Wostwag was a very commercially successful trading cover for the
Soviet secret services' operations across the world in the 1920s and 1930s,
acting as a cover for many illegal 'Rezident' agents and providing funds for
local Communist parties. Its connection with the NKVD was brought to Western
security agency's notice in the late 1920s by NKVD defector, Walter
Krivitsky.
Originating in Germany in 1924; after the accession to power of
Hitler, to avoid 'Nazification' and undue interest into its affairs, its
international branch offices became autonomous creating a very complicated
structure of separate companies.
Out in China, Wostwag had a sole monopoly of trade with Urga in
Outer Mongolia, with 50% of its profits going straight to the Moscow State bank,
Its operations concentrated on the fur business - in 1936, its General Manager
Adam Purpiss, who had sole power of attorney over the company's finances banked
over $900,000 in the Chase Manhattan Bank, New York. Evidence shows some of
these funds were used for purchasing aeroplanes from America and Holland for
Outer Mongolia - but the Chase believed that Purpiss was and a former member of
the Cheka and also "one of the shrewdest and cleverest men the Far East"..
Purpiss also travelled under a fake Honduran passport.
Wostwag were notably alleged by the Chinese police "to have
imported arms and ammunition for the Chinese Communists and to have acted as
their bankers”.
The subsequent careers of some of the persons originally
connected with WOSTWAG in Germany, as revealed by the FBI report received in
January 1949, suggest that WOSTWAG was in fact the first of a network of firms,
whose establishment was probably encouraged by the 4th Department,
and which was ultimately represented in the UK, France, the USA and the extreme
Far East.
Unfortunately the vital details of espionage activities on
the parts of the firm and persons concerned in the business network have not all
come to light, but there is sufficient circumstantial evidence (particularly in
the links with known Soviet Military Intelligence officers and “speculant
agents”) to warrant all the companies and personnel mentioned in the following
paragraphs being considered as having been consciously involved in 4th
Department operations of some kind.
The whole issue is obscured by the large amount of genuine
business conducted by the companies in question and by the undoubted business
aptitude of most of the 4th Department men connected with the network. The
following account is a digest of the 130 page FBI report made with a view to
concentrating the essential facts of the case and explaining simply the
connections between the companies and persons mentioned in it. A few additional
details from other sources have also been included where they throw further
light on the activities of the companies or their employees.
The whole case is still under investigation by the FBI in
America.
The following were significant persons connected with
WOSTWAG in Germany between 1923 and 1938 and provide the main links with the
companies later formed in England, the United States and the Far East:-
(i) Aron EHRENLIEB - 1923 to 1925/6
Director. 4th Dept
junior officer.
junior officer.
Speculant officer.
(iv) Adam PURPISS 1923 – 1936.
Manager in the Far East. 4th
Dpt officer or agent and
reportedly an “Agent of the
Comintern”.
(v) David ROSENBLIT 1923 to 1933.
Director.
(vi) Joseph RUBER 1923 to 1936/7. Held
Power of Attorney for
Wostwag.
(vii) Jacob KNOBIL 1923/4 to 1933. Held
Power of Attorney for
Wostwag.
(viii) Boris Niemcow 1923 to 1933 (1938?) Book
keeper.
(ix) Ernst CZUCZA 1923 to 1933.
Manager.
Berlin prior to 1933.
It is of interest that all the above have at some time
visited the USA (the EHRENLIEBs alone being refused admittance) while at least
six of them are still there, having entered he country at the beginning of the
1939-45 war.
Of WOSTWAG’s capital stock in the CHASE NATIONAL BANK, 75%
of the total of $100,000 was held by Alfred DEVINGTEL, of WOSTWAG in Germany,
and 25% by Claude A. TUPPER of Chicago.
Payments made by SOCIETE to WOSTWAG are reflected in the
accounts of the FAR EASTERN FUR TRADING COMPANY of London. Usher ZLOCZOWER and
Rubin GLUCKSMANN, both of F.E.F.T.C., London balanced the books of the SOCIETE
in 1937. KLEGES sent $150,000 to Adam PURPISS in late 1936 to establish the
ORIENTAL TRADING AND ENGINEERING COMPANY, New York.
By 1931, Wostwag, Germany, had established branches in Urga,
(Outer Mongolia), Harbin, (Manchuria), Kalgan (near Pekin, China), Hankow
(China) and Tientsin and had bought over the ORIENTAL TRADING AND ENGINEERING
COMPANY, Tientsin. These branches were mainly concerned with fur shipments to
Europe from China and Mongolia.
