81. Telegram From the Embassy in Poland to the Department of State0
222. Pass Agriculture. Secretary Freeman met July 31 for more than one hour each with Edward Ochab, Deputy Chairman of Council of State, Adam Rapacki, Minister Foreign Affairs, and Stefan Jedrychowski, Chairman State Planning Commission.1 All are members 10-man Party Politburo hence few if any can speak with more authority, apart from Gomulka and Prime Minister Crankiewicz, both of whom on vacation in Soviet Union.
Although much of conversations devoted to friendly amenities, all 3 raised points we had anticipated: MFN, another PL–480 agree-ment, and boycott of retail sales Polish goods. Rapacki added lecture on dangers of strengthening role in NATO of West Germany, whose intransigeance he predicted would be responsible for preventing NATO–Warsaw Non-Aggression Pact.
Most specific was Jedrychowski, who pressed hard for initiation PL–480 negotiations, pointing out Poland good customer for US agricultural commodities, had for example brought 200,000 tons which committed buy for cash last agreement. When Secretary suggested administration believed tactically safer wait until MFN situation resolved in Congress and better estimate made of Polish harvest, [Page 171] Jedrychowski countered that latter not pertinent, since even with best possible harvest Poland will be obliged import minimum 2 million tons, at most 3 million tons. Has already purchased 600,000 tons this year from Western countries in addition PL–480.
Expressed his regret that US approached PL–480 transactions from political standpoint, with result that international events often resulted in postponement of negotiations. This made planning difficult and strengthened position those elements in Poland who argued that dependence on US agricultural surplusses dangerous because of uncertainty. Raised point (as did Ochab) that of those countries receiving PL–480 only Poland obliged repay in dollars, although forced admit terms were generous. Regretted that “legal obstacles” (presumably referring Johnson Act) made it impossible for Poland purchase more agricultural commodities on normal commercial terms. Predicted Poland would be grain importer until at least 1980.
On MFN said first reaction within his government after Congressional action last year was stop claims agreement payments forthwith, since Poland had accepted claims obligations on clear understanding MFN would be granted. Maintained that even present situation intolerable, since uncertainty of future of MFN had resulted in cancellation or failure conclude substantial number of contracts.
On boycott, Secretary Freeman said that while position taken by Administration and President himself against boycott activities was clear, American citizens free to express opinions. Emphasized that in US political system President unable to exert will over either American people or Congress. Unfortunately international events often strengthened hand of right-wing elements. Made point that Laos in this category.
Comment: Both Jedrychowski and Ochab so firm in associating MFN with claims payments that we have impression reference to suspension payments in retaliation withdrawal MFN just bombast.