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 foreign government discriminating against American creditors by giving other foreign creditors more favourable treatment than Americans."

At the time of Anschluss. Austria owed the United States U.S.$24,000.- 000 payment on flour end food bought in this country, plus an unspecified debt to American bond-holders.

The United States protested that Germany has undertaken settlements with Great Britain snd France but has neglected Austria's obligations to the United States.

The State Department also revealed that Germany replied to the original United States protest "that on account of 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 adjustment for payments to American creditors naturally- cannot be made."

The United States note called attention to the fact that the State Department has received numerous protests from bond holders.

"The United States hopes that the matter is now so far developed hat Germany will feel the need of no longer postponing effective attention to these legal and equitable claims hopes that the studies may produce in the near future a positive result so that American holders of Austrian securities will not long remain. the sole important group of holders of Austrian bonds for which there is no provision for payment," the American note declared.

To this note, Germany replied that in no opinion is Germeny under a legal obligation to assume the foreign debts of the former Austrian Government....since they were brought about in'order to support an incompetent Austrian State created by the Paris treaties."—United Press.

German Comment on U.S. Attitude Berlin, Nov, 27.

A German commentary on the determination of the United States government to give extensive support to the impending Pan-American conference at Lima was made in the "Deutsche Diplomatisch-Politische Korrespondenz" in the form of a lengthy reference to the departure of Secretary of State Cordell Hull.

Drawing attention to the demonstrative wey in which the United States press has lately been seeking to scare the South American states with reports about the danger of a German invasion and thereby to make Washington's plans for an overlordship more palatable, the article states; "The audacity of this anti-German campaign, to which Washington has furnished a new catchword in a recent statement to the press on the Jewish question, is coming to exceed all bounds and is developing to an increasing degree into a source of unrest affecting the entire international atmosphere."

"Although American interests are not in the least involved, there are being stirred up in the American people instincts of hatred which their instigators mean to see spread to.the entire American continent in order to make the acceptance of a military. and ideological Monroe doctrine palatable to the 21 countries assembled at Lima.

"Efforts are being made to place on the gouda questions of unprecedented character such as the question of military solidarity of the American continent, use of the South American seaports by the United States navy, exploitation of mines and agricultural resources by the aid of United States capital and various other matters designed to bring about a domination of the south by the north."

After pointing to the dangers of this policy of expansion and aggression which the United States are seeking to impose on the South American states, this German commentary concludes by asserting that Germany's economic aspirations in the New World are free of all forms of aggressiveness and tutelage. Trans-Ocean.

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

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