860f.51/410: Telegram

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


21. Recently a representative of Dillon, Read and Company called to advise the Department of State informally that certain tentative discussions had been taking place in Prague between a representative of the company and the Government of Czechoslovakia in regard to a possible loan of $60,000,000; of this amount one-half would be for general construction purposes, and the other half would go in part for the establishment of a bank of issue and in part to stabilize the currency.

Department was informed (1) that these conversations had arrived at stage where matter had either to be continued seriously or to be discontinued; and (2) that the bankers felt that the market could now take $30,000,000 for Czechoslovakia but not $60,000,000. The bankers were inquiring in regard to the Department’s attitude toward such a loan as they had in mind, and they were informed that until the Czechoslovak Government should reply to this Government’s recent note regarding refunding of Czechoslovakia’s debt to the United States,4 the Department would not be disposed to view favorably any financing in the American market on behalf of that Government.

The bankers were also informed that the Department would have no objections to communication of above views to Government of Czechoslovakia.