770.00/229
The Chargé in Czechoslovakia (
Tuck
) to the Secretary of State
No. 904
Prague
, January 18,
1933.
[Received January 31.]
Sir: I have the honor to report as
follows:
On January 16, I had occasion to call on Dr. Benes, Czechoslovak Minister
for Foreign Affairs. During the course of our conversation he expressed
his views to me on a number of questions which included the recent
extraordinary Conference of Ministers for Foreign Affairs of the Little
Entente at Belgrade; the future work of the General Commission of the
Disarmament Conference; the proposed World Economic Conference; and the
payment on December 15, 1932, by the Czechoslovak Government of its war
debt installment.
The substance of our conversations on these four subjects are enclosed
herewith in the form of separate memoranda.51
[Enclosure]
Memorandum by the Chargé in Czechoslovakia
(Tuck) of a
Conversation With the Czechoslovak Minister for Foreign
Affairs (Benes) on
January 16, 1933
As I rose to leave, Dr. Benes asked me to remain for a moment as he
wished to speak to me with regard to the payment by his Government
on December 15, 1932, of its war debt installment. He wished me to
know that on December 15, last, he had consulted the Prime Minister
from Geneva by telephone and had then directed the Minister of
Finance to set aside the sum due our Government and that the
National Bank of Czechoslovakia should inform New York that the
Government stood ready to pay. He then told me quite frankly that if
England, France and Belgium had all three decided not to pay, his
Government would have followed their example. Personally, [Page 853] he had always been in
favor of payment, as he felt that it was not so much a question of
the sum involved, as a question of principle. Czechoslovakia had, at
considerable sacrifice to herself, always met her obligations in the
past and would continue to do so whenever possible. Any other course
of action would prove damaging to her financial position not to
mention the consequences of default on world credit. He regretted
that the decision to pay had been left to almost the last moment but
his Government had felt that “in deference to France” no other
course could be followed. The fact that France and Belgium had
failed to pay their respective installments had altered the
situation materially and had made it possible for his Government to
make its own decision in the matter. He then turned to me, and with
a twinkle in his eye, expressed the hope that when the time came
(presumably June 15, 1933) that his Government would receive
favorable consideration. I merely said that while I was not in a
position to discuss the matter I felt certain that he realized that
our Government appreciated the sacrifices the Czechoslovak
Government had made in the past to meet its obligations and the fact
that it had continued to do so could only serve to enhance its
reputation for financial integrity.
Dr. Beneš’ statements, as reported above, are not without interest if
only as an illustration of the power which he wields as Foreign
Minister. I gathered that while he consulted the Prime Minister and
the Minister of Finance by telephone from Geneva, it was he who
forced the decision and, as usual, his opinion prevailed despite the
fact that I have since learned, on good authority, that the majority
of his Cabinet colleagues were opposed to payment.
I again call the Department’s attention to Mr. Benton’s despatch No.
888, of December 29, 1932,52 in which he reported that no provision is made
in the Budget for 1933 for the payment of interest on the American
debt installment due on June 15, 1933.
Respectfully yours,
