The Secretary of State to the Ambassador in Great Britain ( Page )

[Telegram]

2739. Your 3586, January 15. No evidence that Department assured British Government in dyestuffs application that cotton had been sent to Germany in payment for dyestuffs or that Department was informed of character of representations made by Burr to British authorities at time of issuance of dyestuffs permit. Owing to discovery by Department that permit was issued by Foreign Office on misconception of facts in regard cotton, attention of the British Foreign Office was called to this fact in 2644, December 28, with suggestion that original permit be canceled and permit for American Trading Company for two shipments to be paid for in cash by said corporation be issued as substituted. No assurances that Germany will grant export permission, but dye situation at present so critical owing to need in industries using dyestuffs that whole country and Congress greatly wrought up. Heretofore onus rested on Germany on ground permit for some dyestuffs already issued by Great Britain. This can not continue unless permits requested by Department be issued. Dyestuffs to be assigned to Secretary of Commerce for distribution through Republic Trading Corporation, which agrees to fair distribution. Department has seen waivers of Mitchell and Burr and statements from five associations comprising the textile alliance that this arrangement will be satisfactory.

It is intimated to Department that Germany may allow these two shiploads owing to fear of tariff legislation. Therefore and because of foregoing, especially try to obtain permit at once. Also recall to Foreign Office assurances given by British Ambassador to Secretary of Commerce that materials necessary to American industries will be allowed entry. This should include dyestuffs, cyanide application now pending for Roessler and Hasslacher Chemical Company, and Mitchell-Bissell application for porcelain guides. Public feeling and Congress now tense over general trade interference, which quick action on these cases would relieve to some extent. Haste necessary as Congress wishes pressure brought on Germany for shipment of dyestuffs, believing the fault entirely with that country. Department therefore needs assurance of British permit immediately.

Lansing