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I am not sure this would clear up the dispute, but I worked for a company years ago in New Jersey the owner / president of which left Germany as a child with his (Jewish) family in 1933 upon Hitler becoming Chancellor. They lost everything but the clothes on their backs. So by 1935 I would think there was quite a lot of high quality confiscated art available to Nazis and their sympathizers (I'm talking about you, Mr. Hearst) even if the concentration camps weren't fully operational.

I am supposing the owners of the art mentioned in the article were not clever or lucky enough to get out in '33. By '35 the US was no longer as accepting of Jewish refugees from Germany (thanks, FDR) and the Nazis had also tightened things up, deciding apparently it was preferable to isolate, humiliate, rob, and kill Jews rather than letting them leave.

The guy I'm talking about, by the way, was named Otto (I won't include the family name) and he changed it to Jack when, in a packed office in Manhattan three days after Pearl Harbor, the recruiting sergeant told him "there ain't no Otto's in the US Army". He later on was pushed through OCS, and became an intelligence officer with Third Army on Patton's staff. He had the photos to back up his story and at around 5'4" seeing one of him in line having his hand shaken by "Old Blood and Guts" at 6'4" is an image I will never forget.