860C.5034/11–2346: Telegram
The Acting Secretary of State to the Chargé in Poland (Keith)
1116. On Nov 15 Zoltowski, Financial Counselor PolEmb, was informed by Dept that there was little possibility at this time of approval Pol application Exim credit for purchase cotton. He was also informed that gold of Bank Polski would not be unblocked at this time. It was stated that in addition to fact few funds available and there were number unsettled issues between our two Govts including arrangements for compensation Amer property nationalized by PolGov.54
On Nov 18 I informed Zoltowski and Litynski, Commercial Counselor, that while we did not object to nationalization we insisted upon adequate compensation.55 I requested (1) adequate time for filing claims for compensation; (2) assurances that Amer property in former German territory now under Pol admin would receive equal treatment to that accorded property in Poland proper; (3) compensation in foreign exchange if original investment was so made; (4) agreement upon a mixed claims commission to adjudicate claims.
PolReps pointed out that extension for filing claims already granted and in case of further lists of nationalized properties adequate time would undoubtedly be allowed. They referred to AP despatch from Warsaw stating PolGov agreed in principle to establishment mixed claims commission but said they had no official confirmation. They made clear they realized steps heretofore taken by PolGov inadequate but referred to present difficulties arising from war.
I said we were prepared take full account of Poland’s capacity to pay but we felt there should be no delay in arriving at agreement incorporating [Page 520] principles for fixing liability for compensation. I pointed out that USGov under considerable pressure from Amer owners property Poland and that prompt settlement of this matter would make it considerably easier for us settle matter Bank Polski certification. I said we were prepared engage in discussions either in Warsaw or Washington but that it would be much more convenient for us handle them here.
PolReps promised inform PolGov immediately and indicated belief that matter could be settled promptly.
- The conversation between Janusz Zoltowski, Polish Financial Counselor, and John D. Hickerson, Deputy Director of the Office of European Affairs, and Llewellyn E. Thompson, Chief of the Division of Eastern European Affairs, was the subject of two separate memoranda of November 15, neither printed. In expressing his regret that the cotton credit would not be extended, Zoltowski stated that he could understand the United States withholding of ordinary loans, but he felt that a short-term cotton credit was an important step in promoting Polish trade with the west. (860C.515/11–1846)↩
- The Acting Secretary of State’s memorandum of his conversation with Zoltowski and Litynski not printed (860C.5034/11–1846).↩