from Mexico for iron,
manganese and oil--materials essential for war. President Lazaro
Cardenas, however, has stated his dislike of fascism on several
occasions. Since Germany, Japan and Italy must obtain these products
wherever they can get them, it would be to their advantage if a
government more friendly to fascism were in power. But, should that
prove impossible, the existence of a strong, fascist movement would
have, in time of war, tremendous potentialities for sabotage.

Hence, Mexico is today being battered by pro-fascist propaganda
broadcasts from Germany on special short-wave beams, and Nazi and
fascist agents surreptitiously meet with discontented generals to
weave a network throughout the country.

The radio propaganda is devoted chiefly to selling the wonders of
totalitarian government, and to the dissemination of subtle, indirect
comments calculated to turn popular feeling against the United States.
In addition to regular broadcasts, material printed in Spanish and in
German by the _Fichte Bund_ with headquarters in Hamburg, Germany, is
smuggled into Mexico in commercial shipments. A Nazi bund to direct
this propaganda was organized secretly because of the government's
unfriendly attitude toward fascism. The bund operates as the _Deutsche
Volksgemeinschaft_ and its propaganda center functions under the name
of the "United German Charities." This organization, on the top floor
of the building at 80 Uruguay Street, Mexico City, is actually the
"Brown House," in direct contact with Nazi propaganda headquarters in
Hamburg.

Some of the propaganda distributed in Mexico is smuggled off Nazi
ships docking in Los Angeles, and is transported across the American
border by agents working under Hermann Schwinn, director of Nazi
activities for the West Coast of the United States. The propaganda
sent by Schwinn across the American border is chiefly for distribution
around Guaymas, where a special effort is being made to win the
sympathy of the people. Meanwhile Yocupicio caches arms in Ures and
the bland Japanese continue charting the harbors and coast lines.

The Nazis began to build fascism in Mexico right after Hitler got into
power. In 1933 Schwinn called a meeting in Mexicali of several Nazi
agents operating out of Los Angeles, including General Rodriguez, and
several members of a veterans organization. It was at this meeting
that the Mexican Gold shirts were organized. Under the direction of
Rodriguez and hi