611.60F31/3–1445
Memorandum of Conversation, by the Assistant Chief of the Division of Commercial Policy (Phelps)
| Participants: | Mr. Emanuel Jan Hajný, Commercial Counselor, Czechoslovak Legation |
| Messrs. Fowler,80 Phelps and Hollis,81 CP |
Mr. Hajný called under telegraphic instructions from his Government to discuss the present status of our trade agreement with Czechoslovakia82 and the possibility of its being again brought into operation. He stated that, in view of the possible early liberation of the territory of Czechoslovakia and of the return home of his Government, his Government felt that consideration should be given to the future of the trade agreement between the two countries.
Mr. Fowler said that we had given some preliminary thought to this matter and that now in the light of his inquiry we would undertake to explore the problem more definitively. Mr. Hollis recited the present technical status of the agreement in so far as this Government is concerned, namely that the operation of the agreement had been suspended by presidential proclamation83 on April 22, 1939 (see Department’s Press Release no. 115 of March 23, 1939). Mr. Hajný seemed familiar with this but said that on the part of the Czechoslovakian Government the agreement was still legally in force. He suggested that his Government might give us a memorandum to this effect which would also raise more formally the question of again bringing the agreement into operation. In reply, it was stated that we would be pleased to receive and consider any memorandum which his Government might care to present on the matter.
Mr. Hajný expressed the hope that the agreement might be brought at least provisionally into force again to provide a contractual basis for trade relations between the two countries, including mutual assurances of most-favored-nation treatment, during the post-liberation [Page 538] transitional period. He added, however, that so far as the schedules of the agreement are concerned, the United States would for some little time be the principal beneficiary because Czechoslovak industries would not be in a position to export.
Mr. Fowler said that in addition to the legal status of the agreement there were certain policy aspects which we would need to consider, including the possibility of public hearings before another presidential proclamation might be issued bringing the agreement into force and giving effect again to the reduced United States duties provided for in the agreement. He also mentioned the fact that the existing trade agreements authority would expire next June and that we might wish not to take any action on the agreement until after the Congress had acted on a possible further extension of the Trade Agreements Act. Mr. Hajný wondered whether it might not be possible to bring the agreement into force again before June 12, 1945, the date on which the present trade agreement authority expires.
In conclusion Mr. Fowler repeated that we would undertake an examination of the problems involved and Mr. Hajný said that he would take up with his Government the question of submitting to us the memorandum referred to above.
- William A. Fowler, Chief, Division of Commercial Policy.↩
- Walter Hollis, of the Division of Commercial Policy.↩
- For text of the reciprocal trade agreement between the United States and Czechoslovakia, protocol, and accompanying notes, signed March 7, 1938, and the protocol of amendment, signed April 15, 1938, see Department of State Executive Agreement Series No. 147. For documentation regarding the negotiation of this agreement, see Foreign Relations, 1938, vol. ii, pp. 223 ff.↩
- For text of the proclamation issued by the President of the United States, March 23, 1939, terminating as of April 22, 1939, arrangements for the reciprocal trade agreement between the United States and Czechoslovakia, see Department of State Executive Agreement Series No. 147.↩