800.51 W 89Czechoslovakia/99: Telegram

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

28. Your 37, July 11, 1 P.M. On July 10 the following memorandum was handed to Czechoslovak Chargé:

“The World War Foreign Debt Commission would be glad to negotiate upon the settlement of the entire Czechoslovak debt to the United States with a commission from Czechoslovakia having due power to negotiate and conclude a settlement. Arrangements could be made in the debt settlement for an appropriate adjustment of any part of the total indebtedness not now admitted by Czechoslovakia to be due. There is no reason, however, why a debt settlement need await a verification of the total since this is simply a mechanical [Page 128]matter of auditing the accounts, and any debt settlement should cover the entire debt whatever it is ultimately determined to be.”

Please keep Department informed by telegraph of further developments.

Kellogg