Secret REL Ger - 6 - Sources l. 2. 3. 4. 5. 6. Berlin Berlin, LDP Potsdrun, NDP Berlin, SFJJ Leipzig, SED aerlin ?. Ber~in, SED 8. Berlin, LDP 9. ·Leipzig, SED 10. Dresden, SED 11. Berlin 12. Berlin, SJll) 13. Berlin, LDP 14. Potsdam, NDP 15. 16. :' ... ·· 17. ·.·( . . 10, 1953 10, 1953 12, ·1953 Nov. 10, 195.'.3 Nov. 10' 1953 Nov. 11, 195J Nov. 11, 1953 Neues Deutschland Nov. 11, 1953 Der Morgen ' . · · Le.ipziger VolkSzeitung Nov. 11·, 1953 ·Nov. 11, 195.J Sseohsische Zeitung llov. 12, 1953 Taegliche Rundschau Nov. 12, 1953 Neues De~tschlnnd Nov. 12~ 195.3 Der Morge~ . Nov. 13, 1953 National Zeitung tlov. 1,3,. 195.3 Neues Deutschlam Taegliche Rurrlachau Der Morgen Nntional Zeitung Neues Deutschland. Leipziger VolkBz.eitung Taegliche.Rundsohau Berlin, SED Berlin, .National . Front Deutschlanda Stimme Ber~in Der Sonntag :.:-?:.:· 1 : .. REL Ger Secret 704 Nov. llov. Nov. Nov. 15 Nov. 15 ' (weekly) (cultural weekly)

Secret REL Ger - '- .-, - WSST GE:li\IAN PRESS REACTION TO .THE GEHIBN AFFAIR (Sources as indicated) .. Pankow•s annowicement on Nov. 9 on the uncovering of a Western apy ring jn the GDR and the revelations of Hans joachim Geyer on the activities of the Gehlen organization in ~he East Zone have thus far attracted comparatively little attention.i?'the West German press. Most papers confip.ed themselves to publishi~g factual agency dispatche: Reports on the Geyer affair were generally printed in an incon- spicuous manner. An exception was ,the OonimuniSt press which· . · accorded front-page pr.ominence to the Pankow press conference, Editorial comment was infrequent ~nd far between. Most extensive in their news coverage were two Hamburg pub- lications, which carried rather exhaustive reports on the'circum- etances that led to Geyer's escape to East Berlin and the sub- sequent anno~cement by the Pankow gover~ent; yet they refrained from making ar.y statements that may have been indicative .of their attitude toward the subject (1,2) •. One Berlin paper, which briefly reported on ~he c.aae, referred to Geyer as a "stool pigeon of the state Security Service" (3). · . ':• Of the major West German newspapers, only two·F.ra.nkt'urt papers deemed the Pankow announceme~t worthy of editorial treat- ment. After having dealt with the history and the present activities of the Gehlen organiza'tion, the pr6-SPD Frankfurter Rundschau advised the l3onn. gover~ent against ta.lcing chB.!ge of this.agency should the u.s. occ~pation forces release it from their jurisdiction after th~ European Defense Community has· come into effect. It emphasized that, with the normalization· of the ·political ·conditions in the FE'.deral Republic, the "Americana ·intend to get rid of Gehl en in the moat inconspicuous .wey possible." Apart from the :fact, .it continued, t.hat an incorporation of· Gehlon•a organization into the corresponding institutiop of the Federal Re- public would be lOO .costly, it would also not be feasible from a . political· point of view. "The future of this. 'efficient• organization concerns all of us; it is too serious a matter to be left et the discretion of the government alone. It must be borne in miiid that such an organization may some dey defeat, on tho strength of its inherent· power, all tboso whose favor it ·is at present seeking. After all, this organization is nothing but the ·product of a tota.litarian state; and no one ca.n tell whether it can at all be trani:iplanted into a 'democracy" (4). · The independent Fr~ter Allgemeine doplored that the Gehlen organization had "frivolously endangered the lives of innooont 11 Ea.st Gorma.ns, al though it is generally acknowledged that "exports who carefully scrutinize tho Soviet-licensed press, monitor Eaet · REL Ger 705 Secret

