English Translation

Division V/1 - 5760 r m e k Subject: Processing of the former Czechoslovak-Turkish settlement agreement. 1.) Negotiations with the RwM on the liquidation of the protectorate balance in the Turkish special account of currently around 7.5 million K have been ongoing since summer 1994l. In addition, the Protectorate has long-term export claims to Turkey amounting to 137 million K, from denèn approximately 130 million K are secured by Turkish Treasury bonds in favour of Skoda plants ( 75 million K ) and the Bohemian-Mährische Maschinenfabriken ( 55 million K). Since these goods were mainly produced by arms supplies from former Czechoslovakia to Turkey, we have placed great emphasis on paying for the import of certain Turkish products into the Protectorate. A corresponding proposal, which also had the approval of the RwM, was submitted to the German-Turkish government negotiations at the beginning of October 194l. 2.) Since the authority of the Reichsprotector was not involved in these negotiations - as also in the later negotiations - by a more representative, our proposal could not be enforced. On the contrary, the Turkish Government submitted the draft agreement on the liquidation of the old clearing accounts from the Turkish-Czechoslovak settlement agreement of April 7, 1938, according to which the remaining assets of the Protectorate were to be transferred to the new settlement account A and thus included in the ongoing German-Turkish clearing traffic. This Turkish counter-proposal was rejected by us on 1 July 1942 against the RwM because, following a communication from the Czech-Moravian import and export office for products of the food and agricultural sector to resolve the existing clearing balance of the Protectorate, the following firm transaction was concluded in principle: