ECA Telegram File: FRC Acc. No. 53A278: Ankara Ecato: Telegram

The Acting Administrator for Economic Cooperation (Bissell) to the ECA Mission in Turkey 1


Ecato 241.1. This is joint State–ECADef cable re level US fin support for Turkey during US FY 51 and FY 52 apart from mil end-item programs.

2. Conclusions outlined below reflect agreement of interested agencies after extensive study and discussion against background your messages, reports and recommendations. Have endeavored go as far as possible along lines your recommendations but our approach strictly limited within confines national policy which permits support for mil effort and for investment programs related to def. Cannot justify dollar aid for purpose of financing PC budgetary gaps.

3. Conclusions of interested agencies are that US fin support shld be made available to permit Turkey to:

Increase Turk armed forces by 40,000 men and provide improved support for those forces along lines of JAMMAT “final report” Sec N.2
Continue NCO program along lines of JAMMAT “final report” Sec H.
Continue minimal investment program by completing projects already under way.

4. In order carry out programs in Para 3 above it has been agreed that ECA will make available $140 million for US FY 51 and 52 including EPU initial position for both years and including amts already allotted current US FY. Obviously US FY 52 portion depends on favorable BOB and Cong action.

5. Ceiling of $140 million in Para 4 above is absolute, but implied ceiling of $70 million each year is not inflexible. To date ECA has allotted for US FY 51 $42.6 million as fol: (a) $13.6 million grant aid, (b) $25 million EPU initial position and (c) $4 million for NCOs. Therefore remainder available for allotment current FY is $27.4 million on grant basis. Under agreement priority must be given programs in Para 3 (a) and (b) above in allotting this amt which must be paid by June 30, 1951. In this connection EPU initial position can be used for mil support. Also if deemed essential allotment of portion of recommended US FY 52 funds to extent of perhaps $5 million will be considered if such portion can be paid by June 30, 1951 and on understanding US FY 52 funds will be reduced by like amt.

6. Additional aid outlined Para 4 above being made available on understanding that Turks will:

Continue mil expenditures in line with current budget and that such budget will not be reduced in next Turk FY. (b) Carry out program in Para 3 above.
Continue efforts to reduce non-mil expenditures (including administrative expenditures and public investment).
Continue and extend efforts to increase revenues thru taxation.

7. Aid figure for US FY 52 cannot be discussed with Turks at this stage but US support for programs in Para 3 above can be disclosed.

8. Imports outlined Para 3 Toeca 299 rptd Torep 374, Apr 7 under study.3

9. Suggest coordinated Amb, ECA, JAMMAT approach to Turks in outlining above plans. Important that Turks be impressed with fact that US endeavoring every possible way to aid Turks and that above reflects maximum effort consistent with our global commitments and national policy.

10. Re additional allotments. Await Mission recommendations for (a) informing Turk Amb here and (b) processing and public announcement.

11. Pass copies Amb and JAMMAT.

  1. Authorized by Hopkinson, EPD/ECA; drafted by Blaisdell, EPD/ECA; and cleared with Carter N. de Paul, Jr., EPD/ECA; Norman S. Paul, ECA; John O. Bell, Department of State; Paul R. Porter, ECA; Richard M. Bissell, Jr., ECA; and Col. Sidney A. Ofsthun, USAF, Department of Defense. It was repeated to Paris.
  2. Not printed; JAMMAT’s “final report” was enclosed with despatch 454 from Ankara, February 16 (782.5 MAP/2–1651).
  3. Not printed.