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

88. Memorandum of Conversation⁰

Washington, October 14, 1959.

SUBJECT

• U.S.-Polish Trade Relations

PARTICIPANTS

• United States
  • Mr. Frederick H. Mueller, Secretary of Commerce
  • Mr. Henry Kearns, Assistant Secretary of Commerce
• Poland
  • Mr. Edward Ochab, Minister of Agriculture
  • HE Romuald Spasowski, Polish Ambassador
  • Dr. Tadeusz Lychowski, Economic Minister, Polish Embassy

Secretary Mueller indicated his satisfaction at receiving our Polish friends here and stated that he would head a delegation which would be visiting Poland.¹

Minister Ochab thanked the Secretary and indicated that if the time available to them is not long enough to cover all of the pertinent aspects of Polish-American relations, the conversation could be continued in Poland.

Secretary Mueller described his pleasant experience with the numerous Americans of Polish descent who live in Grand Rapids and whose conscientiousness he could appreciate as an employer.

Minister Ochab expressed his satisfaction at the part played by Americans of Polish descent in contributing to friendly relations between the two countries. He hopes that these relations will increase in both closeness and scope, in particular in the field of trade. Poland has very little trade with the United States and he would be happy to see exchanges increased.

Secretary Mueller stated trade is a two-way street. The first thing to do is to find out what commodities could be exported by Poland to the United States. In looking for such commodities, it is important that Poland seek something which could be sold in the United States over and above present American imports, rather than for goods in which Poland could increase her exports only at the expense of presently used sources of such imports. The problem is one of increasing trade rather than displacing another exporter.

Minister Ochab expressed his agreement with this point of view. Nevertheless, it is not normal that the place occupied by Poland in American foreign trade be so small. His travel in the United States enabled him to get acquainted only superficially with American economy; seeing, however, the vigor of that economy, he feels certain that there must be possibilities for increasing Polish exports to the United States without necessarily doing so at the expense of other suppliers.

Secretary Mueller said that the Department of Commerce continually investigates the question of commodities in which trade could be increased. The United States, however, would be very happy to receive additional suggestions in this respect from the Polish side. These, once again, should be such as to avoid hurting the trade of any other nation with the United States.

Minister Ochab stated that this indeed is the desirable way of doing things, although a certain amount of competition always enters into problems of trade. Increasing Polish exports to the United States is of a paramount importance since the possibilities of finding goods which Poland would wish to purchase in the United States are practically limitless. The question is therefore one of payment and no amount of credit can solve that question if the Polish exports to the United States are not sufficient.

Minister Ochab expressed the hope that the experts on the two sides would find concrete proposals.

Secretary Mueller said that he had been in Poznan two years earlier² where he had interesting conversations with Messrs. Trampczynski and Gajewski.³ In looking for ways of increasing exchanges between the two countries, his first thoughts turn to the question of tourism. There are eight million Americans of Polish descent, many of whom would wish to visit Poland. The number of American tourists in Poland could be greatly increased if adequate facilities existed in Poland. This is an excellent source of ready money.

Minister Ochab agreed that Poland had not done enough in this field. The Polish Government intends to improve the existing facilities. It is faced, however, with investment difficulties. This is why he hopes that Polish imports from the United States will be increased, in particular in the direction of capital goods.

Poland feels acutely handicapped because of the absence of the most-favored-nation clause in the commercial relations between the United States and Poland. It is not only the Polish Government but also Polish public opinion which feel this lack very keenly. Although the direct influence of the absence of the most-favored-nation clause upon the volume of trade may not be very great, the Polish people are very touchy on the subject of being treated differently than are other nations.

The Secretary remarked that questions of a primarily political nature fall under the responsibility of the State Department rather than under that of the Department of Commerce. He nevertheless expressed his understanding of the psychological impact of this question over and beyond its influence on trade. From the practical point of view, the duties on only a small percentage of the Polish exports to the United States would be affected. In particular, there would be no influence whatsoever on agricultural commodities; more than 50 per cent of American imports from abroad are duty-free and the question of the most-favored-nation clause is somewhat academic from that point of view; the Secretary recognized, however, its psychological and political importance.

Minister Ochab thanked the Secretary for his understanding; such understanding would undoubtedly facilitate the future elimination of some of the obstacles which still exist in the relations between the two countries. In as far as Polish exports to the United States are concerned, an increase should be sought primarily in a field other than that of agriculture since the Polish consumption of foodstuffs would increase with the increase of the population and the expected increase in the standard of living.

Assistant Secretary Kearns noted that the question of the most-favored-nation clause would be studied with the greatest understanding and sympathy. Mr. Kearns also referred to the fact that a state trading monopoly operates differently than our economic system which is one of the problems in connection with the extension of MFN treatment to Poland.

In reply Mr. Ochab acknowledged this to be an obstacle but expressed the hope that something could be worked out.

Mr. Kearns stated that the United States Government is always happy to know the point of view of the Polish Government in this respect. Conversations started in Washington could be continued in Warsaw in the near future.

Minister Ochab thanked Mr. Kearns. He understands, of course, that some obstacles still exist; he hoped, however, that they could be overcome. The Polish Government hopes for an increase in exchanges and investment and will most certainly take into account the American point of view in trying to do its share to overcome some of the difficulties.

0. Source: Department of State, Central Files, 411.4841/10–1459. Confidential. Drafted by Glenn, who apparently served as interpreter.
1. See Document 93.
2. Mueller visited Poland as the U.S. representative to the Poznan Fair June 9–23, 1957.
3. Witold Trampczynski was Polish Minister of Foreign Trade. Stanislaw Gajewski was Director of the Legal and Treaty Department of the Polish Foreign Ministry.