Secret REL Ger i ' German radio broadcasts, investigate r~fugoos, and. estabiish un extensive file on the basis of the docwn0ntary matcriRl thus gath8rod are able to form a precise picture of conditions in tho Soviot Zone without imperiling innocent people" (5). A rightist Nuremberg paper voiced a ·similar opinion when it said that thci "unfortunato" people in tha GDR who worked for the Gohlon ·· organization out of idealism e.nd patriotic passion have risked their livos for no good cause. ·The paper blamed the "increasing deterioration and 'corruption" of the modern intelligence agencies. for the "liquidat.ion of ·hundreds of people" (6). The attitude of the Comrnunist-sponsor~d press was typically reflected in the commentary pf the mouthpiece of formor Reich Chancellor Wirth, which camo out with a vehemont attack on tho "disgusting methods" of tho "Amcrican-finanoed" Gohlcn organization. The'pe.per claimed that.the June 17 riots, the,"notorious" activities of the ·lIDJ in Hesse, and tho G€yor affair are all. indicative of the West's .intuntion to "prepare a world war" (7). Sources 1. 2~ 3. 4. 5. 61 7· Hamburg Hamburg Berlin Frankfilrt Fre.nkfuh Nuremberg Fulda Dio Welt Der Spiegel Telegraf Frankfurter Rundachau Frankfurter Allgemaine Nuernherger Nachrichteh Deutsche Volkszeitung REL Ger Secret ' ' "' 11 ,., • 706 Nov. Nov. Nov; Nov. Novi Nov. Novi 11, 1953 18, 1953 10, 1953 17, 1953 20i 1953 11, 1953 11, 1953

~___ J_--L.L--'-~ . .:.-: Secret REL Ger oofp-rm-) StCliET SECRET/RELEASE TO GERMANY ONLY nu· ·, 1 It.• ...f. ) MEMORANDUM FOR: The Director of Central Intelligence SUBJECT: ADN Press Release on the Gehlen Organization 1. The information in the attachment is so de- tailed that the possibility exists that it is the re-· sult of' a high level eastern penetration of the ZIPPER organization. The details are being e.mmined at the Pullach Operations Base to determine the date ot the information and possible source thereof. No penetra- tion is positively known at the present time. . 2. The information could also represent a high level penetration of government circle~ in Bonn, e. g. the Blank Office. The information which has beeri used to brief various officials when combined w1 th other items obtained from CE ope;atione by the opposition could result in this e:z:pose • 3. The obvious intent of the publication is to panic ZIPPER personnel into moves which will pegate the effectiveness of the organization. Therefore every effort vill be snade to investigate thoroughlJ', and the utmost secrecy must surround a:ey suspicions we may have. •• RICHARD HEIMS Attachment (1) A'VN /)~ SECRET/RELEASE TO GERMANY ONLY 707 REL Ger Secret

r>cL uer SECRET/RELEASE TO GERMANY ONLY tu·.~(. Ef/FI/O/DAILY LOO - 19 D.&:EHB.m 1953 The &1:1t CerLAa.n na\.ls". flgency 1 ADN, has published on i ta Fast Be1·1in talet;111e to tbe SovZone, 17 .Decernl.ier 1953 1 .e. lcnghty sensational account, credited to recant ai;-rested ZIPPER ~gents, of U.S. oontrol of ZIPP~. In this report, Zif•PhH is iue11t1fied a.a an organization of .2 1 000 official employees vho arv e11g1tged in support of U. S, war and disruption policy in GerlllB.ny and the Adenauer off'1a13·rs have be-m asaigne~ Forty U. Gover1~~ent. s. espionage from Washington to direct and\ Ul8.inta1n financial control over the organi'.l.ntion at its headqull:t'te1•15 iu Pulliich. Gilhlan is "described a.s a f'rout man, who has wou out. over Theodo1· BIJJlli 1 a int~lllgenoe oompet1t1on for the position of .fti~ura penettations of the Bundesamt fuer am·. aaotion in In addi tfon to Verfae::;un.~schutz (BfV), the Blank Office in the person of General Adolf lleusinger, Gehl en is reported to have a venatration oJ..' U. S, Head- 11uartara·1n G~rmany, decisions on who keeps him inforined of U.S. ZIPPER. SECRET/RELEASE ·TO GERMANY ONLY REL Ger Secret 708