In 1933 it was alleged that the R.I.S. agent, Albert
FEIERABEND was in touch with the Tientsin branch of WOSTWAG.
The local manager in 1931 was Aron EHRENLIEB, who appears
to have arrived in China in that year and to have stayed until 1937. In January
1937, THE CHASE NATIONAL BANK, Shanghai, stated that according to a confidential
source large sums of money were from time to time remitted by WOSTWAG to the
interior of China for purposes which were not clear. The bank stated that
EHRENLIEB always refused to discuss the operations of the firm or to submit any
figures.
Adam PURPISS appears to have directed the WOSTWAG
organisation in China in about 1937. He stated that WOSTWAG and O.T.E.C., Far
East were entirely separate, but the stockholders of each had certain interests
in the other. This statement seems at variance with the fact that O.T.E.C., Far
East was legally transferred to WOSTWAG in 1931. In 1937 the CHASE branch,
Shanghai, commented that WOSTWAG branches in China had for a number of years
been more of a Russian than German concern.
Originally, a member of the WOSTWAG organisation in
Hamburg, he first came to notice in the Far East in 1936. By then he had,
however, been in Tientsin for sometime with the ORIENTAL TRADING AND
MERCHANDISING COMPANY.
PURPISS was General Manager of WOSTWAG in the Far East and
of the ORIENTAL TRADING AND MERCHANDISING COMPANY, when the latter was a
subsidiary of WOSTWAG, while he was General Manager of O.T.E.C., Far East,
following its purchase by the New York company of the same name.
In April 1937, PURPISS ran a private import-export company
at Kalgan (near Peking) under his own name.
PURPISS made at least two visits to the UK, one in October
1936 and a second in October 1938. On both occasions he stated he was here on
“Fur Business” and on the second is known to have contacted GLUCKSMANN of the
F.E.F.T.C.
Born 6th June, 1889, at Wonkowitch, Russia. Married
20th April 1912 in Vienna. Wife, Gabrielle, born 4th June
1884 in Vienna. Children Walter, born 21st September 1913, Eric, born
11th December 1920, entered USA from France on 6th
September 1939. Stated last place of residence was Paris.
ROSENBLITT was a director of Wostwag in Berlin from about
1923 up to September 1933. In 1929 an S.I.S. report on the methods used by the
Comintern for transferring funds to local Communist parties named Wostwag.
Germany, as being concerned in these transfers and cited David ROSENBLITT as the
company’s liaison man with the Comintern transfer committee.
He is now in the United States (1949), where until at least
1946 he was operating an import-export firm known as SOCOMBO
[CIMG2441] Contains :"In addition, “WOSTWAG” is also reported by the Chinese police to have imported arms and ammunition for the Chinese Communists and to have acted as their bankers”."
-2-
/founded at Tientsin by one of the then directors of
“WOSTWAG BERLIN”, David HALTSGECHT ?, while Aaron EHRENLIEB is believed to have
opened a depot in Turkey and possibly in China and possibly also in Roumania
before going to China. Between 1926 and 1931 there was a rapid expansion in
China, Manchuria and Mongolia, with further branches being established in
Shanghai, Hankow and Harbin under the name of “The Far Eastern Trading Company”
and in Urga (Ulan-Bator) the capital of Outer Mongolia, under the original name
of “WOSTWAG”. A branch under the latter name at Kalgan (Wanchuan) acted
apparently as a link and staging depot between the Chinese and the Mongolian
offices. “WOSTWAG-URGA” developed close contacts with the Ministry of Trade and
Industry of the Mongolian Soviet Republic with the “Harodni Ko-Operativ”, and
the “Mongoltrans” (the state transportation company), and is believed to have
enjoyed a communications concession in Outer Mongolia, valid till 1929. In that
year KRONBERG (not yet identified), a Latvian, joined the Chinese firm, which
was renamed “The Oriental Trading and Engineering Company”. Dr. ZLOCZOMER in
1930 took over the Tientsin branch from Aaron EHRENLIEB, and on 16th
June 1931. “OSTWAG-BERLIN” became the overt proprietors.
