611.60F31/538a

The Department of State to the Czechoslovak Legation

Memorandum

The Trade Agreements Program of the Government of the United States is designed to bring about the reduction and elimination of excessive barriers to international trade. It is a part of a major conception looking to world peace and harmony. The cooperation of other Governments is essential in the realization of the good thus envisaged.

The American Government has offered to the Czechoslovak Government a liberalization of its present trade restrictions. There are no restrictions on Czechoslovak trade with the United States other than non-discriminatory customs duties, and the American Government is prepared to reduce the duties on certain products of particular [Page 251] interest to Czechoslovakia. The American Government in its request of the Czechoslovak Government has proposed the suppression of quantitative restrictions on a limited number of articles imported into Czechoslovakia. Without such suppression, it will not be possible for trade to develop naturally, nor for products of particular interest to the United States to be imported into Czechoslovakia on a basis comparable to that on which all Czechoslovak products are permitted to be imported into the United States. That such a request would be made was indicated in the memorandum which accompanied the preliminary American request list which was submitted in August. The American Government does not request that the Czechoslovak Government make this change in its entire system of trade-control, but the American Government does feel justified in requesting that with respect to the very limited number of products indicated in its proposals the Czechoslovak Government will eliminate quantitative restrictions and thus take a small step in the direction of returning trade to normal competitive channels. In return for such a step on the part of the Czechoslovak Government the Government of the United States has offered and is prepared to give substantial benefits in the American market to Czechoslovak exports.