662.6731/135: Telegram

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

267. Numan Bey yesterday told me that in the trade negotiations to be begun in September the Germans will be represented by Dr. Clodius.27 In the meanwhile the technical advisers are to work out together some mutually acceptable type of agreement as the Turks, in view of past experiences, are not willing to accept a clearing agreement and the Germans will not accept the Turkish device of private compensation. He anticipates the agreement will take the form of an arrangement for barter on the basis of a set of corresponding categories (for instance, olive and other vegetable oils in exchange for munitions, foodstuffs for machinery, et cetera). In any agreement reached Turkey would insist upon the proviso that her exports to Germany should not at any time exceed the equivalent of goods actually received therefrom. He pointed out that under practically a year’s operation of the current agreement contemplating exchanges to the value of 21 million Turkish pounds on either side Germany has been able to supply goods to the amount now of only about 9 million, which he attributes primarily to her reduced productive capacity rather than to transportation difficulties. This country is principally interested in obtaining from Germany munitions and spare parts for industrial machinery which are beginning to be desperately needed.

From another source believed to be reliable but not confirmed in this instance it now appears that a report circulated to the effect that this Government intends to sell chrome to Germany has this much basis: that in a recent inter-ministerial memorandum the Ministry of Commerce (which has had a number of German advisers and which is understood to be still rather tinged with German influence) chrome was included in a list of Turkish products suggested for consideration in any negotiations for a barter arrangement. But there is no indication that the Foreign Office (with which [rests] authority in the matter) has any intention of violating its assurances to the British and ourselves.

MacMurray
  1. Carl Clodius, Deputy Director of the Economic Policy Department of the German Foreign Ministry.