Foreign Relations of the United States: Diplomatic Papers, 1944, The American Republics, Volume VII

862.20210/2715

The American Ambassador in Chile (Bowers) to the Chilean Minister for Foreign Affairs (Fernández)⁵⁴

Santiago, January 18, 1944.

Dear Mr. Minister and Friend: I have received inquiries as to the progress in the judicial process of the German clandestine radio station PYL discovered at a fundo⁵⁵ in Quilpué on October 27, 1942.

You will perhaps recall that I submitted to your predecessor in office, under date of June 30, 1942,⁵⁶ proof positive of the existence and operation of this radio station including translations of actual espionage messages sent to Germany and instructions from the Nazi authorities in Hamburg, Germany, to the gang of spies operating this radio. A memorandum in this case was also transmitted to the Committee for Political Defense in Montevideo which was later made public.

I am informed that, in addition to discovering the actual transmitting set and secret ink and other materials of clandestine communication in the radio station, Chilean officials received signed confessions from members of the gang operating the radio.

The investigation and the translation of the messages resulted, I understand, in locating agents connected with the Nazi spy ring in Brazil, Peru, and Colombia. The two heads of the clandestine radio station operating in Brazil in conjunction with the PYL station were Albrecht G. Engels and Herbert von Meyer, both of whom were arrested by the Brazilian authorities and immediately interned in prison, where they still remain. There were two agents in Peru identified as having been in contact with the PYL radio station: Claus Watjen escaped to Argentina before the organization was broken up; and Ferdinand Westoff was deported to the United States where he is now interned. The agent in Colombia connected with the Quilpué clandestine radio station was Heriberto Schwartau Eskildsen, who was also deported to the United States and is now interned there. In Ecuador the principal agent concerned, Walter Giese, returned to Germany before the discovery of the spy ring.

Regarding the present status of the principal agents of the organization who acted in Chile, the following information has come to the attention of the Embassy:

Friedrich von Schultz Hausmann is now living at Calle Espora 770, San Isidro, Buenos Aires, Argentina. Heinrich Reiners escaped from Chile and is at present believed to be in Argentina. Hans Blume and Johannes Szeraws have never been apprehended. Hans Hofbauer gave a signed confession in the PYL case, was at first relegated, was later called back to Valparaiso at the disposition of the investigating judge, and evidently is now at liberty in that city. Horst Kettler also gave a signed confession, and he was repatriated to Germany with the first German group, which left Santiago on September 29, 1943. Isabel Piderit, wife of Heinrich Reiners, was questioned by the investigating judge on one occasion, but she was released and is residing at her home in Chorillos. Alberto von Appen was released by the Court, was relegated to Limache, and on January 4, 1944, was rerelegated to this spot. Otto Buchholz was released by the Court, was relegated to Buin, and on January 4, 1944 was rerelegated to Salamanca. Arnold Barckhahn, Chilean involved in the operations of this espionage group, gave a signed confession, was released by the court, and is at liberty in Valparaiso, Chile.

Since more than fifteen months have elapsed since the clandestine radio station was seized and confessions were made by certain members of the spy ring, the judicial investigation which has been conducted under Judge Rodolfo Gonzalez has evidently been terminated. It is particularly noted that no judicial action beyond investigation has been taken by the judge. Inasmuch as this is a matter which undoubtedly concerns not only the defense of Chile but also the security of the Western Hemisphere and the war effort of the United Nations, I should greatly appreciate being furnished with any information which properly may be given on the PYL case.

Yours very sincerely,

Claude G. Bowers

54. Copy transmitted to the Department in despatch 8679, January 22, 1944, from Santiago; received February 2.
55. Farm or other rural area.
56. For a summary of this memorandum, dated October 28, 1942, see Foreign Relations, 1942, vol. v, p. 225.