The Washington times., 1937-01-02
TWO L0YALIST
FREIGHTERS
SEIZED
Reich Demands Ship
Taken by Basques
Be Released
Continued from Page u

CONTINUED from Page II
waters outside the Portuguese terri.
torial zone.
It was also confirmed that the
6,O0O-ton cruiser Koenigsberg fired
a siX-inch shell across the bows OF
the freighter Soton in the Bay OF
Biscay. The naval command could
not early today substantiate ap-
parently reliable foreign lnforma-
tion that the crew of 33 Of the
Soton had been made prisoner,
and the badly-damaged Soton
taken to the insurgent port OF
Pasajes.
Held in Reprisal
The foreign office made it clear
that the Aragon would be held
prisoner until the cargo Of the
Palos is given up.
Sharp protests will no doubt be
made by the loyaliSt government
and equally doubtless they will be
ignored, for the Reich no longer
recognizes the Madrid Valencia
government.
The naval command said the
Soton was allowed to continue"
after one shot was fired across
her bows off Santona, between
Santander and Bilbao, but the rea-
son was not known. The Aragon
was captured in the Gulf OF Gas
cony.
Local Spanish loyalist authori-
ties Immediately demanded that
the two ships be freed at once.
Thus far Spain has, however,
threatened no action by her anti
quated navy.
Germany seemed somewhat
taken aback today, however, by
the speed with which the 1talo-
British accord on the Mediterra-
mean was signed in Rome.
The government communique
announcing the first reprisal said:
"After the Red rulers in
Bilbao refused to surrender to
the German cruiser Koenigsberg
the (Spanish) passenger and
part of the cargo retained from
the steamer PalOS, the German
government, as previously an
nounced, saw itself compelled to
enforce its demands through
cOuntersmeaSureS.
ACT OF PIRACY
"In pursuit of this necessity
to defend German sovereign
rights against an act Of piracy,
a red Spanish steamer has
been seized temporarily by
the German naval forces in
Spanish waters.
at has been definitely as
certained that the PalOS was
seized far outside the terri
torial waters of the Spanish
coast, namely, % miles north
east of Cape MachichacO."
The Aragon presumably will
not be taken into insurgent
port, but will be guarded at sea
until the German demands are
fulfilled. If the Spanish govern
ment declines to release the
cargo of the Palos, which was
allegedly contraband. the Aragon
will likely be turned over to
France which would amount to
German intervention in the war.
Drastic action by Germany coin
cided with the early retirement of
Admiral Forester, commander of
the fleet, who repeatedly quarreled
with Reichsfuehrer Adolf Hitler
over Spanish policy. The seizures
took place on the day Vice Ad.
miral Rolf Karls took command.
Karls, early in the civil war, ra.
diced Spanish ships that tried to
hold up the Steamer Kamerun
that force would be met with
force"
Europe Alarmed
Foreign circles were excited to-
day over the outcome of conver.
sation which the French and Brit
ish ambassadors, pressing for Ger
man acceptance of a ban on vol
unteers" for Spain, had with
Baron ConStantin Won Neurath,
foreign minister.
Germany would approve super.
vision Of the Spanish border, the
foreign minister said. but under
no circumstances would the Reich
tolerate establishment of a bolshe-
vik regime in Spain.
If necessary, according to one
reliable source, further German
naval reinforcements will be sent
south to help patrol Spanish
waters. It was made clear, how
ever, that foreign ships will not be
affected by any blockade of Span
ish ports.
Smelling Of the Soton was barred
for the first time today in an Off
cial communique saying:
"The cruiser KOenigSberg, in
the course of measures taken on
account of the unlawful proce-
dure of Spanish warshipS against
German steamers, asked the
Spanish steamer SOtOn to heave
to on January l.
"Since the steamer did not
obey the order to halt, the KOen-
lgsberg first fired two blank
shots, and, when the steamer
still refused to heed the warning,
several actual shells were
dropped In the vicinity of the
steamer.
Ship Runs Aground
"In attempting to escape, the
SetOn ran aground near the
port 0f Santana and IL was