Foreign Relations of the United States, 1958–1960, Eastern Europe; Finland; Greece; Turkey, Volume X, Part 2

81. Memorandum of Conversation⁰

Washington, August 26, 1959.

SUBJECT

• Polish association with the GATT

PARTICIPANTS

• C. Douglas Dillon, Acting Secretary of State
• Robert B. Anderson, Secretary of the Treasury
• W.T.M. Beale, Deputy Assistant Secretary for Economic Affairs
• John M. Leddy, Special Assistant to the Under Secretary

Mr. Dillon referred to the discussion in the OCB of Poland’s limited participation in the GATT and the attitude of the U.S. towards Polish membership in the IMF and IBRD.¹ Mr. Dillon said that the State Department was entirely willing to accept the Treasury wording regarding the U.S. attitude towards Polish membership in the IMF and IBRD. Mr. Dillon pointed out that the Department of State was just as firmly opposed to full Polish membership in the GATT as was the Treasury Department. He pointed out that at the last GATT Session the U.S. had taken its position towards Polish association with the GATT² only in order to carry out the agreed policy of helping the Poles to be more friendly to the West. He said that the function of the Working Party which was going to meet in Geneva next week was to discuss some sort of associate membership on the part of Poland. He then summarized the position set forth in recommendation 2, of TAC D–211/Rev. 3, August 19, 1959.³

Mr. Anderson expressed the view that it was not in the U.S. national interest to develop formalized trade arrangements with the U.S.S.R., Poland, Yugoslavia and other Iron Curtain countries. He said that he was not opposed to the physical characteristics of trade but felt that to support closer Polish association in the GATT was like bringing a Trojan horse voluntarily into our midst.

Following further discussion, Mr. Anderson agreed that we should support Poland’s associate membership in GATT provided there was a clear understanding that we would inform the Polish Government that the U.S. is not going to support Poland for full membership in the GATT and is not going to support Poland for membership in the IMF and the IBRD. Mr. Anderson said that we should say emphatically to the Poles that “you are foreclosed from full membership in the GATT and you are not going to be in the Fund and the Bank”. Mr. Anderson said that he would write a memorandum of understanding and would appreciate receiving acknowledgment of it from Mr. Dillon.

In conclusion, Mr. Dillon referred to the fact that the basic National Security policy⁴ provides for treating Poland differently than other Iron Curtain countries. Mr. Anderson said that he was not aware that this was the case and that the matter should be looked into.

0. Source: Department of State, Secretary’s Memoranda of Conversation: Lot 64 D 199. Secret. Drafted by Beale and approved by Robert C. Brewster, Dillon’s Special Assistant, on September 2.
1. See Document 80.
2. At the 14th Session of GATT held in Geneva May 11–20, the United States opposed Poland’s application for full accession to GATT but proposed that the Contracting Parties undertake a study of whether some limited form of Polish participation would be technically feasible and, if so, what the specific nature of such participation might be. (Department of State, Current Economic Developments: Lot 70 D 467, Issue No. 571, May 12, 1959) The report of the U.S. Delegation, June 1, is printed in Department of State Bulletin, June 22, 1959, pp. 917–919.
3. Not found in Department of State files.
4. Reference is presumably to NSC 5810/1, “Basic National Security Policy,” scheduled for publication in volume III.