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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 253

removal of artificial trade barriers and that you desired Czechoslo-
vakia to make a contribution by modification of her import permit
requirements and suppression of quantitative restrictions on a limited
number of articles. He replied that in principle he favored this but
in practice it was impossible in view of the economic position of
Czechoslovakia's neighbors mentioning Germany and the central and
southern European countries which necessitates trade being conducted
on a controlled exchange basis through import permits and quantita-
tive restrictions. Hence, he said it was absolutely out of the question
for Czechoslovakia to give up this system. He had no report from the
delegation and if none comes will telegraph for one today.
  Your telegram relates to suppression of import permits and quanti-
tative limitations whereas confidential memorandum enclosed with
your 209 of September 15, 1937,23 seems to relate to suppression of im-
port permits on certain items but not to suppression of quantitative
limitations. Foreign Office view except as to permits does not there-
fore conflict with confidential memorandum as we understand. Please
611.60F31/533: Telegram
  The Minister in Czechoslovakia (Carr) to the Secretary of State
                                PRAHA, December 18, 1937-1 p. m.
                                              [Received 1: 55 p. m.]
  74. My No. 73, December 14,4 p. m. At his request I discussed with
Minister Friedmann yesterday report just received from Czechoslovak
delegation. He confirmed surprise of delegation at changes which
they claim United States has injected into negotiations amounting
to cancellation of part of original demands and substitution of others.
He said this Government had assumed that only matters to be con-
sidered were Czechoslovakia's original list and that of the United
States with memorandum of August 9, 1937,24 in which commodities
were divided into three groups according to treatment to be requested.
This view was further strengthened by refusal of the Department to
include for negotiation new demands of Czechoslovak industrialists
submitted in September by Legation in Washington. He feels now
that if change in the American demands prove to be substantial,
Czechoslovakia will find it necessary to review her entire position and
possibly enlarge her original demands. The report of the delegation
is not sufficiently lucid to enable him to decide upon course to be fol-
lowed and further report has been requested.
  S Instruction not printed; memorandum not found in Department files.
  24 Memorandum not found in Department files.

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