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Mar 1933 to Apr. 1945, The Roosevelt Years 2nd Edition, part 15

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  • DickMcManus
    Today Jews are outraged by attempts to memorialize individual Christians lost in the horrific system, since most Catholics and Protestants in the camps were
    Message 1 of 1 , Jul 8, 2013

      Today Jews are outraged by attempts to memorialize individual Christians lost in the horrific system, since most Catholics and Protestants in the camps were the loathsome administrators and guards.


      Stripped of her last papal states in 1925, the Mother Church lay bankrupt until Benito Mussolini came to the rescue. In exchange for the pope's support, Il Duce made an up-front payment equivalent to about $100 million and instituted state salaries for the Italian clergy. Best of all,

      Mussolini restored Vatican City's nationhood. Today's Vatican has its roots in fascist largesse.


      On e-tenth of the income tax paid by German Catholics would flow from Hitler's treasury to the church accounts.  This averaged the equivalent of $100 million per year, approximately $1 billion over the life of the Third Reich—many times that in today's dollars. Because the grateful pontiffs held the same absolute control over the church's funds that the Führer exercised over the German treasury, it can be fairly said that Pius XI (reigned 1922–1939) and Pius XII (reigned 1939–1958) were on Hitler's payroll.  Ten percent of Protestants' tax payments was diverted to their churches too. Hitler needed no loyalty oaths from Germany's ministers, who realized the equivalent of about $2 billion over the life of the Reich. Flush with wealth, the churches invested heavily in fascist enterprises, many of which would manufacture weapons, employ slave labor, or both.


      A third of Germany's population, the Roman Catholic Church had the potential for enormous influence. Daring action by Pius XI, Pius XII, and other Catholic leaders could have changed history, preserved democracy, and saved millions of lives.  The Catholic Church controlled the largest, most experienced propaganda machine in the world. Every pope understood the importance of ceaseless, drumbeat promulgation of an idea in effective campaigns. Yet so few and so feeble were Vatican thrusts against the Holocaust.  Given the extent of Rome's international intelligence apparatus, Pius XII must have known at least in outline what was taking place in the camps. Because of the international breadth of his organization, his neutrality, and his potential as a moral leader, he was best positioned to reveal, condemn, and act against the Holocaust. Even if he did everything his defenders contend he did to save hundreds of thousands, the fact remains that the man who considered himself the supreme arbiter of moral values on Earth proved unable to save millions more when he alone had the potential tools to get the job done.   Pius XII failed in part because he feared too much for his flock and its victims, fearing a backlash as he underestimated the church's power to bend Nazi behavior. He failed in part because, a seasoned diplomat, he held egotistic dreams of negotiating an end to the war himself. But he also failed because of Catholic doctrine, because he hated democracy as well as Bolshevism, and because he cared too little about Jews and atheists.


      There is blame to spare for the calamity of World War II. Some atheists supported leftist dictatorships; some scientists advocated racial eugenics and otherwise facilitated tyranny. But in no way was Nazism the invention of Europe's atheists. Their influence was severely limited

      and at most indirect. (To the degree that European atheists tended to support communism, they opposed fascism.) Nazi ideology grew and thrived in a land dominated by Christianity.

      Because Nazism has left so horrific a stain on history, Christian apologists struggle to lay its causes in the lap of atheism. This is historical spin of the highest order. Mein Kampf never mentions evolution, Darwin, or Nietzsche. "Science" justified Nazi racism the same way pseudoscience "backs" creationism. Far from atheism spawning a Nazi machine that proceeded to assault Christianity, atheists and their organizations were targeted and destroyed while German churches not only survived, but thrived on Nazi graft. That atheists are not regularly listed with Jews, Roma, homosexuals, and other principal targets of the Holocaust betokens an ongoing injustice.


      The hard truth is that by 1945 80 percent of Europe's Jews were dead, their community all but cleansed at the hands of people of Christian faith or heritage.


