ancaonuo

SCIDIEND

'ACM RE4.11ED • WWI=

ACTION REQUIRED: FYI •

`' L' is a copy of a raw field

..:rFrankfurt, to its Headquarters.'art Base (EGFA-46274,. 16

•••

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~.repert Submitted by AC.SI 1.-1.114.4.•sport: Was sent to us .ire4..ary 19641. , The report

, " • '

You will note that *the two Peruvians citen par

as j31o55 cOntiecta of S_CHWEND • 4i*...apC

s '11* accoMnibdation-addri; :z.nat 'SOO .

%' Abraha1 LEVI, post' ofriofr box 53, !.11.ima; thelatest

tPig:::tberikt 14 Julio ltISIS, but box '4S Is for

iittistt• ' , • • •

agraoh- ' •

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7 • ":0-,.7"77,-;,..10,.F,613. 67

. .

Cection '3((A)

G)

.(B)

Methods/Sources ar'

Foreign Reiations-

Fatt COORDINAT WITFI /74'?"7>

NAM WAR CRIMES DISCLOSURE ACT.

. . .'•:•`..A;t'...s..;.-'! •

. -1) E-r- 6 7 C —

\4.•

• •-•

P. DATE OF REPORTI

IS. NO. OF PAGES:

REFERENCES.

't

NOTE: Thr• do cument coo tolo• Inionnetion• rualne the national defon•• el the UnitedStoles rolthin th•oneentrid the espionnd•Imre. TIO• ler U.S.C., Sec. 713 and/94.The ttnehmt••Ion 01 Silt r•v•I•Ooss of 1 I •consents in anima:she/ to on onnothodead

Is proh ibited is

3 b- 5"-- _54/3

1)— <4 - A/D

" - -r. •

ts' SECRET

NO FOREIGN DISSEnNATION-7TfrE

SCL7 - -FD

3-4. • i

11'4,

SECRETNO FOREIGN DISSEMINATION

-WARNING NOTICE SENSITIVESOURCES MD METHODSINVOLVO'

• SCInio;111entIon and Cnnirol In.pd

111. REPORT NUISDETSI. c°0 "T" PERU/BOLIVIA/WEST annum2. suancrt (SOFormer German IntelligenceOfficer Actfve ulth Intelligence Servicesof Peru t..nA ZoliviaS. 116C t+Ume2Rs

77210 report contra,. ,nia ceetCd Microns:ion.

Piano ondfor railer .* ehoold not be tool rod

Of muff 11../ solely on dor boots at tht• Cops rt.

2 750 4664 67(1206)12 January 1967

P.FCD CO-2 2. 3 JAN 1,a73DIRM 6c, 7A6—

IR 2750464-066, 2750463966,,2750463866, 2759463766

•4. DATE OF INFORUATIONS July - August 1966 IL ORIGINATOR: USA Field 1*.ipport. Group

PLAr.4 AND DATEOF 6 january 1967 12. PREPARED OrWest Germany

EVALUANOM SOURCE INFORMATION 2

• .'

I

-..'. -• 1*. summ."01 (S) -00 FOREIGN DISSEM) This report provides information regarding

Federico:SOME/ID or SCHREND, WWII German 55 Intelligence Officer -who is reportadlY:affiliated at present with the Intelligence Services of Peru and.-'Bolivia.

=IS ItEiCn SHOULD BE GIVEN NO FOREIGN DISSEMINATION SINCE SUCH DISSEMINATION COULDLEAD TO TEM COMPROMISE OF. TEE SOURCE OFT= INTO.RIATION.

•

• t■ P-4(= fC-'nIGN-DISSEM) . The West German firm, 19EREKA.G., whi•ch . duringthe past 7.

