Background Notes: Czechoslovakia
PA/PC
Source: Office of Public Communication, Bureau of Public
Affairs
Date: Feb 15, 19902/15/90
Category: Country Data
Region: Europe
Country: Czechoslovakia (former)
Subject: Travel, History, International Organizations,
Trade/Economics
[TEXT]
[Please note: This Background Note should be used for historical
purposes only, as the country of Czechoslovakia has undergone
dramatic changes since 1990]
Official Name: Czechoslovak Socialist Republic
PROFILE
Geography
Area: 127,896 sq. km. (49,381 sq. mi.); about the size of New York.
Cities: Capital-Prague (pop. 1.2 million). Other cities-Bratislava
(413,000), Brno (385,000), Ostrava (327,000), Kosice (220,000),
Plzen (Pilsen-175,000). Terrain: Rolling area in wet, low
mountains to the north and south, hills in the center, rugged
mountains in the east. Climate: Temperate.
People
Nationality: Noun and adjective-Czechoslovak(s). Population
(1988): 15.6 million. Annual growth rate: 0.25%. Ethnic groups:
Czech (64%), Slovak (31%), Hungarian, Polish, Ukrainian, German.
Religions: Roman Catholic, Protestant, Orthodox, Jewish.
Languages: Czech, Slovak, Hungarian. Education: Literacy-99%.
Health: Life expectancy-males-67.5 yrs; females-75 yrs. Work
force (7.8 million): Agriculture-14%. Industry, construction, and
commerce-64%. Services and government-22%.
Government
Type: socialist republic. Independence: Czechoslovak state
established 1918. Constitution: July 11, 1960 (being redrafted
during 1990).
Branches: Executive-president (chief of state), prime minister
(head of government), cabinet. Legislative-bicameral Federal
Assembly. Judicial-Supreme Court (1960), Constitutional Court
(1968).
Political parties: With free parliamentary elections set for 1990,
many new parties are emerging to challenge the Czechoslovak
Communist Party for power. Suffrage: Universal over 18.
Administrative subdivisions: Two semiautonomous "republics"-
Czech Socialist Republic (Bohemia, Moravia), Slovak Socialist
Republic (Slovakia); 10 administrative districts and 2 city
administrations.
Defense: 7% of 1987 state budget.
Flag: A blue triangle extending the length of the staff side, with its
apex toward the center, a white band on the upper half of the
remaining space, and a red band on the lower half.
Economy
GNP (1987): $107 billion. Annual growth rate (1987 est.): 2.6%.
Per capita income (1987): $6,900.
Natural resources: Coal, coke, timber, lignite, uranium, magnesite.
Agriculture (7% of GNP): Products-wheat, rye, oats, corn, barley,
potatoes, sugar beets, hogs, cattle, horses.
Industry (60% of GNP): Types-iron and steel, machinery and
equipment, cement, sheet glass, motor vehicles, armaments,
chemicals, ceramics, wood, paper products.
Trade (1987): Exports-$8.4 billion: machinery, iron and steel,
chemicals, raw materials, consumer goods. Imports-$8.4 billion:
machinery, equipment, raw materials, consumer goods. Partners-
Austria, Bulgaria, East Germany, West Germany, Hungary, Romania,
Soviet Union, Yugoslavia.
Exchange rates (January 1990): 38 crowns=U.S. $1.
Membership in International Organizations
UN and its specialized agencies, Council for Mutual Economic
Assistance (CMEA), Warsaw Pact.
GEOGRAPHY
Czechoslovakia borders on Poland and East Germany to the
north, the Soviet Union to the east, Hungary and Austria to the
south, and West Germany to the west.
Czechoslovakia's three principal regions are Bohemia, Moravia,
and Slovakia. Bohemia, the westernmost region, is politically and
economically the most important part of the country. Its largest
city, Prague, is Czechoslovakia's capital. The landscape consists of
rolling plains, hills, and plateaus surrounded by low mountains to
the north, west, and south.
Moravia, the central region, has important coal and steel
industries in the north and agricultural areas in the south. It is
bordered on the north by mountains and generally has more hills
than Bohemia. Bohemia and Moravia make up the historic Czech
lands, now forming the Czech Republic.
