800.51W89 Czechoslovakia/194
The Czechoslovak Legation to the Department of State
Memorandum
The Czechoslovak Government sharing the views and concerns of the British and French Governments, as expressed in their notes from [Page 712] the tenth and eleventh of this month, in regard to the present serious situation arising from the difficult and complex problem of intergovernmental debts, particularly in its present acute stage in view of the next installments to be paid on December 15th, joins in the suggestions of the above mentioned governments for the reconsideration of this problem, and an extension of the suspension on payments for the duration of this reconsideration.
The Czechoslovak Government fully subscribing to all reasons and conclusions concerning the obstructive function and effect of this problem in the general economic situation, and in the world’s recovery, cannot omit to stress some specific causes which aggravate the financial situation of Czechoslovakia, already suffering under the general repercussions of the universal world’s economic crisis.
Situated in a part of Europe which has been most heavily afflicted by the collapse of prices of agricultural produces, by monetary and credit difficulties, Czechoslovakia has been unable to escape serious effects on her position as an exporting and creditor nation. The best evidence of this situation is the enormous decline of the Czechoslovak foreign trade, so vital to Czechoslovakia as an exporting nation, a decline which paralyzes beyond belief every effort to constantly meet larger obligations in foreign currency. All these difficulties and evils necessarily reflect themselves in the budgetary situation resulting, in spite of the most honest determination to the contrary, in an inevitable deficit.
In the humble opinion of the Czechoslovak Government, all these general and specific causes cannot reasonably be alleviated, and the way towards recovery and revival of prosperity through expansion of trade, both international and national, and through restoration of confidence, cannot be resumed without immediately approaching the problem of intergovernmental debts with utmost serenity, broad-minded foresight, understanding, and with a sense of mutual cooperation. It is in this spirit and hope that the Czechoslovak Government adheres to the request of preceding governments.