on November 20, 1937, his father-in-law, who, besides
being Nazi Consul, owns in partnership with Fritz Kohpcke, one of the
largest hardware stores in Panama, told his clerks that he and his
partner would work a little late that night. Neither partner went out
to eat and the corrugated sliding door of the store, at Norte No. 54
in the heart of the Panamanian commercial district, was left open
about three feet from the ground so that passers-by could not see
inside unless they stooped deliberately.

At eight o'clock a car drew up at the corner of the darkened street in
front of Neumann & Kohpcke, Ltd. Two unidentified men, Heildelk and
Walter Scharpp, former Nazi Consul at Colon who had also just returned
from Germany, stepped out, and stooping under the partly open door,
entered the store. Once inside Scharpp quietly assumed command. To all
practical purposes they were on German territory, for the Nazi
consulate office was in the store.

Scharpp announced that the group had been very carefully chosen
because of their known loyalty to Nazi Germany and because of their
desire to promote friendship for Germany in Latin American countries
and to cooperate with the Japanese, who had their own organization
functioning efficiently in Central and South America.

"Some of these countries are already friendly," said Scharpp, "and we
can work undisturbed provided we do not interfere in the Panama Canal
Zone. It is North American territory, and you will have trouble from
their officials and intelligence officers as well as political
pressure from the States. You understand?"

"Panama is friendly to North America," said Kohpcke.

"Precisely. At the present time it is not wise to do much more than
broadcast, but at a propitious time we shall be able to explain
National Socialism to the Panamanians."

He looked at Kohpcke, whose left eyelid droops more than his right,
giving him the appearance of being perpetually sleepy. Kohpcke looked
at Neumann.

"Tonight we want to organize a Bund in Panama. In a few days I am
going to Costa Rica to organize another and then leave for
Valparaiso."

The others nodded. They had been informed that Scharpp was to have
complete charge of Nazi activities from Valparaiso to Panama. That
night they established _Der Deutsch-Auslaendische Nazi Genossenschafts
Bund_, with the understanding that it function secretly. The list of
members was to be controlled by Neumann.

Scharpp explained that sec