49. Telegram From the Department of State to the Embassy in Czechoslovakia 1

173162. 1. Duda called on Stoessel April 11, on instructions his Government, to reiterate Czech position re gold. Indicated some disappointment with US interim reply March 252 and expressed hope that forthcoming proposals by US would be “positive.” Stressed that GOC regarded US position on gold as yardstick by which sincerity of various other US pronouncements re relations with Czechoslovakia would be judged. Duda emphasized Czech view that US position linking gold with claims settlement indefensible on legal and moral grounds.

2. Stoessel explained that we were reviewing our position and intend offer constructive proposals soon. He said we wish to see problem settled but pointed out negotiating history shows both sides have recognized gold and claims were linked and that it is in our mutual interest to work out solution to claims problem which would be defensible to Congress and the public.

  1. Source: Department of State, Central Files, FN 19 CZECH. Confidential. Drafted by Phelps, cleared by EE and Stoessel, and approved by Stoessel.
  2. See footnote 5, Document 47.