740.00112 European War 1939/10888: Telegram

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

965. My 960 and 961, May 26.

1.
My British colleague and I make the following joint recommendations. We advise acceptance of
(a)
Numan’s idea of an exchange of notes;
(b)
his wording of last sentence of paragraph 2 of his draft concerning monthly quotas subject to substitution for sake of clarity of “licensed but not exported” instead of “not utilized”;
(c)
his contentions that he cannot mention in his contractual obligations with Germany proposed reduction by 50% and he cannot consent to discuss with us the essentiality of commodities to be ordered by Turkey from Axis countries.
2.
Paragraph 3 is not as specific as we should like to have it and we are prepared to endeavor to persuade Numan to agree to addition of words “in corresponding proportion” at end of paragraph. It must, however, be recognized in the last analysis we are dependent on his good faith.
3.
On other hand, if we meet Numan to extent suggested above we see no reason why we should accept the wording of his proposed paragraph 4 which might in its present form be construed to constitute a recognition by us of an obligation to make good to the full the loss to Turk trade occasioned by the 50% reduction in strategic materials. We have considered three possible alternative texts:
(a)
American [and] British Governments agree to enter into immediate negotiations with Turk Government with a view to determining extent to which they can increase their commercial exports to and purchases in Turkey;
(b)
American and British Governments agree to enter into immediate negotiations with Turk Government with a view to determining extent to which it may be practicable to supply Turkey’s essential needs from Allied sources and increased Allied purchases in Turkey.
(c)
The American and British Governments recognizing that realization of foregoing arrangements could not be without effect upon Turk economy and desiring to cooperate with Turkey in mitigating the effect so far as may be practicable will enter into immediate negotiations, will cover more particularly procedure to be adopted to give effect to paragraph 3 above, extent to which Turkey’s essential needs can be supplied from Allied sources, removal of existing export bans on commercial supplies to Turkey and future purchasing arrangements in Turkey.
4.
While alternatives (a) and (b) have the advantage of removing idea of entirely filling up gap created by reduction in Turco-German trade, they might lead us further than Numan’s draft which at least places a ceiling to the increase in exports to Turkey and purchases sent to Turkey. We ourselves unanimously and strongly favor alternative (c).
5.
We think it politically and psychologically important to come to an immediate understanding with Turkey and if possible before Turco-German negotiations are concluded. We do not think it would pay us to haggle over wording provided we can eliminate any appearance of definite obligation to make entirely good to Turkey the reduction contemplated in Turco-German trade. We recommend, therefore, that we be given immediate authority to sign exchange of [Page 855] notes at once (with or without mutual reservation contained in paragraph 6 of draft transmitted in my 961) provided Numan will accept the substance whatever may be exact wording of paragraph 3 (c) above in place of his proposed paragraph 4, it being understood that we will try to secure addition to his paragraph 3 of words recommended in paragraph 2 above.
Steinhardt