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lielemorandum COMIC"nalra qfp: Chief, Foreign Operations wmu April 29, 1965

Regional Security Officer -

sukiPmil ifCesar WARTS, Jr._ Ao, O."irleSe"8.0.:5Cii°

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rt!,1; .The firstrst approached me soon after my arrival:. 14 ..- .„,

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,or Aw.e.at this post in 1962. He identified himself as a special'. - e assistant to the then Chief of the (Mardis, Civil-National

0-0. oere ,4 and further stated that he had duel citizenship,-Peruvian

.:4 and American. He claimed to possess an American passport11,.,7.011.-and, in fact. was a very active member Of the American

f: l ett: ' Legion Post in Lima, Peru. In describing his background

7....# to me he appeared to be the type individual that couldvery readily surpass the truth and, I an inclined to be-lieve did so not only during this first interview but alsoon many subsequent occasions. Nevertheless, informationhe has furnished on &number of occasions did check outand was of use. Unfortunately, because of his somewhatoverbearing nature, babas been able to disenchant anumber of officers in this Embassy of which, the ArmyAttaché. Colonel John Benson, is one. Rather than cuttinghis off completely, the Reporting Officer has been ableto keep his relationship with the Subject at arms length,so to speak, and yet friendly enough to continue to receiveinformation from him.

At the present time, the Subject is no longer affiliatedwith the Guardia Civil - the Chief, General quia, havingbeen replaced, nevertheless, coming free a "good" family,he retains contacts with a number of functionaries includingPresident Belaunde himself.

Several months ago. the Subject called the ReportingOfficer and reported in greater detail than was discreteover the telephone or his personal investigations into theNazi underground movement that is presently in operationthroughout South America. He claimed the organization nameto be ODESSA, founded by Martin Bora= in Buenos AiresArgentina in 1947 -is presently rimmed and headquarteredin Cairo, Egypt. Of special interest to • was the allegedpossession hy this organization of counte$50 and $100 plates. He claimed these plmade for "Operation Bernhardt" during Nor

CONFIDENTIALrei. , T 1. • 79'4

Buy US. Savings Bondi Regularly on the Payroll

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CONFXDENTIAL

headed by Federico Sahwend who presently resides in Peru.Furthermore, he insists that Schwend la still an activeNAZI as are several others which he named.

Attached is a statement he dictated to the RSO secre-tary and attachments. 1.,TheDdacumeinta, a copy or whichhas been forwarded tot_ 1. are forwarded to you forappropriate tollow-up acti Urn' deist it necessary.Treasury may be interested.

•Incidentally, the Subject claimed to have been on

the Los Angeles Police Force for a abort period of timeas well as having acted in Hollywood in one (or several)movies.

Attachments:

1. Statement of Cesar Ugarte, Jr.2. Clipping "El Comercio" - Lima, Peru - April 12, 19663. Teletype news releases4. Lima 13 (ANSA) News release5. Aide Memoire - Press Conference6. Letter from Dr. Teodoro Binder to SeRor Dn.

Marcelo Cngania, dated January 12, 19667. Letter from Ni. Roland Steinmetz to Senor

Don Jose Antonio Encinas P. Director of"Empreso", Undated.

8. Newspaper article "Correa" - Lima, Peru - January16, 1966

9. Newspaper article "Correa* - Lisa, Peru - January17, 1965.

10. Typewriten copy of random notes11. Typewritten copy of random notes

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STATEMENT OF CESAR WARTS. JR.

From the time of wg appointment as technical advieo?for Public Relations to the Commanding General of theuardia Civil 7 Policia of Peru in October 1961 - hewtnebeen appointed by the then President or Peru, Hammel Prado -until wg resignation on September 1, 1964, I received secret

• telephone calls from a confidential source with whom, tothis writing, I have never had physical contact. N7 con-tact would get in touch with me We telePhene whenever hewould have any information or importance either for thePeruvian Government or the United States Government.

