Interview of Former Special Agent of the FBI Charles E. Higdon (1940 - 1945) Interviewed by Brian R. Hollstein On August 11, 2004 Edited for spelling, repetitions, etc. by Sandra Robinette on February 25, 2005. Final Edit for corrections by Mr. Higdon and Mr. Hollstein by Sandra Robinette on March 28, 2005 Brian Hollstein: Just a little lead in to it and then we can get started talking. Unknown: Alright. Brian Hollstein: My name is Brian R. Hollstein. Today’s date is August the 11th, 2004. I’m talking to Charles E. Higdon, H-i-g-d-o-n, of Knoxville, Tennessee. This interview is being conducted on the telephone. Before we start there’s a little something I want to read to you Charlie and then I’ll also send a copy to you for signature. What it is, is a Copyright Release and Background Form. And it says, “We the undersigned, undersigned convey the rights to the intellectual content of the, of our interview on this date to the Society of Former Special Agents of the FBI. This transfer is in exchange for the Society’s efforts to preserve the historical legacy of the FBI and it’s members. We understand that portions of this interview may be deleted for security purposes. Unless otherwise restricted, we agree that acceptable sections can be published on the worldwide web and the recordings transferred to an established repository for preservation and research.” Now, at any time while we’re talking if you feel that you don’t want to have something recorded, please tell me right away and I’ll turn off the machine. Charles E. Higdon: Alright. Brian Hollstein: And if there’s anything that you would like to restrict for a period of time, for some reason, please let me know. We will honor your request and just hold back that section, whatever it might be, until you feel it’s appropriate to be released. A couple of other little ground rules. We don’t want the names of any informants mentioned. And what we can do there is to just give them another name of some kind, if you want to refer to an informant. 1 Charles E. Higdon August 11, 2004 Page 2 We don’t want to get too technical in describing any recent methods. I don’t think that’s going to happen with us since we’re dating back to the Second World War. We also want to avoid any talk of matters of a technical nature along those lines that might still be in use. Okay. Also if you were undercover, we don’t want the name of the company that gave you the cover. You can say if it was a mining company or it was a banking organization or something like that, and we’ll just leave it that way. After we complete the interview, I will send you this Copyright Release and Background Form for signature. Charles E. Higdon: Checking, you’re double-checking that way. Brian Hollstein: Right. Charles E. Higdon: Can I make corrections on that like I would Congressional testimony? Brian Hollstein: Absolutely. This is on the Release Form itself. Once we have done the transcript will be sent to you for review. Charles E. Higdon: Good. Brian Hollstein: You can get a look at it and a lot of times, things like spelling needs to be fixed. Many times the transcribers aren’t used to Latin American names or locations and what have you and things get messed up that way. So, we have considerable control over the whole process and we want to make sure that it works smoothly and that you’re pleased with the results too at the end. Charles E. Higdon: Very good. The ex-FBI Foundation is the one that’s doing this? Brian Hollstein: Well, they’re supporting it. Right. Charles E. Higdon: Okay. Brian Hollstein: Financially. 2 Charles E. Higdon August 11, 2004 Page 3 Charles E. Higdon: I see. It’s an official thing, in other words? Brian Hollstein: Oh yes it is. The Society and I’m unpaid. I’m a former Agent myself and just doing this for the love of it. But we have a paid consultant, Sue Rosenfeld, who is our former FBI Historian. In fact, she has put together the program for us and helps us manage it. And then I have an assistant who works part-time handling the administrative end of things, Sandy Robinette, and she’s down in Virginia. Charles E. Higdon: Oh, very good. Brian Hollstein: So, we’re absolutely part of the Society and the FBI itself, though, does not support this program. I’m going to be visiting with them next week getting ready for set-up, but they don’t support us. Charles E. Higdon: Okay. But they will be clearing it for publication? Brian Hollstein: Absolutely. Yes they will. Charles E. Higdon: Okay. That gives me the parameters of it anyway. Brian Hollstein: Good. Let’s start off with a couple of easy questions here. What year were you born? Charles E. Higdon: Born in 1916. Brian Hollstein: 1916. And where were you born? Charles E. Higdon: In Fannin County, Georgia, at the community of Higdon. It was actually Higdon Store, Georgia. Brian Hollstein: Oh. Is that right? Charles E. Higdon: Yes. It was my great-grandfather who established the community. Brian Hollstein: Oh yeah. Charles E. Higdon: He was the Postmaster there. 3 Charles E. Higdon August 11, 2004 Page 4 Brian Hollstein: And when did you start your FBI service? Charles E. Higdon: I started on September the 23rd 1940. Brian Hollstein: 1940. And your ending date? When did you end your service with the Bureau? Charles E. Higdon: I ended my service, I believe it was in February or March 1945. The exact date I don’t recall. I destroyed my copy of my resignation either for security purposes later in my career. Brian Hollstein: Very good. How did you happen to find out about the FBI? Charles E. Higdon: Well, I had heard about the FBI quite a lot when I was in college. And I had known from some people locally that were involved with the FBI. And, of course, the FBI was big news from all the action that they had during the ‘30’s. Brian Hollstein: Oh sure. Sure. Charles E. Higdon: Oh the Capone era, and the Dillinger era. Brian Hollstein: Yeah. That was a heady time, I’ll tell ya … lots of things going on. Charles E. Higdon: Oh yeah. Brian Hollstein: Where did you go to college? Charles E. Higdon: The University of Tennessee. Brian Hollstein: Uh Huh. And what were you studying there? Charles E. Higdon: I took Business Administration and Law. I have degrees in each. Brian Hollstein: Okay. So you came in then as an attorney. Charles E. Higdon: I came in as an attorney. Brian Hollstein: Good. Where did you take your training? Charles E. Higdon: At Quantico. 