       Some 2.5 million European Protestant soldiers and civilians died; the Catholic toll, which included people from other countries where Catholics were not in the minority as they were in Germany, was broadly similar. Perhaps half of all Soviets were Orthodox, and so their Christian dead amounted to fifteen million or more.


      Thousands of Jews were saved by valiant Protestant and Catholic clergy throughout occupied Europe—among them the future Pope John XXIII, a true friend to the Jews.




      Gregory S. Paul is an independent evolutionary scientist and paleontologist with interests in the relationship between science and religion. His books include Dinosaurs of the Air(Johns Hopkins University Press) and Beyond Humanity(coauthor Earl Cox, Charles River Media, 1996).





           The story of the Nazi underground in South America goes back to the days when Hitler first began eyeing the sparsely settled grasslands of Patagonia as an ideal spot for his Lebensraum project. He envisioned a pampas empire of German towns, farms, and ranches. He dreamed of a great agricultural/ industrial colony on the other side of the Atlantic and vowed to make it the richest of all Germany's territorial possessions. Argentina already had a large German minority, sympathetic to the ambitious goals of the Third Reich. German industries controlled much of the country's economy. German officers held high posts in the Argentine military forces. Almost every city and town had its German-Argentine "friendships societies" in imitation of Hitler's storm troops and youth groups. Furthermore, many officials in the Argentine federal government were outspoken Nazi sympathizers. Not the least of these was a blustering, rabble-rousing Army colonel named Juan Domingo Peron. Peron paid a personal visit to Hitler in the spring of 1940 and was invited to accompany the Fuehrer on his triumphal march into Paris. Vastly impressed by the mighty Nazi war machine, Per6n promised to set up a Nazi-style state in Argentina if Hitler would help him undermine the democratic government. Hitler promptly agreed. In the next four years, the Reich poured nearly $1 billion dollars into Argentina. Some of if was to finance Peron's power play. Some went to purchase thousands of square miles of fertile grasslands in Patagonia. And some was set aside for Nazi leaders, in case they should have to leave Germany in a hurry. In 1943, S.S. Gen. Wilhelm von Faupel and Willi Koehn, chief of the Latin American section of the German Foreign Office, arrived in Argentina to assist Peron and his "colonels' group" in overthrowing the government of Ramon Castillo. Hitler's envoys traveled by U-boat from Cadiz, Spain. Slipping through the Atlantic blockade, the submarine surfaced off the Argentine coast near Mar del Plata.


           The submarine also delivered boxes contained millions of dollars in gold, jewelry and art treasures stolen from occupied countries. The loot was to provide a war chest for Peron and a nest egg for Hitler's henchmen. General von Faupel also brought a trinket for Per6n's beautiful blonde wife, Eva. When they met in Buenos Aires, he fastened a diamond necklace around her throat as "a little token of the Fuehrer's esteem." Masterminded and financed by the Germans, the Argentine putsch succeeded. Peron became vice president and turned Argentina into the most active Nazi center outside Germany. Soon U-boats were making regular runs between Spain and Argentina, transporting hundreds of Nazis to their new base of operations. General Arturo Rawson, nominal leader of the army coup that toppled the civilian government, admitted to a US Embassy official in 1944 that Nazi technicians and party brass were setting up shop in his country. On January 22, 1945, SS General Heinrich Himmler notified his police, Waffen SS and intelligence commanders that "certain party leaders" soon would be sent abroad on a secret mission. The following month, 340 high-ranking Nazis were ordered to Argentina to pave the way for the thousands who would soon follow. Hitler still hoped for some miracle to stem, the advancing Allied tides, but his top aides were more realistic.


            Martin Bormann, Propaganda Minister Goebbels and Labor Minister Robert Ley met in the Berlin bunker on April 12, 1945, and drew up secret plans for a postwar Nazi underground, with headquarters in Argentina. Ludwig Freude, Argentina's No. 1 Nazi, was placed in charge of the initial phase of this project. After the war, while Bormann was leading a guerrilla army in the Bavarian Alps, Freude found Argentine homes and jobs for hundreds of important Nazis, many of them wanted war criminals. The Allies demanded Freude's repatriation to Germany, but Peron's answer was a flat "no."


