394.31/9–1751: Telegram
The Acting Secretary of State to the United States ( GATT ) Delegation at Geneva
Gatt 13. Tagg 7 Sept 17. Re exports Czech Commerce temporarily suspended effective September 5 all outstanding export licenses to Czech and has called them in for review. New applications being ret without action with notation they may be resubmitted if desired in 90 days. No general public announcement has been made. Action taken without fanfare here as part general tactics in Oatis case1 not show direct and overt relationship between Oatis case and economic sanctions. When queried reasons de facto export embargo should respond as follows:
“Combination circumstances has made suspension issuance export licenses unfortunately necessary. Czech has severely restricted size and activities US staff Czech. On this small staff has fallen great burden protecting Amer property and citizens and dealing with numerous problems which have arisen recently. Commercial work of lowest priority and staff has been instructed put this aside in order handle problems greater urgency. Consequently in present situation impossible get adequate info re end use on basis which export licenses could be issued.”
FYI (1) About Oct 1 similar action will be taken re Czech imports. Explanation again will be burden on Emb staff and unimportance commercial work in present trying circumstances. Treas prepared support this field action by instructing Collectors of Customs and informally thru them import trade and bonding companies that penalties will be imposed on importers who do not have certified Consular invoices on Czech goods to present at ports of entry. This penalty will be value of goods plus duty. This will not be complete embargo all imports. Czech goods entering on specific duty basis do not require Consular invoices hence will not be caught on this procedure; however relative value insignificant.
(2) Dept emphasizes these actions will not be announced as economic sanctions but will be regarded as unfortunate results extreme difficulties under which US staff operating in Czech. Will take line that we hope actions are temporary and improved situation could see them eliminated.
(3) Needless say, Czech Govt will be under no illusions as to purpose these actions.
Will tel soonest text Treas letter to Collectors well as repeat to you instr Emb Praha these subjects.