Secret REL Ger SECRET/RELEASE SECRET -TO GERMANY ONLY MEMDMNDUM FOR t Chief .of Operations SUBJEC'1'r Report entitled "United statea 111\elllsenoe Operationa 1n <lerm&DJ" - relardina Oeneral Oehlen'e Organiae.tion Altbousb ~report, "lh S. Intelligence~ t.iona 1n Oeranr', b'Olll one of Mr. Walter L1J>Pl&Dll'• etr1naere in Oermao;r 18 es.aeatialq accurate repnUq the dftelOJ119Dt. ot tba Gehl.en Ol'pDiJlaUon umer u. s. trusteeohip t'ralll 194' to date, 1t doee oonta1n etrik.ilig erran ana 41at.ortai half-.t.rutba on points where 80\U'ee 1e clearl3 mieinf'onecS. ~. 2. · "the tollov!As 1e a brief out.UM aiuepreeentationa ea o~ to the tact.en a) Oehlea'• flre~ mme 18 gi'ven aa a0usta.~, an enor a) noteVOl'th1 ~ Oenenl Rttpmm .Geblen ill well bow aa tbe obiet ot a 11.·s, isub- . a1419'4 Veet OeimaD in~ 11gellci8 group SA both of· tic1al aad unott1oial c!Hlea :ID tb6 redoral vhicsb baa appeved h'e- qwmt.11' 1D the &!Id u. s. Eari OerlDan preea in reoent veeu. ot · . BepubUo • .·., b) Souroe ident.itiee ~ u~s.­ apoa.eored West ·aenaan sabotage Souroe olftioual.7,.... ten to ta. BD1, tilhi.cb b) orpa1ation, QllOsecl iD 19'1, •• an 1Dat.Nnetlt ot tbo Geblea - · UJlOled 1A the tall o) Source·olabsa that General 1\aith vent "t.o ae~, roi- . lov1"8 a joint Umlst1pt1cm of t.he BDiT lv' the ~edonl ftepublio am ti. s.. High Cammiealon, to 1101-.A tbe orpnba.tioa out"• o) Oeneral Sad.th never CJ1'811ft1ation. ot 1952. Oehl.en ... lD DO ""1' involved. to Gel'!lllUJ¥ purpoee. wnt, ff# thle SECRET/RELEASE· ' i TO GERMANY ONLY .l I ,. I 709 REL Ger Secret I

