.. REF ID :A2436259 

Declassified and approved for release by NSA on 07-22 2014 pursuant to E.O. 13s2e 
REF ID:A2436259 

'!'UP SECRE'I' 

REPO'.RT·oF.VISIT 

1Q. 

CRYPTO A.G. (HAGELIN) 

BY 

WILLIAM F. FRIEDMAlif 

SPECIAL ASSISTANT TO THE DIRECTOR, NATIONAL SECURITY AGENCY 

21 - 28 FEBRUARY 1955 

----------~-------
I -:-· INTRO:bUCTIOI~ 

1. In accordance with Letter Orders 273 dated 27 January 1955, as modified 

by L.0.273-A dated~ February 1955, I left Washington via MATS at 1500 hour~ 

on 18 'February 1955, arrived at Orly Field, Pe,ris, at 1430 hours on 19 February, • • • f ' I ' -,-:--, I." -'\ i I I ~ ~ ,.o"4 • ,. ... \ • .... a .. ''I •:,,., I I 

.arid at Zug, Switzerland, at 1830 the same day. I sp~~~ th~- ~e~t .few da;s· ~ 

Boris Hagelin, Junior, for the purpose of learning the status of their new deyelop-

' 

ments in crypto-apparatus and of makifie an approach and a proposal to Mr. Hagelin S~, / 

as was recently authorized by.USCIB and concurred in by LSIB. 

~ Upon completion of that part of rrry mission, I left Zug at 1400 hours on 

··'··· 

28 February and proceeded by atrb-eme:afle to Zttr-3:ch, wfl:eie I l3e-a.d:ee: a s~"3:es ah3::i:nMP 

plet;ille to London, arriving :H1 i:Jendo-l't' at 1845 that evening, f,the schedll1 ed plan'i ed 

2_. The following report is based upon notes made of the subste.nce of 

several talks with the Hagel~ns, at times in separate meetings with each of them 

and at other times in meetings with both of them. 

3. The notes regarding the status of new developments and plans for the 

future should be of interest. Included among these notes is information of 

considerable importance in connection with the problem of French COMSEC. 

"1· The approach and proposal which is referred to in paragraph 1 above · R6D$c.1:B+o~~ 5~ 

and which I '-'<as authorizedA~u ni!tk:e .to ·Ur. Hageli~~a(usCIB: l.~, i+h ... f dated ~1 J)ec ~ \WW;1~ ~~cw--~ t-'i>\~ \.:o ~o...... {)-sc.I~) \~-S-1-~poncurred in b.•il\ii~ d:atea ) was made to JS: I!Ia.geHn-;· 

~ S@~ during the evening of 26 February; and the discussions thereon were continued with Mr. Hagelin, Junior, on 27 February at the request of Mr. Hagelin, 

Senior. 

1 
REF ID:A2436259 

'!'OP SBSHEIP 

The approach was quite successful, for the USCIB proposal was accepted with 

alacrity and without any modification. 

PL 86-36/50 USC 3605 

EO 3.3(h)(2) 

2 
REF ID:A2436259 

II. STATUS OF NEW ])EVELOPMENTS 

1. Sales and Prospects of Sales of C-Line of Mac~~nes.-- The following 

information under this heading was given mostly by Hagelin Jr., who either had 

the data in memory or had quick access to the records pertaining thereto: 

a. The present manufacturing capacity of the Hagelin 

Stockhol~ for the ma~ufacture of the C-line of machines (C-52, 

plant/in 

CX-52, etc.) 

is 60 to 80 machines per month; the goal is to increase this to 100 per month 

as soon as prac~icable ~the Stockholm plant is closed dovm .(ee~ fl&!rPai'!3)· 

($1l.12. ~ i!_ ~) 

and the new pla.nt in Zug is well establishedJt No manufacturing quotas were 

mentioned with regard to other machine~~ the latter are still in the 

development, prototype, or pre-production stage. 

b. Decision has been made to close down the plant in Stockholm and to 

- move.such of its manufacturing tools and equipment as is deemed advisable or 

necessary. to Zug, where two new buildings are to be prepared for production of 

·· ·~ tP,e new lines of machines. One of these buildings is an existing structure 

......... . ~~~~ 

,. which is to be modified to suit the need for addifional.,spac'4, its top floor 

is to be made into an apartment 

-~ 

for the.chief engineer, Mr. s:ur: ~y~erg, 

presently in Stockholm but/\ to move to Zug as soon as the apartment · .. is com..:'-

pleted. The other building is to be newly constructed and the excavation 

therefor has been completed; its top floor is to be an a.partment for Boris 

~~~ ·~ He.gelin, Junior)\ The three buildings fvo above-mentioned) plus the present • 

research and 

~~~~ 

development building) are adjacent to the home of Boris Hagelin, 

Senior, so thatACrypto A.G. will 1be a gompact, homogeneous set of units. I. 

was told by Hagelin Junior that his father expects to retire from ~ctive dir-

~ . 

action of Crypto A.G. in two years (age 65), although undoubtedly he will 

/\ 

continue to have a voice or hand in direction thereafter. From one comment 

3 

.. 
REF ID:A2436259 

!OP 9EJ9HE'l' 

~ made by Hagelin Senior, I gathered the unmistakable impression that lfa;gel~n-

~io~ plans to let Hagelin Junior take over the Orypto business and direct 

its affairs when ~e~~ retires. 

g:.(l) The plant in Stockholm, besides being now engaged in manu~ 

facturing the new C-52 and CX-52 machineR, is also to fill an.l>rder for 500 __ _ . f (L~) . to 1,000 ma.chines of the old C-446 type. (See paragraph~ below.) In or1er 

to execute this order some or most of the tools for making the C-446 wili-~ve 

~~l)'WW . 

to be r

1

ehabilitated or else replace<?\ I asked Hagelin Senior if he need..ed. 

any financial help in this regard; his answer was in the negative, sinae, ~s 

he said, he estimated the cost of rehabtlitating the old tool~ or mak;ing new 

ones to be only about $10,000. However, ~~k~~ he~wet!:3:d like to have"i:iom.e help in 

~"-(t~~ building up his new plant in Zug for e-tl?..erw±s"he wea.;J.t have to s~11" some of 

his liquid capital assets (stocks and bonds). I made no cornrq.~t ;ind the 

.. matter was not referred to again. I wish ~o point out, .,~1".'"t:'!ver, that the 

rehabilitation of the C-446 tools offers certain potential ~dvantagea to 

lfKUSA; for once these tool~ have been rehabilitated, Ha.gelin will ~e able 

(as :tie himself mei-}.tioned~to me) to make more C-446's tlia.n 3..re ~e-~ded by the~_ ~~~--~"W-.~.~-~~. {.\ 

