1r affiliates
supported JI1guel Aleman, who won the Pre81den~ial elections.
'l'ba Mexican C~_f!ist Party baa been poor 1\1" organized am in a
perpetual state ot fioanc1al ellbarraasEnt. During the perioo ot SIS
coverage, ita only otfic.i.al propaganda organ wsa the W8ek~ ~paper,
wJa Voz De )lexico". The propaganda work as adequately supple~nted,
howver, by tbe dai1,. ne'npaper 811 POpu1Ar8, published by Vicente
LombaMo Tol8d&no. 811&11 and weak though it W'&8, the Mexican C~IDQ~.t
Party constituted a tirm hard core ot iMirldual8 tanatically devoted to
the CaDlmmist Party 11M who 18.intained alliances with any' other gr~p
in ~co which 81ght serve ita purpo88. C1os8 SIB coverage 88, therefore,
developed and _intained OYer Cn::tmnist Party acti'rities and the Bureau
and the &nbassy were constantl1' advised or all the developments ot interest.
(64-200-221 )
(2. ) Vicente Lombardo 'fo~o. Urxioobtedq the
most 1n.f'luential iJ¥i1ndual 18ttist in Iatin _rica is Vincente Lcabardo
To18dano, the Mexican labor lel\der who expanded biB activities into the
international labor field and 81noe 1941 has dominated a large _jorit7
ot Latin A8rican laborers throllgh b1a Contederation at WorkBrs ot
lAt1D America.
485

486

Lanbardo Toledano 1B a selt'-ety1sd 81erxist-LeDini8t- aM the
.oat important Ember of t~ so-oaUed -Party-lass Kar:l:ist. group in
Jlexico. He occupies the unusual position of being one of the best
known Warx1Bt theoreticians in .:x:1co ar¥i the 1rx!i'ridual to who. the
Mexican C<*1IIIUnist Party frequently locics for support and gt1:i.danoe wh11s
at ~ s.. ti- be baa never been known to be a C~ist PartY' member.
An indication of his standing as a Marxist theoretician was given when
the Uexican CCDIIUD1.st Part,. officially- urged its .mbers to read and
stud,. Lombardo's speech or August 5, 1945, .analyzing- the postwar
problems facing the Marxists. ~8 was the .rust plblic speech made
bY' arJ1' Mexican Marxist authority after the various C(XImunist Parties
began to studY' their "errors. in the light of the criticism JUde of' the
United States Canmunist Party by Jacques Duclos in April, 1945. Laabardo's
discourse 8S one of" tJ18 ~t accurate ana~es of post-ar Col:1.allln18t
policy in Latin America which baa been 8de.
In the realm of *x1can doD8stic poll tica, ~bardo COn8tant~
ewsavored to expam his influence through the organiZation at a political
pa;t-ty dedicated to KArx1Bt principles but which would have a broader
appeal aM, therefore, aore power then tlw standard Mexican COIIIDunist
Party. These efforts prior to the closing at SIS wre not 8uCC8SS1'ul.
Lombardo's influence in Uexico was strongest in the field of organized
1abor through the Coofederation of Workers of Mexico (CTM) arxl in the
fieM at education through hj,s Workers University. His influence -.s
also extended t1U'ougb the publication of his newspaper, 8El Popula~
and through his excellent abilities as an orator.
In the international field, Lanbardo also worked cloeeq with
the 'nr1oua C~ist Part~iJS aOO their troot organizatioD8. In other
countries of z.tin America his chief .sana of contact and inrluenoe was
the Confederation of Workers of Latin America of which he 88 the dollinate
figure. In the United States, he 8S aided principa1~ b1 the Ccmnunist-
dominated Cooncil for Pan-American Democracy in New York City. With
t.he assut.ance of the Comaun18t and pro-C~nist e18_nts in the variOl1S
countries of the Hemisphere, laDbardo succeeded in b1i1ding himself up
into a f1gure of international importance.
Lanbaroo's Tio1snt1.Y' anti-American views made it MC88sary fm-
tbe Bureau's representatives to rollaw his activities closely. The
Civil Attache's Otfice 88 able to keep the Bureau and the ADW3ricah
Embassy adequately advised of LaabBrdo's activities tJ1rOUgh excellent
inf'orant coverage which included lDm1-.rdo's ~ bodyguard. (100-4326)
(.3. ) TOe German COIDIIIIlnists and the So-called 8Free-
European )(ovelMnts. The policy of tM Mexican Goveri'lD8nt in Eking Mexico
a ref'uge tor ~e persecuted, brought to that country a large grO\lp d:
war-time luropean refugees of varioua nationalities. Man,. or these re.t'ugeea
were Communists and, as such, their presence and activities served in-
directly to reinf'orce the COU1III1Dist Movement in Mexico. Under their promiseS:E~B:£~< -
487

-~~~:.eii!-
(
~~:tRoE.f . .' ~
If \} t:S

u refugees Dot to participate in local poU tical &.t.fair8, ~7 wre
Dot per8itted to join the Kexican C~_"ist Part1. Instead tb87 m-gan1sed
ao-oalJ.d 8F1'e88 groups alOltg natiooal1atic 11ne8, wb.1ch in .faot _r.
_re17 C~~D;.t .f'roat organ1satioD8. !be Jargest of the8e gr~p8 88
the Pre. Germall1 Move_Dt which as Ol"g&D1zed under tM leader8hip ot
IJ1dw1g ReM, Otto ratz aM Paul .rker, ~ German C~ni8t8. The
m-ganiaation had its headqaarten 1D ~xico Citr aM at its height,
embraoed .8ber groupe 1D ArgentiDa, Boli'ria, Brasil, Ch11e, Co1aab1a,
Costa Rica, Cuba, the DOID1D1cau Reptbl1c, Bc1I8dor, auatell&1a, Bomur&8,
Panama, Urugua7, aDd Venezue1a.
In ~co the Free Germany KaY.aent ~bl1shed a ~~per 8Freiss
Deutchlam8 Jawr kDO8D 88 8Demokrati8che P~t. arM! the Spanish lAnguage
~_paper 8.A.le..nia Libre.8 Thee. papers wre wide17 circulated out81de
of *%1co am 'the OerMn ftrs10n 8speciau,. was circulated among ant1-
Hit1..r German groupe in un,- r.Un .American countries. The organisation
a180 sponsored a pub118b1Dg h~e Do.n as .:11 Libro Libre. (The rre.
Bo~), which waa ut,1l1sed in publishing- tbe writings of the European
C~ist authore resident in *nco. Tbe ~..nt contiDUed. to be ex-
t.re-l7 actift until the 1&tter part of 1945 when 8n7 of its leaders-
returned to Oerman,.. (100-72924 )
An 1Di1cat100 or tte reIatioDBh1p which 8Z:1.8ted bet..en the
European Commmj -ts and the I8x1can ('~-~'\i8t Part.,. 88 d18c1~ed in two
coll81D1cationa p-epared tor the *:r;1.can CQlllftlnj -t,a b7 Paul *rker,
repre8eDt.1ng the 81ropeans, on October 18. 191.5, in anticipation ot his
return to Duoope. These letters, which were obtained \hrough an SIS
1ntor.-.nt., disCU8sed in detail \he CODt11cte aM per8anal disagree.nts
which afflicted the European COIIII1mi8t in JMx1co. '!'be let.ter8 .1"8
apparent~ 8ub11tted to the *.x1.~-D C~"'Inj.t Part,. &8 a report. on 'the
d18.entioDB *1ch ar~e aaoDg 'the Kuropean COaI\Ul18ta during their
exile in Mexico. (100-72924-761)
u an indication of .rkerts status as a C~1mm18t. it i8 o.t
interest to note that ~ not onl)" authored tJ1e8e 18tters but when he
depar'ted tr~ Mexico on *7 lh. 1946. aboard the Russian '98ssel 80000I.8
bound .tor Vladi...oetcK. 1ESR. ~ .. reportedl,- in possession of a note
8tating that he bad permission to enter the Rus8ian occupied BODe o.t
Gel'll8n7. 1'h1a note .. 81pd b7 GrecOl7 Xaaparov. al1agedl,y tlJ8 principal
NKVD agent in the Soriet ~S7 1D Mexico. (1~9.516)
l
In add1\1on to t.b8 PJoee Oer.any Kov_nt, the European CC8-'ni ate
a~o let up Free Hungary, Free Yugoela~., the Pol1ah-M8.x1can Deaoora\1c
Union 8Tadeus loac1U8Sko,8 the Auatr1al-Republioan Action of .rlco and the
Oaiaeppe Gar11Bldi International Alliance for tb8 ~~ of 1\&17. m'
ot these organisat1ona _re nob e..Uar then the Pree OeruD7 group ~
\be7 operated ~re or lesa under ~ aponaorah1p of t.b8 Gerana. fte
organ1KU0D8 wre act.1 '98 until ~ clo.. ot the ~ wh.n t.be prinoipal
5ftRE~ 489
t
!
~

-S:-~£BE~ ~
(4.) ~D&nish C~~~ Ac~in~. FoUowing the
Spanish Civil War, a large group of Spanish refugees wa. allowed to enter
JExico, among them n~rous CanDlmists. This migration was facilitated
by the »exican Government, the princiP.a.'J. restriction being that the emgres
could not intertere with Mexican poli\ics without adopting *xican citizen-
ship.
'!'he CaIIIlUnist Party of Spain - Delegation in Kexico sa led
by Vicente Uribe and Antonio lIije; the Unified Socialist Party of
Catalonia as directed chiefly by Juan C~orera, Jose )Ioix, and Jose )(arles;
the Coanunist Party of Euzkadi RS led princ1pal13" by LeaI¥iro Carro
*ndiburu, ~s Zap1rain Aguinaga aM Ricardo Cast-ellote I&8tra.
(100-163705 )
490

~
Republicans. In Auguat, 194.3, the DaM was changed to 8ub8titute
Kuropean Ref'ugees f'or Spanish Repub1icans and the organization represented
itself as being dedicated to the relief' ot European ref'ugees in general.
The principal ~ctivities. ot this organization were the collecting and
distribut1rccic.ftnQ, pa~Ot traveling expenses tor Spanish Couanun1st
Party um'bel's and the turnishing of scholarships and subsidies. 'the
~ alBo supported. a sanitarium and an educational institute. It was
very active in disseminating Communist-onented propaganda against the
Franco Government in Spain. The *xican Commun18t Party collaborated
clos8],y with the Spanish COImDunists in the administration of the affairs
of the FOAR8.
The Pw¥i tor Econalic Aid tor Anti-Fascist European Refugees
(FAERAE) was organized by the Spanish CcmlUnists in June, 1944, tor
the pure relief work which had tor18r1y been performed by the FOA-~.
The new organization 'W8.S established to permit the FOA.RE to devote more
ti!rIB to political and p: Jpaganda activities among the prO-Caumunist,
anti-Franco ~OUPB and t' t t.he sam time to assure the receipt ot refugee
relief funds which 'Were ~\Jrbidden to organizations openly engaged in
political agitation or propaganda. The separation of the two organizations
was pure ~ a bocickeeping arrangement. ( 64-23410 )
The CCJIIm1ssion to Aid the Junta Suprema of, National Union
was formed in the 1& tter part of 19'.4 to 8upport the sO-called Junta
Suprema de Union Nac1onal, Which ~ alleged to have been formed in Spain.
This was a front organization designed to arouse public support for the
Communist dominated -Junta Suprema" and to enlist the cooperation of
non-CaDmImist parties in pranoting the overthrow of the Franco Goverrment.
The directing forces beb1m the organization were Dr. L1no Sanchez Portela
and Jose Sanprieto, both Spanish Co.-lnists. The organization expanded
to include a large number of. noO-Cozunist Spaniards and to gain the support
of many non-CO!!I_nn\nist Kexicans. Although the Junta Suprema itself 'R8
dissolved in France in 1945 in an effort to promote unity among the
Spanish anti-Franco forces I the Mexican group was not dissolved but was
reorganized and continued under the name Spanish National Unioo. (97-26d4)
b1:n
(5.) The "Alto Case" And The ComImm1st UnderF.rourxl
In Mexico. The .i.nvestigation known as the "Lytiia Altschuler Casen or under
the coded Dam -Alto Case" involved what _8 evidently a part, of the
Communist underground in the United States and ~co with ramifications
in "tOst of fa other Latin J.merican countries. The case was built upon
series of twenty-tour secret writing lette~8 addressed to known Communists
or ComIImnist sympathizers which were inte~R:tB:l1 I between
November, 1941 and November, 1943. Much of the case apparentl,v centered
around efforts to secure the freedom of Jacques )lornaI'd Va1xlen~.dresched,
the convicted slayer ot Leon Trotsky in Wexico.
SECREf
491
Jiost or' the investigation in this case was _de in the United
States and )lexico. Investigations wre also colducted in Argentina and
Chile in an effort to ident1f"y the senders and recipients in SC318 of the
cC8m1unications and extensive inquiries were made in other count.ries to
cover the associates aid contacts of the principal subjects in the case.
In the United States" investigation was undertaken with a view
to possible prosecution ul¥ier the censorship laws. The identify of the
person who wrote the fifteen letters originating in New York City 8S not
positiveq deterDl1Md but the author as believed to have been Pavel
narin" of the SO'rlet Consulate in New York City. Aside .from nann" the
key figures in the United States incl\Kied Lydia Altschuler" Anna CollODlS
alxi Jacob Epstein. IJdia Altschuler was the addressee of so- of' the north-
bound cOlDnunications. J.nna Coll(XDS" likewise an addressee of' one of the
cODIIImications, also 8erved as a courier in carr)"ing one ot the letters
from the United States to ~co when 8~ visited that COUJ1try in August,
1943. Jacob Epstein of New Iork City as the on~ known writer of' any
of the secret writing letters. He wrote three ot the c~icat1ons .trom
~co dvtng his stay ~re trom September, 1942 to August, 191J.. Due
to a lack ot concrete evidence in this case and the tact that the oens or-
ship law containing no provision prohibiting etf'orts to 8eoo secret
...iting inf'orution into ~ Unitec States" prosecution in this case
was dec1j.ned. Although the principal subjects in the United States
wre interviewed, no information was obtained which would throw light
on the case" in addition to that a1ready secured through investigation.
In lIexico, efforts were made to secure information al¥i evidence
wtdch might be of use in possible prosecution of the case in the United
States. The principal value ot this investigation, however, ca- .trom
a stri.ctl,. 1I1telligence 8tandpoint in that through the investigation of
the subjects involved aM their associates, a 8egmnt of what ~
apparentq the Canmunist underground was uncovered.
Inasmuch &8 several of the letters apparentl,. referred to
Jacques Mornard whose case far the murder of Leon Trotsky was still
pending in the Mexican courts, it was necesS&r7 for SIS inquiries to
go back into the cirowastances surrouMing 'l'rotsq's murder. Trotsky
had arrived in .xico in 1937 as a refugee after having resided in
several European countries subsequent to his being exi1sd from Russia
following his complete break with Stalin. Trotsky" frequentq insiated
that his lire 8S in danger trOll the Sta.linist forces. ~.,. 24, 1940,
an unsuccessful attempt on h.1s life WB8 _de by a group of approximate1y
twnt7-five imiv1dua1s, allegedq led by Jose David Alfaro Siqueiroe,
the wn known Mexican ~ter. '!'his attack resulted in the killing
of Robert Sheldon Harte, Troteq's bOdyguard. On Auguat 20, 1940, TrotBky"
'8BS killed by a En who struck h1I1 with an alpine pickax.

!he 8rd8rer was apprehended GD 'tJle Ipot and admitted that he
was Ul1Dg a talle pal.Port in the D&88 ot Fr&Dk Jao.=.. He later caft
hi. D.- U Jaoque. ~rD&rd Vamendrasc11Sd or Jaoque. VorDarc1 Hi.
true Dame aDd identi t,. haft DeTer Hen eltabli8hed. ~rnard'. bacqroad
was lutt1oi.nt1y well oaYered up to preT8I1t prO'rin~ that he had aote4
on behalf ot the 8'taliJd.t croup. Be was 'tried tor .u-der and on ~oh 18.
1945. he -. ..tenoed to twent,. ~ar. i~r1IoDMUt. Following tAil
.entenoe. Oota'rlo Medellin (O.t..). 'Who bad been hie attorne.,. fr'oa the
b.ginniDg. appealed the oa.8 an May lT, 1944. !be 4eci110n ot the low.r
court ... upheld but on the b.-i. ot a' technicality I8del1iD (Oetee)
oontiDDed his effort. to obtain legal freedam tor MDrnard. lIS tmve.ti-
gatlon. duriDg the oour.e o~ the ~ to o..e 41.olo..d iDd1cation. that
at the ti- ot Trotlq'. sarder. there ftre probably rand. aTailable to
bribe .088 or the witDe..e. to perjure th 1Te. in raTOr ot MOrnard,
In sti,at1OD taile4, ho~, to 4110108e the louroe ot the.e tuDd. or
the .ouroe or the tuD~ u..d to pay Medellin (O.te.).
!he secr.t wrioting oo-..m1~tionl a- troa *%1co 'by Jacob
!pltein indioated that he wa. probably tnter..ted in the att-.ptl bein£
~de t4 ..cure MOraar4'. rel oa. of the noticeable tactl in thi.
case was that the tlow or ..cret writing o~~oa~lonl fro. the UDit.d
State. Whioh oarried in.truo~iODs and turDiahed information ot inter.lt
to the ~ous Inten4ed reoipi.at. 0...84 in .oT..ber. 1843. a date
'Which coincided 'with the traDIter of PaTel n&rin troa the Bon.t CcmlUlate
in Jew York ~o the SoTiet Emba8sy in l8x1co C1~.
SIS inTest1gat10~ in Mexico were carried beyaDd the .egret
wri t1Dg 8U.p~ts and their oontact. into What was 8Pparently the Co~st
undergro\md iIrt'olTiDg eral iDd1T1..1a with lq reoorda of' i8P0rtmt
Cou.D\mi.'t ao'tiTity _0 ..r. 80 longer _ber. of' 'the !:"-mf.'t Part.,.-
The 8OIt i8p0rtant of the.e indiTidual. aDOoTered bf inTe8't1ga't1OD in
)lenco were 'the f'ollftiDgz
Jo.e Darld Alfaro Sequeira. entered tJii. ca.e .. he be.
l1e",ed to be the iutcded addrellee-ot a .ecret writiDg :letter dated
January SO. 1945. tram Mexico City ~o Chile. He had ~ak8n retu~e ia
Chile to a"'old legal proleou~ion tor hil P8rtlc1pation tD ~he firl~
attempt ~o kill !rot8q. which relulted tD the d8ath of Sbeldoa. Bari.e.
Sequeirol ... ODe of the principal leader8 of the earl)' C~_~1It
~T_ii't in ..x1oo. He also6iated with Rosado Go..~ (~rczo)
and Ratael Carrillo, allo princ1pal 8ubjeots in the oa.e. Soque1ro.
and Gom8a (~r8nZo) were arr.l~ed together tor leading a .prote8t8
dem0D8trat1OD tD .tr~t of two n...papar W1l41Dgs in .z:1.oo City in jpril.
1939. and they were &110 both 1D~lTed 1D the tirlt attempt on Trotlty'l
Ute. Sequeir08 had beG expelled trom the Xez:ican C~8t Part.,.
prior ~o the first attack QB !rot8~. He ~ttedly r88a!Ded in cODtaot
~~::CR~T-
493

with the Party, however, aM claimed not to have changed his views.
Following his return to )leJd.co in October, 1943, his renewed contacts
with other subjects in this case were noted by SJS. In SUlJUEr, 1946,
Siqueiros open1.v rejoined t-he :a&exican Communist Party.
Ratael Carrillo was the principal contact o.f Jacob Epstein
during the-- latter's stay in Mexico. The meetings between these two
individuals wre always held claMestinel.v. Carrillo was also a
clandestine contact of other 8ubjects in the case and an associate
ot' Rosendo Gomez (Lorenzo). He was likewise a .mber of the Canmunist
Party as early as 1922.. and held important Party positions. He was
expelled in 1941.. but continued to adhere to Communist principles.
He .s employed by Vincent Lombardo Toledano on the publications "El
Popular" and 8Futuro" until July.. 1945.. after which he secured e!l;)loyment
wi th the Federal District Government.
~aaob Epstein was the subject of intensive investigation in
~x1co after m was identified as the writer of the letters from JMx1co
to the United St~tes. Epstein entered Mexico as a tourist in December, 1941)
and remined tJ1ere until. September, 1942. He returned again in )farah,
1943, and remained until August, 1944. Investigation disclosed that he
was in frequent alal¥iestine contact with Ratael Carrillo and Pavel Darin
following the latter t 8 transfer to the Soviet &nbasS1 in Mexico. He also
frequent~ met Octavio Medellin (Oates), Mornard's attarney.
Jose G6.rcia (Reyes) was not kn~ to be directly connected with
Epstein but he was a cJandestine contact of Pavel Klarin ar¥i Lev K.
Tarasov, the heads ot Russian espionage attached to the Soviet :&nbassy
in Mexico. He was also an associate of Margarita Nelkan and Rosendo
Gomez (Lorenzo), both at whom were principal subjects in the case.
Garcia Reyas claimed to be a Spanish citizen who entered illegally in
December, 1943. The confusing information which he furnished the
JExioan government obscured his backgrouM but he apparent~ legalized
his residen~ in Mexico thrOllgh the aid ot the Spanish CaDmuDist relief
organization, Jt>AR.i, which has been previously mentioned.
Rosendo Gomez d,orenzo) became connected with this case through
his clandesti~ contacts with Rafael Carrillo. He was born in the Canary
!slaMs and took up residence in Mexico in 1920" where he was one of the
leaders in the .founding of the Mexican CCXDmunist Party. He ~ implicated
with David A1.f"aro Siqueiros in storming the .xico City newspaper offices
in 1939 and in the .first &~tem.pt on 'l'ro~ky' 8 lli'e" in 1940. He was
expelled .from the )(8Xican COIn_lmJDist Party in 1941 f'or indiscipline. From
1942 to 1944, he 88 editor of the *xican news magazine, 8Tiempo8.
Following the disconti.nuation of the *:I:1co City office or Tass News
Agency in JanuarY'" 1946" Ganez (Lorenzo) be~ the head of' the Agenc1a
Noticios& Iat1.no Americana" & J:e'WS agency" that wu reportedly set up
with the approvalof' Constantin OwIansky 88 a 8coftrt1 agency" to distribute
~iE~~Er
494

Tass news. Investigation disclosed that Gomez (Lorenzo), in addition
to his clalxiestine contact8 with Rafael Carrillo, aDd bis association
with Alfaro Siqueiros was also in clandestine contact with Jose Garcia
(Reyes) and held frequent _etings with Octavio Medellin (~tes),
Kornard 's a ttomey, wan he saw on an average ot twice weekly.
~ve1 Panteleevich Klar~ entered the case when be DS found
to be in clandestine contact with Jacob Epstein. He was alBo discovered
to be in clandestine contact with Jose Garcia (Reyes). Klann bad
been in the Soviet service in New York from April, 1939, until November,
1943, with the Amtm-g Trading Corporation, the Soviet exhibit at the
New York World t s Fair aM finan,. as Vice-Cox.ul at the Soviet Consulate
General in lIew York CitY'- Information seCured in the D~e8tic Field
showed that K1arin as in frequent contact with Vassili )Ii Irha,.lovich
Zubil1n, who was 1mdoubted~ the bead of intelligence activity in the
Soviet ~8Y at Washington, D. C. In November, 1943, Darin 8S
transf.ered to ~:I:1co 'Where he beca- Second Secretary of. ~e Soviet
Embassy- He was last seen in Mexico on May 24, 1944, when he contacted
Jose Garcia (Reyes) in the comp8r17 of. Tarasov, 'Who 'WaS believed to be
the principal NKVD agent in tbe Soviet mnbassy.
Qctavio Medellin (OBtes) RS believed to be identical with the
.Oates8 mentioned in one of Jacob EPstein's 8ecret writing letters. At
that time EPstein requested information for Ostes' use regarding the
Trot8kyite lawyer, Albert Goldman, an .American attorne,. who assisted the
Trotskyite f'orces in pushing the prosecution against Jacques Mornard and
in er¥ieavoring to propagarnize the murder as the work of Stalin. Medellin
(Ostes) is a Mexican attorne,. of' C~t tendencies. He defended Jacques
Mornard during and after the latter's trial for Trotskyo's murder. He
was believed to be in complete charge of' Mornard's personal 'W8lfare as
well as acting as his legal counsel. He 'Was 1.n f'requent contact with
Roseooo Gomez (Lorenzo) and also acted as attorne,. for Jacob Epstein.
He was, in addition, an acquaintance of Hlmlberto Velez, the addressee
of' three of' the secret writing letters sent to )(e.xico.
.Ha~ne$ .~r: {Rvs-!cl was connected with this case when it was
discovered that he was in clandestine contact with Jose Garcia (Reyas)
aM ROS8000 Gomez (Lorenzo). Various reports iran sources or unknown
reliability had previousl,}'" been received to the effect that Keyar was the
head or t.be GPJ in Mexico. ~ is a Swiss architect who has resided in the
Soviet Union. He entered *xico in 1939 aM subeequentl,. became employed
by the Mexican goverment as an architect and designer. In addition to
'these contacts Meyer was active in H'98ral Canmun1st front organizations
in Mexico and ~ in frequent contact with the Russian Aubusy.

