800.51W89 Czechoslovakia/197
The Secretary of State to the Czechoslovak Minister (Veverka)
Sir: My Government has considered with the greatest care the note of December 5, 1932, from the Czechoslovak Government, in which it has set forth at length the reasons it advances for a reconsideration of the whole question of intergovernmental war debts, and for the postponement of the payment due by the Czechoslovak Government to the Government of the United States on December 15, next.
Whatever part debt payments may have played in the economic history of the post-war years, it is clear that in the present conditions of world-wide depression, accompanied by a sweeping fall of prices, their weight has greatly increased, and that they have a very definite relationship to the problem of recovery in which both the Czechoslovak and the American people have so vital an interest.
The President of the United States is prepared, through whatever agency may seem appropriate, to cooperate with the Czechoslovak Government in surveying the entire situation and in considering what means may be taken to bring about the restoration of stable currencies and exchange, the revival of trade, and the recovery of prices.
I believe that there are important avenues of mutual advantage which should be thoroughly explored. Such an examination does not imply cancellation.
My Government, however, has not been able to reach the conclusion that a postponement of the December 15th payment from the Czechoslovak Government to the United States is necessary because of its effect on the problem of recovery. Although we recognize the serious economic and financial difficulties which the Czechoslovak Government, in common with all other governments, is now facing, the maintainance of these agreements in their operation pending due opportunity for analysis of all matters bearing upon your request for revision and its consideration by the American Congress and people still appears to us to outweigh any reasons presented for a delay.
Accept [etc.]