4 Charles E. Higdon August 11, 2004 Page 5 Brian Hollstein: Uh Huh. And? Charles E. Higdon: I came in there on the 23rd of September, 1940 and I was there for about six weeks. Going nine to nine, six days a week, and one to nine on Sundays. Brian Hollstein: They were pumping you through. Charles E. Higdon: Oh, they were pumping us through pretty fast. That’s right. Brian Hollstein: What was your first office? Charles E. Higdon: My first office was Chicago. Brian Hollstein: And how long were you there? Charles E. Higdon: I was there about three months. I went there in November 1945. Brian Hollstein: And then, second office? Charles E. Higdon: Second office was St. Louis. And I was there only a short time. About March 1941 I was transferred to Washington, DC as a supervisor. Brian Hollstein: Okay. That was quick. Charles E. Higdon: I could never figure out how they selected the supervisors, but the bunch of them that they brought in, all of them had two degrees. That was the only thing I could figure that they had in common. Brian Hollstein: Well, that’s good. What desk were you on? What division I mean? Charles E. Higdon: Well, I worked in Special Memos Unit first, and then later I was in Custodial Detention Unit under the National Defense Section. Brian Hollstein: And what did that entail? Charles E. Higdon: Well, Custodial Detention involved the carding of enemy Nationals, for pickup in the event of a national emergency. Brian Hollstein: Oh, I see. So you would identify these people? 5 Charles E. Higdon August 11, 2004 Page 6 Charles E. Higdon: Identify these people and I think I had eight offices that I was the supervisor for. We collected the information from the field offices and prepared cards of the activities of the individuals. These were checked on each month and then when we got sufficient information to merit Custodial Detention, they were passed up to the Attorney General and required his signature, to authenticate them for pickup in the event of a national emergency. Brian Hollstein: Well, was this part of the program then that led to the Japanese incarceration after Pearl Harbor? Brian Hollstein: That was all part of it later, that occurred much later though. But during the time that I was in Custodial Detention, I happened to be in Los Angeles, on a subpoena to testify on a case I had worked in St. Louis. While I was there, they had the raid on Terminal Island to arrest the Japanese down there. Brian Hollstein: Oh. I see. Charles E. Higdon: We had about 200 Special Agents and 400 LAPD, and then the Coast Guard came in at 4 o’clock in the morning and sealed off Terminal Island. That’s where the Japanese fishing fleet was located. We went in and searched every house on the Island and, took in to custody every male who was 21 years of age or older. We confiscated code books and the fishing logs, and that sort of thing, and the radios and communications equipment. Because there had been evidence that they were communicating with submarines off shore. Japanese submarines. The Coast Guard sealed them in that morning. We were there at 4 o’clock in the morning till 11 o’clock that night. Brian Hollstein: Oh boy. So they went in to camps then. Charles E. Higdon: Turned over to the Immigration and Naturalization Service, the individuals were. But there was evidence of, at that particular time, they were expecting a Japanese invasion on the West Coast. And, as a matter of fact, a Japanese submarine surfaced and fired on a fuel dump, just south of Los Angeles. 6 Charles E. Higdon August 11, 2004 Page 7 And, I remember there were headlines in the paper then. “War and all of its horror came to LA last night when” so and so, a bombing that had been carried out on the fuel dump. Brian Hollstein: So that was the beginning. You don’t hear much about that side of it. Charles E. Higdon: No. But there was a great fear that there was going to be an invasion in Hawaii and the U.S. Brian Hollstein: And didn’t want to have that happen a second time. Certainly. Charles E. Higdon: I was on the desk at Washington in Custodial Detention when Pearl Harbor occurred also. I remember that. On a Sunday; going down on the Potomac, to George Washington’s home for the day. I was on the way back when I tuned in on the car radio and heard the broadcast. So I went in to a Hot Shoppe in Virginia and I called the office. The operator said all the supervisors and Agents report to the Bureau immediately. So I just had the people I was riding with drop me off at the Bureau and I stayed there. I immediately started sending out teletypes that evening. And I was there from Sunday afternoon at 4 o’clock until Tuesday noon, without sleep, until other Agents were assigned. Single Agents were 9 p.m. to 9 a.m. Married Agents got the day shift, 9 a.m. to 9 p.m... Brian Hollstein: Oh boy. Charles E. Higdon: We had about six secretaries that were trying to establish name cards to identify the individuals that had been picked and where they were located. Brian Hollstein: So you had, at this point did you have a roster of Japanese? Charles E. Higdon: Oh yeah. We had a roster of Japanese. Also we had Communists, Italians, and of course, Germans. We had a roster of all of ‘em. Every Monday morning, we had to have a collective memo, covering all the field offices. That was combined and had to be on the Director’s desk by 9 o’clock on Monday morning. He had an appointment with the President for 10 o’clock in the morning, to go over what was happening throughout the United States. 7 Charles E. Higdon August 11, 2004 Page 8 Brian Hollstein: So these rosters that you had been putting together, then, were used for the arrest of the Japanese. Charles E. Higdon: Oh absolutely. After Pearl Harbor occurred the President gave his famous speech about Pearl Harbor. He went to Congress to get a declaration of war against the Axis powers. I remember going outside to watch him come by in his limousine going to the Capitol to request permission of Congress. Brian Hollstein: But the later general detention of Japanese? Charles E. Higdon: That occurred about a year or and a half later when they were moved from the West Coast to Arizona. It was handled in a very peculiar way, but it certainly had to do with suspicion that the Japanese aliens and, many of the citizens, were not fully loyal to the United States at that time. So that’s why they were moved, of course. Brian Hollstein: The listings that you were maintaining though, were known subversive types. Charles E. Higdon: Subversive types or sympathizers who were active in organizations. Brian Hollstein: Or diplomats or spies? Charles E. Higdon: No. Individuals who were active in the subversive organizations. You had the German Bund, the Italian Black Shirts, and the Communist