Maraarita Ne1ken ~n8bere.er de Paul _8 the addressee or one at
the secret writing communications aDd possibly the intended recipient or
tour other coanunications. She i8 a _ll-kn~ Spanish writer, lecturer
and. politician. She joined the Spanish C~1m1Jl18t Party in 1935 aIM! alter
the Spanish Civil .r went into exile, arri'9'1ng in Mexico 1n lovember,
19.39, as a rerugee. In Mexico she as very active in Spanish Ca1mlUnist
affairs and in arranging for the immigration of other Spanish Communists.
In November, 1942, she was expellad from the CClmlUnist Party of Spain
reportedl,. becauae of a d1sagreeMnt 'which she had with Spaniah C0mmuni8t
leaders. Investigation disclosed that thU expulsion apparently did not
change her beliefs in C~1st doctrine. The investigation alao showed
that Nelken .8 in contact with several important ComImmist including
Jose Garcia (Reyes), another 8ubject in this ca8e.
EnriQUe de ~ Ri~ (Lavin) -.8 brought into the case when h18
name was .t'urn1shed by Jacob ipetein in a secret writing letter as an
individua.l who could receive drafts or Iloney orders in amounts up to
$5,000. .1 telegraphic transfer of 83,700 was subsequently made to him
by ~len Levi Sj.m.CXl ot :New York City. De 1.08 Rios, 18 a Chilean businessD8D
who has resided in *xico since 1923. Investigation di8cloeed that he had
Dot been engaged in OpeD Communist activities in ~xico but. he -.8 found
to be 10 touch with at least one impO1"tant .mber of" the Mexican C~nist
Party aM to have been a good fr1end ot Ie... .1. Tarasav, tormer tust
Secretary of the Embassy. The investigation, however, failed to disclose
the disposition 01' the money sent to de ~s Rios by Helen Simon.
Amaro Rosal (D1az) was also mentioned in one ot the secret writing
letters as an 1Miv1dual who could receive drafta up to $S,,(XX). So tar as
is known no col8DUDication w&8 ever sent to Roeal by the New York 8ubjects
in this case. Investigation disclosed that he had a close connection with
Vincento Lanbardo ToIdano's D8W8paper -n Popula~ and p~sib~ with Ra.rael
Carrillo" Bpetein's principal contact. Rosal '8BB a Spanish re;t'agee who
sa active in ma~ Communist projects in *x1co. In December" 1941."
he left .x1.co to return to 81rope trca where he subsequently 8ent aeftral
C<XmImn1st-line x.wapaper articles tor publication 1D -11 Popularlt.
Lev A.).~mrOY1ch Taras OT. former First Secretary ot tl8 Soviet
&nbassy, am alleged bead of the NKVD in Mexico, was the 888ociate of
Pavel Klarin with whom c]aMest~ contacts were made with Jose Garcia
(Reyes). Taraaov arrived in )lexico in Kay" 1943, as the first orficial
sent to make arrange-nt8 for ttMt reopening of ~ Sovie~ &nbus)". Be
returned to the Soviet Union in December, 191.1.. Information developed
indicated that Tarasov .. a tr181Mi of Imo1que de ~s Rios, who ..
11Xi1cated by Ip8tein &8 an iMividual who could receive .f'uDd8.
i
iorR9 Abil1o Vivo 88 the addr~~ 01' one or the secret writing
1ettere aM 88 a180 Entiooed in ~ of' ~tein's c~1D"cati0D8. Vivo,
a Cuban C~ln18t exile, bas resided in *x1co intermediately over a period
or s8'98ral years where be bas been active in Canmuni8t Etters. In 1929
498

and 1930, be was reportedly the head of the Caribbean Bureau or the
Internotiona1 Red Aid. He taught at the National Unive~~xiCO b I::::: ::':1 enrolled during 1943 and 1944. 7C
was known to be a contact or Ra!ae1 Carri 0 b7C
a nzo).
(6.) ~et DiDl~~ic .ct~~it,~. The C~1I!I1nist
Movement in :Uenco derived considerable inspiration from 'the appoiD'tD8nt
of Constantin O1Unsky as t~ First Soviet Ambassador in Mexico .foUowing
the re-establ18bMnt of relations in Spring, 1943. oumanak,- was one of the
most ca~ble Soviet di"1.omatB and his personal prestige lent a great deal
or glamour to the Sovi.:t Ki8sion in Mexico. According to Bureau and SIB
sources, Lev A. Tar&8\".~ -.s the principal BKVD agent attached to the Soviet
&nbasSY in )lexico from }lay, 1943, until the 1a'tter part ot 1944, when he
was reputed~ replaced by Gregori Kasparov. The latter was rinal1)1' re-
cal1sd to Bassia leaving Ivan Kwaarian as the principal NKVD agent in the
Embassy.
~l_-

the attitude ot Vdorln, except that he had reportedly acted &8 Secretary
to Ouman8ky tor several 78&rs. Information was also 1acJd.ng regarding the
backgrour¥l ot Lev I. froyni tBky and Lieutenant Colonel Sergei Savin
Lazarov 1I88181ch as they bad arrived in *xico on1:y a few weeks prior
to the disaster. It bas been pointed out as worthy ot note that, in 8p1te
of' public allegation8 to the conw&r7, the rema.1n1ng officials ot ~e
Soviet r.nbassy in .rico did not 1D8tigate an active 1nftstigation in
an effort to deterld.~ the cause ot ~ &1rplaM crash.
1'1e other 8Ost 1aportant incident in oomection with Soviet
diplOEtic activities in :Mexico '88S tJ)8 detection ot KiriU AlexeevJ
the .A.8s1stant CoD1D8rcial AttaCM o.t the RU8s1an &Dbassy, while he was
under orders to return to the Soviet Union. Alexeev and his f'ami~ bad
avoided being returned to the SO'Y18t Union .tro. )Iex1co in Fall" 1946.
In December of that year he and his faa11y detected and fled to the United
States eftntualq reacb1.ng Hew York Cit7. Al8Dev was subsequently put in
touch with the &rea. He W8 \m&ble to furniSh Imlch 1nt'ormation of
intelligence value but he did verif'y auoh o.t tJ1e material which bad been
developed by S18 Agents. He as a180 able to SUPPl,y so- information ot
1nt.erest regarding the internal f'unctioDing o.f the So'rlet Embaa87 in ~co
City. When A.lexeev was first put in contact with the Bureau in New York
C1 t7 J SIS prepared a liat o.t questioaa to be used in hi8 interrogation
based upon previous 1nnstigation of Soviet diplomatic activities in *xico.
The results o.t these interrogations wre sub8equentl7 .fumiahed to the
interested branches of the Government. (64-211-221; 100-341720)
As Soviet and Communist activities in M8xico constituted a
great potential darJg8r to the lecurit,- ot the United Statel, SIB repre-
eentatiT8e to<*: special ~iD8 to develop adequate 1Dfarmnts in these
tie1d8. By the time the SIB progre.m in Mexico w&8 terminated, the
Bureau's .Agents had developed uple sources or information in the i8PQrtant
centers ot Colllft1nist activity aM wre able to keep the Bureau am the
State Department advi8ed of all Dew devel0J8nts in tb18 field.
8. Security K~sures Taken in ~xico Based upon Infor-
mation Supplied by The Bunau.
Operations of the SIB D1v1.810n in .:I:1co bad a marked effect
upon the security .asures undertaken by the governent officials of that
country. A8 th, result of adequate SIS coverage throughout *x1co aM
as the result of extensive contacts aM informant coverage. b Bureau's
representatives in M8x1co City were able to d1rect~ influence the
adoption of ?1ecess&ry aeasures with regard to Ax18 nationals in Ve:x1oowho were deeled to be a scarce of danger. '
The .x1caD Espionage !.-w, which beo.- ettect-in on November 14,
1941, W88 ado~.ted with but 81nor aodif'icatioD8 troa a rroposed draft sub-
498

mi.tted by one of the Bureau's representatives. Later (11, there as
8ubadtted to the *x1can Governmant a proposed draft of £. Sabotage law.
With a v1sw to the eventualit,. ot _xico's entering the sr
as an au,. ot the United States. SIS representatives, through their
contacts within high <kIvernment circles in Mexico, uMerto~ to ]aT the
MceS8&r7 gr~wark in advance ot such a contingency". Thus, when the Pres-
ident of JMxico requested a declaration of 'Dr against the AxiS Powers in
Ma,., 1942, the Mexican Government bad alread,. set into operation a series
of decrees and orders designed to af'ford internal security during tiDe ot
war. A decree effective Karch 4. 1942, required all foreigners resident
in 1Iex1co to register with the Department of Gobernacion. In December,
1941. a Presidential Order caUsd for the removal ot Axis nationa1s !rom
coastal aM border regions to the interior of the countr,.. .A. Presidential
Decree ot JulY' 26. 1942, ordered the .torfeitv8 ot citizenship of naturalized
Dati ws of Axis countries who might be acting against the interests ot
tlle Republic. (P64-400J-l6; 64-2704-88.212..345)
The most i~ortant phase of SIS activity in .%1co resulted in
the apprehension by .xican authorities of a DuJi)er of espionage agents
shortl.v after ~xico entered the mr. Iilch credit for these apprehensions
may be gi Ten the Bureau, inaalmlch as the Mexican Government acted upon
information and evidence which 8S supplied b7 the SIS representatiw
in )Mxi.co City. Among those apprehended aM sent out of' Jexico wre the
following Germans: Werner Barke" Ewald Bork, Joseph Ruellen Hermkes"
WiJlle1m HesselJDann" Federico Hey" George Nicolaus" and Pablo Rubach" all
known espionage agents or active in the Geman penetration or Kex1co.
Upm information supplied by the SIB Division to Mexican Gov-
ermnent officials, a DUmber of. Axis aJ¥i other nationals -were arrested aM
placed in conf.1ne~nt at Perote, Veracruz. Included with this group of
interx.es was Carloe Rete~dorf., Jr., a naturalized *xican of' Geman
birth who operated a clandestine radio station in ~xico which was
'rl-.;'i~ by tlE German espionage agents, George Nico1aus aoo Baron von
Schlebrugge, in relaying intelligence information tran ~xico to the
Uni ted States aM South America.
Another internment was that of' Guido Otto Koebius" a Mexican
national" son of' a German-Jew and a Mexican woman. lIoebius owned a pri-
vate radio station, KOZIK, located at Pino Suarez No. 28" ~terrey"
Mexico" and held a controlling interest in the Monterrey commercial radio
station mR. Moebius disseminated considerable Nazi prop&gaMa" aM was
a frequent visitor to t1».1 Geman J4inister in Mexico City prior to ](Sxico's
dec1aration of' war against GermaDY'" and it was reliably reported that
IIoebius collaborated with Ge~n espionage agents. (~-I.OO)-l6J 64-27~-A-lB7, 1103) .
Another instance wherein action W8 taken by ~can authorities
as a direct result of intorm.tion supplied b1' the 818 Division 88 the
499

interD8nt at Perot. of' Gerardo (Gerhard) lMimpe1. He~lw88 tM
ex-German Consul ot C~2h1-,ahua, ar¥i 88 known to have USOC.1 ated closely
with other impcr'tant Germana in )Iex1co. H~ver, be sa released in the
winter of' 1942 alx! retur..-d to Ch1huahu. (64-4CX1J-l6).
A180 interned at Perote wa8 Baron Harold YOn ~penhe1m, alias
Harry Hartwell, who was arrested by J8:xican police on June 10, 1942.
Oppenheim 18 a German who entered ~x1.co in Septe8b8r, 1940, Iran ~
United States where he bad operated the .Chez Barr,- in New York City.
He sang oftr the Mexican radio stations Xa' and DFX during 1941 and 1942,
and it -.a reported that he was able to transad.t German secret service in-
structions in connection with his emplO,-Ent as a radio singer. ~enhe1m
ASsociated with several ~rman agents am was reported to haw been a
lia1son agent between the EDA.P aM 'the Spani8h Falange in JMx1co. He
was also known to associate with tM German espionage suspects, Ruth Pits
aM Hilda Kruger, actresses of international renown. C64-27Q4-E-80;
64-2 '7<W. -54Il ; 64 -2 ~ -A -6.56 ; 64-2 704 -.A -16 ~ ).
Criminal Matters-
t.
The &ccomp118lDent8 at SIS in Mexico in the field of cr1Jl1nal
work wre excellent. ~rating with very limited personnel, SIS in
Mexico during the ten-month period, Jul7 1945, to April, 19/.6, located
thirteen e8Caped pr18os.rs of war, 8ixt7-8eftn deserter fugitives, aM
fort,.-three Selective Service fugitives. In addition to these tugiti'Y88,
518 barxiled a large DlJli)er or crill1nal cases representing a large varlet,.
of claas1.tications. Numerous notorious hocxll~ from tb8 United States
wnt to IExico .from time to tilE and their activities were provided ex-
tensi ve e~lD11llent to the Legal Attache. There ~ a certain amount of
investigation in the attar entitled 8Tbe Reactivation of the Capone Ga~,
and inq,u1r1es were made in the WiMsor Jewel Theft Case. Innumerable
investigations were COMucted in Selecti" Service, Deserter, .TA and
*V'rA matters. As & result of excellent contacts, the off:r-.e or the Isgal
Attache in *.x1co City trequentl7 performed out8taMing work. Mexico Cit,.
continuousl3' carried & larger nwJi)8r of peMing criminal cases than
any otber SIS Office. (64-4984-221).
b1D
The Bureau 's l.ia1a on with .xican Police o.f.ficials was
excellent aM by aeans o.f thia friendly relationship, it sa possible
to bring to j~~ce ZAD7' badl1" -.nted tugiU'98s. Because the extradition
treaties in .tarce between the ~ted States aM *x1co are baaed
principall,. on a treat,. signed in 1.899, t.h8 list o.f extraditable o.f-
tenses set forth in the treaties dces Dot include -11'1' ~tant cnmnal
ottenses over which the Bmoeau has ',m-isdiction. Thus, tugiti'Y88 who ba'98
cOllll1tted .~ or 'these offenses cannot be!~~:~~ ~ ~~~R11able to the UnitedI::::~::~~~~tes authorities b7 Mana o.t extradition.
the Civil Attache ~ able to arrange .tor tm arrest ot
wanted tug tift by .noan autboritie8 aIKi his intor81. expulsion .troa
500

*xico at a point where FBI Agents could 1_diatelT take b1I1 into
custody.
(1.) *x1con Fudtive Located. Through its
11&1800" 8rs was inst~nta1in IllAHng Jhxican Police ot'tic1.als 8>r8
receptive and alert to the possibilities of ~ternational.p'l1ce
cooperation. QIe o.r the instances which br6~t h~ to tAem t.be
advantage o.r cooperation was the cue of BaDOn Riverall RCEay. In th18
case ~ Bureau 'AS able to assi8t. the Mexican authorities. Ramon Riverall
Romay 88 a Mexican citizen who was 'Ranted &8 a tugitift tr~ .xico
to face charges o.r ha'V'ing cO8ll1tted a feloD)" in that country. With the
&88i8tanc8 ot the Royal Canadian Kmmted Pol1ce" Riftrall Romay as
located in Canada. .&a a direct result ot ~ Bureau' s liaison work
with the J8xioan aM Ca~ian otficials, the Kex1cana ere able to
locate this fugitive. (62-53897).
(2.) .Little AnRelo" Scema. ~t ot 23 _lUbers
of a .policy racket- gang indicated at Clevelar¥i, Cilio, on April 26,
1939, only .Little Angelo. Scerria re_ined at large. Por aver three
)'ears the Bureau pressed a man hunt of international proportions under
the Federal Un1awtul Plight to Avoid Prosecution statute so that
-Little Angelo. wOllld be retur.-d to the local authorities tM" prosecution
in C1sveland~ *'11 C0'98rs were placed on relatives ot Scerria who
resided in IT.aJ,J. Inquiries ..re directed to police authorities in BDg1and,
Me:x1co, Switzerland, Portugal aI¥i Brazil, without 8ucceSS. Angelo's wife,
members ot b1s ram'i1y aDd other ClevelaM hocxilums ade En,. derogatory
remrks c~cerning the mI's inability to locate the crafty fugitive,
aoo openly boasted that the G-men would n8'Y8r catch up with Scerria.
ThrQ1gi1 a surveillance or 'the elaborate ~co City apartmentotaClewland
hoodlum and f:rieJxi of S~rr1a, an individual .eting the latter's descrip-
tion W88 observed. It ws found that this person worked in a w1~ shop in
Kexico C1t7. .An SIS Agent T18ited this establishment wxler the pretext
ot purchasing som liquor arxl recognized a salee18n in the store as being
the long sought :tugitiw.
Through contacts 01' the FBI in Mexican GoverrlBent ciro1ee,
Scerria -.8 apprehemed on February 17, 1943 aDd deported to the United
States as an 1mdes1rable resident. He 88 eventuall7 ret1D'ned to Clewlud
where he pleaded guilty to the Ohio State charge of' extortion by threats
01' violence and received a sentence of' f:ra o~ t.o 1'ive years. (88-883).
(3.) Charles An28lo Colombo. Jr. Thi8 1nd1'Y1dua1
_8 a 25 18V oId draft dodger who wu a _mber of the ROTC at the
Uni TBrs1 ty at Ill1n0i8 1n 1938-1940.
With tJ1e permission of b18 draft boar', he wnt to ~co C1t,. to
atteM 8UaMr 8chool aM refused to return to the United States despite
senral official notices !:rom b18 local Select1w Service Board. Colombo
smf£T
501

married a native *x1can girl and deD8ooed that his draft board
reclass1f7 him fica lA on the groundS of his 8rriage" am because
be had been offered a position as iDwstigator with the priority
rating board through the American Imb8Bsy in Max1co" D. F. The
Bureau's representativee at Me.xico quicklY' determined that although
Colombo had applied for such a job" be had not been accepted. ID the
meantime tbe United States AttorneY' at St. Louis authorized prosecution
of ColaDbo. Through the Bureau's contacts with the Mexican DepartMnt or
Qooberaacion" Col~bo ~ deported from lexico as an undes1r~ble alien aM
was arrested by auoe&u agent8 as he cros8ed the border at Laredo" Texas.
He Jater received a four )'ear prison sentence by a Federal Court in St.
wuis. (25-l3846J). .
(4.) *rrill Albert Coff'ey. This 1ndividual'R8
reported delinquent b7 a local draf't board in Chicago f'm- f'ailmoe to
report f'or itxiuction on Maret 21, 1941. On November 13, 1941 a co~la1nt
was .ti.l8d cbar~ j.1g b1JD nth a dratt violation and the 8rrant ~ returned
non est, 8Bk1ng him a f'ugitive. ~1r1e8 concerning the subject in
the United State. indicated that be aspired to be a bl1ll f'ighter and fre-
quented knOWll haunts of' atadors aM 88 a friend of' Sydney Franklin,
American t.1l1.tighter who enjoyed great SUCceS8 in Spain where he 8S
known as the "BroOklyn Banbehell."
S15 Agents aade inquirie8 in Mexico among the bull tighting
ele_nt and succeed in locating Corte,.. He was pointed ~t to ~can
Gove~nt officials and appreheIKied by them on ~tober 14, 1943. Coffe,.
'waS delivered by the ~xican authorities to Bureau Agents at IAredo,
Texas on ~tober 211 194.3, aDd waiftd removal Fooeedings when arraigned
before the United. States Ccadaaioner there.
In December, 1943, Co.tt.,... released by the United States
Attorney at Chicago to t18 Military Police to be court-martialed tor
desertion .from the United States Am,- 1D 1937. (25-28997)
(s.) Q-8ord RLohard Heiden. In Karch. 1943, this
iMividual skipped from b18 employment nth the Ford Motor C~pany at
Detroit aoo proceeded to .%100 tor the purp~e ot e'98ding his Selectiw
Service obl1gatio~. In letters to persona in the United States m
claimed to haft appUed .tor .:xioan ci ti.8enahip tor the so18 pwpose ot
staying out of the ArIII7, am to haw boasted that no OM cou]ll put him
in the ArIII7 iD88D1ch u he bad been around .n~ 80 tJJat nothing could
be put over on h1a. Heiden 8180 stated that - ~ Fo~bly 1088 his
American citizenship Which didn't mean enongh .to blow ~ to bell,.
aM that Mexico .beats the United States a hundred ti88s.. Heiden 88
~

bZ
'~'c
~ m.. Qm. ~ A§SIGN!.GNT
l)leXico City 4/43 - 12/43 umercowr
Mexico (Travel)9/43 - 4/44 Undercowr
Mexico City 10/43 - 3145 Undercover
*,xico City 1/4.3 - s/43 Legal Attache
Guadalajara i/42 - 12/42 Undercover
*,xico City 5/43 - 12/43 Official
Jexico (Trawl)12/41 - 11/43 Ul¥iercover
MOnterrey 4/43 - 2/44 Undercover
Hermosillo 12/41 - 5/42 Umercover
Chihuahua 12/41 - 8/43 Ut¥iercover
~xico CitY' 8/43 - 12/44 Legal Attache
*x1co CitY' 10/43 - 6/46 Umercover
Vazatlan 7/43 - 10/43 Undercover
Tampico 9141 - 8/42 Undercover
Mexico City 2/4.3 - 6/43 atticial
lexico City 5/43 - 7/44 Undercover
J8xico CitY' 2/44 - 3/44 UMercover
Mexico City 12/42 - 8/43 Undercover
*r1da 7/42 - 2/43 Undercover
Acapulco 7/42 - 5/43 Undercover
Baja California (Travel)12/42 - 6/43 Undercover
Mexico CitY' 3/43 - S/43 Undercover
)lexico City 5/44 - 10/45 Utxiercover
~x1co City 4/47 - 6/47 Official
Mexico City 7/44 - 3/46 Undercover
UBx1co City S/42 - 6/44 Undercover
Mexico CitY' 3/46 - 4/46 Official
Mexico City 12/45 - 11/47 Official
Mexico City 7/46 - 4/47 Undercarer
Jenco City S/43 - 10/44 Undercover
:Mexico City 9/42 - 9/43 Undercover
Mexico City 1/42 - 7/42 Undercover
Jlazatlan 6/41 - 1/42 Ur¥iercover
Mexico CitY' 6/46 to Present Legal Attache
Acapulco 9/41 - S/42 Undercover
Maxico City 7/46 - 4/47 Undercover
Mexico City 4/44 - 3/45 Undercover
*x1co Cit1 9/43 - 6/44 Undercover
~co City 2/43 - 9/43 Official
~co City 7/44 - 7/45 Urxiercover
*,xico City 2/43 - 11/44 Of'ficial
Mexico Ci t1 12/42 - 10/45 Official
*%1co City S/43 - U/ 44 Undercover
J8Zatlan 3/43 - 9/43 undercover
*xico City 2/41 - 9/43 Undercover
Kexic:.o City 11/44 - 6/46 Isgal Attache
Guadalajara 11/42 - 10/43 undercover
Veracruz 10/42 - 5/43 Utxlercover
TorreOD 12/41 - 7/42 Ur¥iercover
-S~Ft~!'.
 .fLQt\.