Slovakia, in the east, has rugged mountains in the central and
northern part and lowlands in the south that are important for
agriculture. Traditionally less developed politically, economically,
and culturally, Slovakia has become more important since
Czechoslovakia's independence; it now forms the country's second
republic.
Before World War II, Czechoslovakia encompassed a fourth
region, Ruthenia, in the Transcarpathian Ukraine. The Soviet Union
annexed that section after the war under a treaty between Prague
and Moscow.
The climate in most of Bohemia and Moravia is temperate.
Lush springs and pleasant autumns alternate with cool summers
(average July highs-lows: 740-580F) and cold, overcast winters
(average January highs-lows: 340-250F). Slovakia is characterized
by wider extremes-warmer summers in the south and colder, more
severe winters in the mountains in the north. Precipitation in
Prague is low-about 51 centimeters (20 in.) annually.
PEOPLE
The 15.6 million people of Czechoslovakia include about 65%
Czechs and 30% Slovaks. Although the Slovaks are a nationality
distinct from the Czechs, most favor working with the Czechs in a
common federal state with extensive autonomy for Slovakia.
Other ethnic groups include about 600,000 Hungarians in
Slovakia, smaller numbers of Ukrainians, Germans, and Poles, and
about 250,000 gypsies, the fastest growing ethnic element in the
population, who live mainly in Slovakia.
Although the government has a regulatory role in religious
organizations, laws promulgating religious freedom were passed in
late 1989. The major denominations and estimated memberships
are the Roman Catholic Church (10.5 million), the Czechoslovak
Hussite Church (400,000), the Slovak Lutheran (Evangelical) Church
(400,000), the Evangelical Church of the Czech Brethren (265,000),
the Greek Catholic Church (450,000), and the Eastern Orthodox
Church (150,000). About 10,000 Jews remain of the prewar
population of 360,000.
HISTORY
The Czechs lost their national independence to Austria in 1620
at the Battle of White Mountain and, for the next 300 years, were
ruled by the Austrian monarchy. With the collapse of the monarchy
at the end of World War I, an independent country of Czechoslovakia
was formed with the assistance of President Woodrow Wilson. The
Slovaks, ruled by the Hungarians for 1,000 years, joined in the
common country with the Czechs. The Slovaks were not at the same
level of economic and technological development as the Czechs, but
the freedom and opportunity found in the new Czechoslovak Republic
enabled them to make rapid strides toward overcoming these
differences.
Although Czechoslovakia was the only East European country
that remained an effective parliamentary democracy throughout
1918-38, it was plagued with minority problems, the most
important stemming from the country's large German population.
Constituting more than 22% of the population and largely
concentrated in the Bohemian and Moravian border regions (the
Sudetenland), this minority was encouraged to reject Czech-German
reconciliation in the new Czechoslovak country by nationalistic
elements urged on in large part by Nazi Germany. Internal and
external pressures culminated in September 1938, when, at Munich,
France, Italy, and the United Kingdom acceded to Nazi pressure and
agreed to force Czechoslovakia to cede the Sudetenland to Germany.
Fulfilling Hitler's aggressive designs on all of Czechoslovakia,
Germany invaded what remained of Bohemia and Moravia in March
1939, established a German "protectorate," and created a puppet
state out of Slovakia.
With the support of Slovak communists, Slovak democratic
forces engineered a revolt in the summer of 1944. It failed because
of German military action and the Soviet refusal to intervene or to
permit more than token U.S. and British help (including a U.S. Air
Force airlift of supplies and an Office of Strategic Services
mission). Soviet troops overran all of Slovakia and Moravia and
much of Bohemia, including Prague, were overrun in the winter and
spring of 1944-45. U.S. forces liberated the city of Plzen and most
of western Bohemia in May 1945. In Prague, a civilian uprising
against the German garrison had taken place in early May 1945.
Following Germany's surrender, some 2.5 million ethnic Germans
were expelled from Czechoslovakia.
