660F.116/126: Telegram
The Secretary of State to the Minister in Czechoslovakia (Wright)
50. Your 75, December 22, 11 a.m. The Department does not understand upon what basis the Czechoslovak Government considers itself justified in seeking to bring within the scope of its clearing arrangements with Germany a percentage of the value of invoices covering shipments of American goods to Czechoslovakia under contracts between American and Czechoslovak principals. The effect of such procedure would be to compel the American exporter to receive a part of the invoiced price of his shipments to Czechoslovakia in German currency within Germany. The Department’s concern over this development, for which it knows of no precedent, is heightened by the disturbance it would cause to an established trade of substantial size and by the retroactive character assumed by its application to contracts concluded before the date of the pertinent Czechoslovak decree.
The Department therefore desires you to seek an early interview with a responsible official of the Czechoslovak Government to obtain a full and clear exposition of the basis upon which the Czechoslovak Government relies to justify its action. Submit early telegraphic report.