~
64-2701.-' French Agents in .%100
64~?04-a Bri t1eh Agents in Mexico
6it-2704-H American .Agents in ~co
Ro\DD8.n1an Agenu in *.xico
 64-2?04-J
64-27Oi.-L SWedish Agents in *x1co
64-2~-U Austrian Agents in lIexico
General File on Propagalda in ~co
 64-2705
64-2705~
 Ge~n Propagarda in *xico
64-2?OS-B
 Japanese Propagama in Kexico
61.-2705-<:
 It.al1an Propagal¥i& in *xico
64-2705-D
 Canmmist Propagarxla in ~oo
64-2705-E Spanish Propagaooa in ~co
64-2705-'
 French PropagalKia in ~co
64-27 05-G
Bri t1ah PropagarKia in Kexico
64-27Q5-H American Propaganda in Jenco
64-27(1)
 ~n8ral Pile on Foreign Penetration in J8xico
64 -27~-A.
 German Penet1'8tioD in .xico
64-27<X>-B Japanese PenetratiCX1 in Jlexico
64-27~
 Italian Penetration in ~oo
6I.-2~D COaImm1st Penetration in .xico
64-27~
 Spanish Penetration in .xico
~-2706-' French Penetration in Mexico
64-27(17 Sabotage in *xioo
64-2707-A
 ~rman Sabotage in Mexico
64-27<Y1-C
 ltaUan Sabotage in .xico
64-2700
 General F11B on Foreign Residents in .%100
501-

64-2?OO-A
 Oerman Residents in ~co
64-2?OO-B Japar.se Residents in ~co
64-27(8-0
 Italian Re8idents in JAexico
64-2700-D Cml.1n~8t Residents in MeXico
6I.-27~E
 Spanish Residents in *x1.co
64-2708-1 French Residents in Mexico
64-2'l~
 Br1. tish Residents in *x1co
64-2708-H American Residents in Mexico
64~709-I Hungarian Residents in ~co
64-2700-J
 Roumanian Residents in .xico
64-2~I Swiss Residents in Jex1co
64-2700-L Swedish Residents in J8x1.co
64-2?OO-M P9rtuguese Residents in Mexico
64-2700-N
 Austrian Besidents in Yexico
64-27~
 Cbapultepec ~o Intercepts
61.-2710 .il1tary and Naval J8tters in *x1co
61.-2711
 General Fl1a on For81gn Fi.1'II8 in Mexico
64-27l1-A
 Gel'lllan rirIE in Mexico
64-2711-B Japanese Firms in .x1co
64-27U-C
 Italian Fir- in Kanco
64-27l1-D
 CCDDnmist F11'118 in Mexico
64-2711-£ Spanish P11'II8 in .nco
64-2'n1-r J'rench P'1.rms in .x1co
64-27ll-H AEr1can Firm in ~co
64-2?ll-L Swedish ~ in Mexico
64-2712
 ~D8~ FiJs on Radio Stat1O118 111 .:z:1.co
s~
 - .r..-nR-

Geraan Radio Stations in )lexica
 64-2712...
..
 64-,,7l2-B Japanese Badio Stations in }8.xico
Italian Radio Stations in )fex1c:o
 64-2712-C
64-27l2-D Communist Radio Stations in ~co
64-2712-1' PreDch Radio Stations in )lexico
64-2?l2-H American Radio stations in ~co
(8neral File on Su"t8arine £.ctivitiee Near .xico
 64-2714
64-2714-A German SubD&r1M Activities Near ~co
64-2?l4-B Japanese Subllarine Activities Near .xico
Teleph~ Surveillances iD JMnco
 64-27lS
64-.2716 P1ant Surveys in ~co
64-200-221 Ccmmmist Kovement in *x1co
64~11-221 Soviet Diplomatic Activities in Mexico
100-72924 The German C~_~~tn1Bt Party in KeD-co. This.file covers
general Oerman COIIIIm1ni8t activities in Latin America.
100-.345.359 Yug~lav DiplC8l&tic Acti'ritie8 in .nco
lOS-5169
 Pol18h Diploma~c J.ct1rlt1es in Mexico
100-163705
CClDDlUDut Part7 of Spa.iJ1 - J>elegat1on .iJ1 *.xico.
'l'h18 file also contains the reports on the
Un1t1ed SociAlist Party of Catalonia and the
CQDml1J1jst Party of Buzkad1.
61.-23410 Federation of Organisation to J.1d European Refugees (POARE)
aM the Fund .tor Economic Aid to Anti-Fascist European
R8.t'I1geea (FAERAB)
97-2684 Callmission to Aid J1mta Suprema of National Union, a)so known
as the Spanish lational Un",
:Felipe Mwloz ArcoDada, Spanish C~iSt Secret Writing Case
6.s-38149
64-2261~ La Voz de Mexico, ~CaD CaDDIlDiat Party Newspaper
100..345920 .ut1'8do Hers Bluaentbal, alleged Soviet Agent
509

65-43.30
 The wAlto Case" involving CaDmunist secret writi~
caDmunications known in the d~8tic field as the IJdia
Altschuler et al., ana in SIB as Jose David Alfaro
Siqueiros et ale The case pertains to the Communist
underground.
100-729-24
 The Free Germ.&rf1' Movement
The Confederation of 'Workers of }Iexico. This file also
contain8 the report on the Confederation of ~orkers or t.tin
jznerica.
~-24773
Vicente ~bardo Toledano
 100-'.326
K1r111 Alexeev. This file contains statements made b7 former
Soviet Assistant Commercial AttaChe who defected in 1946.
100- .'3417 20
1.00- 34l S 61-221
x.bor CoMitions in lIexLco
65-16273
 1iencan 1!icroscop1c IK>t case known under the code name
"Clog Case/'
65-17793
 German &1crodot ~tem
64-309-221
 smuggling Activities in Mexico
b. Administrative Files.
64-4532
 Office Adm1nistrat1ve File ~ftring Civil Attache 's O£t1ce~
~co Ci t,.
Office Monthl7 Reports from Civil Attache 's Office J
&X1co City-
64-4981.-221
64-4633
 L1. ving Cond1 tiCXJ8 in Mexico
67-38367'
 Office PeraOnDel File for Civil Attadle's atfic., Mexico CiV,
filed .uDder caption -~basS)", :Wexico City, },lenco. - The
inspection reports for this office are filed separately.
64-4123-221
 Informant file tor ~:x1co.
64 - 29 83 .3- 22l
Police Matters in Kexico
c. ~onographs
-Totalitarian Acti"ities in ~co Todq.8 Generu monograph cov~ring
various phases ot 515 investigations in liexico, pnb1i8hed Sept_ber 1942,
486 pages.
.German FBpionage: in Latin A1D. rica.. General ~nograph coftring Germm
espionage activities in Tar10UB countries of Latin America. Pages 22
to 47 pertain to Ge~ e8pionage in Mexico. Published JuDe 1946.
510

ICommunism in Latin America.1 General monograph COTering Communi..
on a hemispheric basis. Page 32 pertains to the Commgnist Party of
Mexico. This monograph a110 contains oonl1derable information on
Vicente Lombardo Toledano aDd the Confederation of Latin American
Workers. Published January. 1946.
"The Japanese in Latin America.- General monogra~~ coTering Japane8e
activities in Latin Am~rlca. Pages 43 to 55 refers to Mexico. Printed
November, 1945.
"SIS Office, Mexico D. ~.. Photolraphl of the facilities of the
Civil Attache's Office in Mexico.
.Oo:u:'lUn1 f'm - Labor in Kt ~co! Unpublished monograph on Communism and
labor in Mexico. Jiied in Bureau Library, J-597.
T
511

