860C.50/9–2145: Telegram

The Acting Secretary of State to the Ambassador in Poland (Lane)

130. Urtel 124, Aug. 22. Following is the position of Dept with regard to Eximbank loans to Poland. This Govt wishes speedy reconstruction of Polish economy and its prosperous further development. It is willing on certain conditions to lend financial assistance in order to aid Poland in reaching this end. This Govt’s foreign credit policy is part of its general foreign economic policy which aims at a freely growing volume of multilateral foreign trade and relatively free capital movements on the basis of non-discrimination.

Dept appreciates that Poland’s present position is difficult and that for the next few months bilateral clearings, compensation agreements, and similar discriminatory devices may be not easy to avoid. The important consideration is that such arrangements should not prejudice Poland’s participation in any multilateral agreement designed to attain the objectives set forth in Article VII of the Lend-Lease Agreements which have been concluded with most of the United Nations including Poland.89

Close economic relations between the United States and Poland will not develop, and financial assistance to Poland will remain small, unless Poland is prepared to give assurances that it will, after a reasonable period of transition, abstain from discrimination in trade and investment, and in particular continue to accord to nationals and [Page 375] corporations of the US treatment as favorable as that accorded to nationals and corporations of any other country with regard to all forms of commercial activity, consistent with the treaty of June 15, 1931; that it will not accord to any country exclusive positions in Poland’s national economy, will refrain from use of quotas and exchange control as instruments of a discriminatory commercial policy, and refrain from engaging in bilateral clearing and compensation agreements and endeavor at the end of the period of transition, to relinquish or appropriately modify any arrangements which are incompatible with the foregoing commitments. Both US and Poland should agree to enter into negotiations with a view to attaining the objectives set forth in Article VII of the Lend-Lease Agreement, and Poland should give assurances that, during the aforementioned period of transition, it will, in general, avoid the introduction of new barriers to trade other than those of a temporary and emergency character, whether in the form of tariff, quantitative restrictions, exchange controls, discriminations, or other measures which are more restrictive of trade or more burdensome than those provided under the existing statutes.

Other nations seeking loans from the US are also being asked to give assurances that they will avoid new barriers to trade and will negotiate immediately with the US with a view to attaining the objectives of Article VII. This Govt will be prepared to open negotiations for a loan to Poland on the foregoing basis.

At your discretion you are authorized to communicate the foregoing to the Polish Govt. In the course of any such conversations emphasis should be given to the fact that this Govt desires to see an increasing participation of Poland in the world economy and you may indicate also that Poland’s implementation of the assurances asked of her will naturally have an important bearing on the attitude of the US toward any requests by Poland for further assistance.

With reference to your specific question concerning effect of Soviet policy on our relations with Poland, additional information will follow.

Negotiations for a loan would be conducted in Washington. Dr. Rajchman, Polish delegate to UNRRA has approached Dept90 under instructions from his Govt, he says, regarding immediate credits of $190 million plus eventual reconstruction loans of $500 million more. Dept pointed out that International Bank will soon be available to supply some of Poland’s credit needs. The memo and figures he submitted91 [Page 376] follow closely the material presented by Minister Mine at Potsdam.92 Dr. Rajchman stated he was urging Minister Mine to come to US. Dr. Rajchman urged that US send a mission of six key people to Poland for 6 weeks to make thorough survey of Polish reconstruction needs and programs. He expressed hope US could furnish Army truck transportation experts to organize trucking services. He said that immediate need in reconstruction of Warsaw is to remove the ruins and said it would be fine if US Army with their bulldozers and other equipment could clean up the city. Dept agreed to study these matters and discuss them with him soon.

Repeated to Moscow.

  1. For text of the Lend-Lease Agreement between the United States and Poland, signed at Washington, July 1, 1942, see Department of State Executive Agreement Series No. 257, or 56 Stat. (pt. 2) 1542.
  2. Dr. Ludwig Rajchman presented the proposals of the Polish Government during a conversation with Emilio G. Collado, Director of the Office of Financial: and Development Policy, on September 7, 1945.
  3. Not printed.
  4. For records of the economic conference between American and Polish officials held on July 28, 1945, during the Potsdam Conference, on which occasion Hilary Mine, Minister of Industry in the Polish Provisional Government of National Unity, presented the Polish economic position, see the United States delegation memorandum of July 28, 1945, Conference of Berlin (Potsdam), vol. ii, p. 455, and the memorandum by the Polish Deputy Prime Minister, Mikolajczyk, of the same date, ibid., p. 1532.