No, he apologizes for possibly offending him due to the fact that they have to spend so much time together waiting for Mundt. Fiedler isn't gay in the film; the recruiter, Ash, apparently is.

Beware of pam's spoilers in her reply!

Now I remember exactly why I had the feeling he was gay. Fiedler was telling Leamas how he would like to take him for drive and a walk. But than apologized and asked if that offended him.

I believe we have "met" in another "5b4Forum!" Since then I have been looking back and cannot even now see anything that would lead to this conclusion." Fiedler" is a Jewish Communist spy, and, as is true in all of Oskar's characters, firmly allied to his own ideals. He has discovered what appears to be a "mole" a counterspy, and is reasonably sure he is Mundt. Mundt, is exactly that but must be protected at all costs from being discovered because he is valuable to British Intelligence. The real aim of sending Leamas into East Germany is to eliminate this threat. Leamas is told to contact Fiedler which he does and he gives Fiedler the information "plant" that appears to incrimminate Mundt. During the time that Leamas is being "checked out" by Fiedler they have to go places where they cannot be overheard, thus, the walking in the mountains and other out of the way places. After Fiedler has enough information and is called back by the C.P. He tells Leamas that it may take a while and offers to supply some "entertain-ment (ie: female companionship). Leamas tells Fiedler about "Nan" back in London. Fiedler laughs in a of "you sly old dog" kind of way and Nan receives an invetation to visit East Germany. She goes as we know. There is a hearing held that turns the tide against Fiedler. Mundt gives Leamas and Nan a quite positive idea that they may escape back over the Wall at a certain point. Of course, they ca5b4n't be allowed to go back knowing the truth and they are both shot as they attempt to escape. On their drive to that point, however, they, having both rather liked Fiedler, discuss that he will probably be shot.