811.20 Defense (M) Turkey/150: Telegram

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

1189. My 1116, November 4.

Foreign Minister handed British Ambassador Friday a draft of reply he proposes to make Hugessen’s note of October 5 to Prime Minister (my 986, October 5). Draft is now under study by British and ourselves and Hugessen intends to discuss draft with Numan before latter sends reply in an endeavor to obtain best possible basis for further negotiations.

A close translation of draft reply is as follows:

Turk Government agrees to sell exclusively to Great Britain total amount of chrome produced in Turkey up to January 8, 1943. British Government will be good enough to agree that this acceptance which does not follow from basic agreement concluded in Paris in 1940 constitutes a concession which Turk Government is happy to make to British interests.
It is therefore agreed that:
Every ton of ore produced which is above ground by January 8, 1943 will be declared and sold to British Government in accordance with terms of purchase contract and subject to new price.
The lists of stocks of chrome mentioned above will be placed at the disposition of Embassy under the guarantee of Turkish Government.
After the first delivery to be effected in pursuance of previous engagements Turkish authorities will cooperate effectively in transporting ore to accessible ports in accordance with accedence which will permit the fulfillment equally of obligations to other countries.
Turkish Government takes note of the increase in price from September 25, 1942 for all chrome ore hitherto undeclared whether already in stock or newly produced between above mentioned date and January 8, 1943.
With respect to the conditions mentioned in article 5 of note of British Ambassador, Minister for Foreign Affairs is anxious to observe:
That the principle of pari passu could not be applied to detriment of [apparent omission] to other countries.
All surplus ore up to December 31, 44 not obligated in pursuance of an already existing agreement or of an agreement to be concluded in accordance with conditions specified in such contract could be reserved for British Government.
Turkish Government is decided not to conclude any new agreement as to sale of chrome after 45.
Foreign Minister agrees to accord prior right to conclusion of an agreement having as a basis nondiscrimination against British Government in respect to exportation of chrome to be effected by Turkey. He is anxious however to observe if delays are caused by British Government in concluding such contract after receipts of Turkish proposals. This provision of priority could not be maintained.

II. Numan has replied informally in writing to certain questions raised by Hugessen regarding meaning of certain provisions of Clodius agreement. Essence of Turkish reply is as follows: The 45,000 tons forms part of goods to be furnished by Turkey in return for supply of German goods signified in Schedule I–a; principle of equilibrium governing exchange of goods between Germany and Turkey under Clodius agreement requires Turkey to deliver only proportion of 45,000 tons of chrome which corresponds to proportion of 55,000,000 Turkish pounds of German goods furnished by Germany; there is no direct connection between any particular item in Schedule I and any particular item in Schedule I–a; agreement relative to supply of 135,000 tons of chrome cannot be concluded until after delivery of entire 18,000,000 Turk pounds of war material “even if this delivery is effected after March 31, 1943”; and delivery of 135,000 tons of chrome will take place “in accordance with a cadence taking count of terms of delivery stipulated in special contracts for war material. Consequently if these terms are not observed by Germany cadence of deliveries could suffer as result of it.” With regard to last statement reply states that this point of view is based only on spirit of Clodius agreement and as it does not follow explicitly from text of letter attached to that agreement it should for moment be considered only as a unilateral interpretation.

III. In connection with discussion at last meeting between Hugessen and Numan of the 100,000,000 marks arms agreement (my 1097, October 29 [31], Numan agreed if delivery of the 135,000 tons of chrome were included in that agreement to make the delivery of the chrome dependent upon the delivery of the entire 100,000,000 reichsmarks of war material by Germany.