867.24/423a: Telegram
The Secretary of State to the Ambassador in Turkey (Steinhardt)
461. 1. The Turkish Ambassador has informed the Department of the effort which is being made by his Government to charter three Swedish vessels now in the Baltic for the purpose of lifting wheat from an American port to a Turkish port. It is understood that the lifting of about 100,000 tons of wheat by these vessels is contemplated.
2. When the Ambassador has received information to the effect that the chartering has been accomplished, he intends to file with Lend Lease a requisition for the wheat. In connection with discussion of the procedure to be followed, there arises the question of the terms under which the wheat is to be obtained by the Turks. While this Government was glad to gratify the Turkish Government by furnishing on a non-cash reimbursable basis the 15,000 tons of wheat which was the subject of considerable discussion recently, as well as the 6,000 tons which is expected to be lifted by a Turkish vessel, the furnishing on that basis of the quantity now sought by the Turks raises real problems. The Department would appreciate being informed whether, to your knowledge, the Turkish Government has valid reason to believe that it will be able to obtain this considerable quantity of wheat through Lend Lease on a basis other than cash reimbursable.
3. We have suggested to the Ambassador informally that arrangements might be worked out, should his Government prefer, for the wheat to be paid for in Turkish currency rather than in dollars, such funds to be deposited in Turkey to the credit of this Government, and to be made available to it for use in connection with the purchase and exportation of Turkish commodities.