Hitler's Lost Spy (13 page)

In addition to the general Japanese spying operations in Newcastle, the intelligence ‘wrap-up' visit of Major Hashida in early 1941 had included a geographical survey of the Newcastle district. His diary noted:

Lake Macquarie is a so-called lagoon. It is shallow. 
Newcastle has a population of about 150,000. It is situated in a valley. It is surrounded by hills of about 300 feet except the part where it is situated on the sea-shore. We were delighted with the white beach of
Newcastle Height(s).

So back in 1939, how would the Japanese obtain strategic aerial photography without arousing further suspicion, or perhaps pushing the host country's tolerance boundaries too far? There were two problems.

The first problem was the spy's physical appearance. 
There were simply not enough Asians in Australia at the time to ensure that ‘blending in' would assist in avoiding unwanted attention or questions. The second was the trust element – all involved with the mission needed to be trusted. The only weak link in the ‘trust chain' was the pilot of the aircraft. Critically, the agent with the camera needed a small aircraft and a pilot who would be favourably influenced by familiarity, or something else.

Requesting and receiving assistance from the Germans resolved the physical appearance issue. Using one of their Caucasian agents would avoid the ‘blending' 
problem. Mutual assistance on espionage matters between Germany and Japan was common practice at the time. Hitler was already planning the first move in the ‘inevitable' clash between National Socialism and Communism. His task would be easier if the Japanese attacked from the east in Siberia, tying up the large Soviet forces based in the region. To encourage cooperation he ensured the Japanese received German assistance, where possible, in Western countries.

When Annette received instructions for the mission, the second problem appeared to have been resolved immediately. Jack Clancy was a friend, and more importantly for her immediate needs, a pilot who had immediate access to a small aeroplane. Annette and Jack shared some common interests, including membership of Alliance Francaise and a mutual interest in global issues. All that remained was the planning for the trip.

Jack Clancy (1914–2000)

Jack's attraction to aviation began during the construction of the
Clancy Skybaby
, a small single seater aircraft my father, Bill Clancy (1907–1963) designed, and built with his brother Allan (1908–1962). The construction was carried out in the backyard of the family home in the Sydney inner suburb of Rosebery. 
Some aeronautical concepts of the
Skybaby
were ground-breaking for the day and the small plane was flown by several eminent aviation contemporaries, including the legendary Charles Kingsford-Smith, who led the first trans-Pacific flight from Los Angeles to Brisbane in 1928.

In 1937, with another young pilot, Jack completed the first ‘around Australia' flight in a small aircraft. He continued his flying interest while working for the Shell Oil Company, and in later years he flew a replica of the
Skybaby
he constructed from Bill's original aircraft design. The replica was later exhibited in Sydney's Powerhouse Museum. He served in the Royal Australian Air Force during World War II.

On completing high school, Jack was awarded the highly competitive Alliance Francaise prize for French.

The Flight

It was a cool and overcast autumn morning when Jack met Annette at Mascot Aerodrome (now Sydney International Airport) for the pre-arranged flight. Shortly before he passed away, Jack related to me the details of the day's events:

We arrived at Newcastle aerodrome and I taxied to an area near the terminal. She told me to remain in the plane, then got out and walked over to a group of four or five men standing near the terminal entrance. 
They all huddled together and there was natter, natter, natter (intense talking) for several minutes. She returned to the plane and asked me to fly her to the harbour area. We took off and when we reached the harbour, out came a camera and click, click, click, click, click, click, click. (Jack mentioned ‘click' seven times, – it was his way of saying everything was photographed). We covered the entire harbour and then did it again. We returned to the airport after a diversion to enable more camera work of the area adjacent to the harbour and the steelworks (BHP).

After returning to Sydney I was approached by a police detective and asked to accompany him into town (meaning Police Headquarters). There I was interviewed and asked for details of the flight and all I knew about Madame Wagner. I had a few more phone calls from them (the police) and then nothing more until I was contacted after the war and asked if I was interested in knowing what happened to her. Of course I was, and that's when I learnt she had committed suicide in Paris.

The Flight Sponsor – Conclusion by Exclusion

Clearly, both the flight departure from Mascot and return later in the day were monitored – and neither Annette nor Jack were aware of this. But what possible reasons could explain the trip and Annette's conduct? There is only one plausible explanation. This was a business trip, not a tourist excursion. It had a specific purpose, and Annette was not a day-tripper filling in some time.

Other than military and local authorities and perhaps private commission operators, who in the eventful year of 1939 would have the need for detailed aerial photography of Newcastle's harbour and port facilities? 
The only answer is a foreign interest. Would the Germans require this information? Hardly. Following the commencement of the war in September, German interest in the port's shipping movements would have been expected, but whatever information on harbour activities the Germans deemed necessary would be collected entirely at ground level. Annette's aerial photography would not be of any value to anticipated German operations in the region. For the Japanese however, the flight would be a logical conclusion to a lengthy period of espionage in the area. The aerial tour would also provide an excellent source of geographical information that could be very useful following the commencement of Japan's planned Pacific war.

All the preliminary Japanese data collected during the 1930s could now be topped off with the final embracing piece – detailed aerial photography that would collate all other land-based information, including shipping berths, harbour dimensions, roads and transport facilities, possible defence emplacements in Fort Scratchley, and the BHP Steelworks. Aerial photography would also detail landmarks of special interest difficult to obtain at ground level. With the aid of precise location markers, a submarine surfacing off the coast could be quickly positioned to direct shells into the steelworks causing sufficient damage to halt production.

The process of excluding the possible beneficiaries of the flight ends with Japan as the sole remaining interested party. Three years later the information collected by Annette would be put to practical use.

