860f.51/433: Telegram

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


43. Your telegram No. 50, September 3, 3 p.m. The Department communicated with the New York Trust Company and has received a reply which states that the company has been discussing with the Czechoslovak Banking Office the possibility of extending such a credit as you describe, and that these discussions are being continued in expectation of favorable outcome to debt-funding negotiations; also that the Government of Czechoslovakia is giving preliminary consideration to marketing some $13,000,000 of the Austrian League of Nations loan and $2,500,000 Hungarian loan. The Department is replying that it hopes the company will not commit itself in any way before consulting the Department, and that the Government of the United States does not at present time view Czechoslovak financing with favor.

Report briefly any significant developments.