82. Telegram From the Embassy in Poland to the Department of State0
306. It is perhaps not necessary for me to remind Department of importance I attach to MFN in connection with American-Polish relations. Polish Government has given strong indications it will cancel claims agreement if we cancel MFN, and considering undeniable connection which exists between these two agreements I scarcely think they could be blamed if they acted in this manner. This means that cancellation of MFN will cost us $34 million. I also feel that this is scarcely the moment to disregard a moral commitment.
There are distinct signs of improvement in our relations stemming largely, I believe, from test ban agreement.1 Publicity in connection with inauguration of tinning mill was definitely favorable. There are reports that Polish media have been instructed to play down attacks on US and also that Thee is being withdrawn from Laos. It would therefore, in my mind, be the more unfortunate at this time to hit Poles grieviously on MFN.
Should Congress insist on cancelling MFN despite the President’s recommendation I suggest that Department be ready immediately to inform Polish Government that we are prepared to enter into PL–480 negotiations. This would at least indicate to Polish Government that we wish our special relations to continue. In this connection I reiterate my recommendation that we endeavor to repeal legislative obstacles to sale of agricultural commodities on credit.