Bttobet!. In other wo~s he was hinting to me that this rehabili"t!!t':.on would ~ . 

make it possible for him t·o supply certain customers with a model almost 

like the M-209. [!§his model is, of c0urse, easier to solve than the new 

models and the manufacture of C-446's would eliminate the proplems involved 

in either the US or UK supplying Hagelin with M-209's for this purpose-;]' 

(2) The present space occupied by the Hagelin plant in Stockholm 

u~\),ge. 

will be turned over to the Johansen ~ Company, together with all of the 

ONJ... to 

c-446 tools, j_igs_, and dies; these ~ be held by Johansen on .loan until • 

~ ~ ~ S°H> 1--o lJl»O C.-ti-+U.s ~ ~ ~ rL.R.o 6~~ the ~ G 44&4 er-:oto -oe ma:nufa.c t;ared:-ha.-ve been completed. These too1~11 ~ 1 

4 
REF ID:A2436259 

. ~OP SESRB@, 'nn 

~ ~~ IArVU(., 

Athen be shipped to Zug. 

~~ a..u-J._ 

The Johansen firm is to~employ all or most of the 

Hagelin workers in Stockholm, except Chief Engineer Nyberg, mentioned above. 

!!_· (1) It may be well at this point to set forth specifically the 

different models or machines w~ioh are comprised in the C-line, using designators which the Hagelins and I agreed would be suitable. The C-line machines 

are readily classifiable (according to Hagel in Senior) into two ma.in classesEO 3.3(h)(2) PL 86-36/50 USC 3605 

In this class the machines are 

not to be equi~ped for operation with a one-time tape(b'T'T), 

(b) Class 2 -- Where the stepping is irregular and where 

OTT readers are provided, as well as equipment for producing the tapes. 

(2) Based upon ~in Class ~there are the following 

models: 

(a) C)\;..52a: The mod.a·~ with .f-~~n~ard A s,l~ars (for the 

~-~ xoJL =i: ·°"--~ ~ .-..O..v11.·.bv ·. 

~~ 

cs.ge), which ~~e e::ti4±~feP-ea:eQ. of the key wheel~~ f~ 

~~ .0,1,')..l~)+\ o-r 

~ 5 steps per'-bperation; /\ 

(b) CX:52b·: · The;°~! .~ta~ ~: .. ~ the 

~· which~ ~of tlie key whe~s,w!tenl>,;< aH ~ OMRl w;,;i,j_ 

~-.:a~ number of steps but the number may be any one from 1 to 32; 

" 

5 
,_._ 

#/._ -

REF ID:A2436259 

'f'OP O;El9:H!H1 

(c) CX-52c: The model which is compatible with the old types 

of C machines, the M-209, the C-446, or a certain version of the C-52 machine; 

(d) CX-52ak: A CX-52a with the (Huettenhain) 11komplimentary" ~~~-1-

·feature; \ · I\ . 

(e) CX-52bk (or CX-52ck): These are likewise the same as 

CX-52c but with -the complimentary -·~~ feature; - ~ 

CX-52b and 

~) CX-52/10 and CX~52/30: These are CX-52's for 10-character 

ci~hering (digits for enciphering numerical code ~oups) or for 30-character 

ciphering (30-element alphabet)"._,.1) 

·~~nes can be of the!!:_, E_, or.£ type, and can 

also be provided with the complimentary feature. (Exple: CX-52~10) 

(3) In Class .1 there are the following models: 

(a) C-52: The model which is compatible with M-209, C-446, 

but also can be made to function with interchangeable key wheels and with 

key wheels of larger numbers of elements than M-209 or C-446, so t~ a set 

of key wheels can comprise more 

tk 

thanJ\6 wheels ~~~. A8:2J :i1'> M-209 or C-446}. Also 

the C-52 can be provided with a larger number of slide bars than has the M-209 

or c-446. 

(b) I presume that there can be a C-52/10 or C-52/30 but 

these were not mentioned; and at the moment I do not recall asking whether 

there could be a C-52~, or C-52b, or C-52c, or C-52ak, etc. I could no doubt 

ascertain this point easily enough by asking either of the Hagelins. 

e. (1) However, there is a new C-52 machine which is of consid·erable - . 

interest, and which Hagelin Junior mentioned with much enthusiasm. This 

model we agreed to call the C-52Y. 

( 2) In -~he C-52Y, the print wheel may be advanced according to 

6 
REF ID:A2436259 

combinations of one to 4 different amounts, and each of the key wheels may 

also be advanced according to combinations of one to 4 different amounts. 

Perhaps the best way to explain wha~ this model will do is first t011,'l:"e<tAi:.-*W ~ 

.~ ~ ~ 'hl.tt~ what the M-209, or the C-446, or the ordinary c-52 does. Inl\.~he ~a~te:i;i. ~ 

~' if there are say 4 J.ugs presented to a key wheel and the latter is in 

"active" position, the print wheel advances 4 steps; but in the C-52Y this 

same condition can bring about 4 kinds or amounts of stepping of the print 

wheel: o, 1, 3, or 4 steps can be made, depending upon the particular slide 

bar and lug arrangements in the cage. Or, if 7 lugs are presented to a key 

wheel (and the latter is in "active" posH;ion), the print wheel can advance ~~ 

~"""-~-·~....,.Q~ ~O..Yc.e-J...~ ~a.~aM.-\f . 

·O, 3, 4, or 7 steps,{ or O, 2, 5, 7 st.epsJ or O, 1, 6, 7 steps,\.(the total 

amount is the sum of the 4 parts). So much for the advance of the print wheel. 

Now~for the stepping of the key wheels. In the M-209 and the C-446 these ~i:Q... 

