611. 6731/215: Telegram

The Chargé in Turkey (Washington) to the Secretary of State

56. Department’s telegram No. 66, August 13, 6 p.m. On September 11, I sent a note to the Foreign Office explaining briefly the basis for negotiations and our procedure and requesting confirmation of the Turkish position and a list of articles on which concessions are desired. On the same day, Commercial Attaché Gillespie gave a more detailed verbal explanation to the Minister of Economy.

I have now received from the Foreign Office a note transmitting a list identical with the one forwarded in my 39, August 9, 5 p.m., and stating that a reply to the other points raised in my note will be made after the competent Department has been consulted.

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In his conversation with Minister of Economy on September 11, Commercial Attaché ascertained that the list had already been transmitted to Foreign Office. During the conversation, however, the Minister realized the need for revising it and expressed the hope that Gillespie would cooperate with him in this task.

With respect to the basis for negotiations, Minister stated that he could give assurances that unconditional most-favored-nation treatment would be granted in respect to customs matters but that he would have to consult his colleagues before being able to give the same assurances with respect to all forms of trade control. Commercial Attaché explained that acceptance of this principle was a fundamental essential.

Commercial Attaché has since ascertained that the Government is considering some form of currency devaluation through the payment of a premium on purchases made with free foreign exchange. This may explain the Minister’s reluctance to give assurances and the delay of the Government in confirming its position regarding basis of negotiations.

A memorandum of Commercial Attaché’s conversation of September 11 is being forwarded along with copies of the exchange of notes in the pouch which leaves tomorrow.10

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