Hitler's Lost Spy (10 page)

She has been suspected of giving notices over the air as this practice has been pursued by Berlin and also the Japanese. In her session there is only one way in which she could do that (the) notice is wrapped up in the French, which is alleged to have come by cable. 
On each occasion she has thrown two or three sentences in French and it would be quite easy to use this method: for example on Monday last, 29th May, she said that her cable informed her that a new perfume was all the rage in Paris – Ascherberg 384 (Script: Eisenberg 847). There is no such perfume or perfume maker, I learned from enquiries made to the
perfume buyer at Anthony Hordens
⁸
.

A reading error? Unlikely. If the names of the manufacturers of the perfume had a vague similarity, the numeric's did not.

The information transfer potential available to a foreign agent with public radio access and broadcasting self-composed scripts is almost limitless. This was an unparalleled means of covert communication. Little wonder that Annette's broadcasts, all from her own compositions, embellished the misgivings about her activities already being securely mapped out by Military Intelligence.

The ‘cables from Paris' did not exist. They were an invention probably designed to convey the idea to her audiences that she had important contacts relaying to her the latest news in Paris fashions. The advantage in the phoney cables is obvious – not only were her audiences supposedly receiving the latest trends and ideas directly 
from Paris, they were hearing this from a broadcaster who clearly had the right connections.

As suggested from the above file quotation, the 
‘cables' offered Annette a further advantage. The phantom cables – which she probably wrote herself – 
were ‘received' in French, and Annette would read these to her audience – in French. She would then translate them into English and follow with a discussion on their contents.

Why read the ‘cables' in French when most of her audience could not speak the language? We know her French expression was poor, so those who
could
understand the language would be struggling to translate as she spoke. The technique she used raised suspicions. 
Quoting from non-existent cables offered an unparalleled opportunity to ‘slip in' messages to listeners who had little interest in the latest fashion developments.

Unsurprisingly, and as previously discussed, the outbreak of war witnessed the immediate removal of non-citizens from direct broadcasting. It is not difficult to understand Annette's frustration at having the broadcasting carpet hurriedly dragged from under her feet, and being treated as a potential enemy. The fact that she
was
an enemy would only encourage her ambitions, and following immediate protestations of her treatment, she planned her comeback (see Chapter 9).

Annette's Artistic Ability

Evidently Annette had a talent for drawing. Reference to this aptitude may not have appeared in her file had the timing of her artistic productions not coincided with trips away – and these were usually maps. Perhaps this was simply a personal leisure activity, but when reviewing the lady and
all
her known interests, it is possible her illustrative talents were also oriented in another direction.

The Hydro Majestic – Recovery or Preparation?

Annette's residency at the
Hydro Majestic
hotel during July 1939 warrants consideration. There are some contradictions to the health reason she advised as the purpose for the visit, and these pivot around three areas of interest – her medical condition, the timing of the visit and the location.

Her medical condition, the lingering effects of typhoid fever, may have warranted her doctor's suggestion that the ‘mountain air' would be beneficial – 
but for almost an entire month? Also, it was now two years following her hospitalisation in Madagascar. Was her typhoid fever history now being useful for explaining something quite different?

Annette's residency at the
Hydro Majestic
was at a critical period in the lead-up to Hitler's war. Walter Ladendorff had returned to Germany the previous month to avoid being interned, and in July plans for finalising the German spying arrangements in Australia, and possibly beyond, would require completion. When the war commenced, the legal protection available to foreign spying operations would cease. Now, wartime espionage on enemy territory would commence, and the days of Annette's relatively comfortable snooping regime would be over. Suspicion could now be converted to something much more powerful than simply recording unusual behaviour.

The location of the
Hydro Majestic
is significant. About 120 kilometres by road from Sydney, and serviced by rail, the position is ideal for minimising unwanted attention. 
The surrounding permanent population density was low and vast expanses of national park provided unlimited opportunities for undercover meetings. Ease of travel, excellent hotel facilities, and local provision for covert conferences afforded the
Hydro Majestic
a very suitable choice for those preferring a low profile.

An added element to Annette's
Hydro
visit was the cost. The hotel in the 1930s was the present day equivalent of a luxury resort and guests enjoyed heated pools and spas, comfortable and spacious rooms, a large range of services and fine dining. We do not know Annette's precise dates of residence, but ‘most of July' 
would imply a substantial cost. She may have met the cost from her own funds, or she may have received a 
‘contribution' from another source.

The ‘source' of any financial benefit Annette may have received is not difficult to uncover. The
Hydro
Majestic
was built in 1903 by the successful retailer Mark Foy, a leader within the alliance of Australian business and community representatives who supported the Nazi regime in Germany. Foy often entertained visiting German dignitaries and it is quite feasible, with the appropriate introduction, Annette may have learnt that staying in a luxury hotel was considerably cheaper than previously believed.

It should be noted that none of the items highlighted in this and subsequent chapters prove Annette's absolute guilt. But collectively, there is an unmistakable theme. 
Given her personal and work–related circumstances – 
and comparing those with what may be expected from a young woman temporarily living in a foreign country – 
there is an extraordinary degree of dubious coincidence connected to her conduct. Further, this level of coincidence links into a common path – of questionable behaviour that would powerfully suggest a hidden agenda.

Attempting to reinstate Annette's jigsaw from scratch was challenging. Mostly, it was just another puzzle. 
However, some parts were difficult to fit together, and a few pieces were always held under the table.

