35. Telegram From the Department of State to the Embassy in Poland0
1244. In separate luncheon conversations with Department officers May 5 Lychowski and Raczkowski raised questions re beginning of negotiations for new PL 480 agreement. They were informed that we preparing for negotiations and undertaking necessary paperwork at once. When pressed for exact date for initiation negotiations we said while we could not state with certainty we hoped begin discussions at least by last week in May. Pointed out we faced with difficulties such as recent [Page 73] speeches Jaroszewicz and other Polish leaders sharply attacking US which had held back beginning discussions.
Also pointed out to Lychowski another problem this connection was exorbitant figure 2.50 million zlotys Warsaw city authorities asking for relocation tenants from Zawrat 6 which US desired for site Ambassador’s residence (your letter to Vedeler April 14)1. Said this matter had come to attention of Congressman recently visiting Warsaw and this Congressional interest further reason for working out acceptable compromise; in effort reach reasonable settlement we willing pay half of 2–1/2 million figure. Lychowski’s assistance sought in disposing this problem and he indicated he would communicate with Warsaw.
In response Raczkowski’s question re prospects for $5 million credit he informed matter under active consideration but events of recent weeks have not helped Polish case.