.J:tCR£t
~.
IlICARAGUA
1. m Facilities and Ob.iectim
2.
*-.1 or Accomol1shBent!
a. Control of Axis Natima:!!-
(1.) .~s~~ati~ ~~ Axis Natiooa!!. One of themost important projects of SIB representatives in Nicaragua .. in the
investigation and securing of information concerning 'Various Axis nationals
in that countr,-. J. considerable amount of this tJpe of 1D.f'ormtion 88
secured and was correlated by the Bureau representative working with the
Nicaraguan Government and by the Bureau representative attached to tb8
.American m.ba8sy. 00 the basis 01' these 1nvestigatioD8, lists of possible
subjects tor deporatioD to the Unit~ States tor the safety of Nicaragua
and the Allied Rations wre drawn up a,'1d submitted to the Nicaraguan
Government and the proper United Statu authorities. (64-2404-A-37 aM 331,
64-24 C8-29 , 100-2-3810)
512
~~~

It was f~ that with respect to iMividuall deported to the
United States for iDterllDent" derogatory iDform.tioD had been .f'urD:18hed by
Bureau representatives on tb8 majority of t.hem.. ~e hundred -.nd one
individuals were deported from Nicaragua during 1942 and 1943. A few
of the most important of these 1ndividua1B -rea
Fritz Fuchs
Erich Puschendort
Max Wi1Jns
Julio Balcke
E~sto Hammer
Kurt MaJer
Hans Winy Riede 1
a:udol.t Eyl
Guillermo Pentzke
The large quantities ot canmrcial and financial information
gathered and submitted by the Bureau's representatives.. ot considerable
value to the equitable functioning ot the Un1 ted State. Proc)a1med List
of' Certain Blocked Nationals. The following individua1B and firms wre
among those placed on the List partial~ as a result ot infor1l8tion furnished
by the .~IS Agents I
Otto Arnold
~orr1s Pataky
Fritz Morlock
Os c ar Wi1Dll
Julio C. Bahlcke
Emesto Hammr
Guillermo Huper
Pa1azio y Cia., Ltda.
(64-2400-A-.3" 64-2200-A-4S" 64-2404-A-.38" 64-2400-.361" 64-1~-A.-2l9"
64-2401-78)
(2.) Qontrol Measures Adopted with S~ Aid.. In1'omation
secured by 8IS representatives and the cooperation of Bureau personnel with
the Nicaraguan Government were to sane extent instrumental in tJ1e passinR ot
the Emergency laws by the Nicaraguan Congress in April of 1942. (64-2401-87)
In )laY', 1942, the Nicaraguan Gove~ent passed a law providing
for the registration ot aliens and ..king it _ndatory tar aliens, whether
enelU)" aliens or not, to carry a -cedulj"book with them at aU times. The
la", also contained a provision providing a heavy penaltY' tor tailing to
register or tor perj11r'Y'. The passage of this law was of considerable
assistance to ~ Bicaraguan Government in maintains control ot al1ens
in the Repllblic, and it of course produced the necessarY' valuable records
from which the United States Govenunent could gather much valuable infor-
mation. Ita passage 88 aided and assisted bY' the Bureau representatin
who was working with the Nicaraguan Goverw.nt at tA1&t. time (64-2400-25)
Two months later the Nicaraguan GovernJEnt }:a8sed a 1&... prohibiting
exportation aM importation of' C1n-renc'1' and coins a1J.1ted in tbe United Staw.
This laW' gave the Nicaraguans considerable control over the mavement of Axis
.t'unds within the country', aM the Bureau representative previous~ Mntioned
was of considerable assistance in baTing the law passed.
~Y~f

~::Sf81:Et.
Ckle procedure suggested by the Bureau's representative, am
subsequent17 adopted by tJie Nicaraguan Government, was tJie requirement
tJ1at before any action be taken in regard to issuing exit v18e.e, Ule
passports of all American citizens were to be verified by tJie American
Embassy. ThU p!"ocedure was of oonsiderab1e value to the th1ted States
and was stated to be such by the American Ambassador in Ilicaragua.
(100-16567-1)
b.
Ql December 16, 1944 Nicaragua dip1om tical17 recognized Soviet
Russia. 515 investigations had previously 1.'1dicated tl1a.t tJ11s 'Would happen.
Atte!!Ipts to orgar.ize a Co:m:rmist Party in Nicara~9 had met witJ1 opposition
from the government autJ1orities during the previOlls several years. Individuals
charged witJ1 Commu.'118t activities were irJPriaoned or exiled b:,~ President
Somoza. It was developed t.'lrough S15 investigations tlJat tJ1e CODmmist
elements in Nicaragua had received support C1d encouragement from the CODII!U:l1st
Party in Costa R1.ca. President ~a relaxed his opposition to tJ1e organ-
ization, and in 1944, g1"Y1J11 tacit consent to the organizing of the Socialist
Partyof' Nicaragua. This party 'WaS f'o~d 'Ulrough the efforts of' individuals
formerly identified with ComIIIlnist activities. Investigations of sre
personnel 1micated that &esident Somozals policy of' allowing tJ1e oreanization
or political am labor grwps was made as a M tter of pol1 tical expediency
f'ollowing threats to 'tJ1e security of his adm1ni8tration during the political
dis'bJrbances which occurred 1n July, 1944.
i
A1 thOOgb tbe activities ot the Partido Soc1alis ta de Nicaragua,
the alleged Cn_1f\"-"t Party in 11icaragua, were declared illegal b)" the
I~icaraguan Government in November, 1944, th18 same faction, in t11e first
ha1.t' ot 1945, energetically and c1aMest1nely exteIned its scope of activities.
In August, 1945, th18 same Party" publ1c17 opposed tbe reelection of President
SO:DOza a1Jd advocated that t11e Nicaraguan I&SS88 'b1rn from tilt.; traditional
political parties and struggle for tbe economic and social improvement
ot their country. Investigations ~ 518 personnel re.t"lected that the Partido
Socla1ista de Nioaraglla played a dominant role in the growtJl of tbe 1abor
1Uov~nt in Nicaragua and thrOllgh t11e Federation de 'l'rabajadores de Managua
(The Workers' Federation of IfBtJagua), which it reputedly contzoUed, it
exercised considerable influence over the Nicaraguan 1aboring element.
Ckl August 19, 1945, however, several COJ81Unist leaders were
deported .t'r~ tJ1e C~'t.1-y am inforDBtion 'WaS developed tbat tbe strength
and 1r-"'luence on 1abor and. political issues as consid..ably weakened.
Political Jlatters
f
o.
President Anastasio SaIOza of Nicaragua was another of 'Ule dictators
who ruled witJl an iron band in Central America, However, Presidmt Somoza
wa~ cooperative with ~eau representatives. Inaslmlch as he was in control
of tbe 8rIJY' and 'Ule political arena, tbere 'DS Tir'tAlally no effective
opposition in tl1e CQ!D't1"yo. The most 8eri~ opponent.8 to h1a regime were
located ~te1de the ~tt-y &8 8rll88 in neighboring nations. .SIS investi-
514

gations re£lected that the anti-S~oza £orces, ~ 1945, bad become more
active 'bn in the past. Intercepted correspondence between General
lliiliano Chamorro and Juan B. Saeasa, both exiled £ormer Pr-esidents of
Nicaragua, indicated possible concurrent. plans designed to cause the defeat
o£ President Samoza. Chamorro, who was rresident as ear~ as 1916 and who
was exiled to Mexico City in the middle 1930's" and Sacasa." who made
Bever~ Hills, Cal1.t'ornia, his home" were in contact as to ways and .ans
to eject tbemselV8s"once mare,,8ucoess!ully into Nicaraguan political lite.
The Bureau through ita various contacts and sources of information
obte.ined adequate coverage or t.be polit.ical 81 tuation in N1.caragua and
was thtis able to keep appropriate Government agencies advised of the latest
developments. Because some of' the more prominent opposition leaders were
exiled from Nicaragua t.o neighboring countries. the Bureau's facilities
IISde it possible t.o keep abreast ot Nicaraguan politics throughout Central
Amer1.ca. particularly in Mexico and in Costa Rica. This coordination of'
1.nformtion copcerni.ng H1.caragua. obtained in tJ1e several countries. -.s
very valuable in presenting a co~osite picture of the various revolutionary
currents against Somoza.
InfcrmatiOD regarding tb8 activities of the anti-8oooza groups
was of interest to the Ambas8ador who.. while following State Department
instructions to IDainta1n strict neutrality in Nicaraguan poJitical affairs,
was allowed to assist the opposition groups whenever possible but just
so far that Somza cou1d not prove a~ atteDipt to intervene on the part of
the United States. (64-2401; 64-4514-153).
Pe rs onns 1
 3.
b2
 '!he following Special Agents aM Special Bnployees .re assigned
to SIB work in Nicaragua:
 b1C
ASSIGNMENT
 ~
6/46- 4/47
4/44- 2/45
m
 gm
 ~
Legal Attache
lBgal Attache
Managua
Managua
12//.1.- 6/1.6
7141- 'J/'.2
5/45- 9/1.5
U/42- 'J/4'J
6/ ~6- 8/46
Legal Attache
Urxiercover
Ul¥iercover
Legal Attache
Official
Undercover
Police L1a1.8on
Undercover
Official
Undercover
).Snagua
Managua
Managua
llanagua
Managua
*-nagua
*-na r:ua
*'nagua
*-nagua
Managua
515

::::~~S~~!-
mb1io2raphv
4.
,
 a.
Genera]. Miscellaneous Files on H1caragua
64-2400
aenaral Fi1e on German Activities in Nicaragua
64-24QO-A
64-2400-B General File on Japanese Activities in Nicaragua
General F1le on I~~l j an Act1 vi ties in Nicaragua
64-24QO-C
General File on Co1DlDist. Actici t.ies in Nicaragua.
64-21.oo-D
GeneraJ. me on ss-nish Activities in Nicaragua
64-24oo-E
64-2I.oo-F Generu me on French A.ct.1 vi ties in Nicaragua
64-~ Oenem me on B1"itish Activities in Nicaragua.
General Flle on American Activities in Nicaragua
64-2400-£
General File on Swiss Acti vi'ties in Nicaragua
64-21.00-1:
t
Poli'tica1 Matters in Nicaragua
64-21.0].
Economic *' tters in Nicaragua
64-21.02
64-2403 Social" t.tera in Nicaragua
General me on ~re1gn .A.g81ts in Nicaragua
64-2404
Ge~ Agents in Nicaragua
 64-2404-A.
Japanese Agents in Nicaragua
 64-2Jt04- B
I~ian Agcts in Nicaragua
64-2404-0
CoDmlmist Agents in Nicaragua
64-2J.O4-D
64~-494-E Spanish Agents 1n Nicaragua
General me on Propaganda in Nicaragua
64-2405
Germn Propaganda in Nicaragua
f
64-2405-A
Ita1ian Propaganda in Nicaragua
64-24Q5-B

64-.24OS-D C~iat Propagatda in Nicaragua
64-2405-£ Spanish Propaganda in Nicaragua
61.-2405-F French Propaganda in Nicaragua
64-2405-0 Br1 tish Propagama in Nic81'8gu&
64-2405-H American Propaganda in Nicaragua
64-2J.~ General File W1 Foreign Penetration in Nicaragua
64-24~A
 German Penetration in Nicaragua
64-24~-B Japanese Penetration in Nicaragua
64~~ Ital1an Penetration in Nicaragua
64-2i,(t>-D ~st Penetration in Nicaragua
64-24~ S~nish Penetration in Nicaragua
64-24~-:F l'rench Pe~tration in Nicaragua.
64-24~ British Penetration in Nicaragua
64-24C11 Sabotage in Nicaragua
64-24CS General File on Foreign Residents in Nicaragua
6l.-24OS-A German Residents in Nicaragua
64-2400-t Ital1an Residents in lIicaragua
64-2400-D CO8IIUDiats Residents in Nicaragua
~CB-E Spanish Residents in Nicaragua
64-24~F French Residents in Nicaragua
64-2400-0 Bri tuh 18sidentl in Nicaragua
64-I24O8-H American Residents in Nicaragua
64-2410 JIU1t&l7 aM Ba.val Wattere in Nicaragua
64-241.1
 General n18 011 10r8ign 11rms in Nicaragua
64-24ll...j, German Fir- in Nicaragua
6It-2411-B Japanese Firms 1n I1caragua
517
-]Et<RE-J'-

64-~1-C ItA1iaD Fi1'II8 in Nicaragua.
L..
64-241.1.-1 Spanish Firms in Nicaragua
64-2I.ll-F J'rench 71ru jn Nicaragua
61.-2~-G a-i t.i8h !'1rms in Nicaragua
64-2~ ~d.1o Stations 1n Nicaragua.
64-2414 Su1lar1ne Activities near Nicaragua
64-2/.16 Plant Surveys in Nicaragua
64~
 'D1e CoDDunist M>TSD8Dt in Nicaragua
100-3/.l561-222 Laoor (»~ tiona in Nicaragua.
b. j.d!:Iinistrative J1les
-
64-4514 Olfice Admtnistrative me lor Legal Attache's Olfice, ~gua,5icaragua .
64-4984-2.22 Oi'fice ~tbly isporta tor Legal A.ttache'a Office, -.n&gua,
Nicaragua..
64-4963 Living Condi t1ons in Nicaragua.
64-2983.3-222 Police)fa tters in Nicaragua
67-383685 O.rfice PerSOmtel me tor Legal Attadlets Office filed under
.~'tBS8'1', )tIDagua, N1car&g\1a- - ihe Inapect1on ieporta .tor thisoffice are filed separately-
64-1tl2'J-222
 IDforant .Pile for Nicaragua.
o. lfOnOgraDQ
.Labor-Gancunist &0'98l1Snt in Central America". Unpublished
monograph which deals in part with labor and ComJ:Jlmism in Panama.
Prepared as of Fall 1946. Proof' copy tiled in aIreau Library.

PANA:1.&.
1. ~IS 'acilities and Objec't1Tes
The delimitation agreement under Which t.~e Bureau operated in .
America set Panama aside as the special province of the War Department.
order to complete the information on aubversiTe activities Which the Burt
receiTed from other parts of the Hemi8phere, it was necessary to e8tablis
limited coverage on the Isthmu8.
\
In December, 1940, and January, 1941. visits were paid to Pana~
by two undercover representatives for a few weeks. In larch. 1942. the fj
permanent underco~r representatiY8 was assigned to PaD8ma on a hi~hly
confidential basi. and this type of coyerage was maintained until the SIS
program was terminated in Maroh, 1947.
In May. 1945. the first Special ~ent was sent to Panama in an
official liaison capacity as Legal "Attache. Peak coverage was reached in
JUne. 1946. when ~h8re were five SIB representatives in Panama. The Legal
Attache' s Office wa3 closed in August. 1946. since it was found impr acticab
to main~a1n th5 s office without the full &uthority &llowed the other Legal
Attache's Oftioe.. which authDrity was refused by the 'far Department.
The Bureau' s official repre8en tati ves in Panama act~d almost entil
in a 8traight liaison capacity. Contact8 were mainta1ned with the various
United 8'tates ~ov8rmnen'tal agencies inoludin~ "the EJli)assy, the !.!ilitary
A'ttaohe. Mili'tary Intelli~enoe, the Provost warshal. Civil IntelliGenoe grou
and local Police organisations. This liai8on served a very useful purpose i,
turniehing Bureau cooperation trom the8e agencies which was essential to C~.1]
intelligence co.-rage of ~~e We8tern Hemisphere and to the discharge of
the Bureau' s du~ie8 in criminal work. Through their contaots. the Bureau' 8
representatives were able to cover leads both fDr BIS and the Domestic Field
in A~plicant cases# Internal Security Matter8. Espionage, Selective Service
and many types of criminal cases. These A~en~8 were a180 able to interview
!ierohant Seamen Who arrived regularly at Panama and who were wanted as 8ubjeci
or witnes8es by the Domestic Field.
One of the most productiTe features of the Le~al Attache's oftice
was the Police Liaison work which has been described in another section ot t.
me:norandum.
The Legal Attache's office in ¥anama City was furniahed space in th6
~~rioan ~riba.sy. lbe office was finally closed due to the refUsal of the
:Jar Department to ~rant the Bureau's representatiTe8 the full authority given
to the regular Legal Attaches in other countries. (66-16317)
519

---sE-Gi~
z. ..jor &ooomplil~t8
a. ~gl&r7 I.natigati- ~8r the J.r8Jf'
At the Ipecitic requelt ot the PrOTO8t Marlh~ 'I Ottioe ia tb8r=:::: ::::::I~ z.. a Bureau Age.t workiag uader the conr ot I - I
i.nlti~ated. 18 the later part o~ 19-&6. ~roU8 b7E
'Y&ri0U8 air fieldl in the Coal Zoa. duriag that
year. fhroup hil inquiry. 'the Bureau'e repre...tat1n 8Ucc.88~~ly .118iaated.
as 8uapeCt. .enr~ &r8Y ottioer. who were pre~0U811 IU8pect8d aa baTtag bee.
implicated. ia the thetta. Ia additiaa. while preTioualy there had bee. "'1
.uch bur~lari.. .aoh week, a lharp dec~e in the .U8ber of thel. crtmel reau1 ted
and morale aao&g the nrioU8 uai tl lub.tat1ally i8pro...d. Upo. the OO8pletio.
of thi8 iDqu1~ Tarioul Jr81 ottioial8 in the Caaal Zoa. expre...d their apprecia-
ti~. {~Sl633J 66-l6~17J 62-79l0~}
b. Sur",y or Geraaa Legatioa .&-rcM !be Bureau'. SIS .tric. ia Paa.-a had occa.ioa to taterest it. elf
ia the activiti.. of' the Spaai.h Charge .'Atf'aire., KaDu.l ~O. "e Pludolit
at the time wb88 the ~.ocal authorities ..deaTored to acquire the Ger8aa Legatioa
hcm 'which..re U -';b8 po ic of the Spaaiah Legati_. That udi'ridual
wal reliably rep.rtecl to haft buraed. a~ .r the Germaa record. held b,- hi-.
It ... all.ged that he operated.. ut811ig..ce orgaaizatia in PIA'" al80 that he po.a,..e. opeD pro-Basi l,-pathie.. Aa a re.ult or hi. actiT1tie.
OB08 declar.. .per.oaa aoa grata8 bY' the gOT8~t ot PaA.. end wu
recalled to Spa1D.
Who cua'tOdy ot the Ger88a a.rchi n. obtaiaed b,. .America
authori'tie.. ODe ot the Bureau's repre.entati~. was ..si~ed to reTiew 't~
In c~ection with th11 work, the Aaeric8D Aaba.sador. Frank T. Bines,
submitted a dilpatch 'to 'the State Depar'bseat on Jaau&r7 26, 1946, which
Itated that WI ,igen't -rendered the B8bas.,. T81uab1e usiltuce in oorn1atiBI
aad trana1a'ti8g ~re thaa halt of 'the aawrill which toad ia the archin.
of the tor8r Ger8a Loga'tioa. He""1 1u£e1)" re.pouib1e tor the ...em.b11ag
or the repor't which forwarded with 8abu.y uapa'toh ,f5O02. ~'tober 15,
1945, .ubjec't, t1'ruaittiag r.por't OB 'the tor8r Ger88a archi.,.," ia P8D.aaa.'
Since the co8pleti~ ot that work he hu be.. .eking 'the TariOU8 .tudie. tor
the Depart...t .. requeste. regarding 'tho.. toJ'8r Germaa re.ideat. of Puama
now iawrBed in the Uaited State.. . . ..- (65-66316)
Local Political "'ttair.
 o.
I. additi=. to their 11&11= ~rk, the 8IS repre...tati'Yel i.
Poaa allo kept the Bureau un." .t the iaportaat u'Ye10p.-t8 1a the
Paa.-.iaa political p1oture qj, the a.tiriti.1 of t1l8 Co-=i.~. 18 P Tbil 1ato~t1oa WU "08"&1"1 to c8p1et. the Bureau' I cowr8&e of lubftr.1ft
ac~irit1.1 1a the Weatera B88ilpb8re. (&&-2&01. 6~200-22S)
520
S£DRET

~T
 b~
bZ
Per l
s.
!he ~ollowiDg Special Ageata ... Specill imploye.. were a.sigaed to
SIS work iA Pa.-a
ASS IGDD't
 nA.TE-
 SIB
 IA}.IE
 CIn-
Peaama. C1 't1
Pan C 1 'ty
Pu..a 01 't7
Pa 01 t)'"
Paa.-. City
Paaama Oit,-y
p Ci t)r
PIn Ci t)'"
P.a-. C1 t)'"
Paama Cl t)'"
P8.aeaa 01 ty
Paaaa Cl ty
s/~ - 2/48 UadercOftr
../~ - S/47 u.derco r
6/~ - 6/44 u.deroonr
6/46 - S/47 Underoonr
1/42 - 12/45 Uaderconr
4/46 - 1/47 Uaderoonr
6/4:6 - 2/~ Official6/~ - 8/46 Leg8.l Att..che
"/45 - 8/46 Police Li..iaoa
8/46 - i/4:6 .Armor
12/ -fJ) - -1/ G UadercoTer
1/41 - Z/4l Uaderoo'Ver
.. Bib11ovaphl
a. Pr1nc!p~ Iawatigati'ge Filea
Geaeral ~8cell oua File an p
 64-2500
6..-2600-1 Germu File on Genua Ac'ti vi tie. 1D P8DaDa
M-2500-B Geaeral File on Ja.pllle.. Acti viti.. in Panama
64t-26OQ-C General File on Italla .A.oU '91 tie. in Pm8ma
~2500-D Generll rile on OO8IaaJall't .Ao'ti'Yiu.. h Paama
6"2500-1
 Geaeral rile on Spaniah Activit1.. in P8Da8a
6.-2500-r General rile oa 'reach Ao'tidt1.. in Paa...
64-2500-B Geural111e oa "-rioa Actirit1e8 1a Pen...
Poli ti cal Mattera in Paa...
 6~2501
Economic Mattera in Paaama
 64-2502
6..2608 Social Mattera 18 Panama
6"'250~ General File aD. Forelga Ageata i.u Paaaa
84t-2604t-.&. German Agent. b Pm...
521

64-2508-B Spaaiah Reai..-ta ia Paa~
~2508-F Freaoh Re.i~~. 1a ,
6~2608~ "'rie.. Be81i..ta 1a P..ama
6'-2508-5 Austria Rea1data ia Puama
1I11itary- ad. .aval Matter. ia P
 6+-2610
G...ra.l Fil. on Foreign Firaa 1a Paaama
 64-2511
Gersa rile. 18 Pa...
 6.-2611-.&.
64-2511-B J 8paneae Firms iD P8aama
64-2511-B Spani.h Firms in Paaama
M-2611-B Aaario.. Firu 1. Paama
&t-2512
Radio S'tat1an8 1. P8D
Submariae Ao'ti 'Vi ~-<... .ear PaaUla
 64-2514
Pleat ~1'1 in P
 M-2516
65-65316
 Records ot 'the Germaa Let"'t1~ iA Puaaa
64:-200-223
Co8DUai.t Ko'Y888.t ia P
b.
Admiai.tratin Fil..
Office Adminiat.rati Pile. tor Legl.l At.t.ache'l Office, Pan City.
Po
64-1681 T
64.-4:98H23 Ottice Monthly Reports tor Le,al A"ache's Ottice. Paa.-. CiV.
Paa
ottioe Per80DD81 j11e tor Legal Attaohe'. Ottice tiled uader,
8:1mb...y, Pu... City, Pan
61-400869
64:-~SO L1 nng Condition. in Pm...
6~298S3-22S Police Matter. i. Paa-.a
64-4...23-223
 Intorua't r1le f'or Palma
Monograph
c.
WLabor-Cammunist Movement in Central America." Unpublished
monograph which deals in part with Jabor and Canmunism in Panama. Prepared
as of' Fall 1946. Proo! copy filed in Bureau Library.

M.
PA.1U.GUAY
(
1. SIS Facilities and Objecti!!!.
SIS ooverage in Paragu~v was first inaugurated in February, 1941
When one Special Agent wa6 a8signed to that country in. an undercover capacity
for two months. '!'he fir8"t permanent undercover agent ~ eent to Asuncion
in August of that year and nine mon'ths later 'the first Legal Attache was
assi~d "to the Embassy. SIB personnel in Paraguay reached the peak point
during Summer 1943,with a total of four agents. In July 1946,when the
final clo8ing pro~ram was .tarted there were three agents in Asuncion.
SIS activities in Paraguay were finally terminated in February, 1947.
In Asuncion, the Bureau' s representatives occupied space in the
Embassy buildinb. Due to the adverse conditions under ~1ch they had to
work because of the pl'o-Axis sympathies or many Paraguayan government
officials, i~ W8$ also necessary to rent an auxiliary office Where certain
informants caul, oe interviewed.
A Bureau radio 8tation was installed in tile Imbasay building and
in times of emergency its faoilities were available to the other 8ections
of the Embassy. This station was of ~reat value in kee~inc the Bureau and
the State Department appraised of the developments of the various revolutionary
movements Which ocourred during the period of SIS ooverabe.
(
The primary function of the Bureau t a representa~i ves in Paraguay
was to ascertain the identity and activities of Axis agentl. Investigations
along these lines were conducted to produce informetion of intelli ~ence value
and also ~o secure da~a upon which the United State. Embassy could endeavor
to get action by the Paraguayan Government against 8uch a~8D~8. In addition
to th08e inve8ti&a~ion8,the Legal ~ttache'. Office also found it necessary
to closely follow the turbulent looal poli~lcal 8ituation.
2. Jejor AcOompli8hmmt8
a. Relation8 with Paraguayan GoTernaent Officia18
SIB investigations of German ac~ivi ties were rrequen~ly hampered
by the open pro-Axis 8ympathie~ of many Paraguayan officials. The long
history of diotatorship in Paraguay made many persons aympathetio to the
Nui system and 'the ruling clique in the army ':ere especially 8U8~l.e
to German influence. By diligent effort. however, the Bureau's represen~atives
were able to 88ke some excellent contacts as sources of information and.
in certain instances. secured cooperation from 1~ortant Pararuayan officials,
even. on oocasi~ being able ~o influence governmental policy.
.(
521

-'=8EeteRE f
By virtue of the efforts of the Legal Attache' 8 Office in
_'sQ~cion, it was possible to establish close liaiaon with varioua highParaguayan government officiall. one former Chief of Police, MUtshuito b7C
