Foreign Relations of the United States, 1952–1954, Eastern Europe; Soviet Union; Eastern Mediterranean, Volume VIII

728.5 MSP/10–754

No. 490
Memorandum of Conversation, Prepared in the Bureau of Near Eastern, South Asian, and African Affairs¹

secret

Washington, October 14, 1954.

Subject:

• Turkish Ambassador’s Call Following Return from Turkey

Participants:

• Feridun C. Erkin, Turkish Ambassador
• John D. Jernegan (NEA)
• Francis F. Lincoln (GTI/E)
• Ben F. Dixon (NEA)
• Edwin M. Wright (GTI)

Ambassador Erkin called at his own request to discuss a number of items that had awaited his return from Turkey after a three-month absence.

1) The Ambassador asked how the military and economic program outlined in June 1954 between Prime Minister Menderes and the U.S. was being implemented.² Mr. Jernegan pointed out that in line with the Stassen-Menderes conversations, the FY ‘55 foreign aid bill contained schedules listing $70 million as economic aid to Turkey, that the total amount of foreign aid had been reduced while before Congress, that FOA was considering the apportionment of the aid, and there had been no change in plans as to the amounts to be allocated to Turkey. FOA was considering how the provisions of the legislation were to be applied. The Ambassador urged that the full amount of aid be extended as grant rather than as loan.

The Ambassador then asked Mr. Jernegan if there had been any developments regarding the military assistance understandings of the Menderes–Stassen communiqué.³ Mr. Jernegan replied that the military assistance problems actually proved to be more difficult than the economic ones. The funds requested were substantially cut by Congress. Also the same problems with regard to South East Asia as in the case of economic assistance programs presented themselves with regard to the military ones. The Pentagon is now working very hard at reprogramming military assistance to be consistent with Congressional reductions planned. He asked Mr. Dixon if he would elaborate on this. Mr. Dixon said that the study under way in the Pentagon was not expected to be completed before the end of November. However, he believed the lateness of the appropriations followed by the detailed study required in reprogramming would not affect military assistance progress since normally new fiscal year programs do not get well under way until later in the fiscal year. It would be difficult to predict the outcome of this study. Adjustments must be made to bring all programs within Congressional appropriations and consistent with priorities and commitments throughout the world. For planning purposes there would seem to be a reasonable prospect that this year’s program for Turkey would be roughly somewhat of the magnitude as agreed to by Mr. Stassen. It does seem clear that we will not be able to meet in its entirety the $200 million assistance level discussed by Mr. Stassen and the Prime Minister for this fiscal year. The Prime Minister would undoubtedly understand this turn of events since the phrase in the communiqué to the effect that the increase in the program for fiscal 1955 would be subject to the action of Congress and a review of commitments and priorities was included having in mind the contingencies which have in fact occurred.

Mr. Dixon said that the Ambassador would recall that the communiqué dealt with two courses of action regarding military assistance: one, that we would increase the 1956 fiscal year program to Turkey; and two, that we would accelerate deliveries on existing programs. The situation with regard to the second point was much more favorable. The rate of deliveries had been considerably accelerated. A check made that morning indicated that for the last six months for which we have completed statistics, i.e. up until August, $150 million worth of military equipment has been delivered. Of this amount $100 million has been delivered within the last three months. While these figures are rough, it is a clear indication of the rate of acceleration. The Ambassador expressed keen appreciation that the deliveries had been so increased. Mr. Dixon said that it might be expected for an accelerated rate of delivery to be continued.

2) Two representatives of the Maritime Bank of Turkey were in Washington to purchase some ships for the Turkish Seaways. There was an unexpended balance of about $450,000 in an Ex-Im Bank loan given to Turkey and the cost of the ships would be about $2,000,000. The Ambassador requested the Department of State to support increasing the Ex-Im Bank balance by approximately $1,500,000 in order to make it possible to purchase the ships. Mr. Jernegan replied he would study the matter.

3) There had been great excitement in Turkey over the activities of Greece on the Cyprus issue. Mr. Menderes had courageously opposed any public demonstrations and was holding down Turkish public agitation with some difficulty. The Ambassador appreciated the U.S. position on this issue and hoped the UN might avoid discussion of the matter. Mr. Jernegan replied that we were trying to put it at the end of the agenda, we would oppose discussion, and hoped it might not reach the Assembly before the Christmas adjournment came.

4) Some two years ago there had been discussion of negotiating a new Treaty of Friendship, Commerce, and Navigation with the U.S.A. but the Turkish Government had found the U.S. standard form rather complicated, in places contradicting Turkish laws. While in Ankara this past summer, the Ambassador had urged action on the Treaty. The Turks had appointed a committee to find out what changes in the Treaty and what changes in Turkish law were necessary in order to come to an agreement. This study was now near completion. If the Department of State instructed the Embassy in Ankara to take up this matter, something might be done. Mr. Jernegan said there was a simpler recent standard Treaty. Mr. Wright noted that he had recently given a copy of this new form to the Turkish Embassy. Mr. Jernegan stated that we would ask the Embassy to renew its approach on the Treaty.

5) When the Ambassador left Ankara, the Prime Minister asked him if he noted any changes which had taken place during the three years he had been absent. Ambassador Erkin replied that there was a total change in people’s attitudes. Everyone was happy and busy. They smiled and had high morale. They felt a strong sense of confidence in Turkey and her future. United States aid had sparked a psychological momentum such as Turkey had not known for a long time. The Prime Minister had then replied to Ambassador Erkin: “When you get back to Washington, tell Mr. Dulles exactly what you told me. But add that a shadow is coming across this bright picture of Turkey’s progress—the shadow is the problem of Turkey’s credits and shortage in foreign exchange.” The Ambassador then recalled Prime Minister Menderes’ request last June that Turkey be given $300,000,000 this year. He recalled it had not been favorably received at that time, but now in the light of Turkey’s need, the Prime Minister had told him to reopen the matter of a request for a loan. Mr. Lincoln recalled the details of the discussion in the meeting last June and Mr. Jernegan asked whether the $300,000,000 would be a consolidated loan to fund all of Turkey’s present short-term debts. Mr. Erkin replied that he did not think it was for the funding of debts but for continuation of the development program. No comment was made on this request.

After a few remarks about the London Agreement,⁴ the Ambassador left.

1. Drafted by Wright, Dixon, and Lincoln. The conversation took place at 11 a.m. on Oct. 7.
2. Regarding this program, see telegram 1351, supra.
3. For text of this communiqué, see Department of State Bulletin, June 14, 1954, pp. 912–913.
4. For documentation on the London Nine-Power Conference, Sept. 28–Oct. 3, and the agreements arising therefrom, see vol. v, Part 2, pp. 1294 ff.