cells; various ones that were operating all over the country. We were carding all of them. Brian Hollstein: Hell, the Germans were, were busy around in the New York area; I know about that. Charles E. Higdon: Well, they were busy around the Chicago area too. Brian Hollstein: Yeah. Yeah, large, large German populations in both areas. Charles E. Higdon: Oh, yes. Brian Hollstein: Yeah. 8 Charles E. Higdon August 11, 2004 Page 9 Charles E. Higdon: They had a large German Bund organization in Chicago and we were able to penetrate that one. We had a technical surveillance on the German Consulate there. And, at that particular time, we had a 24-hour coverage of that. Brian Hollstein: Well, there was plenty of information, I’m sure, flowing at that point. Charles E. Higdon: There was plenty of information. I recall trying to interview the secretary of the Bund and he didn’t wish to cooperate with me. So, some Chicago policemen brought him in on a technical charge of some type to the police station. They helped me get an interview. And, as a result of that I got a list of the Bund members that he was keeping. Brian Hollstein: That worked very well then. (Both laughing) Charles E. Higdon: I won’t go into the details though. Brian Hollstein: Okay. Charles E. Higdon: That was a police activity, which I did not witness. Brian Hollstein: Yeah. Charles E. Higdon: So I can’t testify to that. Brian Hollstein: Okay. After the Terminal Island raid, you went back to DC then, I gather? Charles E. Higdon: Went right back to DC. As soon as I testified. That must have been in January or February of 1942 that I was there. The Terminal Island raid would be a matter of record. Brian Hollstein: Oh sure. Well I have here on this little note on the SIS people that you must have joined the SIS right around that time. Charles E. Higdon: I did. Just shortly thereafter. 9 Charles E. Higdon August 11, 2004 Page 10 Brian Hollstein: Yeah. I think you show in May of ’42, you were down in La Paz. How did you happen to find out about the SIS? Charles E. Higdon: Well, we had an exercise class. If you look in the February 1942 National Geographic, you’ll see a picture there. It’s about Washington, DC, and it says “Special Agents of the FBI exercising on top of the Department of Justice Building.” The photo was made in the summer of 1941 Brian Hollstein: I’ve got that picture. Charles E. Higdon: I’m looking at it right now myself. Brian Hollstein: We use it for training. Is that the one where everybody’s standing with their arms straight out? Brian Hollstein: That’s right. Brian Hollstein: Yep. Charles E. Higdon: You’ll see me on about the fourth row on the right side, look about the third or fourth man back there. Brian Hollstein: Oh sure. Charles E. Higdon: Looking at the picture, I am the third Agent back, other than the instructor. You’ve got the instructor, then there are three, I’m the third man back. Brian Hollstein: Okay. Charles E. Higdon: You see that now? Brian Hollstein: No. I don’t have it in front of me. Charles E. Higdon: Anyway. Joe Santoiana was one of the Supervisors who was teaching the language class for the SIS. Brian Hollstein: He was my Supervisor in Tampa Division. Charles E. Higdon: He was? Well, you know Joe well then. 10 Charles E. Higdon August 11, 2004 Page 11 Brian Hollstein: Yep. Quite well. Charles E. Higdon: Joe taught the Spanish class. And so he told me about what was happening and so I thought I might be interested in that. So I applied; I knew some of those in the exercise group who worked with SIS. Brian Hollstein: Were you married at the time? Charles E. Higdon: No. I was single. They only took single men. They didn’t take any married men at that time. So, I volunteered to go to Latin America. They started the language training which we took six weeks. Brian Hollstein: Hmhmm. What other type of training did you receive? Charles E. Higdon: That was the only training. My first assignment was to La Paz, Bolivia. And, I went there as a news man ... undercover. Undercover for a news agency. I went to New York and talked with some of the news people before I caught a boat to South America Brian Hollstein: Oh, I see. So you took a boat going down then, huh? Charles E. Higdon: I took a boat going there. We had seven undercover Agents on board. It was a Chilean vessel going from New York to Santiago, Chile. I got off at Lima, Peru and from there to La Paz, Bolivia. Chile was neutral at that stage. So they were going with full lights on. And two weeks earlier, the German subs had sunk the sister ship, we learned later. Brian Hollstein: Oh boy. Charles E. Higdon: Down near Panama and the people had to go ashore in lifeboats. That’s how they were saved. Brian Hollstein: Something to think about, huh. 11 Charles E. Higdon August 11, 2004 Page 12 Charles E. Higdon: I don’t know if there were any lost or not. But, while we were about two days out of, I had introduced myself to the captain. I told him I was representing a news agency and that if he saw anything, any submarines out there, to let me know. So I woke up one morning and looked out the port hole and I saw a big snorkel sticking out of the water. Brian Hollstein: Oh, for goodness sake! Charles E. Higdon: I went up to see the captain and asked him if he’d been contacted by the submarine that was off on our bow. And he said, “No.” I said, “Do you have any idea who, what country it represents?” “No.” Everything was a no, no, as far as he was concerned. I said, “Well, what can you tell me about it?” He said, “I can’t tell you anything about it. I don’t know anything about it.” And he says, “I haven’t been contacted and I haven’t received a message from anybody.” So the word that got passed around among the undercover Agents on board. We had a little meeting on what to do in the event we’re boarded. We finally agreed everybody worked their cover. Which, if we had been boarded, we would have done. Brian Hollstein: Sure. Charles E. Higdon: But the following morning when I looked out the port hole, we were pulling into Panama and here was an American aircraft carrier. It was 7 o’clock in the morning. Flags all over, all over the boat and sailors on the deck. The American flag has never looked so good Brian Hollstein: I’ll bet. Charles E. Higdon: But that was on the way to Peru. I got off in Lima and flew to Arequipa, Peru. Spent the night in Arequipa, and then took a train over to Lake Titicaca and a boat to La Paz, Bolivia. Brian Hollstein: Well, it certainly was an exotic place at that time. 12 Charles E. Higdon August 11, 2004 Page 13 Charles E. Higdon: Oh, it