V advan e~one and 

~~~w..~. 

only one step. In the C-52Y,Athe 

~ 

ke~heels are advanced 

always 

according to the same quadripartite combin~tion rule as that ~pplicable to 

the print wheel, depending upon the slide bar and lug arrangement. If 7 is 

the maximum amount f~~n~ certRin key wheel~the latter can advance O, 3, 4, ·~ ·~ . . . . 1>-~~ ~ ~ j 00\. o, "2--, S"" t-1 ri ~~Cl..~ ~ 

or 7 stepst\ "" ·- _ ... ·, ~· e:l!d:-:E · ~t ~ . ~he different key . ~,_ 

wheels may receiye different sets of quadripartite combin~tion steppings, but 

i\w.~~~~~ ea...vv . not exceed 32. This type of action, which was conceived only recently ...,~~ 

" (December 1954), can be br,mght about in the· C-52 merely by placing standard, 

B slide bars -in the· cage in a certain sequence arid with- a oer·tain kind of 

(3) Hagelin Junior was so enthusiastic about this new model that 

within two or three minutes immediately following our ~~:;i$-~tingShe 

announced that they had decided to stop making the CX model and are switching 

7 

~ -
REF ID:A2436259 

11 

over to a variation of the C-52 which)he s~id)is simpler in mechanical effectuation and more readily adaptable to the crypto-control mechanism for the HX ~ 

~ 

~~) 

electrical-rotor ~·· I wa.s, of course, rather star~ by 

this statement and later queried Hagelin Senior ab-:iut it, saying that I was 

astonished at the decision to switch to the C-52Y before any security evaluation at all had been·made of .... 

J. II• Hagelin Senior said, "Oh, Bo is young and 

overflowing with enthusiasm. We will hold up making that model if you want us 

to hold up on it. 11 I told him that I thought this m:j.ght be advisable, and that 

in any case we would want one of these models just as soon as possible. Hagelin 

Senior said that it was easy to convert a C-52 to a C-52Y and that we could do 

it with the one he is sending us from Stockholm (at my request) by air; all we 

would need w:uld be the special instructions for the slide bar and lug arrangements and he is to provide these instructions soon. 

(4) A few minutes later Hagelin Senior read me a paragraph from 

a recent letter from the Italian defense. department, in l'lhich it was stated 

~ ~O"'M.tl.O that they were withholding an order for new ~n machines until ?;,t was. 

known~had been decided wit~~ATO co~cations. Hagel:in Senior 

wanted to know whether.I thought there was a possibility that a Hagelin machine 

might be adopted for 3rd level NATO communications. I indicated that this 

was certainly conceivable .and that that was why I was so interested in the 

proposed shift from CX-52 to C-52Y manufacturing, for I pointed out to him 

that NATO COMSEC authorities would have to be sure of the security of the new 

model and that detailed studies would. certainly have to be made of the C-52Y 

before it could be given serious consideration for possible .NATO usage. It 

was then that Hagelin Senior said that he would hold up on the C-52Y if we 

wanted him to do so. 

8 
REF ID:A2436259 

' 

f. 

- Following is information regarding sales of machines of the C-line: 

(1) Eg.ypt ~ now negotiating for 50 C-52 machines. They also want 

10 BC-52 mach~s. They are waiting until an agreement can be reached as to 

prices. N~cision has yet been reachedleither)as to whether their machines 

are to have Roman or Arabic characters. I asked Hagelin Senior whether there 

had been any trouble with the~tians because they weren't being given the 

CX model. "Well, the only thing they can have now is the C-52. We just stopped 

talking about the CX; we talked only about the C-52 and they were satisfied." 

(2) Jordan ~ has bought (about) 30 machin~si 10 are C-52's and 

20 are BC-52's. Hagelin is going to make delivery . rte--soon,Ah:e-hae ~~tl~ a 

~ 

very good 

agent there. liaga1iJ:l-~hese machines are for the Arab League and the 

Foreign Office. It is the British who are behind this purchase -- i~s they 

who are paying. The Jordan Chief Signal Officer is a Britisher." 

(3) Iran -- The Hagelins have no agent in that country. There 

seems to be no interest there in cryptomachines, according to Hagelin S.enior. 

(4) Iraq -- is negotiating for an order of about 50 to 200 C-52's 

with Arabic characters. "They have a more than lukev1arm interest." 

(5) Syria -- has recently purchased 50 C-36(sic) machines. I 

asked Hagelin Senior where in the world he found so many of that old model; 

"We- had some down in the ~~~· basementA" 

(6) Saudi Arabia -- only some correspondence exchanged recently. 

Hagelin has no agent nearby. 

(7) India -- was shown only the C-52 model. The Hagelins felt 

quite certain that the Indians will order some of these ma~hines, and they 

are also definitely interested in the BC-52 •• .,lHagelin Junior on his recent trip, 

it will be recalled, did not demonstrate the CX-52 to any of the Arab countries, 

nor to India;}" "The Indian Army is interested in these machines, too. They want 

to have a lot of BC-52's for test purposes. Don't you think that queer?" I said 
= -

REF ID:A2436259 

(9) Belgium - ~he Armed Forces ~ave ordered more than 200 CX-52's 

an~ about 160 have already been delivered. These are CX-52~ s with variable 

typewheels. The Belgian Foreign Office have C-446 machines and will stick to 

these but have bought 100 variable typewheels. 

(1()) France -- "The French have had the CX-52 two years already, 

for study. 11 The Foreign Office has placed an order for abc•ut 100 machines; 80 

CX-52_!, 20 CX-52~10. .[!iThe Armed Forces are much more interested in the HX 

machine," Hagelin said. I will have more to say about France later in this 

report.J' 

(11) Portugal ~bought five CX-52a's. 

(12) Italy - no action yet. "They are 'bellyaching' about 'what 

will NATO do."' Hagelin Senior stated that endorsement of the CX-52 would 

serve as a real stimulus to their placing an orier. 

(13) Greece and Turkey -- have been given literature and are 

interested. Hagelin Ju.nior is supposed to have gone there long ago for a 

selling trip, but has postponed the journey - no date mentioned. 

(14) Holland - The situation with regard to the Dutch is interesting in view of the Petersen Oas.::. Tliey are sticking to the C-446 in the 

main; this is certainly true as regards the Foreign Office. Referring to the 

renewed manufacture of the old C-446 type of machine (mentioned in paragraph 

t;_~) above), these are for the Dutch Government. :M:ost of these machines are 

for the Dutch Foreign Office but a good many are also intended for the Dutch 

Army-r. According to Hagelin Senior, the Dutch Foreign Office finds the C-446 

quite sa~isfactory because, as they say) (a) they are well organized now for 

~ te._ oet.~ using that model and (b) the new models are much more expensive~ (Hagelin 

Senior commented that Dutch thrift resents having to pay more than they think 

10 
. .. 

Jj REF ID:A2436259 

'l'O:P SEClmT '1 - ~.) Howaver, though the Dutch Foreign Office likes the C-446, it wants· }~~ 

a certain number of their new C-446's to be provided with means~using one- .../! {f 

time-tape control of the stepping mechanism instead of pin-wheel control. The 12~ 

development of the tape-control mechanism has given Hagelin some trouble but . -.:J-~ 

the problem was recently solved. Hagelin Senior stated that the Dutch Army is '+-·~~ 

~~4 much interested in the new CX-52 model and wants to obtain some machines of 

~hey paid'~~ for them, moreover, in Free Swiss Francs and they didn't relish this." i,.J ~~ -

that type as well as a number of BCX-52's. 

(15) United:.Kingdom - "The ·British bought. two CX-52 1.s. 

