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Eugeniusz Kwiatkowski

In 1926-30, he was the Minister of Industry and Trade of Poland. In 1935-39, he served as the Minister of the Treasury.

Eugeniusz Kwiatkowski

In 1926-30, he was the Minister of Industry and Trade of Poland. In 1935-39, he served as the Minister of the Treasury.

Hour 1800. Report with the President of the Republic: I discuss all draft ordinances in succession, I also state that the Minister of the Treasury will do everything not to allow the rapid depreciation of the zloty, but in fact, everything depends on the military, whose spending I can no longer limit or control. If the army continues to spend money for purposes that are not strictly related to defense, like luxury expenditures (cinema, railway station, luxury villas, schools, a community centre in Stalowa Wola, for example) it will bear the consequences of this policy.

17:30

The Prime Minister gives me information that Beck will not pass to the Council of Ministers. Namely at the beginning of the Anglo-Franco-Soviet staff negotiations the Soviets demanded in advance a Polish agreement that in case of a conflict with Germany the Soviet army will enter eastern Lesser Poland and the Vilnius-Novgorod districts. England and France have put a lot of pressure on us to give that consent. We answered that Polish and Soviet staffs can cooperate closely in the event of war with Germany but we can not agree in advance for the Soviets to enter certain parts of Poland. In this respect we can not disregard the historical past. Of course, according to Beck, the Soviets would immediately want to section Poland.



15:45

The Soviet-German pact is concluded. It turns out that it was carefully prepared in perfect secret for a number of weeks. An arrangement against any agreement between the Soviets and England and France.

Political sensation: Hitler – Soviets non-aggression pact. Information from the cabinet: supposedly official German circles denied all reports about the pact just before the official German announcement of this non-aggression pact. Upon the news of the completion of the German-Soviet pact the Admiralty of Great Britain was said to have issued a war alert.

Press conference was convened for 3 pm to the Prime Minister “in relation to the newly arisen situation”.

Despite approving on the 11th day of the current month an extra-budgetary loan to the amount of 60 million zlotys for the month of August, the Ministry of Military Affairs is now demanding a return to the "previously stated amount".

As the game that Gdańsk is playing becomes clearer, our side should also exploit the opportunities (the customs clearance of the arms made in Gdańsk, to be controlled by a joint commission).

I discussed the entire program of financial applications and postulates of the Minister of Treasury with deputy minister Grodyński. Next conference will be held on Sunday at 21:00 at my place.

Industrial production rose by 9% in comparison to the second quarter of the previous year. The reason was the intensification of investment traffic. In comparison, the number of workdays on public works rose by 20%.

On Sunday, a new incident occurred in Gdańsk. During the night, our motorboat and three customs inspectors went missing. Only at noon - after many endeavours – The Gdańsk Senate informed us that inspectors Gudakowski and Słowikowski, as well as the motorboat operator Górny,  were arrested by the Gdańsk police due to the strong suspicion of them smuggling leaflets (they were guarding the access to the Schichau shipyard from the sea due to arms smuggling).

The Treasury Protection Inspector reports that Germans are buying Polish currency in significant quantities on all available exchanges. They are paying higher prices for smaller notes than for higher ones.

Information from Gdańsk – 2 customs inspectors were arrested and a motorboat was seized. I informed the prime minister and minister Beck.

Conference: vice-director Sadkowski, chief Mohl. The financial side of the Paris Treaty is ready for the ambassador's signature. It is an army-to-army loan, the total amount corresponding to the materials to be delivered. It amounts to 430 million French francs. 25 million French francs per year for three years are to be paid, after that normal amortisation over 15 years. The interest rate is 5% per year.

I agreed with general Litwinowicz on additional budget allowances for the Army for August amounting to 60 million zlotych. I immediately ordered that apportioning of this amount shall be according to the requirements of the Army (the head Rybałtowski).

The interpretation of articles of the Warsaw Agreement and the Polish-Gdańsk Agreement of 1934 by the Senate of the Free City of Gdańsk "is in equal measures arbitrary, new and contradictory to the practice observed for many years, which is inconsistent with the content and spirit of existing contracts". See more

Other currency exchanges counters (Paris!) are reporting that German agents are intensively purchasing Polish zlotys.