Office of the Historian
No. 717

249.1111–Oatis, William/11–2251: Telegram

The Acting Secretary of State to the Embassy in Czechoslovakia 1

top secret
priority
Washington, November 24, 1951—1:51 p.m.

275. Gratified learn progress your second conversation with Siroky (Embtel 410 Nov 222) and pleased with your conduct discussion which provides rather definite evidence Czech regime desires settlement Oatis case. As we view counter proposal primary interest Czechs is apparently obtain withdrawal our measures prevent exports to US and Siroky may well have included point 2 on steel mill as maximum demand to get if he cld but not as essential element for release Oatis. Siroky’s dropping demand solution CSA question simultaneous with exchange prisoners seems to us significant move forward and indication Czechs actually wish dispose case. Recognize of course steel mill and GATT questions may cause difficulty. View these considerations suggest fol counter proposal in addition to exchange prisoners as indicated:

1.
Discontinuance at time exchange measures involving consular invoice procedure which prevents bulk Czech exports US (FYI this wld not include relaxation other restrictive steps connection with anti-dumping investigations).
2.
Fol exchange US wld negotiate with view to resumption CSA overflights on basis status quo ante (FYI not including permission on annual basis or authorization Frankfort-Zurich flights), keeping in mind that this matter also involves Fr and Brit.
3.
As to Siroky’s point 2, it must be made clear no Czech assets have been frozen in US although not possible since Mar 1948 to export strategic items such as steel mill from US to any EE country. No possible way therefore to authorize mill shipment to Czech. Question steel mill unrelated to Oatis case but if Czechs wish to consider this as aspect of a broad settlement of finan claims between two countries, US wld agree discuss after exchange disposition proceeds from any sale steel mill in relation to problem compensation US claimants for natlized property. Such broad settlement fol solution Oatis case wld make a solid contribution to improvement in relations between two countries.3
4.
US believes problems concerning GATT and termination obligations between US and Czech under GATT cannot be settled at this time. US position on this issue taken for host of reasons of [Page 1429] which treatment of Amer natls in Czech only one. US required moreover under Trade Agreements Extension Act 1951 to suspend concessions made in trade agreements with EE countries including Czech.

While appreciate Czechs have denied three Fields4 in Czech and we wld not want insist inclusion to extent jeopardize other cases, hope you may also include them in preparing US list prisoners for exchange even if we ultimately have to withdraw them.

Comments fol on urtel 411 Nov 235 recd subsequent drafting above.

Webb
  1. Drafted by Vedeler (EUR/EE) and approved by Barbour (EUR/EE), Bonbright (EUR), and Matthews (G).↩
  2. Supra.↩
  3. Supplementary instructions on this point were transmitted to Praha in telegrams 276, November 24, and 278, November 26. (249.1111–Oatis, William/11–2351 and 11–2651)↩
  4. U.S. citizens Noel, Herta, and Hermann Field disappeared in Eastern Europe in 1949.↩
  5. See footnote 4, supra.↩