711.60F/10–746: Telegram

The Ambassador in Czechoslovakia (Steinhardt) to the Secretary of State

secret

1745. I have had a long conversation with the Prime Minister in the course of which we discussed recent developments in the relations between the two Govts. I outlined to Gottwald the principal reasons for the suspension of the balance of the surplus property credit and the negotiations for Eximbank reconstruction loan. I referred to the press campaign against the US. I pointed out that no steps had been taken by the Zecho Government to restore American properties illegally seized or to open negotiations to compensate American owners of nationalized properties.

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Gottwald seemed impressed. He assured me that his desire and that of his Govt is to maintain the most friendly relations with the US. I gained the impression that as a result of our talk he will take action and make an earnest effort to improve the atmosphere. As evidence of his determination he telephoned the Minister of Information79 in my presence and directed him to issue instructions immediately to the entire press including Slovak press to discontinue any articles “hostile to our American friends” and to report to him any breaches of the instruction for disciplinary action. He also telephoned the Foreign Office in my presence directing that a list be submitted to him immediately of all American property that has been seized or nationalized.

Gottwald’s instructions to the press will afford us an opportunity to observe the extent to which as leader of the Communist Party in Zecho he exercises control over the Communist press.

Sent Dept 1745, repeated Paris for the Secretary 186.

Steinhardt
  1. Vaclav Kopecky.