840.50 Recovery/7–747: Telegram
The Ambassador in Czechoslovakia (Steinhardt) to the Secretary of State
urgent
847. For Clayton. When British and French Ambassadors called on Masaryk1 July 4 to tender invitation to Paris Conference, Masaryk [Page 314] accepted invitation immediately, as reported in my 837.2 As Czechs are extremely anxious to participate in Marshall plan and will do so unless forbidden by Soviets, there would seem no necessity for being rushed at this time into decision to reconsider Czech application for Eximbank 50 million dollar loan.3 I feel that any reconsideration of an Eximbank loan for general purposes as distinguished from commodity credits should be predicated on our over-all relations with Czechoslovakia and particularly extent to which proceeds of any such loan might be subject to diversion for benefit of Soviet Union or Czechoslovak Communist Party than that we be rushed into a reconsideration thereof to accomplish a purpose which has already been accomplished.
As reported my 836,2 Gottwald,4 Masaryk and Ripka5 proceeding Moscow tomorrow where they will presumably receive instructions as to extent to which they may participate in any agreements which may be reached in Paris. Sent Geneva for Clayton as 19; repeated Department 847.