800.51W89 Czechoslovakia/229
Memorandum by the Acting Secretary of State
The Czechoslovak Minister called to open up with me the question of the instalment on the debt owed by his Government to the United States on December 15th. He referred to the sum total annual payment due as $3,000,000 and, therefore, $1,500,000 was due in December; he referred to the fact that last June the payment made on account of the debt amounted to $180,000 and was paid in silver; inasmuch as it was no longer possible to make payment in silver, he offered $150,000, payable in bonds. I raised the point that, with the favorable exchange on the dollar, it would look far better for the Government of Czechoslovakia [Page 858] to make its payment equal to that made last June; that if the offer was limited to $150,000, there would have to be explanations as to why we received a lesser sum in December, etc. etc. I said that the sum was so small, that the difference between the two amounts, being only $30,000, it was inconceivable to me that his Government could not come forward with the same offer as was made last June.
The Minister said that he would refer the matter to his Government and would come to see me again on Monday next. He expressed the hope that the sum of $180,000 would be acceptable and, if so, he would bring with him a draft note notifying us of the payment to be made.