(16) Germany and Allstria ~Dr. Hell (who by contract supplies 1~~-~ 

the West Germans and West Allstrian ma:rl<et for C-line machines) has assembled ci; ~~ 

ten CX-52' s for the Bonn Government. These are CX-52~ tY.Pe ,- •~e only model . f i ."'5 ~ 

which is approved by Huettenhain." {ihe personal relations between Hell and k :C: 

Hagelin are still very cordial and their contr&ctual relations are the same 

as related in m;y previous report~ 

(17) Sweden -- is goin6 to replace all its C-446 machines with 

CX-52's in a long-term replacement program, with a more or less fixed amount 

of money available each year for _this purpose. ~ 

(18) Spain -- has shovm a great interest in C-52 but has pl~ced 

no order as yet. They are also interested in other new Hagelin products. 

(19) ~ - has recently placed an order for two CX-52's. These 

are soon to be delivered. 

(20) Indonesia -- "Vie had quite a messy business correspondence, 

back and forth, but now they have finally decided to place an order for 20 

or 30 C-52's. The order is not firm as yet - they are waiting to get the . aI_):pro:priation and also an import permit." 

~] 11 

~ 
REF ID:A2436259 

(21) Poland and H~~ - Chief engineer Nyberg in Stockholm 

recently sold 2 C-446 machines to each of these two governments-without first 

wa.o 

consul ting Hagelin Senio:s,J ~/(fl:en said that they had indicated requirementi:EO 3.3(h)(2) 

PL 86-36/50 USC 3605 

for many machines. I asked what he would.do if they really came through with 

firm orders in quantity.I 

.. ~ 

(22) Jugoslavia ~ interested in C-line. Hagelin Senior said 

ll 

1\ that he "'takes for granted that this country falls in the same category as 

the o·liher fellows of the Middle East. 11 I said, "Let 1 s regard them for the 

moment as Satellites of the Soviets. 11 Hagelin Senior: 11That 1 s O.K. with me 

if you want it thHt way. 11 

(23) Central America __ - "There 1 s not_ much interest there in our 

machines. Costa Rica recently boug~t two C-446's; ~showed some interest 

at one time but this has died down. We have in Mexico a good agent with 

Norwegian background and he wants to sell some machines to the Mexicans. 

Venezuela is ·going to buy some machines.' 

(24) Brazil -- The Brazilian ~ is interested to the extent 

of some 500 or more machines but Hagelin Senior di~n't think they would come 

through with as -large an order as this in one lump. The Brazilian~ has 

bought 60'CX-52's, these to be compatible with their C-446's. When they will 

put in an order for more machines these will be of the CX-52 type •. 

12 
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REF ID:A2436259 

qigp S:S9lfl3! 

(25) Argentine -- The~ bought 13 CX-52 1 s but these are to be 

compatible with the c-446. 

(26) Qh.ile -- Not greatly interested but will buy some. 

(27) ~ -- Interested to the extent of about 200 CX-52's. 

(28) Parap,uay -- no ipterest. 

(29) Uruguay -- Bought five CX-52 1 s and two BCX-52 1 s. "That's 

their first experience with cryptomachines. 11 EO 3.3(h)(2) 

PL86-36/50 USC 3605 

a. 

-

(30) Colombia -- has ordered about 100 CX-52's and about 40 BCX-52's. 

Hagelin Senior told me that he was still worried as to 

what the U.S. was going to do in regard to distributing their new machine to 

NATO countries. I told him I thought he could cease worrying)for the present 

at ·any rate, because the intention is now to provide these machin~s to NATO 

countries only for NATO international communications - not for national. He 

commented that some nations would probably have too much of a nationalistic 

spirit to permit them to accept machines from the U.S. or from any other 

country. France, for instance, wanted to use only such machines as were 

invented.or made u:i France.~~~~~~ ~~ ~\~cf~ ..... -~~3 · oL_ i -~ - ~" '~~wc-a~.uu ... "~t ~~~Y~it~~~~~~ ~~~ 
REF ID:A2436259 

.k.• I said to Hagelin Senior that Boris Junior had told me that 

his father had again been to Paris recently and that I imagined ~t was in 

connection with the modification to the B-211. When he nodded affiI'IllC'.tively 

I said that I was glad to learn that he was trying to help the French, for they 

were our allies in NATO. I asked him if he could give any reason for the recently heightened interest in crypto matters on the part of France. He said .M& 

•\A,\.~ ~)-1)"4.0 4,. ~ ~ ~ ~ Fc) ' ~I "~ he thought thatA~ Viala's coming into the picture~ ae t\~~.9a 

there is another, unrelated Viala in the crypto pusiness for the French-. -

Department of the Interior wanted to replace the old-fashioned methods and r;'O. 

codebooks with more up-to-date things. Viala is a forceful character, he 

said. But he added tha-~ eo-fa:r:::ae Vial~!te-ee~.,....M of course confines 

his activities in this regard to the Foreign Office. He went on to say that the 

"Commision de Chiffre".under President Ollier is now very active. Capt. Mueller, 

a member of the Commisidn)~ representing the Presidence de Cons~~lers, is 

also very active. Ollier is a man 40 to 45 years of .age, rather cold but 

Hagelin sized him up as being extremely intelligent and a very~ character. Hagelin said he could tell me ~about some very important 

French plans for improvement in crypto affairs. For one thing, for ex~mple, 

the French Government is going to establish a plant in Paris but as a private 

enterprise. "There is plenty of money behind the people who are prepared to 

do that. The Government will buy the tools, since they want to be sure to 

-\k, -\-eet:i 

have allA~h&t ~~e necessary for rila.nufacturine their machines, but the plant 

itself will.be under private owriership. This ownership will probably be that 

of a subsidary of an already well-established firm called the Societel 

El.ectronique Automatisme (SEA), which;though a relatively new firm, is a~ ~ 

very imp'ortant concern malcing electronic computers. Its president is M. 

Raymond, a young man but supposed to ~e first in France in technical know-how 

14 "" 
i 

J 

REF ID:A2436259 

as regards such machines. The people behind SEA have plenty of money - they 

are considerably higher up in Government affairs than people like Colonel 

Arnaud, who is constantly being needled by Ollier to get busy on this crypto 

manufacturing business. The plant will start ~ith making HX (electric rotor) 

)) 

macrhines; possibly also CX machines. 

_. 

c. (1) The B-211 modification, designed and developed by the 

Hagelins, has turned out to be quite successful)according to Hagelin Senior. 

What I saw of this development (in Paris last September) was merely a rough 

design; they had worked it out in practice.so fh~t it can easily be added to 

the existing B-211; his ~gent in Paris (M. Rene de Uha1?JY) will probably do 

the work on the machines when the latter are 

-l-o -e..:_ 

sentA~ 

~ ~ 

forfoervicing.ia ba+4bce 

~-U\ . 

The Hagelin firm had an order for 250 modification kits for the French Army 

and 200 will probably be ordered by the " French Air Force. "Capt. Mueller told 

me that with this im~rovement the modified B-211 .will be more secure than the 

original British Type:t' (meaning, Hagelin said, the "type with the simple 

reflector - not the one with the straight-through circuiting and reversing 

switch"). H:i.g!'llin commented that the French had something on their B-211 1 s 

which was not put on by him and hence he didn't know what it was. The parts 

for the modification kit will be made in Zug, either by Crypto A.G. itself 

or by a sub-contractor in Zug. 

(2) I asked Hagelin Senior whether this modification kit for the 

B-211 would be available to other ovmers of that machine. "There aren't any 

