740.00119 Council/8–3046: Telegram
The Secretary of State to the Acting Secretary of State58
[Received 6:47 p.m.]
4368. Delsec 877. From the Secretary for Clayton. You will recall that Vyshinsky made much propaganda use of his pretension that the United States is trying to bring about the economic enslavement of Europe through a policy of handouts.59 This viewpoint has been applauded and supported by the Czechoslovak delegation here. I understand that we have extended a line of credit up to 50 million dollars to Czechoslovakia for the purchase of surplus property in Europe, of which only roughly 9 million dollars have been utilized. In view of the foregoing and of the general trend of the Communist-dominated government in Czechoslovakia I want you to look into the situation to determine whether there might be any proper way of preventing the unused portion of this Czechoslovak credit from being utilized in practice. I do not want to cancel a contract but merely to see to it that we are not making new contracts subsidizing the Communist control of Czechoslovakia. I am convinced that the time has come when we should endeavor by all fair means to assist our friends in western Europe and Italy in the matter of surplus property sales and such other means as are feasible rather than to continue to extend material aid to those countries of eastern Europe at present engaged in the campaign of vilification of the United States and distortion of [Page 217] our motives and policies. Any other course I am sure will not be understood by the American people.60
- The substance of this telegram was transmitted to Praha in telegram 1100, September 6, which also asked Ambassador Steinhardt for his comments on the situation and any recommendations he might wish to make concerning the proposed Export-Import Bank credit to Czechoslovakia in the light of the Secretary’s comments and the present trend of the Czechoslovak Government (860F.24/9–646). The Secretary of State was at this time in Paris at the head of the United States delegation to the Paris Peace Conference.↩
- Reference presumably is to the remarks made by Soviet Deputy Foreign Minister Vyshinsky during the 18th Plenary Meeting of the Paris Peace Conference, August 15. For documentation regarding the participation by the United States in the Paris Peace Conference, see vols. iii and iv.↩
- Telegram 4653, September 6, to Paris, reported that the Deputy Commissioner of the Office of the Foreign Liquidation Commissioner in Washington was instructing the OFLC Central Field Commissioner for Europe to avoid any further commitments to the Czechoslovak Government where legally possible until the Czechoslovak Government, to the satisfaction of the Secretary of State, had abandoned its campaign of vilification of United States motives and policies (860F.24/9–646). This message was repeated to Praha as telegram 1101. In telegram 1685, September 17, from Praha, Ambassador Steinhardt said in part: “I am fully in accord with the policy which the Secretary and you have decided to adopt of avoiding any further commitments to the Czechoslovak Government where legally possible until the Czechoslovak Government has to our satisfaction brought about an abandonment of the campaign of vilification of US motives and policies.” (860F.51/9–1746)↩