Evening star., 1936-12-29
Reich Commander Threat.
ems to Search All Vessels
Headed for Bilbao.
PART OF CARGO HELD
WITH ONE PASSENGER
Hitler Stalls in Reply to France.
Hoping for Franco Victory
: at Madrid.
BACKGROUND


must prevent the leaving OF polun-
teer soldiers TOR the Spanish 'front.',
and that, in addition, Adolf Hitler
must agree to enter a general dis
armament accord. She tollo,Ded
this iDith an offer to return Ger
nany's war-lost colonies in return
for peace Backed By Britain, Hit
:. ler's reply has been awaited.
Seizure OF German treighter Pdlos
BY Spanish Socialists increased ten
sion and brought Hitler's threat OF
reprisals if pessel ,Dds not released.
By the Associated Press.
BERLIN, December 29.-The curt
demand of a German cruiser and a
threat to halt and search the ships
of any nation heading for Bilbao won
freedom today for the interned Ger
man freighter Palos.
The Palos. equestered by Basque
authorities at Bilbao last week, was
liberated upon demand of the cruiser
Koenigsberg," an official announce
ment said, but part of her cargo and
one unidentified Spanish passenger
were retained by the Basques.
Nazi naval might Immediately was
pressed toward the Bay Of Biscay to
free the Spaniard and the rest of the
cargo.
The cruiser Koeln and one torpedo
boat rushed toward Spain to protect
German shipping soon after the
Palos was captured, were due In the
bay today.
Berlin authorities expressed conf
dence their presence would lend
further effective emphasis to the
Reich's demand for unconditional re-
lease of the Palos passenger and the
remainder of the cargo.
(The Basques, at Bilbao, announced
they were holding the Spaniard be-
cause he had torn up his papers, and
part of the cargo because it was war
material bound for Spanish FascistsD
Officers May Search Ships.
The German threat to search war
ships of any nation which might be
steaming for Bilbao was added to a
previous decision for torpedo boat con-
voys for German vessels in the bay
after the expiration Of Berlin time
limit on the vessels release.
The time limit expired last night.
Pending final settlement of the
issue arising from the Palos seizure
q spokesman said, these measures"
still stood.
In other words, the commanders of
both the Koenigsberg and the Koelin
may, within their own discretion,
search any merchantmen Of any ma
tion which is heading for Bilbao.
It was not expected here, however,
that such drastic steps would be taken
as long as it remained probable the
German demands would be fully met
by the Basques.
One Wilhelmstrasse spokesman de-
chred, concerning the arrested Span
lard:
LAS the seizure of the Palos oc-
Cured outside Spanish waters and
our Spanish guest was stopped clearly
on German soil (meaning the deck of
the Palos), we cannot permit his re-
tention by Spanish authorities.
If they have anything against this
man. let them make a request for his
extradition."
Ship Continues Voyage.
The exact manner in which the
Palos was released was not entirely
clarified. The propaganda ministry
put the time of release at noon, and
said the vessel had proceeded on her
voyage.
A foreign Office spokesman said the
Koenigsberg commander probably had
wirelessed British naval authorities at
Bilbao, invoking British offices to ac-
quaint Bilbao Harbor authorities with
the release demand.
(Reports through France, however,
indicated the Koenigsberg commander
went ashore at Bilbao to demand the
release)
Throughout the tension, it was dis
closed, Baron Konstantin Won Neurath,
the German foreign minister was ad-
(see BERLIN, Page A-3.)