600.458/12–2244
The Agent General for India (Bajpai) to the Assistant Secretary of State
Dear Mr. Dean Acheson: You must have seen the State Department memorandum 600.458/12–44 [444] dated December 19th, on the subject of the assistance given to American cotton by means of a subsidy for purposes of export. I have informed my Government of the purpose of the proposed meeting of the International Cotton Advisory Committee and await their instructions. Possibly an international conference will provide the best means of resolving the problems raised by the existing cotton situation, and I sincerely hope that the initiative of your Government in suggesting international cooperation as the basis of a solution equitable to all concerned will evoke prompt and favourable response.
2. May I, before concluding, draw your attention to paragraph 5 of the memorandum. We accept, of course, the statement that it was not the intention of the United States subsidy programme to start a competitive cotton price war. As we explained, however, in paragraph 3 of our memorandum dated December 4th, the effect, at least in India, was to reduce the prices of comparable varieties of Indian cotton by 3 to 3½ cents per lb.
With best wishes for Christmas and the New Year, I am,
Yours sincerely,