- ware with the hetking of:the West German Intelligente Service (Rh])) to such countrie

1year or mem ham disposed of ,large quantities of snail:us Eundeswehr military-hard-

as Pakistan. Iran, Saudi Arabia, India and. Chad, has been pctensifying its efforts- find,potintit,1 customers for such military- surplua amonggavnmenta of Latin • .!AMerica. Ir: July-August 1966 a MEREN

wirepresentative Waite* RbECK, a WWII German

1General Staff Colonel, den tour Of various Latin representative, dbzntries where he cbt1itacteimurerousmilitary.officisls to make them aware of militay surplus itemVidlinsmtzc had 040.ffer...i,NalsO cOntacted alp= German acquaintance in the person of

• 4via mile VDFIT, GermSy's biggest airwcrm of that conflict. RUM has-been re.-!siding -in LanAmerica. since the end or:' III snd.has develOpednumerOuS contacts Iiithe local mili ary camminities during thl g-frzeign residence. RODEL vas inatrunent

&

a.

:IINS'DOCUMENT HAS BEEN ADJUDGED BY

- (OPI)

AS NOT FALLING WITHIN THE CCTEGORYOF SENSITIVE/EXTREMELYINFORMATION AND MAY ST-EROCESSED OR DISTRIBUTED r.176;1:4 DIA.

1:3

(SIGNATURE/INITIALS)

USA Field Support Group

* 4- APPRovmGAL,THow F, L. DILLON, JR., INC, ISISF-615-10-67. (c) A West European businessman who'Ide 'ili in erns and munitions.

Ris . information -;..11-the past has consistently been reliable.

DISTRIAUTION Ili ORIGINATOR. 17. DOWNGRADINO DATA. IS. ATTACH...ENT DAT At

NONEGP-1DOWNGRADED-AT 12 n nifERVALSNOT AUTOMATICALLY DECLASSriTEDDOD DER 5200.10

••■4..

har,re

it::2. (s)(:* F.-aziaN DISSEM) One of t. expatriate Germans contacted:by .DRUECKon therecommendatfon ofEUDEL was Federica CHWEND of'Casilla 1201, LIMA (nea), Peru.

*c SC:MEND is said to have been an inte igenee officer in the German SS during WWII.He claimm to have participated in the /II German operation involving the manufactureof lmrge amounts•of bogus British .pound.otes. BC claims further that an Italian .court sentenced him in absentia to 20 years imprisonment for his role in the death oan Italian agent who penetrated the German Intelligence Service during the var.

3. (S)(HO FOREIGN,DISSEM) According to Source, SCHWEND's past has led to a close'affiliation between SCHWEND and the Intelligence Services of both Peru and Bolivia.The precise nature Of this affiliation vas not revealed but SCHMEND is Allegedly

tive at the present time for the services of troth countries. As a cover for hisintelligence activities, SCHWEND reportedly ()perm,— a Volkswagen repair facility inLIMA. 0:01

/

SECRETNO FOREIGN DISSEMINATION

WARNING NOTICE SENSITIVESOURCES AND METHODS INVOLVED

Minn Winn, Inn nnd Centre/ MnrhIneal

in introducing DRUCK to a variety of government and military officials duringDRUECK's Lntin American tour. He also led DRUECE to oth*r expatriate Germans whohave been living in Latin America since WWII, individual:. who have developed contacts

i and who mir.:It be able to assist MEREX in itn scheme to 7,u;:i. the sale of surplus

r • • ••• • ,• •. • "• .• • : ••

pAocs1,1

L,.

CORTINUATI,ONSHEET

USA Field Support Group

nEPORTNEL 2750466467

PAGE 2 OF 3ORIGIN ATON

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/4. (S)(NO FOREIGN DISSEK) TbAeovince DRUECK of his close connections with the •Peruvean Intelligence S 6 and his entree to local military circles, SessIEND in-troduced DRUZ= to Colonel whom he identified as theliea4 !of the Peruvean"Secret Service". He also in ed rem= to a Captain BinerSA1iAVE, identifiedas_the "rieat hand" of Colnpel •LA. DRUECE conferred with hot officers during

amid-196.; visit to Peru and o ed the types of surplus mility hardware whichhad. to offer. The two ',officers claimed excellent connections not only to the

