860C.51/1302: Telegram

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

48. 1. Your No. 11, April 6, 7 p.m. Following representations and consultations am informed that new instructions cabled Zoltowski Saturday, [April] 9th, comprise basis for additional accord [Page 644] which, the Polish Government clearly understanding our position, assures me should not be regarded as discriminatory.

2. Your No. 13, April 12, 7 p.m. The Polish Government agrees to make a supplementary payment of ⅛ (one-half of yearly rate) to those bondholders of the Stabilization Loan (but not funding bonds) who will surrender their coupons for cash provided that such payment will take place after the signature of the agreement and upon acceptance of the final conversion.15 By accepting such procedure as far as the Stabilization Loan is concerned (whose fiscal agents have accepted before April 15 the conditions of the final conversion as proposed by the Polish Government) the Polish Government emphasizes that such attitude does not prejudice their position towards the other loans. In other words it does not create a precedent.

  1. For text of the Polish agreement, see Annual Report, 1938, p. 868.