660F.116/158: Telegram
The Minister in Czechoslovakia (Wright) to the Secretary of State
[Received February 20—2:45 p.m.]
9. Your telegram No. 3, January 16, 6 p.m. In continued conversations officials of the Foreign Office, National Bank and Clearing Committee reiterate the desire for “direct” trade for reasons reported in my despatch 70, January 23,37 and express the hope that American exporters will be equally interested. It would be helpful to know whether such is the case even if it should involve dislocation of the facilities afforded by the free ports and the agents thereat.
Without regard to the general question I have made discreet use of your instruction No. 20, January 11th,38 regarding which Benes39 also informs me that he has received a report from Veverka.40
Czech member of Clearing Commission left today for Berlin to attend meeting on 20th at which will be discussed the amount of American mark payments for cotton which I learn that Germany now considers excessive. I have suggested an equivalent of 2½ percent, comprising customary commission of 1 percent to Czech agent and 1½ percent for generally accepted amount of handling charges, based on data furnished by Consul at Bremen. In reply to tentative inquiry whether part payments on such percentage basis would be satisfactory, I replied that while without specific instructions I consider that you desire the elimination of the practice of percentage deduction as much as the reduction of charges, although as regards cotton 2½ percent would seem fairly to reflect such charges.
With regard to 8 percent on other shipments the Foreign Office and National Bank are without data as to nature and volume, and consider handling charges so variable in each commodity as to be difficult of computation. They inquire whether I can obtain more definite information. Do you perceive objection to my utilizing such information as may be obtained from Consuls at Bremen and Hamburg in a manner similar to that employed in the case of cotton? Telegraphic reply to latter point is necessary only in case you consider this phase urgent.