POLISH TRADE TALKS, 5 APRIL 1957

• Document Type: CREST
• Collection: General CIA Records
• 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
• Publication Date: April 6, 1957
• Content Type: MF

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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.
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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.
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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,'
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Office of Rusearcm and Reports
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