The Secretary of State to the American Ambassador.

[Telegram.]

You are instructed to represent to Bundesrat that potash contracts made in good faith in Germany by Americans at solicitation of responsible mine owners, are now sought to be rendered valueless by heavy tax burdens devised and advocated by other mine owners, after ascertaining that certain German mine owners and Americans had agreed on prices and terms. You will urge that the parties to these contracts, made previous to December 17, 1909, be permitted to complete all their obligations as originally made, without imposition of tax provided in paragraph 26 of new law. You will also represent that the Department is convinced that the power to give such permission rests with Bundesrat under paragraph 46, and assumes that assurances given you by secretary for foreign affairs, upon passage of the law, to the effect that American contracts would not be invalidated, impaired, or affected, were meant in good faith and that no adverse decision is now possible.

Knox.