The above paragraph are facts typically found in the official record. What follows is information from the unofficial record, as well as legend, folklore, speculation and secondhand eyewitness reports that reveal a truth that stretches way beyond the official demise of the U-196 in the Sunda Straits in early December 1944.
Trailing in the wake of the U-196 was Nazi Uranium mined in Czechoslovakia under slave labor. Both Axis powers had been feverishly working on developing an operable and deliverable nuclear weapon for some time, even to the point, according to a variety of reports, of the setting off a 1944 German Atomic Bomb on the northern island of Rügen in the Baltic Sea and the Japanese somewhat later around Konan [now known as Hungnam] in north-eastern Korea.
The Germans, in conjunction with their own efforts, sensing a potential collapse of their regime in Europe, began shipping Uranium through France, loading it into U-Boats and transporting it to Japan for the Japanese nuclear bomb project. In turn Japan paid for the enriched Uranium-oxide with gold bullion. As things in Europe deteriorated for the Germans and hard to come by materials used in their far-flung war efforts became more scarce and difficult to obtain the Nazis began using submarines to transport the rarest and most important of those materials to their homeland. A good part of the Japanese gold intended to be shipped through to Germany as payment started piling up in the far east submarine ports because of being continually bumped by those more important strategic materials.
The piles of bullion, worth a fortune, easily transported in the hold of a submarine, began making an ever increasing mouth-watering target for anyone in the far east, uneasy with an unfavorable outcome of the war, and having in their hands a way to get away with absconding with it.
Enter the U-196. It is a hunch that a number of Nazis and German military, senior or otherwise, living in Japanese territory, possibly in collusion with some crew members of the U-196 fled from Djakarta in 1944 with a cargo hold full of gold. If the gold was just taken on their own discretion or the crew was originally mandated under official orders to transport the gold outside of Japanese territory and bury it for safe keeping is not known. In any case they took it upon themselves to take the gold and simply disappear. By then, with the whole world open to them and no known destination they were at least at the time, free and well beyond the reach of German authorities and the arm of the Gestapo.
Even though the U-196 was stricken from the records after having been listed as missing, as some suggest, blown up or sunk by mines in the Sunda Straits south of Java, it appears the U-196 headed toward the open Pacific charting a course for Mexico and the La Palma Secret Base. With no one at the base having any reason to suspect any wrong doing they were co-operatively provided with fresh water, supplies and fuel as requested. Then the U-196, headed north toward the mouth of the Sea of Cortez and the coast of Sonora --- to find a new homeland and place to settle, far from the war, with opportunities to start a new life.
There are reports, or at least strong rumors to the effect, that a German U-Boat arrived at the Chiapas secret base for refueling long after the Japanese stopped using it on a regular basis, only to show up along the Mexican northwest coast off Sonora late in the year of 1944. The stories go on to say the U-Boat, said to be under the auspices of the Gruppe Monsun operating out of Penang, Malaysia, was carrying a rather large shipment of Nazi gold intended as an inducement for certain Mexican authorities to ensure a potential post-war settlement of high ranking Germans and Nazi refugees. However, any gold associated with such a venture disappeared along with the submarine.
By late 1944 things had changed drastically and the Germans were not as welcome in Mexico as they could have been, so the wayward travelers of U-196, continuing their odyssey, turned around and headed south out of the Sea of Cortez. With nothing but seeming desert on the Baja Peninsula side and the specter of the U.S. looming along the open Pacific Coast to the north and with no known safe harbor except possibly surrender and the loss of their freedom [and gold] they continued south.
Bypassing a stop at the La Palma Secret Base because of no need to do so having been fully fueled and supplied during their earlier stop and wanting to keep as low a profile as possible in Mexico, the U-196 made its next appearance off the coast of Chile.
A former Chilean sailor living at La Serena, and a one-time crew member of Chile's main and only battleship the 'Almirante Latorre', allegedly told writer and historian Geoffrey Michael Brooks, a British expatriate living in Argentina and author of several U-Boat and German submarine histories, during an interview, that a large U-Boat rendezvoused with the battleship in Chilean waters. The ex-sailor told Brooks that the U-Boat came alongside to obtain updated maps and charts. The captain of the U-Boat said he was bound for a German colony in Patagonia, possibly Caleta de los Loros. The U-Boat, from sources other than Brooks, has since been identified as the U-196. As to Caleta de los Loros, a continuing series of strong rumors indicate there are two sunken U-Boats just off the coast of the area, although a number of repeated dive attempts over the years by both private parties and the Argentine government have not yielded anything physically substantial.
