File No. 611.627/344.

The Secretary of State to the German Ambassador.

My Dear Mr. Ambassador: A week ago when by your excellency’s handing me a communication in response to this Government’s representation in the potash case made some weeks ago in Berlin the affair passed into a stage where active and expeditious negotiations became quite possible, you agreed with me that arbitration between the parties to the contracts would be unnecessary if the Americans interested should avow liability, and you were kind enough to undertake to endeavor to ascertain at once by telegraph, as a basis for further discussion, how much below the syndicate price of 1909 the Imperial German Government at this time saw its way clear to suggest as a price at which the American contracts could be met under the mode of adjustment suggested by your Government.

In recalling your attention to the keen desire of this Government to proceed with the utmost expedition to seek the earliest practicable settlement of the vexatious question now become the subject of diplomatic negotiation between the two Governments, I bespeak your excellency’s earnest efforts to that desirable end.

I am, etc.,

P. C. Knox.