It will be noticed that the memoranda contain information regarding the
individuals suspected of having connection with these espionage groups
which has not been reported to the Department. This information, as well
as names of additional suspects, has only recently been received. In
spite of the fact that Friedrich Kempter (Koenig) refused to identify a
photograph of Hans Napp, additional information recently obtained
identifies him more clearly as being identical with Berko of the LIR–MAX
group, and the Embassy believes more strongly than ever that Hans Napp
is the person involved. For example, it has been definitely established
that Hans Napp is an agronomist by profession and that in this capacity
he has been manager of several estancias in
Argentina and Uruguay.
From newspaper articles the impression has been gathered that the
information concerning the PYL–REW group has been presented to the
Chilean Government. If this is the case, the Department may desire to
consider the possibility of enclosing with the memorandum on Group IV a
few of the telegrams sent over station PYL–REW. This would strengthen
the cases against Herman Bauer (who is closely connected with Heriberto
Schwartau Eskildsen (Enrique) and Friedrich Tadeo von
Schulz-Hausmann.
The contents of the enclosed memoranda have been compiled from the files
of this Embassy and from local sources. It is realized of course that
this information may be subject to revision or addition upon the receipt
of further reports on the same subject from the Federal Bureau of
Investigation and from the Embassies in Rio de Janeiro and Santiago, but
the opportunity is taken of submitting the available material at this
time in order to save as much time as possible.
[Enclosure]
Drafts of Memoranda on German Military Espionage
in Argentina
The German military espionage service in South America, operating
under the orders and instruction of the German High Command, is
known to be using at least four groups of espionage agents in
Argentina. These four groups are not isolated entities; they work
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in connection and in
collaboration with similar groups which have been established in
varying degrees of importance in almost all the other American
Republics. Formerly Brazil was the most important scene of
operations of these groups, but due to recent restrictive measures
in that country, they lost most, if not all, of their agents and
equipment. Those few agents who escaped arrest went into hiding or
fled to neighboring countries. It is known that at least two of them
are in Argentina at present. Since the punitive measures taken by
the Brazilian Government, the German High Command has come to look
upon Argentina and one other American country as the new
headquarters for its espionage organizations.
Through information regarding the activities of these agents which
has come to the attention of the Government of the United States it
has been possible to learn that the Germans have used couriers on
Spanish and other neutral ships, the diplomatic pouches, and the
facilities of ordinary mail for transmittal of their information
between the United States and South America. The information sent by
mail is usually forwarded in secret ink or in cleverly worded
business or social letters. This information, is then transmitted
from the South American countries by clandestine radio to the German
High Command in Germany.
In carrying out their espionage work the Germans endeavored to
secure, and in some instances actually secured, the services of the
citizens of South American countries. The Germans have also resorted
to bribery of police and other government officials in their
espionage activities. They have attempted to place friendly
officials in military and other delegations which have gone from the
Latin American countries to visit the United States. These German
agents also use secret post office boxes, which are usually secured
under Spanish names and changed frequently. They also utilize the
post office boxes of Nazi party members and of German commercial
companies for the purpose of transmitting espionage reports.
A number of the main espionage agents have diplomatic status and are
actually attached to the German Embassies as attachés. Particularly
is this true of the Naval and Military Attachés. It is also noted
that some of the principal espionage agents are Nazi party leaders
and are known as such.
The Germans made extensive use of the Italian Lati Trans-Atlantic air
line for the transmission of espionage mail and for travel of
espionage agents until the Lati Line was suspended on December 18,
1941.53 The German Embassies have not hesitated to
utilize the services of these clandestine radio stations in
emergencies and it is
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definitely known that the German Embassy in Rio de Janeiro used the
station belonging to Group I for sending messages to the Foreign
Office in Berlin.
