611.6231/1002
The Secretary of State to the Ambassador in Germany (Wilson)
Sir: The Embassy’s despatch no. 3777 of December 15, 1937,75 concerning a project for the extension of the special system of cotton barter to the importation of oils into Germany, has been received and studied with interest and a copy thereof has been sent to the Treasury Department for its information.
In response to the request for comment contained in the final paragraph of the despatch under reference, I desire to mention for your confidential information that while the Department of State is interested in finding a means of returning German-American trade to a normal commercial basis it is felt that the Embassy should not become involved in the German system of barter. However, so long as Germany has its present system of control, trade must run along in strictly business channels and such business as can be consummated must rest on the business arrangements which American exporting interests can make with the appropriate German authorities and buying [Page 419] agencies. Any question as to whether such business arrangements would not be in accord with American customs law would be a matter for the American exporter to work out with the United States Treasury Department, this being the Department charged with the administration of the law.
This Government would have no authority to urge inclusion of any particular commodity in barter trade with Germany and it is felt that an indefinite extension of such barter arrangements would handicap the Trade Agreement policy.
Reports furnishing information of the nature embodied in the despatch under reference are always useful and welcome, and it is hoped that the Embassy will continue to report such projects or developments as they come to its attention from time to time.
Very truly yours,