Evening star., 1940-12-29
Wenes F|at|y Denies
Stories He and Hull
Are in Disagreement
. Accounts of Purported
$100, ,000, 900 Credit to
Spain Draw Statement

Spain Draw Statement
! Reports of fundamental differ.
,nces between Secretary of Stat
4dull and Undersecretary Sumner
Welles were denied by Mr.. Welles
yesterday in statement which he
said he hoped will do something te
put an end 10 them"
+ He made the lengthy statement at
press conference when asked foI
comment about reports published In
the Washington Daily Merry-Go
Round. newspaper column written
by Drew Pearson and Robert S
Allen, that he had prevailed against
a purported proposal for a $10O ,OOo,-
900 credit to Spain.
The story published in the column
December 20 and repeated in part
yesterday after denials by both Mr..
Hull and Mr.. Wehes, reported that
James C. Dunn, State Department
adviser on political relations, had
persuaded Mr.. Hull such a loan
should be, granted. 1t alleged that
Mr.. Welles' opposition resulted in a
compromise for Red Cross food re-
lief to Spain Both Mr.. Hull and Mr.
Welles said the purported S100000,-
30 credit never was considered.
Formal Denial Made.
The text of Mr.. Welles' press con-
ference remarks, categorically deny
ing the Merry-Go-Round reports
and declaring there never has been
the slightest important difference of
opinion between Mr.. Hull and my
self" later was incorporated in for
nal announcement by the State De-
nartment. This announcement fol-
lows:
At the Department of State press
conference this morning. a CORE
-pondent asked Undersecretary
-Telles the following question:
Mr.. Secretary. the Merry-Go-
2ound Column this morning con-
tains repetition of part of story
concerning differences between your
self and Secretary Hull which you
both have denied last week, and this
story today states that it was Mr..
Dunn who apparently persuaded Mr.
Hull that Gen. Franco should get
S100000,000 credit from the United
States and that you prevailed against
it. In view of previous denials that
such a matter had been discussed,
have you any further comment?"
Welles' Reply.
Undersecretary Welles replied as
flows:
Il am very glad that question has
zen asked, because I want to reply
it this morning in some detail.
Il think you gentlemen recognize
lat durine these past eight years
: have never made any comment or
eference to anything that has been
in the press that related
. myself, but on this occasion I
eel have to do so, because it is not
My my own personality itself that
: involved but because the Depart
nent of State itself is involved.
"All of you gentlemen are familiar
With the very full statement which
The Secretary of State made on this
subject a few days ago, and I hope
it has been widely published. Not
withStanding that complete. cate
~orical denial this story is published
this morning which makes good
many further llegations-some of
them new. some of them reafhrma-
ors of matters already officially
Genied. I am not going to comment
in full upon them all, but I do want
70 say most emphatically that what
ever policy is pursued by this Gov
in regard to Spain, such
~olicy has nothing whatever to do
18th the internal situation in Spain.
Our policy does not take into ac-
count the internal affairs of Spain
The other details given here I cam
not deny too categorically. I have
been present, I think, at practically
every conversation that has taken
place in the Department in regard
to Spanish policy. None of these
reported in this ar
ticle has even taken place
= Letter to Pearson.
"On December % I wrote this let
T to Mr.. Pearson:
'"On Friday, December 20, the
: Terry Co. Round column carried
story alleging that there had existed
among the higher officials of the De-
partment of State serious divergen-
cies Of opinion with regard to
purported plan for the extension
Of a S100000,000 credit to the Span
.sh government The story further
: lleged that Secretary Hull, upon
the urgent recommendation of cer-
Jaln of the officials of the depart,
ment, was favorably disposed to the
extension Of such credit and tfar.
I thereupon communicated. Win the
President, then absent Oh his recent
cruise in the Caribbean, and OBJ
tanned from the President a direc-
ion that the project be radically
modified
AT no time has the Department
# State or any high official of the
approved or recon-
mended any project for the extern
sion of a 100000 credit to the
Spanish government. No such prof.
ect has been under consideration.
At no time has there been the
5lightest divergency OF opinion be-
Teen the officials of the Depart
lent of State with regard to the
olicy to be pursued towards Spain.
It no time has there been the slight
st difference of opinion between
he Secretary of State and myself
With regard thereto. I never COM
nunicated with the President during
lis recent cruise in the Caribbean
tn regard to any aspect or phase
the policy of this Government
ward Spain.
Completely Untrue.
The story to which I have
erred is consequently completely
true.
'"At a critical y,oonoa or n, the I,ic