862.20210/1982: Airgram
The Ambassador in Argentina (Armour) to the Secretary of State
[Received October 22—3:25 p.m.]
A–276. This airgram is a confirmation and amplification of the Embassy’s telegram 1989 of October 13, 11 p.m.45
Following observations are made for the Department’s consideration in studying the advisability of turning information regarding clandestine radio groups over to the Argentine Government for appropriate action.
[Page 212]There is reasonable certainty that the Germans are aware that we are acquainted with some aspects of their local military espionage set-up. Local press despatches have carried in part details of confessions in Brazil of Friedrich Kempter (LIR–MAX), Gustav Albrecht Engels (CEL–ALD) and Nils Christensen (CIT). In such despatches there was included information that Americans were responsible for the arrests of agents in Brazil, that codes had been captured when arrests were made (i. e., La Razón stated that one code was based on All This and Heaven Too), that information regarding Allied plane, ship, and troop movements had been sent by them to Germany via clandestine radio.
On the few occasions that we have requested action on the part of the Argentine authorities in deporting Axis agents Argentina has complied, although slowly. Examples are Walter Giese (Greif of LIE-MAX), and Hubert Kemper. On another occasion Immigration Department had granted immigration permits to Hans Emil Andress, Ewald Koch and Kurt Bruening, suspected Axis agents in Peru. Upon representations this Embassy, Ministry Foreign Affairs canceled their permits within 24 hours. However, we have been careful to request action in only the most flagrant cases, and not the cases of clandestine radio groups. Also the Argentines have been extremely slow to take action, even when evidence overwhelming. It was 3 months before Giese was deported and some 8 months before Kemper was interned, an internment which is not yet thought to be satisfactory. In addition, Special Investigating Committee of Chamber of Deputies has presented Government with much more detailed and convincing evidence regarding other local Axis agents. Government has almost completely ignored Committee’s findings. This has been main factor dictating Embassy’s policy of caution in recommending withholding of information regarding local radio groups from Government.
However, much can be gained by presenting this information to the Foreign Office, signalizing that Argentina’s neutrality has been compromised by these agents, and requesting that appropriate steps be taken to apprehend and punish the persons involved. This would serve purpose of illustrating that neutrality is not enough and that there does exist in Argentina subversive organizations which are using the country as a base for carrying out operations against Argentina’s interests as well as the interests of the other American nations. The effect it would have on the Argentine people and Congress would be tremendous. At the same time it would constitute a direct answer to the Argentine Government’s request for specific instances of local German espionage. Also Germany’s reaction to possible Argentine punitive measures probably would be of interest.
Although it is very likely that due to developments in Brazil and [Page 213] Chile the Germans have dismissed some of their most exposed agents and have changed their systems somewhat, it is practically certain that the arrest or exposure of their leaders here would entail a complete reorganization of their local set-up with a consequent 6 months or more interruption in their reporting services.
It is thought that to submit as convincing an argument as possible it would be necessary to attach to the list of agents a general history of their activities. Of inestimable benefit in this direction would be the inclusion of a few copies of some of the translations of the intercepted clandestine telegrams. These would preferably include a few illustrating the transmission of reports regarding ship movements (including Argentine ships), the ones regarding the bribery (or attempt at bribery) of an Argentine army officer by Ottomar Müller (Otis) of the LIE–MAX group, the one about Walter Freiwald and the plan to attach time bombs to the bottom of ships in Buenos Aires harbor, the one regarding the establishment of a clandestine radio transmitter in Buenos Aires by Miiller, of his dismissal and replacement by Hans Napp (Berko), of Napp’s visit to the German Naval Attaché for instructions, how the clandestine transmitter was obtained from Siemens, of the post office cover boxes local agents used, and other messages of similar character. Of course, no mention would be made of the persons or messages connected with the CES–NOI group, RDN group, PYL–REW group, or the German diplomatic messages. Only those persons and telegrams connected with the CIT, CEL–ALD, HTT and LIE–MAX groups would be mentioned. It is taken for granted that the Germans have continued operations on the basis that the Americans have obtained copies of the codes and confessions of the persons connected with the last mentioned groups.
The Embassy would appreciate the opportunity of drawing up into practical form a draft of the representations (with all supporting memoranda and documents) to be made to the Ministry of Foreign Affairs; this draft to be submitted to the Department for its approval before action being taken.
In summary it is pointed out that this draft would contain no information which the Germans presumably do not already realize we have in our possession. It is possible, of course, that the Germans do not realize the Embassy is acquainted with the names, identities and locations of the persons implicated as being agents.
In this connection it would be appreciated if the Department could have the Embassies at Santiago and Rio de Janeiro and the FBI in Washington furnish all pertinent information which they think would be helpful for inclusion in the draft. For example, two Integralistas were recently arrested in Brazil. These two men confessed that they had been in contact with Thilo Martens in Buenos Aires. [Page 214] Thilo Martens has long been suspected by this Embassy as being identical with the Thilo mentioned in the CEL–ALD group. If for no other reason, copies of these two confessions would be of great benefit for the carrying out of local investigations.
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