To the best of ey knowledge, my source has never givenme any false information, thus. I have no reason to doubtthe information contained in this statement. I believethat he is either Venezuelan, Cuban or Penemanian becauseof his Spanish accent. Ry different tricks on wg part Ihave come to know that he speaks fluent Germans Englishand Italian. I strongty suspect that he is a member ofthe German Secret Organization called ODESSA which wasestablished in 1947 in Buenos Airester Hitler's formersecretary Martin Borman.

Since t eh Fell of Peron's Regime ODESSA has foundrefuge in Nasser's Government in Egypt and Is reported tohave a total of 3,087 NAZI members in this organizationunder the payroll of the Egyptian Government.

The first information I received that the ODESSAOrganization was backing up the Communists with money wasgiven to me at 7:03 PM on July 23, 1964. The informationwas the following: Counterfeit plates made for OperationBernhardt during World War II which was headed by FedericoSchwend were at present in Sao Paulo, Brazil. These platesare in the denomination of $10, $20, $50 and $100. My in-formant's information was that some high former NAZI warcriminal now under the payroll of the Egyptian Governmentwas due in Peru some time near the end of the year 1944.This information proved correct when Johann von LEERS ar-rived in Peru on December), 1964 with an Egyptian passportusing the name of Omar Amin von LEERS under the pretext orbuying $100,000 of queer bills. Von Leers had an interviewwith Federico Schwend at the United Arab Republic Eabane7in Niraflores, Lima, Peru ate PM December 4, 1964. On

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December 9 von Leers left for Sao Paulo, Brazil and fromthere back to Cairo, Egypt. On January 28, 1965 my in-formant, during a pre-arranged telephone call, Informedthis writer that Lima was going to be flooded with queerUS dollar bills sometime before July. This informationwas passed on to US Embassy officials on the same day itwas received. Counterfeit billmdidiin fact, appear inUna. On April 6, at 7:22PN I received a hurried tele-phone call ern's, informant quoting the following sentence:'Neat port of entry Republic of France'. I gathered fromthis that the Communists, with the help of the former Gee-man, von Leers, will introduce over a million dollarsqueer dollar bills in France. (ME: It Is interestingto note that if this statement is true, it could play a.part in the present French Government's policy or sellingdollars for gold.)

. The present head or (h)SA Organization in SouthAmerica is Federico Schwend who entered Peru in 1947 withan Italian passport. At the present time this passportis in an Italian Embasay safe in Lima. Once Schwend wasgiven al:le/man passport by the German EmbasnY In Lima In1948 he paid Out the mum *1'44 million soles to certainPeruvian official? 1.n power at the time.

• —•• 4- x-aatvok. Colonek:earSalam, who in reality la(Sturnbann

Fuehrer)Bernard nder, torher_haati.ntAnaalal Servicegammanda.in _the likraintA__ 5. .ro4ti-cal Department. The above named Oubject is to name thenecessary cOuncationa in France with the Communist Partyto role:tote US counterfeit monies. At present he is stay-ing at the UAR Embassy.

Special courierrOtto Start, Jr. of Austrian nationa-lity, was formerly leader or the Hitler Youth Group anduntil 1961 was a purser for Canadian Pacific Airlines.

v. Richard Kohlweg is co-owner or Versailles, a combina-tion dining and counter service located at Plaza SanMartin, telephone cumber 82449, Lima, Peru. He is marriedto a Peruvian citizen who was formerly employed brf theFirst National City Bank of New York, Lima, Peru. Hername is unknown to me at the present time. Kohlweg issuspected as being the Number 4 man in the ODESSA Organiza-tion in Peru whose duties are to help distribute counter-feit US bills.

titThe case oldfitk TewloruhldnMerwho is also a member

of the ODIFOSA Organization ad suspected as being its maincontact in the Peruvian Jungle#Pwas brought to light onThursday, January 1, 1965 at a conference whereby Dr.Zuzunago Pldrez defended Dr. Binder. To my knowledge,

