7. Telegram From the Department of State to the Embassy in Czechoslovakia0
290. Embtel 306.1 Agree trade question of basic importance to Czechs. We have always considered proposed agreement essentially designed settle claims and other outstanding bilateral issues but have indicated that resolution these problems would contribute improved atmosphere more conducive expanded trade relations.
Trade problem not so much matter bilateral US-Czech relations as reflection general international situation. Offer trade office and statement indicates our willingness take certain steps within limits imposed by general situation to improve bilateral trade relations. We willing confirm commitment re trade office and statement but are unwilling incorporate trade article in agreement as Czechs insist.
[Page 12]Reasoning third paragraph Embtel 2932 in response Czech reference 1959 draft is sound. Czechs rejected our offer which now superseded by pattern set in Rumanian and Polish agreements. We see no reason single out Czechs for special treatment, particularly since claims settlements with Rumanians and Poles more favorable than that envisaged in Czech agreement. We desire also keep Article 1 of “Principles”3 out of agreement in view Czech effort use every conceivable peg in argument for MFN.
We have never considered that every article in “Principles” would be included in final agreement or that “Principles” so intended. Our argumentation keep reference to Treasury’s 6554 out of text of articles might be used illustrate this point.
Suggest working sessions continue on other problems while issue Czech demand for inclusion reference trade office and statement in agreement left for Ambassador–Hajek discussion on side. If in your judgment other questions can be resolved (army crown account, claims, etc.) you may find advantageous opportunity mention that along with Aide-Memoire confirming commitments Article 1 of “Principles” to issue trade statement and permit establishment commercial section of Embassy in NY (trade office) we prepared adjust phrase “desiring … countries” in preamble US draft to read “desiring to resolve certain questions pertaining to mutual economic relations and to effect a settlement of outstanding financial issues between the two countries.”5 While we would like agreement concluded nearest future fail see how we can go beyond this in attempting meet Czech position.
- Source: Department of State, Central Files, 611.494/1–2962. Confidential; Priority. Drafted by Katz, cleared in EE, and approved by Vedeler.↩
- Telegram 306, January 29, offered the Ambassador’s views on negotiating strategy on trade and related issues. (Ibid., 611.4941/1–2962)↩
- Telegram 293, January 19, reported on U.S.-Czech discussions on a trade agreement. (Ibid., 611.494/1–1962)↩
- A statement of principles regarding the settlement of claims and other economic problems was signed in Prague by Ambassador Wailes and David on December 8, 1961.↩
- Not found.↩
- Ellipsis in the source text.↩