800.51 W 89Czechoslovakia/90: Telegram

The Secretary of State to the Minister in Czechoslovakia (Einstein)

11. Your 12, May 2, 1 P.M. and previous correspondence regarding indebtedness of Czechoslovakia.

Should you find it necessary to discuss this matter with Dr. Beneš, you should bear in mind first that his letter of June 26, 1919, pledged his Government not to discriminate against the United States; second that the Czechs agreed to the London arrangement for refunding the relief credits extended by each Government except the United States without informing or consulting this Government or offering similar terms to it; third, that this action is in fact discrimination against the United States; fourth, that in addition to the foregoing the United States holds a Czech relief bond, due and payable January 1, 1925, identical in terms with those refunded under the London agreement; fifth, that among the terms of this bond is an undertaking by Czechoslovakia that it will make no payment in respect of any such relief bond “unless a similar payment shall simultaneously be made upon all the obligations of said series issued by the Republic of Czechoslovakia in proportion to the respective obligations of said series”. Payments under the London agreement therefore violate this specific assurance.

Belgium and Rumania have also similarly discriminated against the United States and this Government has made vigorous representations through the Embassy at Brussels and the Legation at Bucharest.10

  1. See pp. 107 and 167.