was different. People coming in by plane had to take oxygen. Back in the old days, you know, it was known as the oxygen tube … on the old DC-3s. They had the oxygen comin’ into La Paz and when they collapsed on the pavement, they gave them extra oxygen; ‘cause it’s about 11,500 feet at the airport. Brian Hollstein: Yeah. It’s high. I spent some time in La Paz.. Charles E. Higdon: You spent time in La Paz? Brian Hollstein: Yes. And, in the hotel, they had oxygen bottles by the bed, you know. Charles E. Higdon: Oh. Where’d you stay? At the Sucre Palace? Brian Hollstein: That’s years ago now and I really don’t remember. It was probably something like a Hilton, you know. Charles E. Higdon: The Sucre Palace was there and that’s about a thousand feet down from the airport. Brian Hollstein: What, what were you doing in La Paz? Charles E. Higdon: Well, I was trying to identify members of the German community that were active. And secondly, they had tin mines all over Bolivia. I made a visit to several of the tin mines. They were threatening to strike at the tin mines. And we wanted to see whether or not there was the German influence in bringing about this strike; which would keep us from getting tin. The Japanese had cut off the supply from the Malay Peninsula Brian Hollstein: Sure. Charles E. Higdon: At that time, only one load of tin ore coming out of Arica, Chile, was docking in Galveston. Texas … one out of three. But the German’s got the rest of them with U-Boats just as soon as they got through the Canal. The Germans had U-Boats all around the Canal and they sunk over 400 ships, along the east coast of the U.S. 13 Charles E. Higdon August 11, 2004 Page 14 Brian Hollstein: No. No. You hear about things up in the East Coast, up around New York and what have you, but the Caribbean was busy. Charles E. Higdon: Up and down the whole East Coast, I think there were over 400 ships that were eventually sunk. Brian Hollstein: That was very effective on their part. Charles E. Higdon: Anyway, in addition to doing a survey at the mines, we checked the identity of people associated with the mines. We had a bunch of American engineers working in the various mines; and also, there were Germans. Some of these mines were German owned. Brian Hollstein: Oh. I see. Charles E. Higdon: Also I went to Santa Cruz, Bolivia, to identify a large German community over there. Brian Hollstein: Was there much espionage activity? Charles E. Higdon: I reported on Germans in Potosi, Bolivia, and also in Santa Cruz. I got lists of people who were active in the German activities there. While I was in Bolivia, we deported about 25 enemy aliens to the United States for internment. Brian Hollstein: Oh. So they were cooperating, at that point then. The police? Charles E. Higdon: The Bolivians. All the countries in Latin America, except for Argentina and Chile, were cooperating, at that time. They had broken relations with Germany and with the Axis powers. So they were all cooperating. It was only, toward the end of the war, that Chile and Argentina broke relations with German. Brian Hollstein: How did you get your reports to the Bureau? Charles E. Higdon: My reports to the Bureau were turned over to the Legat office in the Embassy. Brian Hollstein: Okay. So, so that was the Legats then? 14 Charles E. Higdon August 11, 2004 Page 15 Charles E. Higdon: The Legats forwarded the reports over to Washington through diplomatic channels. News reports were sent via All American Cable, the local telegraph office. Brian Hollstein: Oh. Okay. So you didn’t have to go through any encryption? Charles E. Higdon: I had my code books and handled it that way a few times, but not often. Most often the reports I made, and the names and lists, went to the Legat. Brian Hollstein: Oh, I see. But every once in a while you’d transmit things in encrypted. Charles E. Higdon: I used a little code there. Of course, I used the local telegraph office to send in some of the reports when we had the deportation. I remember the deportation of 25 of the German aliens who were active in German affairs there. I sent that report, it was a news item, to the headquarters in New York news agency I was working for. Brian Hollstein: Oh. I see. Yeah. So naturally you’d be filing the news too. Yeah. Charles E. Higdon: From the local cable office down there. Brian Hollstein: Did you run into any actual German spies or saboteurs? Charles E. Higdon: No. But, a lot of pro-German activity mostly. It was mostly proGerman activity, rather than spies. They were helping the German cause wherever they could. Brian Hollstein: Was that pretty open? Charles E. Higdon: Pretty open? Oh yeah. We had a big, big stream of Jewish refugees that had come to Bolivia. The Bolivian Consulate General in Paris, France had sold almost a million dollars worth of Visas to German Jewish refugees. And they spoke the language and that helped out tremendously. Brian Hollstein: Oh sure. 15 Charles E. Higdon August 11, 2004 Page 16 Charles E. Higdon: We had a few of the refugees working as informants. Brian Hollstein: And the Germans didn’t try to do anything to the Jews then? Once they were in the country? Charles E. Higdon: They took the place of the Indians, who were shopkeepers. Brian Hollstein: Oh. I see. And then continued on that way. Charles E. Higdon: They were waiters at some restaurants. There was one professor at the Sucre Palace Hotel, who spoke five languages. Brian Hollstein: That’s what happens though. Charles E. Higdon: Oh yeah. I was headed to Washington in the fall of 1942, after six months in Bolivia. I was having lunch on the terrace of the Sucre Palace and the waiter comes up and puts the National Geographic picture in front of me and points down and says, “Is that you?” Brian Hollstein: Is that right! Charles E. Higdon: I said, “Nope. That’s not me. That’s my brother. You can see that he’s much heavier than I am.” I’d lost 25 pounds of weight because of the altitude at that time. “He’s much heavier.” So, I turn right back to talking with the parties that I was dining with. Brian Hollstein: (laughing) wow. Charles E. Higdon: Anyway, he went off shaking his head. Brian Hollstein: Talk about blowing your cover, right. Charles E. Higdon: I left, as scheduled, about two days later. I was already scheduled to leave, he wasn’t the reason I left. Brian Hollstein: That’s something. The National Geographic blew your cover, huh? 16 Charles E. Higdon August 11, 2004 Page 17 Charles E. Higdon: Oh yeah. That blew my cover. That’s the first time I knew the photograph existed. It hadn’t come out when I left, I