-2- 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 |