867.24/379: Telegram

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

4495. Department’s 3666, August 5, 4 p.m. concerning allegation of Turkish Ambassador that British Government is charging Turkish Government for lend-lease supplies.

Responsible Foreign Office official states that when the attention of the British Government was called to this charge by the British Supply Council in June the British Ambassador at Ankara was asked to investigate it. Early in July the British Ambassador replied substantially [as follows]:

Embassy’s Commercial Counselor stated that, as he recalled, at a meeting held on May 16, attended by representatives of the British and American Embassies, the Secretary General stated that he did not know whether Turkey was to receive lend-lease aid gratis; that as the British Government was charging Turkey freight on lend-lease supplies carried in British ships the Government of Turkey was compelled to insure these supplies against loss by sinking through enemy action; that freight and insurance were heavy items; and that the cost of freight was being debited against the British armaments credit to Turkey. No suggestion was made by the Secretary General that actual cost of lend-lease supplies was being charged to Turkey.

Foreign Office official adds that the British do not ask for payment of freight under the armaments credit when lend-lease supplies are shipped in lend-lease ships but only when British ships are utilized or when the British themselves must make disbursements in dollars.

This official states further that, as the Foreign Office appreciates the embarrassment which such allegations must be causing the Department, the British Ambassador at Ankara has been instructed by telegraph to take matter up with the Turkish authorities and to request [Page 706] them to inform the Turkish Ambassador at Washington of the facts. The British Ambassador has been further instructed to inquire of the Turkish Government whether, besides the debiting of freight charges against the armaments credit, the Turkish Government has knowledge of any specific cases involving a charge against this credit for lend-lease supplies that have been re-transferred to Turkey. If there are any such cases, this official says, steps would immediately be taken to cancel the transaction and prevent a repetition.

This telegram has been repeated to Ankara.

Winant