From May 1945 until the spring elections of 1946, the country
was ruled by a coalition government that included Communist Party
members. The democratic elements, led by President Eduard Benes,
hoped the Soviet Union would allow Czechoslovakia freedom to
choose its own form of government, and aspired to a Czechoslovakia
that would act as a bridge between East and West. This objective
was sustained by Czechoslovakia's highly developed economy, its
strong democratic traditions, and its readiness to accept
considerable socialization of the economic system. The Communist
Party, however, which won 38% of the vote in the 1946 election,
held most of the key positions and gradually managed to neutralize
or silence anticommunist forces. Although the Benes government
initially hoped to participate in the Marshall Plan, it was forced by
Moscow to back out. Under the cover of superficial legality, the
communists seized power in February 1948.
After extensive purges modeled on the Stalinist pattern in
other East European states, the Communist Party tried 14 of its
former leaders in November 1952 and sentenced 11 to death. For
more than a decade thereafter, the Czechoslovak communist
leadership was characterized by its stability of tenure under the
leadership of party chief Antonin Novotny.
The 1968 Soviet Invasion The communist leadership allowed
only a little relaxation in the early 1960s. However, in the mid-
1960s, discontent arose within the ranks of the Communist Party
Central Committee because of the slow pace of economic reform,
resistance to cultural liberalization, and the desire of Slovaks
within the leadership for a larger share of the country's investment
resources.
The discontent culminated with the removal of Novotny from
party leadership in January 1968 and from the presidency of the
republic in March. He was replaced as party leader by a longtime,
Soviet-educated party activist of Slovak origin, Alexander Dubcek,
and as president by Gen. Ludvik Svoboda, a military hero of both
world wars. In addition to Novotny, many other orthodox
communists were subsequently forced from party and government
positions.
After January 1968, the Dubcek leadership began practical
steps toward political, economic, and social reforms that promised
a better life for the Czechoslovak people. In addition, it called for
politico-military changes in the Soviet-dominated Warsaw Pact and
Council for Mutual Economic Assistance (CEMA). The leadership
affirmed its loyalty to socialism and the Warsaw Pact but also
expressed the desire to improve relations with all countries of the
world regardless of their social systems.
A program adopted in April 1968 set guidelines for a modern,
humanistic-socialist democracy that would guarantee freedom of
religion, speech, press, assembly, and travel; insulate the
government from the Communist Party; create independent courts;
introduce multiple-choice, secret-ballot elections; and effect
economic reforms. After 20 years of little participation, the public
gradually began to take an interest in the government and
leadership. Dubcek became a popular national figure and the first
Czechoslovak communist leader to enjoy broad public support.
Internal reforms and foreign policy statements of the Dubcek
leadership created great concern among some of the other Warsaw
Pact communist governments and parties. On the night of August
20, 1968, Soviet, Bulgarian, Hungarian, Polish, and East German
troops invaded and occupied Czechoslovakia. The Czechoslovak
Party and Government immediately declared that the invading
troops had not been invited into the country and that their invasion
was in violation of socialist principles, international law, and the
UN Charter.
The principal Czechoslovak leaders were forcibly and secretly
taken to the Soviet Union. Under obvious Soviet duress, the
Czechoslovaks engaged in a series of negotiations at Moscow on
August 23-26, again on October 2-3, and finally at Prague on
October 16. On that day, Soviet Premier Aleksei Kosygin, acting on
behalf of all the invading countries, and Czechoslovak Premier
Oldrich Cernik signed a treaty that provided for the "temporary"
stationing of an unspecified number of Soviet troops in
Czechoslovakia.
In November, the troops of the other countries and some of the
Soviet forces were withdrawn. In addition to accepting the
"legalization" of stationing Soviet troops in Czechoslovakia,
Czechoslovak leaders were forced to censor the media and to curb
virtually all of the reforms that Dubcek had promoted.
Dubcek was removed as party First Secretary on April 17,
1969, and was replaced by another Slovak, Gustav Husak. Later,
Dubcek and many allies within the party were stripped of their
other party positions in a purge of the Communist Party that lasted
until 1971 and that reduced party membership by almost one-third.
