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If Germany is compelled to pay a higher price for
cotton, the cost of German cotton manufactures for 
export will increase. In consequence, either the German 
Government will be compelled to subsidize the export of cotton
textiles, or else German exports of cotton textiles will
decline. In the first case, Germany would be engaged in
competitive dumping in the world market, including our own;
in the second case, she would be compelled to buy less from
abroad, including American products.
 
 
8. Despite the commitment on the psrt of the German
Import Company to buy 800,000 bales, there is no assurance,
under the plan, that this amount of cotton will, in fact,
be sold. This is true for the reason that while the German
Import Company may be prepared to buy the cotton, American 
cotton exporters will not sell the cotton unless they can
get dollar payments. The plan does not insure dollar
payments for the reason that should the Export-Import
Bank be unable to sell the accumulated marks at $.2082 or
more, no dollars would be available in the Cotton Shippers
Exchange Fund, from which American cotton exporters
could get dollar payments.
 
 
9. There is no assurance that the American cotton
exporter will, in fact, get the prevailing U.S. market
price in terms of dollars for his cotton. Should it turn
 
 
out