The Czechoslovak Minister (Veverka) to the Secretary of State

Excellency: In reply to the aide-mémoire of the United States Department of State of November 27, 1935, and referring to my recent discussions relative to the mutual commercial relations between the United States and Czechoslovakia, as well as to the representations addressed by the United States Minister in Praha to the Czechoslovak Foreign Ministry regarding the application of the provisions of the Provisional Agreement of March 29, 1935, I have the honor to inform Your Excellency as follows.

The problem of the mutual trade relations between the United States and Czechoslovakia has been most carefully examined in the light of all the issues that have been raised.

The Czechoslovak Government feels certain that the United States has not overlooked the difficulties which the Czechoslovak Government might experience in adopting the present existing system of regulating foreign trade by the quota contingent and by foreign exchange allocation. This system construed in an empiric way and based on un-publishable bilateral agreements cannot be reversed by unilateral acts within a short term but may be gradually adapted to the extent that a more comprehensive trade agreement may be established.

In the meantime I have been instructed by my Government to declare that it is most willing to meet all objections raised against the application of the Provisional Trade Agreement of March 29, 1935, and settle through diplomatic channels all cases brought to its attention.

[Page 44]

The Czechoslovak Government is likewise most anxious in any case to guarantee to the products of the United States such treatment that they may not be excluded from the Czechoslovak market through the application of the Danubian clause of the Provisional Agreement. In this connection, any objections and observations which the United States may deem necessary to raise will be taken into prompt and most careful consideration by the Czechoslovak Government in order to meet any justified demand for a more satisfactory application.

In conclusion I wish to express the sincere hope that over a period of time and through an empirical and practical handling of all specific cases of differences arising in the application of the present Provisional Agreement, mutually satisfactory criterions will be found in order that a convincing basis may be established conducive to the conclusion of a more permanent trade agreement.

Accept [etc.]

Dr. Ferdinand Veverka