Villasboa, was extr888ly pro-Axis in Iympathy, thus making it difficult b7D
for the Le a1 Attache to r ti e lic artment.
However, who
was pro-Allied and cooperative, prove 0 utmost a8siltanoe. 8po ant
infomant waa also developed by the Legal Attache wi thin the Paraguayan Post
Office and through this individual it was possible to obtain any and all mail
directed to any individual within the country lusp8cted of engaging in sub-
versive activities. Ldaison was established with other Cenaorship officials
wi thin the country and arrangem8Dts perfected Whereby the Legal £ttacbe ..s
informed concerning 8uspected correspondence emanating from or directed to
persons in Paraguay.
(
In March, 1943, when it became apparent that Fara~ay would, of
necessity,haTe to adopt lome measures restricting the activities of her
Axis nationals, that goTernment wa. lom8What a~ a 1018 aa to how to proceed,
an~ called upon the ...rican Emba8sy tor lU~gestions. The SIB Legal Attache
thereupon prepared a document ..~ting out .ugg.sted re8triction8 upon
travel of these nationals, praJiding tor a registration of them with gOTern-
ment 8 lthori tiel. That memorandum was translated by the Legal Attache into
S9~i.h and giTen by the American Ambassador to the Paraguayan Fcreign
Office. The .ug~elted legillation, baled upon similar legislation found
desirable in the united States, was enacted by the Paraguayan legislatiTe
body into law in the verbatim language of the memorandum prepared by the
Le$al Attache. (64-4506-l7; 64-3700-A)
 (
t}erman Activities
 b.
The Geraan colony in raraguay numbered between 15,000 and 16,000
individuals. Thi8 group was intensely nationaliatic and therefore highly
suscept~ to Nazi doc~rine8. This lituation was recognised by the Nasis
themselves and the fir8~ effort to indoctrinate any ~erman colony in Latin
~,erica was made by the Nazi8 in 1931. two years before they came to power
in Germany.
From the ltandpoint ot the war er~ort, the GermaD activities in
Paraguay were chiefly important trom the po8sibility ot d1.ruptin~ the
unity of the Weltern Hemi8phere and as a breeding ground for Hazi agents
.no were sent to more important oountrie. to aid the German intelligence
services.
f
(1. ) Control ot the BaDCO Germanico de la Amerioa
del Sud. On October 2, 1943, !'araguayan Government officials began inter-
vention prooeedings against the Banco Germanlco de la America del Sud and
repre8entatives ot the ~Diltry of Interior and the ~8try or Finance
entered the bank property and confiscated all records, both bank and private,
which 'Wre believed to be or value for 8Ubsequent study. This action
525

(
NAZI MENACE
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climaxed an investigation instituted by SIS representatiTe. and the inter-
vention of the bank was planned after conTeriation8 were held by Paraguayan
~.~ni8ter of Finance, Rogelio Espinosa; ~10 Ferrario. Chief of Confidential
i~tter8 of the J~stery of the Interior; Duwayne Clark, Commercial Attache
o! the JmericSD Embassy in A.unoion; and the Legal Attache. It wa. planned
that the move would be a .urpri8e and that entrance or the bank would be
made after the close of busine8~ on a Saturday in order that there would
be .urfioient time over the week-end to search and reTiew all pertinent
material dilcovered in the bank.
(
This step which was taken by 'the ParaguaYa!l Goverment _s beli8Ted
t~ be of utmost importance in the inTestigatiaa and control of German
activities in Paraguay and constituted the most imrortant s~le step ta?en by
the Paraguayan GOTernment after the breakinb of diplomatic relations.
~8 the intervention was a complete lurprise, the bank officials
did not have time to destroy their books sod records and among the material
found ~s 220 p~es of. code purported to be bank code. Two interveners
were appointed by the l'araguayan government. These _n remained on ~ty in
the ~ dur1n~ the workins hours and all correspondence and transactions
had to be apprOTed by them.
Tne most lignificant thing about the appointment of an interTener
for 'the German Bank was the raraguayan fJove~ntts apparent wil:1ngnels to
cooperate with United States officiall in the luppres8ion of subversive
ac~1vitie8 by enemy agents. The German Bank of Asuncion had long been
suap8oted &S be1n~ the Beat of Nazi activities in Paraguay and the activities
of the ~ara~yan authoritiel contributed in no 8mall way to the 8uppres8ion
of 8ubversive activities by the Germani. (64-20433)
«
(2.) German Sooial Aid A8sociation or ~ociacion
Alemana de A.yuda Social Bubsequent to the breakin~ of diplomatic relations
~t1ie-ms by l"araguay. the German. in tha't country fon.d a society known
as the ~ociacion A1emBDa de Ayuda Social" to safeguard and cantiDue various
German organ1latio~ other than poli't1cal in Para~uay. The society was
aut~ori&ed to function by the Asuncion Police Department on April 25. 1942
and authorisa'tion was granted by the Ministry of the Interior on May 5, 1942.
The purpose of this 80ciet~r was to aid needy GermL~s. the ~erman H08pital.
and the schools and cultural institutions. Extensive and intensive inv8sti-
~a'tion by SIB represent.ti TeS reflected that although this society operated
legally and osten8ibly as a legitimate organization for the purpose of aiding
inati tutions, it was strOD~ly 8uspected that it formed a basis for many or
the German propaganda and subver8ive activitiea being carried on in Paraguay.
A list of the members of the association included 'the most influential and
outstanding Ger~ in r araguay and almost without exception all .-.bers
were described as being violently pro-Nazi.
f
527
~Er

A SUDDDary of information obtained by- Bureau representati yes in
Paraguay concerning t.h1s organization 'DS made available to the Paraguay-an
Goyerment thrQugh appropriate diplaaatic chamels am result.ed in the
appointing of interveners by the Paraguayan GovenJDent in order that the
activities of the organization would be subjected to close ~rut.iqy.
(64-~4.37)
c
().) Germanic Union or Paraguay or the Uni.on Germanico
del Paraguq. On October 20, 197J;~he Ministry' of Interior of' Paraguay by
-reSO'rutiOn ordered the Union iJermanico del Paraguay, also known as the
"Deutscher Volkesbund Fur Paraguay" a !lazi organization at Asuncion, Paraguay,
dissolved. InterveMrs -were appointed by the Goverrunent authorities to
supervise the liquidation of the organization on October 25, 194).
. Investigation concerning this organization by SIB representatives
revealed that it was founded in Paraguay in Sept-.ber, 1916, under the name
of the "German Society.. In 1942 the organization was C~pO5ed of 1656
members. In 19.3.3 the Union and all the m-.bers thereof became allied with
the Third l.ierman ~ich am .re closely associated with the German School
Society. Although the ~n1on was not openly active in politics or propaganda
the extensive investigation ~ld examination of the correspondence of the
Union by 8IS ~presentativ8$ revealed that the Union was in accord with the
objectives of the '!'bird Reich and was regarded by many of its JD8IIbers as
being identical with the Nationalist Socialist German Workers' Part.y.
(
The action on the part 01' the Par~?Uqan govenunent in closing
this organization was considered a major development in connect.ion 'With the
elimination 01' subversive el8ents in that country and res~ted largely
from the close cooperation between Bureau representatives in Paraguay azn
the Par~ayan Mird.stry officials. (6/.-26/,87)
(4.) Walter Streich. Investigation inaugurated by
Bureau representatives in Asuncion, Paraguay 1 revealed that Walter Streich,
resident of Colonia iiohenau am a Geman dentist who cane to Paraguay in
1938 , was recei virag thirty copies a week of' ~ Plata Post," a German
language newspaper published 1n Bueoos Aires which was prohibited entry
into Paraguay. Additional inquiries revealed the f'act that Streich was a
member of the Union Germanico Del Paraguay.
Through appropriate diplomatic channels all inf'onnation in
possession of the Legal Attache was made available to Kario Ferrario J Chief
of Confidential Matters I Kinistry of the Interior J who subsequently CatB ed
a search to be made of the premises of Streich and who immediately thereafter
had Streich arrested. Streich was subsequently tried by the Paraguayan
authorities am was 8~tenced on NoTaaber 22, 1943 to one year in the
penitentarr for his acti\~t1es in connection with the distribution of
German propaganda. (64-27)49)
 .(
528
-~:SE-8REt
 -~:"~ ' ~ ~

b7~
(5.) Fraudulent Par~ayan Identi.fication Documents. A.
ist of fraudulent Par avan "cedulas" of identification was-obtained in
by the Legal
A ac e at on. e 0 as were ssue e ex ef of Police of
Asuncion, Go1one1 Mutshuito Villasboa, and his private secretary, Reque
Plutarco )4,ello (Vargas). As of Sept8>er, 1944, i"t. was report.ed that a Immber
of German espionage agents and escaped "Graf SpeeR personnel had been in the
possession of these "cedulas" issued in the names of either fictitious persons
or individuals actuallY' living in Paraguay who were unaware of the existence
of such documents. The possibility existed that these .cedulas" might be
used a 8 a means of identification by such agents to prove their identi V in
a Legatior: or a Consulate of Paraguay or another count~ for the purpose of
obtaining travel documents.
Among the documents issued by the As\Ulcion Police Department
believed frauduJ.ent was one reported. in the name of Winiaa Fred. Parker dated
Jamary- 6, 1943. It was later known that Gustav Edward Utzinger, 1.1I!prtsoned
German espionage agent in Buenos Aires, used the alias "Parker" in his
operations in Argenti~ and it was believed tJ1at he bad such a document in
his possession as well ~ one in the name of Juan Manuel Stewart. All 615
Offices were placed on 'c.bl9 alert with reference to the identification of
iMividuals known to be bearine any' of the fraudulent "cedulas" issued at
Asuncion.
During 1945 the holders of the fraudulent "cedulas" of identif1cation
issued by Colonel MUtshuito Villasboa were ~l identified and the majority ot
thsn were incarcerated in Buenos Aires, Argentina, on charges of Axis
espionage. (65-47120-995; 64-22361-34)
(6.) Pablo Stagni. One of the most dangerous G~an
espionage agents and coUaborators in the Western Hemisphere was Lieutenant.
Colonel Pablo S'tagni, ot the Paraguay-an Air Corps. He was violently pro-Nazi
am throuf'.,h his pasi tion in the Par~an govertlnent he was able to be ot
great assistance to the Germ.ans. It was reported that his fanaticism even
carried him to the point of sabotaging the airplanes f'umished the Paraguayan
Air Force by the United States under a lease-lend arrangement.
Into~tion received during the summer of 1943 from hig~ delicate
sources involved Pablo Stagni in the clandestine Deman radio ring (Hm.)
centered in Argentina. He was revealed by SIB inquires to be in touch with
one IIJonyn, also a collaborator in the ring, and one "Gustav41 in Buenos Aires,
believed to be a relief radio operator in the rlnb. It was also ascertained
that reports and information were forwarded be'tiween Argentina aJn Paraguay
for the ring through the Paraguayan Air Force' s dipl~tic 1Iail. Through
t~s source it was ascertained in ear~ 1944 that Stagni had att8/!lpted to
infiuence Paragua;y'an President Higinio Korinigo into making agreaents with
Argentina during his December, 1943, trip there, binding the two countries to
mutual support. and evading United states restrictions on shipments of
muni tions and supplies to Argentina. The agre_ents were apparently sponsored
by- the German ring, or at least favored by ths.
529
S~~~~[

o. Japanese Aoti'rlties
The Japanese colony "La Colmena- at Ibytyxd, Paraguay, was founded
I~Jr 15, 1936 by the Bmpresa Co1onisadori 'Japon.sa subject to decree No. 1026
o~ the Paraguayan ~overnment dated April 30, 1936. The first decree authorized
the entrance into Para~ay of 100 families of Japanese; however a subsequent
decree authorized the ~ara&uayan Development Corporation, S. A. to bring into
Para&uay 1000 t~~ilies of Japanese agriculturi8ts within a period of five
years. The colony i8 situated in the Department of Ybytymi and is located
100 kilometers to ~he southeast of Asuncion. According ~o the aensus of
October 7, 1941 t~ere were approximately 1000 persons of Japanese descen~
li 'rln~ in the colony. The ~otal area of the Colony is 10,849 hectares.
530

--:Sfi:G.Ai:f:::..
4. 8JJn1ggling and Economic JIa_tte!8
A good deal of the clande.ttne smuggling of raw rubber and rubbe
tires from Brazil to Argentina went through Paraguay. This field provided
extensi ve employment for per.onnel and informants in the Office of the Leg
Attache in Asuncion.
Because of the failure of the Argentine Government to cooperate
with the Allies in World War II, coupled with the assistance given by that
country to the Axis powers, the Foreign Economic Administration, in 1944,
declined to furnish any export licenses for exportation of materials and
c~~odities fram the united State. to Ar!entina. with the exception of thos,
which were necessary for the preservation of the health of the Argentine
people. Aa a re8ult of this action. imports into Argentina were greatly
curtailed which forced the Ar.~entine nation to re8ort to smugglin~ tactios.
In an effort to ascertain the soope of the.e activities, the Foreign Econo~
Administration called upon the Bureau to investigate the .mug~ling of
materia18 and commodities into ~gentina.
SIB representatives in ~araguay, during 1944, uncovered a smug~lin
ring headed 9Y Manuel Lucero, an Ar~entine citizen. This group obtained
its tires andtubea a't Pedro Juan Caballero, .t'araguay, located on the Brazil:
rrontier in an isolated area oppo8ite Ponta Pora, Brazil, which ~dS the poin1
of origin for the tires. The smuggled tires, which reportedly ran into the
hundreds, were 'trucked from thi8 Paraguayan border town to Concepcion, Paraeu
where they were delivered to Francisco Casa. From there, boats of the Dodero
Line transported them to Asuncion, from WhiCh place, under the custody of
Americo Aroe, they were transported to Clorindo or Formosa, Argentina. ~ue:
Lucero apparen'tly had an agreement with the National Transport Company of
Buenos Aires to deliver 3,000 'tires in that manner and it was reported that
each 'tire brou~'t a price of $250 and up. (64-309-224)
Throughout the war SIB reports were con8ulted by the Commercial
and ~conomic Sections of the Embassy relative to the placement of firmb on
-the black l1.-t.
Inv8s~iga~1on by SIS representatives produced a great deal of
information pertaining to numerous concerns do1n~ business in Paraguay
which resulted in their beip~ placed or maintained on the united States
Proclaimed List of Blocked ~ationa1s. The following are some of the fir~
which fall wi thin this category. Gran Hotel del Paraguay, Rote1 del Lago,
Banco Germanico de 1& America del Bud, Ferreteria Universal, S. A., Staudt y ail
Krauch y Cia., I. P. A., 8. A., &4-3704-A-50; 64-3704-50; 64-3708-A-10; 64-37~
A-SO; 64-3708-A-20; 64-37ll-A-4; 64-3704-A-82. s.-Z706-A-2. 64-1006-51; 64-3700-
42; 64-3711-A-1} 64-3700-42; 64-3706-A-2.
531
"";S'E'!;:'::i~:I::~...

Comm\mist Movement
 8.
A provision in the Paraguayan CQD8ti tution prohibi tin~ the exiltenoe
o~ a Part:,' advocating Clals warfare or violent overthrow of go...ernment, was
~pplied strictly by the government of President Higinio MOrinigo in suppressing
Co~sm. As a result, molt prominent Communists W8re in exile elsewhere in
Latin America, in Para~yan prisons er internment cam~l, or in hiding. Infor-
mation conoern1n~ them in the hands of Para~ayan Official. was made available to
the Bureau through the police liailOft representati...e in Asuncion. In Ipite of
t:-:.is suppression, CoIlDlDilm continued to ake 10JR8 headway ..ong 8'tudents and
members of the army, and the principal labor organization, -The Workers' Council
01." Paraguay," was ColilDlm1st-dominated. .&. clandestine'nn-spaper, .Adelante,. ap-
peared monthly, and occasionally rough mineographed sheets were ciroulkted
criticizing the gover~~ent.
In January, 1945, Paraguayan labor, led by COmmuni8t8, called a
general 8trike, apparently as i t8 contribution to a resolution of the Confedera-
tion of L&tin American Worker. asking for a work stoppage throuGhout Latin
America January 26, 1946, in oppos1 tion to the Farrell government in Argentina.
The stoppage began prematurely on January 23, was poorly led, and was .-ittly
stifled by police ~th the arrest of key leaders. 50 other .i~ifioant
a~ltation occurred until Au~8t l~, 1916, when, on the eve of a Ti8it to
Paraguay by Argentine President Farrell-, ten masked individuals seized the
Asuncion radio 8tation, 8Teleco,. for several minute8 and broadcaat a pre-
pared 8peech tavorin; the principles of C~sm.
During late 1945, Paraguayan Communism became practically dormant,
but in January of 1946, renewed labor agitation broke out. Several leaders
escaped from campI and others were smuggled in from other countries. During
that month, Prelident ~r1nigo announced that a general election would be held
and thAt amnesty to political prisoners would be granted, but specifically
excepted Communistl. The late Ipring of 1946, law Comrnuni.m in Paraguay still
suppr8ssed and sti 11 tar underground.
In July. 1946, a decree or President MOriDigo guaranteein~ freedom
of the pre.. brought forth a leftist labor paper and a Communist organ
which bad previously been 8ntirely clandestine.
A decision of the Minister ot Interior on JUly 31, ratified by
the Council ot Mini8ters Augu8t 2, "1946, legalized the Communi8t Party and
for a time eased the SIS problemsdl observing its activities. During
Au~t, Communi8t exiles from Argentina, Brazil, and Uruguay Itreamed
back into Asuncion and resumed operations. They made the mistake ot
attacking the MDrinigo Gove~t and in September were puniahed by one
montb8 8upprellian. By Wove8ber they had recovered enough boldD888 to
demand, unsuccessfully, that they be included in the Electoral Council.
532

Oppo8ition of the 8tron~ Colorado Party and allegations that
Communists fired on police during an attempted uprising of January 12.
1941. brought plans to revoke the legality of the COmmuni8t Party. On
January 17. 1947. the old law of 1936 outlawing it was reiDvoked and
at the closing of SIB operations, February 3, 1947, extraordinary effort8
were being. exerted to eradicate all Communist roots from the country.
Although it was accused of being instrumental in the March 7 upri.in~.
all SIS evidence showed it mPst have been too weak by then to offer
more than tacit support.
.
The Bureau' s representatives kept close watch over ~he undergroun(
Communist activities in Paraguay as well as the activities of the exiled
Paraguayan Communists in other countries. Through adequate coverage. SIS
was able to keep the Bureau and the Stat. Department fUlly appraised of the
developments in the Paraguayan Comrnunist movement. (64-200-224)
Political Affairs
t.
The type of dictatorship under which President MOrinigo governed
Paraguay bred oonstant unrest and ~ of political di.turbances. Due to
the pro-Axis sympathies of many of the important leaders, it was necessary
for the Bureau's representatives to keep tully abreast of the political
situation.
The Legal Attache'a Office developed excellent sources of infor~ti
re;arding political matters. Through these sources SIS repreaen~a~iTe8 were
frequently able not only to advise the Bureau and the !mb&8SY of what was
happeninz but also to accurately s~ate What was going to happen.
The information developed durin& the various political crises would
normally have been of 11 t-tle value as the Paraguayan gove~nt usually out
off all comnunioations with the outside world during those periods. The
Bureau radio station in JJuncion. however. enabled the Legal Attache to
maintain contact with the Bureau at all times and thus keep the State Departmer
advised ot the progress ot the di8orders. The revolutionary attempts of
January. 1944 and JUne. 1946 were tests of SIS coverage.
On the morDing of January 26, 1944 a revolutionary attempt -.8
made by 8everal MftMbers of the outlawed Liberal Party to overthrow the
Government of President 1~rinigo. The attempted coup was led by a retired
Army officer, Cap~ain Ayala Calderon, assisted by ODe Denis Roa. The
revolutionists endeavored to release and arm the prisonere at ~he cl~y jail
but finding themaelves unsucoessful in this venture later sou~ht to
capture the Central Police Station. A gun battle ensued and several members
of the revolutionary party were killed.
Through confidential sources SIS repre8entati ves obtained infor-
mation concerning the abortive plot and such information was ~dfat.1J'
533

tramm tted to the Bureau by radio and .ub8equentlY' made a_ilable to
t~ autmritie. in the State De1*rtmeDt. 1'he State Department ottioial8'
iDdioated t~t the into~tion ~.hed b)I' the Bwoeau oonoeming tbe
reTolutionary att_pt the first information tat theY' bad reoeiyed
ooncerning the ..tter and were dulY' appreciatiTe of the .taot that the
Bureau through it, available .taoilitiel ... able to keep th.. praaptly
intonled coDoend. Dg de-relo}8a8Dt8 in Latin "-rioa.
.
The x.gal .&.ttache'. Office turn1ahed u. outatanding exaple of
political reporting in tbeir pN4iotion of the Para'guayan revolution of'
J1Ule 8 aDd 9. 19l46. and their alao.t -blow by blo.- de.cripti~ of' the
dneloIEeuts of that revolution. In tbi. in8tanoe the Legal Attache adviat
the aba88&dor of' the pending ooup and notified him of the sbooting at the
milit&r1 8nOami818Dt ten JdJmte. after it .tarted. 'the effeotiTene8S of thi
ooverage wa. further eDhanced .beD the Le~ .&.ttaohe first radioed the news
of tbe revolt out to the Bureau at ~.15 a loon after the di.trubanoe8
broke out. the f'irat ~a..y o~~~icatiOD to the State I>epartmeut ... not
.em out at1l tl» following ~on u.d the tir.t X1litary Attache dispe.tch
to the ~ Department at 1:45 p.m. (~-4501; 64-4506-225)
3. Persomlel
!he following Special .Agent. were 1~ed to S18 work in Paraguay
XAJII
 SIB
Cn'Y
 D.A.TB ASSIGIDrr
l1A5 - 2A7 Legal Attaoht
