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On the other hand, shouldwe refrain from the proposed German 
cotton deal, Brazil has indicated willingness to proceed 
along the lines Of our original proposal.          
 
 
3. The concern of the representatives of the Chilean
Government with respect to the discrimination against their
nitrates in case the German fertilizer is given preferential
treatment, as would be the case under the proposed cotton
deal, is indicative of the character of protests which may
be expected from other countries.
 
 
4. How will other gold standard countries look upon a
plan which discriminates in favor of the German mark; which
in some measure reestablishes the old dollar value of the
mark while at the same time gold currencies are selling
at the devalued dollar rate. If the plan is limited to
Germany, it would amount to definite discrimination in
favor of German exporters as against exporters of gold
standard countries. If it is argued that we might offer
to make a similar arrangement with any of the gold standard
countries, it would still be true that such a plan would
not, in fact, give equality of treatment to all countries
unless, indeed, each of the gold standard countries were
as urgently in need of the cotton at premium prices as is
the case with Germany.
 
 
5. The proposed plan is a device to undo, in part, the
devaluation of the dollar. Whatever advantages have accrued
to the United States because of devaluation, whether in
 
 
terms