506           FOREIGN RELATIO:NS, 19 4 6, VOLUME VI

object to preliminary discussions as envisaged above. It would not
seem to me that such discussions would be at variance with the broad
objectives outlined in your 4787 of Sept 24 (Delsec 986) .3
  Upon your return we can discuss in greater detail what course of
action we can pursue, in light of our commitments as a member of
the International Bank and Fund, to achieve your objectives of pre-
venting or limiting assistance to countries opposing the principles for
which we stand. In this general connection, the US Executive Di-
rector has made the following suggestion:
  "We could take advantage of the relatively large demands now
being made by applicants and the fact that the Bank can enter into
commitments for but $400-$500 million this year to proceed very
cautiously with the Polish and possible Czech requests. Western
European countries will probably be receiving some $300 million, and
Latin America say $50 million. The status of applications is such
that these requests will probably be acted on a little more quickly than
those of Poland and Czecho. The Bank would in no case wish to allot
more than $75-100 million to Eastern European countries this year,
and possibly not more than $50 million to one. The Bank could choose
the very best projects, linked to Western European economic needs
which would help to insure hard money proceeds for interest and
amortization.
  "This method would be consistent with the Articles of Agreement,
would insure the consideration of only the best economic projects of
Eastern Europe, and would permit a cautious development of our
participation through the Bank in such lending activities."

                                                          ACHESON
860C.00,/10-846: Telegram
    The Ambassador in Poland (Lane) to the Secretary of State

SECRET                           WARSAW, October 8, 1946-11 a. m.
                                  [Recived October 10-2: 50 p. m.]
  1559. Since the termination of KRN meeting September 23 38 we
have had numerous talks with Poles of various political parties and
leanings and with diplomatic colleagues. On basis these talks and
out of observation we submit following conclusions on present situ-
ation and on possible future developments:
  Action of KRN in forcing passage of electoral law which in effect
permits fraudulent practices in counting votes in coming elections

  7 In this telegram, the Secretary reviewed United States policy with regard
to economic assistance to various countries in Europe and the Near East,
partic-
ularly Greece and Turkey. The telegram said in part "In a word we must
help
our friends in every way and refrain from assisting those who either through
helplessness or for other reasons are opposing the principles for which we
stand."
For the full text of this telegram, see voL VII, p. 223.
  3 The 11th session of the National Council of the Homeland was held Sep-
tember 20-23, 1946.