never saw it. So as soon as I got back to Washington, I got myself a copy. Brian Hollstein: Well it’s famous ‘cause we still use it. That is really funny. Charles E. Higdon: Oh yeah, it is. Brian Hollstein: From there then, it looks like you went from La Paz to Montevideo? Charles E. Higdon: I came back to Washington. Brian Hollstein: You went to Washington, huh? Charles E. Higdon: I returned to Washington and was assigned to Montevideo. Brian Hollstein: Oh. I see. Okay. What was Montevideo like in that time? Charles E. Higdon: Montevideo? I went there as Assistant Legal Attaché. Montevideo, at that stage, had a bunch of Germans interned in Montevideo. The ones that were on the German supply ship Tacoma, during the Graf Spee incident Brian Hollstein: Right. Charles E. Higdon: They were not the Graf Spee ones. Uruguay had interned the Germans who were on the Tacoma. It was the refueling ship for the Graf Spee. The Graf Spee had been in a fight with British cruisers off shore and came they into port at Montevideo. The U.S. and Britain put pressure on the Uruguayans to order them out of the port. On the way out, they scuttled the Graf Spee to block the channel. That was in 1939, I think. Brian Hollstein: Right. Charles E. Higdon: The Germans didn’t block the channel when the Graf Spee was scuttled. They went off course and they got in their lifeboats and took off for Patagonia, in Argentina. 17 Charles E. Higdon August 11, 2004 Page 18 Brian Hollstein: Yeah. I visited little monument there, overlooking the water where the Graf Spee went down. Charles E. Higdon: Can you still see the funnel there? Brian Hollstein: I don’t recall seeing anything. Charles E. Higdon: The funnel stuck out of the water. Brian Hollstein: Yeah, but that’s 50 years ago now. 60 years ago. Charles E. Higdon: I’m sure it must have moved it since then. Brian Hollstein: Yeah. Probably. Charles E. Higdon: The crew of the Tacoma was in port for two weeks, before I even got to Montevideo. They went in port for 2 weeks after the Graf Spee took off for Argentina in their lifeboats. Uruguay interned the ones that were on the supply ship … the Tacoma. During two weeks in port, the crew sabotaged the Tacoma by driving phonograph needles through the wiring throughout the ship. Brian Hollstein: Oh. Charles E. Higdon: The U.S. bought the Tacoma for one dollar from the Uruguayans in 1968. A crew was sent down from the Philadelphia Naval Yard to restore the Tacoma. They were there for a year. I spent a couple of weeks on the Tacoma when we first took it over. I found a log book in the side of the ship and sent it to Washington for analysis. The ship never got back into operation at all. It was, at the end of the war, taken back to Philadelphia but it never got back in service. Brian Hollstein: It was well sabotaged then. Charles E. Higdon: They painted over the wires. You couldn’t tell where the wires were. But they did have two weeks; they drove phonograph needles through all the wiring and then they painted over it and, and it was completely sabotaged when the U.S. took possession of it. 18 Charles E. Higdon August 11, 2004 Page 19 Brian Hollstein: Oh boy. Did were the Germans active there also, with espionage? Charles E. Higdon: They were active at the local level. They had several German firms represented there. And we followed one of several Germans that we thought were agents; they were young guys like ourselves. And we said, “Why aren’t you in the German Army?” They asked the same question of us. Two U.S. firms, Swift and Armour, had meat packing plants, and they were supplying the British population and the troops with beef. So we had an Agent assigned to check out the personnel of these companies, to make sure that we weren’t being penetrated by the Germans. We monitored a great deal of traffic, but we never discovered a German radio there, but they had radios operating in Brazil. Brian Hollstein: Right. Charles E. Higdon: Yep. But we didn’t discover a clandestine radio of the Germans. But they did have a local German organization. When the Uruguayan had broken relations they still had German firms there, and German personnel. Locally, they had meetings from time to time and we identified a lot of the Germans. As far as I know, there were no any deportations made from Uruguay to the U.S. Brian Hollstein: Yeah. That’s another busy place. Charles E. Higdon: Oh yeah. Brian Hollstein: And you were there from, it says here, from about December of ’42 to July of ’44. Charles E. Higdon: That’s correct. Brian Hollstein: So you had a good amount of time with them. Charles E. Higdon: Oh yeah. I was there when Chile broke relations with the Japanese and Germans. The diplomats came to Montevideo via the night boat to Buenos Aires. I was able to search some of their gear to see if there was anything we could find. But there wasn’t anything. 19 Charles E. Higdon August 11, 2004 Page 20 Charles E. Higdon: They were coming over to catch the repatriation ship, the Swedish ship, the Gripsholm. And that was in Montevideo Harbor in 1944, I think. Brian Hollstein: So the Japanese? Charles E. Higdon: After Chile broke relations with the Japanese and the Germans, the diplomats all were deported. Yep. Brian Hollstein: Okay. And they came over to your harbor then to leave. Charles E. Higdon: Montevideo. I went over to Buenos Aires. I accompanied them back on the boat, and searched their baggage on the way over. That was with the help of crew members. Brian Hollstein: But nothing interesting came out of that? Charles E. Higdon: Nothing came out of that. They were mostly interested in carrying back radios and electrical appliances and that sort of thing Brian Hollstein: The usual stuff? Especially going back in a wartime country. Lots of that stuff wouldn’t be available anymore. Charles E. Higdon: That’s right. Brian Hollstein: Any other highlights from your Montevideo days? Charles E. Higdon: One of the big highlights was … we had a report while I was there …If you remember the case of the saboteurs in Washington?… Brian Hollstein: Alright. Charles E. Higdon: In New York, I mean, off Long Island? Anyway, we had a report that the Germans were landing at Punta del Este, Uruguay to sabotage the meat packing plants in Montevideo. This information came from the local police with whom we had a liaison relationship. So about three or four of Agents went to Punta del Este. We spent two days with the Uruguayan police lying on the beaches at night, looking for the German subs to land the saboteurs. 