867.5151/165: Telegram
The Ambassador in Turkey (MacMurray) to the Secretary of State
[Received 5:10 p.m.]
161. Department’s 60, December 16, 1 p.m. (Section 146). The exchange authorities are continuing to issue exchange permits in the chronological order of requests for exchange as exchange becomes available. Holders of exchange permits issued up to December 15 were able to purchase dollars at the rate of approximately 160 piasters; holders of permits issued since that date are required to pay an exchange premium of 37½ piasters per dollar to the compensation company before they may purchase dollars from a bank at the rate of approximately 160 piasters. An exchange permit now bears notation to the effect that it is valid for 15 days from date of issuance on condition that it is stamped by the compensation company. Insofar as the Embassy is aware no holder of such an exchange permit has as yet paid required premium.
The compensation company states that the Central Bank is preparing to open letters of credit with certain funds which it has available for the importation of construction materials from the United States but that an exchange transfer application will have to be made upon the arrival of the goods and the permit for the transfer of exchange to cover the Central Bank’s letter of credit will be granted in chronological order. The compensation company assures the Embassy that the dollar exchange becoming available currently from American purchases of tobacco and other Turkish commodities will not be utilized for the opening of these letters of credit and that such exchange will be applied entirely to the liquidation of arrears.
The Embassy will continue to follow developments closely.