           US State Department issued a 32,000-word Blue Book that accused the Argentine regime of collaborating with the Axis enemy, espionage, harboring Nazi war criminals and making a mockery of its pledge to the United Nations to "reaffirm faith in human rights, in the dignity and worth of the human person." "In Argentina," the Blue Book said, "the Germans have constructed a complete duplicate of the economic structure for war which they had in Germany." The Blue Book created a furor in the US Congress and all Latin American governments. Its pro-Nazi charges almost severed diplomatic relations between Argentina and the United States. Specifically, it accused the Freudes of managing Nazi-Argentine affairs and Peron of giving the Nazis a western hemisphere base for building a new war machine. Peron ignored the State Department blast.


           Elected President, Peron promptly set up a Hitler-style dictatorship, abolished civil liberties and surrounded himself with an impressive array of Nazi talent. A list of his top appointments read like a Who's Who of the Third Reich. Former Nazis bossed the police, military, economic, diplomatic and propaganda branches of the Peron regime and virtually all other major departments. Some of his chief advisers were wanted war criminals. Some of the Nazis had entered Argentina illegally, but most came from neutral countries with forged identity papers and Red Cross passports.


           Ante Pavelic, the Nazi puppet ruler of Croatia, became boss of the Peronista secret police. On his staff at Buenos Aires Police Headquarters were Dido Kvaternik, his own former secret police chief, and several Gestapo graduates including S.S. Colonel Eugene Dollman, onetime Gestapo commander in Rome; Dr. Hans Koch and Dr. Hans Richner. Professor Willy Tank, "Hitler's favorite aircraft designer," was in charge of some 350 German technicians at the Cordoba research station where jet fighters for the Argentine Air Force were born. Tank designed and built the Pulqui I and Pulqui II, Latin America's first jet fighters. German air aces like General Adolf Galland, Luftwaffe commander in the Battle of Britain; Colonel Hans Ulrich Rudel and General Otto Bumbach served as Cordoba test pilots and Air Force advisers. Admiral Litzmann, former commander of German naval forces in the Black Sea, was adviser to the Argentine Navy. Under his unofficial command, it became the most powerful fleet south of the U.S. border. German generals whipped the Argentine Army into a goose stepping replica of Hitler's Wehrmacht, complete with jackboots and Nazi uniforms. German scientists worked on atomic research projects, trying unsuccessfully to build an Argentine A-bomb. Heinrich Doerge, former president of Hitler's Reichsbank of industry, was technical adviser to Peron's mighty Central Bank. Empowered to seize every bank deposit in the nation and approve every loan, the Central Bank held an economic axe over the head of every individual and business in Argentina. The Peronist diplomatic corps had such expert advisers as Dr. Karl Klingenfuss, Dr. Hans Theiss, Dr. Bruno Leist and Dr. Alfred Ragalsky, all former officials of the Nazi Foreign Office. Klingenfuss had been deputy director of Department Deutschland, which handled "Jewish affairs." Johannes von Leers, one of the most fanatic anti-Semites.


            US Army Intelligence has (had) individual files on some 20,000 Nazi-related figures.   The CIA...use[d] former Nazis as informers after World War II. OSS systematically and deliberately recruited active Nazis by the tens of thousands, rescued them, hired them and relied upon them to serve American interests and purposes in postwar Europe. This was documented in 1988 with material obtained from the US government through the Freedom of Information Act by historian Christopher Simpson and published in his book. Blowback: America's recruitment of Nazis and its effects on the Cold War, New York:  Weidenfeld & Nicholson.