6 All these branches were engaged in the import
into China and Soviet territory of German manufactured good, particularly
chemical product, machinery, cars and lorries; the purchase and export to Russia
of Chinese tea, silk, etc.; and the export to Europe and America of Russian and
Chinese furs, “casings”, bones and skin glue. The Hamburg branch was the chief
European depot for these imports. Amongst their chemical interests, the firm
held from October 1931 an exclusive concession in Mongolia and Manchuria for
“The Continental Caoutchouc [rubber] Co. (compare “Le Roi de Caoutchouc” in the
TREPPER (“Rote Kapelle”) [Red Orchestra] case and see conclusion, B below).
In addition, “WOSTWAG” is also reported by the Chinese police to have imported
arms and ammunition for the Chinese Communists and to have acted as their
bankers”. Apparently no money was handled at Urga, all business being on a
barter basis, but large sums were sent to the interior from Shanghai.
[To see a high resolution image click here.]
7. U.S.A. To facilitate these developments,
an account was opened on 4th September 1931 with the London office of
“CHASE Bank of New York”. This account was later transferred to the H.O. of the
Bank in New York and monies were transferred via New York from the Far East to
Berlin. The capital stock of the holding company (WOSTWAG-BERLIN) was then
declared as $100,000 held as to 75% by Alfred DEVINTEL of Berlin and 25% by
Claude A. TUPPER, an American citizen of Delaware who had been a mining engineer
in China. The Articles of Association of the company, first modified on 15th
September 1927, were again….
[CIMG2442.jpg]
- 3 -
Later on 6th June 1934, a firm: “By-Products
Importing Co,” was registered in New York, and almost immediately (25th
June 1934) absorbed by a new firm, “Pacific Merchandise Corp.”, whose president
was a Russian-born U.S. citizen, ex-British (?Palestinian) national Ernest
WRIGHT of Pennsylvania. Associated with him were Boris NIEMCOW and Adolf
STEINMANN, both former employees of “WOSTWAG” (for personalities, see Appendix
A).
8. France. On 25th September 1933
the Bank was advised that David ROSENBLITT [SIC - ROSENBLITH spelled differently
elsewhere] had resigned and that Alfred DEVINGTEL (Berlin) was now the “sole
manager”. This was apparently due to the fact that all Jewish members of the
firm were leaving Germany in consequence of the Nazi racial policy. Some had
gone to the Far East, others like ROSENBLITT, went to France, where they set up
small import and export businesses:
“SOCOMBO” “Societe de Commerce des
Boyaux”, i.e. “casings”) ROSENBLITT (1933-1939).
“SOCIMEX”
[HOCHSTEADT] HOCH STEDT
(1936-38).
“PRODIMEX” (“Products, Import &
Exports) CZUCZKA
(1933-38).
“----?-----“ (Societe pour le Commerce
d’Outre-mer) ZLOCZOWER
(1933-38).
(For these personalities, see appendix A.)
9. England. “WOSTWAG” had been represented in
England since 1924 by I. RICHMAN and Co., Cross Keys House, Moorgate, E.C. On
15th February 1936, ZLOCZOWER, (then in Paris), and Aaron EHRENBERG
registered “The Far Eastern Trading Co.” in London, the latter person being
replaced on 1st November 1937 by one Reubin GLUCKSMANN, a former
British subject (Palestinian) (See Appendix A, No. ). The U.S. interests of the
firm were handled by Ernest WRIGHT of the “Pacific Merchandise Corp.” (See para
7, above). A check on cable traffic of this firm showed that though throughout
1936 they were in frequent contact with France, Austria, Switzerland, Canada and
Russia, between then and 1938 the traffic had been confined to London / U.S.A.