By October 27, 1969, the Soviets had achieved their basic
objectives: the Czechoslovak liberalization movement was
dismantled; elements of the orthodox Communist Party were back in
control; and Soviet troops remained stationed in Czechoslovakia. On
that date, General Secretary Husak, Prime Minister Cernik, and
President Svoboda signed a joint communique with the Soviets at
Moscow that justified the invasion, accepted the Brezhnev doctrine
of limited sovereignty, avowed that stationing Soviet troops in
Czechoslovakia was essential to the security of Czechoslovakia's
western borders, and opened the way for the further integration of
Czechoslovakia's economy with that of the Soviet Union. This
relationship was further formalized in a 20-year Soviet-
Czechoslovak Treaty of Friendship, Cooperation, and Mutual
Assistance signed on May 6, 1970. In May 1975, Gustav Husak
replaced the ailing Svoboda as president, retaining at the same time
his position as Communist Party General Secretary. Milos Jakes,
who presided over the purge of party members after the 1968
invasion, succeeded Husak as party general secretary in December
1987.
POLITICAL CONDITIONS
In November 1989, student protests of police brutality ushered
in a period of rapid changes that culminated, by year's end, in a new,
noncommunist government and the election of dissident playwright
Vaclav Havel as president. The new government ended the
Communist Party's leading role in political life, eliminated
restrictions on travel abroad, and passed legislation guaranteeing
freedom of speech, freedom of assembly, and freedom of conscience.
All political prisoners were freed, and work began in earnest on
democratic political reform.
After Husak had consolidated the "normalization" of the post-
1968 period, Czecholslovaks generally had retreated from political
life. The roots of 1989's Civic Forum movement that effected the
"gentle revolution" can be found in human rights activism. On
January 1, 1977, more than 250 people signed a manifesto called
Charter 77 criticizing the government for failure to implement
human rights provisions of documents it had signed, among which
are the constitution; the International Covenants on Political and
Civil and Economic, Social, and Cultural Rights; and the Final Act of
the Conference on Security and Cooperation in Europe. Although not
organized in any real sense, Charter 77 constituted something of a
citizens' initiative aimed at inducing the Czechoslovak Government
to observe its formal obligations to respect the human rights of its
citizens.
To stifle opposition, Husak subjected Charter 77 signatories
and other "dissident" groups to periodic harassment and persecution.
This included both judicial and nonjudicial measures, ranging from
loss of job or denial of educational opportunities for children to
detention, trial, and imprisonment. The government also induced or
forced human rights activists into exile abroad and deprived them
of their citizenship.
In October 1979, the government staged a "subversion" trial of
six leading activists of the Committee for the Defense of the
Unjustly Persecuted as a warning to other "dissidents." As political
tension in neighboring Poland mounted during 1980-81, the
government, perhaps fearing a "spillover" effect, became
increasingly repressive in its treatment of Charter 77 and other
activists. In March 1987, government efforts to neutralize the Jazz
Section of the Czech Musicians' Union, which sought to promote
freedom of cultural expression, resulted in the trial of several of
the section's leaders after months of detention.
Despite persecution, Charter 77 had grown to at least 1,500
signatories in 1989. More important, the charter had become only
one of many independent initiatives critical of the government.
These new groups helped launch a series of peaceful demonstrations
by thousands of citizens in Prague in late 1988 and early 1989 that
drew worldwide attention and a strong government response. The
regime forcibly dispersed a series of demonstrations in January
1989 and subsequently imprisoned several prominent human rights
activists, including Havel who served 4 months in prison on charges
of incitement.
In the events of November 1989, these disparate groups united
to become Civic Forum, an umbrella group championing bureaucratic
reform and civil liberties. Civic Forum quickly gained the support
of millions of Czechs, as did its Slovak counterpart, Public Without
Violence. Faced with overwhelming repudiation by the population,
the Communist Party all but collapsed. Its leaders, Husak and party
chief Milos Jakes, resigned in December 1989.
GOVERNMENT
A coalition government in which the Communist Party has a
minority of ministerial portfolios was formed in December 1989.
The government is drafting a new constitution to replace the one
promulgated on July 11, 1960. A 1968 law revised some sections
to establish more equitable representation between Czechs and
Slovaks in federal bodies and in economic development. The law
canceled the historic preferential treatment of Czech lands by
increasing the autonomy of national (Czech and Slovak)
organizations in the formation, administration, and operation of the
economy. In practice, however, exercise of political power
resembles a unitary system more than a federal one.
