recy was advisable to avoid antagonizing the
Panamanian Government, "which is friendly to Italy and we can
cooperate with the Italian Legation here."

"The Japanese are more important that the Italians," Kohpcke pointed
out.

"The Japanese will work with us," Heildelk assured him.

"But we can't be seen with them--"

"Fritz [Kohpcke] will call a meeting in Jacobs' house," said Scharpp.

"Jacobs!" exclaimed one of the unidentified men. "You don't mean the
Austrian Consul!"

Scharpp nodded slowly. "He is generally believed to be anti-Nazi. His
partner spent twelve years in Japan and speaks Japanese perfectly. The
Japanese Consul knows and trusts both. We cannot find a better place."

On the night of December 13, 1937, forty carefully selected Germans
who, during the intervening month had become members of the Bund in
Panama, arrived singly and in small groups at the home of August
Jacobs-Kantstein, Panamanian merchant and Austrian Honorary Consul.

Five Japanese, headed by Tetsuo Umimoto, also came. One, K. Ishibashi,
formerly captain of the "Hokkai Maru" and a reserve officer in the
Japanese Navy; K. Ohihara, a Japanese agent staying with the Japanese
Consul but having no visible reason to be in Panama; two captains of
Japanese fishing boats and A. Sonada, the barber who organized the
labor union and in whose presence the Consul does not sit until the
barber is seated.

Throughout the meeting, presided over by the elderly but tall and
soldierly Austrian Consul, the Japanese said little. It was primarily
the first get-together for Nazi-Japanese cooperation in the Canal Zone
area.

"Mr. Umimoto has not said much," remarked Jacobs.

"There is so little to say when there are so many present," said the
little Consul apologetically.

The others understood. The Japanese were too shrewd to discuss
detailed plans with so many present.

A few days later Umimoto called upon Heildelk and was closeted with
him for three hours. Shortly after that Sonada made a hurried trip to
Japan.

VI

_Secret Agents Arrive in America_

Germany's interest in the Panama Canal became acute only after Japan
joined the Rome-Berlin axis "to exchange information about
Communism"--an exchange which appears to be more concerned with
military secrets than with Communism.

The activities of Japanese and Nazi agents in Latin American countries
and especially around the Canal, the organizing of a fascist rebellion
in Mexico to th