:I . tad certain statements node in confietence

-1.ne /4/"MhZOM Of the Sicherbeinatdienst u to who would get .the most importantpositions in the reorganised Oman intelliceno eerviee. /4/911 -40

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; : , I I CLASSIFICATIONi. 4- To , Chief, 41% DATE 29 Juli 1953

Attu :Jae, iltollo,N . arraiiFROM : .UniOr Representative ' E _.3

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sourcesDote of Teat 20 April 140net* Reeds nor 1953SroluAtiont 54

:ream—• Activity of KallA, alias Roiolto or Carla.GITISTINICIMMEMMEMINMe....01.0.1••

'b i.

1, The inform on stueurised below iss a:gorged frac Obsoristiorand cant • rogardim tap gotitities at Earl RM.

• .; . .•2. Lois -4-4./tsneJ Orensczvjcc, lives et Linz but alp

p at Saltbukc. Thr-ii/etiOns of the dliFel cert.tiolybets:a-Tel-a Lila ltatSM Kart WS are not limited orclusiroly

to btavinost, tinieh is-uporent tree the confide:nue of HP= tosource's informant -4o also wan able to take a br giant* atsou of =8.4 letters. (See attachment 1).

_. . . . /, . 1...3. Rail comearcial office in Rini is ran birareld dies

MCC) and ia 10:34attd it Via Appia 21, tiniZM1?.756.L. RAW relations with polio* ciefitiels end arid:ail at the

of the Interior ere not clear, at least in the neat of !statementsRAS8 oasts to his friends in confidence,

on the seem, or.. at least it seem, is the onalwho is end in not with the CIO in Aavtrint but wiso oppeare

present time to Mu ties with ULU mid MASS' friends.

111

'Ally 1953i4r0 J

tOi:n1stl)

•••,,

7. From information avail , it sefts clear that. the iositionof the group urvier Colone who rartielpsted in the plot,against Hitler org a Admiral CkliVIS, ii the strongest.(Lois :DM belongs to the

. . , • tWM.• The eg-peararce of th Neer the 3 3.,

who under the naue- i e boo ,I ar. , the Spies", a;:pears in-TME very fivorible lighi beiaiiieof his attempts to cause injury to HEIHZ in a disloyal mannei;he was suspected of being in collusion with elements believed tobe Soviet agents, reasons for which he was elated togetherwith the two officers ut the at: "Atom ma).ifizs &trim. 1Sse Attachment 3

9. But General HOTTLI s relations th the Soconstitute another circumstance which %eras te doubts dh carose regarding him and which mat always be considered in theevent that he should succeed, in spite of everything, inobtaining a position in the tlerRan service.

10. Rs is pointed out. in Attachment h, Colonel KEINZIerepresentative arrived in Rome on the 14th of this month to 'rakecontact with HASS and, probsbly, with functionaries of theKinister of the I .terior (BARLETTA, CAPUTO) 4th whom thereapycars tm exist a :oasis for semi-official collaboration.

U. On the strength of this information, it is possible to Siiethe following deduetions:

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a. The reorganization of the German Service iseffectively under way not only in Bonn, but, .;*leo *broad;

b. HASS, who in agreement with the K.I. worksalso under the none of ?Wolf(' (or even Carlo)GIUSTINI, is the person intended for dork inItaly under ormeercial cover;

e. The visit of MEP must indicate a kind oftolerance on the part of the Italian authorities

.0 Irrteetigsticeme in course to identify.

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Preparei by28 July 1953Distribution:

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Security i'nfor:: at onSttactcoant sr. to01P4-1215!tilted 29 July 3.953

la Tt is nou poe:ltlo to clarUy .a previous report which referred tothe contsnts of a letter fres Lois D1 in which explosives were sentionedtLois EDER proposed to HASS a commerc i al colleanroton for the sale of exslo-

. sivas in Rely and e/seshers, wttji ex.-officiel of the rman politicalservice, whose address Ftrn44uustt Raichber ri 3edmov,nstrasse L,Linn/Donau.Source not y sure Tie name o Lha person corresponds,as is likely, with that of the firm indicated above. Source states, andthis is the noro important point on the basis of declarations -by !ASS himself,that the above firs collaborates very actively with sone Soviet conaands inAustria under the plan of economic sebotsge in the *stern Zone or Austria.To this and other similar fires the Soviets sell, at. favorable prices, largequantities or general food products which are then resold under cost in theEastern Zane of Austria, thereby atking morsel prices fall. It hes beenpossible in the past for Source to ascertain personally that this singa/arform of econonic collaboration was related to a msre important istelligencecollaboration. Under this aspect, considering the oftictel position or EDER,*responsible' at the an rvice in Austria, RDER-RAICHSEROER andRATCSssRaIR.RAss contacts appear strings unless one Ashes to presuse a penetra-tion attespi by the Semen service into sone Soviet circles.

2. Source was ibis to view some passages of a letter of bid Iron theRAI:ME:MRS to the MEM firs. In this it was stated that TNT, of the 80 SOtype, was not available and offered instead aDonarite N in its various types.HASS explained to Sours, that the loponarite is of Seiviut origin or, at last,manufactured in the Soviet Zone of Austria. A specialist, in explosives couldsesily determine its orisin.

3. Source was nb/r en see and study the technical description of theexplosives offered: vfonssite IV, Donarite 2 m, and gelatine mDonarita IR wasoffered, Subject was particularly surprised that the description dwelled moreon the methods of use, an were to blow up railroads, bridges, concrete construc-tions, etc., how to prepare charges and primers for various types of strong-holds and terrain, than on the technical characteristics. In conclusion, tholanguage vas note military than technical. This is nue possibly to the partic-ular nenttlity of the manufacturer (tie instructions were written directly bythe .factory and not by the intertesdiary firm).

