The story behind 'Nuts'

War History Online has an article, written by Henry Garvey for a Milwaukee, Wisconsin newspaper in July of 1946, about the most famous 'nuts':

In a quiet corner rests a mimeographed copy of one of America’s most famous messages. Its typically American text is composed of one simple word: ‘Nuts’. That message, as many remember, was sent by Brigadier General Anthony McAuliffe to a German general during the Battle of the Bulge in December of 1944. McAuliffe’s forces were surrounded at Bastogne for ten days, but refused to give up. When warned to surrender, McAuliffe replied: “Nuts.”
The man who typed that message, and later typed the mimeographed sheet, is Edward Ihlenfeld, 27, of 1811 W. Hopkins Street in Milwaukee, Wisconsin. A member of the Milwaukee police force since 1941, Ihlenfeld served four years in the Army. He is now a patrolman on special duty with the detective clerical bureau.
Recently, Ihlenfeld revealed a little of the tension and drama which surrounded the writing of the message. A member of the 101st Airborne Division, Ihlenfeld parachuted into action at Normandy on D-Day, 6 June 1944. McAuliffe was the assistant division commander, and Major General Maxwell Taylor was the commanding officer.
Following a series of actions in France, the unit returned to England. From there they parachuted into Holland and fought their way into France again.
Early in December of 1944, while the division was at a rest camp, word came through that the pressure was on in Belgium.  The 101st Airborne was rushed by a truck to Bastogne to bolster the stricken defenses. General Taylor was in Washington, DC at the time.
About 20 December 1944, the outnumbered unit was forced to dig in when superior German forces surrounded them. Seven German divisions faced them on the line.
When the Third Army under General Patton requested their position on 22 December 1944, Colonel H.W.O Kinnard, the operations officer, replied: “We’re in the hole in a doughnut.”
Lieutenant Colonel Paul Danahy, intelligence officer, remarked that he felt sorry for the Krauts because: “No matter which way we shoot we’re bound to hit them.”
That was the atmosphere which prevailed late on the afternoon of the 22nd when Colonel Joseph Harper, commanding the 401st Gilder Infantry Regiment, rushed into headquarters. Ihlenfeld was typing at the time. Several officers were conferring with the general. Harper handed the general the terms of surrender which had been delivered under a flag of truce. McAuliffe scanned it and tossed it aside. “Nuts,”he said.
Danahy suggested the general use the word as his reply. The general agreed and ordered Ihlenfeld to type the message. Harper returned to the line with the message and the fighting continued.
Later, McAuliffe had Ihlenfeld retype the message with a Christmas message to his men, which read: “We are giving our country and our loved ones at home a worthy Christmas present, and being privileged to take part in this gallant feat of arms, are truly making for ourselves a merry Christmas.”
Genera; Patton’s Third Army relieved the defenders shortly before the New Year.
For his part in the battle and other engagements, Ihlenfeld returned home with a Purple Heart, a Bronze Star, a Presidential Unit Citation with oak leaf cluster, four battle stars and a bronze arrowhead, the Belgian fourragere, the French Croix de Guerre, and the Dutch Orange Lanyard.

Rico says his understanding is that the Germans, when they received McAuliffe's reply, could not understand it, even when translated: Nutze...
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