867.24/424: Telegram

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

954. Department’s 461, September 23.

1. In course of my conversation with Prime Minister yesterday he informed me that a condition of chartering of the three Swedish vessels to lift wheat from an American port was these vessels bring 25,000 tons of chrome from Turkey to Sweden and Turkish Government provide motor fuel to operate vessels. He admitted the 25,000 tons of chrome could only be destined ultimately for Germany as present Swedish requirements are but a fraction of this amount. He also readily agreed that the foregoing terms were unquestionably being imposed upon the Swedish owners by Germany as a condition of safe conduct for the vessels.

I have personal knowledge of the status of these three Swedish vessels and of the terms which the Germans have repeatedly sought to impose on their owner as a condition of safe conduct. The information was given me about a year ago by Axel Johnson the owner. On my arrival in the Department I will be glad to furnish the details. In my opinion it is most unlikely that Turkish Government will succeed in chartering these vessels for the purpose desired.

2. I do not know of any valid reason that the Turkish Government has to believe that it will be able to obtain 100,000 tons of wheat through Lend-Lease on a non-cash reimbursable basis other perhaps than the assurance that a reasonable amount of wheat would be made available for vessels owned or chartered by it coupled with the generous treatment thus far accorded it in respect of Lend-Lease shipments in general on a non-cash reimbursable basis and 1000 [21000] tons of wheat already promised on this basis in particular.

3. When the Department and the Lend-Lease Administration have fixed the total amount of wheat to be made available to the Turkish Government on a non-cash reimbursable basis there should be no great difficulty in persuading the Turkish Government to accept the Department’s suggestion that any additional quantities be paid for in Turkish pounds such funds to be deposited in Turkey to the credit of the American [Page 739] Government and to be made available to it for use in connection with the purchase and exportation of Turkish commodities.

Steinhardt