THE LION WITH TWO TALES: CZECHOSLOVAK ECONOMIC AND FOREIGN POLICY-MAKING AND ITS IMPACT ON U.S. RELATIONS, 1919-1929 DISSERTATION Presented in Partial Fulfillment of the Requirements for the Degree Doctor of Philosophy in the Graduate School of The Ohio State University By Donald Allen Hempson, III, B.I.E., M.A. ***** The Ohio State University 2006 Dissertation Committee: Approved by Professor Carole Fink, Advisor Professor Peter L. Hahn ____________________________________ Advisor Professor Mansel G. Blackford Graduate Program in History Copyright by Donald Allen Hempson, III 2006 ABSTRACT The relationship between the United States and Eastern Europe is often neglected in the scholarship of interwar international studies. This gap is all the more pronounced given the parallels that exist in the region between the events of the 1920s and the past decade and a half. Following the collapse of communism in 1989, Eastern Europe once again became the focus of Western statesmen and businessmen interested in integrating and stabilizing the region which had long been dominated by an imperial power. The U.S.-Czechoslovak relationship in the 1920s offers a case study for understanding the role policy formulation played in some of the problems of integrating the small states of Eastern Europe into the broader scope of European and even trans- Atlantic affairs. Specifically, this dissertation examines the connection between foreign policy formulation and economic decision-making as it related to U.S. capital investment in Czechoslovakia in the 1920s. By analyzing the effectiveness of Czechoslovak policy-makers to use the relative industrial and economic strength of their state as a tool in their efforts to secure diplomatic and economic patronage from the United States, this study provides a more robust understanding of Eastern Europe’s significance in world affairs. Also, it illustrates the importance of the historical legacies that continue to shape the relationship between Eastern Europe and the Western power establishment. Finally, this dissertation ii challenges traditional interpretations of U.S.-Czechoslovak relations and contributes to an emerging dialogue among scholars concerning how best to integrate the material found in the increasingly accessible archives of Eastern Europe. iii Dedicated entirely to Mom and Dad. Děkuju mockrát. iv ACKNOWLEDGMENTS This dissertation would not have been possible without the aid and support of numerous individuals and institutions. I am indebted to their generosity, guidance, encouragement, and assistance. In the course of completing this project I have been introduced to many amazing people and my acknowledgement of their contributions is but small compensation for their efforts on my behalf. Professor Carole Fink deserves highest praise and grateful acknowledgement for her guidance and intellectual support throughout this dissertation process. The breadth of knowledge and level of expertise she brings to any endeavor is truly humbling. She repeatedly encouraged a more international approach to what began as an East European project and provided critical insights and gracious encouragement throughout the writing process. Professor Mansel Blackford graciously offered his guidance on this project. If this study in any way contributes to the broader scholarship in business history, it is to his credit for his honest and constructive critiques. Likewise, Professor Peter Hahn deserves recognition for his assistance with the U.S. foreign policy issues addressed in this study. My many colleagues at The Ohio State University deserve recognition for their support and tolerance. I maintain their anonymity, but they know who they are. They reviewed, critiqued, counseled, and occasionally celebrated numerous revisions to this v work. Few will forget the tiny nation I study and though they may not admit it for many years, they are the better for it. The faculty at DePaul University set me on the path to becoming a professional historian and I remain forever grateful. Critical professors such as Al Erlebacher and Jim Krokar have become trusted colleagues and cherished friends. I hope they can find pride in the work they helped initiate. My research enjoyed funding from a number of institutions who deserve acknowledgement for their confidence in my project and the financial assistance they provided as I visited wonderfully varied locations combing archives in search of supporting material. The Department of History, the College of Humanities, the Center for Slavic and East European Studies, and the Mershon Center for International Security Studies at The Ohio State University all contributed much appreciated funds toward this endeavor. East European Studies at the Woodrow Wilson International Center for Scholars in Washington, DC not only provided funding for research in DC area archives, but provided an amazing backdrop against which to shape my work. Their Junior Scholars’ Training Seminar provided an unrivalled platform on which to present and articulate my research objectives. Without a doubt, my association with this wonderful center of scholarship has broadened my horizons and added texture to my work. Over the past seven years the staff and archivists at the National Archive and Records Administration in College Park, Maryland have assisted in my search for supporting material in the records of the United States government. Likewise, the staff of the Special Collections Division at the Georgetown University Library were vi indispensable in accessing the personal papers of Richard Crane and Charles Pergler. Both institutions and their respective staffs made my numerous trips to DC rewarding and productive. I wish to acknowledge Mr. Paul Nemecek of the Czechoslovak Heritage Center in West Springs, Illinois. His kind assistance in accessing the records of the American- Czechoslovak Chamber of Commerce is very much appreciated. He graciously opened his rare collection of documents and artifacts on short notice and shared his joy and enthusiasm for the many contributions of the Czech-American community in Chicago. Few scholars of Czechoslovak history find an occasion to visit Laramie, Wyoming, but they would be richer for the experience. Ms. Kim Winters and the rest of the staff at the University of Wyoming’s American Heritage Center were incredibly helpful. They made my brief visit to examine the Lewis Einstein Papers both pleasant and rewarding. Mr. Matthew Darby at the University of Texas at Austin’s Center for American History was immensely helpful in identifying and accessing elements of the ExxonMobil Historical Collection relevant to my research. My time researching in the National Museum Archive in Prague was a wonderful reminder of the more intimate aspects of archival research. This small facility that can accommodate only six researchers at a time provided a ready source of material on Edvard Beneš, Karel Engliš, and Alois Rašín. I will be forever grateful to the cheerful staff for their warm smiles and kind assistance. No amount of praise can suffice for the staff of the State Central Archives in Prague. Their professionalism and compassion for a researcher far from home made vii possible the core of my dissertation research. For months on end they tolerated my questions, my accent, my constant requests to scan documents, and my numerous recalls. They added dimension to my experience and graciously aided my search through many tired old documents. The people of Prague and Olomouc were endearing hosts during my many visits for study and research. The beauty of the Czech language and the distinct magic of the Golden City never cease to amaze me and constantly draw me to return. Prague was my first exposure to Eastern Europe and it has never lost its allure nor its mystique. Děkuje Vám. I reserve the final and most important acknowledgements for the truly special individuals who share in the accomplishment this project represents. My family has been and continues to be my strength, my inspiration and my support. They deserve particularly special recognition and my most heartfelt appreciation. The remainder of this acknowledgement is addressed to them. Granddaddydo, you were not able to read this finished dissertation, but you never doubted its completion. You were with me in my travels and that wonderfully crooked smile of yours stared down over me daily. Your voice was heard in every draft and your presence is felt with every turn of the page. No words can suffice. You are missed. Ni, the pride in your voice during our frequent conversations always lifted my spirits. Whether over the phone, a cup of tea, or a serving of strawberry ice cream, our time together has inspired and comforted. What would this process have been without your gentle prodding and daily prayers? viii Grammy, your quiet love and pride were a constant source of comfort during this long process. You readily shared anecdotes and provided tangible connections to our family’s Slavic roots thereby allowing Poppop’s memory to become part of this project as well. You were with me in spirit on every trip to Poland and I thank you from the bottom of my heart. Kelley, you kindly opened your home to me on countless research trips to Washington, DC. I will always cherish the memories of the visits that coincided with my research, both at home and abroad. Da, no acknowledgement is sufficient. You first introduced me to the magic of Eastern Europe and continued to foster my interest in that wonderful region. Our endless conversations