Foreign Relations of the United States: Diplomatic Papers, 1945, Europe, Volume IV

611.60F31/5–2945

Memorandum of Conversation, by Mr. Sidney D. Merlin of the Division of Commercial Policy

[Washington,] May 29, 1945.

Participants:	Mr. Emanuel Jan Hajný, Czechoslovak Commercial Counselor
	Mr. Bunn, CP84
	Mr. Hollis, CP
	Mr. Merlin, CP

Mr. Hajný called this morning at his request to discuss further the new trade agreements legislation⁸⁵ as it affects the trade agreement with Czechoslovakia. In view of the proposed amendment to the Trade Agreements Act preventing the reinstatement of the trade agreement with Czechoslovakia by proclamation, he proposed that an exchange of notes between the Czechoslovak Government and this Government extending most-favored-nation treatment in each case might be arranged. Mr. Hajný observed that prior to the establishment of the trade agreement with Czechoslovakia, commercial relations between this Government and Czechoslovakia had been governed by the most-favored-nation clause as referred to in Article XVIII of the trade agreement with Czechoslovakia. Mr. Bunn agreed that this procedure seemed appropriate as an interim arrangement for commercial relations between Czechoslovakia and this Government. It was agreed that respective drafts of the most-favored-nation type of statement be drawn up for discussion. Mr. Hajný was given a copy of the provisional commercial agreement of 1938 between the United States and Greece⁸⁶ as one of the more recent exchanges of notes of this Government according most-favored-nation treatment.

Mr. Hajný also commented on possible trade between the United States and Czechoslovakia by saying that Czechoslovakia would not be in a position to export in any volume for as much as a year because of the economic disruption suffered under the German occupation. In reconstructing the Czechoslovak economy, it was his feeling that industries almost completely dependent on export trade for continued existence, such as the window glass industry, should not be revived. He indicated that the skilled craft workers in home industries would be encouraged in reviving economic activity in Czechoslovakia and would continue as a permanent part of the Czechoslovak economic system.

84. Charles Bunn, Acting Chief, Division of Commercial Policy.
85. On May 16, 1945 (79th Cong., 1st sess.), Representative Robert L. Doughton of North Carolina introduced a hill, H. R. 3240, “to extend the authority of the President under section 350 of the Tariff Act of 1930, as amended, and for other purposes”. It was approved on July 5, 1945, as Public Law 130. For text, see 59 Stat. 410.
86. For text, see Department of State Executive Agreement Series No. 137, or 53 Stat. (pt. 3) 2046. For documentation regarding the negotiation of this agreement, see Foreign Relations, 1938, vol. ii, pp. 516 ff.