740.00112 European War 1939/10906: Telegram
The Ambassador in Turkey (Steinhardt) to the Secretary of State
[Received May 29—10:39 a.m.]
960. My 937, May 23.
1. At a joint conference this morning between the Minister for Foreign Affairs, the head of the new bureau referred to in my 738, April 23, the British Ambassador, the British Minister,37 Kelley,38 Powell and myself, Numan submitted a draft of an agreement, to be embodied in an exchange of notes between the Turkish, American and British Governments relative to the reduction by Turkey of the export of strategic materials to the Axis. The draft is based on our proposals of May 23. The full text embodying certain changes proposed by us and accepted by Numan is transmitted in my next numbered telegram.
2. With regard to paragraph 2 of his draft, Numan said that he would accept our proposed limitation that not more than one-twelfth of the permissible exports to the Axis could be exported in any one month provided we would agree to the carry-over to subsequent months of any unutilized portion of a monthly quota. He explained the necessity for such a provision in view of the seasonal character of Turk exports and unforeseen delays in effecting exports due to administrative and transportation problems. He hoped that we would accept this proposal as a reasonable one since our object was to ensure the distribution of the annual export quota throughout the year and this proposal would not affect the attainment of this objective. I said that I found this proposal reasonable and would recommend it to my Government.
When Numan’s attention was invited to the fact that paragraph 2 contained no provision relative to the reduction to 50 percent of Turkey’s contractual obligations to Axis countries he declared that he could not accept a provision along this line. If he informed the Germans in advance that they would not receive from Turkey more than 50 percent of the amount of the strategic commodities exported to Germany in 1943 it would be impossible for Turkey to obtain from Germany the commodities which Turkey needed within the reduced limits. He would do his best to conclude a compensation agreement with Germany which would specify only the goods which might be [Page 850] exchanged between the two countries and make no mention of quantities but he did not know whether the Germans would agree to the omission of specification of quantities.
3. With regard to paragraph 3 of Numan’s draft, we called his attention to the fact that it omitted any reference to the question of the essentiality of the goods which Turkey might wish to order in Axis countries. Numan declared that the Turkish Government could not agree to the insertion of any clause stipulating that essentiality of commodities to Turkish economy in effect was to be determined by foreign governments. Any such provision would be an infringement of Turkish sovereignty. The essentiality of any commodity to Turkish economy could be determined only by the Turkish Government. Numan pointed out that we had no reason to fear that Turkey would waste on non-essentials the limited quantity of strategic materials now available to her for bargaining with Axis countries. It was unreasonable to suppose that Turkey would utilize such strategic materials vitally needed to maintain her normal national economy.
He said that he had the impression from decisions made by the BACC that that organization considered that it was in a better position than the Turk Government to decide whether the continuance of a certain factory in operation was essential to the economic welfare of the Turk people. The Turk Government which was responsible to the Turk people for the economic welfare of Turkey could never agree that foreign governments had the right or the necessary information available to determine the course of Turkey’s economic life.
4. As regards paragraph 4 it was pointed out to Numan that he had omitted the reservation which we had made in our proposals with regard to our pressing at any time for a further reduction in Turk exports to enemy countries if we considered it necessary to do so. Numan pointed out that the reservation proposed by us merely gave us a right which we already possessed to approach him at any time with regard to subject matter of the notes. He could not accept a unilateral reservation since he enjoyed the same right to approach us at any time. If we insisted on stipulating a right which we already possessed he must also stipulate the right which he already possessed. We stressed the importance which the American and British Governments attached to the reservation and said we thought it desirable to guard against a possible contention at a later date that by signing the proposed agreement we had renounced the right to press Government to go further. Numan said that he had no objection to adding to his text a bilateral reservation as paragraph 6 if our two Governments thought it necessary to make such a reservation.
5. At close of our conversation I brought up question of publicity. I pointed out bad impression which would be produced both in Great [Page 851] Britain and the United States by conclusion of new agreement with Germany providing ostensibly for undiminished trade and said it was consequently necessary that some publicity be given to agreement reached between British and American Governments in Turkey. Numan said that, of course, notes must remain strictly secret but that he would be prepared as soon as notes were exchanged to call in representatives of American and British press and tell them that a satisfactory agreement had been reached between American, British and Turkish Governments but without disclosing details. In this connection I feel that once Numan has made general statement of this nature to American and British newspaper correspondents there is no longer any reason why secrecy should be maintained provided, of course, that any details which may become public in the United States cannot be directly traced to Department or FEA.
In view of fact Numan will now probably conclude an agreement with Germany at once it seems desirable that our agreement and such publicity as Department and FEA may desire to give thereto should for obvious reasons precede conclusion of German agreements.
6. Numan’s draft is now undergoing detailed study by the two Embassies and joint recommendations of my British colleague and myself will be submitted shortly.