811.20 Defense (M) Turkey/433: Telegram
The Secretary of State to the Ambassador in Turkey (Steinhardt)
290. Your 558, March 25, 5 p.m.81 The United States shipping authorities have now informed the Department that the agreement by Great Britain to deliver five cargo vessels to Turkey makes it impossible for the American Government to give further consideration to the granting of permission to Turkey to acquire cargo vessels [Page 1101] in the United States at this time. Since United States and British shipping resources have been pooled, the grant of shipping facilities to Turkey by either the United States or Britain results is [in] a reduction in the tonnage available to the pool, and the authorities do not consider it possible to agree to an additional drain on the pool in Turkey’s behalf, at least for the present.
It is thought possible that the Turks may already appreciate the foregoing considerations and have realized that it would not be possible for them to acquire vessels both from Great Britain and the United States.
If you consider it appropriate, you are authorized to explain the situation frankly to the Turkish authorities in the foregoing sense.
For your information the Board of Economic Warfare, prior to the British promise to the Turks, gave much study to the question of an adequate quid pro quo for one or two American vessels, and relinquished with regret an opportunity to obtain economic warfare concessions in Turkey. The Department delayed a final decision in an effort to obtain information regarding the conditions under which the British vessels were made available to the Turks. It seems clear, however, that no additional drain on the combined shipping resources will be approved by the American authorities at present.
Second and third paragraphs of your telegram under reference will be answered separately by USCC.82