In Czechoslovakia, a distinction is made between the federal
government and the national government. Czechoslovakia has two
national governments-the Czech and the Slovak-and one federal
government for the entire country.
The bicameral Federal Assembly, which was reconstituted
from a unicameral legislature on January 1, 1969, is nominally the
highest organ of state authority. The Chamber of the
People
consists of 200 deputies elected by districts based on population;
the Chamber of the Nations consists of 150 deputies, of whom 75
are elected by the Czech National Council and 75 by the Slovak
National Council. The two bodies are bridged by the chairman of the
Federal Assembly and two deputies who chair the chambers. The
consent of both chambers is required to pass a law. The number of
majority votes needed to pass a bill depends on the kind of bill
under consideration and on the chamber voting.
The election law of July 1971 lengthened the terms of the
deputies from 4 to 5 years. Legislative reforms under way in 1990
are likely to produce parliamentary representation similar to
Western democracies. Until that time, the Chamber of the
People
will continue to represent the National Front, a coalition of
political parties and mass organizations controlled by the
Communist Party. Apart from the Czechoslovak and the Slovak
communist parties, four others are, in theory, noncommunist. In the
second chamber, the Chamber of Nations, members currently are
selected by the National Councils, the legislative bodies of the
Czech and Slovak Republics.
Administrative and executive powers are vested in the cabinet
and the president of the republic. The president is elected by the
Federal Assembly for a 5-year term. With the approval of the
Federal Assembly, the president appoints a cabinet including a
prime minister as head of government.
The country's highest court is the Supreme Court, elected by
and responsible to the Federal Assembly. The lower courts are
elected by the districts and counties. In 1990, Czechoslovakia will
reform its judicial system to introduce Western-style legal rights
for individuals.
Principal Government Officials
President-Vaclav Havel
Prime Minister-Marian Calfa
Deputy Prime Ministers-Valtr Komarek, Jan Carnogursky, Vladimir
Dlouhy
Ministers
Foreign Affairs-Jiri Dienstbier
National Defense-Gen. Miloslav Vacek
Finance-Vaclav Klaus
Foreign Trade-Andrej Barcak
Interior-Richard Sacher Premier,
Czech Socialist Republic-Frantisek Pitra
Premier, Slovak Socialist Republic-Milan Cic
Ambassador to the United States-Rita Klimova
Czechoslovakia maintains an embassy in the United States at
3900 Linnean Avenue, NW, Washington, D.C. 20008 (tel. 202-363--
6315).
DEFENSE
A major overhaul of Czechoslovak defense forces is underway
in 1990. At the end of 1989, regular forces totaled about 200,000
and included:
-- The army, with 145,000 members organized into 5 tank
divisions, 5 motorized rifle divisions, 1 airborne regiment, and 1
artillery division; and
-- The air force, with 55,000 members organized into air
defense, and a tactical air army, each with two air divisions.
-- Border guard and interior guards, with 35,000 members,
and the people's militia, with 120,000 members.
Compulsory military training for men required service of 2
years in the army, 3 years in the air force, or 27 months in the
border and interior guards.
As a charter member of the Warsaw Pact (May 1955),
Czechoslovak forces are subject to the command and direction of
the Warsaw Pact commander, always a Soviet officer. At the end of
1989, about 80,000 Soviet troops, including 5,000 air force
personnel, were stationed in Czechoslovakia. Czechoslovak-Soviet
discussions on Soviet troop withdrawals began in January 1990.
ECONOMY
Czechoslovakia has a developed, but gradually deteriorating,
industrialized economy. Its strong industrial tradition dates to the
period when Bohemia and Moravia were the industrial heartland of
the Austro-Hungarian empire. Today, this heritage is an asset and a
liability. Czechoslovakia has a well-educated population and a
developed transport system, but much of its plant and equipment,
inadequately modernized in almost 40 years of communist rule, is
among the oldest in Europe. The country's centrally planned
economy is tightly linked with the Soviet Union and other East
European countries, although the coalition government challenged
traditional ties with its East Bloc neighbors at the January 1990
CEMA conference in Sofia. The economy is characterized by low
growth, low technological sophistication, and structural imbalances
caused by inappropriate investment decisions over the last 40
years.
