840.50 Recovery/4–2949: Telegram
The Secretary of State to the Embassy in Turkey
156. Next fol tel contains text note handed Erkin by Thorp Apr 261 in reply Sadak request additional mil aid reported Deptel 132 Apr 14. Erkin expressed fear OEEC countries would be unsympathetic to additional Turk request for ECA aid since acceptance such request would reduce their own shares. He appealed for reconsideration our position and asked that Turkey be placed same basis as Greece “for political reasons”.
Dept and ECA officials present said always glad consider Turk views but cld not hold out hope our position this question might be changed. We believed OEEC would not be unsympathetic revised Turk request provided it carefully worked out and justified. Emphasized importance of Turks establishing adequate staff Ankara to assemble and present thoroughly documented case. Urged close consultation with Dorr. Said we believed Turkey had good grounds for requesting increased aid but ECA had hitherto been unable accord it because Turks had failed present sufficient facts in proper form.
Turk Financial Counselor2 pointed out some of consumable mil items for which Sadak requested additional aid would not affect balance of payments since they would be produced in Turkey. Argued this would mean OEEC wld reduce aid by corresponding amounts and Turkey would thus fail obtain relief for budget, which was part of purpose Sadak’s request. We replied revised request ECA aid shld not contain items to be produced in Turkey but shld reflect overall import needs Turkish economy in turn reflecting impact on Turkey’s economy of necessarily large domestic mil expenditures. In answer to specific question we said request for ECA assistance need not be restricted to import items going into development projects but might contain industrial raw materials etc or even consumer goods definitely [Page 1660] not of luxury classification if assistance on these items justifiably required.
Foregoing for your background use. Pls show to Dorr.