811.20 Defense (M) Turkey/134: Telegram

The Chargè in Turkey ( Kelley ) to the Secretary of State

1116. Your 557, October 29.

I have discussed with my British colleague proposal suggested in Department’s numbered paragraph 2 and we are in accord that such a proposal may very well be made to Turks in the event that establishment of principle of equal treatment proves finally impossible. It should be noted in this connection that Numan has already taken the position that he cannot hold Germans to March 31, 1943, as last day for delivery of the 18 million Turk pounds worth of war materials in view of fact that Turks have been responsible for some at least of delay which will occur in delivery of this material.
With regard to the present status of offer to pay Turks 270 shillings per ton for all ore accepted after September 25, 1942, the mine owners have been advised informally through Etibank that British intend to pay this price. Technically and formally, the payment of this price is dependent upon fulfillment of several conditions, one of which is the receipt of pari passu treatment in 1943 and 1944. However, I understand that British propose to pay increased price irrespective of fulfillment of conditions in question and that mine owners are proceeding on basis that they will receive increased price.
The next stage in the negotiations will be the reply of Turkish Government to British Ambassador’s written proposals of October 5. Numan has promised to work out the main lines of reply in discussion with Hugessen.