840.51 Frozen Credits/1012: Telegram

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

97. Department’s no. 78, October 21, 7 p.m., your no. 177, October 25, 5 p.m., and Department’s no. 82, October 31, 7 p.m.32 Transfer of the $1,410,000 of Rumanian funds to pay for Turkish cotton has been delayed due to the Rumanian Government’s failure to utilize the permit within the 15 days for which it was valid. The Department’s recommendations have now been asked by the Treasury Department on a new application by Rumania for release of the funds. In view of recent developments in Rumania, the Department has decided to recommend that the funds be not released, and has informed the Turkish Ambassador here of this decision today.

The Department understands that the Rumanian Government is very anxious to obtain the cotton and that our refusal to release the funds may force Rumania to supply oil to Turkey promptly, in accordance with the original barter plan. For this reason, we believe the Turkish Government will be in accord with our decision to withhold the funds.

This information is being sent to you for such use as may be appropriate.

  1. Telegram No. 82, October 31, 7 p.m., not printed.