Secret REL Ger ~ i: !I i SECHEl SECRET/RELEASE -2- d) Gehlen 'a start we in- diecr11111nately selected "etut.ing from a bandtul or tormer SS otticere and .Nada 1.n. 1945"• the lla11 elemellt . nov ~omiDa tee TO GERMANY ONLY d) During the' war, Gehlen 1 a statt we the G-2 of the f'resnde Heere Ost (&lat.em Armies). 'l'be gret.1test per- centage or his atatr ie com- , pooed of .former Genll8D Gen- . eral Sta.ft officers and canser AbwhJ' personnel. nie · fev former SS otficera and Nau ~rt1 members, vho t~ employment in the organ- 1at10Jl in th• 1Jmnad1ate poat.- the organ11a- .t1on. wr per~od, bave been tired. Uut reminder bave been de- aa~1f1ed. ' : e) u.s. intelllpnce 1a de- pendent upon Geblen tor 1ts e) L1pp!llU1D 8oY1et and Satellite OB coverage. Instead ot de- " It is noted that 1-lr. hie been reaBSurel veloplag ite own netvorks, that this 1a not t.be case. Oeblon'a prod.uct.1on ia of value t.o ~.s. m1lltary CIA 1a relJ1ns on the Oennans. autbori U~a 0Dl7 1naofar es 1 t aupplemeate and oontil"lll&S t) 'l'be Aoericallll fB•or aub- ordinatlon ot the Oeblen group to ·tbe future V11t Oerman De- t) our own intonation. It 1• not our iDteatioa to interfere in tho iDterDal attain ot tba Adenauer teaae ·Nilli•t.1'7 folloviDc nU.. tS.oatioD ot Agr--.u. Oovenment. Cbanoellor Adenauer, himeelf 1 baa ata ted bia intention to in- ~· Contractual teP"a te Oeblea' a orpniaa- Uon into tbe Federal ChaDoellor7• It 1e true that Blallk and Olobke cUt- ter on cert.ah details of the Jll"Opoffd lepliat.i.OD Of 0eblen 1e It.aft. 3. la vtev of recent, vida-spread p1bliclt7 on the Oehlea orpnleat1on oad tb• hot that u. 9• aponaorabip1• aov knoVD tbl-ougbout Weetern Europe end the ~!et Bloo, lt might be adnaable to intorm Mr. Lippurm that ae trustee of th8 Oebln SECRET/RELEASE TO GERMANY ONLY SLCBJ·T ·REL Ger Secret 710

Secret REL Ger ~£CR El -' - ·.! orpnization, CIA ., SECRET/RELEASE TO GERMANY ONLY has toaterod it. aspirations to be ~ central, n&tional intelligence service of a eovereip West Oerman Govom- me~. In addition to eubddi11i11S 0eblen'11 orpnir.at.ion, we have and 1nrorma- .. tbl& West 0wman . :. , :~ed prot~H~onal guidance, ~s~ eq\ls.piient . UOD. to his ateµ tor the P:ai'PD&e ot .~\telOPlns · "· iJlt~lligonol gl'OIJP to i to present prof~~·.~onal C<XDpet.ence • . " . . · ·· . . . :'. .. ~~· Ad~~r me.,g~ven us hla ~uhocal.. ~.s,euro.noe!J tblt .. ... · .. ,:....tM.organ.1aat4on.;vJ,U b& lepl1111ed vhe?. the C®tn:otunl·~ · · · :·. .ment:i· have been ratit1e4. 'lbe and· _have been ad- . Vi.~ •. 'cff1c1a~, ot intereafte lD the oBbleD Ol'pnisatlon our .~· 1~ tu.tun~"" · · · Atta . .au'bJeot nport ~';F,1otz~. '21 'Deo811lber 1953 · ..:.:.•:.:.· · · ·· Distribution 1 <>rig &: 1 .. Addresaee 1 ... DC/EE files ·2 .-. D/1Io/Z/ > i ·' .· SECRE't/RlElEASE ···rm·····G·ER•l\llAN'f·····o·N·.tY·· I I .I 'I ·' 711 REL Ger Secret

