662.6731/170: Telegram

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

694. Minister for Foreign Affairs told me last night that as it appeared improbable an agreement could be reached with Clodius on subject of prices and as Turk Government was unwilling to commit itself in any new agreement to set aside specified quantities of essential commodities for Germany he had come to conclusion that it might be preferable to endeavor to bring negotiations to an end by entering into a general agreement which would provide in substance for an extension of time under old Clodius Agreement and for exchange of additional merchandise to value of 50 or 60 million Turk pounds. Numan said that if he could avoid committing himself to set aside specified quantities of essential commodities under the new agreement as Germans had already demonstrated their inability to take what had been set aside under old agreement would be more or less meaningless as he would be at all times in a position to control delivery of Turk products to Germany. He said he intended to agree to no more than issuance of export licenses. He then remarked that in his last talk with Clodius the latter evidenced great dissatisfaction with his unwillingness to set aside additional specified quantities of essential commodities for Germany.

In response to my inquiry Numan informed me in strictest confidence that of the 18 million Turk pounds of war material to be delivered by Germany under schedule I of Clodius Agreement Germans had delivered as of March 3125 a fraction less than 5 million Turk pounds and that of the total deliveries of 96 million Turk pounds provided for in agreement 44 million Turk pounds had been delivered by Germany up to same date.

  1. The scheduled date for the expiration of the German-Turkish commercial agreement of October 9, 1941.