660c.116/52: Telegram

The Minister in Poland ( Stetson ) to the Secretary of State

[Paraphrase]

78. Department’s No. 47, October 31, 6 p.m. The proposals reported in my No. 66, September 27, 5 p.m., were a final offer by the Poles and were also intended as an answer to our argument that American imports had been discriminated against under system of secret contingents. From my last conversations with Polish officials there is little doubt that further discussions will bring a demand from the Poles for a clear statement as to whether or not we consider automobiles assembled in Denmark from American parts as American cars and entitled to full consideration as such.

If, however, we accept the offer of 320 metric tons including cars assembled in Denmark, we thereby admit the Polish contention that such cars are American and prejudice the possibility of gaining further substantial increase as the contingent for the United States thus becomes far greater than that of any other country. If, on the other hand, we contend that cars assembled in Denmark are not American, we might be able to secure a contingent for direct imports equal to or greater than the French. This, of course, obviously involves the risk that such an increase would be at the expense of Ford and General Motors products imported from Denmark.

I think it would be very unwise to continue conversations until we are ready to clearly state our position on the points enumerated above.

Stetson