Foreign Relations of the United States, 1977–1980, Volume XX, Eastern Europe

102. Memorandum for the Files¹

Washington, undated

SUBJECT

• Ambassador Byrne’s Meeting with Senator Long, March 2

United States Ambassador to Czechoslovakia, Thomas R. Byrne, in the Department on consultation, met with Senator Russell Long (D., La.) on March 2 to discuss the linked issues of the return of the gold in the custody of the Tripartite Commission for the Restitution of Monetary Gold (looted by the Nazis during World War II) and the resolution of claims of U.S. citizens against the Czechoslovak Government for the nationalization of their properties after World War II.²

The United States and Czechoslovakia negotiated an ad referendum agreement in 1974 providing for payment of compensation to U.S. claimants in return for release by the U.S. of the Czechoslovak gold. Senators Long and Gravel, allegedly at the behest of some U.S. claimants dissatisfied with the amount of compensation provided for in the agreement, in effect repudiated it by amending the Trade Act of 1974 to provide for Congressional approval of any claims settlement agreement with Czechoslovakia before the U.S. could release its holdings of Czechoslovak gold. Since 1974, Senator Long’s position on appropriate compensation of U.S. claimants has changed several times.³ Last summer, Long supported Ambassador Byrne’s idea to discuss the claims/gold issue with the Czechoslovaks to learn whether it would be possible and appropriate to present them with a new proposal. Ambassador Byrne held discussions with Czechoslovak officials and returned in late February on consultation to attempt to obtain a commitment on a “ball-park” figure from Senator Long.

At their meeting, Senator Long told Ambassador Byrne that he wants a 100% settlement, which the Czechoslovak Government would almost certainly reject out of hand. In lieu of a 100% settlement, Long wants the U.S. Government unilaterally to vest the Czechoslovak gold in its possession and to use the proceeds to satisfy U.S. claimants. Long said this should cause the Czechoslovaks no real problem since, once this issue was out of the way, the road would then be clear for them to receive MFN and USG credits. According to Long, the value of MFN and credits for Czechoslovakia would far exceed the value of the lost gold. Such action would violate international law and our treaty obligations and would create serious difficulties with Great Britain and France, our fellow Tripartite Commission members, which have already agreed to the return of the gold to Czechoslovakia. Advised of the likelihood of such difficulties, Long recommended linking British and French acquiescence in vesting the gold to the status of the Concorde, implying that an amendment to a tax bill could effectively ban the Concorde. Long also reiterated that he would like to talk with the Secretary about this claims/gold issue.

1. Source: National Archives, RG 59, Office of the Assistant Legal Adviser for European Affairs, Country Files, 1950–1986, Lot 89D336, Box 11, Czech: Gold 74–78. Confidential. Drafted by Glenn on March 22; cleared by Schmidt.
2. In telegram 483 from Prague, February 23, Ambassador Byrne informed the Department that, during his trip to Washington for consultations, he would like to focus on the “major bilateral issue with the Czechoslovaks and the sine qua non for any eventual normalization of our relations, claims/gold.” Byrne reported that he was ready to discuss concrete steps forward both at the Department and during his consultations on the Hill. (National Archives, RG 59, Central Foreign Policy File, D780084–0073)
3. Following receipt of telegram 483 from Prague, February 23, Schmidt prepared a briefing memorandum for Luers on the history of the Czechoslovak gold/claims issue and the involvement of Senator Long. The memorandum suggested that it was essential for Ambassador Byrne to “obtain at least a ‘ballpark-figure’ commitment from Long” before negotiations with Czechoslovakia were to start again. (National Archives, RG 59, Office of the Assistant Legal Adviser for European Affairs, Country Files, 1950–1986, Lot 89D336, Box 11, Czech: Gold 74–78)