Foreign Relations of the United States, 1961–1963, Volume XVI, Eastern Europe; Cyprus; Greece; Turkey

74. Telegram From the Department of State to the Embassy in Poland⁰

Washington, January 19, 1963, 5:43 p.m.

841. For Ambassador Secretary. Embtel 1071.¹ I appreciate expression of your views re PL–480 negotiations and agree with implication your remarks that this instrument should be used with care and attention to what US may derive from its use.

In case of Poland, more than in number of other countries receiving PL–480 assistance, political factors and considerations transcending bilateral relations play major role in decisions re PL–480 agreements. At same time, economic considerations are weighed carefully, including effect on US market, markets of third countries, and extent of contribution to Bloc economy. Further, we cover smaller portion of Polish deficit than of many other recipient countries, and agreements with Poland unique in requiring repurchase local currencies.

Policy which US has pursued toward Poland admittedly involves risks and limited evidence of realization of long-term objectives. I am satisfied, however, that policy remains valid under present circumstances and that essential line should continue. Desirable that we not shift ground at this time of flux in Communist world lest this have undesired effect in decisions which Poland or others might make as result. Desirable also that we not provide further impetus beyond difficulties re MFN and boycott campaign for unfavorable development Polish policy or actions.

In so far as consistent with this approach, we have sought to limit PL–480 deliveries to minimum which would meet our objectives. Since 1960, quantities have decreased materially and terms changed to require greater commercial purchases. At same time, we have held off agreements to indicate displeasure with Polish actions, for example concerning Berlin. However, as long as we continue to regard agreements as useful, it is necessary to stop short of reductions or restrictions which would make agreement impossible. I recognize that this difficult to determine and that judgments are made on subjective basis and consequently are always open to argument. Each decision has represented consensus here as to best arrangement in circumstances.

Recognizing limits on what we expect in short term by way of favorable changes in Polish policy or bloc actions as well as fact that PL–480 agreements not seen as permanent fixture nor as without drawbacks, I believe we should continue review use PL–480 in light future developments.

Rusk

0. Source: Department of State, Central Files, 411.4841/1–1163. Secret. Drafted by Wortzel, cleared by Tyler, and initialed by Rusk.
1. Document 73.