The Secretary of State to the Ambassador in Poland (Lane)
263. Urtel 403 Oct 13. Dept at present inclined to view that in general, economic rather than political questions should be tied to Eximbank credit negotiations with foreign Govts. One of primary purposes advancing credits is to promote economic foreign policy framed to further economic interests this country. (See Deptel 130, Sep 21) Art VII Lend Lease Agreement contemplates agreements in accordance with principles stated therein which embody US economic foreign policy. Dept is of opinion that precedent of US–UK credit negotiations73 should be followed with other applicants, namely that understandings should be arrived at concurrently with credit agreement, aimed at settling outstanding economic problems between two countries and at ensuring that borrower will not follow policies in international trade basically inimical to US economic foreign policy and thus to US interests. This would include supplying of pertinent economic data regarding details commercial arrangements with other Govts. Also important that credits should be advanced only under conditions that give promise of enabling borrower to service and repay them through normal processes international trade.
Dept inclined to view that when Poles raise question of credits again you should inform them that consideration of any credit presupposes satisfactory arrangements along lines above indicated. This would not preclude attaching political considerations to granting of credits (urtel 482 Oct 27), but until final determination this point Dept prefers to avoid linking political questions with credits except for you to imply that apart from the economic considerations, the granting of a credit may be seriously jeopardized if the record of the Polish Govt for the fulfilment of its obligations is impaired by [Page 412] a failure to adhere fully to its acceptance of the Yalta agreement and to its Potsdam commitment as to elections and its further Potsdam commitment as to the freedom of the Allied press. It would be appropriate to observe in this connection that if the policies of the Polish Govt should create conditions under which free and unfettered elections would be an impossibility, and this fact became known to the American people, under our system it could not be ignored by this Govt, when considering a Polish application for credits.
With reference to Polish plans of nationalization it is position of Dept (urtels 41274 and 413, Oct 15) that this is an internal affair of Polish Govt, provided that in all cases where properties of American nationals are affected, directly or indirectly, by nationalization, adequate, effective and prompt compensation be made to American owners of properties concerned.
For your info arrangements referred to urtel 451 Oct 2275 are going ahead as to other countries mentioned, but Eximbank is deferring all action on credits to Poland.
In view above Dept of course would not favor (urtel 431 Oct 1876) any credits to be used for Polish army supplies.
Your comments would be appreciated.