330. Telegram From the Department of State to the Embassy in Turkey1
13. In calls on Under Secretary Hoover and Assistant Secretary Allen2 Ambassador Gork has endeavored to reopen talks on economic aid as if conversations held with Zorlu had merely been suspended temporarily without any definite conclusion having been reached regarding $300,000,000 loan request. He has been informed in clearest terms that request for loan was very definitely refused and that we are not aware of any basis for reopening any talks regarding extraordinary aid until such time as measures discussed with Zorlu to correct basic causes for Turkey’s economic difficulties have been put into effect and have shown results. …
Mr. Hoover emphasized that Turkey would have to tailor its economic development program to fit its capabilities without relying on unjustifiable expectations of foreign aid. If Turks still expected to obtain large loan from US, they were entirely unrealistic. He said he thought $30,000,000 of additional aid found for Turkey last month should permit Turkey to use its foreign exchange resources to meet, for example, its pressing petroleum requirements.
Ambassador Gork was reminded that in current aid proposals before Congress, per capita provision for economic aid to Turkey would be about $3.50, for Paks about $1.00, and for India about $.30. This was indication of importance we attach to Turkish economic development.
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