740.00112A European War, 1939/32163: Airgram
The Secretary of State to the Ambassador in Argentina (Armour)
A–1131. Reference your 1304, June 11, and 1093, May 24.89 The Department has so far had little success in collecting data on specific cases where firms which form the spearhead of Axis penetration in the Western Hemisphere have directly or indirectly financed espionage, sabotage and similar activities. With respect to Axis firms in the other American republics, the information in the Department’s files was largely compiled in the field with a view to Proclaimed List action. Therefore, the files are frequently less voluminous on the outstanding Axis firms than on the less important firms, since the propriety of the inclusion of the former on the List was clear, without detailed proof of undesirable activities. For this reason the Department has recently sent a circular airgram (June 21)90 to the missions in the other American republics, except Argentina, requesting the desired information regarding the leading Axis firms and it is possible that the replies may be helpful. However, to judge from what is known about the activities of Axis firms in the United States and from the information that exists in the Department’s files relative to activities in the other republics, it is problematical whether proof will be forthcoming that any of the leading Axis firms actually conducted or directly financed espionage, sabotage or similar activities, as distinguished, say, from having in their employ persons who had important posts in the local Nazi hierarchy or from contributing funds which in one way or another were eventually made available to the Axis diplomatic missions.
As for activities within the United States, the Department has had to rely on the resources of other agencies. These agencies have admitted their inability to produce exactly the kind of information that would be desirable for your purposes. The Department has received some material from the Alien Property Custodian which, although it leaves a great deal to be desired from the point of view of your needs, will be transmitted to you with other material which the Department hopes to collect. This other material may include some data on the activities of General Aniline and Film Corporation, with respect to which company a study has just been completed by the Treasury Department. It is believed, however, that this study relates mainly to matters concerning this company other than its espionage or sabotage activities. The Treasury Department has stated [Page 490] that it is unable to produce the specific type of information requested in your 1093 of May 24.
You have undoubtedly received by now a copy of “Argentina Today” prepared by the Federal Bureau of Investigation, which it is hoped will be useful.
With respect to your 1304 of June 11 and the point you raise therein concerning the procedure used in the investigation of subversive activities of Axis firms, the Department is unable to offer any particular blueprint. As a general procedure, however, the starting point would seem to be the files of the firm in question, which should, of course, preferably be seized before the firm has had its suspicions aroused. Careful examination of all files and pursuit of all leads by imaginative and trained investigators, backed by adequate legal powers, should be productive of information which will either be directly incriminating or the basis of inference of incriminating conduct.