Foreign Relations of the United States, 1952–1954, Eastern Europe; Soviet Union; Eastern Mediterranean, Volume VIII

849.13/6–1153:Telegram

No. 31
The Ambassador in Czechoslovakia (Wadsworth) to the Department of State¹

secret
priority

Praha, June 11, 1953—7 p.m.

566. Re last paragraph Embtel 561, June 10.²

1. In our opinion monetary reform has engendered greatest unrest and discontent throughout Czechoslovakian population, including many party members, since advent present regime in 48. While situation now well in hand gravity emphasized by unprecedented acknowledgements in controlled press of mass overt acts against regime. Caveat that it must “never be allowed happen again” presages more terrorism. We think VOA and RFE should so state, particularly to counter phony local propaganda re “great satisfaction” with which monetary reform received by populace.

“Worse yet to come” could be central theme.

2. Perverted role trade unions in Communist state becomes obvious when publicly taken to task for not persuading workers that decision Communist Party and government was economically and socially correct and wholly to and in their own vital interest. Although this role long recognized here and emphasized by regime in past, apparently many trade unionists included in ranks those who could not stomach government’s recent monetary action. Significant that trade unionists even Communist ones in time of crisis automatically reverted to traditional role of trying protect workers interests and failed carry out corrupted function of protecting interests of regime.

3. Principal theme perhaps should be direct factual treatment whole monetary reform as gigantic robbery perpetrated on entire population, workers and non-workers, Communists and non-Communists kulaks and small farmers alike. No matter what abundant future government and party may now hold out, stark fact is that for all practical purposes most monetary gains of entire Czechoslovakian population, including accumulations since present regime came to power, have been wiped out. Futility of continuing follow Communist chimera should be apparent even to most gullible.

4. Inconsistencies and falsehoods of Communist regime can be brought out by careful scanning official public statements. After months criticism failures in carrying out five year plan, party decisions on monetary reform included justification for change in view “important progress achieved in building up socialism” and as logical result “unprecedented development of national economy”. Similarly “great enthusiasm” populace for reform, with which press has been filled for ten days belied by articles such as reported reference telegram.

5. Pending more detailed information as to exact effect reform on standard living, believe subject might be avoided for moment and emphasis placed on foregoing. Reform and simultaneous abolition rationing system by themselves certainly largely wipe out relative advantage heretofore enjoyed by workers mines and factories. Nevertheless net result might well be considerable over-all increase in purchasing power and of new money. This, however, is tempered by fact that purchasing power old crown was none too high to begin with. Since part of post monetary reform propaganda attempting prove workers better off under communism than under capitalism, however, there is still room for factual data regarding purchasing power capitalist currencies in terms hours work needed purchase food and essential commodities.

6. Point also can be made that reaction to monetary reform shows there is still living spirit resistance in Czechoslovakian people notwithstanding five years Communist oppression. Even Soviet-dominated government must know there is point beyond which people cannot be coerced. Tying of crown to ruble further emphasizes this domination.

7. Use of above by RFE and VOA especially latter would appear depend on fundamental policy decision with respect Soviet peace campaign. Persistent needling of Czechoslovakia’s Communist rulers by VOA official agency US Government cannot be expected pave way to improvement relations or settlement outstanding issues. On other hand anything less than full voiced attack on this latest crime communism against people Czechoslovakia might appear to listeners here as betrayal, causing hopes we have striven keep alive to collapse.³

Wadsworth

1. Repeated for information to Munich.
2. Not printed. (849.13/6–1053)
3. In the margin next to this paragraph Vedeler wrote: “Discussed in EE staff meeting & agreed to advise VOA to exploit this Communist crime for all it is worth. HCV”