10. WOSTWAG’S Chinese Interests under the American
Flag. For a time after HITLER came to power, “WOSTWAG” in the Far East
had been obliged to operate under the Polish flag, the German consul-general at
Tientsin having refused to continue
/official
[CIMG2443.jpg & CIMG2447.JPG & CIMG2448.jpg]
- 4-
/official recognition of a firm strongly rumoured to have a
powerful Soviet backing, and who were discovered to be paying 50% of their
profits to the Soviet Union in return for their monopoly concessions rights. The
Chinese H.Q. of the firm was therefore transferred to Shanghai, and one Adam PURPISS, a Latvian travelling on a Honduran passport, came from Kalgan to take
charge, and subsequently visited the U.S.A.. An account was opened on 11th
December 1946 [SIC – should be 1936?] with the CHASE bank of New York by a
deposit of $150,000, consisting of a draft on the Manufacturers’ Trust Co., New
York, on the instructions of one “F. KLEBES, Paris” (See Appendix A, No. ),
the alias of a Soviet Military Intelligence agent of very old standing;
according to the Bank records Mr. PURPISS had been introduced to the bank by
Ernest WRIGHT of the “Pacific Merchandise Co.” (see para 7, above). On the same
date, 11th December 1936, “The Oriental Trading and Engineering Co,”
was incorporated in the state of Delaware with a capital of $150,000 held by two
U.S. citizens TUPPER and CLARKE, with PURPISS exercising full power of attorney
on its behalf, for all acts performed by its outside the U.S.A.. On the 12th
December 1936, the firm, whose Chinese branches enjoyed something like a world
monopoly in the supply of marmot skins, formed a selling agency with 50%-50%
basis with the KITINGDON-SCHILD Fur Corporation of New York under the name of
“The Chinese-Mongolian Fur Corporation”. Ernest WRIGHT was to have desk space at
KITINGDON-SCHILD on behalf of the “Oriental Trading and Engineering Co.” The
“Oriental Trading and Engineering Co.” henceforth enjoyed full extraterrestrial
rights in China as a company incorporated under American law; “WOSTWAG” in
Shanghai continued its business ostensibly unconnected with the new American
firm whose head office was at another address at the same city. During the same
year, 1936, according to the books of the “Far Eastern Trading Co.”,
approximately $900,000 was transferred from Urga, via the Moscow Narodni Bank
and MARTINS, London, to the credit of WOSTWAG in New York
In October 1937, over $100,000 was transferred to “The Far
East Fur Trading Co.” London, for the credit of WOSTWAG-URGA, by “F. KLEGES,
Paris”, and also by the London firm to Shanghai. It is presumed the Paris office
had received the monies from Berlin.
11. On his return to China, PURPISS took over an agency
for Chevrolet cars and opened up free driving schools for Chinese drivers in
Tientsin and Kalgan. He also bought an expensive radio set and 100 spare valves. In the summer of 1938 he is reported to have been in Europe, and even London,
where in October
/called on.
[Nigel Colley: What was the purpose of this 'expensive radio set' mentioned above? For communication with whom; Moscow perhaps? Is there any connection with journalist Soviet agent, Gunther Stein in Tokyo allowing is appartment to be used for secret broadcasts to Moscow by Richard Sorge spy ring in 1936? Sorge was a journalist operating in China in the mid-1930s, whose Chinese-based American journalist girlfriend Agnes Smedley (who wrote for the Frankfurter Zeitung & Manchester Guardian) and who is also now suspected of being a Soviet Agent, but would most probably have known Dr Herbert Mueller at least in a professional capacity, as both wrote for the FZ.
As an aside; J P Marquand, Pulitzer Prize Winner & author of Mr Moto, the highly successful spy series of the 1930s and who had had beena fforded a free lift by Wostwag one year before Gareth in 1934, fictionalised his time in Kalgan in 'Mr Moto is So Sorry' , where Purpis was transformed into the character Holtz, who uses his radio to speak with the SOvietts in Moscow!]
[CIMG2444.JPG]
“WOSTWAG”
- 5 -
/called on GLUCKERMAN, Manager of the “Far East Fur Trading
Co.”) in transit to Russia “or some Western European Country”, and it was said
that the Japanese occupation had forced the closing down of the offices in
Shanghai, Tienstsin and Kalgan. We are also informed that the H.O. of “The
Oriental Trading and Engineering Co.” was reopened in Hong Kong on 3rd
August 1939 by a Dr. Jaques MAGRITTE, a friend of PURPISS, who had also been at
Kalgan under another name (possibly KNOBIL [KNOEBIL]; see Appendix A, No. J and
para 13,) until the Japanese arrived.
It is evident from the books of the “Far East Fur Trading
Co, London that their New York representative, “The Pacific Merchandise
Corporation”, through Ernest WRIGHT and a certain Max ROTHSTEIN (or RONEY) had
been in 1938 and 1939 buying aircraft and equipment for or on the instructions
of “WOSTWAG-URGA”.
12. Change of Name. On 19th December
1938, the Chase Bank H.O. was advised that the style of the Berlin firm had been
changed to “DEUTSCHE HANDEL A.G.” and the telegraphic address from “WOSTWAGIMEX”
to “DELAGIMEX”.
