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GERMANS PONDER RETALIATION BERLIN, Germany, May 18. — Germanys government considered immediate retaliation against the new Anglo-Turkish defensive agreement today, following the return of Franz Von Papen to Berlin from his new post as ambassador to Turkey. Von Papen, sent to Ankara only a few weeks ago to prevent Turkish adherence to the Anglo-French anti-aggression front, was virtually recalled by Chancellor Hitler. German industrial quarters understood the Reich may cancel the 150,000,000 marks credit promised Turkey under a recent German-Turkish understanding. Such cancellation would halt delivery of German war materials to Turkey. Nazi circles revealed the Italo-German military alliance, to be signed Monday, has no limitations as to Italo-German mutual aid. While both Germany and Italy wish to attain their aims peacefully, it was explained, the new pact calls for full unity of defensive or offensive action by the axis partners in the event either is deemed to have been attacked. Hitler will return to Berlin over the week-end to entertain Italian Foreign Minister Count Galeazzo Ciano, who will sign the pact for Italy.
