Office of the Historian

860F.51/1–3146: Telegram

The Ambassador in Czechoslovakia (Steinhardt) to the Secretary of State

restricted
Praha, January 31, 1946—5 p.m.
[Received February 1—11:50 p.m.]

158. In a note of January 25, Czechoslovakian Foreign Office states that Czechoslovakian Govt considers it highly necessary that the credit of 10 million dollars already offered by US Govt to cover purchase of American war surplus property be increased to 50 million dollars and that US Govt should extend the credit under the following conditions:

  • “(1) The total amount of the credit of 50 million dollars would be repaid in annual installments extending over a period of not less than 30 years.
  • (2) The first payment of amortization will be effected 5 years after the conclusion of the credit agreement.
  • (3) Interest rate will not exceed 2⅜ percent per annum.
  • (4) The Govt of the Czechoslovakian Republic will have the right to repay the equivalent of 10 million dollars of the credit in crowns.
  • (5) The Czechoslovakian Govt will be entitled to make purchases [Page 182] from American war surplus property wherever located and within the limits of the credit to make purchases in the US as well especially as regards materials necessary for the maintenance of goods acquired or purchased”.8

Steinhardt
  1. In his telegram 330, March 5, 1946, from Praha, Ambassador Steinhardt indicated that he did not approve of the Czechoslovak request that the credit for surplus property be increased to 50 million dollars (860F.51/3–546). Telegram 204, March 15, to Praha, stated that the 50 million dollar credit being negotiated by the Foreign Liquidation Commission was for surplus property only and was in no way related to the contemplated Export-Import Bank loan to Czechoslovakia. The Department did not regard the 50 million credit excessive in view of similar credits to other countries and the desire of the Foreign Liquidation Commission to dispose of the maximum amount of surplus property (860F.51/3–546).↩