U.S.-reich Barter Pact on Verge of Collapse

The proposed cotton barter deal with Nazi Germany today stood on the verge of collapse as officials at the State Department revealed that Secretary Hull will make “no compromise” on the proposal, which is sponsored by George Peek, foreign trade adviser to President Roosevelt and head of the Export-Import Bank.

Mr. Hull’s disapproval of the plan whereby the Reich would obtain some 500,000 bales of cotton in exchange for shipments of Nazi products is based on his conclusion that the scheme runs counter to the present foreign trade policies of this country.

SENT BACK FOR REVISION

It was pointed out that the stand taken by Mr. Hull has been approved by the Cabinet and any other proposals to stimulate foreign trade are subsidiary and must be considered in the light of already approved policies.

President Roosevelt has turned down the Peek proposal and referred it back to Mr. Peek for revision along lines which would meet the Secretary of State’s objections.

The barter plan was sent to the

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