File No. 611.627/305.
The Secretary of State to the American Ambassador.
The fact that the potash law operates to transfer vast sums direct to the imperial treasury through levies upon potash under American contracts prior to the pasage of the law, while sales by the syndicate pay no penalty tax into the imperial treasury, is creating a widespread sentiment decidedly unfavorable to Germany.
You are instructed to press for an early reply to the Department’s telegram of December 20, and to state whether the text of that telegram has been brought to the attention of the Emperor.
You will say to the chancellor that action by the Bundesrat which does not equally relieve the American contracts from penalty taxes, and provide for refunding the millions of dollars taxes now accrued and paid, will not satisfy the President that unfriendly legislation was not intentional.