368. Telegram From the Department of State to the Embassy in Turkey 1

184458. Subject: Cyprus: Turkish Economic Aid. Ref: Nicosia 1939.2

1.
In light of Makarios’ comments on GOT economic aid to Turkish Cypriots (reftel), it seems evident that initiation of aid program which GOT reportedly now considering could, if not handled carefully, have effect comparable to that produced by last December’s sudden announcement of Turkish Cypriot Provisional Administration.
2.
Believe would be wise precaution if Embassy could find opportunity to note to FonOff need for handling aid issue so as to preserve climate of confidence necessary for success of communal talks. Aware as we are of Greek Cypriot misgivings about objectives of aid, we hope that if GOT decides initiate economic aid program in Turkish Cypriot community it will inform GOC well in advance of public announcement and will make sure that GOC has full and correct understanding of purpose of aid.
3.
We will seek opportunity make same point with Turkish Embassy after you have approached FonOff.
4.
If approached on possible US economic aid for Turkish Cypriots, Embassy should offer no encouragement. We have consistently turned down such proposals for several years. Embassy may point out that we no longer give aid to Cyprus; if we did, it would have to be on government-to-government basis; and aid funds are now more severely restricted than ever.3
Rusk
  1. Source: Department of State, Central Files, POL 27 CYP. Confidential. Drafted by McFarland; cleared by NEA, IO, AID, and L; and approved by Rockwell. Repeated to Athens, London, Nicosia, Ottawa, the Mission to NATO, and USUN.
  2. Telegram 1939 from Nicosia, June 11, reported that Makarios had told U.S. representatives that he was willing to accept a Turkish aid program as long as it was not employed to encourage separatist tendencies. (Ibid.)
  3. In telegram 6704 from Ankara, June 19, the Embassy reported it had sounded out the Turkish Foreign Ministry on the issue of economic assistance prior to the receipt of telegram 184485 and had been informed that no problems had arisen when this plan was announced to the Greek Cypriots. (Ibid.)