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United States Department of State / Foreign relations of the United States diplomatic papers, 1937. The British Commonwealth, Europe, Near East and Africa

Czechoslovakia,   pp. 238-258 PDF (7.3 MB)

Page 247

  Six questions were discussed, as follows:
  1. Mr. Culbertson carefully reviewed the proposed draft general
provisions, with Mr. Kabelac, article by article, explaining the general
objectives of each clause. He emphasized the importance of the
articles on quantitative restrictions, exchange control, monopolies, et
cetera. After asking several questions, Mr. Kabela'c declared himself
satisfied (a) that he understood the reasons for the various clauses,
and (b) that he would be able to explain our general position to the
Foreign Office in Prague.
  2. Mr. Culbertson then discussed the question of Danubian pref-
erences, commenting especially on the fact that recognition of such
preferences by us would constitute a definite exception to our general
and well-established policy of unrestricted and unconditional most-
favored-nation treatment. He repeated that we hoped preference was
a temporary situation, and stated that our recognition thereof held
no permanent policy connotations. Following the outline of the
attached memorandum, he then elaborated a little on the various por-
tions thereof to be sure that Mr. Kabelac understood our approach to
the problem. A copy of the memorandum was given to Mr. Kabelac,
with the definite understanding that it was wholly informal and that
it involved no commitment, as our policy has not yet been decided.
  3. Mr. Kabelac was then presented with a copy of the list of
articles '9 which it is hoped to publish at the time of the public notice
of intention to negotiate a trade agreement with Czechoslovakia. Mr.
Kabelac is to take this list to Prague and telegraph to his Legation in
Washington his Government's reaction.20 If there is no objection to
the list on the part of Czechoslovakia, public notice will be issued as
soon as possible.
  Mr. Culbertson called attention to the fact that beer is included in
the list. He voiced his. fear that its inclusion might be misinterpreted
by the brewing interests in Czechoslovakia, and asked Mr. Kabelk6
to make it very plain in Prague that such publication did not mean
that a concession would necessarily be granted. Mr. Culbertson ex-
plained that the Secretary had tentatively approved its inclusion,
but that the whole list was subject to change if necessary; assuring Mr.
Kabelac, however, that any changes in the list itself would be tele-
graphed to Prague for discussion with the Government of Czecho-
slovakia prior to publication.
  Mr. Culbertson also remarked that the wording of the first page,
in particular, was still subject to change, but that any such changes
would not affect the substance of the paragraph.
  9 Department of State, Press Releases, September 4, 1937, p. 197.
  " The Czechoslovak Legation informed the Department on August 25 that
Czechoslovak Government agreed to the public announcement of intention to
negotiate and to the publication of the list.

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