BERLIN'S DEMAND

New Zealand Herald, Volume LXXIV, Issue 22620, 7 January 1937, Page 9

BERLIN'S DEMAND

KELEASE OF CAIiGO FINAL WARNING TO SPAIN THREAT TO SELL SHIPS By Telegraph—Press Association —Copyright (Received January (>. (>.."> p.m.) LONDON, Jan. r. A message from Berlin states that an official communique says the commander-in-chief of the German Navy in Spanish waters, RearAdmiral Carls, wirelessed an ultimatum through the cruiser Koenigsberg to the Spanish Government at Valencia demanding the release of the Spanish passenger and the seized cargo of the freighter Palos. If the Government does not comply by S a.m. on January 8 Rear-Admiral Carls threatens to sell the Spanish steamers Aragou and Marta Junquera and to place the proceeds to the credit of the Nationalist Government, which is the only one Germany recognises. Germany reserves the right to take new measures in the event of further acts of piracy. A message from Valencia says the I Spanish Government has decided to reject Germany's demand for the release | of the Palos' cargo and passenger. | The Morning Post's Berlin cor- ! respondent says the demand at first : was officially described as an ultimatum, ! but the term subsequently was with- ! drawn. Now it is described as being j "a filial warning to the Red pirates." | The Daily Telegraph's Berlin corrcsI pondent says the impression is growing | that the German naval forces around I Spain are working on a definite plan, i namely, to seize one Spanish ship daily until Germany has attained her ends. SEIZURE OF PALOS CASE FOR THE LOYALISTS JUSTIFICATION CLAIMED LONDON, Jan. 5 The Spanish Ambassador has handed ' to the British Foreign Office a Note advancing reasons for the legality of the seizure of the German steamer Palos, recapitulating the German reprisals and adhering to the refusal to agree to the "impositions" of the German admiral. The Note says these circumstances are likely to cause very grave complications should the Spanish Navv or Air Force intervene to prevent the intrusion of the German Navy. The purpose of the policy of non-intervention and the efforts to localise the conflict might thus be irreparably compromised. The Spanish Government, therefore, is leaving to the British Government s judgment the submission of its examination of the situation to the Non- ( Intervention Committee. AIDING THE REBELS HUGE COST TO GERMANY j PERILS OF THE ADVENTURE j LONDON, Dec. 30 j It is estimated that Germany's I adventure in Spain has already cost her j about £40.000.000. Though definite j figures are not available here, authoritative British quarters see no reason | to question this estimate. As the civil war drags on, the differ- j ence of opinion between tlie interven- j tionist Nazi chiefs and the more cautious military staff is becoming more acute. Some details have appeared in the Prague Volkszeitnng, whose special correspondent in Berlin says a quarter in close touch with the German Foreign Ministry informs him that Germany, by February, will have sunk £50,000,000 and that the adventure is likely to turn out badly for Germany. General Franco's "purahases" arc roughly £28,000.000 for army stores, all provided on credit by Germany because the rebel leader has nothing to pay with except blank cheques in the form of promises to meet Germany's colonial demands. The direct expenditure on the equipment and maintenance of the German troops in Spain is estimated at £3,750,000. Nazi Hotheads Urge Hitler On The German Ministry of Finance, the correspondent adds, calculates that a j soldier, with rifle and full equipment, j costs £l2 to £SO by the time he is ready to leave for Spain. The operations of German warships in Spanish waters are also a heavy burden on the taxpayer. The extra expenditure already incurred in maintenance and cruising exceeds £1,500,000. and to this must be added hugo sums I for staff expenditure, propaganda and other undisclosed expenses Part of this belligerent expenditure —more than £20,000,000 —must be paid with foreign exchange obtained on the strength of the assets of big German firms abroad. It is generally believed that the German general staff continues to oppose adding to Germany's existing responsibilities in Spain, whereas the Nazi hotheads are pressing Hcrr Hitler to go full steam ahead, conquer the country, establish General Franco as dictator, install German army units and an air force on the Franco-Spanish frontier, and secure the Spanish colonics as a further reward. General Staff Advocates Caution The German general staff considers that valuable lessons have already been gained by the operations of Germany's troops and the new mechanised units and aeroplanes in Spain, but that the present stage of Germany's rearmament, especially the shortage of officers and non-commissioned officers, and the brief period in which conscription lias been in operation, renders it imperative that Germany should delay a largescale military adventure. The general staff, further, believes that such a venture might mobilise Europe. Accordingly, Germany must await full preparedness.