RIO 1055 .U51 S-E -C -R--L--T U.S. Army. European Command ...

SECRET (14'
KO Spain envisioned another possibility for R-work in the
support of a clandestine right-wing Falange group led by Perales, one
of the earliest Falangists and a sincere idealist. Perales' political
activities were of little interest to Abwehr II, which, despite its
New designation, Mil Amt D, had remained a purely military organization.
It was suggested to BERLIN, however, that a demonstration of good will
that 20 000 pesetas be alloted to Perales' organization for its propaganda
program. Perales and his followers were in opposition to Franco's
foreign policy, which in their opinion was becoming increasingly favorable
to the Allies. Perales was a fanatic Catholic, a rabid opponent
of Communism and a thorough Germanophile.
Perales' group consisted of old Falangists who had supposedly
remained honest and had not joined in on the frequent attempts by Falange
leaders to enrich themselves. They considered themselves the "Falange
autentica" as opposed to the regular Falange founded by Primo de Rivera.
Perales, known as a very secretive person, never divulged more
than vague information regarding the composition of his organization.
Moreover, it was felt by KO Spain that his tremendous enthusiasm caused
him to exagerate the importance of his group. He claimed that such
military leaders as General Yogue and Munez Grande supported his movement,
and that even Serrano Suner was sympathetic to his cause. It was considered
doubtful, however, whether these important figures would openly
ally themselves with France's enemies.
Despite suspicions of wishful thinking on the part of Perales,
Referat II was agreed that he could be of value in R-operations in the
event that Franco should break off diplomatic relations with Germany, or
that Spain should be invaded by the Allies. In July 1944 a plan for
making use of Perales was submitted to BERLIN. Since approval was not
immediately forthcoming and Perales needed time to round up and brief
his collaborators little progress was made in 1944. The project was
still in its preliminary states when Blaum left Spain in February 1945.
The first step of this plan was to set up a NA net which would
assure permanent contact with Perales after a break between Germany and
Spain. This net would have been the basis forfhture II work. The
remainder of the plan, including S-training, could not be carried out
because of the blanket order prohibiting all S-activities was still in
effect. Three Wit stations were to be established at MADRID, BARCELONA
and SEVILLA. The procurement of personnel and appropriate sites for
the stations were entrusted to Fernando Alzaga, head of the anti-communist
department of the Falange information service. It had also been
decided to turn over to Perales, a set of the documents revealing the
location of S-deposits mentioned above. Since the documeib were not
available in Spain, a set was requisitioned from BERLIN. They were to
be given to Perales just before the contemplated diplomatic rupture or
invasion. In February 1945, this had not been done.
SECRET