Peruvean military procul.leumatauthorities but also to the military establishments ofArgentina and Chile. They agreed to spread the word about WIREX and to 'work throughSCW4END in. pushing possible sales for MEE. They vent so far as to give DRUECE anint gence accommodaticn address in LIMA which he is to use in the fUturefor allcorre....-ndence relating to military goods sales. The address given DRUECE was:

M workedsubstitution code was alsoPout for :le correspondence* i.e. the vord'"Lebensmittel" to be substituted. for .

raham J.,EV ,! Apart ado 53 ,-IA-BARANCO. A simple

'aircraft, n.ta4 V(N a. (S) - (IN,.: . F0RE1C7.1 DISSEK) During December 1966, Bans Ulric

in

li. UDELuralertook a trip

ISERD:rsugh var'ous Latin American countries on behalf of =EX. B pet witiS=Whe

spells the -.ame SCIat."0 his reportn) in LtMA and reported toequested qectetions on. several items for the sPeruvean Intelligence Service, specific

,ally, miniature listeaing'clevicesimicrophouea end . silencers for hand guns. SCHWEND;also remiested that MERE provide quotations on 500,000 rounds of 30mm munitions and.,000,000 rounds of 20ma ;munitions in which the Peruvoan military establishment hasan interest. Be also told EU= that the US plans to give Peru some lom0. rookots.,--t..sf an unspecified caliber soon, .allegedly blank rounds with an inert filling. Sat.fsaid he would attempt . to obtain one of these rounds' and. forward it to NEREI via thePest German gilitArYAttaChe in LIMA. His desire here is that MEREX determine the

. -Rk • an1 l'r) . .'

DISSEM) MEE has also been in contact with Otto& ‘ri,FOREIGNNO()S(

\. ...

cosri it of converting the inert rowids into live rockets..

,' 41IN

"

I. ltroduced DRUSCEto another formerr SS .officer in the person of Sassan v

•O. (SNAG FOREIGN DISSEg) In Argentina,

LOO. ITiSLOO has been living in-gentina for some 18 years and is a-. partner in the fine -62E01CM S.A., Piedras 383,

piso, oficinss 2 y3,-BUENOS-AIRES .(ncab . tele ne 33.48 15. Subsequent ta thiso ntact in mid?.1966, n4EX appointed. TECNICUM S.A. to represent itSinterests fn.

Argentina: ' '.

1ther fccumis German WWII figure for the past several years regarding the 'arms busi-

.unss. EMMY resides in MADRID 6aca).but claims to have excellent contaats in the-,3::::::.Zt-...:f of 7-n-u_. It has also been revealed that SEORZENY has been involved .+itt P.7...%7 :n ?. t:!':..,ae tn . exPloit sulphur deposits in a remote area of Bolivia.

----rrweneror+4...ceeor—.

• - •

SES111.:21NO F'7 .EIG11 DiSSD.1714.7.ION

WARTail NOTICE

MAN. OE yscu I 1.•

61114115V41- ' Xi

PACE 3 0 f 3 PACES •

ORIOMA7OR •

■•

REPORT NO. 2750466467SECRETNO TWEIGH DISSEMINATION

• WARNING NOTICE SENSITIVESCNUMtalPAR,§ARYNIVED

8. (S) (NO KISSIGN DISSEM) Walter DRUECK'was debriefed by officials of BD head-quarters upon his return from the Latin America visit in August/September 1966.'According to Source, the BND officials were very interested in DRUECK's contadt-vith RUDEL and other expatriate Germans residing at present in Latin America.

•

CONTINUATION SHEET

USA Field Support Grouplt..or. 131.04

• 4

SECRET —7711...rwma.:••■•■■•■•••••■■•

ITREIGN DIsSE2MI!,57:ra

:;;f2ICT.

::12TECDS Iliy0174D

•1 14L.Ne

417,• 445; -