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United States Department of State / Foreign relations of the United States diplomatic papers, 1937. The British Commonwealth, Europe, Near East and Africa

Poland,   pp. 525-563 PDF (14.2 MB)

Page 526

eralize to Poland if Poland ceases to discriminate against Amerian
  Mr. Wankowicz replied that his Government is equally anxious to
bring about a reduction in trade barriers. In regard to quotas, he
pointed out that Poland has a flexible quota system and cannot agree
to grant to the United States a proportionate share of total permitted
importations in accordance with the formula which we -customarily
include in our trade agreements. Poland could, however, deal in
fixed quantities, i. e., would specify for each product the minimum
quantity which would be permitted to be imported from the United
States. He said that the fixed quotas granted by Poland are usually
in excess of actual imports, since this helps to keep internal prices
down and insures the better quality resulting from competition. In
regard to exchange allotments, Mr. Wankowicz said that this was
not done on a proportionate basis in accordance with provisions such
as we include in our trade agreements; that the amount of imports
and the amount of exchange allotted are made dependent on each
other. With reference to compensation trade, he said that if we
solved the quota and exchange problems, the compensation system
would probably take care of itself; that Poland would probably be
able to do away with the requirement that importers provide certifi-
cates showing equivalent exports to the United States. This would
be possible because the agreement could be made to provide for suffi-
cient exports from Poland to pay for imports from the United States
and the application of the compensation system, shipment by ship-
ment, would, in his opinion, be unnecessary.
  Mr. Sayre pointed out that Poland's market in the United States
cannot be as great as our market in Poland because Poland needs so
many of our raw materials. He reminded Mr. Wankowicz in this
connection that trade cannot, economically, be made to balance be-
tween each pair of countries; that trade is naturally triangular or
polyangular. Mr. Wankowicz agreed with this. He said that trade
between the United States and Poland could not be promptly and
artificially brought into balance, but that Poland expects us to help
it increase its exports to this country. He gave the impression that
Poland would seek to make the trade balance as far as practicable.
However, in response to questions, Mr. Wankowicz stated that, in his
view, the chief object of the negotiations would not be to bring the
trade between the two countries more nearly into balance.
  In response to a further question regarding the compensation system,
Mr. Wankowicz said there is reason to believe it might be abandoned
3F or correspondence concerning Polish discrimination against American trade,
see Foreign Relations, 1935, vol. iA, pp. 629 ff.; and post, pp. 543 if.

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