2~3 -~3 Otticial9M - 9 Legal Attaohe
8M - 5 Lepl Attache
7~ - ~ 3 UDdercover
3A3 - 9/43 Official
3A3 - ll/llt, UDderoGYerW- 10M Legal Attache
1 3 - 1~5 Official
8 - W Undercover~ -~ Undercover - 9 Undercover
~ - I.egal Attache
2A1l - W Undercover
3/45 - 11M Police Mal.on
b2
b1C
4. Bibliograpb7
a. Principal IDTerl1gatlTe F1l..
~-3700 ~Dera1 Ki.o.llaD8oua Fil. on Paragaq
(,
~-3700-J. General Pile 08 Ger-.8 J.ctirit1.. 18 Paragaq
s~R(r
534

"""~~5:2~:r
64-3706-D
 Communist Penetration in Paraguay
64-3706-F French Penetration in Paraguay
t
64-3707
 Sabota~e in l'araguay
General File on Foreign Residents in Parasuay
 64-3708
German Residents in Parabuay
 64-370B-A
64-3708-3
 Japanese Residents in Paraguay
64-37OS-C
 Italian Residents in Paraguay
64-3708-E
 Spanish Residents in Paraguay
64-3708-F
 French Re8idents in Parai;Uay
64-3708-H American Residents in Paraguay
V~litary and NaTal Matters in faraguay
 64-3710
64-3711 General File on Foreign Firms in faraguay
64-3711-.6.
 German Firms in Paraguay
64-3111-C
 Italian Firms in Para~uay
64-3712
 Radio Stations in Para~uay
64-3716
 Plant Suneys in Paraguay
64-200-224
 The Communist MOvement in Paraguay
112-1-224 Sate Haven tor Enemy Funds
64-309-224 Smug~ling in Paraguay
100-341561-224 Labor Conditions in Paraguay
b.
Administrative Files
64-4506
 Office AdministratiT8 F11e for Legal Attaohet s Office. Asuncion,
Paraguay
64-4984-224
 Office MOnthly Reports for Legal Attache's. Office. AJuncion.
Para~y
64-4881
 LiTing Condition&' in Paraguay
535
'"::: o6PIFT
-~~~-

64 -' ~ 4,3...224
Informant File
64-29833-244
 Police lIatters in Paraguay
67-.383621 (J:fice Personnel File for Legal Attache's Office, Asuncion,
Paraguay, tiled under caption, -Embassy, Asuncion, Paraguay,"
The Inspection Reports &1"8 in this file.
~onof!:raphs
c.
"To~itarian .A.ctivit1.es in Paraguay TodayCI.1.~onograph CO'Y8r1ng
general aspects of. the Bureau's wm-k in Paraguay publismd April, 1942,
67 pages.
"Republic of. Paraguay". General monograph supplementing the
prev1cn1s1y published -Paraguay Toda~ bringing the results of the infpmation developed by S:m up to date. Published ~uary, 1945, 109 pages. '
"COImnunist l.!ov~nt in Iatin America". Genera.l monograph on
COI!DIn1nism treated on a hsnispberic basis. Page 33 refers spec1f.ica~ to
the Camnunist movement in Paraguay. Published Janusry, 191.6.
-The JapaMse in Iatin America". General monograph covering
Japanese activities in the various countries of L?tin 1I!lerica. Pages 136
to 139 deal with the Japanese in Paraguay.
"815 O:rfice.. A.suncion" Paragua.,,'. Photographs of the B\noeau' s
office and facilities in Paraguay.

EB.~
818 Facilities and Objectives
 1.
()1 September 1, 1940, 8 Special Agent was sent to Lima, Peru,
to make a SIlrY87 of Axis espionage and propaganda actiTities in that country.
He returned to Washington on Karch 1, 1941. He was the first Special Agent
to operate undercover in Peru.
'!'he tirst assigJDent of a Bureau Agent to the Re~blic or Peru
in an otf'icial capacitY" took place on April 11, 1941, 'When a request was
received tr~ the United States Ambassador, R. Henry Norrreb, at Lima,
Peru, advising that the Peruvian Government desired to have a Special
Agent organize an investigative service in the Peruvian Ar'fI'¥ to deal with
intellige~e matters. A qualified Special Agent who was in the Republic
ot Paragua.y at that time an a special mission, proceeded to Lima to organ-
ize and conduct an intelligence 8chool. The subject matter ot these
schools, a number ot which were conducted, wUl be treated at greater
length further w in this report.
In Kay, 1941, another Special Agent arrived. in LiIaa, Peril,
at the request of the United States Ambassador, R. Het117 Norweb, to investi-
gate the "misuse of GovenDDent property." A number of c~!'~cat1ons had
been intercepted which had ostensibl.Y beSt written on UIlited states Govern-
ment stationery by German interests for protective purposes. A thorough
investigation cornucted bY' the .Agent in an undercover capacitY' han, Kay
to July, 1941, proved that no msnber or the United States DnbasSY' was
involved in this transaction and that the stat1CX1ery, in tact, was not
P)Dbas8'1' stationery- but £orged material. His investigatim not only cleared
that issue to the Ambassador's satisfaction but its ramifications disclosed
ccmsiderable Nazi actintY' in Peru with its center in Lima. iYben the
possibilities o£ such a dangerous organizatim were brought to the
AJnbassador's attention thrOllgh the agent's investigations, he requested
the Bureau to 18ediatel.Y 8eM anot.her Agent t.o replace the Agf:,'lt who had
made the investigation am who bad been sent cm another special frCXA Lima
to La Paz, Bolina.
()l ~tober 22, 1941, a special £gent arrived in Lima, Peru,
in response to the Ambassador's request, to take up his duties as a Civil
Attache. His 8SsiglDent was the .first in which a Bureau Agent was otficiall,)"
assigned to th, PJIIbassy in Peru. His true identity was known m1.7' to
Cesar Elejalde Chopitea, Director of the D1pl~tic Department of' the
Peruvian Foreign Ot.f'ice, and to a liIIited number of off'icials in the thited
states ~basS'1 other than the AJlbassador. He was carried (Xl the :F)Iba8sy
rolls as a Civil Attache. During the r8Dainder I')f 1941 no other Agents
were assigned to the FJDbae&y, although the gr~ork for expansim in this
regard was being laid.
_~::g~eR£r~
~38

In Jamary, 1941,r- --:a-~
authon ty who had dme c ODS~rable research -;ork in Peru, was &SS1.1Imt1 to
that country in an undercover capac1t,..
During 1941, the SIS representatives worked independentq of
each other aI¥i were not permitted urner any circumstances to contact one
another. They subaitted their reports t.o the Bureau t.hrough 'the medium
of drop b~es. Their reports, in order to pass Government censorship, were
written either in "double talk" or in secret. ink. The ~assy representative
was able to submit his reports through the diplC88tic pouch and consequently
was able to report in .open c~cationsw which permitted more extensive
and c~preh«1sive reporting. During Decsber, 1941, a system was devised
where~ the undercover representatives submi tt.ed t.heir reports t.o the man
in the !)Dbas&y", who forwarded t.h- with his ~ reports to W'uhingtm. This
eliminated ODe of the real problems cmfronting the SIS Dinl1m, t.hat ii,
a safe means or ccmlm1n1catim which would permit. "open reporting."
When the united states was attacked b,- Japan ~ December 7, 1941,
it became readily apparent that the personnel assigned to Peru would bave
to be ex:p&med treaemOOS13', both because Peru was a key country situated
almost in the center of the west coast or SOIlth America particular~ vul-
nerable to Japanese attack am because of' the internal Japanese mmace.
The Japanese living in Peru have been var)"ingly estimated at between
thirty and sixty thousand.
Coverage was increased until the p3ak was reached in June and
Septsber, 194.3, when twenty-rift Special .Alents and Special b1ploy-ees were
assigned to Peru. This nuaber was gradually decreased until in July, 1946,
before the final process of closing SIS ~rat1ODB began, there were eight
Burem representatives on usigrlDent in that CDlmtry-. The SIS orfice in
Lima waS closed m'1 :Karch 7, 1947.
The offices of the Legal Attache were located in the DW'1cio Bud
Alnerica, situated m the Plaza san Jlart1n in IJ.ma. This building also hoosed
the United states ~assy which Da1ntained offices 00 the fifth and sixth
aoore. ~ the seventh fioor were located the offices of the Legal Attache"
the Vilitary Attache, the Naval Attache, the !)nb&say Auxiliary Unit dealing
with intelligence matters" and the Central Filing tklit. It was an
excellent situat.ion 1na8ll1Uch as all 01' the ~&88" agencies. concemed
wi th intelligence work were located on the 8_e fioor which' permitted
close cooperation" expeditious ba~'ing of _terial" aTailab1Uty
539

for penoD8.1 contao~, and reacv- access to the CentN.l Intelligence FWng
Unit. 'ft1e offices of the I.gal Attache a18o conta1ned \he aareaut8
clandestine radio which _8 81 tua ted 1n a ~l roo. let apart !rom tbe
office proper ot the Legal A~tache and his a881st.an~s. tis a1'torc8d oo.plete
priftC7 and el1a1.nated the pos81bility ot ita being leen by 1M1rtdual8
ns1 t1ng ~he office ot the Legal 1.ttache. ;
b radio provic:Wd an e:xped1tiou8 means or co8lUl1ication and
proved to be an iDwluble ..set. i!1e atation in Li8I. -s designated &s Uae
relay station tor all tJl.e &lreau atat1ona located in South "-rica.
D1e J8&r 1942 witnessed tbe transition ot the position ot the
Legal Attache from that. of an interloper in ~. int8U1pnce field Within
the ~87 to that ot ita tOr88)st con8t1"tuent. 'He as8UMd tt. leader-
ship wit.b1n the ~e87 on intelligence ..tters, R8 trequentl7 comulted
by the heads ot ~ oUler Units and by the A8t-.se&dor, and his opinion
carried considerable weiibt.
Prior to b outbreak o.t war bet'w8en ~ United States and
Japan on ~o~r 7, 1941, it wa. read1q apparent that Peru constituted
a _jor probla.:;} and 8teps were iD8t1 tuted 'to 1&7 the ll"ODDd80rk .tor an
intelligence organisation in that countr,". ~eretore, the 78&r 1942 W8
8pent 88tabli8h1ag contac'te ~d source8 ot intorution, .nlop1nc COD-
n.ntial info1'm&.nte, effecting l1ai8on with -.arioue age~ie., and 8etting
up the proper ac8inistrat1". facilities to cope with ihe probl88 presented.
(64-4474)
2. Ka.jor Acc~U8bment8
a. IntemMnt hog:1'&.
D1ring 1941 and 1942 1Jmu.rable Ales were opened on Ge1'8n
indinduals who bad been acti". 1u espionage, propaganda, and eubwn1".
act1 rttie. in bebalt of ~ ~ PORn. !be inwstigatiODa condllcted on
these ind1~daals ~d that the cen"-r ot ~ ~r8n actirtt1e1 ..
the German Legation. 'D187 Joe'V88led hrtber bt ~It ot the CJe~n
D1.plo-.tic Corps who -1'8 clothed with ~-~'t7 _re directiDI the
propaganda and e8p1onap activitie. ot 0eI-.D natioQ&).. ft81d1ng within
the country-. When, tbefttore, in J&I1Uar7, 191.2, Peru ..".red d1plo-.tic
relatioD8 with the total1tal"ian power8, it inquired ot the State ~partment
whether it would send a ship ~ re~T8 't.b8 ~~an, Italian, and Japane8e
dipl08t8. 'Dle UDi'ted State. ~.,.. ami.ed 'that it ~d and recoaended
that o~r danprous .1.x1a m't1oDal8 &1..0 ahould be ~port.ed. bn the
Penrtan Oo'9'8mMnt a8ked'who t.b87 -..re, t.b8 ~87' npplied it w1~ a 118t
wbich had been c(8piled b7 our reprelentatiY8, ~ 1111tA%7 ADd Ba'Yal
.a.ttaCh88, and 'the .A.uz1l1&17 Section. .1lt.bouch the Perurtan Qoy.~D~ d1.d
W)t 8zpel aU tho.e ftc~nd8d, 1'\ ~porteci ~8t ot ttl8a. by_re
included a.mng the deportee. wtX) aa11ed on the sis BmLn, the s/s AC4D11,
aDd the s/s SHA.w1BE. ~ the.. ~ boats *1ch oaUed at '=~11~ in April,
Ka7 and JUI8 1942, tbere ..re c8por'ted four hundred DilWty-aiJIe ~1'8DI,
540
:3~e~:[[

six hUlMired sixty Japanese, aM .tart)"-n1M ItaUax.. (6I.-l6~-I.O,21)
The Peru'Yian GoverJ:aent, though cooperat1'Y8, bad no .ana ot
taking &t1'1rMti... action against Axis .la_ntl to curtail their acUntie!
other than br Jegi81atift enact_nta arxi decrees which &ttected co_rcial
enter}:uti8el and p1aced 1i8it.ed reatrict.1oDB upon the treedoa of travel, aM
forbade the di8tribution ot lR"opaganda uterial. While such eMctMntl aDd
controls wre or _terial88si8tance, it -8 noted that Ax18 eleMnta wre
abIs to continue their act1'riU88 &8»ng their om groups aM moganisationa
88 enforce_nt 8S not strictq followed by' Peru'Vian authorities.
Internment cam~ were not establ1shed nor did the local Gowem-
mnt proceed agaiDBt known espionage agents in their cO1Irta or law. 1'hu8
it beoaE apparent that the solution to coaplete control of Ax1a actiY1t1es
in Peru 88 to be accomp]j,shed by effecting the deportation or an iIIportant
.Axi8 nat10s.18 from Peru. tor internmnt in tm United States. (64-1612)
The 1JIV8stigat~.on of A.z18 ele8nts poeses81ng s.,..tbies taYtn"able
to tbe Ax18 cause d18olOl..~J that any 1nd1'f1dual8 were dangerous in 80
:far 88 the securit7 of the CO\JDtry as concerMd. InftstigatioD8 W1'8
cl088~ ton~d in each instance to determ.M the activities and ~thie.
of those ilMiiTiduaIa am where Buttic1eDt eridence .. obtai_, their namea
.re added to the list o.t 1M1'ridua~ who wre considered dangerous enough
to deport Ira Peru tor interID8nt in the United State8. (61.-24184)
The program of deportatiOD ot dangerous A.xi8 Mt1ona18 frcxn Peru
in 1943 ... tera8d. &8 very 8ucce88h1. 'Bl. rerunan Government coop-
erated tulq in thia attar, ordering the expulsion or &D7 iMi'ridul con-
cerning wh~ 1ntm-ut1on had been obtaiD8d iMicat1J:l8 a dangerous character.
On January 10. 1943, a total of' 168 Japan.e aM tift German national8 were
sent to the United Stat.. ~or internment aboard the US1T WRED~RICK c.
JOHNSOII, !h18 1 returned to Peril a aonth later aIKl OIl Febru&r7 24. 19/..3.
departed ~or 'the Umted State. w1'th another croup of deportee8, 1Dchm1ng
26 German and U9 Japanese natiooala. &1.ght,--e1x Japa.-se nat1ona~ were
deported ~ro. Peru aboard 'tbe SS .l.CGlCAqUA on Jur1e 29, 191.3. Th1a group
included tm ta811ies of' Japanese DatioDall previoueq deported, as ...11 ..
other 1nd1v1duala mo had been approved ~or deportation because of their
dangerous character. ~e such 1Mividual we Nabuo Iatoh, a Japane.e na-
tional who had left Japan in 1939, trawled through tm .st C~st of the
Uni ted States, .x1co aM Central Merica. 88 well &8 allot South America
an~ through his known contact. aM activiU.. it as established that he
.. de.t1n1tel7 engaging in e8pionage activitie8. Yatoh.. known to haw
lu181tted reports of a c~rc1al and econolld.c nature to a Japa~se na-
tiwalin Argentina. The repm-t.8 -1'8 numbered iMicating be bad 8ent
prenous coaatmicatioas to hi8 8uperior. 'lbe deportatioD ot other indi-
Yid1al8 R8 acao~118bed thrOllgh the cooperation of the PeruY1&n GovemMDt
in Jul7, 1943, WeD lOS Japanese and ooe Ge~ wre deported aboard the
55 Iaperial, !b8se 1IKii'r1duau wre destined tor tot. United States wherethey wre placed in inter~Dt campa. (64-24184-38; - 39) (64-1600-92; - 115)
~i~,<~

Due to tJ:. sue of ~ German and Japanese colonies in Peru, 'the
wcrk o.t the SIB representatives in that country we by DO MaDS co~l8ted
with the above deportaUone, It was necessary to tollow the activ1.tus of
those 1Ddi'liduala who remined in Peru. who were sympatmtic to the Axil
cause with the Yin in a1nd ot p~8ibq e.ttectinc their deportation at
som hture date. The results at 818 efforts in this coDlWctiOD was dis-
closed bY' tm r;act that 39 Ger8n D&tiOD&la acn 29 Japanese nationa18 wre
deported aboard the SS VADISO:l' ~ Januar,. 18, 1944, destined tor the United
States r;«- 1nterD8nt. (64-24184; 64-16~-'tO)
With the deportations of the ~t Fominent Ge1'll&n and Japa..se
subject.. the backbo.. o.t the Ax18 8spioD&g8 aDd prOpag&1KIa orgaDi~atioD8 R8
broken. There r8D&ined 1n Peru. an enremeq large colo~ of Japanese which
was a definite threat to the 8ecurit,. at' tM coUDtrn h~8'Ver, the ~t
capable 1eaders who wre known to have been atfil1.ated nth the Japanese
Central Societ,. and otmr subordinate organizatiOlJS bad been removed, thus the
et.ficiency ot their organization'D8 _teriau,y at.fected. The deportation
not on1.,' af'fected the personal habits and 81Jrroundings o.t Axis nationals,
but aJ.o atfected their c~rclal acti'V1ties 1nasl8lch as Axis subjects
were a.traid to engage in an,. activit,. which Wo.l1d subject them to Arrest
or d8pcnot.at1OD. ID .t01low1ng tJ. acti'rities of' 8ubversive ele.nta, ftluable
infor_tion... obtained concerning their cO8lErcial activities which was
made ani1able to appropriate authoritie8 and which resulted 1n 8Il1' iMiriduals
being placed on the Procla188d List of' tbe Uni t.ed States.
The results of. ertenaive iD'9'8ltigation on the part of. 8m repre-
sentativel in Peru. in regard to ult.i_te intern_nt aM deport.at.ion of. certain
dangerous 1x1a nationa1s "'Were' most satisfactory. A8 ot JulY' 6, 1944..
a total of 569 Germans and 1.. 737 Japa had been expelled fr~ Peru to
the United States tor internment. A8 of that. date, in addition, tbere _re
53 Gel'll8n8 and 34 Japanese &ppr~ for deportation which wr. 8till in Peru.
( 64-24184 ) .
b.
German Actin ties
A few examp18s will ehow the -nous types of O&e8e iDftstigated
by SIS representativee in Peru during their cOTerage ot German activities.
.Axel "nner-GreD, the :tamous SwdUh 1.J:K1uatrialiBt, 8pent
considerable t18 in Peru in 1941 ostena1ve17 leading aD archeological
expedition. fhrOUib investigation it ..8 disclosed that h18 archeological
8Xpedition as real1,y a trOilt tor a mre significant pJrPOS8, that 18, the
tJping up of Peru' 8 1Muatrial potentialities tor a 8yndicate headed b7
Wenner-Gren which .. \D¥ioubte4~ tOrl84 to a14 the Ax18.
 ,
After t.be deportation of the Ax1a dipl~t8, iDV8etigation
leftaled that Henr,. Teuber, aanager of tbs fuau 'err08taal A.. G. in
~~-

l
8
-s~.-e:R:E.f:-

Lima, bad taken OYer 'the direction o.t German aubvereift activities.
a result of this iD'Yestigation, Henry Teuber 'RS deported on tb8 S/S
SHAWHEI. (64-16~-Al7?)
As
An investigation into the activities of Hubert T. I_per, which
'W8S conducted jo1ntq by SIS 1'8pre8entative8 in Peru and in Chile, re-
vealed that be bad been 1D8'truct,ed b7 ~rman,. to 1'8M"ganize within PeN
the National Social18t Germa.n Part,. in Pent. .As a result, ~r was not
perDd.tted to reenter Peru aM t1.a into Argentina. (65-31845)
Toward the eDd of 191.2 it 'DB ascertained that Tobias Reidner
and Valker lochs had taken over ~ reins; of' tm German e.pionage and
propagaJXia organization and had beco- t.be ke7 German agents in Peru.
Tlds 88 brought to the attention of' the Peruv1an Government on December ]h,
1942. Through the insistence ot t.b8 United States mDbaas7.. five important
Geman Dationa1s.. incl1Kiing Reidoer aI¥l lochs, together with t1.t'teen dan-
gerous Japanese natioDals.. wre deported to the PaDaM Canal Zone in a
United States Arm,' transport plane. (64-22'760)
It was believed that the extensi ft deportations of German
nationals ser1ous17 affected the Nazi organisation in Peru end it. appeared
that the re_i~n-! iMiv1dua~ wre 80 fearrul of arrest, internEnt,
and deportation that it was difficult tor them to effectively reconstruct.
their propagama aM espionage S78t.811.
f
Ferdinard Westhoff, who sa intenwd in the United States following
his deportation .tr~ Peru aa a dangerous enell)" alien, filed an lnjuncti~ .:suit
in the lliddle of 1945 'With tb8 888utance of the .Citizen's Protective League-
in order to prevent his deportation to German,'. We.thott cla1med that although
he had been born in German,. he.. a Peruvian citizen by virtue of the fact that
his German born parents acquired Peru'9'1an citU8DShip. Poeitive 1Df'ormation
that Westhoft acMd .. a German sp7 in Peru and as an inMgral part. ot \be m.
Radio Ring was obtained .from dec~88 of PIL radio .e8.ages. J'urtbsr, a D1Dber
of state.nts b7 Westhoff himself' \bat he ~ a German and docuMnts t~ 1D
his possession, such .. a Gel'8n passport, see_4 '0 retu'- any 01&18 he bad
to Peruvian citizenship. Detailed inf'ormation concerning Westhoff was .furnish-
ed to tM Department tcr use in t.he injunction aut. (100-135615)
In Lima, as in other Latin Merican countries, a tre_ndoua amount
of wmok was encountered by the office of the Legal Attache as a result of' the
review of' f'iles aM &rcbins of' the Gel'llan diplomatic 81ssion in Peru. the
Bureau's office in Lima f'igured proDd..nentq in the project relative to
~g ~ _terial.
In December, 1944, tilliam Curtis Cole.~u~ and Erich GiJlpel.. Ge~-
trained eapi-oDage aM sabotage agente -re 1and8t\ by sublDarine in t.h8 United
States. Colepaugh W88 appreherned.. and an intensive search ~ becun .tor
Gimpel. Gimpel bad resided in Lima, Peru.. trOlll l'J36 to 1942, wmokiDg &8 a
radio technician. SIB representatives at Lima i_d1at8l7 obtained aU data
54.Ar
~ -SE~bS~ -:;2~~

regarding Gimpel' B activities m11a in Peru aM sent an Agent b7 airplane
to the United States with Gimpel's photographs, fingerprints, aM haMwritiDg
spec188ns. Gimpel was arrested in Bew York CitY' on December 26, 1944, am
together with ColepaUgh, was held tw trial before a military tr1bmal.
(66-25519)
Robert. Leit.geb (Ruber) was t8ken into outod1 by' Perl1v1an
authorities at Arequipa, Perut on August 20, 1943, charged 'With being
engaged in espionage act1nt1es.
It bad or~1nally been deter81~d b7 SIS representat1'998 tllat,
Isitgeb was in contact with W1lbela Neugebauer, former German Con8ul in Chile,
am Paul Detgen, a known Nazi 8~thiS8r" who was also reported to be
engaged 1n espionage actiTit1ea. Foand in the possession of Le1tgeb were
photographs consisting of Chilean and PeruTian coastal areas, a180 photographs
or various au1XDar1ne naval cra!'~ inolwiing tlle Naval fleet and Merchant
1Iarine. There 'A,8 evidence of lei \gab t S aembereh1p 1n the Jazi Part,.. of
Chile. ~itgeb admitted that he 'R8 assigned &s a 8ecret agent at the German
GOV'ern.nt to Valparaiso" Chile" and while in Valparais°J he 'Was ordered
to present hi_elf to 'l'i1helm Keugebauer.. <Jerman ~ader of 8outhern Peru..
Investigation disclo8ed that the ac~ntances and friends ot this
individual were strong eympathilerl or the Nazi cause aM in aoat instances
members ot the ~ in Chile. I.t SIS instance, t.i tgeb .. deported from
Peru on January 18, 1944, to the United States. (64-26662)
 (
c. Japanese Activities
The Japanese, due to their number, constituted a serious problea.
Throughout 1941 and 19~, investigations wre conducted !nto their actirl-
ties and the results brought to the attention of the Perllv1an GoverrD8nt.
Most or the unde81rab1se -.r8 deported 88 prev1.0U8lT noted. ~ng the
.taU o.t 1942, an 1n'98stigation revealed that Japanese tailors were
manufacturing a unUorm eill11ar to the Japanese military outfit aM wre
selling these to the Japanese _18 populaUon. (64-16~-B-62,6.3,67).
As a result ot tb.18 investigation, nine of the Japa~s8 tailors who were
involved wre deported to the Panama Canal ZOM by pIane on December 16"
1942.
j.lth~ there _re approxiMtely thirty ,thousaM Japanese subjects
in Peru.. tbe great majority are of the so-called peon class aoo ca- to Peru
