POLAND: DIVISIONS WITHIN SOLIDARITY

Created: 4/1/1981

OCR scan of the original document, errors are possible

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POLAND: Divisions Within Solidarity

Although tht Solldaiily leadership yesterday ratifiedto oancel the general strike, tht union is deeplywhether to accept the agreement Walesa concluded withand debate ie elated to resume this morning. Thehave implicitly oritioised the compromises made by theand will find the possibility of new governmentmore repugnant. Meanwhile, Poland haseferraltan tiaJ^debt^repaymente that Western bankers probably

Union militants aro dissatisfied with the regime's vaguo promises on such issues as the registration of an independent farmers' union and ending legal proceedings against politloal dissidents. Moderates, including Walesa have retorted that they got the best possible deal.

Events of the last week may have temporarily damaged Waloaa's standing within the union. Militant members sharply criticised him for not getting enough concessions and for failing to consult with the entire unionbefore suspending the strike. Some members in one regional chapter even demanded Walesa's resignation. We believe, however, that Walesa can weather auch criticism.

The government partially implemented one of its concessions yesterday by dismissing two deputy governors in Bydgoszcz. Solidarity blamed them for calling in the police in the incident there last month. Such evidence that the regime will keepises^may help union moderates in today's discussions.

Moscow Sticks to Its Guns

The ouster of the two officials will Increase Soviet displeasure over the government-Solidarity agreement. The ability of Solidarity militants to hold upand perhaps force renegotiation of tha agreement will only reinforce the views of thePolishcompromise creates pressure for more concessions. flB

Approved for SeleesMQ

The Kremlin la not backing off from Its strongstance;

Moscow television commentator yesterdaythe Soviet position that the police in Bydgoazct acted "in accordance with the low" and that Solidarity's demand for tho dismissal of tho officials was an "open challenge" to the government.

Monday carried the TASS allegations, re-futed earlier by Solidarity and Polishthat Solidarity had taken over atransmitter andajor highway. In December, the Soviets quicklyimilar TASS story when the Poles challenged

it. m

Poles Seek Debt Rescheduling

representatives Poland's

ForeignkaBkea^for rescheduling of unguaranteed loanseeting in London yesterday withanks fromountries. The request came one day after the banks formally "requested" all Westorn banks with claims on Poland of more than SI million to allow suspension of principal payments of unguaranteed March-June maturities

six months,

In their appeal to the banks on Monday, thethey would continue to pay lntereat. Mostthose that have proviCJ the bulk oftolikely to grant Warsaw'selteenative ls to declare Poland in default. however, would leave the banks with even lessbeing repaid,default raisesrestrict Poland'sgovernments, which have provided mainlyon bank credits, also appear disposed to avoidPoliah dafault. *

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In theory, defaultossibility unless all banks consent to postpone debtments. Under lending agreements,ebtor country declared in default by one bank is placed in default to all other banks.

Poland's chronically precarious external financial position haa become even more desperate in recent weeks. There have been numerous reporte ot late or missed debt service payments.

Poland's debt service obligations ln the second quarter1 axe7 billion0 million in Interest. For the second half, the principal due is aboutillion, and interest due about1 lor.. fMjM

Military Situation

Original document.

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