Aircraft Carrier Wallenstein, Harbour of Talcahuano, Chile, Sunday, 29 December 1946
While many of her crew enjoyed Chilean hospitality ashore others were busily engaged in returning the ship to her primary military role. The aircraft, vehicles, and other military equipment that had been carried for the sales tour were ashore, and being appreciated by representatives of the Chilean Army and Air Force, and the salesmen who had occupied cabin space in officers’ country had disembarked for the last time. On the hangar deck crews were assembling the spare aircraft that were normally stowed away to replace combat losses; these would return to the Wallenstein a semblance of an operational air group. It was apparent that the military equipment not delivered to the Chileans would be shipped back to the Reich by other means, which led to speculation by the more idle of the crew as to their next destination.
Berlin, Offices of the Ministry of Economics, Monday, 30 December 1946
Rimas Kurtinaitis was not a happy man; as Lithuanian minister to Germany he always had the feeling of being the spendthrift going hat-in-hand to a rich uncle for a loan; to his distaste too often that was exactly what he was called upon to do. He knew that much of the foreign assistance provided to his country in the wake of its civil war had been squandered on useless prestige building or diverted to the pockets of favoured politicians. However, as a commentator on diplomatic practice had written centuries ago, “An ambassador is one who is sent abroad to lie for the good of his country.”
Today he called upon Otto von Hapsburg, the German Minister of Economics, to raise the perennial question of Lithuania’s customs union with Germany.
“Excellency,” he began, “on your last visit to my country you indicated that you would work towards a fairer interpretation of our agreement to permit a greater level of protection against the dumping of industrial products by German firms. To date, nothing has come of it.” Kurtinaitis felt that a direct approach would hurt no worse that diplomatic niceties; he did not really expect any movement on the issue.
Von Hapsburg sighed. “Not at this time; my staff is still investigating proposals that could be implemented, but the stumbling blocks remain – your government’s restrictions on foreign direct investment and the unfortunate tendency of borrowed capital to vanish into an abyss of bureaucracy. Put simply, Lithuanian firms cannot compete in an open market with their German counterparts at any level.” They had gone over all this ground before.
Kurtinaitis knew the truth behind von Hapsburg’s assertions, but he was nothing if not a professional diplomat and protested, “Excellency, we are a sovereign nation and will not change our laws to suit German whims; and I deeply resent your suggestions of malfeasance on the part of any member or employee of my Government.”
Von Hapsburg was not a diplomat, and the Wilhelmstraße would not have approved his rejoinder. “Lithuania is a sovereign state because the international community expended lives and treasure to keep it that way, and that same international community is very disappointed by the authoritarian manner in which President Grinius has kept a stranglehold on the office over the last decade. If you expect any change in German economic policy towards Lithuania, that change must begin in Lithuania.”
He let his words sink in, and Kurtinaitis made no immediate reply, so von Hapsburg continued. “For example, you wish Germany to buy more wheat and rye from your national granaries, but the declared cost price cannot compete with the same product on the free market. At the same time, your national granaries refuse to sell wheat, rye, and other grains to Lithuania’s distilling and brewing industry except at prices five times what you ask us to pay. Turn your surplus into alcoholic beverages and you can sell them on the open market anywhere, ease your surplus, and earn foreign currency to pay off the debts your Government has already contracted.”
Kurtinaitis forced himself to show no reaction. The long-running battle between Grinius’ supporters and the distilling interests was well known in Lithuanian political circles – it was but one of many. Privately, and silently, he agreed that von Hapsburg’s suggestion would benefit all sides in the economic debate between the two nations – except for the agrarian interests who could lose their artificial super-profit.
Berlin, Abwehr Headquarters, Tuesday, 31 December 1946
Generalmajor Hans Oster knew that it was unlikely he would succeed Canaris as the permanent head of the Abwehr; he was too much identified with the Old Man’s priorities, and times were changing. The latest precis from the Armbrust working group made that clear.
Some days ago Nikolaus had visited Petrograd to caucus with his Russian counterpart, a colonel of the GRU named Zentsov. Not surprisingly, the Russians knew a lot more of Nordmark’s activities in atomic research than their original request to their allies for information had at first suggested. They were quite aware of the identity of the principal players in the military and political side of the Nordish programme; all Nikolaus could do was identify some of the physicists involved. The data Armbrust had gathered on the stockpiling of materials by the Nords was useful and confirmatory but not decisive; it merely outlined possibilities.
The surprise revealed by Zentsov was a move by President Fyodorov to take up the matter directly with the Nordish prime minister; this apparently in the wake of agreements between Nordmark and Bharat on the development of atomic power for generating electricity. In response the Nords had provided a written undertaking that their development programme was aimed solely at the peaceful use of the atom; Nikolaus had even returned with a facsimiles of both letters. According to Zentsov, the Russians were much allayed by this, though it was to be expected that developments in Nordmark would be watched.
“Trust but verify is an old Russian proverb” Oster muttered to himself.
Such was the damnable genie presented by atomic energy. As Armbrust’s own estimation had shown, the basic research towards power generation could all too easily be channelled towards weapon development, though that would require a massive diversion of effort. Oster was aware of Germany’s own basic research efforts, and knew of such developments in Russia, France, and – so it was rumoured – in the United States and Japan. He felt it he felt that it would prove necessary to follow Russia’s lead and maintain a permanent and pervasive watch over developments elsewhere.