660F.116/126: Telegram
The Minister in Czechoslovakia (Wright) to the Secretary of State
[Received December 22—10:45 a.m.]
75. Department’s telegram No. 47, December 19, 7 [6] p.m. The Ministerial decree is based upon new Czechoslovak-German Clearing [Page 164] and Continuance [sic] Agreement reported by Commercial Attaché in special report No. 74, November [28th], text of which was forwarded in same mail December 1st.30 The Governor of Czechoslovak National Bank states that deduction of 4 percent is based upon arbitrary assumption by Czech and German authorities that commission port charges will equal that amount and that the arrangement is applicable to all shipments of cotton via German ports irrespective of whether negotiated directly or through German agents.
In transactions where the agent in Germany signs the invoices it would seem that the two countries are within their rights in this regard but any agreement affecting the payments on commercial contracts with a third country wherein German interest does not appear seems questionable from ethical and legal standpoints.
- Not found in Department riles.↩