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Military government weekly information bulletin
Number 101 (July 1947)

Cotton plan for Germany,   pp. 2-3 PDF (1.2 MB)


Page 3


studied recently by a group of cotton
experts from the United States who
toured the zone inspecting mills and
processing methods, and confering
with MG officials. The mission' in-
cluded Colonel Paul Cleveland, of the
War Department Civil Affairs Division;
Henry Koch, of the State Department;
Julius Schnitzer, from the Department
of Commerce; August Maffry and
George Galloway, both of the Import-
Export Bank; Benjamin J. Williams,
of the Pope Williams Company in
New Orleans; Sydnon Oden of the
Anderson, Clayton Company, Houston,
Texas; Carl F. Bartz of the American
Cotton Supply Corporation, in Dallas,
Texas; and H. C. Schuebeler, G. H. Mc-
Fadden & Bros.
THESE experts reached an agree-
ment with representatives of Brit-
ish and US Military Governments,
which provides for setting up machin-
ery to finance importation, processing,
and sale of cotton and textiles in the
British and US Zones.
This plan (which must be approved
by the American Cotton Supply Cor-
poration and the American Export-Im-
port Bank) provides for setting up the
American Cotton Supply Corporation
of New York, of which any shipper
of American cotton, who is a US re-
sident, can become a member. The
corporation will accept drafts for cot-
ton deliveries to the joint British-
American areas in Germany at Bre-
men or other German ports, if the im-
port has been authorized by the Joint
Export-Import Agency at Minden. Ger-
(Photo by BYERS)
Financial and cotton experts in Berlin for discussions with British and US
Military
Government officials relative to proposed general plan for the importation,
process-
ing, financing, and sale of cotton and textiles in the joint US/UK Zones.
Left to right:
Carl P. Bartz, American Cotton Supply Corporation, Dallas; B. J. Williams,
Pope
Williams Company, New Orleans; Paul Cleveland, War Department Civil Affairs
Division; Sydnon Oden, Anderson Clayton Company, Houston; August Mafiry,
Export-
Import Bank; Henry Koch, State Department; jH. C. Schuebeler, European Agent
G. H.
McFadden & Bros.; Julius Schnitzer, Department of Commerce.
man mill operators in the two zones
will arrange for imports from the
corporation through agents, after they
have received the license from the
JEIA.
The drafts which will be accepted
by the American Cotton Supply Cor-
poration will be for nine months, un-
less earlier payment is made and the
Joint Export-Import Agency agrees to
put the American Cotton Supply Cor-
poration in funds to meet the draft.
The draft will be payable in dollars,
although sales may be made in any
currency acceptable to the JEIA. Sales
will also be arranged as much as pos-
sible through normal commercial chan-
nels, Colonel Cleveland said, but for
the benefit of the Joint Export-Import
Agency.
The American Export-Import Bank
has given a commitment to discount
or purchase directly or through a
shipper's home bank drafts up to the
amount of $19,000,000 outstanding at
any one time. The yearly interest rate
charged by the Export-Import Bank
will be two and a half percent and
additional charges will be made to
cover the expenses of the American
Cotton Supply Company. Initially the
charge should not exceed three-fourths
of one percent.
GREAT flexibility of operation will
G   be given the Joint Export-Import
Agency through this method of financ-
ing. Sole security for the draft will be
the general undertaking of the Agency
to put the American Cotton Supply
Corporation in funds to pay drafts at
maturity. At the same time no specific
lien or title will be kept on the cotton
or textiles manufactured from this cot-
ton, by the American Cotton Supply
Corporation.
It is anticipated that the first cotton
to be shipped under this agreement
will reach Germany this fall, probably
in October.
The   all-important  question  of
whether this cotton will be brought in
at American price, or American ex-
port price has not yet been settled.
Cotton heretofore brought to Germany
came at the American price (the
average price at ten markets on the
day the cotton moved to port). Ameri-
can export price would be about four
and a half cents less, although, of
course, the fluctuating market in cot-
ton is one of the planning difficulties
of any exact long-range program.
WEEKLY INFORMATION BULLETIN
14 JULY 1947
3


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