GERMAN SHIP SEIZED

Press, Volume LXXII, Issue 21976, 28 December 1936, Page 7

GERMAN SHIP SEIZED

♦ WARSHIPS STEAMING TO BILBAO ULTIMATUM TO SPANISH GOVERNMENT “SITUATION MAY BE VERY GRAVE'” UKITF.D PRESS ASSOCIATION-COI’VRIOHT.) (Received December 27, 11,30 p.m.) BERLIN, December 27. Germany has issued an ultimatum to the Spanish Government demanding the release of the German freighter Palos, which was seized outside Spanish waters—although the cargo is alleged not to be war materials—and threatening reprisals if the demand is ignored. An official announcement says: “Spanish Government warships confiscated the German steamer Palos, belonging to the Oldenburg-Porlu-guese Company, outside Spanish territorial waters near Bilbao. The Palos, which was cn route from Hamburg to Spanish harbours, has been taken to Bilbao. The cargo, according to reliable evidence, consisted neither of direct nor indirect war material. “The necessary measures for the release of the steamer have been begun. It is expected that before these are enforced the Reds will release the steamer with her cargo intact, and the three passcngc.'s.” It is believed that German warships are proceeding at full speed to Bilbao. Nazi spokesmen agree that the dispatch of the warships makes a demonstration the most likely step. If the Palos is surrendered intact, the affair may pass off without incident; but if the Reds harm the vessel or the people aboard the situation may be very grave. The Palos is of 977 tons. According to a Spanish report, a cargo of contraband for the insurgents is now being unloaded at Bilbao. A French banana, boat going to Dakar reports that a Spanish patrol boat'fired three warning shots and ordered her to stop near Point Carnero. “We signalled our name, lit up the flag, refused to slop, and continued the voyage.”