CONSIDERATIONS RELATIVE TO THE PROPOSED           
 
                     GERMAN COTTON DEAL                     
 
 
1. The plan would seriously endanger our trade
agreements program.
 
 
2. If we enter into a special preferential arrangement 
of this character, other cotton export countries, like 
Brazil, will be compelled to seek similar preferential 
arrangements in the German market. Brazil has already 
expressed grave concern with regard to this proposal.
 
 
3. If German fertilizer is given preferential treatment 
in our market, such as thls plan would orovlde, Chile 
would be compelled to dump nltrates in our market. 
Representatlons to this effect have already been made 
by the Chilean Ambassador. Will we be able to apply the 
antidumping law against Chile while admitting German 
fertilizer at prices below the offiolal reichsmark rate?
 
 
4. The plan would discriminate against other gold standard 
countries and given special preference to German exports 
to the United States through the sale of reichsmarks at a 
discount. If we seek and grant preferential treatment, can 
we seek equality of treatment for our commerce and nationals 
from other countries?
 
 
5. The proposed plan is a device to undo, in part,
the devaluation of the dollar.
 
 
6. The sale of German marks at a considerable discount 
is likely to exert a depressional Influence on
 
 
American