611.60c31/83: Telegram

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

65. Your 71, October 21, 5 p.m.

(1) In view of concern of the Polish Government by reason of adverse trade balance, the Government of the United States is disposed to refrain from pressing its point of view during the next 4 months but only on condition that a satisfactory quid pro quo is granted by Poland. Otherwise we could not refrain from pressing our case, in view of serious handicaps suffered by American commerce by reason of Polish discriminations. Accordingly you may state to the Polish authorities that the United States will refrain from pressing case during 4 months from this date on the following basis: (a) that Polish Government agrees to accept the principle of non-discrimination against indirect commerce; (b) that after the 4 months’ period [Page 934]discrimination against indirect trade from the United States will completely cease.

Such an arrangement apparently will meet immediate difficulties confronting the Polish Government and while it would involve material sacrifice to American commerce, this Government is willing to show forbearance provided the matters in controversy can be definitely and satisfactorily settled on the basis stated.

(2) Any arrangement whereby our trade would be given most favorable treatment consistent with existing law should not be considered as acquiescence on our part in maintenance of extreme regulation of the kind recently adopted in connection with importations of bacon and lard whereby shipments which even touch at ports of third countries en route to Poland are subjected to customs discrimination. In view of inadequacy of direct sailings and consequent necessity of transshipping between carriers at European ports, such a regulation imposes serious and inescapable hardship upon American trade. It should also be understood that existing indirect shipment regulations would not be altered to our disadvantage during period agreed upon.

(3) [Paraphrase.] You may show the above to the authorities of Poland, and strongly reinforce your proposal with oral representations along the lines already made. Although the Department hopes that you can procure the acceptance of the arrangement set forth in paragraph (1), and it desires that you make every effort along these lines, you are authorized to say that you will report to your Government for its consideration any alternative arrangement proposed by Poland which involves material advantages to the commerce of the United States. [End paraphrase.]

Kellogg