4.   The Soviet Attitude toward the United States Participation.
     
     The attitude of the Soviet Union toward American par-
ticipation in the reconstruction of Poland and the Balkans 
is uncertain.  It seems clear that, for security reasons, 
the Soviet Government is seeking to make sure that these 
countries will be oriented to the East, both politically 
and economically.
     
          However, in the case of one or another of the border 
countries, Poland for example, the Russians might have 
grounds to feel at an early date that an Eastern political 
orientation was more or less assured in any case and that 
foreign loans to such countries could have no decisive
influence in this respect.  Furthermore, the Soviet Union 
will have some interest in seeing that her neighbors 
prosper under the tutelage.
 
          The Soviet Union probably would like most to borrow 
herself the money that might be available for the border 
countries, and to finance from the resources available to 
their reconstruction and development needs.  The Soviet 
Union might prefer, in any case, to have the reconstruction 
and development of the border countries financed through 
the International Bank rather than through direct loans 
from the United States.