860C.51/1098: Telegram

The Ambassador in Poland (Cudahy) to the Secretary of State

1. This morning I called on Minister for Foreign Affairs and protested against non payment of debts to Americans while provision was made for payment of Italian, French and British obligations. I have just come from a long meeting with the Minister of Finance during which we discussed the whole question of American obligations. Minister admitted discrimination but said it was due to favorable trade balances and existing credits in countries favored. He expressed impossibility [of] providing dollar exchange for American payments, directing attention to unfavorable balance of trade which with present requirements on obligations makes necessary nearly $30,000,000 in annual payments to the United States. Stated he would consider my proposal that dollar exchange from American immigrant remittances be impounded creating a fund to be employed for interest payments on American obligations.13 Despatches follow tomorrow.14

  1. In telegram No. 1, January 14, 1937, to the Ambassador, the Department replied that it was “inadvisable for you to take any position with regard to the allotment of dollar exchange as between competing American interests such as bondholders, exporters, bankers, industrial investors, et cetera.”
  2. Neither printed.