860F.24/10–2946: Telegram
The Acting Secretary of State to the Ambassador in Czechoslovakia (Steinhardt)
1343. Urtel 1831 Oct 29.87 Following sent London re proposed 10 million dollar UK credit Zecho for purchase surplus war material:
“In accordance suggestion made by Inverchapel in conversation with me, interested representatives Britemb and Dept held broad exchange views Nov 6 on economic policies two countries in Eastern Europe after which broad exchange group surveyed US and UK plans economic assistance for individual countries, including proposed UK agreement with Zecho for extension 10 million dollar surplus war material credit. (Reurtels 9083 Oct 2588 and 9261 Nov. 5.88a) On latter point Dept took position that it would leave matter entirely Brit decision. Dept pointed out that at time suspension negotiations for 50 million dollar Eximbank credit it took no action concerning Zecho 20 million dollar cotton loan and 2 million dollar tobacco loan on grounds that these were firmly committed. “Agreed it would be advisable coordinate US and UK programs economic assistance in Eastern Europe and henceforth there would be periodic consultation between appropriate officers Dept and Britemb. Britemb intends cable full account this discussion which FonOff will communicate Embassy.”89
For your info in this connection, Secretary outlined Dept’s general policy on US economic assistance in Europe (Delsec 986 Sep 2490) as follows: [Page 236]
“I feel that you should have a full realization with the Dept of the importance of world developments in recent months and their effect upon such earlier plans as may have been under consideration with regard to economic assistance in different forms to various countries in Europe and the Near East. It was natural that consideration of such assistance should some months ago have been determined largely on the basis of need, capacity to repay, and general attitude of the recipient country towards our important aims and methods of expanding world trade. The situation has so hardened that the time has now come, I am convinced, in the light of the attitude of the Soviet Govt and the neighboring states which it dominates in varying degrees, when the implementation of our general policies requires the closest coordination. In a word we must help our friends in every way and refrain from assisting those who either through helplessness or for other reasons are opposing the principles for which we stand.… The world is watching the support or lack thereof which we furnish our friends at this critical time and the future policies of many countries will be determined by their estimate of the seriousness or lack thereof with which the US upholds its principles and supports those of like mind.”
[On November 14, 1946, identical notes were exchanged between Czechoslovak Ambassador Slavik and Acting Secretary of State Acheson, embodying an agreement between the United States and Czechoslovakia on commercial policy, compensation for nationalized properties, and related matters. For text of the notes, see TIAS 1569; 7 UNTS 119; or 61 Stat. (pt. 3) 2431.]
- Not printed.↩
- Not printed; it reported that the understanding between the United Kingdom and Czechoslovakia relative to a £2,500,000 credit for delivery to Czechoslovakia of surplus British war stores had only been reached on a technical level. The agreement had not yet been considered on a political level, and a British Foreign Office official had suggested that American views regarding the extension of credits to Czechoslovakia might be helpful to the British in this consideration. (860F.51/10–2546)↩
- See footnote 86, p. 234.↩
- The quoted message was sent to London as telegram 7601, November 7 (860F.51/11–746).↩
- For the complete text of telegram 4787, Delsec 986, September 24, from the Secretary of State in Paris, see vol. vii, p. 223.↩