The Japanese Trial Run

During the night of 8 June 1942, the huge Japanese submarine I-21, one unit of the flotilla which attacked Sydney Harbour a week earlier, surfaced about nine kilometres off Newcastle. Captain Matsumura Kanji brought the submarine to an easterly direction as he peered through his binoculars at the distant lights of the city. When the rear-mounted deck gun was manned and ready, he ordered the crew to commence firing.

The object of the attack is unclear. It has been suggested the BHP Steelworks was the target. If it had been, the aim was poor. The attack may have been directed against the harbour wharf area or to randomly fire into the city as a means of creating panic. Maybe it was all three. Whatever the reason, casualties did not occur and only one house and parts of the harbour infrastructure area were damaged. Several of the shells failed to explode while others fell harmlessly into the harbour. Guns from Fort Scratchley fired off a few rounds, with only the intermittent flash of the I-21's deck gun providing a target. After delivering 34 shells, the I-21 
submerged and disappeared.

The submarine attack would be the only serious wartime threat to the city. The I-21 was one of five in the flotilla of submarines that had converged on Sydney Harbour a few days earlier, releasing three midget submarines. They had entered the harbour and sank a ferry in which naval personnel were sleeping, twenty-one of whom died.

Results and Consequences

In effect, the mass of intelligence data on Newcastle collected by the Japanese came to nothing – but it may have, had the Japanese invasion of Australia transpired. 
For Annette Wagner, her aerial photography mission undoubtedly served to intensify security suspicions of her, and it was likely to have added an additional stimulus to her surveillance. Jack Clancy's involvement as an innocent collaborator in the mission was promptly clarified, but the flight was probably a turning point in his friendship with Annette. Following his security interview, it would have taken little imagination on his part to understand that there was more to his interesting friend than there previously appeared to be.

Submarine I-21 had two more tours of duty patrolling the Australian east coast. It sank four merchant ships including the BHP bulk ore carrier
SS Iron Knight
in February 1943 off Bermagui on the south coast of New South Wales. The last radio transmission received from the submarine was near the Gilbert Islands as the Americans invaded in November 1943. The following month it was presumed lost, probably to American aircraft.

When the details of the flight were passed on to Military Intelligence, the incident would have been flagged to a serious level. The Newcastle-Port Stephens region had previously been the subject of a security upgrade as a possible Japanese invasion site, and the flight by Annette and Jack would have strengthened this fear. It is possible the flight may have contributed to the Williamtown Air Force Base decision.

A Critical Surveillance Gap

On the morning of the flight, Annette's travel to the airport was monitored, but when Jack throttled the engine and lifted the plane off the runway the surveillance loop on Annette was broken. Enquiries at the airport may have provided Jack's flight plans, but once in the air Annette was immune from the eyes that had successfully tracked her for six months. Until that moment, all the options available under the surveillance operation belonged to the decision-making personnel within Military Intelligence. Now, contact was lost,
and
at a time when Annette embarked on an unusual undertaking. Her flight would have drawn more attention from Military Intelligence than usual.

What would have been less apparent to the agents responsible for her surveillance was the reason for their loss of contact. Where
exactly
was she going? Why did she need to fly there? Jack's flight plans may have identified Newcastle as his destination, so why not take the train thus avoiding the expense? What made
this
trip to Newcastle so different from her other visits? Questions would also have been asked of the pilot, but all the answers would be obliged to await Jack's return later that day. The surveillance gap would then be closed and the new data filled in, resulting in the alarm bells around Annette ringing a little louder.

The only benefit to Military Intelligence was that Annette was oblivious to their tracking of the plane when it departed Mascot in the morning and returned later in the day. It is not difficult to imagine how the normally confident and composed Annette would have been shaken by knowing Jack had provided to Security personnel a minute-by-minute commentary on the flight.

The Aeroplane

For the assignment, Jack Clancy flew an Aeronca 100
¹³
, a small, single engine two-seater aeroplane which was built in 1936 and extensively damaged in an accident the following year. The remains were purchased by Allan and Jack Clancy and the brothers restored the Aeronca to air-worthiness. Jack regularly flew the aeroplane during the early months of 1939 and his Pilot's Logbook records a flight to Newcastle two weeks before Annette's Newcastle harbour tour. Why Jack undertook the earlier flight is unknown, but it is possible, even probable, that Annette was his passenger.

The Aeronca was not flown during the war, and was sold in 1949 to a buyer in Fiji, where it incurred a further serious accident. A New Zealander working in Fiji at the time purchased the wreckage and it was delivered to his home in Wellington. It was later rebuilt by a new owner in Hastings and in 2005 it took to the air again – and continues to fly today.

The Flight Cost

A consideration in Annette's photography excursion was the cost. What she paid Jack is unknown, but it is doubtful that Jack would have charged Annette for his time – after all, she was a friend and Jack enjoyed flying. 
However, relative to today, aircraft expenses in 1939 
were not cheap, and Allan Clancy also had a financial interest.

This begs the question – why would she choose, or need, to spend any amount of money to capture aerial photographs that for most tourists or residents would be uninteresting or meaningless? Could it be useful for her radio talks? Certainly not. Was the visit ‘out of character' 
bearing in mind the year and her available personal information? Yes, extremely so. What could she have sensibly gained from comprehensive aerial photography of Newcastle harbour and its installations? Realistically, nothing.

Following a quick process of elimination, we cannot arrive at any credible reason why Annette would be interested in spending the money and time doing this. 
There is only one explanation that makes sense: she was doing this for someone else – someone, who required the photography and was prepared to meet the costs.