Reference: My telegram No. 49 of October 30, 1952.

I attach copies of our office translation of a note from the Polish Ministry of Foreign Affairs on this subject⁸⁷ which we received yesterday. You will notice that the Polish authorities claim that our Note No. 145 of October 30th, of which I attach a copy,? misrepresented the position about the possible visit to Poland of a Canadian customs official. The Poles have, however, taken two and one-half months to protest against the text of our Note of October 30th and even now they do not say that they would permit a visit to Poland of such a customs official. I have no particular comments to offer on the remainder of the note. As it was simply delivered to the Legation rather than being handed over at an interview, we have not been given any further information on the subject by the Polish authorities.

T. LEM. CARTER

[PIÈCE JOINTE/ENCLOSURE]

Le ministère des Affaires étrangères de Pologne
à la légation en Pologne [Traduction]

Ministry of Foreign Affairs of Poland,BR>to Legation in Poland [Translation]

The Ministry of Foreign Affairs presents its compliments to the Canadian Legation in Warsaw and in connection with the Legation's note of October 30, 1952, No. 145, concerning Canadian customs charges on goods exported from Poland to Canada, has the honour to advise the following:

On May 28, 1952, in a note addressed to the Polish Legation in Ottawa, the Canadian Ministry of Foreign Affairs advised that it was meeting with certain difficulties in establishing the value of Polish glass wares exported to Canada, this value being the basis for calculating the amount of the customs charges.

After having examined the matter, the Polish Legation in its note of July 7, 1952, gave full particulars which evidently were recognized as sufficient since the Canadian authorities did not make any further stipulations or claim additional particulars to be given.⁸⁸

Nearly at the same time, the Canadian Legation in Warsaw in its note of July 4, 1952, asked as a preliminary enquiry what attitude the Polish Government would adopt towards a proposal to send to Poland, in case of need, a Canadian official who would examine the costs of goods exported to Canada. The Canadian Legation asked in addition in the same note, whether the Polish Government was prepared to facilitate the provision of information concerning the prices and costs of production of these goods.

The Ministry of Foreign Affairs explained to the representative of the Legation on October 16, 1952, that the only matter at issue concerning the prices on Polish exports had been meanwhile cleared up, and that the Ministry was always ready to give any information necessary to elucidate whatever doubts arise in relation to the prices on any other articles exported to Canada. Referring to the eventual proposal of a visit of a Canadian official to Poland, the Ministry of Foreign Affairs expressed the opinion, that the extent of commercial relations between Poland and Canada did not require particular investigations in Poland by Canadian customs authorities. The Ministry of Foreign Affairs expressed at the same time its readiness to consider any new proposals by the Canadian Government.

The Ministry of Foreign Affairs feels compelled to recall the development of the question in full detail considering that the Legation's note of October 30, 1952, at variance with the facts quoted above, states that: "the Polish authorities do not wish a Canadian customs official to visit Poland in order to obtain information concerning the value of goods exported to Canada".⁸⁹

The purpose of such distortion of facts in the note by the Canadian Legation becomes clear in the light of the procedure of the Canadian Government in relation to Polish goods exported to Canada. On November 4 already, Mr. McCann, a member of the Canadian Government, publicly declared that additional customs charges would be clamped on the goods exported by Poland. On November 10, it became evident by published data, that the Canadian Government had increased by about 50% the customs charges on a series of Polish export goods, a number of textile goods, glass wares and Christmas tree decorations among other things. Press and radio commentaries of November 18, 1952, based on official information, stated that these moves on the part of the Canadian Government meant a policy directed against the import of Polish goods.

This procedure on the part of the Canadian Government leads to an entire stoppage of Polish exports to Canada and is a violation of the Canadian-Polish Trade Convention of July 3, 1935, of its Article III in particular which reads:

"Articles produced or manufactured in Poland shall not, on importation into Canada, be subjected to other or higher duties or charges than those paid on the like articles produced or manufactured in any other foreign country".

The Polish Government resolutely protests against this unmotivated procedure of the Canadian Government in relation to Polish exports; it is at variance with clearly stated commitments and the Polish Government feels compelled to appraise it as a glaring and inadmissible discrimination.

The Polish Government resolutely claims an immediate abrogation of discriminatory customs orders, making possible the sale of Polish goods in Canada on principles respected in relation to other countries and provided for in the Polish-Canadian Trade Convention.

The Polish Government states at the same time that Polish exporters have been told to furnish any information necessary to justify the invoice value of the goods exported by Poland.