File No. 165.102/747
The Secretary of State to the Ambassador in Great Britain (Page)
2644. Your 3407, December 17. Department has ascertained that permits were issued to Mitchell on misapprehension of facts. No cotton was shipped into Germany in direct payment for the specific dyes in question. Republic Trading Corporation explains that it believed cotton shipments mentioned in connection with granting of permits referred to balance of trade and not to direct payment. Correspondence in possession of Department would indicate bona fides of this explanation as far as Republic Trading Corporation is concerned.
In view of circumstances, request cancellation of permit, in which request Republic Trading Corporation joins. Inform Foreign Office that owing to urgent need for dyestuffs this Government would appreciate issuance of replace permit for equal amount of German dyestuffs to be paid for in cash if German embargo relaxed in favor of these or other dyestuffs. Special need exists for replace permit as original permit has heretofore formed basis of request to German Government for relaxation of embargo and Department desires to urge that request without changing basis.
Issuance of permit would favorably affect attitude of American public.