711.60F/11–1447: Telegram
The Ambassador in Czechoslovakia (Steinhardt) to the Secretary of State
1563. In conversation with Clementis November 21, he said that on instructions of PriMin he held conference the twentieth with Novy, editor-in-chief of Rude Pravo, Simone and Haluska (the two individuals who have been writing the most violent of anti-American articles), in course of which he had told them that while “legitimate criticism” of the United States, particularly insofar as concerns American policy in Germany, was permissible, abusive articles must be discontinued immediately. Clementis added that his directive was [Page 248] already in effect as would be apparent from examination of Rude Pravo today.
We then discussed the commercial treaty, and American claims for nationalized properties as well as our claim for illegally seized properties. He said he would endeavor to send to Embassy for transmittal to Department while I am still in Washington an alternative treaty which the Czech Government would approve.
As to our claims for nationalized properties, he emphasized desirability of a global settlement not only to bring to an end the interminable wrangling with respect to each individual claim large or small, but to avoid the issue of naturalization (nationalization] as well as question of German assets, to the extent that American claimants are demanding compensation for companies of German registration in Czechoslovakia. He said Czech Government was disposed to make a generous global settlement in order to bring matter to an end once and for all, and stated that he had been informed our govt was considering global settlements with Poland and Yugoslavia. He observed that if we could agree on the amount and terms of a global settlement, only problem then confronting Czech Government would be that of finding the necessary amount of dollars with which to make the initial payment. I replied that if a commercial treaty is consummated, and agreement is reached as to amount and terms of global settlement, and his efforts with. Communist press are successful, I would be prepared to recommend to my government the extension of a substantial cotton credit which would solve problem of dollars initial payment under global settlement, as in the absence of a substantial cotton credit it would obviously be necessary for the Czech Government to find many millions of dollars with which to finance its necessary purchases of cotton in the United States during the next year, and that these dollars would thus be freed for application to global settlement.