fELEGRAM ~epartment ofSta' 2' ~ . 85 Action Control: 15032 Rec'd: November 18, 1964 EUR FROM: Prague 1~34 p.mo Info ACTION: Secstate 675 Pr;Lo::ity DECLASSIFIED SS E.O. 12958, Sec. 3.6 G DA.TE~ Novem.ber. :ls;· 5 pom. NL.J '17-IS7 SP By~ ,NARADatelP-4/J~ 0~ L H We have been asked for coanent on Department's working draft of--J/ p response to NSAM .304'..on US relations with EE and have studied papers carefully. cu USIA Main. policy , paper.an& annexes for dealing with specific issues ~ (so far as they apply. to Czechoslovakia) all .strike us as extr­CIA emely well conceived and as offering excellent absis for ·broaden­NSA ing relations and extending US influence is support of larger DOD policy objectives. We can suggest no impxovement in these papers. NIC AID Tab O on Czechoslovakia seems somewhat dated but is perhaps ad­E equate for puropse. lf time permits it might give more .optimistic view particularly of what has been happening in ';t'ecent months. RMR I would say leadership has been successful rather than ''unsecc­ essful" in coping Jdth dissident intellectualism. They have brought dissent into manageable bounds by persuasion and occasional use of economic sanctions, but without anyone goiug to jail, so far as we know. N•ti-1 seatiment in Slovakia ta also under control for ti.tne beina, although it of course contributed sub­stantially to intelleetual f82!1Dent of past 18 months. There might also be reference to Deforms which oaw &e'elD certain ta be iaple­mented Ol!l mo:e far-~ing scale than, •o ifar •• we mow, in auy other 'EE cou ~e11ent time. tbluk clao :tMt: refer­euce to "growing t party factionattam" i bat exaggerated. There are undoub l e~s of rat~, t, ideology and st,yle1 •Dd then will be further cba~es :lo ~tme, but our policies are beat kHd cm conce.ft that there i• aubatantial cQheaion within 1 lli·RM"""""" An important S~ill Tab O (CZECH), paragraph 6 gives in accurate picture of reality in field of cultural exchanges. We have accomplished far more than this section suggests. Incidentally, sentence on Ford Foundation is incomplete. We are µot sure what reference to "off-· ici.al exchanges" means but note that there have been number of t~teJ:­es~ing CZECH proposals.to which we have not been able to respond affi=matively (EMBTEL 529 refers to. some) and that a number of others on both sides have not cogadlnd* action for variety of reasons. ::..~ w... ong in any case to give impression that there have been no . nronosals. There has been increased activity in all .fields ben­~fi~ial to US national interest, and future promises many mo~e · opportunit;Les. in -3-675, November 18, 5 p.m.~ From Pzag~e Max FrBlnkel article in. NEW YORK TI~S of November 4 gave impression CZECH officials were thinking of o:~~te-p~ck.~ge coumercial-consular­cultural agreement. I.believe, however, that this was misunder­ standing and that.what CZECH officials wie;:ce referring to was one­package agree::nisnt on aco~1omic-claims-fi'lta.ncial-trade matters, which is now virtua~ly ready for signatu~e and, as reference papers and ou~ mes~age~ have frequently made p1ai~, is a prerequisite to expansion of relationship in other .fields. I believe we shall make more progress by· not attempting to link too many unrelated s11 bjelcts directly together, although P=·ogress in things they want will obviously be related to things we wa~t. Group 3. HORSEY NAR/9 * as received, will service upon request