862.20225/761: Telegram

The Ambassador in Chile (Bowers) to the Secretary of State

1892. Supplementing seemingly extempore statement published yesterday accompanying news reports from Montevideo and extensive extracts from memorandum handed Chilean Government June 30 concerning Axis espionage activities in Chile, whose text was made public by the Emergency Advisory Committee on Continental Defense, Minister of Interior Morales Beltrami furnished to the press last night an official statement published in full today. Principal points follow:

Given memorandum obliges Chilean Government to make a statement on the subject and to take steps which would otherwise have been postponed until a more appropriate time. The memorandum transmitted to Ministry of Interior by Foreign Minister July 8 but steps had already been taken to locate clandestine radio transmitter in Valparaiso and certain other data were already known to Chilean Government. During July the Minister of Interior by express authority of President was engaged in organizing investigation service competent to handle such matters and memorandum served to accelerate organization so that in August the chief of the service received instructions to exhaust all means to obtain proof of the allegations; in October the efforts were successful and a powerful illicit radio transmitter [Page 238] was seized and complicity of numerous aliens established; these were detained at the disposition of the Court of Appeals of Valparaiso. The Government’s investigations are not yet finished since it is desired to establish all the connections and ramifications of the espionage web; at the same time the Government wished to have the courts establish certain facts beyond a doubt in order to avoid criticism that steps had been taken without adequate proof; for this reason the Government has taken steps to ascertain what officials gave out information prematurely to the Valparaiso press about a week ago concerning the measures taken there; the publication of the memorandum has precipitated events in a way that the Minister of Interior had attempted to avoid and for this reason he is compelled to make known to the public steps taken by the Government which it might have been better to conceal for a few days more; the expulsion decrees prepared by the Government on November 2 when the complete data concerning the trial in Valparaiso were at hand will be carried out now that no further reason for secrecy exists in view of the wide publicity given the matter; consequently the Government has issued decrees expelling from the country the following German nationals for the reasons given reserving the right to adopt additional measures when the pending investigations are terminated: (1) Hans Friederich Hostenberger, proprietor of the farm where transmitter was operated; he is port captain of the Compañía de Transportes Marítimos. As he has been found guilty his expulsion will not take effect until final sentence is pronounced. (2) Johannes Abries Peter Szeraws, technician in charge of transmission. He is an ex-member of the crew of a ship interned upon the outbreak of the war. He is residing illegally in Chile. Is at present a fugitive and his whereabouts unknown. (3) Hans Blume Neumann, the person who ordered transmission. Former manager of the Compañía Transradio in Valparaiso. At present code clerk of the German Embassy in Chile. (4) Heinrich Reiners Mahnken, directive head of the espionage organization functioning in connection with the transmitter. Is at present in Argentina. (5) Bruno Dittmann Schluter, manager of the Compañía de Transportes Marítimos, center of espionage in Valparaiso. Is this successor of Friedrich von Schulz von Hausmann considered as the chief of espionage in Chile. (6) Walter Irritier Adler, intimate friend of Reiners with whom he shares a post office box. His close friendship with preceding and his complicity in the illicit radio transmission has been established. (7) Otto Buchholz Hunold, in whose place of business the condensers and transformers of the transmitter were discovered. Former employee of the Compañía Transportes Marítimos. (8) Horst Kettler Schuke, employee of the code section of the German Consulate in Valparaiso gave orders for the transmission. (9) Jorge Hasseldeck Schwerdfeger, assistant manager [Page 239] and agent of the Compañía de Transportes Marítimos and intimatelyconnected with Dittmann. (10) Emilio Simonsen Wiese, who by order of Hofbauer was in charge of hiding the transmitter in various places. He is also warehouseman of the Compañía de Transportes Marítimos. (11) Juan Cuneo Foppiano, Italian in whose house the transmitter was found hidden. (12) Catalina Berg Hartmann, stenographer in the Compañía de Transportes Marítimos who sent and received Dittmann’s correspondence concerning transmissions.

Repeated to Buenos Aires.

Bowers