13. The New York account of the Oriental Trading and
Merchandise Co. was closed in March 1941, the outstanding credit balance being
paid by cheques to one Basilius BUCHHOLZ, then in Pennsylvania. At the same time
this firm, and the “Pacific Merchandise Corporation”, whose president, also had
an account in the Bank’s house in Pennsylvania, were both dissolved, trade with
China being declared by them to be at a standstill. Other sums in the closing of
the account were received by RUBER and KNOBIL (See personalities, Appendix A,
No. ) both formerly of Paris and before that of “WOSTWAG”, Berlin.
[CMG2446.JPG page 6]
- 6 –
15. Mr Ernest WRIGHT, who seems to have been the
established centre for WOSTWAG business in the United States and guarantor of
ex-WOSTWAG personnel immigrants, went to India in April 1944 in connection with
some semi-official “distribution and transportation organisation”, and was said
to be employed by the PAJXCT????- STRAIXAG?? Co, leather importers. PAJXCT??’s
last known address was Hotel Astoria, Leningrad, while STRAIXAG?? (who applied
for a visa to visit Russia in September 1945, was on the 15th January
1946 (according to a confidential source) credited by “The Bank of Foreign
Trade”, Moscow, through his account with Vnechtorg, Moscow, with the sum of
$10,000, apparently in connection with the fur trade, in which these two persons
are brokers. They had till 1938 both been with the ????-???? co. in London.
Conclusions.
A. Apart from the disclosures of KRIVITSKY, the one
piece of indisputable evidence linking this complex of companies with Soviet
Military Intelligence is that the well-known agent Jacob KIRSCHENSTEIN @ Frank
KLEBES [mainly KLEGES elsewhere] (and several more aliases, who had set up
business in Paris in 1930 in the “Societe pour l’Importation des Legumes Secs”
as cover, was not only associated with but was instrumental in financing the
American (1931), the British (1936), and very probably, some at least of the
French companies (1933-36) mentioned above (see para 7, 9 and 10), as well as in
transferring large sums to the Mongolian H.O. (1937). (See para 10 above, end).
B. Connection with “Rote Kapelle” case. A more
questionable link, but one which if confirmed would perhaps reveal much of
interest, is based on the fact that among WOSTWAG’S representatives at least as
early as October 1931 was an exclusive concession for Mongolia and Manchuria for
the products of “The Continental Caoutchouc Companie”, at Khoskhdu??? in
September 1944 which was then an active member of the German Chamber of Commerce
there. It may be recalled that the cover firm used by the G.R.U. (S.M.I.) agent
TREPPER
/ (Rote Kapelle)…
[CMG2449.JPG page 7]
- 7 –
(Rote Kapelle) in Brussels from 1938 on
was formed to sell, primarily, a garment known as „The Excellent Raincoat“ and
was closely associated with a firm. “Le Roi du Caoutchouc” which imported
this and other commodities, from or exported them to, among other places,
Sweden. It will be noted that both the Swedish- registered company and the
garment sold by TREPPER’s firm in Brussels have an English name, indeed
TREPPER’s firm was called “The Excellent Raincoat”, as if the original trade
mark were an English one and the firm were a branch of, or selling agency from a
English manufacturing company. Moreover, its managing director GROSSVOGEL ??,
though a French citizen living in Belgium, had been married, earlier in the
year, [at] the … Holborn registry office in London. Finally, we know that
TREPPER’s organisation was aimed till 1941 primarily against Britain. So perhaps
it is not altogether fanciful to see in WOSTWAG’s representation of “The
Continental Caoucthouc Co.” A further link with Soviet Military Intelligence,
even if the purpose of these ???? were no more than to provide and distribute
funds for R.I.S. [Russian Intelligence Services?] purposes, as TREPPER declared
was so in the case of “BLEXCO” ?? (Brussels), the successor of his firm after
the first arrests of personnel, and in the case of “SIMEX” ?? (Paris).
(Incidentally, there is perhaps significance in the uniformity visible in the
short name or telegraphic address of several of these firms: WOSTWAGIMEX,
SOCOMBO, SOCIMEX, PRODIMEX, SIMEX [and other unfortunately semi-illegible
names]).
