800.51 W 89 Czechoslovakia/51

The Chargé in Czechoslovakia (Pearson) to the Secretary of State

No. 436

Sir: Referring to my telegram No. 23 of April 30, 4 p.m. that the Minister for Foreign Affairs had informed me that the Debt Commission had been empowered to negotiate concerning the repayment of the Czechoslovak indebtedness to the United States, I have the honor to transmit herewith copies of Dr. Beneš note to that effect, as well as of the Pleins Pouvoirs16 authorizing the Commission to settle the amount of these debts. It will be observed that the Pleins Pouvoirs do not empower the Commission to discuss the terms of repayment. Dr. Beneš personally informed me that this Commission was intended to obviate any confusion which might arise from including, in a document granting “full powers”, conditions limiting those powers.

Dr. Beneš states in his accompanying note that the Czech Commission is authorized to negotiate the conditions of repayment but that the result of these negotiations must be subject to the approval of this government. This approval, as set forth in Dr. Beneš’ Aide Memoire transmitted with the Legation’s despatch No. 400 of March 22nd,17 depends in part on the consent of the French and Italian Governments. To my inquiry whether this consent had been given Dr. Beneš stated that the Italian Government had not yet replied and that the French had requested time for further deliberation.

I expressed to the Minister the gratification of the United States Government at the decision reached, adding that I sincerely hoped nothing might interfere with the conclusion of an arrangement which would be satisfactory and advantageous to both countries. He expressed similar sentiments and declared that it was probable that Mr. Jan Masaryk (see Legation’s despatch No. 424 of April 17th16) might be added to the Commission when negotiations for repayment began.

. . . . . . . . . . . . . .

I have [etc.]

Frederick F. A. Pearson
[Page 880]
[Enclosure—Translation18]

The Czechoslovak Minister for Foreign Affairs (Beneš) to the American Chargé (Pearson)

Mr. Chargé d’Affaires: I have the honor to send you herewith copy of the full powers which has been furnished the Czechoslovak Financial Commission now on its way to the United States. In sending it to you I have the honor to inform you at the same time that, outside the competence which is defined by the full powers, the Commission is authorized to negotiate, subject to the reserved approval of the Czechoslovak Government, the conditions for a general settlement of our debts to the United States, and with the reservation that all the advantages which may be eventually granted in later negotiations with the other Allied States in the matter of the inter-Allied debts may be likewise accorded, notwithstanding the present arrangement, to the Czechoslovak Government.

In requesting you, Mr. Chargé d’Affaires, to bring the foregoing to the knowledge of your Government, I have [etc.]

Dr. Eduard Beneš
  1. Not printed.
  2. Not printed; see the Legation’s telegram of Mar. 21.
  3. Not printed.
  4. Supplied by the editor.