FOREIGN RELATIONS, 19 4 6, VOLUME VI



American interests would not be properly protected unless there were
provisions for some sort of impartial determination of the value of
United States properties nationalized.
  The Poles have proposed, and I understand we are considering, that
a public announcement be made of the "successful" outcome of nego-
tiations and that the Polish delegation be given a written assurance,
not for publication, that action on the proposed cotton credit may be
expected by February 1. It is also proposed that a general statement
of the above agreement be initialed before the departure of Minister
Mine on December 27 and the agreement be worked out in detail at
a later date.
  I am very strongly of the opinion that the proposed arrangement
for compensation is quite inadequate to protect the interests of United
States property owners, that it will inevitably be the cause of serious
criticism, especially from small Polish-American claimants, and it
may well be the cause of serious embarrassment to the Department
and to the Secretary after the convening of the new Congress.
  In addition it should be borne in mind that any concessions made
by this Government to Minister Mine prior to the forthcoming elec-
tions in Poland will be used by the Polish Provisional Government as
proof of our support of that Government and to the detriment of the
majority of the democratic elements of the country. The Secretary,
himself, has already said that it would be preferable if any agreement
on compensation and the return of Polish gold should be deferred
until after the Polish elections.
  The Poles say that Mine had been led to believe that the Polish
cotton and tobacco credits would be considered at the same time as
the arrangement for compensation and the Poles plead that he would
be subject to very serious embarrassment if he were to return home
empty-handed. I can perceive no reasons, political or economic, why
we should be swayed by such arguments. Mr. Minc is one of the most
stalwart Communists in the Warsaw Government. Any repercussions
from the failure of his mission would redound only to the disadvan-
tage of the Moscow-dominated group in Poland. He would not have
come to the United States on this mission unless there was strong
pressure of economic circumstances in Poland to seek an agreement
with the United States. Acceptance of the Polish proposal has been
based upon the false premise that they could not be brought to accept
an arrangement which would provide for a truly impartial procedure
for valuing United States property. Personally I feel confident that if
we remain firm in our position, Mr. Mine will eventually have to make
sufficient concessions to permit the establishment of what we consider



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