-2-                             
 
 
allotted to the United States (this is measured by
reference to previous trade). Thus, if we were given 
an increased opportunity flor lard export, it would 
merely be restoring a part off the trade opportunities 
we are entitled to under the treaty.
 
 
(3) If the German Government finds that by
harsh and discriminatory curtailment of shipments
of American goods, it can secure as a consequence
special concessions in the American market, it is
almost certain that existing curtailment will be
maintained and possibly extended with the German 
Government asking for special market opportunities or                                                  |
special credits.
 
 
(4) If we deal with the German Government on this basis, 
it is quite possible that other European countries will 
feel that Germany has gained an advantage and will seek 
to impose the same conditions for continuation of American 
trade. In short, dealing with Germany on this basis might 
open the way to having much of our trade deliberately shut 
off and then only having it restored for special and directly
 
 
compensating