711.60F/10–1146: Telegram
The Ambassador in Czechoslovakia (Steinhardt) to the Secretary of State
[Received 9:40 p.m.]
1774. Masaryk requested me to call to see him this morning. He said subject of Czechoslovak-American relations had been discussed since my talk with Gottwald at two long sessions of cabinet. He stated frankly that Czechoslovak Government, including Communist Ministers, are seriously concerned at “changed attitude” of American Government towards Czechoslovakia and are determined to remove causes therefor without delay or equivocation. He then said that he is leaving for New York tomorrow to attend sessions of General Assembly of United Nations and that during his absence Fierlinger will be in charge of Foreign Office. He told me that Gottwald had stated categorically at meeting of Cabinet that there “must” be a “prompt settlement” of American claims arising out of illegally seized and nationalized properties and a discontinuance of newspaper articles offensive to US. Gottwald had informed cabinet that he had given strict orders that objectionable newspaper articles were to cease and that he was taking it upon himself to see that his orders are carried out. Masaryk added that somewhat to his surprise Fierlinger had supported Gottwald’s insistence that causes of American dissatisfaction must be removed. Lausman, who is encountering serious difficulties [Page 231] in implementing nationalization program, had expressed his agreement with the course proposed by Prime Minister. Kopecky had gleefully observed that he had had no difficulty in resolving motion picture impasse by resorting to direct negotiations with Ambassador.
Inasmuch as little, if any, preparatory work with respect to American claims has been undertaken by executive departments of Czechoslovak Government, committee was designated by Cabinet with instructions to classify and study American claims and report back to cabinet in 3 weeks that it is prepared to negotiate with Embassy for a final settlement. Committee is to deal with cases of illegal seizure as well as with cases of nationalization. Gottwald informed Cabinet that should legislation be necessary to meet American claims the necessary legislation would be enacted.
For Department’s information press attacks on US have ceased. In this connection Masaryk informed me that following Gottwald’s order to press through Ministry of Information (my 1745, October 7), he had called conference of 52 leading editors and had told them that attacks on US by some of newspapers had done a great disservice to Czechoslovakia.
It is obvious that action taken by Secretary in suspending surplus property credit and loan negotiations has restored respect of Czechoslovak Government for US which had been dissipated over period of 6 months notwithstanding objections of Embassy by policy of large gifts, credits and prospective loans with little in return other than lip service (my 1685, September 1780).
In view of the fact that press campaign has been discontinued and that I anticipate that before end of the year we will have had complete satisfaction insofar as concerns American properties which have been illegally seized and an agreement for compensation of American nationalized properties and that at that time it may become desirable to extend an Exim Bank loan to Czechoslovakia, I deem it desirable that funds at present reserved by Exim Bank for this purpose continue to be earmarked for Czechoslovakia.
Sent Department as 1774, repeated to Paris for the Secretary as 192.
- Not printed; in it Ambassador Steinhardt reviewed his earlier 1946 telegrams with respect to United States policy on credits and loans to Czechoslovakia (860F.51/9–1746).↩