20 Charles E. Higdon August 11, 2004 Page 21 Brian Hollstein: Didn’t find anything? Charles E. Higdon: It turned out to be a false report. But it was a tough time … lying in the sand out there with nothing but a 38 special and sand beatin’ in your eyes two nights in a row. Brian Hollstein: Yeah. Well, I spent some time in Punta del Este. It’s tough duty over there. I’ll tell ya. (laughing) Charles E. Higdon: Oh yeah. It’s tough duty, but I wouldn’t miss it. I rode horseback up and down the Punta del Este beaches many times. Brian Hollstein: Was it pretty elegant when you were there? Charles E. Higdon: Oh yes. Well, that was the place the Argentines came over for vacation and to gamble. Brian Hollstein: Right. Yeah. Charles E. Higdon: The Argentines also came to Carrasco in Montevideo. The big crowds came from Argentina. They came over there to gamble. . Brian Hollstein: Yeah, a lot of money also flowed through the banking system. Charles E. Higdon: Oh yeah. Brian Hollstein: And in Montevideo, they were big time bankers. I guess the Argentines wanted to get their money out of the country to some place stable, and this was just across the water. Charles E. Higdon: I was in Montevideo when two things happened. First, we had FBI Agents who were supposed to be picked up in Argentina, but got word so they came over on the night boat and we kept them. We kept them for about a week in Montevideo till things cleared up in Buenos Aires. And they were able to go back to Argentina, after that. There were about four or five undercover Agents, that were there scheduled to be picked up. They were later transferred. Brian Hollstein: And, so they were able to go back though? 21 Charles E. Higdon August 11, 2004 Page 22 Charles E. Higdon: They were able to go back. Yeah. Their covers were blown but they were able to go back. After the Embassy in Buenos Aires cleared things up with the Argentine officials. Brian Hollstein: Yeah. ‘Cause I have a bunch of people here whose listing in Buenos Aires was for very short periods of time. Charles E. Higdon: The undercover people that were in Buenos Aires, they pulled some of them out. And, of course, you still had the Legat Office in the Embassy’s still there. Brian Hollstein: But all the undercover guys had to go? Charles E. Higdon: The undercover guys were the ones that who didn’t want to leave. Brian Hollstein: Did they tell you why they had to leave? I mean, you know, what the reason was that they were compromised? Charles E. Higdon: Oh no. They were scheduled to be picked up by the Argentine police. And, we had information that they had identified some of these fellas and were going to pick them up. So we had somebody from the police department notify the Legat Office. Brian Hollstein: I see. Charles E. Higdon: That these fellas were scheduled to be picked up. And so that’s why they were suddenly rushed out of the country. Brian Hollstein: Oh yeah. Sure. Charles E. Higdon: Till they got things squared away. I don’t know exactly what happened but they were able to go back. But then they moved them out of the country. I don’t know what kind of diplomatic representation was made, or how it was handled. Brian Hollstein: Yeah. So now, it looks like many of them got replaced elsewhere. Charles E. Higdon: Oh yeah. Brian Hollstein: And, so they didn’t lose them completely from the service. 22 Charles E. Higdon August 11, 2004 Page 23 Charles E. Higdon: This is true. I was in Montevideo when the [Argentine] government was overthrown and Castillo became the President. Peron became the Minister of Defense. He then moved on up and took over for Castillo, who was the President. At least ten members of the Argentine cabinet from the previous administration came over to Montevideo. I was able to interview a couple or three of them … as to what happened. But they stayed about a week in Montevideo and then when things quieted down and the new regime of Peron and Castillo took over they were able to go back then to Argentina. They went back to Argentina , after the new government took over. Brian Hollstein: How many SIS people were there in Montevideo? Charles E. Higdon: We had three in the Legat Office, plus a stenographer, and a radio operator. Brian Hollstein: Do you remember any of their names? Charles E. Higdon: Let’s see, a couple of them. Kermit Midthurn. He was the stenographer. I can’t remember the radio operator. Then we had another guy that worked with him, who doubled as a stenographer. Brian Hollstein: It wasn’t Horan, was it? Charles E. Higdon: No. No, no, it was not. Brian Hollstein: Okay. Charles E. Higdon: I remember we had about, I’d say, four undercover people. One at the packing plants. Brian Hollstein: Okay. Any other things we should know? Charles E. Higdon: That just about covers the highlights. Brian Hollstein: Okay. 23 Charles E. Higdon August 11, 2004 Page 24 Charles E. Higdon: We had several trips up to the Brazilian border to check out the German population up there. Several Germans lived in Sao Paolo in Brazil. They were active in the northern part of Uruguay. Nothing outstanding as far as espionage or interfering with shipping. One of the things that we worried about was the ships carrying beef, going up the east coast before they connected to a convoy. Brian Hollstein: Yeah. That would be a problem, I suppose. Charles E. Higdon: But the Germans subs never got down to Uruguay. They mostly were near Panama. When Admiral English was stationed in Panama, he started bombing surfaced subs. So he was able to clear out the Caribbean a little bit. But they never got down to Montevideo. Ships came up the coast and then linked up with a convoy. Then they had to worry about submarines. Brian Hollstein: I see. Okay. Charles E. Higdon: We never found any German radio stations. We identified some other clandestine radio stations; the Poles, for example, and the Russians. We identified their clandestine radio stations. We sent in copies of traffic, but, nothing substantial. Brian Hollstein: Did you ever get involved in the trade in platinum? Charles E. Higdon: Yes. Oh, very much so. When I became Legal Attaché in 1944, I was in Quito. And, at that particular time, there was heavy trafficking of platinum being smuggled out of Columbia, down through Ecuador and from there to Argentina. Spain was cooperating with Germany at that stage, and the German Embassy in Buenos Aires was closed. This was platinum that was smuggled out of Ecuador. Our Agents penetrated their organization of smugglers in Columbia. we cut their shipments of platinum which came overland into Ecuador and, then went out by couriers, taking planes from Guayaquil, Ecuador, to Buenos Aires. 