740.00113 EW/11–2047: Telegram
The Ambassador in Czechoslovakia (Steinhardt) to the Secretary of State
1554. In conversation today with Gottwald I told him abusive and vicious attacks against US and all things American in Czech Communist press during past few months have been poisoning atmosphere and must inevitably lead to deterioration in relation between countries. I referred to failure of Czech Government to implement understandings arrived at between his so-called plenipotentiary Niederle and several of larger American claimants for compensation for nationalized properties. Gottwald replied that while he had seen occasional articles “critical” of U.S. he had not realized that they had been as numerous or as vicious as described by me. He said he was opposed to abusive adticles and felt that they should not go beyond what he described as “legitimate criticism”. I said we had no objection to legitimate criticism and to support my contention that many of articles have been abusive left with him an album containing twenty of worst articles. After glancing through a few of articles Gottwald assured me that he would take immediate steps to bring abuse to an end adding “but of course you must expect legitimate criticism”.1
On subject of claims for nationalized properties, Gottwald also suggested a global settlement. (See my 1555, November 202). I asked him whether if I could persuade Dept in course of my visit to Washington to accept a global settlement I could count on his wholehearted and unqualified support in putting any global settlement that might be agreed upon through Cabinet and Parliament without delay. He replied that if a global settlement is agreed upon which is satisfactory to both governments he would have it approved at once by his government.
Gottwald then inquired as to why no progress has been made in negotiating a commercial treaty and stated categorically that he desired a commercial treaty with US as soon as possible. I expressed my astonishment that he was not aware of fact that no action had been taken by his government on proposed draft submitted by Embassy [Page 247] to FonOff nearly six [two?] months ago.3 I said I had been trying for several months without success to extract from FonOff its comments and suggestions on our draft. Gottwald said he could not understand failure of FonOff to proceed promptly with negotiations. To this I observed that political tension within country had been so great during recent months as to have paralyzed action by many high officials of his government who feared criticism from political adversaries for any action they might take. I suggested he send a memo signed by him personally to all Ministries concerned with negotiations stating that as a matter of policy he desired a commercial treaty with US negotiated as quickly as possible and expressed confidence that such a memo would produce desired result. He said he would do so. At close of our talk Gottwald expressed concern at adverse balance of trade between Czechoslovakia and U.S. and suggested that this condition could be corrected to advantage of both countries by extension of credits. I replied by reciting more than 250 million dollars of gifts and credits extended by U.S. since end of war which I pointed out had brought us neither settlement of our claims nor a friendly press. We had made our gesture and that when our claims for nationalized properties had been settled, a commercial treaty negotiated and Communist press had discontinued its abuse of us for a reasonable period of time I would be prepared to recommend extension of further credits to Czechoslovakia but not until then.
- Telegram 1587, December 1, from Praha, not printed, reported that there had been marked improvement in the attitude of the Czechoslovak Communist press towards the United States since Ambassador Steinhardt’s talk with Prime Minister Gottwald (711.60F/12–147).↩
- Not printed. It reported that on November 19, Ambassador Steinhardt had conversed with Acting Foreign Minister Clementis on the failure of the Czechoslovak Government to settle the claims of those Americans whose property had been nationalized (740.00113 EW/11–2047).↩
- The reference here is to the United States draft of articles to serve as a basis for negotiating a treaty of friendship, commerce and navigation with Czechoslovakia. Regarding that draft, see instruction 1489, August 29, to Praha, p. 227; as indicated in footnote 4 to that instruction, the draft articles were made available to the Czechoslovak Government on September 22.↩