514 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE.

The syndicate will grant such discounts on the tonnage and in the amounts
hereinbefore stated only to actual manufacturers of fertilizers, and in such
cases only to such manufacturers as shall buy at least the tonnage set forth
in the foregoing table.
(20) Cuba and Porto Rico shipments—After January 1, 1912, the syndicate
will ship such proportion of potash as the buyer may require to Cuba and Porto
Rico on the terms and conditions hereinbefore referred to, but in case freight
charges on such shipments shall exceed freight charges to Atlantic coast and
Gulf ports the difference in freight shall be paid by the buyer.
California requirements.—The potash required by the buyer in connection
with the business conducted by it in the State of California and on the Pacific
coast is excluded from this contract and is not subject to the restrictions in
this contract contained.
European shipments.—It is understood that the buyer’s purchases are for
nse in the United States, Porto Rico, and the West India Islands, and the buyer
will not reship the potash covered by this contract to any European or other
foreign country.
(21) Purchases for 1911,—All purchases and sales for 1911 shall be treated
as made during the half year. Buyer shall notify the syndicate on or before
August 15th, 1911, of its requirements, said date being fixed as the * booking
date ”” so far as shipments for 1911 are concerned. }
(22) Outstanding contracts.—It is understood that the buyer has heretofore
entered into a contract with Flermann or Waldemar Schmidtmann for Gewerkschaft
 Sollstedt providing for the sale and purchase of twenty-five hundred
metric tons K.O per year, and that the buyer, on receiving potash delivered
or claimed to have been delivered under said contract, has protested to certain
charges made in each invoice and claimed as a tax under section 26 of the German
 potash law, the buyer claiming that the seller was liable under said law for
said tax and that the dispute regarding such liability has not yet been adjusted.
 The foregoing contract is made subject to the rights and obligations,
if any such exist, under said contract so far as the provisions thereof shall
bind. the buyer. The buyer states that it proposes to test either by arbitration
or legal proceedings the question of the obligations under said contract. In case
it shall be determined as a result of such proceeding that said contract is binding
 upon the buyer and not subject to cancellation, or that buyer is liable for the
so-called tax or. in case the buyer’s liability, if such exist, either by legal proceedings
 or otherwise, shall not be disposed of, then and in that event the
buyer shall be relieved from the obligation to take from the syndicate the
gaid 2,500 tons covered by said contraet, or any part thereof, it being the intent
hereof that the buyer shall not be obligated to take any part of the 2,500 tons
from the syndicate provided the buyer shall be compelled to receive the same
from Gewerkschaft Sollstedt under said agreement.
The buyer covenants to use its best efforts to procure the cancellation or
other termination of said contract and agrees that the syndicate shall be permitted
 to take such part in any proceeding that may be instituted to procure
 the cancellation or termination of said contract as the syndicate may
desire. The syndicate further agrees to aid said buyer, so far as it may be
able, in procuring the cancellation or termination of said contract.
The buyer shall have the right to adjust or compromise its difficulties’ with
Gewerkschaft Sollstedt in such manner as the buyer may deem advisable, but:
the buyer shall not make any such adjustment or compromise on the basis
of receiving deliveries from Gewerkschaft Sollstedt, except on two weeks’
notice to the syndicate that a binding offer, correct copy of which is to be given
to the syndicate, has been made by Gewerkschaft Sollstedt and giving an opportunity
 to the syndicate within said time to take over or adjust said contract
 as hereinafter stated. If the buyer shall adjust or compromise such
difficulties on such terms that the buyer shall continue to receive potash under
said contract the buyer shall give the syndicate prompt notice, and the syndicate
 shall have the right thereafter, on notice to the buyer, to refuse to make
further deliveries under this contract and to cancel and terminate the same.
The syndicate at all times shall have the right to take over said contract
(unless the same shall have been canceled or terminated) and if it shall acguire
 the same the syndicate shall have the right to compromise or adjust
the said contract at its own expense in such manner and on such terms as
the syndicate shall deem advisable; provided, however, that in case the syndicate
 shall take over, adjust, or compromise said contract the syndicate shall