The Foreign Trade Adviser of the Department of State ( Holder ) to the Assistant Secretary of the Treasury ( Peters )

Sir: The receipt of your letter of February 19, 1916, addressed to the Secretary of State, in further reference to the inspection of tobacco intended for exportation, is acknowledged.

I have recently had a further interview with Sir Richard Crawford in reference to this matter, and he informs me that in the course of a few days the British authorities are to issue instructions to the British consular officers in this country at various ports, instructing them to request that in shipments of tobacco an occasional bale or crate be opened by the United States customs authorities. The Embassy will notify this office before issuing such instructions to their consuls, [Page 509] so that we may request the British Embassy to inform exporters that such course is contemplated and that it can be done by the customs authorities of the United States but that it will be at the expense of the shippers. From the conference that you had with Sir Richard Crawford and me a few weeks ago, I presume that there will be no difficulty in arranging for such inspections, provided the exporters are advised by the British authorities that such action will be necessary if they wish to continue making exports and that we advise them if such inspections are made they will have to pay for them. Will you please let me know if I am right in assuming that this can be done by the Treasury Department? Upon receipt of the notice in question from Sir Richard Crawford or the British Embassy, I will at once advise you and we can discuss the matter further if necessary.

I am [etc.]

Charles A. Holder