The Trust was created by the British Government on 21st July, 1939, but its roots must be traced to 30th September, 1938, on which date was signed the so called Munich Agreement, to which the British Government was a party, under which parts of Czechoslovak territory (notably Sudetenland) were ceded to Germany and smaller areas to Hungary and Poland.

Those residents of the ceded territories who were known to be anti Nazi in activity or association, or who were of Jewish race, had well founded fears for their fate under Nazi German administration and the result was a flight of many thousands to the nearest attainable sanctuary - Prague and the provincial territories which remained to the independent Czechoslovak Government - described at the time, in official terms as "New Czechoslovakia".

Before September 1938 Czechoslovakia had already given asylum to some thousands of Germans and Austrians escaping from Nazi persecution in their own country and the new influx of Sudeten and other Czechs could not but impose a severe strain on an already burdened community and a newly dislocated administration. Understandably, also, there was a diminution of cordiality of the hospitality extended to the German and Austrian refugees - especially as the German Government pressed for that hospitality to be discontinued.

A substantial section of British public opinion felt strongly that these leaders of opposition to Nazism had been deserted and there was widespread concern to make amends. The reaction was both official and unoffical. Not only did the British Government promise substantial financial aid to the Czechoslovak Government but appeals for public subscriptions were initiated, notably by the Lord Mayor of London, the News Chronicle and Manchester Guardian newspapers reinforced by other journals, trade unions and other organisations including dozens of refugee aid committees assembled ad hoc all over the country.

The collection of the Lord Mayor of London amounted to over L360,000 and three-quarters of this was dispensed in the winter 1938/39 in Czechoslovakia for relief of destitute and homeless refugees. But L80,000 of the Lord Mayor's Fund and collections through other sources notably the News Chronicle L9,500, the National Council of Labour L4,500, were set aside for the use in London of the British Committee for Refugees from Czechoslovakia - a voluntary organisation which came into being immediately after September 1938, primarily to organise transportation to and temporary hospitality and maintenance in the United Kingdom for those political refugees who were considered to be especially endangered and for whom no country of permanent resettlement was immediately available.

At that time refugees could be admitted to the United Kingdom only as transmigrants and on condition that acceptable financial guarantees were furnished to cover the cost of re-emigration to a country of final destination, and also to ensure that the transmigrants did not become a charge on public funds for maintenance whilst in the United Kingdom.

Between October 1938 and March 1939 the British Committee brought 3,500 refugees from Czechoslovakia to the United Kingdom, of whom some 2,500 were Sudeten Germans and 1,000 Reich Germans or Austrians and the guarantees for these people more than amply committed all the financial resources available to the Committee. They had concentrated on those who had been actively anti Nazi as political or social leaders, trade union officials, lawyers, teachers , authors, journalists, artists, actors and others who lent their professional or personal aid to the opposition to Nazism.

The part played by the British Government on the financial side was to provide funds to meet the cost of emigration direct to countries of permanent settlement of refugees in unoccupied Czechoslovak territory. This provision took the form of a gift of L4,000,000 and the method of administering it by joint authority of the British and Czechoslovakian Governments was set out in a Treaty dated 27th January, 1939 (Cmd.5933) and subsequently ratified by Parliament in the Czechoslovakia (Financial Assistance) Act, 1939.

Between 15th October, 1938 and 15th March, 1939 some 1,500 refugees were assisted out of this fund to emigrate to countries overseas at a cost of about L400,000.

The Gift Fund was held by the Bank of England and all disbursements from it were by banking orders honoured in London on the joint authority of the British and Czechoslovak Governments.

On 15th March, 1939 the Germans over-ran the whole of the territory then remaining to Czechoslovakia. On the 27th March Parliament passed the Czechoslovakia (Restrictions on Banking Accounts, etc.) Act, 1939, one effect of which was to freeze the Gift Fund, then standing at some L3,600,000 , to ensure that the German administration could make no use of the money. Small releases for a few emigrants were made with approval of the British Treasury by authority of the Act, but they were relatively insignificant and the administration of financial assistance for permanent settlement outside Czechoslovakia came virtually to an end.

At the same time, the people seeking even temporary refuge from Nazi governed Czechoslovakia were augmented by those "Slav" Czechs who experienced or apprehended persecution or discrimination by their new governors on political, racial or religious grounds.

The British Government was prepared to admit further limited numbers for temporary refuge subject to the usual financial guarantees. But the British Committee for Refugees from Czechoslovakia was now without funds and was unable to find individual sponsors in sufficient numbers to match those seeking refuge.

The British Government, therefore, decided to enlarge the purposes for which the residue of the Gift Fund could be applied and to establish an agency in the United Kingdom to administer the Fund after it had been "unfrozen". These arrangements are set out in the Deed (Cmd.6076) of 21st July, 1939 and subsequently committed to legislation in the Czechoslovakia (Financial Claims and Refugees) Act 1940.

After March, 1939, the British Committee had been kept going by advances from H.M. Treasury , subsequently repaid by the Trustees. In July, 1939 when the Trustees took over, the British Committee was dissolved but provision was made in the Trust Deed for continuity of interest by empowering the Trustees to assume all liabilities properly incurred by the British Committee and by the establishment of an advisory committee recruited from among the moving spirits of the British Committee.

The advisory committee was conceived primarily to advise the Trustees on matters relating to emigration and settlement of refugees and the committee's opportunities for useful work were severely curtailed when emigration on any significant scale was made impossible by war. However, the Committee did maintain close contact with Trust work for about three years up to 1942 and contributed in many ways to a solution of the difficulties involved in effecting a smooth transfer of activities from a voluntary agency to a quasi official organisation.

The original purpose of the Gift Fund was simply to pay costs of transportation of refugees from Czechoslovakia to a country of permanent resettlement and to provide a modest grant to assist the emigrants to make a start in a new country.

Furthermore, the beneficiaries of the original Fund were limited, broadly speaking to –

a) refugees in New Czechoslovakia who formerly lived in ceded territory,

b) Germans and Austrians who enjoyed temporary refuge in New Czechoslovakia.

Under the Trust Deed the purposes were extended, in recognition of the disappearance of the British Committee, to include "maintenance and training of refugees in the United Kingdom pending their final settlement".

And the categories of beneficiaries were extended in recognition of the events of March, 1939. That is to say the limitation of Czechoslovak beneficiaries to those formerly resident in ceded territory disappeared. Virtually all Czechoslovak citizens became eligible for Trust assistance if they were able to reach the United Kingdom.

In the outcome the new purpose - maintenance and training in the United Kingdom - has accounted for more than half the Trustees' total expenditure; and the new category of beneficiaries (briefly or loosely Slav Czechs ) has represented more than half the number to whom the Trustees have furnished financial assistance.

Permanent resettlement of refugees was possible on only a very restricted scale during war time, but by about the end of 1947 the Trustees were within sight of the completion of their responsibilities in this matter and proposals were under consideration by Government for the disposal of an anticipated balance of cash in excess of needs.

Negotiations were in train to this end with the Czechoslovak Government but before their conclusion came the coup d'etat of February 1948 by which a communist regime was established in Czechoslovakia. This gave rise to a new flight of refugees from Czechoslovakia and the categories of beneficiaries of the Trust were again enlarged, now to include "persons in the United Kingdom who have been or may in future be permitted to enter or remain as refugees in circumstances arising from the change of Government in Czechoslovakia which took place in February, 1948"

Refugees of this category now comprise the majority of those assisted by the Trust.