Germans from a town which had valuable Nazi artifacts looted from it by a British soldier at the end of World War II were stunned after he travelled back there 65 years later – to return them.

Harry Billinge, 85, travelled to the small town of Goch specially to hand back the mementos he had snatched there in 1945.

The former sapper with the Royal Engineers formed part of the British push that invaded the German Rhineland. After fierce fighting, the town was captured by the Allies and Harry took the opportunity to scale an outside wall and take some keepsakes as the occupying forces retreated.

He collected a large Swastika banner, un-issued medals, including a 1st Class Iron Cross, badges and officers' caps.

Harry, from St Austell, Cornwall, said: "We all took souvenirs at most of the fights to take back home to our families. By the end of the war I had accrued loads of stuff."

Despite being offered thousands of pounds for the iconic banner, Harry held on to his mementoes and it was a chance encounter with a Dutch friend last year that prompted him to reveal his treasures.

Harm Kuyper, who chairs the Normandy Veterans Association Friends, could not believe his eyes when he saw Harry's collection and he photographed them to show to the war museum in Goch.

After spotting the flags, the curator immediately tried to buy the very rare and collectable items.

Genuine Nazi artifacts are highly sought after by collectors across the globe but Harry said he could never accept "blood money" for the items.

So 65 years after he left the ruined town, Harry returned to hand back his important collection.

"Before I handed the goods over to the curator I simply said, 'I took this flag in blood, I return it now in peace'," he said.

"Within seconds everyone around me had tears in their eyes – a very special moment that I shall remember for the rest of my life.

"They simply couldn't believe that a British soldier would make such a gesture."