860C.51/7–1546: Telegram
The Ambassador in Poland (Lane) to the Secretary of State
[Received July 16—2:55 p.m.]
1083. Conciliatory and favorable attitude of FonOff officials notably Rzymowski as indicated in my four telegrams 1001, 1002, 1003, 1004 of July 2, 1946 and 1055, 1065, 1066 of July 11, 1946,85 as well as [Page 477] that of Premier Osóbka in my talks of June 14 and 28,86 is illuminating in light of information received July 2 from member of Polish Government not member of Communist-controlled Government clique that during recent visit to Moscow,87 Polish Government was given nothing by Soviet Union but was told to obtain as much assistance as possible from Western governments. Polish Government’s apparent change of attitude towards US should therefore be taken with reserve.
In the light of what we have until now suspected and what we now learn on good authority, I believe it to be essential that we should be insistent in our demands for just and reasonable treatment of issues which we have brought to the attention of the Polish Government.
I feel as strongly as I did when I sent my telegram 553 of April 22, [21] that it is not in our interests to conclude a credit agreement without making greatest possible use of this leverage in obtaining concessions on issues which are important to US. I therefore felt that it was unfortunate that public announcement was made of this credit agreement immediately after Polish Government had unilaterally fixed on an unrealistic rate of exchange at 100 zlotys to dollar. As I have pointed out previously if the Polish Government maintains this rate, it will impair our activities in Poland and serve to assist the Soviet policy of obtaining as strong control as possible over a nation which regardless of assurances of members of Polish Government, is in effect merely a satellite state.
I believe that Polish Government by establishing barter trade arrangements (my telegram 1060 of July 1188) is eliminating all of the influence of zloty valuation upon foreign trade. However, by overvaluing the zloty the Polish Government increases the financial difficulty of maintaining diplomatic missions, press correspondents, foreign officials of relief missions and visitors from abroad seeking private trade connections. At the same time, the Polish Government greatly eases the subsequent problem of repaying credits obtained from our Government.
I am convinced that we must be prepared to take a strong stand on the issue of a realistic exchange rate if we are to avoid serious obstacles in the development of desired political and economic relations between [Page 478] our two countries. Since Polish Government chooses to balance trading accounts as it does a realistic exchange rate would not affect foreign trade and thus its denial to us must be interpreted as merely (1) an artificial difficulty placed on our efforts to watch political and economic developments in Poland, (2) a means of ultimately repaying our credits with great ease.
The conduct of the recent referendum and the serious doubt as to the accuracy of counting of actual votes as well as certain doubts concerning Poland’s real need for so much additional foreign relief requested through UNRRA and other foreign relief organizations all serve to emphasize the extreme importance of maintaining diplomatic and other observers in Poland. I feel strongly that we should not be compelled by Polish Government to do so at exorbitant costs while at the same time extending further credits which may be repaid ultimately with greatly overvalued zlotys.
As the Exim Bank credit has not been signed, I sincerely trust that the Department will find it possible in this or some similar matter to insist that a realistic exchange rate be granted forthwith. If it cannot be properly imposed as a new condition to the Exim credit it should certainly be included in any other extension of credit which Polish Government may seek.
I earnestly urge that the general question of our relations with Poland be reviewed on the highest level within our Government and that the Department give consideration to the advisability of instructing me to proceed to Washington for consultation some time prior to the holding of elections now unofficially scheduled for November. If Department approves this suggestion, I should, for personal reasons, prefer to proceed late August or early September.
Sent Dept as 1083.
- None printed (860C.51/7–246, 7–1146, 7–2646; 711.60C27/7–246).↩
- Ambassador Lane’s meeting with Osóbka-Morawski on June 14 is reported in telegram 897, June 14, p. 459. In telegram 989, June 28, Ambassador Lane reported on a further interview with Osóbka-Morawski held that day in the course of which the Polish Prime Minister renewed his assurances that the desired treaty information would be forthcoming and reaffirmed his desire to maintain the friendliest relations with the United States (860C.51/6–2846).↩
- Reference is presumably to the visit by a Polish governmental delegation to Moscow, May 23–25, 1946.↩
- Not printed.↩