, Marcelo Oceania, at present rheum of ANSA. Italiannews agency in Pere, is the emir newspaper man4who has madea full inquiry into the background of-Dr. Binder. At-tached herewith are teletype news releases from the abovenamed news &money and also a copy of the speech made bYDr. Zuzunaga at the press conference. It is proven thatDr. Binder entered Peru with a false passport along withhis wife. The following are the translated questions whichOngania asked at the prase conference:

1. where la the letter of presentation writtenby a Miss Meyer addressed to a Miss MariaLuisa Gilddmelater?

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2. Where does this Miss Meyer live now - whatpart of Germany?

3. Binder gave a talk on Vitbache at the GermanClub and ended by giving a summary on GermanWar criminals. At the press conference Binderclaimed to have helped the United States Govern-ment capture three war criminals.

4. which passport did he use when he came to Peru?

5. With which passport did his wife enter Peru?

6. Did he serve in the German Amy?

7. Where did he stay in Brazil?

8. Why did he not medically operate?

9. Are you a friend of Hans Schaeffer? (Schaefferat present lives behind the home of FedericoSchwend at Kilometer ly Central Highway inSanta Clara. Schaeffer 's former address wasRue Hoch, Paris, Gestapo Headquarters.)

10. Are you also a friend of Federico Schwend?

11. Who is Becker? (Becker for 9 menthe wasDr. Binder's personal guest at the fOrmer'ahospital in Pucallpa, Peru.)

12. With what kind of documents did you liveIn Braxil?

13. What were your relationships with a MissColitim in a hospital in Hamburg. Thiswomen claim that she knowa you under thename of 011endorfer.

According to Ongania's newspaper investigation, Dr. Binderwas a member of the Hitler Youth Group, never studied tobe a doctor and served in the German Army from 1941 to1945 when said Subject escaped to Zurich, Switzerland,

Upon being given information that the next port ofentry for the counterfeit US dollar bills will be theRepublic of France,-Lt. Col, Henry Dufour, French Mili-tary Attache, French EMbassy, Lima, Peru loft for theIsland ofKartineue to hold a conference with a high orfl-etal of the French Military Intelligence. He left Lima,Peru on April 2. scheduled to arrive in Bogota, Colombiaon April 9 and returning to Lima on April 13. Further in-formation supplied by the undersign to Mr. Rode, Assistantto the French Attache in Mania to be forwarded to Bogota,Colombia in time to be given to Colonel Dufour. This in-formation will include: Approximate date of arrival inFrance of Lt. Colonel Ben Salm with Egyptian diplomaticPassport. Salem is to make contact with the French Com-=Mat Party. It is reported that as yet, not confirmed,that he is to distribute with the help of the French Com-munist Party the sum of $2 million counterfeit US dollarbills, denomination of $10, $20, $50 and $100 which in-cludes US travelers checks.

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%! \RAND= NOTES..iSIZSZERnetia-

00ESSA's latest planned escape wee for HANS WAITER ZECH-lumwrinct. Sx-Capt. $S. This man waa up tor trail ter themass murder of 5,200 Polish Jews at PIS. EIS escape toEgypt tram BRUNSWICK PRISON.

=SSA - its initials are for Organization DER ENENALIGENS. 3. ARMORIC= (organization of former !embers of the SS.

This Organization is also known as the "Spider's Web".

Head of ODESSA in Spain is former 83 Colonel Otto 'Scar-face' STORZENT of rose CT) NUsaoline fame.

• .

Of the 2,000 odd ex-members of Hitler's SS Gestapo a 3Dmembers I list some of the most important on the wanted lint

also motive members of ODESSA: at present in Lima leIGNARArni S who is Johann (or Johannes) von Leersmade contact withFederico Schwend for the buying of queer •

me amount to be bought will be that of the equi-valent of $100,000 real monies. The price set is at 47 on thedollar - the plates made for "Operation Berharde of $10, $20,$50 and $100 are noir in Sao Paulo, Brazil.

