867.50A/1–1047: Telegram

The Secretary of State to the Embassy in Turkey


15. In seeking suitable methods of implementing our desire assist Turkey economically we had at one time considered possibility sending official mission to survey Turk economy and military, naval, air requirements. Such undertaking seems inadvisable at this juncture, however, since Turks would undoubtedly interpret our interest as forerunner extensive financial assistance which, in light Eximbank’s present position, we might not be in position provide.

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As alternative, suggestion might be made to Turks that they engage services experienced US firm of consulting engineers to carry out economic survey. Govt Iran just signed contract with Morrison–Knudsen construction firm which is sending consulting group Iran consisting seven or eight experts to study irrigation, dams, agriculture, transportation, power and fuel, industry, mining and communications, submitting detailed report within six months. Total cost $100,000. Report to have as specific object presentation carefully planned case for additional Eximbank or Int Bank loan.

If idea appeals suggest you discuss informally with FonOff. Thought should be put forward as your own rather than as coming from US Govt. Stress importance expert preparation request for loan and try to direct Turk attention to Int Bank which was organized for express purpose financing development. You might point out Int Bank has not yet committed resources and so has greater lending potential for Turkey. Early regularization Turk position Int Bank desirable.