PRELIMINARIES TO ITALO-POLISH COMMERCIAL AGREEMENT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00457R002700790010-9
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 3
• Document Creation Date: November 9, 2016
• Document Release Date: January 4, 1999
• Sequence Number: 10
• Publication Date: May 23, 1949
• Content Type: REPORT

C ASSIFIGA11ON 25X1 A2g
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Approved For "At -.Cy P82-0
INFORMATION REPORT CD NO.
COUNTRY Italy DATE DISTR. 23 1A1 Y 1949
4UBJECT Preliminaries to Ital.-Polish Commercial Agreement NO. OF PAGES
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ACQUIRED 10 014
DATE OF INFO. Sae below 25X1 X6 '0II4
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NO. OF ENCLS.
(LISTED BELOW)
SUPPLEMENT TO
REPORT NO.
-lornv'si Ot the United'
Next Review Date: 2008
. 'Al
,
company which controls the mechanical industry) sent a circular
letter to all the firms under its jurisdiction to inform them of
the desires and criteria to be used by the Polish Government in
negotiati for a renewal of the Italo-Polish commercial treaty
which expires on 30 June 1949. Preliminary discussions were
scheduled to begin on 20 April 1949. The Italian 'Ministry of
Foreign Commerce was informed that twenty Polish experts were to
arrive from Warsaw before that date.
On 28 February 1949 the Finmeccanica (Italian state-
1
2. The desires of the Poles were explained verbally by Polish economist
Dr. Adam Rose, who attended a mmeetin held at the offices of the Iftl
Istituto Ricostruzione Induntriale on 23 March 1949. The Poles
were greatly interested in purchasing Italian industrial products
and., as in the past, they wanted to pay for these products in coal.
This type of payment is very acceptable to the Italian industries
themselves. At this meeting, which was attended by representatives of the Polish
sinistry of Foreign Commerce, Dr. Rose made the following points:
a. During the last period, Italy had negotiated r;ith Poland
only annual clearings based on 750,003 tons of coal. Other
e tra*clearing compensations made with private persons
accounted for an additional 250,000, tons of Ac's mwhang0d.
The Polish ',overnment hoped to increase this cuantity
and to extend the clearing period to at least three years
in order to be able to negotiate. the delivery of industrial
goods;
The Polish Government would be willing to send one
million tons in the annual clearing for exchange for
all products of immediate delivery,, and a total of
five million tons in three years for the industrial
goods with the understanding that the five million
tons could be kept at a minimum the first year and
would reach- a maximum the third year. Poland is willing
to bring the price of coal to a competitive level;
y,t
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c, The industrial goods which Poland desires from Italy,, in
exchange for the sixty million dollars worth of Polish
coal,, may.be summed up as follows:
Boilers and accessory
equipment, including
turbines, generators,
transformers, switches,
control switches and
other accessory equipment 6,000,000
2. Machinery and installations
for iron works; blast
+'urnaces 0 O O . . . O .
30
50
Tooling machinery, especially
large machinery . . . .
Motors for ships . . . . . .
Parts for ships a o . . .
10,OOOo000
3,000,000
-
102,000,0000
7,000,000
6, Ramps, turbine compressors,
electric motors, cranes,
etc. O O 0 , . P O . O
70
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Total. $e 60,000,000
d0 The Poles believe that industrial goods should preferably be
exchanged exclusively for coal, which allows the most rapid.
exchange, but they are ready to include raw products up to
one-third of the total value of the goods imported ahould this
be considered indispensable by Italy o* They believe that it is
easier to negotiate for the exchange of raw materials through
private negotiations;
e, The Poles believe that it would be best to create a government
agency as in France, to take care of these exchanges. The reason
is that during the first year the Poles will be creditors, during
the second year the situation will reverse itself and Italy will
be creditor for about fifteen million dollars, the third year there
should be a complete equilibrium. This situation will require fide
ssis and imanobilizations which can best be guaranteed by a
government agency,
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6,000,000
3,000,000
running on tracks, etc.) 15,000,000
Precision machinery . . . .
Vehicles of all types (auto-
mobiles, trucks, self-
propelled vehicles
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f. The Poles also wish that it be borne in mind that since they
are offering the coal at the international commercial value,
they expect the price of Italian goods to be on the same level.,
4o The two'Poles in charge of negotiations are Ludwik Wedolovaski and
Wincentry Piekar?ek, Commercial Attachesof the Polish l rhassy,ti Roe?
5 The Finmeccanica has suggested that the Italian firms contact the
Polish Commercial Attache and the Comarnercial Counsellor to coma nce
negotiations before the arrival of the Polish experts. In this manner,
the Italian firms will be able to discuss precise offers, since the
Poles wish to negotiate contemporaneously the agreeents on supplying
the coal and the industrial products.
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MENRomment *; According source, Italy has a twofold
interest in obtaining raw products. One is economic, the
other political:
a0 The econonc interest is due to the fact that in
order to purchase raw products, Italy h:s to pay
in strong currency. This cannot be obtained from
the sales of Polish coal which cannot be re--exported;
and
b. The political consideration is that with the
organization of the Italpolcarbo firm the more
Polish coal that enters Italy, the more funds
become available to the PCI (Partito Comu!nista
Italians.
U. 0. or, to
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