STRAIN EASED

Evening Star, Issue 25956, 22 November 1946, Page 7

STRAIN EASED

U.S. AND CZECH RELATIONS LOAN TALKS MAY BE REOPENED WASHINGTON, November 20. Czecho-Slovakia conditionally agreed to support the American programme for modifying international trade barriers and also pledged to make “ adequate and effective ” compensation for American property taken over for the purposes of nationalisation. The United Press says that the development eases the strained relations between America and Czecho-Slovakia, and possibly clears the way for reopening the talks on the subject of a 50,000,000-dollar loan which were suspended when Czecho-Slovakia supported the Russian statement that the United States was seeking the economic enslavement of the smaller countries through its lending programme. The American and Czecii Governments have now agreed shortly to begin negotiations for a comprehensive treaty of friendship and commerce. Czecho-Slovakia agreed that it_ will not engage in policies of favouritism to particular countries such as the Soviet, which has special agreements with Balkan countries. Czechoslovakia also agreed not to engage in barter arrangements after a transition period. The ‘ New York Times ’ correspondent in Washington says that diplomatic circles consider the agreement of far-reaching importance in the struggle between the West and the East over world economic policies. They do not regard it so much as a victory for the United States as an encouragement that other nations will subscribe to the same programme, and that eventually Russia will join a' world trade conference.