Series IV World War II Volume 11 Cryptologic Aspects of German Intelligence Activities in South America during World War II n52268 This publication is distributed FREE by the National This publication is dedicated to the memory of Security Agency. If you would like additional copies, David P. Mowry, one of NSA’s longest serving employees. please submit your request to: Center for Cryptologic History Dave also researched and wrote numerous his- National Security Agency tories, including the booklets German Cipher 9800 Savage Road, Suite 6886 Machines of World War II and Listening to the Fort George G. Meade, MD 20755-6886 Rumrunners (two of the pamphlets most in demand at the National Cryptologic Museum). An expert cryptanalyst, he studied under the legendary Lambros Callimahos and served many years as a senior linguist in operations. His assignments included a variety of NSA locations in the United States and overseas. Late in life he learned how to work magic on comput- ers, and his initiatives made the first CCH webpage on NSAnet a truly user-friendly site. He also displayed historical crypto- This publication presents a historical perspective logic equipment (such as the Enigma machine) to both the NSA workforce and the general public at numerous Agency-spon- for informational and educational purposes, is sored events. Finally, one of his last contributions to the CCH the result of independent research, and does not was as co-author of the history on SIGINT controversies relat- necessarily reflect a position of NSA/CSS or any ed to the Pearl Harbor attack–a monograph that will become required reading for all future historians writing about the other U.S. government entity. “Day of Infamy.” Cover Photos: 1) The headquarters of the Reich Security Administration’s foreign intelligence operations (Department VI), Berlin 2) The ENIGMA served as the standard cipher machine for Germany’s military, its agents, and its secret police. UNITED STATES CRYPTOLOGIC HISTORY Series IV World War II Volume 11 Cryptologic Aspects of German Intelligence Activities in South America during World War II David P. Mowry Center for Cryptologic History National Security Agency 2011 EDITOR'S NOTE: THIS PUBLICATION JOINS TWO CRYPTOLOGIC HISTORY MONOGRAPHS THAT WERE PUBLISHED SEPARATELY IN 1989. Page ii Cryptologic Aspects of German Intelligence Activities in South America during World War II PART I–GERMAN CLANDESTINE ACTIVITIES Table of Contents Foreword......................................................v Chapter 1: The German Intelligence Services......................1 Perspective ...............................................1 The Abwehr ...............................................1 The Reich Security Administration . 3 Chapter 2: Axis Agent Operations in Latin America................5 SARGO ...................................................5 The Brazilian Nets . 6 Regrouping .............................................. 6 The Chilean Nets.......................................... 6 Operation JOLLE ..........................................7 MERCATOR I and MERCATOR II ........................... 8 The Planning for Operation JOLLE ......................... 8 The End of Operation JOLLE ...............................10 The Benefits Derived ......................................10 Chapter 3: Allied Organizations Concerned with the Intelligence Problem ..............................13 U.S. Navy (1917-1941) .....................................13 The U.S. Coast Guard (1931-1941) ...........................14 The Federal Communications Commission (1911-1941) ........17 The British Effort: GC&CS and the RSS (1919-1941)...........18 The Reorganization of the U.S. SIGINT Effort (1939-1942) .... 20 Initial Operations ..................................... 22 Security Problems..................................... 23 The FBI Connection.................................... 25 The Army Connection.................................. 28 The Radio Intelligence Center .......................... 28 Chapter 4: Counterclandestine DF Operations in Latin America . 31 Introduction .............................................31 The U.S. Navy in Colombia and Ecuador (1940-1941) .........31 Other Latin American Nations before the War .............. 39 Page iii Cryptologic Aspects of German Intelligence Activities in South America during World War II Establishment of the AIS Clandestine Radio Locator Net ..... 39 Creation of the Concept: December 1941-January 1943 ...... 40 Implementation of the Concept: January 1943 to the War’s End ......................... 45 Cuba–Graft and Corruption ............................ 45 Chile–Nazis and Mountains ............................ 46 Argentina–More Nazis................................. 