People go on-and-on about the "fact" that all of the World War II German U-Boats have been accounted for in some fashion or the other and none are listed off Caleta de los Loros. If there are two subs off the coast there they would have to be two so-called off the record "Black Boats," which the same people decry as highly unlikely because there is no proof that such boats ever existed. Information backed up from other sources might argue otherwise.
On 13 December 1939, two years before the U.S. declared war on Gemany, the battleship-like German heavy cruiser the 'Admiral Graf Spee', a so-called "pocket battleship," was heavily damaged in a heated battle with British warships off the coast of South America. She took refuge in the River Plate estuary, a river outlet that empties into the Atlantic between Buenos Aires, Argentina on the south and Montevideo, Uruguay on the north. Under the captain's orders the ship limped into Montevideo for repairs and evacuate the wounded. The captain was told it would take at least two weeks to make the ship seaworthy. Uruguay, being a neutral country and following the rules of the Hague Convention of 1907, the 'Graf Spee' was not entitled to stay in port longer than 24 hours without risking internment. The captain, not sure he could make the run across the estuary to Buenos Aires because of damage to the ship and an increasingly larger British threat beyond the confines of the estuary, rather than risk the lives of his crew, decided to simply scuttle her. The crew was removed and thus then, interned in the "more friendly to Germany" Argentina for the duration.
On 16 February 1946, with the war well over with, 811 crew members of the 'Admiral Graf Spee' were shipped home aboard the British passenger-reefer, the Motor Ship 'Highland Monarch' [it should be noted that during the two year period between their initial internement and the end of 1941 around 23 officers along with about 200 NCOs had escaped captivity and returned to Germany]. Officials of the Argentine military turned over the identity books of the returning sailors all lumped together into one big bag without checking any of them against the actual crew members that boarded the 'Highland Monarch'. An additional 79 'Admiral Graf Spee' sailors were picked up at Montevideo under similar circumstances.
During the voyage to Europe the identities of all of the men were matched one-on-one against the identity books. When the match-up was completed it was determined 86 of the men were not from, nor had ever served on the 'Admiral Graf Spee'. They were instead, to a man, U-Boat crew. Not one of the U.S., British, or Argentine governmental authorities connected to the repatriation were able to come up with a satisfactory answer as to how men from U-Boats, especially so many, ended up in Argentina in the first place, let alone be returned to Germany to be repatriated.
All three governments involved in the repatriation plus Germany have been mum on the subject with no list of submarines released matching individual sailors with a given U-Boat.
Speculation is that the 86 sailors smuggled aboard the 'Highland Monarch' must have arrived in Argentina either on clandestine U-Boats associated with the east coast of South America and the Caribbean or having crossed over the Andes from the Pacific side from similar clandestine boats. As for crossing the Andes, Jürgen Wattenberg and five others had crossed over the Andes in the opposite direction into Chile during their escape back to Germany after the 1939 battle of the 'Admiral Graf Spee'.
Jürgen Wattenberg had an eventful war, serving initially aboard the pocket battleship 'Admiral Graf Spee' during the Battle of the River Plate and up until her scuttling off Montevideo. He was interned in Uruguay but escaped and made his way back to Germany, where he arrived in May 1940, and joined the U-Boat service in October that year and received command of U-162 on 9 September 1941, departing on his first cruise on 7 February 1942. Wattenberg was by this time 41 years old, making him one of the oldest U-Boat commanders to undertake a combat patrol. He was the first and only commander of U-162, and in a successful career spanning just under a year, he sank 14 ships, a total of 82,027 gross register tons [GRT].
U-162 was detected in mid-Atlantic north-east of Trinidad on 3 September 1942 and attacked by three British destroyers, and sunk with depth charges. Two of the crew were killed; Wattenberg and 48 other survivors were rescued and became prisoners of war.
Wattenberg was imprisoned in several camps in the United States, starting at Fort Hunt, where he arrived in September 1942. He was then moved to Crossville on 16 October 1942, and again to Camp Papago Park on 27 January 1944. A large break-out occurred on the night of 23–24 December 1944, with Wattenberg being one of the 25 prisoners to escape. Most were recaptured or surrendered fairly quickly; Wattenberg managed to remain at large until 28 January, the last of the escapees to be recaptured. With the end of the war Wattenberg was transferred first to Camp Shanks in 1946, then to a compound near Münster before being released.
He settled in Germany, where he died in 1995, aged 94.