811.20 Defense (M) Turkey/614: Telegram

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

1026. Department’s 486, June 1.62 Although as reported in my 719, April 16, [17]62 the chrome purchase contract between Turkey and Great Britain for 1943 and ‘44 was signed on April 16 ad referendum, British Embassy was not in a position to communicate to Turkish Ministry for Foreign Affairs the approval of British Government until May 25. When communicating its approval it forwarded [Page 1159] a note along lines of that set forth in London’s telegram to Ankara, 747, May 14. Complete text of the chrome purchase contract, together with that of the note of British Embassy referred to above, is being transmitted by air mail to Department.63 Text of the important provisions was contained in my telegram 719, April 16 [17].

The new contract is, in my opinion, the most favorable which could be negotiated in the circumstances. Embassy was not surprised at Foreign Minister’s refusal to agree to the provision contained in the draft submitted by us to the effect that the seller undertook that the declaration should comprise the total production of chrome with the exception of quantities which Eti Bank was obligated to deliver to a third country in exchange for goods actually delivered by the third country and that no ore would be withheld from the purchases to meet hypothetical deliveries of any third country. While we cooperated with British Embassy in its efforts, under instructions from London, to persuade the Minister, after the signature of the agreement, to include this provision, we were not optimistic enough to believe that the Minister could be induced to insert the provision in question, in view of the fact, that as the Embassy has heretofore pointed out, Turkish Government is not in a position to agree to include any provision, in a written agreement which would conflict with its written obligations to Germany. In the conversation between British Ambassador and Minister for Foreign Affairs with regard to this matter, the latter urged the Ambassador not to press him to do something which he could not do but to leave it to him to see to it that the minimum amount of chrome possible is delivered to Germany.

In connection with foregoing, I desire to point out that although Germans have been entitled since March to over 20,000 tons of chrome by reason of their deliveries under Schedule I of Clodius Agreement64 only 11,278 tons have been shipped from Turkey to Germany as of June 1 whereas during same period (January 8 to June 1) we shipped 27,412 tons from Iskenderun and Mersin. Furthermore the total tonnage moved by the Turks to accessible ports for Germany in the period from January 8 to June 1 has amounted to only 12,207 tons (in-eluding the aforesaid 11,278) whereas Turks have moved for us 39,492 tons (including the aforesaid 27,412) by rail and sea to ports accessible to us. This movement by Turks to our advantage has been taking place notwithstanding the fact that the Turkish note of December 11, [Page 1160] 1942, to British Embassy65 stipulated: “Reservation being made for the delivery of a maximum quantity of 45,000 tons to be effected in pursuance of previous obligations to other countries, the Turkish authorities will cooperate effectively in transporting ore to accessible ports in accordance with a cadence which will permit equally the execution of other agreements in force.”

In noting above data Department will recall Embassy’s previously expressed view that Turkish Government would in practice take measures calculated to reduce chrome deliveries to Germany to a minimum to which it would not commit itself to writing.

Steinhardt
  1. Not printed.
  2. Not printed.
  3. Despatch No. 383, June 3, not printed.
  4. The Turkish-German commercial agreement, signed at Ankara, October 9, 1941. Dr. Carl Clodius was head of the German trade delegation that negotiated’ the agreement; for summary of agreement, see telegram No. 388, October 17, 1941, from the Ambassador in Turkey, Foreign Relations, 1941, Vol. iii, p. 964.
  5. See telegram No. 1278, December 13, 1942, from the Ambassador in Turkey, Foreign Relations, 1942, Vol. iv, p. 782.