C. It is possible that the uniformity of nomenclature
just mentioned derives not from association of these firms primarily with the
R.I.S. but from the fact that they were, without exception originally founded by
Jews, many of them active Zionists. ROSENBLITT, ZLOCZOMER, ROTHSTEIN, GLUCKSMAN
[GLUCKERMAN] and CZUCZKA all knew each other in their student days in Vienna,
where the last two at least members of “Poale Zion”. GLUCKSMAN, probably WRIGHT
and certainly TREPPER had all three visited Palestine at some time or other,
while GROHSVOGEL in 1934 approached a forger in Brussels ? for Syrian visas for
two Polish passports . CZUCZKA Had been associated throughout his career with
refugee organisations in Europe and the Americas, and when asked about the
association of GLUCKSMAN (of “Poale Zion” and “The Far East Fur Trading Co.)
with ZLOCZOMER (KRIVITSKI’s “speculant agent”) replied that it was more or less
general knowledge “among Jewish refugees in Paris”. All these persons (except
GLUCKSMAN and GROMVOGEL who are dead and TREPPER whose whereabouts is unknown)
are now in the United States, WRIGHT being still employed in a fur business
dealing with the Soviet Government, while
[CMG2450.JPG]
- 8 –
ROSENBLITT’s firm, besides it business in “casings”, has
been interested in the export of textile machinery to Palestine. ROSENBLITT and
ZLOCZOWER, from their long association with WOSTWAG, would undoubtedly repay
careful interrogation if this were possible; as would WRIGHT and ROTHSTEIN in
connection with their dealings in aircraft as revealed in the scrutiny of the
books of “The Far East Fur Trading Co.”
D. A final conclusion is that any person of Eastern
European connection who is or has been associated with commerce an any but the
land level in the following commodities should be regarded as a possible
conscious or unconscious agent for Soviet Military Intelligence:
a)
The group of animal by-products such as skins (pelts, furs), intestines
(“casings”), bones, bone-and-skin glue, fats (e.g. glycerine), etc. (c.f.
KRIVITSKY’s statement that “eight out of every ten fur merchants who deal with
the Soviet Trade Delegation are conscious Soviet agents”).
b)
A similar group concerned with poultry and game birds and their
by-products (shell eggs, dried eggs, liquid eggs, gull’s eggs, feathers, etc).
In this connection the “black market” in these commodities would everywhere
repay scrutiny from this angle.
c)
Natural and Synthetic rubber products of all kinds.
It should be remembered that the majority of the persons
mentioned in this report on WOSTWAG, its ancillaries and associates are as far
as we know still active, some of them in their old (commercial) specialties.
[CIMG2465.JPG]
The CHASE records showed that as of January 8th,
1937, the address of the ORIENTAL TRADING & ENGINEERING COMPANY in China in
care of Mr. Adam Purpiss, 69 Taku Road, Tientsin. Later in February, 1937,
it was changed to 660-668 Seschuen Road, Shanghai.
Continuing, the records of the bank showed a memorandum
dated 1/17/37 from the branch in Shanghai wherein it was stated PURPISS had
visited the Shanghai office on 1/12/37 and had advised that he had
previously been general manager of the ORIENTAL TRADING & ENGINEERING
COMPANY, and prior to that, had been in business for himself. He further
reported that he was Latvian by birth, but was travelling under a Honduran
passport.
At the time of this visit, PURPISS presented the bank
with the aforementioned Power of Attorney which he had received from the
main office of the Oriental Trading & Engineering Company in New York City.
This memo also reflects that PURPISS would be General Manager of the
organisation and a Mr. EHRENLIEB would be local manager in Tientsin.
Later the same bank records advised as to a visit of A.
EHRENLIEB to the Shanghai branch of Chase. This was on February 5, 1937, and
on this occasion; EHRENLIEB told them that ADAM PURPISS had previously been
in Hamburg and had experience in hog-casings and the fur business.
In forwarding this information to the main office of
CHASE, the Shanghai branch comments to the effect that PURPISS was the
domineering factor in the Far Eastern business of WOSTWAG.
The bank records next showed a copy of an article dated
April 15th1937, which appeared in the “North China Star”. This
advised of the opening of a free automobile drivers and mechanics school on
the premises of the ADAM PURPISS IMPORT-EXPORT COMPANY. It was noted that
the article also referred to one S. C. GIEBE???NSTCHIKOFF of the ORIENTAL
TRADING & ENGINEERING COMPANY.
