309. Letter From President Bayar to President Eisenhower 0
Mr. President: You are doubtless aware that Turkey is one of the countries which has most suffered from the aggressive policy pursued by the Union of Soviet Socialist Republics after the second world war and which is closely exposed to the dangers created by that policy.
Thus, Turkey, although the war came to an end, has had to endure heavy military burdens. The very low standard of living of the Turkish people and a yearly population increase of 3 per cent in addition to its retarded economy make it more difficult for Turkey to bear these military burdens.
It is also well known to Your Excellency that Turkey is able to bear this heavy burden only through the patriotism and unlimited willingness of sacrifice of the Turkish Nation.
But, these burdens which have caused the lowering of the standard of living of the Turkish Nation were certainly conducive to a future hard to bear.
The Turkish Governments, especially those since 1950,1 aware of this situation, have deployed great efforts to achieve a rapid development of the Turkish economy by making use of the foreign payment means procured from the United States of America and other friendly countries and to give Turkey a healthy economic structure capable of meeting the economic problems caused by the increase in population and of facing the burdens necessitated by its defense requirements.
As a result of these efforts Turkey, while increasing its industrial capacity, several times, has also made great progress in the field of agriculture. In addition, it has succeeded in expanding, within the limits of possibilities, commensurate to its production, its almost non-existent infrastructure.
But, all these efforts deployed by Turkey have not brought the expected full results from the economic development, because of droughts in four consecutive years and of continuous falls in the prices of primary commodities, especially of those exported by Turkey.
On the other hand, the fact that Turkey, while making its investments, was unable to obtain long term credits as other countries were in [Page 748] the proper time, as well as the falls in the prices of raw materials that are exported by Turkey, have worsened the situation.
Failing to obtain a positive result from its approach to the Government of the U.S.A. to secure long term credits, Turkey, in order to effect the foreign payments necessitated by the investments already started, had to allot its scarce foreign exchange to the repayment of installments. And consequently the supplies of oil, spare parts and raw materials disappeared completely. Thereupon, Turkey found itself in a state of living from day to day. No supply of goods exists presently in Turkey.
On the other hand, a great part of the investments which, when totally completed, would meet a substantial part of our needs are finished to the extent of 90–95 per cent. The completion of the remaining part of these investment projects is delayed on account of lack of foreign exchange.
Therefore an aid granted to Turkey today would not only help Turkey to relieve itself from its economic difficulties but would also assure to Turkey of the future a healthy economic structure.
It is very obvious that foreign aid requirements of Turkey present today a special nature and expediency. It is for this reason that I felt the necessity of personally approaching Your Excellency.
Turkey, beside the Government of U.S.A. with which it has constantly been in cooperation in the political as well as economic field, has also expounded this situation at length to the Federal Republic of Germany.
The Federal Republic of Germany considered favorably our approach but expressed the opinion that it would be more pleased to grant this assistance within the framework of the O.E.E.C.
Upon our inquiry the U.S.A. Government informed us that it was in agreement with the views and recommendations of the Government of the Federal Republic of Germany in this respect.2
Turkey in accordance with these recommendations has approached the O.E.E.C. as well as the I.M.F.
Studies have been undertaken in this respect within the O.E.E.C. for the last one and a half months.
The I.M.F. has also informed us that it could enter into negotiations with our Government in June 1958.
Despite the long period since elapsed, no serious discussions on the substance of the matter could be started. In now appears as a necessity to assemble into a long term repayment programme our foreign debts and [Page 749] installments which have heavy effects on our balance of payments and relief from which is indispensable for the Turkish economic development.
There is no doubt that the OEEC and the IMF have achieved many positive results and enjoy our full confidence and respect. However, as is known to Your Excellency, these institutions do not only have limited possibilities of assistance but also, as a result of their structural composition, examine questions from a technical angle rather than attributing enough importance to their political considerations and exigencies. But I have no doubt that Your Excellency would also agree with me that the economic problems of countries cannot be considered apart from their political impacts.
The relatively small amount of aid which might be secured from these institutions can be raised to a level responding to the fundamental needs of the country only through the support of the Government of the United States of America and that of the Federal Republic of Germany which has already promised assistance to us in this respect.
Among other member countries of the OEEC, only Austria and Italy have so far appeared to be willing to help to a certain extent. As regards the assistance from the other member countries, it is very likely that this would be in the way of consolidating our commercial debts to them.
The explanation which I have just given shows clearly that the above-mentioned two institutions depend entirely on the suggestions and the initiatives of the Governments of the United States of America and the Federal Republic of Germany to adopt any decision.
While recently returning the visit of His Excellency Theodore Heuss, President of the Federal Republic of Germany,3 I have come to know that consultations have been undertaken with our friend and ally, the United States Government, concerning Turkey’s request for aid. I was indeed very happy with the thought that the suggestions of the two great and friendly countries would have very positive and decisive influence on the decisions of the International Institutions while Turkey’s case is examined before them. In fact in my opinion, such an initiative would help to channel the work of these institutions in this respect into the right direction and facilitate and expedite the results. Without this initiative, I am afraid it would be highly difficult to obtain the desired results.
In view of these circumstances, I feel it as my duty to kindly request Your Excellency that the United States Government extend the maximum assistance in favour of Turkey in the course of the discussions of [Page 750] this question within the OEEC and try to secure the result in the shortest possible time by rendering simpler in form the procedures regarding the examination of the matter.
On the other hand while Turkey’s request is examined before the OEEC and the IMF in the normal way, I deem it very appropriate that the negotiations should be undertaken between Turkey and the Governments of the countries friend and ally to Turkey and particularly those of the United States of America and the Federal Republic of Germany who are familiar with the economic and political questions of Turkey and in a position to furnish substantial aid to it in order to help to obtain the desired results in the shortest possible time.
The Turkish Government is firmly determined to realize its economic development in a sound and stable manner. It will never hesitate to take every necessary measure for this purpose. I would, however, like to point out that, as Your Excellency would agree, the efficiency and the success of the measures adopted in the economic and fiscal fields depend largely upon the obtention of additional means of foreign exchange. It therefore becomes a necessity to determine the scope of external credit facilities together with internal measures to be adopted simultaneously.
My Government is ready, as it has always been, to discuss jointly and rapidly this matter with the United States Government and is ardently awaiting this.
I would be extremely happy if my Government is given this opportunity.
Please accept, Mr. President, the expression of my highest regards and esteem.
- Source: Eisenhower Library, Whitman File, International File. No classification marking. Transmitted by Urguplu to the Department of State during a June 3 meeting with Herter. A memorandum of their conversation is in Department of State, Central Files, 882.00/6–358. A similar letter from Menderes to Dulles was also transmitted by Urguplu at this meeting. A copy of this letter is Ibid., Presidential Correspondence: Lot 66 D 204, Menderes.↩
- Bayar’s Democratic Party assumed power in Turkey in 1950.↩
- Apparent reference is to the instructions sent in telegram 2807 (Document 306). In telegram 2357, March 10, Warren reported that he delivered the instructions to Zorlu on March 9. (Department of State, Central Files, 882.00/3–1058)↩
- Bayar visited Germany May 7–15. Heuss visited Turkey May 5–13, 1957.↩