811.5123 FO 25/10–2947

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

In the course of the conversation with the Polish Ambassador today, I inquired whether he had any further news on the agreement for compensation for the nationalization of American property in Poland. I reminded him that Mr. Litynski1 had informed us that the Polish Foreign Minister had telegraphed to Warsaw regarding this matter at the time of his recent visit to Washington.

The Ambassador said that a reply had been received to the effect that the Foreign Minister and Mr. Mine did not intend at the present time to endeavor to obtain the agreement of the Polish Government to take up our suggestion for direct negotiation with the Silesian-American Corporation. He felt that this could not be done until the question of economic relations with this country were further clarified. In reply to my question he indicated he meant such matters as the International Bank Loan or American Government credits.

I observed that speaking frankly I wished to say that this was a rather surprising attitude. The Polish Government had nationalized American property; it recognized that it was liable for compensation and had negotiated an agreement to that effect but was now saying that it could not carry it out until Poland had obtained credits. The Ambassador hastened to reply that he could sign the agreement as negotiated today and that he could even sign the agreement with the protocol tomorrow. The position was that the Ministers who wanted to conclude the agreement did not feel that they could successfully take the further step of carrying out our suggestion until there was evidence that Polish-American economic relations were not going to deteriorate further. The Ambassador added he was sure that the mere inauguration of negotiations for an International Bank loan would be sufficient to enable the Foreign Minister and Mr. Mine successfully to complete the compensation agreement.

I said I could assure the Ambassador that this Government would never support a loan or credit to Poland in order to obtain a compensation agreement, and that any such loan would be decided on its merits.

Llewellyn E. Thompson
  1. Zygmunt Litynski, Economic Counselor, Polish Embassy.