-2-                             
 
 
American prices and seriously affect those American 
industries which would be subjected, under this plan, 
to sharp German competition.
 
 
7. On top of her gross discrimination of American 
nationals, this deal would make a very good trade 
bargain for Germany, but with little gain and large 
risks for the United States.
 
 
8. There is no assurance that the suggested
800,000 bales can, under the proposed plan, be sold 
to Germany, since cotton exporters might not, in fact, 
be able to get dollar exchange.
 
 
9. It should be noted also that even though the
plan does not break down, there is no assurance that 
American cotton exporters will not be forced to sell 
cotton at a loss.
 
 
10. Attention should, moreover, be called to the fact 
that the United States Government, through the Export-Import 
Bank, stands to suffer what may amount to substantial losses.
 
 
11. If this plan goes through, would the Treasury
be able to apply the anti-dumping law to similar deals 
privately arranged and privately financed?
 
 
12. The proposed plan is almost certain to engender extreme 
resentment among that large section of the American public 
which is violently opposed to the Hitler regime.
 
 
 
A-S/T:AHH:BLC