Secret REL Ger At the eoo ot the wr, in 1945, the American Amy 0-2 seotion assembled in Pbdoh a group o! former Oerman otficers who had been servine on the Russian front, and eot them to \IOJ'k recording all they i lcnev about Soviet military organisation 8.lld ca:pab111ties. ~ a rather indieorimi04teq-ehosen lotJ L ! [-: I that Da lot ' lI Of US ~. ot voold be in landaber-g i t We they vere them 1n tact rem&rked \llllJ"tUl t t here• II But in . UlY caae they vere g1-ren the job of vrlting up all the7 oould recall •· l on Soriet order of battle; ~ a~t ~vi.dual units and bov tbe7 I ! tfU8"t, about So'liet taotios and weapons, etc., etc.; l 1he senior officer of the group tbe equbalent 1'GDk ottioer tor one or Oust.av Yon CJeh~ir Woe witJi V88 or br!pdier general, had been t.h.- Anq groups on the Soviet & German G-2 front. OehleD emerged eventually ae U. director of the Jibnich operation, vtdcb 1a DOV know in 0el'IDIUV' as the •Oehl.en groupn. Aa cl1ttioult1as \If.th the Ruaaiane inareaaed, the AftJ¥ 0-2 eeotlon eh1f'ted ower fJ'OlD mnly 4rav1ng on past recollections r to the p.theriag and 811Al.711ng cf new Soviet ClrdeJ' or ot these of'ticera Battle 1nteU1~ pace. 1be evident reaeonlng of the Azaeriaaua w.s th&t these ·ottioera, v.t.t.h tlteir d11'8ot battle expeJ'ience, could till a pp JDOet etteotiwq ' 1n our 1ntelligenoe on the state of the aecs .&rm;y. f'\mda wre put behiM the Oehl.en group ud it \118 Aocordingq, assigned a aeries ot intelligence taeks, 1Jhioh 1t perf'o:rmed, evtdentl,y, and WJ"J well. !his aitU&tion oontinued unt.11 19.49. REL Ger Secret 712 ~ 'Hey' e.tteot.1vel7

11 Secret REL Ger ··;; intellieence - 2 In that year, u a rootllt of agreement in Washington,· for the Oehleu group was. tnnsterred trom Army G-2 Intelligence .ney. reapo~ibility oeotio~ to the Central tb!er CIA, ·the iJJt.ell1genoe-gatherlng t\mot1ons end the etatt ot BT nov, the Oehl.en group continue4 to eJ:il.uogie. it was plaoe4 on a . Gshlen group p!'O'l1&l4 111111taJ'7 intomation f'rolll Bast.em £uJoopo "oont?aot bs.sie" by vbich the United States· prodded f'l.mds, fUld t.bo aJld tbe eatellit.ea. ibis coutraot, however, is lllld.ted ~ tbe idea at the time being in otber fields U)'V81' - that -the such Oeblen P'OUJ> vwld .not be indulging as OJ191'8t10U dbect.e4 in countliee ot.her than· the -.tellites, or t.ha p.t.herl.Pg sence t.o .ad.llt.an 1ntont!ltJ.on; ot poltt.ioal or eaonoido intel.11- (1 ••• , F.as~st tnde, ~r Colmuim:lat .JJllZ'V aot.1vit1ea)~ Die first avbud break on Oabl.eD B'J'OUP aoti.-1 ti.ea oa. 1a Genl&JQ' in the tall ot 19'1, an the Mlrilete-lftaident of t.b8 1tata ot Basse mldenq disoloaec! to hta parl!ameDt that a 8l'OUJ> of YO'Ullf 0el'lllBD8 had been trained in sabotage work at the dbeotton ot the American using a camp in tbe 1'l\JDU11 lbmta!m of 0el'DUl71 Qd that th1a IJl'OUP bad c1NVD up a tlbl.a0kliet 11 ot mmbera I ~ ' cu, ot. the • Social Dllmocrat.ic JlU"V ". . • &114 o~r poll tical leade1'8 1.11 OmaaD;J waa tb97 plal'lll8d to "ellmiDat.e • ~·u t.he 1lu881ana should ·happen to at.taok • .., . ~· 'Jbe taota ot the case seem to be that the CIA oonoe!wd. the idea that trained saboteurs should be left 'behilld in OenlllD;Y it tbe .Alllel'ioan ktTq ever had to ret1'88t. 'l'be;y should be equipped vi'th suppl.lee tor ·' 713 REL Ger Secret