811.20 Defense (M)/159a: Telegram
The Acting Secretary of State to the Ambassador in Turkey (MacMurray)
41. This Government has been given to understand that the British Government would be entirely willing for us to purchase from the Turkish Government as much chrome ore as can be arranged, the British Government relinquishing to us all or a part of the Turkish ore production now earmarked for Great Britain, it being understood that this Government would also take over that part of Turkish production formerly allocated to France.
This Government is definitely interested in securing a very substantial tonnage of Turkish chrome for reserve stocks in this country and is now prepared to make these purchases on contract if the Turkish Government can sell c. i. f. American ports, making satisfactory shipping arrangements itself or through its agents, and if it will offer an attractive price. It is believed that such bulk purchases, to be held in reserve stocks here entirely off the market, will justify a price offering by the Turkish Government quite considerably below the price paid by this Government on its recent small reserve stock purchase; the Procurement Division of the Treasury here paid what it considered to be an unreasonable price on the latter purchase merely because of the emergency shipping situation then existing.
This entire matter has been discussed with the British Government and they are prepared to assist in every way possible. It is considered wise, however, to avoid any indication whatever that they are taking this position since such indication might complicate the [Page 950] problem of successfully transporting Turkish chrome to this country. They are making an effort, however, to have the Turkish Government approach this Government with a proposal for sale of chrome and they are instructing the British Embassy at Istanbul to keep in touch with you regarding the matter.
All of the above is given you for background information only at the present time and the Department desires that you take no initiative on the matter until further instructions are received from the Department. You are of course free to discuss the matter with the British. Also you may indicate interest on the part of this Government, within the limitations indicated in the second paragraph of this telegram, if the Turkish Government approaches you regarding the subject.
Please report any new information or developments promptly to the Department.