Note Tells London Sea PolicyPenalizes American Nationals;
Russia Faces Indemnity Demand
By Judson BaileyWASHINGTON, Dec. 8 (AP)—The United States disputed Friday Great Britain's right to seize German exports indiscriminately and also served notice that Russia would be held liable for any losses suffered by Americans as a result of a blockade of Finland.
The reservation of American rights under- Britain's expanded' blockade of Germany was lodged when the American embassy delivered to the British foreign office a note contending that it was a violation of international law for Britain to stop German exports to the United States through neutral ports.
The note told Britain that the measures of a belligerent "may not rightfully be carried to the point of enlarging the rights of a belligerent over neutral vessels and their cargoes, or of otherwise penalizing neutral states or their nationals in connection with their legitimate activities.''Reserve All Rights
As to Russia's .blockade of. Finland, Secretary Hull said at his press conference that this government, would make reservations of all rights to damages or compensation for any injuries to or interference with American rights or interests. Each such case, he said, would be dealt with as it arose.
The note to Britain was based both on points of international law and on practical considerations.
The latter were two:l_"In many instances orders for goods of German origin have been placed by American nationals for which they have made payment in whole or in part or have otherwi.se obligated themselves."
2—"In other ' Instance* the goods purchased or which might be, purchased cannot readily, If at all, be duplicated in other markets."
The state department said Britain would have to justify interference with neutral vessels by basing Its action on "some recognized belligerent right." The department conceded three rights:1—Where "the vessel in carrying contraband of war to an opposing: belligerent;
2—"In otherwise engaged in some form of unneutral service; or
3—"Hass broken or is attempted to break an effective blockade at any enemy port."
By Kirke L.. SimpsonAssociated Press Staff Writer
The world spotlight will turn from the battle fronts of Europe's two wars Saturday when the League of Nations council meets in Geneva to weigh soviet Russia's assault on her tiny neighbor, Finland.
Not since imperial Germany sent its armed legions swarming into small Belgium in 1914, brushing aside as "scraps of paper" the solemn treaties which barred the way, has there been such a chorus of world sympathy for the attacked and of world denunciation for the attacker as has arisen since the Russian invasion of Finland.
Hungary ActsTo Protect
At Feverish Rate
BUDAPEST, Dec. 8 (*)—Fortifications are being constructed at top speed in the Carpathian mountains, by Hungary as the countries of southeastern Europe watch soviet Russia's campaign in Finland for an indication of what their own fate may be.
The mountains form the new frontier between Hungarian Ruthenia—the easternmost province of Czecho-Slovakia before fi that republic's dismemberment—and the Russian-occupied part of Poland.
Cement is almost unobtainable in Budapest, because of the defense work.
A strong feeling runs through southeastern Europe that if Russia should attain her ends in Finland she may turn in this direction in the spring.
Sympathetic of Finns
Steps therefore are being taken to meet any such possibility. Sympathy for Finland has been exhibited throughout the region, especially by the Hungarians, who, in addition to strong anticommunist leanings, are racially related to the Finns and have maintained cultural contacts with them.
U. S. Hits British, RussianHigh Seas Blockades
Note to London Says Her SeizuresPenalize American Nationals