           As ODESSA would not operate as an escape route for much more than five years, Bormann suggested that the SS adminis­trators picked to coordinate and supervise the route also keep their eyes peeled for quick-money opportunities, with a view to returning the initial investment and having ODESSA operating in the black. Bormann started selling surplus arms to pay ODESSA's expenses.   ODESSA agents ranged throughout Europe and even behind the Iron Curtain. They bought and sold surplus American arms to Arab buyers seeking to strengthen the military capabilities of Egypt and other Middle Eastern Arab nations.   One British scrap dealer had become a millionaire in one year buying up old tanks, trucks, and assorted guns; selling some as scrap, reconditioning others for sale on the arms black market of those days. The British government began selling its surpluses openly. Other munitions dealers blossomed into prosperity and respectability as they bid low for high-cost items.

           Palestine was to be partitioned into a Jewish homeland, and they intended to de­stroy it at birth. But now Jewish buyers, funded from America and elsewhere, entered the marketplace. They were barred from purchasing guns and American surplus P-51 Mustang fighter planes by President Truman, and their only recourse for survival was to trade on the European black market, which, unknown to them, was coming rapidly under the control of ODESSA agents. However, the Jewish agency's buyers might have purchased from the devil himself if it meant survival of the small, defenseless nation, just come into being on May 14, 1947. The first pur­chase they made was in Czechoslovakia: 4,300 rifles, 200 medium machine guns with ammunition.   Also acquired were ten surplus Messerschmitt-109 fighter planes for $44,000 each, which in­cluded some spare parts, cannon, machine guns, bombs, and assorted ammunition. ODESSA agents handled this transaction in Prague, with the tacit permission of Moscow, which was to sponsor Israel as a homeland for Jews in the United Nations. Russia wanted British influence dissipated in the Middle East, and one way to do this was to get their foot in the door of the new Israel. Hence their sub rosa cooperation in Prague. The German agents wanted only to serve as "honest brokers" in an international arms deal.

           With the German fighter plane deal consummated, it was up to the Jewish buyers to get the planes to their new homeland. Messerschmitts have a range of only 400 miles, so flying them down to Palestine was out of the question. They might have refueled in Yugoslavia and Greece, but the British were being sticky about transport of unauthorized arms, and closed down this possibility. As a result, a former German airbase near the Sudetenland town of Zatac (formerly Saaz) became for a few weeks a Jewish airfield. Here two C-54 cargo planes flown by American contract pilots touched down, and Czech mechanics dismantled the fighter planes and stowed them into the big cargo aircraft, which thereupon took off for an airfield close by Tel Aviv. The operation was repeated many times over, until all ten fighters had been transported to Israel. The success of the airlift convinced David Ben-Gurion, who was to become the first prime minister of Israel, that the option taken on 15 more planes should be exercised.   (Nazi in Exile by Paul Manning, Chapter 7)   http://www.animalfarm.org/mb/7.shtml

           On June 16, 1948, President Truman became involved in the hunt for Martin Bormann. Robert H. Jackson, who had once taken a leave from the Supreme Court to serve as US chief prosecutor at the Nuremberg trials, wrote to the president that a quiet search should be made by the FBI for Bormann in South America.  The presidential authorization was given, and J. Edgar Hoover assigned the investigation to his most experienced and skillful agent in South America.

           The FBI obtained copies of the Martin Bormann file that were being held under strict secrecy by Argentina's Min­ister of the Interior in the Central de Intelligencia. When the file was received at FBI headquarters, it revealed that the Nazi (National Socialist) party's second in command, Bormann,  had indeed been tracked for years. One report covered his whereabouts from 1948 to 1961, in Argentina, Paraguay, Brazil and Chile. The file revealed that he had been banking under his own name from his office in Germany in Deutsche Bank of Buenos Aires since 1941; that he held one joint account with the Argentinean dictator Juan Peron, and on August 4, 5, and 14, 1967, had written checks on demand accounts in First National City Bank (Overseas Divi­sion) of New York, The Chase Manhattan Bank, and Manu­facturers Hanover Trust Co., all cleared through Deutsche Bank of Buenos Aires.

