A GERMAN TAX.

Lyttelton Times, Volume CXXI, Issue 15457, 8 November 1910, Page 7

A GERMAN TAX.

EFFECT ON POTASH CONTRACTS. United Press Association—By Electric Telegraph—Copyright. BERLIN, November 7. In connection with tho trouble about potash contracts, the American delegates submitted a proposal to the German syndicate by which the loss due to the super contingent tax would be halved between American and German interests, the Americans thus penalising themselves voluntarily to the exton of 14,000,000 dollars. The president of tho syndicate rejected the proposal and the delegates are returning to Washington. (A few days ago Router’s Berlin correspondent stated that Mr Ivnox. American Secretary of State, had indicated that he was hound to resist the wrong inflicted on Americans by the Gorman retro-active tax on potash contracts niado in good faith with German exporters. Mr Davis, special commissioner, informed tho German Government that unless tho American demands were satisfied the provision of tho tariff law imposing an extra 25 per cent on imports from nations discriminating against the United States would probably bo applied to German exports. Thus a trade war was in prospect, which would almost certainly react on tho political friendship cultivated between Berlin and Washington since 1907.)