Foreign Relations of the United States, 1969–1976, Volume XXIX, Eastern Europe; Eastern Mediterranean, 1969–1972

170. National Security Decision Memorandum 173¹

Washington, July 7, 1972.

TO

• The Secretary of State
• The Secretary of the Treasury
• The Secretary of Commerce

SUBJECT

• Polish-US Economic Relations

1. Export-Import Bank Credit Facilities

Exercise of the Presidentʼs authority to extend these facilities is tied to a solution of the claims of US holders of dollar bonds issued by the pre-war Polish government. The Secretary of State should notify the Foreign Bondholders Council that the US Government continues to favor a reasonable settlement of US holdersʼ claims within a reasonable time. If Polish government representatives inquire when Export-Import Bank credit facilities can be made available to Poland, they should be informed that the President, in accordance with his discussions in Warsaw, will make this decision in light of the status of negotiations between the Polish government and the bondholdersʼ representatives.

2. Deferral of PL–480 Dollar Debt

In response to Chairman Jaroszewiczʼs message on this subject to the President of June 5, 1972,² the Department of State, after appropriate coordination with the Department of Commerce and other agencies, should inform the Polish government that we are willing to defer the dollar tranches under the PL–480 agreements which fall due in the years 1973–1974 for a period of five years, i.e., so that these payments will be made in the years 1977 and 1978. Toward the end of 1974 we would be prepared to consider deferral of further tranches. This is contingent, however, upon appropriate assurances from the Polish government, as proposed in the aide-mémoire of December 2, 1971,³ and Chairman Jaroszewiczʼs letter of June 5, 1972, to the President, that Polish enterprises will purchase in the United States during the period 1972–1973 machinery and equipment for the amount equivalent to the total of deferred tranches.

• Henry A. Kissinger
• PMF

1. Source: National Archives, Nixon Presidential Materials, NSC Files, Box 699, Country Files—Europe, Poland, Vol. II 1972. Confidential. Copies were also sent to the Secretary of Agriculture, the Presidentʼs Special Representative for Trade Negotiations, and the President of the Export-Import Bank. Also issued as CIEPDM 8.
2. See Document 169 and footnote 2 thereto. An unofficial translation of Jaroszewiczʼs letter of June 5 is also attached to a June 16 memorandum from David to Kissinger. (National Archives, Nixon Presidential Materials, NSC Files, Box 699, Country Files—Europe, Poland, Vol. II 1972)
3. Not found.