This queer monies are said to be sent to Cuba and then tofind its way to the US. The $100,000 in this writing is beinggiven by the Egyptian Government.

One or ODEISA's main contact here is Baron Von Sothen atpresent second to the German Ambassador in Peru. At Presenthe is now in Rio de Janeiro apparently on a month's vacationwith wife and children - it is known the Baron von Sothen isstill an ardent NAZI.

My informant has told this writer that the one man whocan give any clue of who has the plates now is Federico Schwend.Schwend has been seen coming out of the United Arab Eabassyin Niraflores four times in the past six months - after won Leersleft ODESSA's office in Buenos Aires; fatter the Fall of Peron)Schwend has taken over 413 #1 as ODESSA s man in South America.I have not been able to find out under what name van leers istraveling under. Be is due to return to Europe and the Far Eastvia Brazil day after tomorrow. I have no reason what so everto doubt my source of information for it has been proven TIMtrue in the past. I know not who he 13 for he gets in touchby phone at no given date only when he has vital information.I have been promised, if at all possible a queer bill.

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Real names of seven top ODESSA members: 1) Louis El Hajis Heiden known German newspaperman. Former head ofthe Reich German News Agency. Has recently translated Hitler'sMEIN KAMPF into Arabic - has sold over 1,000,000 copies; 2)Lt. Col. Ben Salem is Sturinbann Fuehrer Bernard Bender. Formerhead of Special Service Commando in the Ukraine. Wanted for

crimes. Is now head or Nassar's Political Department;V0 3) Omar Amin von Leers is Johann von Leers - is head of Nasser's

Progritanda Department - is head of ODHSSA in Cgiro; 4)(14. Coll,

▪ HamTertuleiman is Si 3.,Gruppen1eiter'Heinrich 74el1man - formerChief of Gestapo in Ulm, Germany. Is now head of Egypt's Secret

• State Police Department. Itta_Vepartment is Hangar's equiva-lent or the NAZI S. S. ; 5)./It. Co]. Maim Iahim is S. S. Haupt-

, stabsaret Heinrich Willerman - is wanted for sterliaation ex-periments on Jewish woman. He is now in charge of Samara Con-centration camg,An the Western Desert, 120 miles South of Cairo;611 Col. Na'am il laNachar is S. S..Standarten Fu LmoimaldGleim. das head of Gestapo in Poland. Is now head of the entire••?•-•Se .'et Police in Egypt. Helped Nasaar on his coup d'etat when

eiAed power; 77 .4rof. Ben ANNAN is rocket scientist Wolfgang114 is head of Nassar's secret Project 3,3 which makes atomic. •• •... . •

weapons.• • . ••

'lotto Joklik is former officer of the German Argo, now work-ing for Scimbet (ILIUM Israel's Secret Service). Ras givenvital information of ODESSA's movements in South America>

ODESSA is responsible for the dealth of &card Peters,Chancellor Ludwig Erhard's personal bodyguard. It is supposedthat he hung himself instead or facing charges for war crimes.

Otto Steft Senior, was one of the officers that along withFritz Knochlein murdered British soldiers of the Norfolk Regi-ment who surrended at hamlet of de Paradia. This crime is knownas the "Paradis Massacre". Xnochlein was tried by British Mili-tary Court in 1948, was sentenced to death. But Steft escaped.He is now messenger for ODDESSA in South America. Has platesfor American dollars. At present is in Brazil due to leave forParaguay on December 8, I$S5 1964. Is rumored he killed Shimtetagent feu months ago on the Peruvian-Brazilian border. Has beenKIXX seen with Dr. Josef Mengele. Last time officially seen wasat Rio de la Plata on April 18, 1962 in the company of FedericoSchwend and Joaeft Hengelo.