660F.6131/4–2046: Telegram
The Ambassador in Czechoslovakia (Steinhardt) to the Secretary of State
[Received April 20—2:20 p.m.]
595. In conversation this afternoon with Ripka, Min for Foreign Trade, he gave me the following information in strict confidence with respect to his negotiations in Moscow which resulted in a trade agreement (see my 584 April 1819). For sake of brevity his comments are enumerated below.
- 1.
- At no time did the Russians endeavor to exercise any pressure or coercion on Ripka.
- 2.
- The negotiations were confined to purely economic matters and politics did not enter into any of the decisions.
- 3.
- The Russians indicated little interest in consumers goods making it clear that their principal concern was to obtain machinery with which to manufacture their own consumers goods.
- 4.
- The principal commodities sought by the Russians were locomotives, all types of heavy machinery, machine tools, etc.
- 5.
- The principal commodities offered by the Russians were iron ore, manganese, aluminum, lead, zinc, salt, and cotton (Ripka indicated that the Russians would not be able to supply more than one-third of Czechos requirements of cotton).
- 6.
- Although stating that it was a novelty to them the Russians accepted Ripka’s proposal that no quantities be specified but that individual contracts be entered into on a clearing basis and that the two Govts confine their participation to mutual assurances of performance. All financial settlements are to be made in Zech crowns.
- 7.
- As transportation is regarded by both countries as the principal obstacle to a substantial expansion in their trade relations a great deal of consideration was given to improving means of transport.
- 8.
- In response to an inquiry by Mikoyan20 as to whether Zecho had as yet entered into a commercial agreement with the United States and Ripka’s reply that no such agreement existed, Mikoyan inquired “why not” indicating that the Soviet Govt would welcome an expansion of trade relations between Zecho and the US.
- 9.
- No reference was made at any time to inclusion of Zecho in the Soviet Govt’s new “5-year” plan.
- 10.
- In response to my inquiry as to whether Lausman had entered into any engagements at the time of his visit to Moscow some two or three months ago which had proved embarrassing to Ripka’s negotiations, he replied that the Russians had informed him that Lausman had confined his remarks to vague generalities and that his visit had been inconclusive.
Ripka appeared to be more than satisfied with the outcome of his visit to Moscow in that he had not been obliged to enter into any commitments which might interfere with the development of Zecho’s trade with the west particularly with the US. He pointed out that the commodities Zecho is to receive from the Soviet Union are not the kind that could readily be imported from the US and that Zecho’s prospective exports to the Soviet Union were not readily salable in the US.
In view of Ripka’s well known reputation as a moderate with strong pro-western leanings, I am inclined to attach considerable importance to his optimism as to the prospects of satisfactory trade relations between Zecho and the United States.
Sent Dept as 595, rptd. Moscow as 11.