Czechoslovakia is deficient in energy resources and many raw
materials. Its major natural resources are coal (brown and hard),
timber, and uranium. Its main agricultural products include sugar
beets, fodder roots, potatoes, wheat, and hops.
Principal industries are heavy and general machine-building,
iron and steel production, metalworking, chemicals, electronics,
transport equipment, textiles, glass, beer brewing, china, ceramics,
and pharmaceuticals.
The gross national product (GNP) was approximately $107
billion in 1987, amounting to about $6,900 per capita. GNP grew
steadily during the early and mid-1970s, stagnated during the years
1978-82, and resumed modest growth of about 2.5%-3% a year in
1983.
At the time of the 1948 communist takeover, Czechoslovakia
had a balanced economy and one of the higher levels of
industrialization in Europe. In 1948, the government began to stress
heavy industry over agriculture and consumer goods and services.
Many basic industries and foreign trade, as well as all domestic
wholesale trade, had been nationalized before the communists took
power. Nationalization of most retail trade was completed in
1950-51. Exceptions to private ownership in these sectors are
negligible and consist mainly a few artisans. Collectivization of
agriculture began in 1949. Today, all but about 7%-8% of the
agricultural land is in the "socialist sector," either in state farms
or in state-run cooperatives.
Heavy industry received major economic support during the
1950s, but waste and inefficient use of resources resulted from the
adaptation of centralized planning techniques to the complex
industrial sector. Although the labor force was traditionally
skilled and efficient, inadequate incentives for labor and
management contributed to a high labor turnover, low productivity,
and unsatisfactory quality. Economic failures reached a critical
stage in 1963.
A period of de-Stalinization and economic reform was
launched during 1963-67. Proposed reforms involved decentralized
decisionmaking, including greater freedom for managers to set
prices, production levels, investments, and wages. The new
mechanisms were invoked with insufficient preparation and failed
to receive support from some important elements in the Communist
Party and from many economic officials and planners. Inflationary
pressures began to develop, and wholesale prices were permitted to
rise rapidly in 1967. Firms were making substantial profit without
having to improve productivity or quality of output.
Hope for more wide-ranging economic reform came with
Dubcek's rise in January 1968. Under his leadership, Czechoslovakia
could not immediately come to grips with inflationary forces, much
less begin the immense task of correcting the economy's basic
problems-overconcentration on heavy industry, low productivity,
lack of modern equipment, and inferior quality.
Any opportunity the Dubcek leadership might have had to place
economic reform on a sounder footing was cut short by the 1968
invasion, which brought renewed strains on the balance of
payments. Although industrial production improved during the
immediate period after the invasion, inflationary panic-buying
continued, and worker productivity fell as demoralization spread.
Price increases and wage controls implemented under Husak's
leadership reduced inflationary pressures and, to some extent,
increased productivity. Unfulfilled targets in housing construction
and inadequate supplies of fuels and power continued. High rates of
absenteeism continued to reveal the attitude of workers.
The economy grew during the 1970s but stagnated between
1978 and 1982. The Czechoslovak approach to its economic
problems has been to continue to uphold central planning. After a
3-year (1978-80) experiment involving about 15% of the economy,
in January 1981 the regime introduced a "Set of Measures" to
improve management of the production process. Its general goals
were to improve export performance and the quality of production,
with particular emphasis on economizing on labor, materials, and
energy. The new measures, in addition to reinforcing central
planning and controls, included a system of rewards and penalties
intended to distinguish the performance of enterprises and workers.
Ideological campaigns were maintained to diminish apathy and
aversion to the incentive system. The leadership later
acknowledged that the "Set of Measures" failed to stimulate
exports, achieve efficiency, or promote technological innovation.
The economy grew after 1982, achieving annual average output
growth of more than 3% in 1983-85. Imports from the West were
curtailed, exports boosted, and hard currency debt reduced
substantially. New investment was made in electronics, chemicals,
and pharmaceuticals, and these sectors were industry leaders by
1986. But the economy remains troubled by central planning and
stifling bureaucracy, which produced low exports and productivity,
and overreliance on the Soviet Union and other CEMA countries as
sources of raw materials and as markets for goods. A recent
decline in imports from the Soviet Union and problems in trade with
some other CEMA members, caused in part by their unwillingness to
accept poor-quality products, may foreshadow a gradual change in
the pattern of trade.
