711.60F/10–2546: Telegram
The Ambassador in Czechoslovakia (Steinhardt) to the Secretary of State
[Received 6:45 p.m.]
1822. For the Secretary from Ambassador. Your 132, October 14 from Paris. Our action in suspending credits and loans to Czechoslovakia having highly salutary effect. Suspension of loan negotiations [Page 234] for reasons given in press has brought widespread public criticism of Czechoslovak delegation in Paris. Pro-Western members of Government are privately jubilant. Their opposition to Communist domination of Government stiffened noticeably. There is now general recognition among responsible Czech and Slovak Communist leaders that they have unnecessarily offended US.
The effect on Communist members of Government has been one of gloom, rather than irritation. They have sent Masaryk to US, in hope that he can soon talk you into relaxing ban while Communist-dominated Government in Praha shrewdly calculates minimum cost thereof. Should Masaryk fail to accomplish his purpose, Government has already decided eventually to take whatever steps may be necessary to remove our grievances. While preliminary measures are being taken to give consideration to our claims for American property that has been nationalized I doubt they will be implemented until outcome of Masaryk’s effort is known.
In view of foregoing, I entirely agree with you that we should require more substantial evidence of Czechoslovak independence and friendship toward the US before any form of economic assistance is resumed.85
- In telegram 1830, October 29, from Praha, Ambassador Steinhardt reported having been informed by a Czechoslovak Foreign Ministry official that Czechoslovak authorities estimated American claims for nationalized properties to have the value of $2,340,000. Steinhardt concluded that “it would appear that Czechoslovak Government has in mind starting negotiations for compensation for American nationalized properties as soon as possible in hope that Export-Import Bank loan will thereupon be forthcoming but has no present intention of offering more than nominal amounts in settlement of claims.” Steinhardt concluded that he was opposed to the resumption of loan negotiations until the matter of American nationalized properties had been satisfactorily settled. (860F.5034/10–2946)↩