others now." "Oh, but we have some," I said, to v1hich he made the laconic 

comment: "Yes, two." I said: "Yes, and you will recall also that I have one 

personally, one you presented to me for my collection - the one formerly ovmed 

by Ivor Krueger." Then he went on to say that he would do the conversion in 

Zug on our two or three m:::-.chines at such time as would be convenient. 

14 ~ 
REF ID:A243'6259 

• 3. a. Relations with S;!f,~mens and Halske are now formalized in a signed 

contract. SiemenB agreed to stay out of the Cryptomachine manufacturing 

business and confine itself to the teleprinter manufacturing business; Hagelin 

agTeed to stay out of the teleprinter manufacturing business and confine himself to the cryptomachine manufacturing business. In case in the future Siemens 

wished to go into the cry1rtomachine manufacturing business they must give 

Hagelin notice thereof and for at least one and a half years after giving 

such notice they rnust stay out of such ma.nufacturing. 

b. Hagelin Junior showed me the· last page of the contract with 

Siemens, in whi~h the marketable areas for teleciphering ma.chines were 

divided between Siemens and Hagelin as follows: 

(1) Siemiens alone: (2) Crypto A.G. Alo~e 

West Q-ermany } West Austria 

Jugoslavia 

Portugal 

Ireland 

All except l 

Brazil, USA, 

and Canada 

Europe 

America 

All excep·t Eg-,ypt ·- Africa 

All except India, ).. Asia .....---.. S 

Indonesia, China ) l 

All Australia 

(3) Siemens and Crypto A.G. together: 

Denme.rk } Greece 

Spain 

Europe 

Indonesia -- Asia 

None America or Africa 

15 

France 

Italy 

Switzerland 

Sweden 

Norway 

Benelux 

Brazil 

Egypt 

India 
'f OP SE9RM' 

REF ID:A2436259 

(4) Areas not yet assigned or clearly agreed: 

F.inland, 

Russia and all satellites 

East Germany 

China 

USA and Canada 

4. Rather casually, I asked Hagelin Senior, but in the presence of Hagelin 

Junior, why, if they were moving the Stockholm plant to Zug, they hadn't considered moving the whole business to the U.S. He replied: "You'll have to 

ask: Bo about that. 11 I said, "Why Bo?" Boris Junior answered somewhat quietly: 

"I suppose he means for me to carry on the business. What would be the 

advantages of moving the business to the U.S.? 11 I said: 11Well, I thought you 

didn't like Switzerland at all, and the same goes for Edith, doesn't it?" ~ ~ ~ 

"We're both getting better adjusted to living in Switzerland. And then soon, 

when ·the Nybergs have settled down among us, we'll have some agreeable company." 

Hagelin Senior: 11 I suppose the U.S. could and would bind me with restrictions 

so I couldn't be free to export where I please." I said that I supposed that 

certain thines c-.:;uld be done along that line - there were, of course, 

restrictions on sending instruments of war or material for war to countries 

behind the Iron Curtain. But I added that I didn't think the U.S. would be 

tough or have a very rough policy. I did not pursue this subject any further, 

nor did they. Later on, Hagelin Junior's wife (Edith) confirmed that she was 

getting better adjusted: "It takes a couple of years, you know. I was so 

upset last year that my doctor sent me to a psychiatrist but after the one 

and only one visit I made up my mini I didn't need such help and would help 

myself out of the spell." [fihe did look much better than when I saw her last 

September_J 

16 
REF ID:A2436259 

5. ·a. '.11he new b~se for the BC-line (electrically operated keybo':l.rd - mB.chines) was shown me. It looked exti·emely sim~le and compact. Arly C-52 

or CX-52 ~er.ely be placed inside the frame and fastened do·.vn by two screws, 

thus becoming a keyboard ~chine. To adapt the base to take a C-446 or an 

M-209 requires some modification but Hagel in felt tha·t this could be done 

though he questioned the practicability of doing it, because the shaft on 

which the keywheel assembly and the print wheel is borne in these models is 

too.short. This new BC base would facilitate qperation by OTT and the sensing 

part of the mechanism for operating a C-52 or a CX-52 (or, eventually and 

possibly a C-446 or M-209) by means of OTT is now worked out so that the same 

mechanism ·.·.·ill do for all. 

b. This new base for the BC-line will cost about $800. When I 

commented that I thought that a pretty stiff price for what was shown me, 

Hagelin Senior replied that he usually charged what the traffic would bear 

but at that price the cost· of the b~se plus the cost of the C or CX machine 

itself, the total cost will still be less than that of' the old BC-446, ·:hich 

wa.s 8,ooo Swedish Kronor, ·::hereas the cost of the new base plus the C· or CX 

comes to about 6,000 Kronor. On a big order for BC machine~ he would, of 

course, make a price adjustment. 

c. The B bases are now being made in Stockholm (about 25). Zug 

will begin making them in about 10 months, o-c.e.o-r 

PL 86-36/50 USC 3605 

EO 3.3(h)(2) 17 

,.. 
REF ID:A2436259 

6. One electronic OTT generator, called the ZG machine (Zufalls 

generator= Random generator), was designed ~;:i~=~~­ Hagelin engineer Sturzinger. It was just recently turned over to the French 

Fo'reign Office for study and assessment by the Commision de Chiffre. No 

tests for randomiity " were made by Hagelin. This model uses a Cree4 perforator 

and produces one original and one copy. It is not equipped with marking 

apparatus which, Hagelin Senior said, "is the heart of the job. The French 

are going to work that out." He expects an order for several more of these 

OTT generators from the French. He also is making 3 or 4 for Denmark, Danish 

Navy Captain Weilbac~eing much interested in this machine. Belgium has also 

placed an order for one machine. 

7. a. Crypto A.G. (Zug) has made parts for a first sPries of ten OTP 

producing machines (CBI-series) and one machine was assembled and operated for 

me during w.y stay in Zug. The machine is astonishingly.small }-n size (a~out 0 , 

~ 0- ~~ 6-~ "-J~ 1 cu. ft.) but weighs (I estimate) about 50-60 lbs. It printsA~ of 

8 :;roups of 5-letters but can be made to print 10 such groups per line. 

Present operating speed: 7 to 8 lines per minute. It can also produce 

similar length lines and groups of digits. I have brought back with me a 

sample of each (letter groups and figure groups) for preliminary testing. 

The machine easily makes one carbon popy and I imagine that it could make two 

carbon copiesJthough Hagelin Junior was dubious thereof. 

b. Of the 10 machines constituting this first series, 7 are 

already sold, to countries as follows: 

u.s. Italy 3 

Portugal 

Belgium 

France 

1 each 

3 

18 
REF ID:A2436259 

Crypto A.G. hasn't tried to sell any more of these as yet. Hagelin Junior 

mentioned that in his talks in India he learned that the Indians are now 

using IBM for making their OTP's but became much interested in the new Hagelin 

OTP machine. A retired general officer (Indian) came recently to Zug for a 

look-see.* There is a possibility that U.S. will buy one or two more. The 

1st machine for the U.S. will be ready for delivery in 1 - 2 months. 

c. Hagelin Senior said that Dr. Huettenhain had. tes·ted the end 

et~~~eet~ · product~some months ago and stated that the letter Z was unbalanced compared 

to the rest of the letters. Hagelin Senior said this had been correcte:i to 

a large degree but in future models they were not going to combine letter-group 

production with .. figure-group production in the i;same 

machines would be offered and they would be faster, 

machine; two separate 

