662.6731/140: Telegram

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

344. My 267, July 24. The Secretary General of the Foreign Office today informed me that his negotiations with the German Trade Delegation are proceeding normally and easily on the basis of two principles that he had got them to accept in advance: First that Turkish products will be exported only upon the receipt of German goods to the same amount; and second that exchanges will be effected on the basis of prescribed categories of goods of equivalent economic value.

2.
Upon inquiry, it appeared that under latter principle Germans have broached question of getting chrome in exchange for certain greatly needed military equipment ordered in Germany before war but never delivered. Numan said that this Government is extremely reluctant to accede to this request and would not in any case do so without full consultation with British. He went on to argue, however, that British have no legal basis for their claim to right of renewal of contract (expiring next January) which gives them exclusive right to purchase of entire Turkish output inasmuch as in that contract they were joint parties with French. I expressed hope that Turkish Government would also take into account American interest in having no chrome go to Germany and referred to his own previous assurances; but he avoided committing himself.
3.
British Embassy informs me that Clodius in fact claimed that Germany by right of conquest succeeded to French right to four-fifteenths share under chrome contract but that Numan categorically refuted this pretension.
MacMurray