867.5151/172: Telegram

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

7. Department of Commerce reports that Turkish importers are advising American exporters that as a result of a recent financial agreement between the United States and Turkey, foreign exchange in Turkey is now available for immediate payment of new imports from the United States.

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You should take steps to correct any erroneous impression which may exist that the Turkish compensation premium system is a result of a bilateral agreement to which the United States is a party. Although our telegram no. 63 of December 22, 6 p.m.,29 stated that the Department would not be disposed to object to an arrangement involving the temporary levy of premiums on new imports, we reserved the right to reconsider the matter in the light of actual practice and in accordance with the provisions of the trade agreement. We consider the recent Turkish regulations as entirely unilateral acts on the part of the Turkish Government.

You should continue to insist upon the chronological liquidation of arrears.