Diplomat's Troubles

Most uneasy diplomat in the Western Hemisphere last week was Germany's Ambassador to Argentina, Baron Edmund von Thermann. Before his eyes one of the Nazis' neatest, costliest propaganda machines was being turned into junk. What was worse, it seemed likely that he would shortly be back in Berlin where he would have to explain what went wrong.

Baron von Thermann has found Argentina a fairly fertile spot in which to sow the seed of Nazi doctrine. Though only about 235,000 of Argentina's 13,000,000 inhabitants are Germans, many of them are well-to-do and influential. German-controlled investments in the country add up to about $1,500,000,000. The Argentine Government, under Acting President Ramon S. Castillo, has done its best to turn an austerely neutral face to the world. But in spite of several stump-toed Nazi plots (including one for German annexation of Patagonia, uncovered in 1939), the only formal action that Argentina has taken against the Nazis has been to order the Nazi Party dissolved. The Party simply took to cover behind German "cultural" and "welfare" organizations.

Last month a committee of the Chamber of Deputies, headed by young Raul Damonte Taborda, submitted a report showing that Ambassador von Thermann had received funds from these societies (TIME, Sept. 8). Last fortnight Investigator Damonte followed this with a report on the expenditures of the German Embassy. The figures were enough to make the Argentine press and Chamber of Deputies see swastikas.

Embassy expenses have risen almost 600% since World War II began. From the middle of 1938 to the middle of 1939 the Embassy needed only $835,000 to conduct its affairs, but in the year ending this June it had spent the whopping sum of $5,800,000. The money had come from Berlin banks, from Argentine-Germans, from German business houses.

Where the money had gone was not easy to discover. Almost $900,000 might be regarded as legitimate Embassy pin money. More than half a million dollars had disappeared into the convenient anonymity of bearer checks for amounts as high as $200.000. Better than $4,000,000 had just vanished.

News of this secret $4,000,000, on top of the earlier Damonte reports on Nazi propaganda work, produced an explosion. Irrespective of party, Argentine Deputies tumbled over themselves in their anxiety to know more, to take action. Introduced into the Chamber last week was a resolution, supported by all political parties. Its chief points: 1) Ambassador von Thermann had abused his privileges; 2) leaders of German culture groups should be deported.

Busy drafting protests of innocence to the Argentine Foreign Office, Ambassador von Thermann had the added worry of an unpopular guest. This was Captain Fritz Wiedemann, who was ousted this summer from the German Consulate in San Francisco.

Captain Wiedemann suddenly turned up in Rio de Janeiro last week by plane from Europe (TIME, Sept. 15). To reporters he said expansively that he had a "special mission" in South America that would take him to Argentina and Chile. On hearing this, Deputy Damonte sent police to the Buenos Aires airport, announced that he would question Wiedemann closely the moment he arrived.

Harassed Ambassador von Thermann sent an aide flying up to Rio, presumably to warn his colleague away. Nevertheless Captain Wiedemann arrived in Buenos Aires, announced that he would stay "a few days." For the Argentine Congress this was the last straw. With but one dissenting vote it passed a resolution directing Acting President Castillo to expel Ambassador von Thermann within three days.

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