24 Charles E. Higdon August 11, 2004 Page 25 Brian Hollstein: Oh. I see. Now, had you worked with Wally Estill, then, at that time? Charles E. Higdon: Wally came to Montevideo, as an undercover agent when I was there. I introduced Wally to an informant when he first got there. But I left shortly after he arrived. Brian Hollstein: Right. Charles E. Higdon: But anyway, we were able to seize several large shipments of platinum being smuggled out as I described. I don’t recall exactly how much. We turned that over to the Embassy and it was shipped to Washington via diplomatic pouch. And, it looked like it was coming from the Ecuadorian government. I’d say that was the biggest contribution we made there -- seizing this platinum. That was keeping it from getting down to Argentina, and ending up in the V-1’s and V-2’s when Germany was bombing England Brian Hollstein: How successful do you think you were in terms of the total amount of platinum that got to the Germans? Charles E. Higdon: There was a lot of platinum that was smuggled out. I have no idea how successful we were. All I know is that we seized several shipments of platinum. And it was usually in suitcases with cylinders located in the four corners of the suitcases. Little bags that were about three to four inches long and about an inch in diameter. They were cloth bags. That’s the way they were smuggling it. Brian Hollstein: Oh. I see. And what form was the platinum in? Was it a little ingots? Charles E. Higdon: It was powder. All powder. Grey colored powder. Brian Hollstein: So that would be pure platinum? 25 Charles E. Higdon August 11, 2004 Page 26 Charles E. Higdon: Oh yeah. We waited till they got ready to take it out of the country and that’s when we seized it. The couriers got ready to catch the planes. The ones we missed coming overland, we caught up with at Guayaquil, Ecuador through name checks and other identities by nationality. Some women were used as couriers also. And we had a Jewish refugee woman, that helped us do searches of women. Brian Hollstein: So she would be able to handle that side of it. Wally was mentioning some of the platinum also was stored in like Mason jars? At one point? Charles E. Higdon: There might have been during his time, which was later. Brian Hollstein: You were at Quito, right? Charles E. Higdon: Yes, I was the Legat at that time. Wally came along later after I’d left Quito. Brian Hollstein: Oh. I see. Charles E. Higdon: I never knew till I came back home to Knoxville after retirement that Wally had actually been in Quito. He was SAC in Knoxville. Brian Hollstein: Oh. I see. Charles E. Higdon: I didn’t find that out till years later. Brian Hollstein: Actually he was south of Guayaquil there back in the mountains somewhere. With a mining operation. And, had set up an interdiction so, for the overland people, you know, that were coming out of Columbia. Charles E. Higdon: Various routes were used overland. But they ended up in Guayaquil to catch the planes. That’s where we caught ‘em. And because of their identity and their name checks that we had, and informant information, we were able to intercede and seize a lot of platinum. Brian Hollstein: Oh yeah. 26 Charles E. Higdon August 11, 2004 Page 27 Charles E. Higdon: Brian Hollstein: Charles E. Higdon: the government deported about a dozen enemy aliens -- one Japanese and the rest were Germans or German sympathizers -they were very cooperative in deporting those. But we had information on the inside what was going on in their local German Bund. Brian Hollstein: Were there a lot of Germans there? Charles E. Higdon: There were not many … not like Argentina, or Chile. These were the ones that were enemy aliens or Ecuadorians from German families. Brian Hollstein: Well I was visiting in Quito a few years ago and, well, that’s a while ago now, but I was surprised. I saw the Changing of the Guard at the Presidential Palace and these guys came out with World War II German helmets on and field gray uniforms, you know, and goose stepping. And, guess the big brewers there in Ecuador, are German also. Charles E. Higdon: Oh yeah. All the brewers were German. Brian Hollstein: Oh. That was a little bit of a surprise. Charles E. Higdon: Yeah. We had informants inside of the local organization … that we were able to penetrate. There were a lot of cases that were open, when I first got there and I closed so many cases for ‘em that the Bureau said, “well you better get out and round up some new ones.” (Laughing) Brian Hollstein: You’re going to put yourself out of business. 27 Charles E. Higdon August 11, 2004 Page 28 Charles E. Higdon: Put myself out of business there. We didn’t have any reason to keep these cases open. When I was there we had about five people in the Legat Office. And we had a couple in Guayaquil. Brian Hollstein: Okay. Charles E. Higdon: Two in Guayaquil and five in Quito. Yeah. That were Special Agents. Brian Hollstein: Okay. And, you probably had an undercover or two also then? Charles E. Higdon: Well, not in Quito. Down in Guayaquil. Yeah. Wally probably came undercover from Montevideo. He was undercover there. Brian Hollstein: He was and had a few stories to tell about that. Anything, any other elements in Ecuador that we should know about? Charles E. Higdon: Well, those are the major, major activities. I want to mention that General Trujillo visited. Just after he took over in Cuba, he came down on a grand tour. We took him out one night with the head of the National Police to a local club there. One of the deputies got a little jealous of Trujillo and pulled his gun. One of our Agents was fortunate enough to grab the gun before he was able to use it. It was a little touch and go there. Brian Hollstein: We would have lost another dictator. Charles E. Higdon: Another dictator would have been lost. Yeah. He was making the grand tour around Latin America at that stage. I think that would have been important, in history, if that had happened. Yep. But we quickly ushered him out. Brian Hollstein: I’ll bet. Charles E. Higdon: We quickly ushered him out and got him on his way. Brian Hollstein: Yeah. Get him out of town on that one. 28 Charles E. Higdon August 11, 2004 Page 29 Charles E. Higdon: I think we had a busy office there. And good, good local informants. Brian Hollstein: So you, essentially, you had inherited, when you came up there, everything was in operation by that point. Charles E. Higdon: Oh yeah. Absolutely. Brian Hollstein: So it was a running office? Charles E. Higdon: It was already a good running office. Brian Hollstein: