811.20 Defense (M) Turkey/375: Telegram
The Ambassador in Turkey ( Steinhardt ) to the Secretary of State
[Received March 3—1:47 p.m.]
387. Department’s 146, February 17, paragraphs 3 and 5; Department’s 152, February 19, and my 354, February 26.58
1. The preliminary draft of the comprehensive transportation [Page 1157] agreement which has been initialed by Minister of Communications59 provides for allocation to Anglo-American transportation requirements of: (a) Two Turk vessels totalling 10,000 tons per month to pick up cereals in Egypt to be carried to Izmir and Istanbul, taking non-contraband as return cargoes to Haifa or Egypt. (b) 11,000 tons of Turk coastal shipping per month to carry chrome from inaccessible to accessible ports, (c) 5,000 tons of railroad cars per month for chrome from Guleman to Mersin. (d) 3,000 tons of railroad cars per month for general cargoes from Izmir and Istanbul for Basra via Baghdad. These cars will pick up cereals in Iraq on return trip. The number of cars on this run will be increased in proportion to the increase of return shipments available, (e) United States and Great Britain to provide tonnage to transship chrome from Turk steamers at accessible ports and are to keep the Guleman chrome dump at Mersin at a minimum.
The preliminary draft having been initialed by Minister of Communications, British Ambassador and I contemplate, if Department perceives no objection, seeking its confirmation by Minister of Foreign Affairs.60 Hugessen and I are convinced that these allocations constitute the maximum tonnage to which Turks will commit themselves under existing conditions. There is grave doubt that even with the best of intentions Ministry of Communications will be able to provide regularly tonnage agreed upon. The 11,000 tons of coastal shipping promised monthly for movement of chrome should be compared with monthly average for 1942 of 5,911 tons. As against the 5,000 tons promised monthly from Guleman to Mersin railings in 1942 averaged 4,503 tons monthly. The uncertainties arise primarily out of fact that Turk transportation system both as to rail and sea is in a deplorable condition by reason of an acute shortage of rolling stock, unseaworthiness of many Turk vessels, lack of facilities for repairs, under maintenance, a low level of operating efficiency, shortage of replacement parts, fuel, materials, management and labor.
2. Even were we agreeable to “ceding to the Germans equal privileges of inspection at Guleman” Department will appreciate that Turk Government has decided views of its own with regard to permitting Germans to visit certain areas, particularly when such areas have been closed to all foreigners. Furthermore, as the declarations of stocks have been guaranteed by Turk Government and as Guleman Mine is owned by the Government our insistence on an inspection would openly evidence a mistrust of the Government’s good faith (see Embassy’s 258, February 9 paragraph 2).61 In addition we have been [Page 1158] requested by Foreign Office and Eti Bank not to press for an inspection at Guleman. We deem it advisable to respect this request.
However, a plan is now being worked out by the British and ourselves whereby a certain member of the British Military Attaché’s Office may be able to visit Guleman unofficially late in March.
3. Sometime ago we discussed with the British Embassy the tactical advantages of increasing our price to 300 shillings per ton, but this was an exploratory discussion between the British and ourselves which of course was never communicated to the Turks and was prompted primarily by a desire to avoid a repetition of London’s failure for months to agree to the price increase to 270 shillings per ton which at the time seriously threatened our entire program. We are entirely in accord with the Department’s view that 270 shillings should be the price fixed in the new contract and look to the Department to obtain London’s prompt acquiescence in any price increase that may subsequently become imperative to meet German competition.