819.52G31/6: Telegram

The Acting Secretary of State to the Chargé in Panama (Flexer)

22. Your 35, May 19, 2 p.m. and 37, May 23, 11 a.m. The Swedish Minister here has inquired of Wallenberg through the Swedish Foreign Office as to whether the German group was acting as a screen for the German Government. The Swedish Minister has received a reply from Wallenberg reading substantially as follows:

“Agent at Panama in a telephone communication reported that purchase was being supported by German Government. Am unable to confirm the report.”

The interest of this Government in ascertaining the facts in the matter as well as the concern that would be caused by the transfer of the property to a German group having the support of the German Government was discussed this morning with the Panamanian Minister. The Minister stated that he would immediately send a telegram to his Government giving it a résumé of the information now available and requesting it to endeavor to develop further information as to the support which the German Government may be giving the German interests. The Minister is also informing his Government that you are being instructed to furnish additional information if requested by the Panamanian Government.