In a memorandum dated May 26th,
1937,prepared by a CHASE official, it was stated that PURPISS told the
Shanghai branch he was formerly general manager of the predecessor
organisation (Oriental Trading & Engineering Company, Tientsin) for several
years, and previous to that had been in business on his own account. The
memorandum continues to state that “it is reported further that he was at
one time associated with…
[CIMG2466.JPG]
100-15668
CHEKA, Soviet Services extraordinary secret service
organisation and also that he was forced to leave Kalgan owing to threats
against his life. It has also been rumoured Mr PURPISS is associated with the
Third International and reportedly he was previously in Hamburg, Germany and has
had experience in hog-casings and furs. Of recent years, he has been the
domineering factor in the Far Eastern business of WOSTWAG.
The New York indices failed to reflect any other
information concerning ADAM PURPISS.
A careful name check at the Immigration and Naturalisation
Service was made with negative results.
*******
As a possible aid towards a more complete understanding of
WOSTWAG and its related organisations there is presented on the following pages
a diagram showing how these companies were connected. There is also being listed
a summary of the pertinent information known which, it is believed, tends to
substantiate the various connecting links exhibited in this diagram.
Diagrammatic representation of the inter-relationship between the individual
NKVD companies:
[Click image above for medium (300kb) resolution image of the
diagram or CLICK HERE for very
high (1.5mb) resolution image of the above]
[CIMG2476.JPG]
CROSS REFERENCE
P.F. 45633
Subject: ORIENTAL TRADING & ENGINEERING CO.
SIS report – dated 12-9-33
Albert FEIERABEND @ SZPOCAS, who is stated to be an
important agent of the Third International, mentioned that whilst in China he
had visited the ORIENTAL TRADING CO, in Tientsin.
Note: The above information was sent to the American
Embassy on 14.9.33
[CMIG2461.JPG & CIMG2462.JPG – Page 20 of a US report]
CLICK HERE for high resolution copy of this image referring to Purpis as the shrwdest operator in the Far East
NY 100-15668
Colonel C . [Claude] A. TUPPER (now deceased) President &
Treasurer
Mr. L. [Lewis] L. CLARKE, Vice President & Secretary
Mr Adam PURPSS
It is stated that Chase has not been informed of the full
list of directors but understood that Mr CLARKE is a Director as is Mr JOHN E.
KLIEBEL of New York. It is stated that Mr PURPISS told the Shanghai Branch of
Chase that he was formerly General Manager of the predecessor company for
several years; and previous to that, had been in business on his own account. He
is a Latvian by birth but travels under a Honduran passport. It is stated that
he is considered one of the shrewdest and cleverest men in the Far East and in
the past has made his headquarters in Kalgan. The memo continues to state, “it
is reported further that he was one time associated with Cheka, Soviet Russia’s
extraordinary secret service organization, and also that he was forced to leave
Kalgan owing to threats against his life. It has also been rumoured that Mr.
PURPISS is associated with the Third International and reportedly he was
previously in Hamburg, Germany, and had experience in hog casings and furs. Of
recent years, it seems he has been the domineering factor in the Far Eastern
business of “WOSTWAG”.
Continuing, as to Mr EHREBLIEB, the memo states that he,
“the Shanghai Manager, was originally sent by WOSTWAG to China about six years
ago, principally to handle the casing business. He had worked with WOSTWAG in
Germany and also Turkey in the hog casing line. He is reported to be of Austrian
nationality and was formerly manager of the predecessor firm at Tientsin.
The memo then states that information was obtained by the
Tientsin branch of Chase suggesting that some of the business of the predecessor
business was conducted in Mongolia by Mr. PURPISS under his own name. A memo
report of April 15, 1937 is quoted which states that “in the premises of ADAM
PURPISS, Import and Export Company at Kalgan (about 200 miles north-east of
Tientsin) the subject corporation opened a free automobile-drivers and mechanics
school.”
Comment is then made in the memorandum relative to the
sourcing of a balance sheet for this corporation, and it is then stated that Mr
EHRENLIEB has informed the branch of Chase that it would be some time before
such a balance sheet could be available due to the fact that it is necessary “to
have a final accounting with WOSTWAG.” It continued to state that insomuch as
WOSTWAG and predecessor firm had extensive operations in the Far East a great
deal of work would be involved in the final liquidation of the old…
-- 20 --
[CIMG2468.jpg & CIMG2469.jpg]
[From British Interrogation of GLUCKMANN on 25.5.40
regarding background to the formation of Wostwag in Germany and subsequent
dissolution into several related but autonomous companies after Hitler's
advent to power in 1933 - see enlarged images above for full testimony]
Salient extract: from second page:
“About nine planes were purchases, three in Amsterdam and
nine in California.”