~~~ 

simpler, more random~"-A& .. Qt:r. fi.. 

Hagelin Junior told me that they weren't going to make any profit on their 

first 10 machines and I imagine they would be glad to sell them all. Hagelin 

Senior asked me if U. s·. could use more than one. I said we'd want to test 

the end product of our first one as soon as possible and that it might be 

that we would have use for several if.they were really good. Hagelin Senior 

then reminded me (which reminder I didn't need) that General Canine had once 

indicated we would buy at least a couple. These machines are expensive 

(about $5,000) but 1of course) practically all the parts are hand-made. However, 

small countries would not need more than one or two such machines - and with 

communications of these countries are concerned. 

*Hagelin Junior said the Indian Signal Corps is also interested in the Hagelin 

teleciphering machines. 

19 EO 3.3(h)(2) 

PL 86-36/50 USC 3605 
,. 

REF ID:A2436259 

8. a. The status of the HX development was discussed. Some progress 

has been made in regard to the type of rotors that will be used; Hagelin 

Junior talked about t~eir using printed circuits, a matter being investigated 

for them by an English firm the name of which was not mentioned nor did I 

ask for it. The new machine is now definitely to have 10 rotors, as mentioned 

in my last report, and he showed Jne a prototype rotor with 32 contacts. The 

rotor was about ~! inches in diameter, the contacts of silver. I asked Hagelin 

Senior whether the HX-54 was to be a 26-ch~racter machine and, if so, what he 

proposed to do about the 6 extra characters. (This question was also asked in 

the course of m.y previous visit.) He told me that these 6 extras would be 

re-entered from the output side into the input side of the maza.J:f. wondered 

whether I should ask him if he had put in for patent coverage on this idea but decided not to ask. The U.S. has one in secret status in the U.S. Patent Office..;J' 

b. Two prototypes of the HX-55 will be ready before June 1955· 

·There will be three crypto-components for these, that is, there will be one 

spare crypto-component, for test purposes • 

.2.! I told Hagelin Junior that the sooner they could get us an 

HX-55 the sooner could.an answer be given as to the security of the machine. 

d. The Hagelins demonstrated a bench model of the slide bar and ...-

rotor d.rive mechanism for the HX machine, using the C-52Y principle. This 

component wa~et in operation and quite rap~d. However, the unit used 

was the same 5-rotor assembly thet was in the HX-54 I saw on my.visit last 

September, not the new proposed 10-rotor assembly. 

9. a. Hagelin Senior has definitely given up the idea of having 11 a 

- single package m-:.chine, 11 that is, one that can be used both for on-line 

20 
REF ID:A2436259 

teleciphering as well as for off-line literal operation in a single apparatus 

made up of' several components. He gave up the idea "because (1) it would 

take much lo~ger to develop than he could afford at 'this juncture of his 

·research and development; and (2); the Siemens people didn't like the idea 

and I don't want to buck them. They give us good technical advice and that's 

worth a lot to us." Hence, he is goine to have one off-line literal machine 

lk μ.,(J~ which might be the HX-55 or even HX-56; and.~ on-line teleciphering ma.chine. 

b. The first model of his on-line machine (TL-55 or 56) will employ - ~ ~~ . 

merely the 5-unit code .fBt.rm~ addition,)"-Vernam~ principle/controlled by OTT. 

The second model (TC-55) will also use ~-~U;D-addition but this will be controlled 

by the same cryp.tomechanism and principle as that to be incorporated in. the 

C-52Y; the third model, still an on-line teleciphering machine (TCX-55) will 

use the cryptoprinciples of the CX-52 ma.chine; and finally, a fourth model 

(TH-55 or 56) will use the HX cryptoprinciple (10 electrical rotors, with 5 to 

32 and 32 to 5 translators). All of the~ latter three models of machines 

will also be operable by means of OTT. Hagelin is trying to produce prototypes 

of the nevi teleciphering machines as soon as possible, but so far ·!;hey have 

only sketches, not even good drawings~ ~~till they hope to have prototypes 

this year. 

c. Hagelin Senior told me that he was going to try to eliminate 

rotors from the TH-56 and use instead relays. He thought that with about 400 

relays he could acc9mplish wh~t t:P,e ~tors do. l\e eL.l 'k;t' ~A&.~·~~ ~ ~ ~) --o-r- J.;..J.. t), ~· . 

