840.51 Frozen Credits/730: Telegram

The Secretary of State to the Ambassador in Turkey (MacMurray)

78. The Rumanian Government has requested this Government to release sufficient Rumanian funds in this country to enable Rumania to pay for Turkish cotton in accordance with the Turkish-Rumanian Agreement of September 26. The Department desires to follow a benevolent policy regarding Turkey in view of the political situation in the Levant and is considering recommending that $1,410,000 of Rumanian funds be released to enable Rumania to pay for 3,100 tons of Turkish cotton now understood to be ready for shipment from Turkey. The Turkish Commercial Attaché in Bucharest has stated to our Legation there that Turkey is convinced that the cotton is for Rumanian ultimate destination and that Turkey will stop shipments if this proves to be incorrect.

Before reaching a final decision, the Department would be glad to receive any observations the Turkish Government might desire to make regarding the matter. An urgent reply is requested.