Evening star., 1938-12-25
Aggressive Americanism Meets
Challenge Of Dictator States
Co Signal Given to Arm Against Encroachment
by Germany, Japan and Italy and
Preserve Monroe Doctrine
By Joseph II. Baird.

as the year ends, the TWO great FaCNiC
powers face each other challengingly,
holding completely opposite views as to
their rights and interests in the Orient,
views which neither side seem prepared
to surrender.
While the dispute over rights in China
was in progress. Washington and Toxic
appeared to be headed toward new
naval race Under the London naval
treaty of 1886 the United States and
Great Britain agreed not to build battle
ships larger than $4,000 tons. In view
of the fact, however that Japan refused
to sign the treaty, they added an "escaia-
tor clause permitting escape from this
section of the agreement if Japan, the
third-ranking naval power, should build
ships greater than the limit they had
set for themselves.
For some months reports had been
reaching Washington and London that
Japan was constructing, or planning to
construct, 45000-ton capital ships. In
January Great Britain and America
asked Japan if this we're true. Toxic
quibbled and refused to give clear-cut
answer. AS result, the two English
speaking powers agreed to evoke the "es
calator clause" freeing them to match
japanese construction ship for ship.
While American-Japanese relations
were strained almost to the breakina
point, relations between Washington
and Berlin, too. moved from bad to
contori,1u orol1rI tIoroo
Germany's refusal to assume RESPONSE
bility for Austria s 100000 debt to the
United States, after it had taken over
the smaller country bodily; German
trade and political policies in Latin
America, and the mistreatment of Jews.
Vague on Austrian Debts.
In conquering Austria, Germany took
over all the assets of the state and
transferred its government to Berlin. 1t
is a well-recognized principle of interna-
tional law that new regime inherits not
only the assets, but also the liabilities OF
its predecessor. Despite this, Berlin dis
claimed legal responsibility for Viennas
debt to America and, although limiting
that it might at some time, for prag-
matte reasons, pay the obligation, 1t Of
fered no satisfactory plan for doing so.
This led to an acrimonious exchange of
notes between the two powers.
At the same time, reports pouring into
the State Department from its repre-
sentatives in South and Central America
indicated that Hitler was seeking to gain
fnnthn1I NJ tho Pin Gro pSo-o
potential, if not actual, violation of the
Monroe Doctrine Nazi cells. reports said
were being established in various Latin
American countries. High-poWered Ger
man radio stations were flooding the
Latin Americans with pro-Nazi and anti
democratic propaganda.
At the same time, Germany, by barter
and dumping. was threatening American
markets south of the Rio Grande. Ger
man purchases in the Latin American
markets were being made entirely in
blocked marks which could be spent only
in Germany, where goods were being Of
fered Latin American purchasers far be-
low world price levels. During the year
the economic struggle between America
and Germany for the South American
market became increasingly bitter as
United States businessmen were under
sold by methods which could be en-
ployed only in totalitarian state.
The greatest bitterness between Amer
lea and the Fascist powers, however. was
aroused by their inhuman mistreatment
of the Jews. First Germany, then Italy
passed series of anti-Semitic DEGREES.
The campaign reached its apex in Ger
many in November when thousands of
Jews were arrested and fine of S400,-
100000 was assessed against German
JeWry as a whole because of the assas-
sination in Paris of a German diplomat
by fanatical Polish-Jewish boy. Italy,
meanwhile, decreed the expulsion of a
large part of its Jewish population.
Nazi Press Assails Roosevelt.
President Roosevelt termed the ex-
cesses in Berlin unbelievable" in mod
ern age and thus brought down on his
head an angry assault by the entire
German press. The President imme-
diately summoned Ambassador Hugh
Wilson from Berlin to report on condi-
tions. BY reply, Reichsfuehrer Adolf
Hitler called home his Ambassador in
Washington. Hans H. Dieckhoff. to ex-
plain Americas singular attitude" AS
the year ends, relations between the two
powers are strained and it is not known
when. if at all, the ENJOYS will be re-
turned to their posts.
Meanwhile, the United States informed
Italy in diplomatic note that it expected
American Jews there to receive the same
treatment as all other American citizens.
Rome replied evasively that American
Jews would be treated as we'll as any
other Jews. The State Department con-
sidered this answer entirely unsatisfac-
tory.
While these disputes were in progress
a New York court found a German ring
of spies guilty of attempting to steal
American military information
The real impetus to President Roose-
velt's rearmament program. however,
was given by Europe's narrow escape
from general war, which undoubtedly
would have involved America, in late
August and September.
Demands Made on Prague.
Despite Hitler's frequent statement
that Germany had no territorial designs
IN Czecho-Slovakia, Der Fuehrer, acting
under the plea of saving the Sudeten