8~ ,ears ago as COEOD labm-er8. Throughout the ~.. boW8ver, c~iderable
in'988tigatioD concerning po8$ible Japanese espionage I abotage aM related
actiT1t1ee wu co~ucted and reflected. that there W88 no e'91deDC8 or espionage
or sabotage activities, prll1c1pal1\Y because \M ~tant Japanese leaders had
been deported trom ~t c~try. In Peru, the propaganda tactics 'Which the
Japanese colony followed W$l.S to bla. the United States for a11. econollic
difficulties e.x.1sting in Peru.
545
~- ,

c
R1.gid econC8ic restrictiona wre 1nat1tuted b7 the Peru'rian
Gover.-nt agaiD8t Japanese 1'e11diDg in the COUr1tr,-. IAgislat10n was
enacted cancel1Dg the aaturaUsat10n of Y&1'1oaa Peru'ri&ns of Japanese
descent who eDgaged in aubYer"sin or propagama acti'Yities contrary to
the weltare of the countr7. IUutrat1ft of Peru's actions to control
the Japanese wre the econl:lDic restrict.10D8 iDclud1ng 1DteM'8nti~ of'
Japanese f'1rru and the freezing of' .tuxxi8, which b7 the earl)" part of 1943
had reached the sua of $1,850,000.00. Certain political ele.nts in
Peru expre~ t1e view that the entire Japanese COloD7 iD t.bat CO'QDtr)"
should be deported.
During extensive investigatiOQ ot Japanese activities in Peru,
SIB repressntatift8 directed their attent1OQ to the ~rtanoe of raz1k1
Tateishi, Pera'rian of Japanese descent, 'Who W&8 81ap1019d in t.be Spanish
.baa87 as an interpreter and Japanese ad'ri8er. Investigation revealed
'l'ateizhi to be an exceedingq dangerou person who bad been particularl,.
troubles 018 as a leader of' the Nisei. Tateizhi Ngiltered with Japanese
military authorities on January 20, 1942, 1'or ailitary eervice, 1'oUowing
which tiE he was actin in Japanese organilationa. ~ wrote various
doC\lnents of. a ?ropaganda nature, oaJ'ing upon second generation Japanese
to act 111 beba=a.l of the oountt'1' of their blood.
'lateisbi was expelled fro. Peru in JanUB.r7, 1941., W be 1Dterned
in the United State.. (~8238).
Usaburo *,0k1 and Hitoad .&~, Japanese nationals~ who were
prominent in the aftairs at tfJe Japanese Colon,. in Peru, were deported
from that country in 1943 and br~t to the United States~ where the,.
wre interned. J.a a result ot correspondence between these irniT1dus.1s
aM other Japanese natioll&1s remaLnj.ng in Peru, 5IS representatift8 in
cooperation wi'th Peru'Yian authorities coMucted an e.xtensive investiga-
tion which resulted. in t.he location o~ the sate 'Rhich had. ~or_rl7 be-
longed to U8&~O aoki. Upon U8IIinat1on~ it was discovered that the
sate contaiMd ~unds amunting to '7,132.30, as well &8 other prOpert7
which bad been concealed to prevent c0Dfi8cation bY" the ~rurlan Go'98rn-
ment. (64-22360).
During an 1nvestiga t.ion in the ear l¥ part of 1944 into ~
activities of nucenk1 Tamashiro.. a Japanese D&~ional residing in Lima..
it was determned tba t ~his il¥i1 'rid'U&1 possessed a rubber ,tamp ptlrPOrte4
to be the stamp of the Chinese Consulate pt Peru. The Japanese .re
using the staup ~ correspoErience tor the purpose ot deceiving poet..1
and censorship authorities. From its appearance alone.. there is no
distinction between written characan of 'WI8 Chinese al¥l Japanese
1anguage. BoaTer, it was d.eteradned by Chinese officials that no su~
8tamp bad 8ftr been ut1lited b1 their CoMulAte representatives. (64-29048)
546
f,~
 ~

:::S~:@:fE F
~1.C
b?n
d. Spanish Activities
The Spanish Falange constituted a problem of' -.1or proportions ~
but durin2 19/.2 a conf'idential 1n!'ormant J . - - ~
developed.He supplied our representative with the ~mbership in the Falange and
kept him abreast of its activities. (64-1604-A-43)
Through investigation it was deterDdned that Fernandez Santander,
Spanish representative .for the Spanish newspaper service BFE, was carrying
on propaganda activities 1n Peru; ar¥i as a result a protest was made to the
Peruvian Government which resulted 1n his expu1sion. (64-1600-A-90)
~berto Salamancal a Falangist press correspondentl showed
up in Peru in the spring of. 1942. An investigation revealed that he was
a Falangist and propagandistl and an appropriate protest was made to
the Peruvian Government as a result 0.1" 1Ihich he was denied p!'ess privileges.
(64-24972 )
SIS repreS6~ 1'.atives in Lima. Peru. were successful in develODine:
a most uniaue 1.nformant I
t
In one instance it was ascertai~d that Francisco Borras Vanaclocha,
a Spanish police representative assigned to the r..bassy in Pen, was engaged
in activities tantamount to espionage in behalf of the Spanish GovernMnt.
Other docuznents 01" value regarding reported Japanese and (B~n nationa,1s
were obtained; also one coDllmmication concerning Estan1slao Illudain which
indicated Illudain to be acting as a Spanish courier trom Peru to Spain.
b7E
.
Following the removal of German, Japanese, aM Italian officials
from Peru, the Spanish anbassy at Lima took over the ..nagemnt of .Axis
affairs. The activities of the Spanish ~sy officia18 'were follo.d
to determne if any .mbers of. that diplomatic mission 'Ere engaged in
SubverS!:' a:~:i:ta::~:t~.. :u :ua;;:tthe establish- Dent 0 information o.t
~'eat va ue 0 e en, &8.. U orma ion of a subversive
nature was obtained. On one occasion a copy of a comImm1cation was obtaiMd
which set forth conteq>l&ted activities of the Spanish ~sy which, if
accomph5h8d, would definitely have been a blow to the Allied
541
~T-

Nations. The communication from the Spanish Ambassador was addressed
to the Foreign Kinister of the Geman ~ich am concerned the shilDent
ot German gold by- means ot the Spanish dj.plomEtic pouch from Peru to
GermarJy'. This gold described, S8 the property- ot j.gencie M2ritime Kosmos,
was reported to be in the poseession ot the Spanish Embassy- and it had
not been inventoried inasmuch as it was kept in seven sealed bsgs as
originelly delivered to the Flnbassy-- The Spanish Ambassador advised
tbBt the gold would DOt be shipped bY' the Spanish d1 plomatic pouch unless
he was definitely- instructed to do so because or the uncertainty ot ship-
ping chennels At thet time - (64-25939-5)
It is to be noted that the KOSDOS Agency had been used es a cover
tor espionage activities prior to the breaking ot relations between Peru
and the Axis Nations. This Agency had been involved in the PIt espion86e
ring which operated tram Valparaiso, Chile, and which was in contact .with
numerous espionage agents throughout South America.
Through this same source.. information was obt8ined concerning
the activities or various members or the Spanish Mission in Peru which
indicated the activities of these individuals as being of an espionage or
propaganda nature favoring the Falangist cause. Such activities were pro-
hibited by diplanatic agreements between the countries involved.
C~8t Jetivitias.
e.
During 1942 the Commtlnist P~rty, also known as the Vanguerdie
Socialista Party, which had been more or lese subjugeted by the PeruvianGovernment and publication of its newspaper, ~mocraciB y Trabajo, "
suspended, bed ~ renaissence and its activities once more becaDe prominent
in Peruvian circles. Its newspaper reappe.pxed on the stands but wi thin a
short time was &gsin suspended. HoweTer, the PartY'8 activities were not
interfered with, but on the contrery were giJen Drominent notices. One of .
the SIS undercover renresentatives developed I I
las B confidential1nformant. He
a.L80 aeve.Lope~
as a confidentIal 3.nIormant.. .tSet.ween t.nese t.wo our repre5en'liat.~ ve Kept; cur-
rently abreast with all Communist activities.
Peruvian ComIII1nist.~ relied primarily on he.ndbills circulsted at
news stands and bookstore~ 28 a means of making their announcements and
disseminating propaganda. In addition, they had two monthly magezi.hes and
three intermittently printed news sheets. Also a bi-weekly paper which,
although not on its face Communist, was used to counteract -reactionary"
tendencies. The Party also had e representative who often wrote Comsunist-
inspired editorials on the imependent paper IlLs Noche8 of Liaa.
(
The official Commnist organ was the newspaper ~_ocr8ci8 yo
Trabajo. which went twice monthly~:~~:;:~~::::~s ~s s ribers. Close liaison.
of SIS representatives with Peruvi esulted in the b7C
Bureau I s receiving specimens of Sovie propa5an ma e~a addressed to this
~

paper and to the Peruvian Federation of' labor by the Russian &1bass7 1r;
~co. SIB inquiries revea1sd that Jfexican diploats in Peru assisted
~ Callmunists in hatdl1ng coBllll1Dications witJl .:x1co.
iw
Additional indoctrination was effected through 8choob and
courses in CC8muni8t history aoo Jlarxist-Len1n18t teachings conducted ~
the national youth group 8Juventud Comunista Peruana- ~ which had branch~
in the various states of the country.
SIS investigation revealed that the Peruvian Federation o.t
Workers, 1.i.k8 -~ similar organizations affiliated with the Con£ederati
of IAt1n American Workers, ~ C~_1m1nj..t dominated. It was headed by Jw
P. LUDa, who R8 Jj.kewise head of the C~-.!1ist Party. Canmunist organil
o.t Jabor in Peru began with the visit of Vicenta Inmbardo Toledano in 19L
but no uniformity- W88 effected until the Chilean Labor Federation he1d it
,Congress in September of 1943, at which time the Peruvian organization wa
invited to send delegates. At this Congress a -pact of honor- was signed
to unity Peruvian JAbor. By *'y 1, 191.1., the 7ederation emerged covering
the entire labar field aM including the 1a.borers of the strategic II1ning
and petrolewn iMustries.
815 in'vestigat1ona reflected that the Board of' Directors and
mmbership of' the Confederacion de Trabajadores de Peru (Workers Federatio
of' Peru) in earq 1945, 'D8 largel.v cCXDp~ed of' those having CanDlmist
af't1l1atioM; howver, in the beginning of' 1946, t~ CQImlunists l~t groun.
in the 1a.bor. field to the j,priBta forces.
The Peruvian Can81nist PartY' had very close ties with the Chileat
Conmunist PartY' and after JanUE.ry, 1945, Russian and Colllllunist propagarna
entered Peru from such pJaces as Cuba, *xico, and Uruguay. L1.terature
coming fr~ Mexico emnated from the Iblssian :&llbaasy there, as _11 as .trom
other Communist sources in ~.xico, D. F. Fran tiDE to time the CaDmunist
Party l'8cei Ted periodicals publ.i8hed in 1b18sia and mi1ed under the auspicel
of the -USSE Society .for Cultural ~lations with Foreign Countries,
International Exchange Service..
Speeches, resolutions, and prop&ganda on the part of the Party
itself repeatedly" called upon ttMS goverl8nt of Peru to recosnize the Soviet
Union, 8tating at the sa. ~ that the iDDediate establish88nt of' reJAtion:
with Russia -.s of patriotic Mcessity tor Peru. ~rence to the Party
LiM in Latin ~rica was also reflected in references made by the COBDUnist
Part,. to alleged 8Yankee imperiali8m8 in Peru.
~8 CQII~!.-n~st Party at Peru, mile not 0Il8 of tlw leading Parties
in Latll1 America, gained s~ 10,000 additional Ellhera in about two 78ars, w.
of .importance as a growing PO'ft8r, and reoei Yed thorough Bureau coverage. At i
Secor» National CongreS8 in )larch, 1946, the Chilean Caamun18t laader" Carlos
C~treras ~barca, warned them to be alert for a continental anti-{:C8ImUnist
campaign" and t18 arrinl of two Bureau Police Liaison Officers d\U"ing
the S8D8 D)nth as denounced in the Camnunist pre8S as the beginning
of anti-democratic and anti-1&bor activity-
549
.~s~~~ii;:- -

Despite ~ .itation, t.be B1Jreau's representati'V8s were able
toll.- C<8D.\1D18t matters closely through police contacts aDd 1ntormant.l
w1tb~t 811)"" indication that Bureau. o~rat1on8 were known in 8117' wq to
the C~1ni~t,s th_elftSe
8
During the SwmD8r of 1946, tM aJreau ns conC8rx.d with c~
influenced lab(.- agitation in tt. port, ot Callao, Peru, but in December,
191,6, tJ1e C~8t8 lost v1rtu&JJ.7 all pat"ticipation in the direction ot
t» C~ederation ot Workers ot Peru to the opposition .apriata or Socialil
P..t7. .uter that time they had onq one delegate on the EDcutiw Board.
rh8 PleDary 5811100 ot the party in O:tober, 1946, moought an
internallhake-up wit.b se'98ral officials losing their poe1tions tar retuaa
to tollOW' the proper po11t.1cal line. By Karch 7, 1947, when 8m in Lima
cl~ed, the.ir poincipal acCaJl)li8h8ent was the p~-! ot the highq pro-
C~i~t aDd pr0-8oviet Jose Karia Qt~ 88 a member ot the Political
Division o.t the United Nations Security Council trCII Peru. (64-200 Sub 22,
.f.
Peru'rian Pol1t.1cal J.ctiu'tiee
The 1m8ettled political situation in South America during 1943,
was a de.f'1n1te t.brea't against the solidarity ot that continent with
the Allied cause. Peru was aftected to a great extent by" ettm-ta ot
reacti=ary ele_ntB to o'98rtkJ1"ow- the incumbent gowwi'Dmbt. Fcr that
reason it W88 de&Bed necessary to cl~ely toUOW' political developmenta,
particularq with. regard to re'90lut1oDa1'1' atteIJ1)t8 assisted bJr .&x:18 el_ntt
While the Go'VerQEnt. of President Prado was not popular, it
contimBd to support, tbe ~ted St,ate. and t~ .uli~ cause and a8sisted in
t.he war e.ffmo.t. where'V8r possible. The jpr18ta Pc-V was torMrq considered
the group 8O8t likeq to cQ18p1re qa1n8t t.he Government. 1'b18 group took
a t1U"n .favoring t.h8 Allied case azKi was not actiw in repca-ted attempts
liainst t.he Oo~-,-~nt during 1.943.
The Union Rew1ucionC'1a was n8ll8d during 1943 sa an organisation
which would most lik81,J' atteq>t re'YOlutioDa17 action to gain control ot the
Oovera8nt during JuJ.y and August ot 1943. ~. 01' this organisation met
on numrous occuioD8 and ~rous rUlKJr8 were circulated throughout the
couDtr,- tJ1at 81 atteI;Jt would be aade to o'98rt.brow the Go'V8rn8nt. While no
action was taken in this regard a state ot um-est prevailed tm-Oughout the
Go'VWn.ot Ind 8Ong tJ1e otticials 01' the GoverZlEnt which _teri&1.q
affected theit" etficienc-r in matters 01' cooperation with tne A.llied Jfations8
Bqa De u'torre, la"ominent political figure in Peru and Iwad of
tJle .ipr18'ta Pm-Vsade available Worut1on to SIB representatives regard-
~ a plan 8pons~ed b7 the Argentine Oo'98rl88nt tor t.he oV8rtJJr~ ot the
1DcUIDb8Dt gO'V8ra8nts- at tJ18 Tarioua nations at Iat.in America. 'the purpose
at ~ plaa 88 sponsored by the Jrgeat.1r» Oo'V81'a:u.nt to tarm a block
550

against the United States and the Allied Nations which wou1d be favorable
to Argentina enabling that country to gain control in South America by
creating political and cultural move_nts in Latin America which 'WCuld have
Argentina 88 their center. This inrm-mation was de81l8d very important by the
State Depar..nt of. the United States and investigation throughout South
Alilerica was necessary to determne the exact attitude and part being played
by Argentina in its endeavor to cause political Um'est aM revolutionary
actions throughout the continent. (64-26498-1)
Subsequent action in Bolivia 'Which resulted in the overthrow at
the Government of that country on December 20, 194.3, verified the informa-
tion as had originaliy been obtaiJted b-om Ha.va De Ia Torre in Peru" parti-
cularq as to the part played by Argentina in its endeavor to establish
military dictatorships similar to the Argentix. Government and which would
be favorable to that GovernEnt. (64-26498)
Extensive coverage of political information in Peru led to the
disclos\n"e of a revolutionary attempt agaiMt the GoverJln8nt which was
scheduled to have occurred on December 31, 1943. This movement 1188 planned
by the Union Revolucionaria with the support of Gennan and Japanese elements.
At a scheduled hour demonstrations were to have been instigated by 70 groups
of. 5 ~n each located throughout the country 'rd1ich were to begin as anti-
Jewish disturbances and would result in a revolution as the reactionary
ele.nts took advantage of the confusion ensuing when the holiday crowds
were aroused. The identity of the German aM Japanese elements 'W8S determined
aM maJ'1)1' of these 1001 viduals wre deported from Peru for 1ntertlllent in the
United States in January, 1944. It was ascertained that the &3eting 'Which
planned the revolution 'W8S attended by eight Japanese and five Gert:1ans, in-
cluding a small group of Peruvian Army officers. Joseph Zettel and Otto Betz"
Geman nationals, were among those who attended this meting. Zettel'rB8
removed from the country. As the move-nt against the Government .s schedule<
to coi.ncide 'With a similar movement in Chile, infor~t1on regarding the plans
of. the revolutionists 'W'a8 -.de available to the Governments of. Peru and
Chile and appropriate steps were taken to counteract the activities o! these
element,- (64-1601)
During t.he deportation program of Axis nationals from Peru to the
United States, .i.t was deterJld.ned that certain Axis subjects bad evaded de-
portation, which indicated i.nfiuence being exerted b1" certain Peruvian
officials. 'l'hrough interview, it was determ1.x.d from Japanese nationals that
Carlos Peace Oli.veira, Sub-Prefect of Juaja Province, and Jose Parra del Riego
Prefect of Junin Province, were engaged in extorting .rums from potential
expulsion candidates. .A. signed statement was furnished by Shuchi Unezawa,
in confidence" to the Spanish ~S)" at lladrid, which led to it being de-
termiMd that the two above--ntioned iMividuals bad extorted rwns and
mrchandise in excess of 140,000 soles ($20,000 U.S.). Peace al¥i Parra bad
contacted Japa~se nationals al¥i advised them that their deportation was

g.
Two intelligence schools fm- the P8rl1vian Army wre conducted by
the Legal Attache am one of biB assistants dur1ng 1942. The t1rst
school was composed of Aria)" officers and picked individuals .from the Lima
police Department who bad been drafted into the Peruvian Army. b
members of the second school consieted of the .cream. of the Peruvian
Ar~ officers. Both these sChools were success~ concluded and Colonel
Bodero of the PeruTian ArIa)" Headquarters Staff in charge of the COMuct
of the school adv-:i.sed that he ~ bighl1 pleased with the results obtai.D8d
aoo desired, if the Bureau saw fit, t.o institute a school as a regular ard
continuoos feature in the training ot the Army personnel. The school
provided an excellent entree 1.nto a b1.thertofore unt.apped intelligence field.
It pro'rided an opportwty to disC'QSS intelligence proble. with officers
conversant nth 'th8 internal cond1.tions in Peru. Since the graduates 01' the
two schools were dispatched throughout Peru, 'Uley provided excellent contacts
for our rep-8sent.atives. .A. wealth of' intelligence informat1.on which came
to the attention of the general starr ot the Army 'AS made available t.o our
representat1.ve due to biB cont.acts w1.th t.h1.s organisation. FUrther 1.t created
considerable good will and respect tm" ~ representati'98S and ~as1n"ab1y
enchanced the positioD of' the Federal Bureau of' Investigation in Peru.
(64-29833-225 )
~2
 3. PersoDl1~~
The following Special Agents atKi Special Znployees were assipd
to 8IS work in Penl:
~7C
ASSIGI~
Plant Survey
Plant Survey
Undercover
Plant SurveY'
Official
Ulxierco'98r
Official
Underconr
Official
Official
Lipa
~
2/43 -
2/43 -
4/43 -
2/43 -
8/43 -10/42 -2/46 - 4/47
5143 - 12/4.3
3143 - 12/433/44 - 7/46
(
552

~I~m.r~
 DATE-
 ,gm
~
~
Lima
Lima (Travel St.
Talara
Lima
Lima
L1.ma
Lima
Li.DVl
L1.ma
Lima
Li.Ina
Lima
Lima
Lima
Lima
Lima
Lima
Lima
Lima
Lima
Lima
Lima
Arequipa
Lima
Lima
Lima
IJ.ma
Lima
Lima
.Arequipa
L1ma
Lima
Lima
Lima
Lilla
Lima
Lima
Lima
Lima
Lima
Lima
Lima.
LiDia
Lima
LiJ1\a
Lima
Lima
Lima
L1ma
t
b~
b1C
- 7/41
- 3//.4
. - 10//.2
11//.2 - 7/4't
12/42 - 12/44
6/46 - 9/46
11//.2 - 6/43
3/42 - 11/43
3/46 - 9/46
3/46 - 3/47
- 12/43
- 3/4.3
- 6/43
., - 3/47
- 2//.2
1/43 - 1/44
3/45 -10/454/43 - 12/43
31/.4 - 7/44
1/43 - 3/43
1/44 - 4/44
8/43 - 5/45
1//.4 - 12/44
5/42 - 11/43
2/43 - .3/43
2/43 - 4/43
4/42 - 9/42
5/43 - 8/45
4/42 - 1/47
9/44 - 8/45
2/43 - 3/43
12/40 - 9/43
11/43 - 9/44
8/43 - 11/43
3/43 - 4/47
2/43 - 12/43
5/43 - 11/43
5/43 -
2/43 -
4/42 -
9/40 - 3/41
6/43 - 9/43
. 6/43 -
5/43 -
1/45 -
12/44 -
10/41 -
4141 -
2/43 -
t
2/42
5/42
3/43
Official
Ul¥1ercover
UlMiercover
Undercover
Official
legal Attach
Official
Uooercover
Official
police Li.ais
Undercover
Plant Surve~
Plant Surve~
Undercover
Undercover
Undercover
Undercover
Undercover
Urdercover
Undercover
Official
Undercover
Official
legal Attact
Plant Surve~
Uooercover
Ur¥iercover
Official
Undercover
Official
P1ant Surve~
Undercover
UJ¥iercover
legal Attacl
legal Attaci
Undercover
Uooercover
Undercover
Plant Surve:
Undercover
Undercover
Official
Urde rc over
Official
Undercover
U1¥iercover
Official
Official
Plant Surve~
553

ASS! rJmlm
 DATE-
 SIB-
CITY-
 NAl.m
2/43 - s/43
5/43 - 6/43
8/42 - 12/'2
11/42 - 12/43
5145 - 10/46
1145 - 11/45
1/43 - '/4.3
-'/43 - 11/'3
2/45 - 2/46
Plent SurTe1
Plant SurTey
Official
Underoo't'8r
Undercover
Official
Undercover
Undercover
Official
Li-
Li-
Li-
Lilla
Li8
Lt.
IJ.-
.arequipa
Lt.
b2
b7~C
4. Bibliography
a. ~~DOipal Investigative File.
Geoeral laaoellaneoua File on Peru
 64-1600
General J'ile on Geran Aot1v1t.ie. in Peru
 64-1600-A.
64-1600-B
 General File on Japanese ActiT1tie. in Peru
General File on Italian Activitie. in Peru
 64-1600-C
General F1le on Commun18~ Ao~iT1~1e8 in Peru
 64-1600-D
General File an Span18h Aotiv1t1e8 in Peru
 64-1600-B
General File on French Activi tie. in Peru
 64-1600-F
64~1600-G General File an Briti8h AotiTitie8 in Peru
64-1800-H General rile OD American .Activitie. in Peru
General File m !:i.1anian .&.o't1Titie8 in Peru.
 64-1600-J
General !1le on Swedi.h Act1T1t1.. in Peru
 64-1800-1
64-1600-. General 1118 on ju,trian Act1 vi tie, in Peru
Political *'ttws in Peru
 64-1601
Boonoaio .ttera in Peru
 64-1602
Social *tterl in Peru
 64-1603
General File on Foreign -,«_t. 1a Peru
 64-1604
Gerun .agate in Peru
 64~1804-.1
554
T

-s~~-
64-l6Q4-B Japanese Agents in Peru
64-l6~-C
 Ital1an Agents in Pero
C~,",lnist Agents 10 Peru
 64-16Olt-D
64-1604-& Spanish Agents in Peru
64-16~-F
 French .&gents in Peru
64-1604-0 British Agents in Peru
64-16Q4-H American Agents in Peru
64-1605
 General File on Propaganda in Peril
64-1605-A.
 Qe~n Propaganda 1D Peru
6i.-l6OS-B
 Japanese Propaganda in Peru
64-1605-0
 Italian Propagalxia in Pent
64-1hOS-D
 Camaunist PropagaIKia in Peru
6I.-1605-E SpaDi8h Propagaoo. in Peru
64-l6OS-F French Propaganda 1D Peru
