UDK World News By United Press International --and seemingly innocent business offices and residences used by agents. Defector reveals spy network BONN, Germany — Reports of a Communist spy network involving agents in the United States swept West Germany yesterday. Government authorities announced that some arrests have been made but said the situation had been "grossly exaggerated." The Hamburg newspaper Welt am Sonntag (Sunday World) identified a Soviet intelligence officer who defected to the West last month as Rupert Sigl, 44, and said he betrayed 250 "Soviet KGB officers, agents, sub-agents and cover addresses in West and East." "Cover addresses" is spy parlance for post office boxes Welt am Sonntag said Sigl, born in Austria, delivered "a trunkful of notebooks and secret documents" which led to the arrest of 25 persons. It said some arrests were made "among the chief agents in the United States," two of whom made "full confessions." Partially confirmed A spokesman for the West German prosecutor's office in Karlsruhe said a Soviet KGB officer named Rupert Sigl had defected to American intelligence agents in West Berlin in mid-April. Sigl's revelations led to "less than 10 investigations of possible Soviet agents and fewer than that number have been arrested," The Karlruhe spokesman said. He said the bulk of the Welt am Sonntag story was "grossly exaggerated." U. S. officials in West Berlin declined comment on the case and on the unmasking of two alleged Communist agents in the divided city, one of them a government official. Communist coup Meanwhile, the Communists had a coup of their own to crow about. West German Army Maj. Hans-Joachim Kruse, a 44-year-old tactics instructor at the Hamburg officers academy, surfaced on East German television Saturday night more than a month after he disappeared. Kruse, who had access to military secrets, said he had defected to East Germany because of the "growing influence" of the National Democratic Party in West Germany's armed forces. The party has been described as neo-Nazi by its critics. USSR ready to stop China LONDON Communist diplomats said yesterday the Soviet Union is preparing a combination of diplomatic and military moves in the Far East to contain Red China. They said the Soviets are deeply disturbed about Peking's hostility toward Russia and "obsessed" with the alleged Chinese threat. youngsters of the so-called cultural revolution movement?" the diplomats asked. The Russians are now seeking some diplomatic arrangement whereby the issue may be settled. PRE-MED SENIORS! This anxiety, they indicated, lies behind the efforts of the Soviet Union to get talks started with Peking on the recent explosive frontier incidents on the Ussuri River. - meets med-school requirements This week Moscow made the third appeal to Peking for talks. 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