Magazine content is available exclusively for TIME subscribers.BRAZIL: Banzai Racket
Into booming, industrial São Paulo poured Japs by the hundred. Members of Brazil's huge (260,000) Japanese colony, they had sold their rice paddies and cotton fields, had come to the city to celebrate the triumphant arrival of the Japanese Imperial Fleet. Henchmen of mysterious, begoggled Toyojito Sugai handed them Japanese flags, pictures of the Emperor and news bulletins which announced: "Americans defeated in 15-minute naval battle; 400 U.S. ships sunk."
Brazilian G-men got suspicious. So did some of the Japs, when the Imperial Fleet failed to show up. Their joint conclusion: Sugai and henchmen were not patriots, but racketeers who had...
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