Introduction

Efforts to complement the political independence gained in 1918 with economic independence were a constant preoccupation in the history of the first Czechoslovakian Republic (ČSR). The economy experienced only an average level of industrial development, and therefore it was necessary for the Republic not only to be aware of the productive effects of economic relations with foreign powers, but also to remain alert to dangers to its political freedom of action which might arise from their economic strength. Since the ČSR feared, in particular, the economic hegemony of the German Reich as a precursor of political annexation, economic relations with Germany were in many respects characterised by conflict. This certainly applied to bilateral trade relations. However, it also applied in particular to the activities of subsidiaries of German Reich enterprises in Czechoslovakia, which were located mainly in technologically advanced industrial sectors such as electrical engineering, metal-working and chemicals.

It is almost impossible to present a statistically corroborated picture of Germany's investments in Czechoslovakia, since these stood in contradiction to Czechoslovakia's political leaning towards the Western powers and were often not made public. In contrast, French, British and American capital participation did not run counter to the raison d'état of the First Republic, which owed its existence to the new international constellation after the First World War. The frequent dependence on German experts, patents and licences was felt to be incompatible with the new state's prestige.