http://www.sunday-times.co.uk/news/pages/sti/2000/06/04/stifgneur02003.html

June 4 2000                         EUROPE


 Plumbing the depths: papers giving details
of the Odessa system that helped Eichmann
   to flee Germany were found in Lake
          Toplitz in 1959

Titanic team to search  lake for Nazi treasure

   Nick Fielding and Shraga Elam
DIVERS are launching an expedition to
trawl an Austrian lake for boxes of Nazi
gold, documents and forged British
banknotes designed to aid the escape of
Nazi agents to South America at the end of
the second world war.

As the allies closed in, retreating SS officers
dumped dozens of containers into Lake
Toplitz, high in the Alps, with the intention
of recovering them later.

Tomorrow the Simon Wiesenthal
Nazi-hunting centre in Los Angeles and
the Maryland-based Oceaneering company
- the team that located the wreck of the
Titanic - will plumb Toplitz in a 10-week
dive.

The haul is believed to contain top-secret
Nazi documents detailing how assets from
the Third Reich were deposited in Swiss
bank accounts, as well as art objects, gold
and the records of the Sachsenhausen
concentration camp near Berlin. Documents
detailing the assistance of the Vatican in
transferring funds to South America, and
some gold, are also believed to be
concealed there. Because of Lake Toplitz's
high salt content and low temperature,
they stand a good chance of still being
preserved even after 55 years.

Toplitz should also yield up the secrets of
Operation Bernhard, the huge
counterfeiting operation started by the SS
and backed by Hitler, which aimed to
produce billions in fake pounds and then
use the Luftwaffe to drop the currency over
Britain.

Heinz Riegel, now 80 and living in
Oldenburg, northern Germany, is the only
living member of the Lake Toplitz
Research Group, which included SS men
such Otto Skorzeny, a top Hitler aide who
rescued Benito Mussolini from captivity in
1943; Wilhelm Hoettl, the Third Reich
intelligence officer; and Friedrich Schwend,
considered the unofficial finance minister
of the so-called Fourth Reich - the
shortlived attempt by former Nazis to re-
establish themselves at the end of the war.
Schwend was in charge of Operation
Bernhard.

For 45 years Riegel, a retired
pharmaceutical dealer, has spearheaded
attempts to retrieve the treasure. Asked last
week about what he thinks is in the
remaining boxes, he was guarded. "Who
knows? Perhaps more material on German
industry, including the chemical company,
I G Farben. It is my view that among the
material at the bottom of the lake is some
of that Vatican gold," he said.

"The Austrian authorities did everything
possible to prevent the truth coming out.
They even threatened to torture a former
soldier who knew exactly where the
treasures had been dumped. With the
present diving, the truth will come out."

Although Riegel is
unforthcoming about his
war record, he later became
Schwend's representative in
Europe while the financier
tried to avoid extradition to
Italy from Peru on a murder
charge. In South America -
home to other Nazi exiles
including Adolf Eichmann,
Josef Mengele and Klaus
Barbie, the Butcher of Lyons - Schwend
had dealt in arms.

Riegel's job was apparently to locate and
recover Nazi assets left around Europe.

The Germans did not manage, however, to
reclaim the treasures of Toplitz. In the
summer of 1959, the German magazine
Stern mounted its own diving operation
and retrieved boxes stuffed with forged
pounds. It then found material of a
different nature: SS documents containing
orders for agents all over the world and
those describing the Odessa system - which
was to provide an escape route for Nazis to
South America.

The boxes were immediately confiscated
by the Austrian police and Stern's
investigation was shelved.

In 1963 the Austrian government
organised a dive at Lake Toplitz. It said it
had recovered a further 38 boxes, but
refused to provide any information on the
contents.

Ten years later Riegel was expelled from
Austria after being caught trying to mount
an illegal diving operation - and the lake's
waters have been undisturbed since.
According to witnesses, 130 boxes were
sunk, meaning about 55 should still be in
the lake.

Maximillian Gruber, an SS officer who was
in contact with Riegel, told him that after
receiving orders to dump the boxes he
detonated a massive rockfall into the
100-metre- deep lake to reduce depth at
that spot to about 94 metres. Gruber gave
him a map indicating where the boxes lie,
details of which are reproduced here.

"We have a 50-50 chance of finding what
we're looking for," said Bill Owen, the
high-tech team's dive leader. "This lake
was the garbage can of the Third Reich."



Copyright 2000 Times Newspapers Ltd. This
service is provided on Times Newspapers'
standard terms and conditions. To inquire
about a licence to reproduce material from The
Sunday Times, visit the Syndication website.

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