This is a very sweet, finely woven little Native American Wabanaki (encompassing the Micmac, Penobscot, and Passamoquoddy Nations, from Maine and Eastern Canada) basket, handwoven from sweetgrass and ash splints. Based on similar examples I have seen, I believe it dates from the 1920s-1930s. The ash splints, visible at the center and edge of the lid, and on and around the bottom of the basket (as well as peeking through in a few spots through the woven sweetgrass) have been dyed red, I believe using traditional mineral dyes. The basket holds a clear glass drinking cup inside, which I believe it was constructed around, as is often the case with Northeast Coast native baskets. 

 The sweetgrass has broken in one spot on the body of the basket and in one area along the edge of the lid, exposing the ash split structure underneath, as pictured. Otherwise it is in very good vintage condition. It measures 2 7/8" tall, with a diameter of 2 3/4" across at lid and 1 7/8" across at base.  Really a very lovely little piece.