POLISH REQUEST FOR LONG-TERM CREDIT TO COVER PURCHASE OF U.S. SUPLUS AGRICULTURE COMMODITIES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP61S00527A000200040026-4
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 6
• Document Creation Date: November 9, 2016
• Document Release Date: July 10, 1998
• Sequence Number: 26
• Publication Date: March 11, 1957
• Content Type: MF

Sanitized - Approved For Release : CIA-RDP61S00527A000200040026-4
11 YArch 1957
) RAMW FOR: Assistant Director for Research and Reports
SUBJECT: Polish Request for Long-Term Credit to Cover Purchase
of U.S. Surplus Agricultural Commodities
1. Mr. Kotlicki presented the Polish request and prefaced his
specific request with a short svemary of the recent negotiations and the
position of Poland vis-a-vis U.S. limitations. The Polish Delegation
had examined the "high wall" involved in the statement of U.S. limita-
tiona and had seen that Poland might get a few goods through the "ehlnka
in the wall." Wbat Poland "could get through the wall" would not be
enough, however, "the wall most be removed." Poland was not after
"philanthropic aid", they wanted an opportunity to put their economy in
order. Their wants were sufficiently large and their balance of pay-
meats sufficiently strained that they could not pay cash. They needed
long-term credit but would be willing to repay the loan in dollars it
this were necessary to secure credit.
2. Mr. Katlieki thm presented the "moat urgent" portion of the
Polish request for U.S. surplus agricultural commodities:
1) Poland needs 100,000 MT of cotton to meet certain deficits
in the supply of her textile industry.
a) 30,OA0 MP of this import would be required during 1957
to cover the current year gap for which they bad no
Sanitized - Approved For Release : CIA-RDP61S00527A000200040026-4
 Sanitized - Approved For Release : CIA-RDP61S00527A000200040026-4
fixed supply agreewrnt and no foreiga exchange with
which to bvy dItaatly from the Went.
-? Poland plane to process 105,000 NT of cotton in 1957.
MMY will get 65,E W from USSR,
10,000 iff from Rapt and others.
They need above 30,000 NT to fill the gap.
A second 30,000 MT will be required in the first 6
==the of 1958, Poland plans to process 115,000 14T in 58.
c) The remaining lO,000 HT would be imported to be used as
a reserve (really an inventory in American usage) to
maintain continuous production. Present reserves of
cotton cover only,a few days production. Failure to
receive import shipments promptly leads to frequent
slow-downs or shut-downs in textile mills, creates a
situation in which a full line of planned output can-
not be produced, develops certain seasonal peaks of
production, all of which factors tend to raise the Cost
of production and reduce the quality of the finished
product.
Current Polish exports (1956?) of textiles are about
93 million running meters, about 20'percent of which
export is to the Bloc, no textile export to the U.S.
Sanitized - Approved For Release : CIA-RDP61S00527A000200040026-4
 Sanitized - Approved For Release : CIA-RDP61S00527A000200040026-4
2) Poland needs 70,000 Mr (pare tat content) of oil seeds, oil
and oil cal a.
a) The following specific oil shortages asst be net by
saports fros the U.S. dnriag 19579
oil seeds
7,000 IC (pure fat content)
taLUW
13,000 OR
-~ n
vegetable oil
5,000 !@
lard
5,000 NT
b) Shortages during the let 6 mouths of 1958 to be net
by V.B. imports are:
oil seeds
5,000 HT (yure tat content)
tallow
8,000 mr
vegetable oils
2,000 I
lard
5,000
e) The remaining 20,000 IC would be organized into a
reserve, the rationale for which was outlined in
almost identical fashion with that given in 2. 1) c)
above. Reserve would be made up of:
oil seeds
8,000 MT (pure fat content)
tallow
10,000 !a
vegetable oils
2,000 10
Sanitized - Approved For Release : CIA-RDP61S00527A000200040026-4
 Sanitized - Approved For Release : CIA-RDP61S00527A000200040026-4
3)
Poland's total stock of oil seeds, oils and fats an
-1 January 1957 we 8,000 IV. Pol.and's annual production
of all and song is plaunsd at 153,E MT for 1957 sad
180,000 E for 1958. Poland's anal. pry duction (in
pure fat content) for 1957 vill be 25,000 XT of oil
seeds and 17,040 MP of -Wm fate." Poland must Import
a total of 110,000 MT pure fat content during 1957 to
assure her production supply.
