Evening star., 1938-12-20
Nazi Diplomat
Sees We||es;
Silent on Notes
Call at Department
IS First One Since
Dieckhoff Left
BY the Associated Press.

BY the Associated Press.
DR.. Hans Thomson, charge
d'affaires of the German Embassy,
today called on Sumner Welles,
Acting Secretary of State, to discuss
what the German diplomat said was
a matter of relative minor impor-
tance compared to the questions of
Austrian debts and reassurances of
nom discriminatory treatment to-
ward Americans.
DR. Thomson said he was not pre-
pared to discuss these two principal
problems, which have complicated
German-American relations because
Germany has not replied to the
satisfaction OF the State Department
to several recent American notes.
Later it was announced that DR..
Thomson had brought to the State
Department notification that all
inheritance credits due Americans
on the estates of persons deceased
in Germany hereafter will be
transferred to the benefciaries in
full
This clarifies one of the lesser
points OF friction between the two
governments. Americans heretofore
have not been able to collect their
full inheritances on German estates
because of exchange restrictions for
bidding money to leave Germany.
DR.. ThomSen's call was the first
at the State Department by any of
the German Embassy staff since
Ambassador Hans Dieckhoff bade
officials farewell on leaving for Ber-
lin last month.
L. S.-Turkish Pact Completed.
German-American relations we're
subjected to further tension as the
State Department completed it's
first reciprocal trade agreement in
the Near East. where the Reich has
been making overtures.
The treaty, with Turkey, is ex-
pected to be signed in January. and
American concessions in it will be
extended to all countries except
Germany. Germany is not included
in its INSTRUMENTATION clause
because, officials say, she discrimi-
mates against American trade.
Conversations looking toward an
other trade pact were begun when
Stanley M. Bruce, Australian high
commissioner to Great Britain. con-
ferred with a number of officials
here. Secretary of State Hull re-
Gently concluded an agreement with
Great Britain and renewed one
with Canada, and hopes to sign
treaties with other British domin-
ions soon.
Mr.. Bruce called on President
Roosevelt at the White House this
morning and later had an engage
ment for lunch with Secretary of
the Treasury Morgenthau. He de-
/ clined to discuss what he spoke Of
with Mr.. Roosevelt, but said that
while he had nothing to do with the
negotiation of trade treaty he was
talking to as many officials here as
he could in order to take the Amer
lean atmosphere" back to Australia.
Meanwhile. Secretary Morgenthau
announced renewal of a financial
agreement with China which State
Department officials were careful to
explain was a purely commercial and
| legal arrangement.
The agreement provides loans to
China of an undisclosed amount of
dollar exchange which will be uti-
lized with security provided by
Chinese gold on deposit here.
The department said Japan had
presented no official protest or in
quiry about recent extension of
s25 100000 credit to China by the
Export Import Bank, and indicated
none was expected. Hachiro Arita,
japanese foreign minister, said the
bank credit would lead to prolon-
cation of the Japanese -Chinese)
conflict
In Toxic yesterday he termed the
loan Dangerous
With bland who's at war?"
Secretary Morgenthau asserted that
no question of neutrality was in
volved in the credits to China.
Gapan has not formally declared
war;
The Treasury head described the
Chinese loans as credits to a
friendly nation" and said any other
friendly nation" except war debt
defaulters barred by the johnson
Act, also could apply" for loans.
THE door is wide open," he de-
clared with smile. This was a
paraphrase of the "open door doc
trine, which falls for equal CONNER
cial opportunity for all nations in
China. The japanese. over the OBJ
jections of the United States.
threaten to revise this doctrine.
After declaring any qualified ma
ton could apply here for loans, Sec
retary Morgenthau added that the
right to apply was no guarantee that
all requests would be granted
The State Department was not
consulted regarding yesterday 5
Treasury action, it was said.