~· No more of the present 0-52' s or TL-52' s will be produced; ·or 

the former a total of 20 was to be ma.de and these have been completed; of the 

A;\"" 

latter, a total of 50 was to be made ~only a few have been completed. These 

ma.chines are for the French F.O., Army, and Navy - no Air Force, because they 

21 
REF ID :·A2436259 

are tied up with SAGEM which has recently improved its model but still uses 

the cryptoprinciples employed by Hagelin in the prototype he buil1\::for SAGEM. 

(The v.s. has placed an order for one TC-52, and, I think, for one TL-52.) 

e. Hagelin Senior stated that Egypt and India are interested in 

having teleciphering machines controlled by the C-52 principle) and these 

\.e-.L . would be provided with but one tape reader (not two, so that~machine could 

not be operated by OTT.) He asked me if I thought it would be O.K. for him 

. to provide them with machines of this type. I told him I thought this might 

be satisfactory. 

10. a. The new pocket cipher device (CD) appears to be well under way 

and the Hagelins are enthusiastic about it. This device will use six notched 

~~~ 

disks made of plastic (the customer breaks of :iilre pieces~to fuakeCihe notches; 

~ 

~ will make the disks equivalent to the pin wheels of the C-line machines. 

In fact, the CD will have the C-type cryptoprinciple, but it can also be 

given the CX-52 cryptoprinciple. Since the CD will not have lugs on slide 

bars, there can be no "overlapping," but the CD could easily have seven or 

eight disks instead of only six; or it could even be operated by OTT. One 

keying mechanism has already been buil~at Stockholm; it is the size of the 

i':\·~ i.,J.. 

transistorized radio set I b'[ought/\~ the U.S. I gathered that the CD 

will produce a printed record ("the print unit is really very simple"), but 

my notes also say that 11 the CD will have C-type motion controlling two concentric alphabet rings. 11 

b. The history of this development may be of interest. Part of it 

was related to me privately by Hagelin Junior with the request I say nothing 

about it to his father. According 1to Hagelin Junior1many of their customers 

for several years inihe· past have ~e Hagelin firm with the request 

22 
REF ID:A2436259 

r;pgp 8B9m!l'P 

that they be provided with a pocket-size cryptodevice, and in 1951 he~~H J),..oJ_ ~proposed 

w.. \4\S"\ 

a 

~ mechanism ~ 

for such a device - the same or nearly the same as 

that incorporated in the present CD prototype. But Hagelin Senior was not 

interested in such a project and rejected Hagelin Junior's ideas - until an 

ex-Hagelin employee, 

device. /jfote: This 

one VIGO LINDSTEil~, came out recently with a pocket-size 

TRi\\\F., \1'12.A.. ,..~ )l 

is theJ{'-evice the Swedish Government turned over to the 

Norwegian Government, which turned it over to NATO COMSEC authorities; it is 

~ U\<.v~f.\ 

now being given security st~die~ How the Hagelins learned about the 

Lindstein device is not known to me; it is held in a secret status ~y the 

Swedish Government and has been from the beginning handled as SECRET in 

th4-. u\<.v't>A) 

NATOA so far as I am aware,;f When ~ Hagelin Senior learned of the Lindstein 

device, he then became much interes~ed in such a project and someho•:.r or other 

consider~d.t~ ~~~~~~~ ideas~his own. When Hagelin Junior le?.rned that Hagelin Senior 

had decided definitely to turn over the Sundsor brick manufacturing works to 

his other son (Gunnar), Hagelin Junior said to his father that in view of 

what he was doing for Gunnar he should at least turn over wha-i;' royalties 

there would be on the new CD to him (Junior); whereupon his father went into 

o.Q.Q.._ 

a rage, anparently claiming credit for the CD himself. "It's not.nice of me ~ ~ 

to say this much about the matter, but that's the way it was." 

o. I asked Hagelin Senior what usages he could foresee for the - CD. He felt that ~ecret agents, small military units, or patrols could find 

good use for it. 

11. a.· In connection with the 5 to 32 and 32 to 5 translator principle .(o~ - used in the proposed fourth model of the on-line teleciphering machine (THX-55 

or 56), a principle which incidentally the u.s. uses in one of its own new 

23 
REF ID:A2436259 

'f OP OEl9RB!' 

developments, Hagelin Senior stated that he w:_:;.s afraid he was going to have some 

difficulties with the Lorenz people in Germany. That firm has a German patent 

(elsewhere, too, I think) on the means for accomplishing or using that principle, 

applic~tion for patent having been entered in 1943 and just recently granted 

(January l-;55). Hagelin Senior showed me the German patent and he is to send 

me the numbers of the whole series w· ich Lorenz has in Germany and in other 

. countries on this tra.nslator mechanism or on other items of interest. 

L_Naturally, I did not say anything to Hagelin about our use of the translator 

principle but I ~m beginning to wonder whether the U.S. may not have similar 

trouble with Lorenz;}" 

b. 

- One Lorenz patent, also entered in application form in 1943 and 

granted in 1955 was, however, killed when Hagelin showed prior use of the 

item. I am to get that· patent, ·too. 

12. a. With reference to what the Bonn Government may be doing now with 

the Huettenhain cro'iVd, Hagelin Senior said he W'J.S told that for Bonn there 

would be "a small machines.ma.de by Dr. Hell. ..lf"That would, of course, be our 

own machine, the cx-52bk. 11 But there would also be "a large machine, made 

not by us nor by Siemens, but probably, I think, by Telefon und Normalzeit 

(T & N Co.) • 11 Hagelin. said that he did not know any details; for those were 

class:j.fied. I asked: "Couldn't it be Lorenz rather than T & N?" "I don't 

really know, 11 he replied, ''It could well be. I suppose Lorenz did some work 

on cryptomachines fo:- the Germans during the war, just as did the firm 

. WANDERER in what is r.ow East Germany. They stole my cipher pinwheel and 

slide-bar-with lugs ideas and constructed a machine in 1944., you lmow. 11 

/!i-he SG-41; Hagelin has one of these in his office;]" 

24 
REF ID:A2436259 

b. In a later talk with Hagelin Junior he asked me whether, with 

West Germany now or soon to be free, they will establish laws, such as in 

Sweden, prohibiting exporting certain kinds of equipment to c~rtain countries. 

I told him I supposed 

asked me to send.him, 

~ 

they might well do something along those lines. He 

if possible, what information,...could ~~~~ be made available 

~ reference to such prohibitions. 

~ 

It seems that the Hagelins are worried 

about~competition they might get in future from such firms as T & N, or the 

one that made Enigmas; if ~est Germany would place a ban on exporting cipher 

ma.chines the Hagelins would feel much more secure against the possibility 

that such firms "would peddle their machines abroad and give us serious competition." I said I'd see what literature or q.ocurn.ents were available to send 

