Foreign Relations of the United States, 1955–1957, Eastern Europe, Volume XXV

251. Letter From the Assistant Secretary of Agriculture (Butz) to the Deputy Assistant Secretary of State for Economic Affairs (Kalijarvi)¹

Washington, May 27, 1957.

Dear Mr. Kalijarvi: It is our understanding that you contemplate proceeding with a $30 million program for Poland including 100,000 tons of wheat, to be financed with Export-Import Bank loans. Also that a Title I PL 480 agreement totaling $65 million at market value would be signed and announced immediately after action by the House of Representatives on pending Title I legislation, the agreement to include, among other things, funds for about 400,000 M.T. of wheat and to provide that any portion of the program in excess of $25 million (CCC cost) would be validated only after additional Title I funds become available.

In view of the considerations involved in the proposed program as outlined in Mr. Dulles’ January 3 letter to Mr. Benson,² we concur in the proposed actions subject to the following understandings:

1. Your Department has determined that it is necessary to proceed with undertakings to supply wheat to Poland despite Canada’s position in the matter.³

2. Your Department has determined that it is necessary to proceed with signature and announcement of a Title I agreement with Poland prior to availability of new funds in the face of urgent pending request for commodities by Spain and other countries and will undertake any necessary clearance and justification of such action within the Administration and with Congress.

Sincerely yours,

Earl L. Butz

1. Source: Department of State, EE Files: Lot 76 D 232, US/Polish Talks—Basic Preliminary Documents, #2. Confidential.
2. Document 220.
3. Kalijarvi informed the Canadian Embassy of this fact on May 28. Telegram 442 to Ottawa, May 28, indicated that the United States had done everything possible to get the Poles to accommodate the Canadians. (Ibid., 442.4841/5–2857)