WAR & PEACE: Unwelcome Guest

Three Federal officers in plain clothes one day last week shouldered their way into a luxurious suite in Manhattan's Waldorf-Astoria Hotel. To the thin, tall, elderly man who stood inside, wearing a wrinkled pajama coat and a pair of trousers, they said curtly: "Dr. Rieth, you are under arrest."

Dr. Kurt Heinrich Rieth, onetime German diplomat, undercover agent for Adolf Hitler, had been living at the Waldorf for two months. Federal agents, who called him the "No. 1 Nazi now in the U.S.," knew he was there. They were keeping their eye on...

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