860f.51/428: Telegram

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


46. On August 8 I saw President Masaryk at Carlsbad. He inquired in regard to standing of National City Bank and said that the Government was now negotiating loan with them, but stated in answer to my question that he did not know if any advances had yet been made. An advance to the Government of Czechoslovakia has been reported as having been made through a local bank which has, in turn, received money from a foreign bank, but I am unable to vouch for the accuracy of this statement. I do not believe that the Government is in urgent need of funds, but I have impression that it is finding difficulty in handling maturing short-term notes and that it would welcome a loan to relieve it.

On August 5 I communicated through American Embassy, Berlin, the Department’s position as outlined in its telegram No. 30, July 23, 1 p.m., to Vice President Weeks of the National City Bank who had been in Prague twice lately, with suggestion that message should be given to his principals in New York for their information.