The Archive · 1938

Observers Foresee U.S. Retaliation

Wave of Public Sentiment May Force Action; British Credits to China

Washington, Dec. 17.

International developments, particularly the alleged German, Italian and Japanese discriminations against American citizens, were today. apparently forcing the United States into some sort of retaliatory economic action, diplomatic observers said today.

High members of the Administration said that the threat against American activities: on. the part of ihe dictator countries would probably develop a wave of public seritiment which would leave no altér-native but for America to retaliate in any manner that proved possible.

Some diplomats regarded the latest note to Berlin as a "storm warning," indicating that the United States would take every step to protect American interests, However, officials of the Government were without knowledge as to what measures could or would be taken under the existing statutes—United Press.

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