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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 542

the British and American authorities in respect of non-discrimination
and then it would not take long to present detailed proposals together
with justifications for the proposals.
  Mr. Feis reiterated the importance which the United States attaches
to non-discrimination. The Poles said they understood the United
States point of view on this and had cabled Warsaw of yesterday's
conversation. Mr. Feis assured them that we also understand their
difficulties, and that he was sure the Secretary would wish him to
express his appreciation of the work the Polish representatives had
done in this matter and their action in fully informing the Depart-
ment and discussing the problem with it.
  The Poles said they were not too optimistic as to the task of obtain-
ing acceptance by London of terms which could also be extended to
American bondholders. The British were no longer holding out for
full payment of the Stabilization Loan coupons, but had said in the
negotiations for permanent settlement that they would not accept a
lower rate than something between 5 and 6%, which was the cost of
other Polish credits in London. In reply to a question, Mr. Ruczynski
said that he thought there would also be some reduction in the interest
rate on the British industrial credits to Poland.
  After the Poles had left, Mr. Feis telephoned Mr. Francis White,82
in confidence, regarding the conversation. Mr. White seemed rather
taken aback by the new development and the return of the Poles to a
41/4% rate after a 41/2% rate had been offered orally. He suggested
that an adjustment covering the next three years might be negotiated.
Mr. Feis assured him that the Polish representatives expected to con-
tinue negotiations for a permanent settlement and that it appeared
that their unilateral tender of 41/4%o rate for current coupon payments
might represent a desire to test the British position.
                                           F [RmI~cK] L [IVEEY]
Memorandum by the Assistant Adviser on International Economic
                        Affairs (Livesey)
                                [WASHINGTON,] November 29, 1937.
  I telephoned Mr. Zoltowski at his New York office and told him that
Mr. Rucinski on November 26 had informed the Department through
the Embassy at London 3 that the Polish Government has decided to
offer the British tranche of the Polish stabilization loan the extension
' Executive Vice President and Secretary of Foreign Bondholders Protective
Council, Inc.
"Mr. Rucinski's information was contained in telegram No. 737, November
1937, from London (860C.51/1262).

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