860C.51/7–546
The British Embassy to the Department of State
Ref: 1212/133/46
Memorandum
On the 28th June, 1946, the United States Minister in London communicated to the Foreign Office a copy of the State Department’s press release of the 27th June regarding the conclusion of the United States Polish loan and credit negotiations, which contained the following passage:—82
“As to the Export-Import Bank Loan the Department of State felt, the spokesman said, that final action on this should wait until this Government has received assurances that the Polish Provisional Government has carried out all the conditions under the Agreement of April 24th, 1946 under which the credits were to be extended”.
“Assurances of ‘free and unfettered’ elections and a non-discriminatory trade policy on the part of Poland were the chief points of the conditions requested for the credit extension”.
- 2.
- As the Foreign Office understand it, the State Department’s position is that the $50,000,000 credit for the purchase by Poland of United States surplus property cannot be delayed since the specific conditions attached to this agreement are being fulfilled by the Polish Provisional Government; but that final conclusion of the Export-Import Bank credit can be held up pending satisfactory evidence regarding pre-electoral treatment of the Opposition parties in Poland, assurances regarding the freedom of elections having been mentioned to the Polish authorities in connexion with the negotiation of this credit.
- 3.
- The Foreign Office informed the Polish Embassy in London on June 29th of the conditions which His Majesty’s Government wish to see fulfilled, before they ratify the Anglo-Polish financial agreement of the 24th June. The text of this note, a copy of which is attached,83 has not been published; but the gist of it has been given to the press in London and included in the Polish language broadcasts of the British Broadcasting Corporation.
- 4.
- In the meantime His Majesty’s Ambassador at Warsaw has reported that the news that the suspension of the transfer of surplus United States property had been cancelled and that the Export-Import Bank loan would be finally concluded, together with that of [Page 474] the signature of the Anglo-Polish financial agreement, has been well advertised in the Polish press, where these developments have been represented as an outstanding triumph for the Polish Provisional Government. The Polish press naturally omits mention of any suggestion that political conditions are attached to the ratification of these agreements. The Foreign Office express the hope therefore that the United States Government will in fact hold up the final conclusion of the Export-Import Bank credit (or at least threaten to suspend the deliveries of railway material for which it is granted) pending satisfaction on the points mentioned in the attached Foreign Office note to the Polish Embassy. They also hope that the United States Ambassador at Warsaw may be instructed to make a communication to the Polish Provisional Government on the lines of the State Department’s statement quoted in the first paragraph above, at the same time making his action known inside Poland in order to counter the effect of the release of surplus United States material.