64-1605-0 British PropagaMa in Peru
64-l6(t) Geperal Pile on Foreign Penetration in Peru
64-16~
 Geman Pex.tratiOD in Peru
64-16(t)-B
 Japanese Penetration in Peru
64-l6«>-c
 Italian Penetration in Peru
6I.-16~ COBIDUDist Penetration in Peru.
64-1h~ Spanish Pene'tra\ioD 1D Peru
64-l6~F French PeMtraUoD in Peru
64-l6~ American Pe..tration in Peru
64-1607 Sabotage in Peru
64-160'7-A
 Geraaan Sabotage 1D Peru
Japanese Sabotage 1D PeN
555
64-1607-B

"~;!~:~~=&~~~.:~ ~
b.
Administrative Files-
64-4474
 Office Administrative File tor Isgal Attache '8 Office, Lima, Peru
64-4984-225
 Off'ice Monthl.v Reports .fOE' IBgal Attache's Of'fice, Lima, Peru
64-4626
 Living Co~itions in Peru
67-3836"19
 O.f.fice PersolU1el File tor legal Attache's O.f.fice .filed under
caption, "ElDbaSsy, IAiJIIa, Peru.- The Inspection Reports .for this
o.ffice are .filed separately.
64-4123-22.s
 In£o~nt File tor Peru
64-29833-225
 Police Matters File
Mollograp!!!
c.
-rotal1tarian Activities in Peru Tcxiaye General monographs coveri
various phases or the Bureau's work in Peru. Published Jay" 19'.2; 199 pages
-The Coaununist Movement in Latin American General monographs
covering Communism on a hemispheric basis. Pages 126 to 127 deal with the
Canmunist B>vement in Peru. Published January J 1946.
-The Japanese in Latin America- General monograph covering
Japanese activities in the cO\mtr1es of Latin America. Pages 84 to 99 deal
with the Japanese in Peru.
.5IS Office, Lima Fe ruN
.facilities in Peru.
Photographs of the aJreau's o.f'tice and
551
~

cc.
.HLlIIIPPINE IS~~
t
1.
2.
~or ACCCXDP1ishDW3!!~
b1~
(

In addition to the political information secured from this
office, SOlE very excellent reports were .received on the growth am rise
of the Philippine guerrilla movement known as the Ibkbalshap. This
organization took to itself vast powers in central Luzon am many be-
lieved that it 8S heavily infiltrated by persons affiliated with the
Canmunist Party or sympathetic to Canmun1st ideology. Coincidential
with the rise of the Hukbalshap 'E8 the increase in terrorism and law-
lessness in central Luzon. The Bureau's representative was able to
furnish some interesting reports on this si~uation. (100-340979)
Among the reports furnished £rom Manila were several Jlade
.~ble qy the Army concerning the activity of various Americans in
trade union affairs at Wan.i.la. This furnished an opportunity to identify
sone of these as persons who had been known Cao!l!l1-n~st8 in the United
States in the years past. Two of those thus identified were Kenneth
Goss, a member of the Kercbant Marine, and Peter.Mendelsohn, a known
.mber of the Seamen's Sect1.oa of the Caumun.i.st Party at San Francisco,
California. Both of these men p1ayed an active part in the strike of the
Union Chreros de Est_~dores de F11i.pina.s which took place in the Port
of Kan11a in Februa~ I, 1946. (66-42)
3.
Personnel
,
The following Special Agents were assigned to SIS wont in the
Phil1pp1M Islarxis I
SIB NO. Qm
 ~
 DATE
 ASSIGl-n~T
bZ
7/45 - 7/46
7/45 - 10/45
7/45 - 7/46
3/45 - 9/45
Manila
Manila
Kanila
Manila
Army
Army
A11J1y
Army
4.
Bibl1o£rBj)hy
Adm.iniBtrat1ve Files
 a.
66-/.2
Office Administrative File .tor Manila.. Philippine Islands.
67-.1.00090
 Office Personnel File tiled \Ulder Liaison, Ilani1a" .R1ilippine
Islands.
:'4-298.3.3-2.39
 Police Katters in the Alilippine !slaw.
559

DD. PORTOOAL
1. SIS 'aciUti8. and ObjeotiT8&
Daring the ~er of 1D43 it was d8..d adTilab1e to eltab1ilh an
SII liaison ottloe at Li,bon, Portugal, due 'to the 18POr'tanoe ot that oo=try-
in Axis espionage. !he fir8t Special Agent wal &88igned to the Imbas8Y in
U8bon a. I.gal Attache in Augus't, 19~. During 8)8't of 'the 'time this otfice
was open it was found nece.sary- 'to haTe two .en asligmed to it in order to
handle 'the TOluae ot WQrk. !he oftice ... olosed in Septe8ber. 1946 as
Portugal had decreased in taportaDc. a. a 8it. ot 8ubYersiTe activities and
the Br1 tish 1Dtelligen08 Otfic. Which had operated in that oi ty during the
war wa. b8ing ololed.
During the ti8 the Legal Attaohe" Ottioe .. in en,tence in
Li,bon, the aareau', repre,ctatiTe. were t\arDiahed adequate .paoe within
the :an.'IY bui141Jlg1. !he 41ploatic 4--1ty attorded by the .ba..y _8,
in the oa,e of the Legal Attaohe in U.bOD., ntally i8Portant, due to the
freedom of action allowed e~ acct. ~ the Portuguese GOTerDmeDt.
!he ~eaut 8 repre.8D~t1Te8 iJI. Ulbon 181"'9'84 in a IVaigbt 11 &18 on
capacity with tJ1e 100a1 otrio. or Briti8h IDt.111g_o. ad with the otJ1er
united Statel inTe.t1gat1Te aDd iDte11ig8Doe &geDo1el wbioh 8a1Dtained rep-
rea_tatiT.' in Portugal.
b2
b7D
rhrough O~'tao't8 with Britilh !n'te111lcoe. the Bureau'l repre.cta-+'4-- 4ft '_4 .'hft- ~re able to leoure 81oh T&luab1. !Dtor_tim1 fro. the
I.iob had pr8T1ous1,. been reoei...ed 101e1y trom Lond~. this
1..~er~a1 Game trom British deood.. of German intelligence and
diplo_'tio ...ages. ad the i.Dtormat1on obtained b7 the Bar8au'. Lisbon
r.pre.entats wa. of Ti 'tal i~rt8DC. in 8n7 of 'the mo.t iaporta't ..pionag.
oa..s 1nvest1cated b7 RIS ad the Domeltic Jie1d.
!hrougb liai.on with the other united State8 intelligence agencie8,
the Legal Attaohe'. Offloe ... able to obtain iDtoratiOD deyeloped bT 'tho8e
agencie8 whioh pertahed to 'the ..ourit,- of the .e"em Bell1lpher..
In January. 1945 it -. e.ti.ted 'that appron_tely 40 per cent ot
the work pertorMd b7 the z.gal Attaohe' a Ottio. pertained to apecitic leada
.et out by the Bureau r.latiT. to iATe.tigation. pend!~ in the United State.
or I&tin Aaer1oa. An add! t1oaal 30 per oeDt ot the work or1ginated from
~th1D the Aaerioan ~'Y it.elt, .uch a. reque.t tor DAme cl.arance. tor
pea.port appl1cant. and geaeral ..tter. of .ecurity within the !aba..y. !he
re-.iDder ot the Legal "ttaohe'. ~rk originated with the Britt.h, PoUah.
DQtOh. and Belgi.. tatelllC8Dce ottloe. in L1.bOD. !he.. reque.; rela~d
largel~ to the iDtor.ation de.ired by the iDtereated ag~cie. traa the
Weatern Bem1.phere. (64-"~5)
560

2. ~jor Accanpl18_n~
a. Investigation tor the United States Embas~
Probably the outstanding achievement which established the Legal
A ttache solidly with the officius ot the :&Dbassy was his success in obtaining
a confession fraIl Jose de Mateo Ja~rar1o, who bad been an saplayee of the
American Press Office in Lisbon until JUM, 1943. In DecedJer, lCJ43, he bad
been successful in corruptiD£ another employee of that office who, at Janerario'e
request was r_ov1ng certain microfilms and publications which were passed
to the German Intelligence Service. In August, 1944, Janerario attempted to
corrupt another emplQ7ee of the 4merican Press Office. This attempt was
reported to biB superiors and a trap' was laid 'With the assistance of the
Por'tuguese International Police. Janerario 11&8 arrested aM biB confes8ion
was obtaiMd by the Legal Attache. Janerario. canpromiSed an attache of the
Japanese Lega~on and an employee of the Geman Legation, both of whan were
subject.8 of a protest to the Portuguese Foreign Office. (65-52069) J
bl
b7C
b7D
JapaMse Espionage
b.
One of' the more interesting cas~~ ~---, A_AIf a+ fA ann" ..~ t.hA
espionage..
(5)
c
 l:severa.!war aga1n8t Japan brought an end to this CAse.
Never~eless, the Bureau's representative at l.]sbon was able to advise theI::r:~:e t~' ureau of the de 'Q1re tran Portugal or.
in LLsbon 19 .--n~8nI.nt~ were made at 'l'oky'O to interview t s member or) f'A o--+1- .--n~8nI.nt~ lin Lisbon who had
been involved in the Sunset'ICase. lb.5-.5.5.52~) I b7C
c. Genaan Espionage b7D
(1.) In8:Pection of M1cr_od~t ~il:8nt 18 bas been
previO\l8ly pointed out in tbe- Hct1onon-i8x!co, tbe iDYenti.oD ot t~
microdot system was probably the outstaMing deve1opnent in the field of
espionate cOlmDunicat1oD to come out ot the war. It was not until Spring,
1945, that the Bureau's Laboratory bad an opportunity to eDm1~ the
~quillnent used to produce the dots. At that t.1me the British in Portugal
secured German microdot and cryptographic machines used by tbe German
espionage system in that country. Arrangemnts ~re made by the Legal
'Attache at Lisbon to have tbese machines examiMd by a representative of ~
Bureau's iAboratory. '!bis .~~!!I1-TJ&tion furnished the Bureau with information
about the microdot machines which it bad not previously possessed. (65-37793-102
(
561

(
 b7D
(2.) In.fo~tion (l)tained after Cessation 01' Hostilities.
With the oessation 01' hostilities in Europe, the Bureau's representative at
Lisbon was able to take advantage 01' the tendenCY' on the part 01' German
diplalats am intelligence agents who 1'unctioned in Lisbon during the war to
want ra te with the Allies in °fsllr to -save th,!ir skins." One 01' :.
1'urmshed considerable i onna ~n concerning the espionage act! vi G
German establis_nt in Buenos Aires during the war. He 81eo gave a
volume o.t in.t'ormation about German8 who had been repatriated 1'ram Arrentina
to GerfJJarJY shortly a1'ter the close 01' the ~'uropean war. liuch of tids in.t'orma-
tion corroborated d.terial alreaciy" furnished the Bureau by the Legal Attache
in Argentina. (105-5921)
b'C
twa~~~:d ~~other German who cooperated with the BuJ;eauts recresentative in
Lisbon wa tonaerly emplQ1'ed in I ~r 1 He was develope as an 1n.tormant by the Legal Attache and he
furnished him coMiderable information ot value about the German diplaDatic
corps. [I also was able to g1 ve StDe account of the German Espionage
system in Lisbon. Ie furnished the Legal Attache with a ~p1.ete list. ot
salaries paid Gel'lDans in Lisbon by the leg. tion. In addi tion,L J
furnished. 118t or Portuguese newspape~n who carried on propagama
acti Ti ties for t~ Germans togetlier with the pa1JDents made to them for this
service. (65-33405)
(
other OM ents 0 erating in Lisbon wasr I
A double ag.~ operaT.eQ -J
y Ie to secure considerable b7C
information of iaportance raa cessation of hostilities.
However, upon Ule surrerxier or rmAl\Y, turMd h1II8elf' over to the b7D
British as an informant. He was questioned by the British am the Legal Attache
a t considerable length. This 1nterroga tion supplied a great deal of informa-
tion which canpleted the Geman espionage picmre for the Allies. (64-.'X)888)
There were a mmber of important Nazis 11 ving in Portugal a t the
end of the war. The SIS office in Lisbon clo8el7 1'olloned the plans for the
repatriation to Germaqr of these pe~le. The allied governmer.ts presented
lists of several hundred of these Germans to the Portuguese goverr-.8nt 'With
the request tllat th8'1' be repatriated to Gel'm&rl1" as soon as possible. Although
the Portuguese adopted delaying tactics the ~patr1at1on 01' most 01' these
Nazis was eventu~ completed. (65-37153; 65-54086)
In line with the cooperation between the Portuguese and the
German goverIDents in a good malV" matters, it is pertinent to note U1at the
Portuguese Secret Police are of' considerable assistance to tJIe Nazis during
the war. UJ¥ier their auspices, German Agent. were permit.ted to travel f'reel7
through Portugal and operations against the Allies by" Nazi espionage rings
562

timet-toning t~ Poiot.ugal were facilitated b7 tb18 police force. When the
Gerun CoD8Ulat.e in I.18bon W8 inspected b7 oar representati't'88. a me was
located in ~oh wre .tomn 8.11 CCI8IIunications dealing wit.h contacts between
the Ger8an8 in Portue8.1 and the Portugu.e Secret Police. (65-53392-27)
 "
3.
Personnel
!he following Special Agents were assigned to SIS work in PortUpll
Q.!!!
~
 ~
Lisbon
Li8oon
Lisbon
Lisbon
Liabon
DA.1'E ASSIGmIDtT-
4/46 - 7/46 Otf1o1&l8/43 - 10/44 Legal Attache
1/45 - n//.5 Official
7/4S - 10/45 Offici&],
4/ L.4 - 9/46 Legal.A. ttache
4.
 b2
b-'c
65-.3'7193-236
Bibliograph,'
a. PrinciP8.l Inv88tigat1'9'8 1'11-
Abwehr .1ct1'rlt1e8 in POrt.ugal
6S-SSS23
 -Sunset- isp10Dag8 Case
.
b.
~ m strati "'8 F1l~
64-8>85
 Office AdD1n1st.rati.,. Pile tor L8i8l1tt.che'. Oftice, Lisbon, Portuga:
64-4984-236 Office .nthl7 Report.. for Legal1ttache's Office, Lisbon, Portuga:
66-16.))8 L1 'Y1Dg Co~tion8 in Port'Qlal
67-386170 Office P8r8o~l rue tor Legal Attache'. Ot.t'1.ce, Li8bon, Portugal
64-~33 Police Kat ters me tor Portugal
563
~t~

"g!~~~!
..SPAIN-
('
f
2.
Ma,jor ACComDli8hmeet~
a.
~wble A2:8D.t!.!
(
b7D
T
564
1. ~IS Facilities and Ob.1ective!

(
,-
b7C
b1D
.
The deftlopmen~ ~ d~b1e agent permitted the Bureau ~o Obt.a1.D
additional German microoota and information conocniDg ..cret writing _tbod..
The cue a180 .f'U.rDi8hed Taluab1a dat.a about t.he Ge11aan espionage organi.sation
in Madrid aM supplied in.toraatioD coocerning ~e us. of Spaniab dipl~tic
personnel b7 the Ge~D8. (65-5.3143).
~rman Act1vit1e~
 b.
During the war _J:q'reports '.ere received al1aging collaboration
bet_en the Spanish police and the Nazi secret organiZations. b Legal AttachE
at lladrid located in t~ Oe11D&n Bnbusy copies of' actual con'tracts entered
into bet.en ~m..lerls organisation in Ge~y am the Spanish police, calling
f'C'~ the cloa..t liaison and collaborati.on on atters of' mtual interest. fh1s
arrangeIMnt apparently continued t}'Iroughout the sr and resulted in Basis in
Spain l'8cei'V'1ng f'aTOred treat_nt from tM SpaJli8h authorities. It.s a180
deterained that the German intell1gtJnoe agencies operating under dip1Q8tic
iDU!!'-!.-n1 ty in Spain had on their payroll 88'98ral iaportant SpaDiah .ecret police
otficials who actiT8~ worked f'm- the Nazi espionage system.
565
~E Ct6'

Q1e of the ach1eveMnts of t.he Bureau'. repr...ntative. at l18drid
.. the arrangement wherebY' theY' ..cured access to an 1Dforution concerning
transfers of capital tr~ corparat100a in Spain to Is.tin Maerica which had
ccxae to ~ attention of the American Embassy in Spain. These arrangements
.re 8de in order that t.he Bureau aight be not1.fied of the flight of any
SUBp1cioua ind1rlduals fr~ Europe to Latin America or to the United States
during the course of the war. 'DJ8 arrange.nts included close exalKi.Dation
of aU passports &8 _11 as thorough screening of all applicants for United
States 'ri.8as. '&e purpose of this setup" to pr8'Y8nt large-ecale flight
of important Axis officials who had not been capt1D'ed in Germany i..d1at81y
after the termination of the 'Rr in Europe. .
(
The ~Ull representatives at KIdrid were able to proq>tly ad'9iBe
the Bureau of the departure or various h1.gh-rank1ng Axis espionage agents
frcu Spain to Ger-.ny- throuJb tb8 repatriation program fmo German Hational8.
Included in tbj.s group were lurt Von Robraacbeidt, Abnhr IntelUgence Chief;
Joachim Canaris; General HaM Doerr, German Kilitary Attache in Spain;
Gottfried Toboschat, Abwehr Chief in Barcelona; Guatav Lenz, former head of
the Abwehr in Spain; Erwin Stubbs, important figure in thel'Jar"8Sp10nage
case; Hans Ziegra, Geman agent who as in Brazil and the United States
before the 'W8r; Hans Von ~ch, former usi8taDt Genuan Air Attache in Madrid,
previ0U8ly actiw 1n Peru; and Paul F11'dI1uo aJ¥i Federico 'lurch, Abwebr ar;;ents
in Spain.
The Bureau's Lotxion representative was later able to secure the
results o.t the interrogation ot most ot tMse operatives through the War
Ro~ in Ialdon.
In addition to advising the ~au or the depart\n"e ot these people,
the SIS agent in *drid .-.a ot considerable assistance to Aaerican Bnb88sy
autboritie8 in Spain during the war in identit)1ing and securing incrilLinating
infm-mation on 88.n7 ot the Genoan agents who operated in that country. .A.
list. ot 8everal hundred such agents was furnished to the Spanish gove~nt
by the ~S7 with tJ1e demalxi that t.bese iMi'ridua1s be interned cr
repatriated to Oerlla~ where t.h87 could be q.uestioned. Sub8e~ently the
more important agents .re deported from Spain. (65-)7193-237).
COI!UDUnist Activi.tie8
c.
The Legal Attache at Madrid, Spain, was able to develop aM
DII.1ntain excellent reJatioDB nth other govern.ntal agencies in that countr,...
As a result, in addition to his usual liaison duties, he has been able
to secure extensiw information concerning the acti'9ities of' t.he CCBm1D118ts
in their ef'f'ort.8 to proJlK)te the overthrow of' QeJ18r~. Franco.
(
The trial of' t-wo Span18h CQl1DJDiSt.s, Sebas t.ian Zapirain aIll Santiago
Alvares l' Garcia, attrac'ted wor1d4ide attention. Tl\eS8 tW'o _n _re arrested
b1' the Spanish police. They wre accused of' acts against the internal security
of Spain in that they held Met1ngs in Jladrid and instigated a mowment to

destroy the Franco Government. 1!Je case was the object of world-wide
pressure by the CoDlUn1st Party and the Co8mmist press. The trial was
held in May, 191.6, resu1t.1.n~ in the cCX1viction of. both men along with
twelve others accused of. simil~!' orr.enses. b Bureau's representative
at *drid was able to attend the trial as an observer. He furnished the
Bureau with his cOliMnts concerning the procedure followed at the trial,
the amosphere in which it was cCllducted and the nature of. the charges
made against the accused m«l. He also out11ned the substance of their
def.ense a~a1n8t these charges. (64-200-2)7; 64-3~S; 105-.3433.57)
4
b2
3. Perso~l b7C
!he following Special .Agents are assigned to SIS work in Spain:
ASSIGNm'lT
 ~
~
 ~
 ~
2/43 - U/43
10/46 - Present
4/44 - 1/47
9/45 - 1/.1.6
.dr1d
~d
Madrid
adrid
otficial
Legal Attache
Legal Attache
Otticial
Bi blioaaphy
4.
,
 ~cipal Dlvestigati ve Files
 8.
65-3719.3-237 Abwehr Activities in Spain. b7D
65-53143 I - - t an.d d.ouble agent I I known. under
code Dam I r
65-5:3143 ~2~~0IIble agent I Iknown under code
64-200-237 Co8Imist )lav'eEnt in Spain.
AdDdnist.ra ti. y. Files-
 b.
Office MministratiTe File for Legal Attache's Office" Jfadrid"
S~.
66-16299
67-387743 otfice Personnel F1.1e tor I.gal Attache's Office filed uMer
wEmbasS7- *dr1d, SpaiD. 'l!1e inspection reports for this of.tice
are filed separatel,..
Police Matters 1D Spain.
 64-29833
Informant File for Spain.
 64.- 4l2 3-2 .37
561

Fr.
1. lIS hcilitie. ad Objeotiv8I
CD April 1, 1942, a Special Ac8Dt ... ...igoed to the Jmerio8D
CoD8ulate at !r1D14ad, B.W.I., to act in a liai.on oapaoit'f with BriU.h
a_A ~ --- T~+_"" p.n1"..8n~"~~T8. a't 'tba't DO.'t.
!( S)
bl
b1D
!he Bureau'l repre.8ntati wu alliped to Trinidad in a .tric't
lidlaD. oapaoi t,- ard hil principal tDo'tiona were to Ob'tUD iDforaa'tion
.h1oh oame ia'to the ~o iOD of the other IDtelllg«Do8 -«aDoi.. 88'tabll.hed
at tha't point aDd -ilhich 18ight be of iJlter..t to the Bar.au. He was allo
able to work in olo.e oooperation with thole as_oi.. iIa 'the 1Btenogat1on
and ,.arohe, of' lDd1ndua18 'Who 'trmaited 'that port.
the LLa1lon Ottice was tiDally ol~ed in December. 1945. &8 the
ter.iDation ot the .ar and the end ot Bri tilh Travel Control. made thi8
11&1800 po8t DO longer Deo...ary.
I
2. .jor McapU.hllmtlbl
a. GeDeral CoTerage b7D
!he £gemt a..1gned to !riDidad .at.rially a.si.ted the Bureau' I
work b,. being prelent at ilaterrolatiou of IUp.cot. aDd obtainlDc iDtona-
s
-. u (M~7S)
'( S)
568

b. ,!!t8rropticma
!he Bureau'l repre.eutatiTe in Trinidad wal able, by Tirtue ot
hit partioipat1~ 1D the interrogation or 8Ulpeoted indiOYidual. tran.itiag
that oztrol poin't, to &dri.e the Bureau aDd the other LeC&! J.ttaohea
of the tapending arriT8.l ot perl0D8 belieTed to be working tor the en-.r.
He ft8 allo able to d8Telop ccmalderable information, tbr~ch the ..e
mean.. which olar1t1ed 8aQJ PeDding Bureau and BIS ca Among 'the en..,
agent. who ...re oaptured at Trinidad and trom .~ the Bureau'. repr..entatin
was able to obtain Taluable 1.n.tor.ation ~re tollowiDgl
Bari Cat.herin Grant... recrui 'ted b7 'the 8pani8h to work tor the
Japane.e in the 1Jn1ted Stat... B... apprehended December 8, 1HZ, and iD-
~errogated an the basis of SIS 8UrT8i11anoe reports from Buenos Air...
(44-2MO1)
PerD&ndo Llpkau Balleta... arrested Deoe8b8r 1, 19.2. .. .
German agent and ooDtes..d that his de.tination was K8x1oo, from whiCh
country he was to report through drop boxel, U8ing .eoret iDk. (8.-2061.)
Joaquin Ruil Co8,,8oooohea, SeoaDd Offioer aboard the sa 8a&BO
DB RORNOS~, was arre.~ed at !rtDidad juguat 21, 1945, at which time he ad-
m1 t~ed that he had been in the .emoe of the G~8 for a oon8iderable
period. !he ooo..ion for hi. arr..t w.. the di800very of a radio trana-
Jait'ter hid48D. in tJ1. ..oond OW8 'b8.r of the .hip, though it :8 ter d...eloped
that Rui. apparently had nothiDc to do with 8eore'ting the radio 'ther..
(64-26358)
Andrea Blay P1grau. Paraguayan CODBul GeDeral to BaroelaD&. ..a
arre.ted at ~riDid&d while en route to BueDo. Aires. on October 21. 1942.
He oontessed that he had reoeiTed passage money troa the Ger88n1 When 1B
need. and bec8iDg indebted to 'them. had -Creed to f'umish iDtoratioD fro.
Bueno. J.ire. regarding .6.111ed shipping to aid tbe G8rMD8 1B their 8U't8arim bl
warfare. 'then Tery 8Uooe..tul. Be... to be oODDeoted with 'the e.piouage
riDg ot General PriedriCh wolt. Be earried a letter tor K.Duel Perez Gero1a
and - aDo'th8r tr08 Joaquin Batloon ter Joee Valle.. (84-20393)
(S)
S~~I:e;{
5b9

b~
and .fr~ the Bureau in the EFE Case and Radio Station Lm,
showing his U80Ciation witl1 Jose Jiella Altagmne, prClDinent ssggl8r in
Buenos Aires e. (64-20393; 64-23891)
c.car Liehr, an Argentjne National, was arrested June 2, 1943,
at Trinidad aboard the "CABO DE BumIA ~.AmAtt while en route to Buenos
Aires aa a German agent. (61.,.24787)
Kamlel Perez Garcia was arrested at Trinidad on .Auguat 6, 1943,
en r~te to Spain. He was Falange Security Officer in Ute Spanish ~ssy
at Buenos Aires and chief contact be ween General Friedrich Wolf, Germar.
Air Attache, and espi~e couriers aboard Spanish ships. Garcia was en
rO\1te to spain on a brier visit and to 88alr8 a cipher _chine from Germany
for Wolf. (65-20393)
Juan Sindreu Cavatorta, an Argentine, 'Was arrested August 19,
1942, while en rwte to Buenos Aires as an agent for tJle Germans. He had
formerly been ~ fiier witll tbe Spanish R8Pl1blican Air Force in Spain, but
had been repa"",-1at8d to Argentina U1 1937 before tlle end of the SpaniBh
Revolution aM had becane a hat-maker. In 1940 he bad re'b.lrned to Spain.
(64-24498)
Jose Santiago Rogelio Stevens, of' th"uguayan bir'tJl, was arrested
JulY' 31, 1942, aboard the -CABO DE HmNOO. en r<Xlte to 
…[truncated]