The chief types of information transmitted by these clandestine
radios are: ship arrivals and departures; movement of warships of
the fleets of the United States and England; information on imports
and exports of the countries covered; information on United States
armament and industries; political information on the area covered;
weather reports; movements of airplanes of the United States,
especially those being ferried to Africa via Natal; information
concerning the operations of the Pan American Airways; information
transmitted on behalf of the German Embassies; information on war
preparation of the United States; information on the Panama Canal;
information on the activities of the United States in connection
with military and other aid furnished to the countries of the west
coast of South America; information on the defense measures taken by
the Latin American countries; details of information concerning the
British base at Trinidad; information concerning maritime
regulations and instructions of the United States; information
regarding sabotage on English ships; military information concerning
the United States, particularly concerning torpedo nets and naval
installations; and information on convoys of merchant vessels.
The work done by these agents has been extremely accurate and
especially harmful to the Allied powers as well as to the neutral
American Republics. Millions of dollars worth of ships, merchandise,
petroleum, munitions and foodstuffs have been sent to the bottom of
the sea due to the efforts of these agents. Much of this property
belonged to countries still on friendly relations with the Axis
powers. These agents are also directly responsible for the loss of
the lives of hundreds of men, women and children who died when their
ships were destroyed by German torpedoes.
There are attached four memoranda setting forth in detail information
concerning the identities and activities of the individuals guilty
of participation in the foregoing activities which took place in
Argentina. Each memorandum covers a separate group of German
espionage agents operating under orders of the German High Command.
For want of a better name, these groups are referred to as Group I,
Group II, Group III and Group IV. It is pointed out that not all of
the guilty persons have been located or identified and only the
names of those are included regarding whom there is a reasonable
certainty that they are to some degree guilty. These groups include
the names of the following persons, many if not all of whom used
code or cover names to disguise their activities:
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- Group I
- Hans Napp
- Ottomar Müller
- Dietrich Niebuhr
- Jose Mella Alfageme
- Walter Freiwald
- Elvezio Ortelli
- Georg Hohenstein von Lug
- Jorge Enrique Richter
- Gustav Utzinger
- Walter Giese
- Martin Schneider
- Martin Schwartz
- Felipe David Humber
- Enrique (Willy) Haupt
- Domingo Sozzani
- Victor Amilcare Testoni
- Otto Hein
- Egon Bunze
- Ricardo Hoffmann
- Compañia Din
- Group II
- Dietrich Niebuhr
- Thilo Martens
- Hans Bieben
- Albert Wassmann
- Viktor Mann
- Group III
- Rolf Edmund Stickforth
- Rodolfo Hepe
- Dr. Heinz Treutler
- Group IV
- Herman Bauer
- Friedrich Tadeo von Schulz-Hausmann von
Szymonsky
- Ludwig Buchwald
- Wilhelm von Pochhammer
As evidence of the activities of these agents, there are also
enclosed copies of some of the messages which these groups sent to
Germany via illegal radio transmitters.54 These messages are sorted
according to the group which transmitted them. Inasmuch as the
Germans probably are not aware that copies of these messages are in
the possession of the Government of the United States, it is
requested that they be regarded as strictly confidential and be
treated with the greatest of care.
It is regretted that due to military exigencies it is not possible to
enclose copies of the messages sent by Group IV, but it is hoped
that copies can be supplied in the near future.
In addition, since the ramifications of the espionage groups in
Argentina are directly connected with the success of the war effort
of the United Nations and directly affect the security of the bases
which the Allied powers have in various sections of this hemisphere,
it is respectfully requested that the Argentine Government keep the
Government of the United States informed as to the progress and
findings of the action that Argentine Government takes regarding the
matter.
Espionage Group I
This group of espionage agents operates in Argentina under the
direction of the German High Command and in close cooperation with
Captain Dietrich Niebuhr, German Naval Attaché in Buenos Aires.
