641.116/2736

The British Embassy to the Department of State

Reference is made to the British Ambassador’s communication to the State Department of September 18th, 1940, on the subject of importation of cotton into the United Kingdom.

The British Government will make no announcement about their further purchase programme of United States cotton until after the end of October. Nevertheless importers in the United Kingdom will have to be informed in accordance with the usual practice how much cotton they will be allowed to import during October. It is proposed to announce that shipping space in October will be provided for 15,000 bales of American cotton and, later, that similar provision will be made in November. This would cover the 15,000 bales mentioned in paragraph 2 of the earlier communication referred to and 14,000 bales for which licences were issued for shipment in June, July and August but for which shipping space in practice could not be found.

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The proposals to subject to licensing the use of all foreign cotton will have to be announced very shortly and importers may infer that further restrictions of imports from the United States may be contemplated, but as explained above no announcement to this effect will be made in the next few weeks.