840.50 Recovery/4–1449: Telegram

The Secretary of State to the Embassy in Turkey

confidential

132. In requested meeting with Thorp yesterday Sadak requested increased US financial aid citing serious financial position Turk Govt result continuing defense burden making most difficult internal financing ECA and anticipated IBRD projects. Requested US grant additional $30 million under military aid program to finance current consumption [Page 1654]items including POL which otherwise payable from defense budget thus facilitating internal financing development projects. Sadak emphasized $30 million additional to regular military aid. Emb comments necessity such additional assistance requested.

Sadak further requested US support in anticipated approach by Turk Govt to US private money market for loan probably less than $70 million with principal objective provide dollar exchange for imports by Turk private enterprise. Dept offered endeavour create favorable atmosphere in banking circles for Turk discussions this subject but not hopeful outcome.1

Acheson
  1. A more detailed memorandum of conversation concerning the meeting described in this telegram is included in file 867.51/4–1349. Also present for this meeting were Paul H. Nitze, Deputy to Assistant Secretary of State Thorp; Joseph C. Satterthwaite, Director of the Office of Near Eastern and African Affairs; Wilfred Malenbaum, Chief of the Division of Investment and Economic Development; and Charles Robert Moore, of the Division of Commercial Policy Foreign Minister Sadak was accompanied by Bulent Yazici, Financial Counselor of the Turkish Embassy, and Necdet Kent, Private Secretary to Foreign Minister Sadak.

    In New York on April 15, Foreign Minister Sadak, Financial Counselor Yazici, and Mr. Kent, accompanied by Mr. Moore, had conversations with Allen Sproul, President of the Federal Reserve Bank of New York, and with senior officers of the National City Bank of New York, the Bankers Trust Company, the Guaranty Trust Company, and the Chase National Bank. The Foreign Minister explored the possibilities for a $50 million bank loan to Turkey. The bank officials indicated that a loan would be possible only if it were guaranteed by gold or by the Export-Import Bank or the International Bank for Reconstruction and Development. Mr. Moore’s memorandum, dated April 20, reviewing these conversations, is included in file 967.51/4–2049. A brief report on the conversations was also transmitted in telegram 138, April 20, to Ankara, not printed (867.51/4–2049).