862.20235/11–646
The Secretary of State to the Ambassador in Argentina (Messersmith)
No. 378
Sir: Reference is made to despatch No. 1166 of November 6, 1946 concerning the exoneration of Ludwig Freude by the Argentine Government and to the attached summary of the evidence concerning Freude’s activities on behalf of the Axis.
The testimony of the German General Wolf and the German Military Intelligence agent Schlueter establishes that Freude was designated as one of the custodians of German Embassy espionage funds in anticipation of Wolf’s departure; that Freude’s instructions were to pay such funds to persons in the possession of a secret password; and that in the interim between Argentina’s severance of diplomatic relations with Germany and Argentina’s declaration of war against Germany, Freude in a very secretive manner and on at least three separate occasions made payments to Schlueter who used a substantial part of the funds for espionage purposes.
. . . . . . . . . . . . . .
In sum, the exoneration of Freude cannot, in the light of the facts, be regarded as a step in the direction of compliance by Argentina with its international agreements. On the contrary, it can only be interpreted as a lengthy stride in the opposite direction. If, however, as you suggest, the Argentine Government has acted in this matter in entire good faith and no particular importance is to be attached to former Foreign Minister Cooke’s statements that Freude cannot be touched, there would appear to be no reason why a further approach should not be made to the Argentine Government on the basis of the evidence set forth in the attached memorandum.45
Very truly yours,
- Not printed.↩