          Bormann was considered Adolf Hitler's right-hand man and was mentioned as a possible successor to Hitler, when the conflict ended.   The Nurem­berg War Crimes Tribunal sentenced him to death.  He had various sons, one of whom, an ordained Jesuit, circulated the story of Bormann's death in 1945, a lie calculated to put an end to any search for him.  Like other Nazi fugitives, he entered Argentina in 1948, coming from Genoa on a second-class ticket, with forged Vatican documentation. (This had all been made possible by an organization called La Esclusa, which facilitated the exit of various fugitives.)   Between 1943 and 1945, Bormann had maintained con­tacts with Heinrich Doerge (councilor of the Central Bank of Argentina), Ricardo Von Leute (Director of the German. Trans­Atlantic Bank), Ricard Staud, and Ludwig Freude-names associated with the annals of Nazi treasure.

          At the end of 1943, Martin Bormann prepared to put into force Operation Tierra Del Fuego, which involved transporting large quantities of gold, money, stocks, paintings, and other works of art to Argentina via submarine. However, owing to the staggering situation of the German armies, all terrestrial routes were cut off. Bormann therefore (counting on the collaboration of the Argentine government) decided that the transfer of this treasure should be accomplished via night flights from Berlin to Madrid and thence to Buenos Aires. (Even after the fall of Germany, submarines arrived at Mar de Plata and the vicinity of Patagonia and unloaded mys­terious merchandise.)

           In 1948, it was noted that he passed through Buenos Aires. Later he went to the city of Parana and stayed there until 1951.  Bormann moved to Santa Catarina, Brazil, where he was intensely active co­ordinating the activities of the German colonists in Paraguay, Argentina, and Brazil. However, all indications are that his per­manent residence is at Mato Grosso, where a large number of fugitives, refugees, and delinquents live. This is where Martin Bormann maintains contacts with couriers of the well-known organi­zation called La Arafla, which is dedicated to providing help for all Nazi fugitives. In fact, Bormann is known as the Fiihrer of South America, since, according to various versions, he made it possible for the Nazis to salvage a great deal of money, gold, valuable objects, and works of art, with the result that fugitives who escaped from the tribunals and prisons of Europe are able to live without major difficulty.

           In 1956 Martin Bormann was in Sao Paulo, where a large number of addicts of the Nazi philosophy were gathering, little knowing that they would not find here the accommodation they had so long enjoyed in Argentina.  In Sao Paulo, he linked up with members of the Odessa organization, which existed to give aid to former SS soldiers. Odessa was a branch of La Arana.

           During the following years, the situation with Bormann was quite different-he could rely on the enormous amounts of money he had invested in different firms, and therefore, he didn't have to work and could concentrate his efforts on staying hidden, protecting himself, and continuing to encourage the Nazi ideology.

          Bormann moved to a mountain retreat in the Argentinean Andes, a 5,000-acre cattle and sheep ranch about 60 miles south of San Carlos de Bariloche, and lived there until Juan Peron was forced from power in 1955. Throughout this period, SS-Major General Heinrich Mueller kept receiving information that Bormann continued to be the object of an international manhunt. British, American, and West German agents sought him, but not too hard.

           Mueller was chief of operations for the Gestapo (SS) and later (after 1939) its chief.   He was also involved in the regime's policy towards the Jews. Müller's subordinate was Adolf Eichmann, headed the Gestapo's Office of Resettlement and then its Office of Jewish Affairs.

           Reinhard Heydrich was Müller's direct superior until his assassination in 1942 at which time, Ernst Kaltenbrunner was his boss..  Reinhard Heydrich boss was Heinrich Himmler, head of the SS.  Heinrich Himmler and Propaganda Minister Joseph Goebbels ran the Jewish Affairs (genocide) policy.  I discuss more about Mueller below.