Economic reform is the greatest hurdle facing the post-1989
government. Although sweeping structural changes that would
increase the role of market forces are being prepared, introduction
of those changes is proceeding slowly and cautiously.
About 80% of Czechoslovakia's trade is with other communist
countries. The Soviet Union alone accounts for about 45% of
Czechoslovak trade and supplies the country with almost all of its
oil, natural gas and iron ore, as well as many other key raw
materials. To secure these resources, Czechoslovakia is investing
large amounts in natural gas, and iron ore extraction projects in the
U.S.S.R. In return, Czechoslovakia supplies machines and other
industrial products to the U.S.S.R. After the Soviet Union,
Czechoslovakia's major trading partners are East Germany, Hungary,
and Poland. Among Western countries, Austria, West Germany, and
Switzerland account for the largest share. In 1987, U.S. imports
from Czechoslovakia totaled $86 million, and U.S. exports totaled
$47 million at the official rate of exchange.
Post-1989 Czechoslovakia had made expanded trade with the
West an explicit policy in an effort to join the global economy.
Austrian and West German firms already have increased activities
in Czechoslovakia, and U.S. businesses have revived their interest.
The government has justified itself largely by its efforts to
improve the material welfare of the population. The standard of
living is difficult to measure, but it is certainly high in comparison
to other Eastern bloc countries. Unemployment has been virtually
nonexistent, the result of inefficient use of labor. About 7.8
million people, or half the population, are employed. Women make
up about 47% of the labor force. Workers receive ample fringe
benefits and an extensive social security program. Food and
consumer goods, although by no means abundant, are in good supply,
and the level of automobile ownership is the highest in Eastern
Europe.
In January 1990, the government introduced a series of
legislative changes designed to increase enterprise autonomy,
efficiency and productivity. These changes could improve economic
performance, but government experts agree that more substantial
reform on private property, currency, investment, and financial
institutions is needed.
FOREIGN RELATIONS
The foreign policy of Czechoslovakia had, until 1989, followed
that of the Soviet Union, the result of the Soviet presence in
Czechoslovakia, and the country's economic and military ties to the
Soviet bloc. Since the beginning of 1990, Czechoslovakia has sought
to carve a niche as a small power serving as a bridge among its
neighbors.
Czechoslovakia is a member of the United Nations and
participates in its specialized agencies. It also is a member of the
General Agreement on Tariffs and Trade (GATT). Czechoslovakia
maintains diplomatic relations with more than 100 countries, of
which 63 have permanent representation in Prague.
U.S.-CZECHOSLOVAK RELATIONS
President Woodrow Wilson and the United States played a
major role in the establishment of the state of Czechoslovakia on
October 28, 1918. President Wilson's 14 Points, including the right
of ethnic groups to form their own states, were the basis for the
Czechs and Slovaks joining to form the Czechoslovak state. Tomas
Masaryk, the father of the state and its first president, visited the
United States during World War I and worked with U.S. officials in
developing the basis of the new country. He used the U.S.
Constitution as a model for the first Czechoslovak Constitution.
Since before the founding of the Czechoslovak state, the U.S.
Government and people have maintained a friendly and sympathetic
attitude toward the Czech and Slovak people. Millions of Americans
have their roots in the Czech lands and Slovakia, and a large
community in the United States has strong cultural and family ties
with Czechoslovakia.
After World War II and the return of the Czechoslovak
government-in-exile, normal relations were continued until 1948,
when the communists seized power. Relations cooled rapidly.
The Soviet-led invasion of Czechoslovakia in August 1968
further complicated U.S.-Czechoslovak relations. The United States
referred the matter to the UN Security Council as a violation of the
UN Charter. In a report to Congress, Secretary of State William P.
Rogers condemned the invasion as an infringement of
Czechoslovakia's sovereignty and stressed that improvement in
East-West relations must be based on respect for the principles of
sovereign equality, political independence, and the territorial
integrity of each European state, regardless of its political or
social system.