Although Group II is believed to be the most important espionage
group as regards the whole of South America, Group I
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appears to have been the most active
in Argentina. Its present chief appears to be one Hans (Juan Jacobo)
Napp, who uses the code name of Berko to disguise his activities. He
appears to have centered the headquarters of his activities in the
Compañia Din, Calle Reconquista 331. Guillermo Scheckenbach and
Osvaldo Hirner may be operating with Napp. Scheckenbach is owner of
the Viena Hotel, Calle Lavalle 368, where the chief agents of Groups
I and II of Argentina and Brazil met for several conferences in
1941. Napp once resided at the Hotel Viena. Osvaldo Hirner is
reported to work under the orders of Scheckenbach and is located in
La Plata where he obtains information regarding the arrivals and
departures of refrigerator ships of the Allied nations. He was
formerly an employee of the police department in La Plata. He is
reported to have been responsible for the sinking of the Andalucia Star by a German submarine soon
after it departed from La Plata a few weeks ago. Scheckenbach is
reported to be one of the chiefs of port espionage in Buenos
Aires.
Group I, which is believed to have an illegal radio transmitter in or
near Buenos Aires, concerns itself with transmitting information of
a strategic nature to the German High Command, this information
including reports on boat arrivals and departures; movement of
warships of the fleets of England and the United States; imports and
exports of the countries covered; United States armament and
industries; political information; weather reports; the military and
naval activity of Brazil; movements of airplanes of the United
States, especially those flown to Africa; and all important matters
of interest to the German Government.
Attached is a résumé56 of the activities of some of the individuals
believed to be involved in the affairs of Group I.
Espionage Group II
Group II, as well as the other three espionage groups known to be
operating in Argentina, had its headquarters formerly in Brazil, but
with the recent widescale measures of the Brazilian Government most
of its agents in that country were arrested and the seat of its
activities were transferred to Argentina. This same thing is true of
Groups I and III.
The local chief of Group II is believed to be Captain Dietrich
Niebuhr, German Naval Attaché in Buenos Aires. He uses the code name
of Diego to cover his activities in this group. Although Group II is
believed to be practically as large in its ramifications as Group I,
it has not been possible to date to uncover as many of its agents.
However, it was very active and has sent much information of a
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strategic and harmful (to
the Allies) nature to the German High Command. It is believed to
have a clandestine radio transmitting station at its disposal in or
near Buenos Aires.
The information Group II transmitted to its superiors in Germany
included: Boat arrivals and departures (but not as much as Group I);
movements of United States war planes; exports and imports;
movements of warships of the United States and England; military
activities and preparations of the Brazilian Government; operations
of Pan American Airways; political information; and information on
war preparations in the United States.
Attached is a résumé57 of the activities of some of the individuals
believed to be involved in the affairs of Group II.
Group III
Group III of the German espionage agents acting in Argentina under
the orders of the German High Command is not indicated as having
been as active as either of Groups I, II and IV. However, very
little is known about this group or its leaders, and it may be for
this reason that its activities appear to be less than the
activities of the other groups. Suffice it to say, however, that the
arrests of the principal characters of the Brazilian branch of this
group have revealed that it did have an important organization in
Argentina, transmitting information regarding ship movements and
other Allied military activities in the hemisphere to the German
High Command in Germany. At least one of the members of the
Brazilian branch of Group III escaped arrest and fled to Argentina
where he is now in hiding. It is possible that either Rodolfo Hepe
or Rolf Edmund Stickforth may be able to clear up the mystery of his
whereabouts. His name is Dr. Heinz Treutler.
The principal information transmitted by Group III concerns boat
arrivals and departures; information on the British base at
Trinidad; movements of British and American warships; maritime
regulations and instructions of the United States; movements of
American aircraft; sabotage on British boats; military information
concerning the United States and particularly torpedo nets and naval
installations; and information on convoys of merchant ships.
Espionage Group IV
Chief of this group in Argentina, and acting in close cooperation
with the German Embassy in Buenos Aires and the other local
espionage groups, is Friedrich Tadeo von Schulz-Hausmann von
Szymonsky. The principal information transmitted by this group
consists of data on boat arrivals and departures; information on the
activities of the United States in connection with military and
other aid furnished
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to the
countries of the west coast of South America; information relating
to the exports of the United States; information on the defense
measures taken by the Latin American countries; general information
from the United States; and political information, chiefly relating
to Chile.
