811.20 Defense (M) Turkey/838a: Telegram

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

835. Department and OEW suggest that you and your British colleague, in deciding whether the Axis can be harmed by preemptive action regarding New Plan products should take full account of every change which might dictate an alteration in our joint preemptive program. The British and American Governments have no desire to spend on preemption in Turkey a single unnecessary dollar or pound. It may be possible for you to direct greater attention to goods actually en route to the Axis and at the same time to adjust our policy on forward contracts so that immediate advantage can be taken of alterations in Turkey’s attitude. If and when you and your British colleague consider that there is a reasonable chance that within a few months for one reason or another the rail route to the Axis will be closed, you may decide, because Turkish internal transportation and business methods are such that a considerable period elapses between the time of German buying and the time when the purchase actually leaves Turkish territory, to cease buying altogether.

The New Plan gives you and your British colleague full discretion in this matter, but you may find it helpful to know that it is the desire of both governments to cease preclusive operations at the earliest possible moment compatible with accomplishing their economic warfare objectives.

You and your British colleague have agreed that the cessation of unauthorized purchases would have little or no effect on Turkish economy. Sooner or later, however, all preemptive buying will cease and your agreed views by airgram or despatch will be appreciated regarding the economic problems which Turkey will face when it no longer has either an Axis or a preclusive market. It may be that some measures such as finding shipping space and markets for certain

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Turkish products in the Middle East, liberated areas, etc., will have to be taken by the United Nations to support Turkish economy.

The Department understands that London is telegraphing the British Embassy along similar lines.

Sent to Ankara, repeated to London.

Hull