Office of the Historian

320. Telegram From the Embassy in the United Kingdom to the Department of State0

London, October 23, 1958, 1 p.m.

2221. From Dillon.1 In conversation with Macmillan this morning accompanied by Ambassador Whitney I mentioned Turkish interest rate problem and told Macmillan I thought it was vitally important for political reasons to make some gesture to Turks which would give Turkish Government reason for accepting relatively high rate of interest. I said that if UK could agree on 5-3/4 percent rate and at same time make statement that if they were making a loan of similar size and duration to a Commonwealth country at this time the rate would be 5-3/4 percent Turkish Government would then have a valid reason for accepting. Macmillan had obviously been briefed on this subject and while there was no commitment I had definite impression that we will be able reach agreement along these lines since Macmillan offered no objection to procedure as outlined.2

Whitney
  1. Source: Department of State, Central Files, 882.10/10–2358. Secret; Priority. Repeated to Paris for USRO, Ankara, and Bonn.↩
  2. Dillon was in London for discussions with the U.K. Government about the future of a European free trade area.↩
  3. No final decision was taken at the October 23–25 meeting of the creditor nations on the interest rate.↩