POLISH TRADE TALKS, 5 APRIL 1957

Document Type: 
Collection: 
Document Number (FOIA) /ESDN (CREST): 
CIA-RDP61S00527A000200040019-2
Release Decision: 
RIPPUB
Original Classification: 
S
Document Page Count: 
3
Document Creation Date: 
November 9, 2016
Document Release Date: 
July 10, 1998
Sequence Number: 
19
Case Number: 
Publication Date: 
April 6, 1957
Content Type: 
MF
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PDF icon CIA-RDP61S00527A000200040019-2.pdf237.06 KB
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Sanitized - Approved For Release : CIA-RDP61500527A000200040019-2 siorstreftwee3"" *1911411.011Misto MEMORANDUM FORt Deputy Director/Intelligence 6 April 1557 SUBJECT: Polish Trade Talks, 5 April 1957 10 After a recess of more than two weeks ir plenary discussions p about one week of which was spent in intensive small group meetings, a full discussion was called for 5 April. The Washington Star, 5 April, early edition had carried an article to the ef ecrtEat the trade talks had broken off0 Talks, will continue although the present offer by the US was called unsatisfactory by the Poles? 20 The American offer which included a triangular deal through Western Europe (probably W. Germany) had been increased from the $30 million originally contemplated to sone gu) million. Although the Polish Delegation had never been officially tendered the $30 million offer, they must have known of its existence. The American Chairman discussed the $80 million offer privately with Mr. Kotlicki the evening of 4 April to permit the Poles the option of withdrawing if the formal offer would prove embarrassing to them0 Mr. Kotlicki at that time indicated that the offer was unsatisfactory in term of size but agreed to a meeting of the delegations for a formal presentation on 5 April? 3. The Chairman of the American Delegation, Mr. Kalijarvi, opened the meeting with a formal presentation of the American offer, emphasizing the fact that this offer had been worked out as carefully as possible in light of American avai/abilities and Polandls expressed require. ments0 The American offer consisted of funds from 3 sourcesr a) Surplus Agricultural Commodities Pp L. 480 $25t000,000 b) President's Emergency Funds P. LO 401 25,000,000* c) Commodity Credit Corporation (Triangular) ....?...9_,_3op0000 $80,000,000 *Would be passed to Exim Bank for loan to avoid certain Polish objections to the conventional aid program. 40 The Chairman of the Polish Delegation, Mt, Kotlicki? thanked the US and indicated that the meetings had demonstrated a continuous atmosphere of good will, but submitted that the results were dia- appointing and unacceptable to the Polish nation. He did, however, want to raise certain questions about the American proposal. Mia, Kotlickigs line of questioning first explored the possibilities of additional aid beyond present offer, then the degree of Polish flexibility both to goods and repayment within the present offer.. Na followed his detailed questions with a request far a short "stump speech" on the Polish agricultural 'situation. gsBuelsMIls. Sanitized - Approver or ?? tif-RDP61soo52ukoon2onnannic1-9 migme Sanitized - Approved For Release : CIA-RDP61S00527A000200040019-2 ? 2 e 5. The last part of the meeting was devoted to Polish reiteeaton of the unsatisfactory nature of the present offer accompaniedb:r Poli desire to continue the discuseions for some time in view of he genuine atmosphere of American good will, Mr. Kotlicki ineiPte! that Poland needed during 1957 a minimum loan of $150,000?0(0 anythine reelly helpful to the Polish econemic situation we t, be achieved? Mx' ? Kalijsrvi again drew attention to the fact ,hat he proffered loan was a lerge program by American aid standeeds and particularly generous in view of the fact that there had been little zonercial interc'neese between Poland end US for almost AM1 years. 6. d'aeli side agreed to investigate the details of the inetzet proee3a1 further, preenineb3y each reporting their respective pos.tione to tneir governnents? Why have the Poles decided to stay Perhaos thq. orviciar the US afar our first position with other better (fer them) )ositioas behend At. More likelys they knout as a result oflia negetiationsi, that Congress is presently considering its 19:i program for agricultural surplus disposal? If a large prrgram is agreed fee' 19589 th Poles may expect that abater loan Yeckage may be put together than is possible with present uncereanty as to the size of the 1953 program. 7. Oevoral general propositions related to the Pelieh pflitical and economic situetion were again underscored ae this rioting, a) Agricultural eroduction is in this deleertdong s mind the crucial sector of the Polish econony. b) Agricelutral ircentives are needed eo improve that production and only by tee ebolitJon of compulsory deliveries do tre Poles tlfnk theee incentives may be aeeuredo c) The political reperouseione of the failure of this mission maybe significante: Iwareekieuice mentioned this and I had the opinion he was particularly concerned about the impact of the annoincement eo continue compulosory deliveries upon the peas ant d) Poland. is attevting L) liberalize its industrial production particuleriy in coneumer goods industries (food and textiles), but else its steel indestries? The latter reference may relebed to recant Polish attempts to secure iron ore ill Vereeuela. Much of the present predisposition of a large share of Polan&s trade with the USSR has been consideved based upon the favorable terms on ehech Soviet iron ore could be imported for the support of the geeatly enleeged Polish steel indeetry. rieetee*Pileelei* Sanitized - Approved r1eiVLiF1i4 S00527A000200040019-2 Sanitized - Approved For Release : CIA-RDP61S00527A000200040019-2 3 - e) The necessity for reserves is critioal to the development of sustained production in industry as we12? as in agriculture, The present Polish government cannot depress production of consumer goods,which it has promised the Po4sh people,to get reserves which it needs to aesure fficients low-cost production of these sane consumer goodso 80 No date was set for ,a future meeting of the full delegations,' 25X1A9a Office of Rusearcm and Reports "SP Sanitized - Approved For Release : CIA-RDP61S00527A000200040019-2