47 Ecuador–Mañana Land................................ 48 Colombia–Everything in Place.......................... 49 Brazil–Full Cooperation ............................... 49 The AIS Takes Over.................................... 50 Disposition of the AIS Net .............................. 52 Conclusion .............................................. 52 Glossary................................................ 63 Page iv Cryptologic Aspects of German Intelligence Activities in South America during World War II FOREWORD This is the first of a two-part history of German clandestine activities in South America in World War II. In this first volume, the author, Mr. David Mowry, identifies and presents a thorough account of German intelligence organizations engaged in clandestine work in South America, and a well- researched, detailed report of the U.S. response to the perceived threat. This perception was, as Mr. Mowry alludes to in his conclusions, far greater than any actual danger. Mr. Mowry’s conclusions, in general, are somewhat understated. It seems fairly clear from the evidence that the Germans never expected a great deal from their agents in South America or even in the United States in World War II. The lack of German espionage activity in these areas in WWII stands in stark contrast to the bombings and other activities which occurred during WWI. Perhaps these WWI experiences influenced U.S. policy makers to the extent that they overestimated the danger in WWII. In fact, it might be suggested that South America and the United States were not the major threats of German clandestine activity in WW II, but that Europe, England, North Africa, and the Middle East offered far more potential for beneficial results. An examination of clandes- tine activities in these areas might produce different conclusions. One might also comment on the extraordinary activity that took place between and among U.S. intelligence organizations in the face of so small and unsuccessful a German effort. In addition to concluding that it had little effect on the outcome of the war, one might also have noted the similarities characterizing the nature of the relationships. Specifically, this includes the relationships in the broader COMINT field during and after the war. Part two of this history deals with the cryptographic systems used by the various German intel- ligence organizations engaged in clandestine activities. It is a much more technically oriented work than this volume and an excellent companion piece. Henry F. Schorreck NSA Historian [1989] Page v Cryptologic Aspects of German Intelligence Activities in South America during World War II Page vi Cryptologic Aspects of German Intelligence Activities in South America during World War II Chapter 1 The German Intelligence Services Perspective before and during World War II. Latin America was probably their major theater of operations, but The fall of the Batista government in Cuba in similar espionage organizations were established 1959 and the subsequent rise of Castro’s Cuba as a all over the world–organizations that would be the Soviet ally in the Western Hemisphere marked the objects of considerable scrutiny by Allied intelli- beginning of Russian success in obtaining a foot- gence and counterintelligence agencies.2 hold in an area that had been the exclusive sphere of influence of the United States. The Abwehr The concept of carving out a piece of the After the demobilization of the German Army Western Hemisphere did not originate with the at the end of World War I, the Intelligence 0ffice Soviet Union. Since 1823, the year the Monroe of the General Staff, or IIIb, became an intel- Doctrine was enunciated, most of the major ligence group attached to the Foreign Armies European powers tried at one time or another to Branch of the General Staff. Later, with the sign- subvert it. Germany tried twice. The first time, in ing of the Treaty of Versailles, the General Staff 1917, Germany planned to attack the United States itself became the Troops Department, and the through Mexico. This plan was foiled by Britain Foreign Armies Branch became the Third Branch, when it provided the United States with a decrypt- or T3, of the Troops Department. The Intelligence ed copy of the famous Zimmermann Telegram. Group became the Abwehr Group of T3. The name Germany’s second attempt was more complex, but “Abwehr” (literally, “defense”) was the covername in the end, just as unsuccessful.1 given to the counterintelligence group in order to disguise its espionage functions.3 By 1939, large groups of German nationals had settled in the various countries of Latin America, On 1 April 1928. the Abwehr Group and the particularly Argentina, Brazil, and Chile. Germany German Navy’s espionage unit were combined as maintained close contact