Office of the Historian

782.5 MSP/12–2151: Telegram

The Ambassador in Turkey (Wadsworth) to the Department of State

confidential
priority
Ankara, December 21, 1951—6 p. m.

560. Re Deptel 527, Dec. 17.1 Necessity completing exchange MSA notes by Jan 8 stressed at FonOff Dec 21. FonOff feels strongly, [Page 1189] despite explanation as per para two reftel,2 that GNA wld raise serious objection to draft note para five concerning emigration and inquires whether any possibility deletion this para exists (Emb query: if not is there any possibility giving Turks formal statement along lines numbered para two reftel?).

FonOff also takes exception draft note para four3 it points out Turk currency not exportable under basic foreign exchange regulations and that utilizations 5 percent counterpart to purchase export commodities and international services wld be tantamount to maintaining counterpart fund in foreign exchange terms. Their attitude regarding assurance non-retroaetivity as concerns 5 percent funds deposited prior July 1, 1951 is that prior July 1, 1950 substantial assistance to Turks has been in loan form and therefore more advantageous to certain other countries than to Turkey which only since July 1, 1950 has been on full grant dollar basis.

Wadsworth
  1. Not printed.↩

  2. In paragraph two of telegram 527 to Ankara, December 17, not printed, the Department explained to Wadsworth the intent of paragraph five in the draft note:

    “2. Ref in Para 5 note (Ankara refer urtel 521, Dec 11) to use 95 percent counterpart for emigration not intended to compel other govt use of counterpart for that purpose but merely indicate expressly that it is one of purposes for which 95 percent counterpart may be released by agrmt in usual manner within terms of Bilateral. Pls note emigration purpose is broad enough to include use 95 percent funds to cover resettlement expenditures of emigrants.” (781.5–MSP/12–1751)

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  3. The text of paragraph four of the draft note in the airgram of November 21 is as follows:

    “4. Sums allocated to the use of the Government of the United States of America pursuant to paragraph 4 of Article IV of the Economic Cooperation Agreement may be used by the Government of the United States of America for its expenditures in any area.” (781.5 MSP/11–2151)

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