860C.5151/12–246: Telegram
The Acting Secretary of State to the Chargé in Poland (Keith)
[Received 5:10 p.m.]
1141. Please inform Acting ForMin at earliest possible opportunity that arbitrary exchange rate of 100 zlotys to dollar imposed unilaterally by PolGov has created intolerable situation for Emb and consulates in Poland. You should point out that because of continued rise in prices appropriations to Amer dip and cons establishments in Poland virtually exhausted and Emb faced with immediate crisis.
In this situation (For Keith) only alternatives appear be following: (1) that as temporary expedient PolGov agree that Emb obtain its funds through sale of dollar currency on open market; (2) PolGov to advance zlotys to Emb at reasonable guaranteed minimum rate subject to negotiation of final rate of exchange; (3) establishment by PolGov of reasonable diplomatic rate of exchange; (4) that USGov request Congress to make special large appropriations to enable these Amer establishments continue to function; (5) to withdraw virtually all Amer representation in Poland except Amb.
Last two alternatives are only ones open to this Govt without assistance PolGov. You should point out that in event either of these alternatives are employed, reasons for this action would have to be [Page 526] made clear and entire question would become subject public debate in US. You should impress upon Acting ForMin that neither of these actions could fail react to disadvantage of PolGov.
You should inform ForMin that neither half measures nor protracted negotiations will resolve this critical situation and that unless PolGov is able offer satisfactory solution by Dec 15 USGov will have take such action as is open to it.66
- Telegram 1884, December 6, from Warsaw, reported that the Chargé called on the Acting Foreign Minister, Modzelewski, on December 5 and presented the information regarding the exchange problem, together with an aide-mémoire. Modzelewski reportedly showed no feeling of disturbance or anxiety as a result of the Department’s message but promised to call the Chargé the following week after studying the matter. (860C.5151/12–646)↩