Yeah. You didn’t have to open, start anything up. Charles E. Higdon: No. Not at all. It was a good running office at that time. And it was a good running office when I left there. Then, I came up to Washington in January of 1945, for in-service training. I had an interview with the Director shortly after arrival, and we had a good visit. And, while I was there, I was recruited by OSS. Brian Hollstein: Oh. Charles E. Higdon: Other Agents that I had known in Washington as supervisors, or as Agents in Latin America, had gone over to OSS. They said, “Well, won’t you join up with OSS.” So, someone at OSS interviewed me, said they’d like to have me join. So I put in my resignation to the Bureau and joined them. I felt we had cleaned up the German activity in Ecuador, and only the platinum shipments remained. These involved local criminal smugglers and not members of the German community. Brian Hollstein: Now did you go in as a military person? Charles E. Higdon: No. Counterintelligence with diplomatic missions. OSS had college professors with linguistics ability who had served abroad. Also several former businessmen who had worked in Germany and Italy, and other places and they were not military at all. 29 Charles E. Higdon August 11, 2004 Page 30 Brian Hollstein: At this point though, the Bureau hadn’t given up its control over intelligence operations in Latin America? Charles E. Higdon: In Latin America, it still had the exclusive control over all intelligence except military intelligence. Brian Hollstein: Right. Charles E. Higdon: And, that was under a, what is called a preclusive agreement, like the way it was with the Army, Navy, Navy and Air Force. Brian Hollstein: Right. It was the delimitations … later on I think they called it the Delimitations Agreement, back in the early ‘50s. Charles E. Higdon: Delimitations Agreement. That’s right. Yeah. Brian Hollstein: Yeah. ‘Cause I worked under that myself. I was in Army Intelligence. Charles E. Higdon: Otherwise, we had responsibilities for all intelligence in Latin America. Other than that. Brian Hollstein: So how did the OSS work around that, then? They just accepted the Bureau’s reports? For Latin America? Charles E. Higdon: I don’t know just what the relationship was. Apparently the relationship was not too close because the OSS was trying to recruit FBI Agents. Brian Hollstein: Right. I’m sure Hoover didn’t like that. Charles E. Higdon: No, he didn’t like that at all. I learned there was not a close relationship at the Washington level between OSS and the FBI. OSS was offering an Army appointment if you wanted; we could have gone in as Captains. Even before I went to Latin America, when the OSS first got started, they were offering a Captaincy rating to anybody that wanted to come over from the FBI. Brian Hollstein: Well, you know, a lot of people, during the war, decided that they wanted to get some military time. 30 Charles E. Higdon August 11, 2004 Page 31 Charles E. Higdon: I remember … Brian Hollstein: … and left the Bureau. Charles E. Higdon: One Agent I knew got caught on a plant in New York and spent two weeks in Washington in the waiting room treatment. He became, later, Attorney General in California … ran for public office and for governor. I think he was in Washington a couple of weeks before he opted to take that Captaincy and he ended up as a General, a Brigadier General. Brian Hollstein: He did alright on that one. Charles E. Higdon: Oh yeah. He became Attorney General in California later on after the war. Brian Hollstein: How, how long were you with the OSS? Charles E. Higdon: It was about three years. Brian Hollstein: So, right till the end of the war, then? Charles E. Higdon: Brian Hollstein: Charles E. Higdon: 31 Charles E. Higdon August 11, 2004 Page 32 Brian Hollstein: And, now the OSS evolved into the CIA. Were you around for that part of it? Charles E. Higdon: Oh absolutely. Through the stages of the Strategic Services Unit (SSU) and Central Intelligence Group (CIG) to the CIA. Brian Hollstein: Did you continue your career, then? Charles E. Higdon: The Director General of Foreign Service asked me if I’d like to become a Foreign Service Officer. And so he encouraged me to apply. I applied; took exams and was accepted in late 1947 and became a Foreign Service Officer in early 1948. Brian Hollstein: Oh. Okay. That was one of my things that I wanted to do too. Charles E. Higdon: That was very interesting indeed. The exams are pretty tough, I’ll tell ya. Brian Hollstein: Yeah. I took the exam and didn’t hear anything, didn’t hear anything; and went in the Army ‘cause, you know, there was danger of draft and I didn’t want to be drafted. So I went in the Army and I got down to Ft. Dix and they cut all my hair off, took all my clothes away, and what have you. And that night, the first night I was in the Army, my father called and said that “I just got word from the State Department that you’ve passed the examination and they want you to come to Washington for an interview.” And I said, “I don’t think the Sergeant’s going to let me.” (Both laughing) Brian Hollstein: That was the end of my diplomatic career. Charles E. Higdon: When I resigned from the Bureau and sent in my letter of resignation, the FBI telegraphed my Draft Board in Knoxville. Brian Hollstein: Is that right? 32 Charles E. Higdon August 11, 2004 Page 33 Charles E. Higdon: Oh yeah. I got the notice from the Draft Board at the Raleigh Hotel in Washington. I went over and picked it up my mail, and they said, “There’s one that’ll be leaving.” Rooms were scarce at the time. (Both laughing) The draft notice came in, I turned it over to OSS and they got my deferment. Brian Hollstein: Yeah. They took care of it. So did you stay on then, to complete your career with the State Department? Charles E. Higdon: Yes, I stayed on to complete my career with the Foreign Service. . Brian Hollstein: Charles E. Higdon: Brian Hollstein: Charles E. Higdon: Brian Hollstein: You’ve had quite a career. Now you’re back in Knoxville. 33 Charles E. Higdon August 11, 2004 Page 34 Charles E. Higdon: I practiced law for 14 years in Knoxville after I retired from the Foreign Service, though I did legal work in Rome as Deputy Legal Advisor of the Embassy. Brian Hollstein: You finally got a chance to practice some law. Charles E. Higdon: And I retired from that about 20 years ago. Brian Hollstein: Great. Well, what a career! Thank you very much for sharing all of this with me. Charles E. Higdon: It was interesting, a very interesting indeed. 34
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