Foreign Relations of the United States, 1952–1954, Eastern Europe; Soviet Union; Eastern Mediterranean, Volume VIII

749.00/7–753: Telegram

No. 35
The Ambassador in Czechoslovakia (Wadsworth) to the Department of State

secret

Praha, July 7, 1953—7 p.m.

14. Reference Deptel 4, July 6.¹

1. Embassy has also been inclined view recent Eastern European developments as described paragraph 2 reftel with additional factor Sovietization being slowed down in deference mounting discontent and unrest. From here it appears new Soviet government more flexible than Stalin and events East Germany and Hungary suggest possibility have ordered changes in satellites along lines new economic plan of mid-twenties.

2. Today’s local press announced first real relaxation restrictive measures Czechoslovakia since 1948 Communist coup. Central Trade Union Council allegedly requested cancellation provision in last week’s decree against absenteeism and labor turnover (Weeka 27, July 3²) directing certain cases be referred public prosecutor for final prosecution. Government yesterday afternoon cancelled entire decree and agreed make trade unions responsible control absenteeism and turnover. This cancellation recent repressive measures (which were contradictory [garble] in other satellites) undoubtedly reflects Kremlin prompting. While Embassy considers it significant move possibly presaging further relaxations, cancellation one unpopular decree cannot be compared fundamental changes government program as announced in East Germany and Hungary.

3. Rumor now current Prague many former small entrepreneurs recently asked if in position reopen private retail outlets and small establishments manufacture consumer goods. When negative reply given because confiscation stocks and loss savings in monetary reform government allegedly said would be willing advance credit and materials. Failure regime carry out plan completely socialize medical profession, forbid all private practice, and nationalize all equipment middle last week, reported by Embassy by well-placed and usually reliable source, could also indicate slowing down socialization.

4. Regime undoubtedly now has situation in Czechoslovakia in hand, but discontent continues. Shortages foodstuffs and all types consumer goods still exist, prices are exorbitant and losses suffered in monetary reform still rankle population. No reason believe any strikes or disturbances have occurred last two weeks and recent observations members Embassy staff Pilsen and Bratislava area, as well as Prague, confirm all quiet. Good source reports some decreases absenteeism Prague factories as workers under greater economic pressure keep incomes high as possible.

5. As reported Embtel 3, July 1³ basic political and economic situation here is same as before monetary reform but aggravated by recent disturbances. Chronic popular discontent has taken over and bolder form in some instances as result monetary reform, but based on our observations situation now practically normal.

6. As to how, when, and where, of discontent see particularly Embtels 551, June 5; 561, June 10; 565, June 10; 566, June 11; 567, June 12; 574, June 19.⁴

Wadsworth

1. Supra.
2. Reference is to telegram 8 from Praha, not printed. (749.00(W)/7–353)
3. Telegram 3 reported that shortage of foodstuffs and worker absenteeism had been aggravated by the monetary reform. (749.00/7–153)
4. Telegrams 551 and 561 are not printed. (749.00(W)/6–553 and 849.13/6–1053) Telegram 566 is printed as Document 31. Telegram 565 summarized newspaper reports that unrest had occurred in Moravia (849.13/6–1053); telegram 567 reported instances of worker opposition to the currency reform (749.00(W)/6–1253); telegram 574 reported worker absenteeism and strikes in response to the currency reform. (749.00(W)/6–1953)