The Archive · 1938

Austrian Debt Protest

The State Department revealed that Friday's renewed protest on the Austrian debts declared that the United States. "most seriously protests and objects to acts and policies of a for-ign government "discriminating Skainst American creditors by. giving ther foreign creditors more favour= Sble treatment than Americans.

"At the time of Anschluss. Austria owed the United States U.S $2,000, 00 payment on flour and food bought nig country, plus. an unspecified out to American bond-holders, The United. States protested that Germany has undertaken settlements with Great Britain and. France but Has" neglected. Austria's obligations tothe United States, The State Department also revealed that Germany replied to the original United states protest "that on account or the extremely passive condition of German trade with the United States, Which already requires an outlay of Considerable foreign exchange to pay for German imports from the United States, similar treatment and. adjusttment for payments to American ¢f0- iters naturally cannot be. made."

The United States note. called at-

protests from bond holders.

Department has received numerous tenon to, the. fact that the state

"The United States hopes that the matters now #0 for developed that fonger postponing effective attention any will feel the. need.

these. legal and equitable claims hopes that the studies may pro-dice hn' the near future, positive result so Uhot American holders of austrian securities wil not long re-fain the sole important group of Folders of Austrian bonds for which there. is. no provision. for. payment the American note declared.

To this note, Germany replied that no opinion is Gerimany under a Toga! obligation to assume the foreign debts of the former Austrian Government, since they Were" brought Sbout marder to support an incompetent Austrian State created by the Paris treaties"—United Press.

Developments included the dis. closure today that Senator Key Pittman, Chairman of the Senate's For-ign' Relations Committee, would soon arrive in Washington' to corelate the individual studies of the neutrality question which many mem= bers of the Foreign Relations Committee have made since the adjourn ment of Congress.

The Department, of State recently made public the text of the third successive trade agreement with special provision in the form of an Neseape clause" relating to" future applications of the Neutrality Act.

The recent trade treaties with Canada and Great Britain likewise unexpectedly contained similar clauses which allowed the United Staton liberty to enforce whatever trade restriction proved necessary in line with the US. neutrality programme,

Text read from the printed page and cleaned; old type leaves the occasional error.

Your account