811.20 Defense(M)/3596: Telegram

The Ambassador in the United Kingdom (Winant) to the Secretary of State

5070. 1. Ministry Economic Warfare are now preparing instructions for Ambassador at Ankara with respect to conclusion of chrome purchase contract covering year 1942. Chief object which Ministry has in mind is to evacuate every ton of chrome they can from Turkey just as soon as possible, particularly not to leave any stocks in Turkish ownership at beginning of 1943, to avoid such unsold stocks possibly being delivered to Germans.

2. As regards price, British Ambassador at Ankara has suggested 140 shillings per ton as possible ceiling for 48 percent ore. He also reported that Germans had offered 150 shillings. Ministry therefore point out that while an effort should be made to obtain as low a price as possible it is likely to be very difficult to drive any hard bargain with the Turks who are under no illusions as to importance being attached to their chrome supplies. Ministry Economic Warfare in particular feel strongly that a price should be paid for ore at Mersin, Payas and Iskanderun which would be sufficient to induce mine owners or Turkish Government to take all steps in their power to get the ore to these ports particularly Mersin. They point out that it is in fact much more advantageous to pay 170 shillings for ore at Mersin than 130 shillings for ore which may never leave the mining area or only reach the ports after long delays.

3. Ministry Economic Warfare has telegraphed British Ambassador at Ankara in general terms setting forth these considerations and suggesting to him that he explore the following three inducements for the Turks to bring the ore to one of the three selected ports:

(a)
Either a basic price at one of three selected ports with penalty for deliveries elsewhere or alternatively a basic interior price with a premium for delivery at one of three selected ports.
(b)
Only part payment for ore when delivered at ports other than the three selected, the balance to be payable when delivery is made at Mersin, etc.
(c)
Combination of the two foregoing points.

4. Ministry Economic Warfare state they have centralized all their activities in this matter with their Embassy at Ankara and express the hope that pertinent American Government authorities will coordinate their activities so that American Ambassador there will be in a position to work closely with his British colleague.

5. Ministry Economic Warfare also state they would appreciate any suggestions or comments Department or defense agencies concerned might care to advance at earliest moment.

Winant