Fortunately, we have Tolkien's opinion on the subject in his own words, which came up when they tried to have a Berlin publishing house do a German translation of The Hobbit. He had already told his regular publisher at Unwin that he was already against to start with, as he found the Nazi position "wholly pernicious and unscientific" and had been opposed to a German translation at all from the get-go put of respect for his many Jewish friends and colleagues. So when the prospective German publisher writes back asking him if he's Jewish, he basically responds "No, but I wish I was, since you're making the entire concept of Germany look bad, also your foundational myth is literally impossible, linguistically speaking":
Thank you for your letter. I regret that I am not clear as to what you intend by arisch. I am not of Aryan extraction: that is Indo-Iranian; as far as I am aware none of my ancestors spoke Hindustani, Persian, Gypsy, or any related dialects. But if I am to understand that you are enquiring whether I am of Jewish origin, I can only reply that I regret that I appear to have no ancestors of that gifted people. My great-great-grandfather came to England in the eighteenth century from Germany: the main part of my descent is therefore purely English, and I am an English subject — which should be sufficient. I have been accustomed, nonetheless, to regard my German name with pride, and continued to do so throughout the period of the late regrettable war, in which I served in the English army. I cannot, however, forbear to comment that if impertinent and irrelevant inquiries of this sort are to become the rule in matters of literature, then the time is not far distant when a German name will no longer be a source of pride.
Your enquiry is doubtless made in order to comply with the laws of your own country, but that this should be held to apply to the subjects of another state would be improper, even if it had (as it has not) any bearing whatsoever on the merits of my work or its sustainability for publication, of which you appear to have satisfied yourselves without reference to my Abstammung.
I trust you will find this reply satisfactory, and
In conclusion, Tolkien to Nazi Germany: "I ain't ya boi, and this story is explicitly Not for you."