•foto ti(frg4. WS proposed negotiate r the sale of tide materiel 7$11441211_who sells and exports alailar *aerial, especially to the WAdle Estes,

Chief of the Sr-ice in Austria

Yice Chief of the Service

:cretery of (AST

"action Chief

Courier

(Lin) 20 1 .

- Miss SEI pins)

- Lois WI (Ltn)

14.0.)%41t tlburg)

G• Shortly after the constitution of this cadre RM.O consigned to thecourier YOH AL9SRT a sealed /attar far 81.M. VOW LIIERT, to whom it oopeerednot entirely correct for BM to deal directly with 3lei,Nr, inasmuch as infLosdirect superior las opened the letter which contained disparaging state-ments against MIX end SIER, Leto whet: they learned of the letter's contents,obtained the removel. of war.. (here are traces of this correspondence inthe hands of the Italian authorities.) Baron MAST also withdrew fro the HSI=group (in this circumstance a trip to Roo by I(.4SI , s secretary did not take •place). Imeediately, ICITIL and baron RA.? agreed to work in instria with theCERIUM group. From this moment a struggle ensued In Austria betamen the repre-sentatives of the two groups, 110Tfl ts group sepparted by the American 'Servicewhich :ranted to keep the new Dame Service under control.

5. The events of the past days (torrtis arrest) were allegedly the resultof this struggle. The requisition of the periodical edited h

to placing M o s position in Austria in a critical light.

6. In retaliation, EDER end his friends in the IIE/142 grauP Alleggedlifurnished the &African Service, which wu already in posseteion of frozen:Airyinformation, definite proof of the collaboration of fiCTTt with the Scrria ts,proof that led to his arrest, It ow that, in retrospect, the position of

SICK3Security Information

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,At.,arielent 2 t.•oru-12]..ichted 21 July 1953

Tho :roman Information Service

1, Forwarded condensed torn is further information picked up frontir,S recently regarding the farm Service which is in process 7f roconstitu-LI on.

2. In the euemer ef' last. year, there were already very clearly outlinedtwo groups of aspirants fer the constitution of the new (Inman Information .service, nee grorp as hoaded by Col *eel SIM, candidate of SLAM; end .functionary of the Security Service of the Gernan Federal Republic' anothergroup had as its chief the ex-Abwohr General VON 013i4AI, 404. ot.tha.AffericenIntelligence Service, :elm U43 the osi4tdate sunecr

v. - • Et. Fif vice • •

dkit:

11Z , a group were constitutedas follows:'

- -. . .

3. In Austria at that. time, the, cedros-Of

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AtA4chmant 2 toOLttA'Pap . tvz

51ren MA 7 also iz critical. (In tha cave of ttUdP, for exorcle, part ofthe correspondence with 1,133 was interce pted; not, however, the intelligencereports uhtch tM.i.recotved at mother address, probably Salzburg, care ofitr■ AIliaRT.). •

7. Uhat is RSV position in this? - He has continued to remain with thelEINZ ;,,roup which appesrs to him to be thee stTonzer, oas tried, up to theProsent, to maintain food re/ations with 13f7L in the event that the LI'MEN:rrnup gained the upper hand. This, at leact, is his version which, in consider-ation of oast events, should be taken with som reserve.t;

3. The reasons for the presumod ascendency of the tlah2 group lie;es

essentially in the :act tnat ThZ already ham a strong official position in .lona and in he fact that it ts not possible thatBono =cording to MSS,:;ff

could accept. GURLgh, a well-known American agent, who ;as tho minor narit of

. 'being anti-Heti, as compared to t2.3INZ, who was one of the top eon in theMAUS conspiracy.

SECREISecurity Information

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Attachment 3 toOZA - /213dated 29 July 1953

The ;mean Intelliimice Settles

1, no former General of the Sicherheinst.dienst, Willi Win (authoror the bnok "The War of the Spies" which he wrote under the oseavionans HAZN)tise mcently a:rented be the CM on ttre charge of military espionses in favorof the Soviet Union,

2. The arrest, according to correspondence received by HASS at S.:labor&is intimately connected with the arrest of the Leorican CIC Officers LW=end RIME?, presumed Soviet ants and aecomplicee at 111JITL„ Cat the occasionof Min i s wrest, SCS I correepondence was also impounded and the latterpreoccupied by this notwithstanding his efforts to mini-doe the 87ant.

In the oast WASS, .4.11 the period in which hc. lived in Ataetria, tookupon himself to warn morrt. that their contacts with Soviet Colowel =RN inVienna had been discovered. According to MSS, ICITTI f s version was comp/eterlysetisfac tory*

gColonel SIVal is it student at the University of Ler.ingradj LaOf little "mortar= that he was revealed to be a friend of AB4111:13V,Chief or the Soviet Security Service, recent/7 renoved. In the rois ofotodent he was sent to Vienna to locate and eventually phetograph,culbarel notarial in the libraries of Vienna and other similar institutes.Thin tairk was obstruoted by the fact that nearly all the technicians o"libraries and eatural institutes lad been purged because they were Maris.3TET121 then assenbled In Vienna sone of these technicians, Belong when woeHarm who in the put had been a teacher of philosophy and hia.ery at theUniversity of Vienna. He accepted and vent to Vieruut many tilos to see=RH, no hamn being tore in this AS it was astray a cultural thing.Unfortunately, he forgot to connunicete these contocte to the American'terrine..

S C F. T

ittriotti•tt mit , t

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of- Source Coments This Information is ruii: confirmed by another ofSource + , informents tn contact with HASS..