867.00/6–1747: Telegram
The Ambassador in Turkey (Wilson) to the Secretary of State
priority
458. Survey group interrupted field studies to prepare estimates required Department’s telegram 333, June 11.1 Would like to emphasize that estimates are purely provisional and to some extent guess work. It is likely present estimates will require substantial revision which will be reflected in final report of July 15. Present estimates assume only dollars 100 million available. Breakdown into categories made with view to applying funds in such way as to strengthen Turk military resistance without adding additional financial burden. Program devoted entirely to urgent military need by express preference Turk Government. Government hopes economic program can be financed through International Bank and other sources.
Dollar estimates made on tentative assumption that certain categories may be obtained US surplus prices. Following initial approximations have been furnished by ground, air and navy groups and are lumped where possible:
[Here follow sixteen numbered paragraphs indicating the several categories of aid and their dollar amounts. The categories comprised arsenals and repair shops; training aid; ammunition; communication and electronic equipment; medical equipment; ordnance equipment; aircraft; airdromes; meteorology; ships; torpedoes, depth charges, mines and minesweeper gear; net and boom material; fuel oil; general naval supplies; ports arid highways; and engineering equipment.]
Tentative program outlined above designed within $100,000,000 limit to rehabilitate, augment, improve balance and otherwise strengthen Turkish armed forces toward general end of enhancing Turkish over-all defensive position and to increase Turkish self-sufficiency.
Assuming final recommendations will be acted upon promptly survey group contemplates and urges that major part expenditures be made early in program, probably by mid-fiscal year ’48. Most of remainder before end fiscal year. Assume provisions will be made for out-payments after end fiscal year ’48 of funds obligated before that [Page 201] date, in event necessary to complete a training program for students in US, or in event there are delays in delivery of manufactured equipment. In event this assumption not correct, please advise immediately.2
Re last sentence urtel:
- A.
- Minister of Agriculture announced recently that due to drought in March and April, cereal crops will be 20 to 30 percent below normal. Tobacco crop may be 30 percent below record 1946 crop. Raisin crop estimated at 50 percent of 1946. These losses will be offset to small extent by olive crop 30 percent above normal.
- B.
- On June 12 Council of Ministers decided that 119,000,000 additional lira must be made available for national defense during 1947. 32,000,000 will be transferred from other budget items and 87,000,000 additional will be appropriated. It was stated that additional appropriations would be covered by revenues running higher than originally estimated. However such revenues might have been used for other purposes including reductions of floating debt had not national defense requirements been deemed so urgent.
- C.
- Observations to date by group indicate Turkish roads, railroads and ports in poorer condition than anticipated and much industrial equipment in need of modernization. While it appears Turkish Government will not request that any substantial amount of current aid funds be utilized in these fields, it appears that development and maintenance of adequate transport facilities and maintenance of efficient industrial operations will create a heavy drain on Turkey’s foreign exchange resources, even if supplemented by foreign credits.3
- Not printed; the estimates were required for budgetary purposes (867.00/6–647)↩
- In telegram 362, June 20, the Department informed the Embassy in Ankara that this assumption was correct (867.00/6–1747).↩
- In accordance with paragraph 5 of Department’s telegram 264. May 15, p. 172, Ambassador Wilson, in telegram 462, June 18, recommended two interim programs. The first required “road construction equipment urgently needed by Turkish Army to prevent certain roads of great strategic importance from becoming impassable during next rainy season.” The other involved guns, tools, etc., for the Turkish fleet. (867.00/6–1847) The Secretary of State, in letters of July 29, informed the Secretaries of War and Navy that the Department approved the interim military and naval programs. The letter to Secretary Royall stated that the Department was prepared to allocate required funds on the request of the War Department: the Secretary of State informed Secretary Forrestal that the Department had allocated $304,000 to the Navy Department, as requested in his letter of July 16. (867.00/7–2947)↩