FOOTNOTES

8
 Anthony Hordens was a large department store in Sydney.

Daily Commercial News, a publication listing details of merchant shipping movements in Australia, included the following notice inserted into its front page on 29 July 1938:

EMERGENCY NOTICE TO MARINERS

NAVAL GUNNERY PRACTICE OFF PORT STEPHENS

Friday 5 August 1938 between 1500 and 2100 hours
Gunnery Practice by ships of the Royal Australian
Naval Squadron, south and eastward of Port
Stephens in area enclosed between parallels 32 degrees 30 minutes South and 33 degrees 30 minutes
South and between 10 and 60 miles offshore … Shipping should keep out of the above area.

Port Stephens is a popular residential and recreational district 200 kilometres north of Sydney, named by its first European visitor, Captain James Cook who passed by in 1770. Today, the residents of Nelson Bay, Shoal Bay, Salamander Bay and other towns to be found on the rim of Port Stephens are proud of their expansive waterway and the lifestyle the region offers. Dolphins live and entertain in the gentle waters, and the bordering nature reserves, national parks, stunning scenery and white sand beaches draw tourists attracted by the water sports, fishing, whale watching and boat cruises that saunter across an area twice the size of Sydney Harbour.

Today, the permanent residents of Port Stephens number about 70,000, a rapid development from the pre-World War II population of only a few hundred. A sizeable portion of the 1930s population comprised fishermen escaping the economic ravages of the Depression. Early shipping and economic development of the area had been lost to nearby Newcastle with its fine harbour and substantial coal reserves. 
The void of residential appeal in Port Stephens before World War II resulted in the area being particularly attractive to the army and navy. Surrounding the port was a region of varying geographical features deemed to be ideal for military exercises. Further, access to Port Stephens was limited until a paved road into the area was constructed in 1942. The small permanent population provided minimal civilian intrusion into a district that became earmarked for special military consideration.

Following the Japanese attack on Pearl Harbor, Port Stephens was transformed by the army and later by the arrival of American troops. About 20,000 American and Australian troops used the beaches for initial training in amphibious warfare. The port entrance was fortified and radar installed as precautions against a Japanese attack.

An Unwelcome Attraction

If the pre-war residency interest in Port Stephens was low, government awareness of its potential was not – and this potential was not for commercial or residential development. Official attention in the area was far different.

In the late 1930s the intelligence services noted, with some disquiet, the unexplained number of Japanese visitors to Newcastle. The city and its immediate environs were not judged as tourist destinations, yet groups of Japanese made the trip and their cameras clicked away on almost anything. An opinion emerged that maybe the Japanese interest was directed at something other than tourist activity or the collection of general and geographical information. The backdrop to this judgement was the behaviour of the Japanese in China, and predictions within Australian intelligence that future Japanese expansionist aspirations would not be confined to the Chinese mainland.

In the event of war, the Broken Hill Proprietary Company Limited steelworks in Newcastle would be a major supplier in the armaments industry. Eliminating this production may also have been an enemy objective. 
By early 1940, a defence planning scenario produced a possible enemy landing on the coast between Sydney and Port Stephens. A naval invasion at Port Stephens would quickly see the capture of the steelworks and the loss of a major contributor to the defence effort. This possibility resulted in the decision to build the nearby Williamtown air force base, completed in February 1941. The base remains today as the headquarters of the RAAF's Tactical Fighter Group.

It is probable that army exercises at Port Stephens increased alongside the growing apprehension attached to the escalating Japanese militarism. This paralleled intelligence recognition of augmented Japanese spying activity in Australia from the mid-1930s. Corresponding with this development was Emperor Hirohito's decision by 1935 to lock the Japanese military into war with the West. This momentous development by Hirohito is detailed in David Bergamini's outstanding book
Japan's
Imperial Conspiracy.

In late October 1938, while the 8th Infantry Brigade was training at Port Stephens, a lady was observed, somewhere in the district, whose conduct invited interest from army personnel. It is not known what the lady was doing to attract attention, if she was in the company of others, or even how she travelled to the area. But there was sufficient reason for
someone,
or some group, to organise enough effort to enable her to be identified. It was Annette Wagner. Following this identification, an immediate decision was made by Military Intelligence to place her movements and personal contacts under surveillance. Annette's purpose in travelling to Port Stephens was not primarily to have a picnic.

In assessing Annette's undercover work, it appears that during her two-year period in Australia she committed only one known critical mistake – and only one of these is necessary. Later, there would be three other known mistakes, but these would probably have passed unnoticed had Annette avoided allowing herself to be identified at Port Stephens, or anywhere else. 
Precisely what she was doing in Port Stephens, we don't know, but observing what she could of the army training could be presumed. We also don't know if she had been careless, or someone else had particularly good observation skills. It didn't matter because the effect was the same: without knowing it, Madame Wagner had put in motion a process that would blow her façade.

The evidence from her file strongly suggests that the surveillance imposed on Annette went undetected by her for a full year – until October 1939. Failing to recognise this surveillance was a further slip-up. Had she suspected the operation, she would have pulled out of the system or quickly found excuses to attempt a redress with the aim of working around it. Not to be aware that her movements were being monitored signified that her attention to detail would now, at least in part, be shared unknowingly by others – on the opposite side. This was an irretrievable error that would eventually produce only one outcome.

The identification of Annette's spying activities would have had, initially, little consequence for her directly as she had not broken a law. Had she been questioned about her presence at Port Stephens on that day – and she may have been – undoubtedly she would have responded with the right answers – a good spy is always prepared to confront and weave through unintended consequences. So at this instance, her attracting attention meant little. It would be the surveillance of her subsequent ‘out of hours' conduct that would raise serious questions. But surveillance of an individual or a group is only as good as the ability to maintain secrecy and the relevance of the information it collects. Had Annette been aware of strange people observing her she would have altered her techniques and created useless and expensive diversions for the agents assigned to her. 
However, Annette's subsequent activities demonstrated that the surveillance applied to her was successful both in its operational conduct and the yielded results.