860C.5034/10–3046

Memorandum by the Chief of the Division of Eastern European Affairs (Thompson)44

The position of this Government with respect to the Polish nationalization of properties in the former German territories now administered by Poland was discussed on October 29 by representatives of four Divisions: ED, LE, PED and EE. Specifically the discussion dealt with the desirability of protesting Polish nationalization of the property of American nationals in that area pending the establishment at the peace conference of the Polish-German frontier and the acquisition by Poland of de jure sovereignty over the area. At present the only [Page 513] properties in this area known to be American belong to the Socony-Vacuum Company and the Standard Oil Company of New Jersey. The former’s properties in this area have not yet been nationalized, but the latter’s have. Both companies have instructed their Polish attorney to protest, on their behalf, Poland’s right to nationalize property in the area in question but the attorney, for political reasons affecting his own position in Poland, feels that he cannot comply. (Warsaw’s telegram No. 1676, October 2645)

In line with the principles laid down in the Secretary’s speech at Stuttgart, the Embassy at Warsaw was instructed by the Department’s telegram No. 1007 of October 21, 1946,45 to include in a note to the Polish Foreign Office covering various aspects of nationalization, the following reservation with respect to nationalization in former German territories:

“US Government expects that at such time as Poland acquires de jure sovereignty over German territories under Polish administration and thereby acquires right to nationalize property in such territories Polish Government will accord AmNats property in such territory treatment equal with AmNats property located elsewhere in Poland. Meanwhile US Government asks Polish Government to state procedure by which American owners can obtain information concerning their properties in western territories and to give assurance that such information can and will be made available expeditiously.”

The Embassy at Warsaw, believing it undesirable to raise the question of Polish frontiers again at this time, stated in its telegram No. 1668 dated October 24, 1946,45 that it would not transmit to the Foreign Office the paragraph quoted above, unless it received specific instructions from the Department to do so. Meanwhile, apparently, the remainder of the note has already been presented to the Foreign Office.46

While it may be technically desirable to go on record as opposing the Polish right to nationalize in the German territories now under Polish administration, nevertheless such action might have undesirable political consequences. It might also cause the Polish Government to treat American owners of property in Poland less generously than might otherwise be the case.

The legal adviser’s office is of the opinion that, even if no protest were made at this time, the legal position of American property owners in that area would not suffer, nor would their claims be prejudiced [Page 514] in the event that the properties are included in areas which may eventually be returned to Germany. The psychological effect on the Polish Government of any such protest by us at this time would, in the opinion of EE, be damaging to American interests in that country. Politically, the Polish Government could be expected to react to a protest in much the same way as it reacted to the Stuttgart speech.

The question therefore arises as to whether the Department should pursue the full implication of the Secretary’s reference to the situation in his Stuttgart speech. It was agreed by those attending the meeting of October 29 that, subject to your approval, no action should be taken at this time to call the Polish Government’s attention to the fact that the American Government does not recognize Poland’s right to nationalize in German territories now under Polish administration.

Llewellyn E. Thompson
  1. This memorandum was approved by Under Secretary of State Acheson, the Director of the Office of European Affairs, Matthews, and the Under Secretary of State for Economic Affairs, Clayton.
  2. Not printed.
  3. Not printed.
  4. Not printed.
  5. For text of the note delivered to the Polish Government on October 31, 1946, see Department of State Bulletin, November 17, 1946, p. 912. The paragraph quoted above was not included in the note as delivered. For text of the Polish reply of November 13, 1946, see ibid., November 24, 1946, p. 969.