867.512/212: Telegram

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

1352. Inasmuch as the enforcement of the extremely drastic capital levy now being applied in Turkey will probably result in the ruin of most of the business houses representing American manufacturers the Embassy suggests that American shippers be warned of the advisability of communicating again with their Turkish customers before actually effecting shipment. With very few exceptions American business is represented by minority firms against whom the capital levy is principally directed. It is believed that most of these firms will be forced out of business although it is not clear as yet whether it is the intention of the Turkish Government to close irrevocably the large minority business houses which have been subjected to confiscatory taxation or whether they will be operated under Turkish ownership and direction or placed under Turkish direction and the management of the former owner.

Steinhardt