826.00/2102: Telegram

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

[Extracts]

472. For Under Secretary,61 Duggan,62 Bonsal63 and Lyon.64 Apropos my observation to Fernández on release from incommunicado of some prisoners who had been interrogated, interesting to note that yesterday the judge reversed himself and ordered them held incommunicado. Suspect judge’s last action on orders from President.

2. Sensational arrests yesterday. Gerardo Krebs, Kurt Veitl, and Dr. Juan Westermeyer of Staff of Military Hospital were arrested and judge ordered search of their houses. At the doctor’s office at hospital they found 20,000 American dollars in bills which he had buried in his garden until the Timmermann65 exposure led him to transfer the money to his office. At homes of Krebs found 300,000 pesos which he admits receiving from Timmermann and at Veitl’s house 20,000 more American dollars. Understand list of those to receive money left by Von Bohlen, Air Attaché German Embassy, is found, and involves numerous persons and press implies some of these important.

… Last night investigations found 45,000 U.S. dollars hidden at little town of Tabo near Santiago in house owned by Timmermann; and at Timmermann’s fundo in Malloco they found 20,000 Argentine pesos and 300,000 Chilean pesos and interesting documents.

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Bowers
  1. Edward R. Stettinius, Jr.
  2. Laurence Duggan, Director, Office of American Republic Affairs.
  3. Philip W. Bonsal, Deputy Director, Office of American Republic Affairs.
  4. Cecil B. Lyon, Acting Chief, Division of West Coast Affairs.
  5. Bernardo Francisco Timmermann, confessed head of the Nazi spy ring in Chile.