Dear Dr. Clark,

In reply to your letter of February 22ndt about the possibility of a Canadian loan to Poland, my views of the four questions you raised are as follows:

The political risks involved in a loan to Poland this year.

The extent to which Canada has a general interest in the future of Western Europe which would be furthered by such a loan.

The object of extending credits to Poland is to assist in the economic re­covery of the country. Hence if Poland remains completely in the sphere of Soviet influence, the credits would operate to our disadvantage if our interests and those of the Soviet were in conflict. The credits would operate to our advantage if there is no conflict of interest or if the credits enable Poland to become a viable and independent country with its windows open both to the East and the West. The granting of assistance through credits would strengthen the majority of the Polish people, who do, I think, seriously and passionately believe that their country must retain its political and economic independence.

Whether Poland will remain under Soviet influence and whether our in­terests and those of the Soviet will clash are unanswerable questions but I believe we have more to gain politically than to lose by extending credits. I do not feel, however, that our political interests are sufficiently great to over­ride our own economic and financial considerations.

Since a Canadian credit would be insignificant in relation to Poland's re­quirements, I do not think our action would by itself be important either materially or psychologically. If the United States does not grant substantial assistance, we have nothing of consequence to gain in granting a Canadian credit.

The action taken and likely to be taken by the United States in regard to loans to Poland.

I attach copy of teletype WA-1068 of March 6th† from our Embassy in Washington which I think fully answers your question.

The means by which any Canadian action in this matter could be concerted with that of the United States.

I feel that while our action should be largely determined by the action of the United States it need not be concerted with that of the United States. The United States would not make their course dependent on our coopera­tion so I see no reason why we should commit ourselves. It would be enough, I think, to have Mr. Ritchie informally advise his contacts in the Export-Import Bank of the Polish request on us and of our intention not to deal with it until the United States-Polish negotiations are concluded.

Yours sincerely,
N. A. ROBERTSON