Memorandum by the Associate Chief of the Division of Foreign Economic Development (Young) to the Under Secretary of State (Acheson)

As you know, the Secretary has approved a list of countries to participate in the $100 million cotton credit established by the Eximbank. Included in the list is Poland.

Since the Secretary approved the inclusion of Poland, we have received telegrams from Warsaw, Nos. 41233 and 413 of October 15, and Nos. 450 and 451 of October 22,34 urging that no credit be extended to Poland at the present time. Ambassador Lane feels that we should make clear to the Poles that no credit is forthcoming until they change their policy with respect to such things as freedom of the press, arrests by security police, reasonable exchange rates and treatment of American property and trade.

Mr. Durbrow of EE35 has sent me a memorandum36 recommending that no credits be extended to Poland at present.

We have accordingly asked the Eximbank to defer any action on cotton or other credits to Poland. If the Secretary feels that we should move ahead with cotton or other credits to Poland, will you please let me know.

  1. See footnote 32, above.
  2. Telegrams 450 and 451 not printed; with regard to telegram 450, see footnote 27, p. 390; telegram 451 reported that the local press was publishing news to the effect that the Export-Import Bank was granting a cotton credit to eight countries including Poland (860C.51/10–2245).
  3. Division of Eastern European Affairs.
  4. Dated October 17, 1945, not printed.