800.51 W 89Czechoslovakia/101: Telegram

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


26. On July 6 the Czechoslovak Chargé, Dr. Lípa, conversed at the Department with Mr. Richardson, Acting Chief of the Division of Western European Affairs. Dr. Lípa stated that he was under instructions from his Government to say that it had been giving consideration to your note of May 2 regarding indebtedness of Czechoslovakia to the United States and that his Government had in principle agreed to meet all obligations toward this Government. Specifically, they agree to recognize the sum of approximately $80,000,000 verified by commission which came to Washington in 1923; to negotiate in immediate future for verifying of balance of about $11,000,000 that is still in dispute between Czechoslovakia, War Department, and Shipping Board, the verified amount on account of these items to be added to the already admitted $80,000,000; and to acknowledge the total as the sum of indebtedness of Czechoslovakia to the United States.

According to the Chargé, the Government of Czechoslovakia is prepared to negotiate at once conditions of payment of the $80,000,000 verified, and to do so either through the Czechoslovak Legation in Washington or through a special mission, whichever the Government of the United States might deem preferable.

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Dr. Lípa stated that above points would be incorporated in formal communication to be addressed to this Government within a week or so, and he wishes to ascertain if they would constitute a basis satisfactory to the World War Foreign Debt Commission upon which to begin negotiations, as his Government does not wish to send a formal communication in sense of the foregoing if the conditions are unacceptable.

The Department has communicated substance of Chargé’s statement to Treasury Department for its comment, and would be pleased to have you report by telegraph any information discreetly available on actual intentions of Government of Czechoslovakia.