Moscow its to cover
as well asillion-ruble deficitarlier, the Soviets had threatened to force the Poles to balance their trade with the USSR. There wasion in the trade protocol of hard currency credits.
Soviet and Polieh leaders yesterdayrade protocol that permits Poland torade deficit with the USSRillion rubles The Pope etill i?rip to Poland in August, but he and the Chia-vh have only limited influence on the martial low authorities. Moscow's initial public criticism of the talks on Tuesday fee&Mgn President Reagan and Chancellor Schmidt was prediotable. -MB
yesterday granted Poland soft currencyi11ion-ruble trade deficit this year
The Pope's visit
Vatican official
Lshop Poggi indicated'
(yesterday that Pope John Paul
s considering going ahead with his planned visit to Poland in August. His decision depends on how theadapts to martial law. During his visit in late December, Poggi asked Foreign Minister Czyrek and Premier Jaruzelski for the installationommunications line between the Pope and Archbishop Glemp.
The Pope would like to go "home" to be with his people to give them moral support. He also may hope that the prospect of his visit would encourage the government to tone down the harsher aspects of its rule. In this regard, Poggi noted that during his trip prison conditions improved, and he attributed this to the regime's respect for the Pope.
the other hand, the Pope probably considers thatisit might give an aspect of legitimacy to the martial law leaders. This factor would be decisive only in the case of an increase in repression,
There are risks for the authorities in allowing the visit, and they might decide to stall. Delay, however, would have negative repercussions on the population. The regime is aware that many Poles mark the Pope's visit9 as the beginning of the social atmosphere that led to the strikes and creation of Solidarity
2
Approved for Release
The government also realises that it would not be able to controlisit to its own advantage. aaj
The Church's Influence
Despite their authority,imited ability to affect policy decisions by the martial law regime. This is partly duo to the Church's aversion to interfering in clearlymatters. Horeovor, some government leaders accuse the Church of having been too pro-Solidarity and point out that some of union leader Walesa's advisers were closely associated with it.
The government is also well awareit isfact that the Church will not encourage active opposition to martial law because of its basic interest in preventing bloodshedoviet invasion.
In contradiction to government reports, ayesterday scoffed at the idea that theregineonductiialogue. hat the Church is not
considering giving sancWarT^to Walesa. The source left
HHsaavt-hr- impression that the Church is preparinga long contest with the martial law authori-ties.
The regime already has demonstrated that it isChurch activities closely and is willing to useto gain conformity.'_
Baeejflthe secret police hove warned priests not to go too farin their sermons. The authorities alsorison priest from visiting detainees after Archbishoi Glemp had paid an unexpected visit to the prison,
Soviet Commentary
Although Moscow criticised the talks betweenReagan and Chancellor Schmidt, it was less critical of Schmidt than of Reagan. TASS attacked both leaders for attempting to "dictate to the Polish leadership" but noted that Schmidt "kept hie own opinion" of that
inefficacy of sanctions against the USSR. The commentary significantly failed to mention Schmidt's public agreement with the US position that the Soviets ultimately bear responsibility for events in Poland.
An economic newspaper published an article yesterday that accuses the US of systematically manipulating its food aid to interfere in Poland's internal affairs. It alleges "unparalleled duplicity and hypocrisy" on the part of the US in using blockades, sanctions, and other forms of interference throughout the period following world War II. It fails, however, to mention0 grain embargo against the USSR. Moreover, there is no reference to Moscow's own food aid policy, possibly
unpopularity of food aid to Poland.
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Original document.
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