           The Bormann organization had many commercial and political links to the capitals of these three nations, and real clout was available should the chase become too hot. The CIA could have pulled aside the gray curtain that obscured Bormann-at any time. But the CIA and General Mueller's crack organization of former SS men found it to their mutual advantage to cooperate in many situations. There is no morality in the sense that most of us know it in the strange world of professional secrecy, and when it was to the advantage of each to work together they did so.

           SS officer Klaus Barbie, Hangman of Lyon, France, escaped to Bolivia and as a Bolivian citi­zen, he worked as director and stockholder of Transmaritime Boliviana. This was a shipping company partly owned by the Bolivian government. Georges Pompidou of France offered $4 million to the Bolivian government for the extradition of Barbie. It was refused.  In South America, Barbie was under the protection of General Heinrich Mueller, and in certain instances had worked for the CIA, so his sponsorship was impeccable and incontro­vertible, and he continues to enjoy immunity from arrest.

           Mueller never leaves Latin America, but his agents roam the Americas and Europe. They provide protection for the Nazi Party leadership in exile who can still manage to travel to Madrid, Sweden, Switzerland, France, Italy, or North Africa, and they have been known to take on lucrative secret police assignments. When Colonel Nasser became president of Egypt, he asked the CIA for assistance in establishing a similar organization in his country. The CIA did not wish to become involved, and so referred him to General Gehlen, then chief of the West Ger­man federal intelligence organization, which was in fact main­tained by the CIA. But Gehlen ducked the request, suggesting that former SS General Otto Skorzeny,

           Heinrich Mueller who was in Brazil sent Nasser a team of secret police specialists, who all arrived in Cairo.  Colonel Qadhafi of Libya, asked Nasser to make the German team of advisors available to him also. This was done, and upon arrival the Germans started with a thor­ough housecleaning of the Libyan secret police hired by the previous ruler, King Idris. Two thousand Libyan police were put in jail and the Ger­mans rebuilt the Libyan secret police from scratch.

           An attitude of benevolence toward Bormann, the German who created so much commer­cial activity for them, is held by Brazil, Bolivia, Argentina, Uruguay, and Paraguay. The President of Paraguay cooperates with the US military and with the CIA, as he does with Bormann and his representatives.

           During the Viet­nam war, President of Paraguay permitted the US Army Chemi­cal Corps to send in teams of 2,500 men and CIA officers to carry out field tests, in the jungles of Paraguay, of chemicals for use in Vietnam. In one instance, several Ameri­can soldiers became casualties when they were accidentally sprayed with the gas. They were taken to a Paraguayan military field hospital; the doctor who treated them was Josef Mengele, now a Paraguayan citizen and an officer in the Paraguayan Army Medical Corps. Under Mengele's treatment all soldiers recov­ered.  The Israelis have tried repeatedly to extradite Men­gele, who was the notorious doctor of Auschwitz concentration camp. But when President of Paraguay was approached through diplomatic channels for such a purpose, he responds: "Shall I also expel the 1,500 Jews who have made a good life for them­selves in Paraguay, and who have contributed so much to our economic growth?"

           Despite the assistance Bormann has received from various leaders in Latin America since his arrival, including help from members of US embassies and consulates and several CIA station chiefs, Heinrich Mueller continues to exercise ex­treme caution in protecting Bormann. In 1955 and again in 1957, following the transporting of the party minister to new locations, he leaked the story of Bormann's "death," repeating the old ploy of providing a body in a grave marked "Martin Bormann." Each time an exhumation took place it was found to be the remains of a deceased Indian, although one was that of a Jewish person, an Israeli agent who had gotten too close to his target.

          In 1957 Mueller established Bormann on a remote plantation at the southernmost tip of Brazil, at a point that touches Para­guay.  All-but-impassable path­ways one would take to approach the plantation were guarded by Indians whose role was to alert the SS guards.  Food and other supplies were brought by river boat, then trucked inland to the colony. Visitors came and went by Piper Cub.  Bormann continued to conduct his complex business affairs by remote control. A cadre of skilled professional business administrators would periodically return to this dismal, isolated area and make their reports on investments and on the prosperity and growth of the corpora­tions they controlled in so many different countries.   Bormann was moved again to the high mountains of Argentina that border Chile.

