344. Telegram From the Embassy in Turkey to the Department of State1

126. For Hoover and Allen. I am much concerned by situation now developing result USA–IMF efforts get Turkey effect suitable currency change and stabilize her economic life (see Embtel 124, July 16).2 Because my concern submit following:

In Prime Minister Menderes we are not dealing with an irresponsible carping peanut politician but with intelligent capable government leader who must answer politically for his acts.
In conversation reported Embtel 124 he showed no intention trying abandon proposal before IMF. Contrary wise he insisted his [Page 689] intention desire determination reach agreement with fund through further early Washington talks.
Emphasized he desired additional discussion with IMF based on changes caused by new national protection law, faulty preparation original proposal here, and his need understand have confidence in measure order defend it party councils, Grand National Assembly and before Turk public.
In conversation PM showed himself reasonable, free of carping, conscious we had not been as helpful as possible last year but grateful for what we did do and hopeful to God our present friendship “will continue for centuries”. At same time stressed economic military political importance Turkey and USA proposed change.

Menderes speaks for the government which we must depend upon make Turkey strong and keep her our ally. Turks have not placed any price on various concessions made USA. Am convinced they do not want to do so but do want reach agreement with IMF.

Comment: Turk failure to reach agreement with IMF will not remove but seriously aggravate USA problem. Our position will be infinitely more difficult. For this reason I regard it utmost importance every effort be made bring IMF Turks together on basis assuring minimum essential conditions for continued effective implementation both internal external phases stabilization program.

  1. Source: Department of State, Central Files, 782.5–MSP/7–1656. Secret.
  2. In telegram 124, July 16, Warren transmitted the substance of a July 15 conversation with Menderes. According to the Ambassador, the Prime Minister expressed a desire to reach agreement with the IMF, but indicated that in his view there was an “honest difference of opinion” regarding what was best for Turkey. (Ibid.)