The Eureka Mirror

Hull Sends Debt Note to Nazi Germany

Washington, June 29.—The United States protested today against Germany's blaming the reich's financial plight on Nazi policy.

Secretary of State Hull handed the German charge d'affaires a note last night which was the first American move in a diplomatic campaign to modify drastic provisions in the moratorium whereby Germany ended interest payments on external debts.

The United States recognizes that Germany's ability to pay has been limited as a shortage of foreign exchange, Hull said, but he hinted that if certain policies, allowing Germany to pay.

Other points Hull emphasized were:

1. Anxieties over German policy have led many foreign creditors to withdraw credits from Germany.

2. Germany has repurchased German bonds in the United States at bargain prices. Creditors insist this money should have been used to pay interest.

3. Germany has brought much military material out of funds available to pay debts.

"It has generally been judged" the note said, "that it is the obligation of a debtor government to so direct its policies that sums required to meet external obligations receive priority over all but the essential needs of the government."

The American note protested vigorously against any plan under which Germany, in return for trade agreements would grant nationals of any other countries preferential treatment.

Berlin, June 29.—A warning that boycott on German goods would only force this country toward complete economic independence came today while officials studied a United States note protesting the debt moratorium and blaming Nazi policies for it.