them for information on exporting bans. 

25 
REF ID:A2436259 

"III. . THE APPROACH TO HAGELIN AS AUTHORIZED 

IN USCIB~29.14/29 OF 

27 DECEMBER 1954 

13. a. Having been with the Hagelins for several days, in a most amicable 

relationship, on the evening of 25 February 1955, after dinner, I felt the time 

had come and was prop~tious to broach to Hagelin Senior the subject authorized 

in USCIB~29.14/29 ~nd, of course, the real object of my visit to Zu~. 

b. I began by telling him of l.S. appreciation of his patience in 

maintaining the status quo in regard to the so-called "gentlemen's understanding" 

reached in January 1954; that understanding was to run only to 1 July 1954 but 

he had been considerate enough to extend the understandi~g for more than a 

whole year~b'!half of my Governmen~ished to thank him foF.that. 

~l.U-lt..~~~oa- Secondly, I told himf\ we B:l'l'!i!'eeia.~ .. hi~ disinclination to be pa.id money for 

not doing something; this was in line with his ideas of proper conduct, and 

we understood his feelings in this reg rd and his reluctance to enter into 

any relationship in which such a feature would play a prominent part. ·Thirdly, 

I said, we had been s!;ruggling to work out some kind of a proposal which 

would be satisfactory to us and perhaps acceptable to him, and we had finally 

hit upon one which was simple and which I had been authorized to place before 

him,if he was willing to entertain a proposal at this time. 

about 

me to 

c. Hagelin Senior responded by thanking me for what I had said 

our appreciation and un~erstanding of 

know how ~f~~is wife are 

his position. Moreover, he wanted 

for what we had done and were 

continuing to do for various members of his family. He hoped that everything 

would turn out well with regard to his son-in-law Conradi and his retention 

~ ~ u~A~ on active duty status/\as a result of our intervention - "the. young man keeps 

26 
REF ID:A2436259 

EO 3.3(h)(2) 

PL 86-36/50 USC 3605 

assuring me that he is working like hell. 11 He and hi$ wife appreciated very 

much what we had done for her cousin (Miss Barth) in making a ple~ce for her 

in our organization. Finally, he said, he would be glad\to hear what sort 

of a proposal !l had now to place before him. 

him that he need not give his answer there and then but could take his time 

to think it over, if he wished. 

e. Hagelin Senior thanked me but said he did not need time to 

- think the matter over; he was "prepared to make an answer then and there to 

···················· ... 

our proposal: he accepted it without any reser_vations or desire for modifications. But he would like to have some more details; he wanted to know, 

I told him I was not authorized nor able to give him more information on 

this score a·t this time but I had no doubt that sμch details would be forthcoming at the proper time. 

f. I thanked Hagelin for his ready acceptance of our proposal 

and said that of course this mat·ter is strictly secret between the U.S. and 

6..o Se 

him but that if he wanted me toAI could perhaps give a precis of the proposal 

• 

to him or to Boris Junior in writing. He thanked me for this gesture but 

said he'd prefer not to have anything like that in writing. However, he 

would appreciate it if I would convey the proposal~to ~ Boris Junior myself. 

This I did the following day but by that time Hagelin Senior already had a 

27 
REF ID:A2436259 

chance to tell his son very briefly the substance of the proposal and of his 

ovm acceptance. Hagelin Junior also v1as ready vlith his assent. /J. do not 

think that if he had withheld his assent it would have made any difference 

in the situation or to Hagelin Senior, for the latter had said, when he asked 

me to talk with Boris Junior about the proposal ·that even though his son was 

you?g, enthusiastic and wanted to make money, he "would be kept in line.:!] 

I I said I was sorry and ThOped they would not EO 3.3(h)(2) ___________ ____, PL 86-36/50 USC 3605 

be embarrassed if they themselves, the producers of the machines, were not 

also authorized to be recipients of such instructions. 

h. Hagelin Senior felt that our proposal was a fair one for both 

sides and wanted to know when it was to become effective. I told him that I 

thought that for a11·practical purposes it was either already in effect or 

would go into effect at once so far as we were concerned but I would let 

him know definitely about this point later. 

i. Nothing was said on either side as to the term of the 

"understanding, 11 ~\A,~ ,, "'°" ~ A-o ~ ~ -

0 ~~c::t; 

1.:. The ~~g;elins~wanted me to identify by name thel I ~ ,Ae-.&.., 

authorities; &&-this;,{ould be of great interest and help to them in their 

business. I told them I could not do so now; I could only say that there 

is a primary authority in Washington and a secondary one in Paris. I asked 

that they be patient in this regard and that it would perhaps be possible 

to give them more information later. In any case, it was not they who were 

to ask for any endorsement, but the NATO customer who had to take that 

28 
REF ID:A2436259 

EO 3.3(h)(2) 

'!'et' BEISRm PL 86-36/50 USC 3605 

that action, addressing their inquiry themselves to thel lauthor- ~-----

i\;ies..)~ ~would know where or whom to address ~ inquiry. 

k. Hagelin Junior said' (but not in the presence of his father) that 

up to this time he did not ask the office staff to mske copies of all correspondence, orders for machines, etc., for his own desk or use. But now 

he could see that such copies would be useful - he could turn over a copy to us, 

if we wanted some. I would merely have to tell him to whom or where to send 

them. 

1. I cautioned both Hagelins as to necessity for secrecy in this 

re~i~nsh::, and they both understood the point quite well without any elaboration. 

14• In my last report of a visit to Zug, I mentioned Hagelin Junior's 

urgent desire to acquire a TYPEX machine which he could turn over to Yr. Rossby ~ :S- <. ";..,\ 

(mentioned above in paragr~ph /\ ), who w~s anxious to obtain one. Hagelin 

Junior brought this subject up again, said that Rossby was still very anxious 

to get his hands on a TYPEX, and that when he (Hagelin Junior) learned on 

his trip to India that the Indians had some TYPEX machines he tried to get one 

from them but was not ·successful. He went on to say that Rossby somehow or-.. 

other got hold of a copy of the instructions for operating the machine but 

this, Rossby said, was not enough for his needs. Hagelin Junior said that 

he didn't necessarily have to have a machine in perfect operating condition 

one that worked only haltingly would do. He was quite i~ earnest about this 

and I think that if he could acquire a machine th~ough US or UKUSA action such 

a ~esture would certainly cemen·t good relations with Hagelin Junior, for)he ~) 

l\~~~~ ~ . 

t1i~ .idfcould get for ~a new automobile out of such a deal. 11 

29