867.602/98: Telegram

The Special Mission at Lausanne to the Secretary of State

[Paraphrase]

513. I have learned that this morning at the meeting of the Turkish and Allied experts there was favorable discussion of a proposal to delete the second article of the draft protocol on concessions and to replace it with the following provisions:

1.
The “juridical” validity of the French concession made in 1914 to be confirmed by Turkey and compensation to be given to be determined if necessary by arbitration.
2.
The Vickers-Armstrong Company to be compensated by Turkey for work which it had actually undertaken.
3.
The alleged Turkish Petroleum Company concession to be confirmed by Turkey.

Although the report which I received of the discussion and the phraseology of the three points mentioned above was somewhat vague and hasty, I was afraid that Rumbold and Ismet might have entered into a private arrangement by which the latter would agree to satisfy the Turkish Petroleum Company’s claims as a return for British support on the issue regarding Ottoman debt coupons. …

On this account I went to Ismet before his private meeting this afternoon with the chief Allied delegates, and led him in the course of the interview to make the categorical statement that the valid rights which American citizens or companies have in Turkey would not be prejudiced in any manner by any steps he might take at Lausanne. I have made this statement a matter of record in our Mission files. I hope to obtain soon more definite information with respect to the three points listed above.

Grew