860F.5034/1–3046: Telegram
The Ambassador in Czechoslovakia (Steinhardt) to the Secretary of State
[Received January 30—11:08 p.m.]
153. In note dated January 25 Czech Foreign Office states its position on nationalization of certain Czech industries which is summarized as follows:
Presidential decrees of October 24, 19456 which were in uniformity with the will of the great majority, were brought about by the economic losses resulting from enemy occupation, making state intervention inevitable.
Compensation to former owners for losses through nationalization of their properties is to be provided without discrimination between Czech and foreign subjects and it is not the intention of the Czech Government to treat the latter worse than local subjects or concerns.
The Government has already taken measures to ascertain the value of nationalized concerns in which there is foreign capital. It asks the assistance of the Embassy in obtaining as soon as possible a complete list of concerns in which American interest exists, giving amounts together with exact data as to when interests were acquired and present value.
When the amount of compensation is known the Czech Government, on the basis of full reciprocity, will be ready to begin negotiations with US Government regarding manner of payment. It anticipates that [Page 181] there may be a difference between cases representing genuine foreign investments and those which are really an export of Czech capital.
Czech Government does not intend to seclude itself from economic cooperation with other countries. It believes that the measures will induce full and lasting employment, prevent the restrictive activities of cartels and contribute to expansion of world trade. It is ready to enter negotiations with other governments toward cooperation in industrial and other spheres and believes there are possibilities for mutual benefits.
Czech Government desires economic development and observes that the question of compensation depends partly on the facilities granted to Czech export trade inasmuch as present decrees provide that compensation will be paid from special fund accruing from surplus profits of nationalized concerns.
Note concludes with hope that US Government will consider Czechoslovakia’s difficult economic and financial situation caused by 7 years of enemy occupation and that it will contribute toward solution of the questions connected with nationalization in spirit of friendly understanding.
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