[CIMG2470]
EXTRACT
Extract for File No.: PF45 633 Name: Oriental &
Engineering Company
Original in File No.: PFR 4342 Supp.vol.2 Serial:
55x Receipt Date: July 1940
Original from: KRIVITSKY
Extracted on:
5.5.49 By: EHD Section B.2b
COVER FOR ILLEGAL RESIDENT AGENTS
Most frequently some form of business cover would have to
be arranged. Sometimes a firm was actually created for a particular purpose and
sometimes it was possible to arrange through an intermediary that the intended
agent should come to this country as the representative of some genuine and
important continental firm. In these latter cases the firm would probably be
quite unaware of the true character of their representative.
A highly important firm called OSTWAG or the Eastern
Trading Co., was created by the Fourth Dept. in Berlin in 1922. It provided a
genuine business cover for a large number of Fourth Dept. agents. The principal
business of the firm was the sale of Russian produce in Germany. The business
was passed to them through the Soviet Trade Delegation in Berlin.
In one year the firm made over a million roubles profit. As
KRIVITSKY points out this was merely putting of money from one Soviet pocket
into another. Nevertheless the proceeds of OSTWAG were retained by the Fourth
Dept. to augment their espionage and internal disruption grants.
Two junior staff officers of the Fourth Dept., the brothers
EHRENLIEB, Aaron and Abraham, were put in charge of the organisation and
espionage
[CIMG2471]
side of the firm. They were of Polish origin naturalised
Austrians. The business side of OSTWAG, and later its various branches was in
the hands of an old Bolshevik, a Latvian – a personal friend of General BERZIN.
He travelled a good deal with a speculant agent Leo KATZ, a Roumanian. KATZ
visited this country at some time in connection with the affairs of the firm.
[SPECULANT AGENTS – From CIMG2420.JPG are “usually people
who have become outlaws in their own countries on account of their Communist
activities and are mainly Austrians, Czechs, Hungarians and Roumanians.”]
About 1925 or 1926 the Fourth Dept. suspected that the
activities of the firm had become known to the German police. They decided to
withdraw the EHRENLIEB brothers and other agents of the Russian General staff
and let the firm continue purely commercial activities under a speculant agent
called ZLOCZOMER. A man called STUCHKA [CZUCZKA] also worked in connection with
OSTWAG and its affiliated companies.
After their recall from Berlin the brothers EHRENLIEB
worked for a time in the Fourth Department. Both men were first class
accountants and managed the accounts of the Fourth Dept. in the second section.
After a time Abraham EHRENLIEB was sent to Tientsin where he founded and built
up a very important firm – the Far Eastern Trading Company. The profits were
retained for their work in China by the Fourth Dept., and were a useful source
of foreign currency…[{Continued from original document CIMG2477.JPG}
Incidentally Abraham managed to inspire sufficient confidence in Tientsin to be
appointed president of the Austrian Chamber of Commerce there. Later Adam PURPIS,
a Lett, who travelled through London in 1937 or 1938, but probably only in
transit to Russia from some other Western European country. Soviet ships sailed
regularly to Leningrad from Hay’s Wharf, London, and the Fourth Dept. frequently
used this means of returning agents to Moscow.]
The other brother Aaron was sent to Urga, the Soviet colony
in Outer Mongolia. In 1935 he was recalled to Moscow with the idea that he
should go to the American Branch of OSTWAG. The firm in the U.S.A. became very
active and a lot of material can be obtained from the American Authorities. This
plan fell through owing to the difficulty of obtaining an American visa. It was
decided, in 1936 to send him to London where an affiliated company of OSTWAG,
known as the Far Eastern Fur Trading Co. was formed in February 1936.
The Far Eastern Fur Trading Co. is properly registered in
the United Kingdom and is staffed by commercial men carrying on legitimate
business. Certain members of the staff however devote a proportion of their time
to Fourth Department work. [{Continued from original CIMG2477.JPG} ZLOCZOWER was
in London working for a time with EHRENLIEB during the Spanish war KRIVITSKY
sent a man called Samuel HOCKSTEDT or ???CHSTEDT to meet EHRENLIEB in London and
the two worked…]
CLICK HERE for page two
of this document with US / British Correspondence regarding Wostwag, including
a letter to Kim Philby by Roger Hollis on the subject...
© Nigel Colley 2007. All Rights Reserved.