740.00119 Council/9–1746: Telegram
The Secretary of State to the Acting Secretary of State
[Received 2:14 p.m.]
4658. Delsec 957. For Clayton from the Secretary. Instructions to OFLC have been carried out and further sales of surplus property to Czech Govt suspended September 13. Czech representatives have been informed of this action. Goods will be delivered in fulfillment of specific contracts concluded prior to issuance of OFLC suspension order.
In light of recommendation in mytel 4368, Delsec 877 August 30, I wish you would give serious consideration to pending Ex-Im credit to Czech Govt. I do not consider it desirable to subsidize present government or contribute in any way to official propaganda presenting US financial assistance as imperialist move to “enslave” Eastern European states. If you consider current negotiations with Hanč have not reached the state of a definite commitment on our part to proceed with loan I wish to suspend further negotiations for loan.
Repeated Praha as 117.