860C.51/1–1946: Telegram

The Secretary of State to the Acting Secretary of State17

secret
priority

692. On Jan 17 the Polish Minister of Foreign Affairs accompanied by the Under Secretary for Foreign Affairs18 and the Polish Ambassador in London19 called upon me for the purpose of discussing the following subjects:20

1.
They complained that Ambassador Lane had informed the Polish Govt that negotiations for an Export-Import Bank loan were being, broken off because of the announced policy of nationalization of Polish industry. They stated that there was no discrimination against American interests in Poland, which in any event were not large and said that the rupture of negotiations appeared to give the impression that the US attitude toward Poland was unfavorable, which helped anti-Democratic elements within Poland. They requested that I issue a statement to the effect that the US was not opposed to the nationalization program.
I stated that the US had no intention of interfering in Polish internal affairs. I agreed to look into the question of the loan negotiations but emphasized that the responsibility of making loans rested upon the Board of Directors of the Bank, who dealt with applications on strictly business and financial grounds.
2.
The Poles raised the question of the funds of the Bank of Poland in the US, which they stated amounted to 35 million dollars, and said that they desired to use these funds in connection with the international bank. I advised them to take this matter up formally with the Dept through the Polish Ambassador in Washington, which they agreed to do.
3.
They stated that the Polish Government was anxious to establish a provisional rate of 1 dollar to 100 zloty in such transactions as the transmission of funds to our mission in Poland, although for commercial purposes some other rate might be arrived at in connection with the discussion of the commercial treaty. They stated that Ambassador Lane had rejected the proposed rate. They also pointed out that the American Embassy did not obtain its Polish currency through official channels.

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I replied that this would have to be considered by Assistant Secretary Clayton and the US Treasury. The Poles pressed for early action. I stated that as I had no one here qualified to advise me on the matter I would refer it to the Dept.

In the course of the discussion the Poles said that the reestablishment of their financial position depended upon coal production, which they expect to reach 50 million tons this year, of which 25 million tons could be exported if they had the necessary transport. They pointed out that the proposed Export-Import Bank loan was for the purpose of purchasing 20,000 railway cars from the US.

Please advise me just what position we have taken on the question of nationalization and on what grounds.

Sent Dept as 692, repeated to Warsaw as 6.

Byrnes
  1. The Secretary of State was in London as Chairman of the U.S. delegation to the United Nations.
  2. Zygmunt Modzelewski.
  3. Henryk Strasburger.
  4. Assistant Secretary of State James C. Dunn, who was also present at this conversation, prepared a more detailed memorandum of conversation which was transmitted to the Department in despatch 8, January 21, 1946, from the United States delegation to the Council of Foreign Ministers at London (860C.51/1–2146).