Despite cool relations, both sides decided in the fall of 1972
on limited steps aimed at solving some problems. Negotiations were
begun on a consular convention, a trade agreement, an accord on
financial issues dating back to World War II, an exchanges
agreement, and an accord to open consulates in Bratislava and
Chicago. The discussions failed to produce results.
The 1980s saw modest improvement in U.S.-Czechoslovak
relations at the official level. In 1982, agreement was reached to
resolve outstanding financial issues, including compensation from
Czechoslovakia for the U.S. citizens and corporations whose
properties were nationalized after World War II and the delivery to
Czechoslovakia of its share of the gold recovered from Germany and
other countries by the Allies at the end of the war. The gold was in
the custody of a tripartite (United States, United Kingdom, and
France) commission established by international agreement to
allocate the pool of recovered gold among the countries from which
gold was stolen by the Nazis. The United States blocked the gold
identified by the commission for delivery to Czechoslovakia pending
a settlement of the nationalization claims.
Another lengthy negotiation was concluded in 1986 when the
United States and Czechoslovakia signed the first exchanges
between the two countries. The agreement provides for exchanges in
culture, education, science, technology, and other fields. In
addition, the U.S.-Czechoslovak Consular Convention, signed in
1973, was finally brought into force by an exchange of instruments
of ratification in October 1987.
With the "gentle revolution" of 1989, bilateral relations have
improved markedly. Dissidents once sustained by U.S.
encouragement and human rights policies reached high levels of
government. In 1990, both governments are moving rapidly to forge
close ties.
U.S.-Czechoslovak trade, hindered by Czechoslovakia's failure
to qualify for most-favored-nation tariff status and its trade
orientation toward the Soviet Union and other CEMA countries, was
stagnant until the events of 1989. Of $47 million in U.S. exports to
Czechoslovakia in 1987, cattle hides and fertilizers accounted for
almost half. The United States purchased $11 million in glassware
from Czechoslovakia in 1987. Other leading imports included
leather footwear, hops and beer, and small tractors. In 1990, as
part of the general development of warmer relations, prospects for
improved trade relations and mutual economic cooperation
increased rapidly.
Principal U.S. Officials
Ambassador-Shirley Temple Black
Deputy Chief of Mission-Theodore E. Russell
Counselor for Political and Economic Affairs-Clifford G. Bond
Press and Cultural Affairs Officer (USIA)-Thomas Hull
Economic Affairs Officer-Harvey D. Lampert
Commercial Officer-Janet G. Speck
Consul-Richele Keller
Defense Attache-Col. Edwin Motyka
Administrative Officer-Steven J. White
The U.S. Embassy is located at Trziste 15, Prague (tel. 536641/8).
TRAVEL NOTES
Climate and clothing: The climate is most pleasant during
May-August; smog and dampness prevail in November-March. Bring
rainwear and lightweight or heavy woolens depending on the season.
Customs and currency: U.S. citizens must have visas. Tourist
visas, valid for one entry, usually can be obtained within 2 weeks.
Visas require the tourist, upon entry, to purchase 30 West German
marks (about $17 at the exchange rate of early 1990) a day in
Czechoslovak crowns. Crowns may not be imported or exported.
Health: No unusual health precautions need be taken in Prague;
however, visitors coming from areas where yellow fever or cholera
are endemic must have proper inoculations. Tapwater is usually
safe. Bring any needed medications.
Telecommunications: Telephone and cable service is adequate.
Czechoslovakia is six standard time zones ahead of eastern
standard time. Because of higher Czechoslovak rates, phone calls to
the United States should be made collect, if possible.
Transportation: Czechoslovakia has a wide network of bus,
rail, and air services. Prague has a subway and streetcars, and
trolley buses serve cities and suburbs. Taxis and rental cars are
available. Main roads are adequate.
Published by the United States Department of State -- Bureau of
Public Affairs -- Office of Public Communication -- Editorial
Division -- Washington, D.C.-- February 1990 Editor: Jim
Pinkelman. Department of State Publication 7758 Background Notes
Series -- This material is in the public domain and may be
reprinted without permission; citation of this source is
appreciated. For sale by the Superintendent of Documents, U.S.
Government Printing Office, Washington, D.C. 20402. (###)