The Minister in Czechoslovakia ( Ratshesky ) to the Acting Secretary of State
[Received June 27—10:40 a.m.]
25. My telegram No. 23, June 23, 3 p.m.98 In conversation with Doctor Beneš99 last night he informed me that Czechoslovakia would send its formal answer to President Hoover’s proposal for war debt payments in 3 days. He stated that he considered the proposal a splendid thing which would benefit all countries. Czechoslovakia has a vital interest in the rehabilitation of Europe but particularly of Germany which would have a beneficial reaction here. He has satisfied himself regarding certain details of the proposal by cable from the Czechoslovak Legation in Washington. Czechoslovakia will accept gladly as the relief is essential to her, and as she is not a [Page 201] creditor nation there will be no adverse effect on her budget. He stated that it was his opinion that a postponement of 1 year’s payments would necessarily involve a further extension but that the present was not the time to discuss that point. He added that his delay in sending a formal answer was due to the complicated European political situation as Czechoslovakia did not wish to appear hasty in a matter which affected her allies in a different way. I gathered that he did not wish to take action until France had made her position clear and until the members of the Little Entente receiving reparations have made a statement. He assured me however that Czechoslovakia would accept.