Rütten & Loening Verlag, a German distributer, had enquired about the likelihood of an interpretation of The Hobbit, and got some information about his family and Aryan-ness.
Tolkien addressed that he thought the matter of his Aryan-ness was not what they were after. They would much rather have gotten a kick out of the chance to know whether he was Jewish. He let them know he was not - but rather he lamented that he had no Jewish blood. He proceeded with expressing that however he was an Englishman for a few eras, he conveyed his German surname with pride, even in World War I. In any case, if governmental issues and writing were so blended, there strength come a period when he would not be glad for German legacy.
Tolkien then refused to let a publisher that only follows the laws of the country to publish his books.