860F.24/8–1446: Telegram
The Ambassador in Czechoslovakia (Steinhardt) to the Secretary of State
[Received August 16—7:40 p.m.]
1511. Embassy is today in receipt of a note from Foreign Office dated August 3 which reads as follows:
“Minister of Foreign Affairs presents its [his?] compliments to Embassy of the United States and has the honor to draw the attention of the Embassy to several cases of discrimination in connection with purchases of American surplus war property.
While the Czechoslovak Government applied to the Government of the United States for a loan of $50,000,000 to purchase American surplus war property and negotiations took place in Washington, the Government of the United States concluded a commercial and financial agreement with the Government of France ceding at exceedingly favorable terms all surplus war property which was on the territory of France at the date of conclusion of that agreement.52
As under these circumstances the surplus war property on territory of France is no longer accessible to other states, the purchase possibilities for Czechoslovakia have been considerably reduced. Minister of Foreign Affairs further wishes to point out that, despite the credit agreement between Government of the United States and Government of Czechoslovakia for, purchasing American surplus war property, an agreement which covers all American military stores on European continent, the French Government has been granted priority rights for purchases of American war surplus property on territory of Belgium, Germany and Italy.
Further the Minister of Foreign Affairs wishes to point out that Czechoslovak delegates at United States of America Office of Foreign Liquidation in Paris have several times endeavored to obtain from that office a contract for delivery of a large quantity of tires.
So far, however, their demand has not been granted though in the meantime delegates Swedish and Swiss Governments have secured contracts for delivery of tires.
The Czechoslovak Government welcomed at the time with satisfaction the understanding shown once more by the Government of the United States for the economic difficulties of Czechoslovak Republic in granting a loan to amount of $50,000,000 for purchase of American war surplus property. Czechoslovakia concluded that credit agreement with intention of using whole amount of $50,000,000 for purchases out of abundant American surplus war property to cover at favorable terms its most important needs for the economic reconstruction of the country. In view of above mentioned discriminations, however, the purchase possibilities for Czechoslovakia have [Page 213] been considerably reduced, and there is reason to fear that the loan will not be used up completely, and consequently fail to serve its purpose.
The Minister of Foreign Affairs therefore takes the liberty to ask the Embassy of the United States kindly to convey to the American Government the desire of Czechoslovak Government that the obstacles be removed which so far have prevented Czechoslovakia from successfully completing its purchasing program.”
My comments follow in next succeeding number telegram.
- For texts of the financial and commercial agreements between the United States and France, signed at Washington on May 28, 1946, see Department of State, Treaties and Other International Acts Series (TIAS) No. 1928; United Nations Treaty Series (UNTS) No. 84, p. 59; or 61 Stat. (pt. 4) 4175.↩