Poland will need a total of 1,500,000 MT of grain broken
into wheat, 1,230,000 MT; rye or corn, 180,000 MT, and
barley, 90,000 MT.
a) 500,000 HT of this requirement will be used to meet a
part of the 1,100,000 MT deficit expected in the crop
Year 1957-58. Deficit of the 1956-57 crop Year was
covered by the wheat loan obtained from the USSR.
b) 1,000,000 MT of this request would be used by Poland
to set up an adequate wheat reserve to permit the rapid
reduction of the compulsory deliveries levied on Polish
agriculture. This reserve is based on 3 menthe' supply
of grain requirement of the urban population.
Grain production for 1957 is expected to be 13,000,000 MT.
10,000,000 MT of this total will be required in the
Sanitized - Approved For Release : CIA-RDP61S00527A000200040026-4
 Sanitized - Approved For Release : CIA-RDP61S00527A000200040026-4
coantsysids for food, feed and seed. 2,L40,000 Mr mot be
delivered to t J* state In the focal of oc ulsosy deliveries.
(me was cmoe previously reported as a 30 percent reduction
frog 1956.) The total. market svyply planned from 1957-58
crop Year is 3,500,000 r? This, the plwin; deficit frna
1957-58 crop year is 1,100,000 Kr iadepeddent of the planned
reserve.
4) Poland will need 3,040 HT of wool. All of the wool imported
under this request would be used to set up a stock or inven-
tory program to assure the continuous flow of wool for tex-
tile industries. Poland produced. 8,250 Kr of wool in 1956
and plans to produce 8,700 NT in 1957. They imported 15,900
MT and plan an import of 19,300 NT in 1957 e=luaive of
stock requirasent. It was unclear whether the above Import
was all virgin wool and the following processed or used
wool was Imported in addition to it or whether the follow
lag was a part of the total imports announced.
mports 1956-57 (metric tons)
Caoaodit~-
106
7 (per)
Wool linters
1,323
1,230
Wool rev 0
5,239
4Lo7 0
Sanitized - Approved For Release : CIA-RDP61S00527A000200040026-4
 Sanitized - Approved For Release : CIA-RDP61S00527A000200040026-4
5) Poland requested 20,000 i@ of citrus fruit which vould be
used to ialwov, the quality of the domestic food sully,
wanted the fruit "tor tb*lr chUdrea. " The Poles bad
planned to import a total of 1i2,5oo l!f of citrus during
1957 but they fear that their for.lga exchenga resources
my not permit this level of purchases.
6) Poland also requested 6,000 MT of powdered milk. They
produce a total of 2,500 MT per year and have not in the
past imported this caemodity alt bough they have estimated
an annual requirement for about 9,000 MT.
3. The Polish delegation, after presenting this rather formidable
shopping list, protested that it was cm4 their "mast urgent" requir t
for the periods mentioned., 1957-June 1958, that they had originally
planned a longer list and higher figures for this request. They just
didn't have the "courage to present it" after the American statement at
the previous meeting. Pressed by the American delegaticaa to narrow the
relative priority of the list, Mr. !otliteki indicated "cotton, fats and
grata 'as' most urgent."
4. The Department of Agriculture estimates the export value of this
list at $200 millions and the cost of the Item to the Commodity Credit
Corporation at $300 millions. This office estimates the ocean shipping
sad insurance costs to Stettin at $25-30 milli,
25X1A9a
-6-
Sanitized - Approved For Release : CIA-RDP61S00527A000200040026-4