Foreign Relations of the United States, 1958–1960, Eastern Europe; Finland; Greece; Turkey, Volume X, Part 2

306. Telegram From the Department of State to the Embassy in Turkey ⁰

Washington, March 7, 1958.

2807. Embtels 2239, 2257, 2293 and 2299.¹ Your discretion you should inform GOT as follows:

(1) U.S. pleased at indication GOT may now be seriously prepared take vigorous action achieve economic stabilization.

(2) U.S. considers approach by Turkey to both IMF and EPU–OEEC most effective method exploring possibility help from Western European creditors and international institutions on assumption there will be fully adequate Turkish stabilization program. Assume Cahan’s visit to Ankara² indicates agreement by OEEC and GOT that discussions between them will take place. In U.S. opinion it would also be useful for GOT to consult with IMF at early date since exchange rate problem most appropriately discussed with latter institution. (FYI we feel consultation with IMF more likely to bring into discussion GOT financial and economic officials most interested in corrective action. End FYI)

(3) Consider essential that GOT make clear the concrete steps it will take and appropriate timing.

(4) On assumption adequate GOT program satisfactory to IMF and OEEC–EPU, U.S. prepared to consider any assistance in light of availabilities and so as to coordinate any such assistance as may be available with aid to be provided by European countries. Cannot make advance commitment any specific amount aid. U.S. will not make U.S. financial aid available for refunding or refinancing outstanding Turkish indebtedness to other countries.

Bonn and London requested inform Ger. and U.K. govts, re U.S. views.

Dulles

0. Source: Department of State, Central Files, 882.00/2–2658. Confidential; Priority. Drafted by Leddy; cleared with nine offices in the Department of State and with the Departments of Defense and Treasury, the ICA, the Export-Import Bank, and the International Monetary Fund; and approved and initialed by Dillon. Repeated to Bonn, London, and Paris for the Embassy and USRO. The time of transmission is illegible.
1. In telegram 2239 from Ankara, February 23, Warren reported on a discussion with Zorlu during which Zorlu recounted his talks with European officials. (Ibid., 862A.0082/2–2358) In telegram 2257 from Ankara, February 26, Warren reported that Zorlu had assured him that the Turkish Government was prepared to take “drastic measures” to stabilize its economy. (Ibid., 882.00/2–2658) In telegram 2293 from Ankara, March 1, Warren reported on Turkish preparations for approaches to the OEEC for a stabilization loan. (Ibid., 882.00/3–158) In telegram 2299 from Ankara, March 2, Warren requested the U.S. position on the Turkish aid problem. (Ibid., 882.00/3–258)
2. The OEEC Deputy Secretary General visited Turkey on March 4.