The Waterbury Democrat., 1934-07-14

(Continued from Page 1.) guns. He reiterated that he haG been profoundly shocked by events in Germany although emphasizing that he was speaking as an indi- vidual rather than a government officer.
 Mexico Aroused
 JohnSon'S comparison of the German executions with the Villa ravages in Mexico, resulted in the Mexican embassy telegraphing that paragraph in his speech to the foreign office.
 The embassy, it was indicated as a result of the move. would only make a formal protest if instruct ed by Mexico City.
 Other Latin American diplomats pointed out Johnson's references were not against present day Mex ico. They were inclined to doubt that the Mexican government would see fit to protest,
 No Discriminating.
 Berlin, July H. (UP)-The German government declared to- day that it has no intention. Of dls- criminating against the United States in the transfer of services on foreign loans-an issue which had aroused vigorous protest In America since the recent German debt moratorium.
 Germany pointed out to the United States that transfer Of 1n- terest payments on foreign loans at present was impossible due to foreign exchange rates and the trade balance.
 Germany, however, said the Reich was prepared to negotiate on the question to find a way by which services could be resumed on the Dawes and Young loans.
 The issue dated back to July |, when Germany declared a mora torium affecting services on var ious foreign obligations, chiefly the Dawes and Young plan bonds. Large parts of three bonds are held in the United States.
 Later under an Anglo-German agreement, an exception was made in regard to transfer of services to holders of bonds in Great Brit ain. Britain had threatened dras- tic retaliatory action.
 Then the United States called the attention of Germany to the situa- tion and demanded that the Amer ican bond holders should have equal treatment. Powerful Amer ican financial interests, including the J. P. Morgan company, also protested.
 Today the Reich replied that there would be no discrimination.
 American hold approximately s155,327,40O of German govern. ment bonds issued under the Dawes and Young plan loans, on which Germany planned to sus- pend payments.
 There are outstanding about $64,O21,6OO of the Dawes plan z per cent bonds, which were fioated in this country by J. P. Morgan & Go, and associates in 1924 to the amount of $110.000, 1000.
 Of the total of $9S,250.000 Young plan 1-2s offered in the United States in 1880 there is outstand- ing about $91.S05.S00. J. P. Nor gan X Go, and Kuhn, Loeb & Go. headed the syndicate that under wrote the American portion of the loan.
 The German notification of the United States was through Am basador William E. Dodd, who has protested to the Reich. The Ger man reply apparently placed the Dawes and Young loan payments to the United States in the same ctegory as similar payments to creditors in Britain and Holland.
 The next payment. Germany pointed out, is due on the Dawes and Young loans on October IS. which will give plenty of time for negotiations with the United States to arrange a means of payment.
 The government added that. if the Reich offer of May 29 were accepted by tae United States, Germany would give the United States the same consideration as given Britain in the agreement Of Iniv {.