-4-                             
 
 
is a special form of a tax on German importers designed 
to subsidize German exports, the tax In this case being 
limited to the importers of American cotton, the subsidy 
being applied to German exports to the United States. This 
subsidy takes the form of a sale of German marks to American 
importers at a discount, thereby enabling them to buy German 
goods at a favorable dollar rate.
 
 
 
A-S/T:AHH:BLC