867.5151/176: Telegram

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

19. With reference to the Turkish exchange situation the Istanbul Exchange Office yesterday resumed the issuance of exchange transfer permits which has been interrupted for several weeks.

Unpaid arrears representing applications filed during the period June 20, 1939, to February 24, 1940, amount to $4,830,000.

Our best estimate is that the Turkish Government has available some $2,500,000 in exchange but the dilatoriness and secretiveness with which the interested authorities have handled this matter in recent months leads to some doubt as to the prospects of their dealing promptly and effectively with the question of arrears.