76. Letter From the Ambassador to Poland (Cabot) to the Deputy Assistant Secretary of State for European Affairs (Davis)0
Dear Dick: I enclose herewith a memorandum prepared by Pic Littell1 with regard to the road blocks the Poles have been throwing in the way of our cultural program. Whereas I think the other side of the story should be borne in mind also, it does seem to me clear that there is a good deal of quiet sabotage of our cultural program in Poland.
I realize that the Department is not willing to tie this matter up with PL–480 and I am not inclined to quarrel with that decision. I do think that, in any case, better tactics are open to us. It would seem to me that when we get tripped on hurdles such as those mentioned by Pic we should squawk as loudly as we can and as, in point of fact, we on several occasions have. Then when the Poles come around again for PL–480, which I confidently expect they will have to, I think that we might make a distinctly modest offer to sell them PL–480 commodities in the amount say of ten to twenty million dollars, the exact amount to be determined by the degree of cooperation they have shown in the preceding year. (Of course if they had really been cooperative I would increase the amount.) I would attach no strings to this other than publicity—in other words, I would make it so attractive in so far as it goes that they would not wish to turn it down even though they would be disappointed in its amount. Then when the Poles come storming in as they did this year and say we were not giving them anything like what they needed I would recount to them sweetly their lack of cooperation during the year, and say that under the circumstances this was all we were disposed to offer. I would trust that these tactics would convince them that cooperation is a two-way street.
There are a number of other things which I have mentioned to the Department in the course of the year I have been here, but have received no satisfaction. I continue to feel that I should be instructed to discuss them with the Poles. These include such matters as the outrageous ground rents they charge us for real estate (the Embassy residence property and the school land being horrible examples), the arbitrary rents they have imposed on us, and the discriminatory exchange rate (a Pole can get 72 zlotys for his dollar and an American only 24).
[Page 154]As it appears unlikely that anything will be done to change the Ellender amendment,2 I suggest that serious consideration be given to raising the exchange rate problem with the Poles prior to any further PL–480 discussions. I am not at all convinced that we pressed this issue with sufficient vigor prior to the 1961 agreement and the record is clear that nothing has been done about it since. This is an issue of major significance which has direct relevance to PL–480 sales. (For a recent discussion of this issue you may wish to read Embassy airgram 628 of February 8, 1963.)3
I do think that in our relations with Poland it is always important to keep the door firmly open and on that account would not wish to press the Poles on PL–480 to the point that they turned down our final offer. I do believe that we should extend cooperation to them, provided there is some relation between the cooperation we extend to them and that that they extend to us. On the other hand, I think it is very important for us to bear in mind the fact (and it comes out time and again by implication in their own official statements) that our cooperation, notably our PL–480 agreements, are giving them very real help in developing the country’s economy—and after all, Poland is a staunch member of the Warsaw Pact. Therefore, much as I believe in keeping the door open, I do not think we should be over generous. I do, incidentally, believe that we should play square with them and continue to feel that we should maintain MFN for them on both moral and practical grounds.
In connection with the thoughts I have expressed in this letter you might wish to read my Airgram 519 of March 15, 19624 and Despatch No. 359 of March 22, 1962.5
Sincerely yours,
- Source: Department of State, Polish Desk Files: Lot 68 D 3, Official–Informal. Confidential; Official–Informal.↩
- Not printed. It summarized Embassy difficulties with the Polish Government.↩
- The Ellender amendment to Title I of the Foreign Assistance Act of 1961 reduced the borrowing authority of the DLF for 1963–1966. For text of P.L. 87–195, approved September 4, 1961, see 75 Stat. 426.↩
- Airgram A–628 reported on Polish press coverage of the P.L. 480 agreement. (Department of State, Central Files, AID (US) 15–4 Pol)↩
- Airgram A–159 forwarded recommendations for exploitation of the P.L. 480 agreement. (Ibid., 611.48/3–1562)↩
- Despatch 359 reported on Polish rent “gouging” of the Western diplomatic corps. (Ibid., 121.485/3–2262)↩