              The FBI had the wartime responsibility of spotting Axis agents (counter-espionage) and their activities in all Latin American countries.  A 1943 FBI report stated:

           After the rupture of diplomatic relations with the Axis by various countries of Latin America, the Axis began to use Argentina as the base of its espionage and sabotage activities against all American nations. It had been established that from this base of operations the Germans have spread the net of their subversive organizations to at least ten American countries, and that as a result of their work a large number of American lives, considerable American property, and the lives and property of the citizens and countries of the united nations which are engaged in the struggle against the totalitarian powers have been lost.

           Argentina was an ideal base for such espionage and sabotage tactics against other nations of the Western Hemisphere. The FBI also reported that "the following are the American repub­lics and territories directly affected by the activities of the German espionage ring, directed from Argentina: Brazil, Co­lombia, Cuba, Chile, Ecuador, the United States of America, Mexico, Paraguay, Venezuela, Aruba and Trinidad."

           Germany, of course, had a profound and quite critical inter­est in the rising war production of the United States. Nazi agents infiltrated all US plants in which bombers and fighters were being produced and the information gathered by these employees was transmitted to Buenos Aires, where it was relayed to the mammoth wireless receiving station in Hamburg that pulled in messages from agents throughout the world.

           The Nazi Party was effectively represented in all Latin Amer­ican nations. Mexico, as one example, had its German National Socialist Labor Party, which controlled the public as well as the private lives of all Germans living in Mexico. The Japanese handled the military intelligence chores for the Gestapo in Mexico because German efforts were directed to the United States and to the more southerly countries of Latin America. To accommodate this additional work, Japanese tourists began arriving in great numbers in Mexico; some were assigned to other South American countries.

          In Buenos Aires, many members of the Jewish community owe their present prosperity to this predilection of the Bormann organization to use Jewish busi­nessmen as cloaks for commercial operations.    The major German firms of South America were invariably centers for espionage activities. The Bayer Company, a subsidi­ary of I.G. Farben, whose principal business in Chile was the sale of chemical products, was placed on the American blacklist and prevented from doing business with the United States.

          Argentina by this time was under great pressure from the United States to break relations with the Axis. Instead, she proclaimed her neutrality in 1942. However, in January 1944, Argentina broke off relations with Germany and Japan over the flagrant espionage that had been taking place within her bor­ders. Still, this was not a commitment to war and the Argentean junta was shocked into action when the United States and most other countries recalled their ambassadors in the sum­mer of 1944. Then, three months before the German surrender, Argentina officially declared war on Germany and Japan on March 27, 1945, a symbolic gesture only, but it succeeded in normalizing relations with nations of the Allied world who re­turned their ambassadors, except for Russia

           One of the most absorbing operations of the early 1940s was the clandestine German radio station located in Valparaiso, Chile. This station transmitted to Germany information from Axis agents operating in Chile, Argentina, Peru, Colombia, Ecuador, Guatemala, Mexico, and the United States. The FBI and OSS were concerned about this radio transmitting facility. The cipher experts of the OSS were able to intercept the messages, but it took time for them to break the code. Meanwhile, a continuous stream of important data from South America and the United States was being sent to Hamburg. With the permission of the Chilean government, the US Federal Com­munications Commission sent an electronics expert to Chile, who located these spy radio location.

           Elizabeth Friedman, wife of Colonel William Friedman, the master cryp­tographer.  He had broken the Japan's Purple Code.  She organized the OSS code and cipher operations for Donovan and is given credit for breaking the German code used between South America and Germany. The de-coded messages were found to be instructions from a home office to agents in South America. Hamburg was always concerned that all their South American Nazi spies could prove legitimate employ­ment as cover for spy activities, which underlined the value of German commercial firms in all Latin American countries.

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