Nationalization of industry in Czechoslovakia in 1945: Impact on the United States, Britain, France and the Soviet Union

In 1945 Czechoslovakia began rebuilding its economy from the depression, Munich Agreement, and Nazi occupation. Its paramount concern was assuring national security. Economic nationalism seemed a reasonable stance in the changed world. Nationalization of business and industry was a logical way to jump-start the economy and assure the nation's independence. When the Czechoslovak government nationalized foreign business, it jeopardized Western investments and set up a conflict over nationalization and over the compensation for businesses with seized assets. The loss of investment seemed a small price to pay in light of Czechoslovakia's experience with the West, which had proven to be unreliable allies. France attempted to protect its interests by settling claims and trying to forge an alliance with Czechoslovakia. Britain took a harder stance and tried to dictate compensation terms.; Several factors contributed to the end of Czechoslovaks' economic relationship with the United States. They underestimated U.S. opposition to nationalization, just as Americans underestimated Czechoslovakia's compulsion to regain national sovereignty. Neither side compromised and disputes dominated dialogue between 1945 and the communist coup in 1948.; Soviet claims to some property complicated the situation. Economic nationalism and the imperative to rebuild their economies motivated both the Soviets and Czechoslovaks. After initial conflicts, the Soviets realized that there were several ways they could rebuild their economy: seizure of assets, payment of German reparations with manufactured products, and control through a compliant Czechoslovak government.; The U.S. read Czechoslovak nationalization as embracing Soviet-style communism, failing to see the roots of nationalization in economic nationalism. It regarded nationalization as a clear indication that the Czechoslovaks were actively choosing the Soviets over the Americans in the conflict between the two nations that would come to be called the Cold War. By taking a hard line in its disputes over nationalization, the U.S. gave Czechoslovakia little choice but to look elsewhere for economic and political alliances.