800.20210/1619

The Ambassador in Paraguay (Frost) to the Secretary of State

No. 1286

Sir: I have the honor to refer to the Department’s circular airgram of June 21, (1943) 11: 30 a.m.25 requesting that the Department be informed of specific cases in which Axis business institutions have directly or indirectly engaged in or financed espionage, sabotage, propaganda and related activities.

There is transmitted herewith a memorandum25 prepared by the Acting Legal Attaché of this Embassy26 on July 27, 1943, which was designed to respond to the Department’s request. The memorandum has not been forwarded earlier because of the impending arrival of Mr. Raymond W. Ickes of the Alien Enemy Control Unit of the Department of Justice. It was also anticipated that Legal Attaché Frank G. Siscoe would return from Washington; and that possibly some specific cases could be discovered which would be more responsive to the Department’s requisites.

The memorandum does show, however, that the black listed firms here are furnishing a large part of the financial support of the Asociación Alemana de Ayuda Social, the parent organization of most German activities here. There is as yet nothing feasible to show that the German bodies thus supported are engaged in espionage, sabotage or propaganda, and indeed it is the impossibility of demonstrating this which has been the principal factor against inducing the Paraguayan Government to take definite steps against the Germans in Paraguay.

Respectfully yours,

Wesley Frost
  1. Not printed.
  2. Not printed.
  3. Charles E. Apple.