751.67/262: Telegram
The Consul General at Beirut (Palmer) to the Secretary of State
[Received May 31—5:10 p.m.]
Department’s telegram of May 29, 4 p.m. I have just returned from Hatay. Princeton expedition director reports attitude of Hatay authorities friendly and helpful and hopes for but is not confident of satisfactory division of finds which he plans to request about June 15. He has been assured by Hatay Prime Minister that the concession will be respected and carried out in accordance with antiquities law heretofore applicable under the Mandate, but he anticipates that the present Hatay Government will be more strict in the application of provisions regarding division of finds than the French High Commission authorities have been and he fears that the transfer of Hatay to Turkey may make division even more difficult. Assurances that the present 6-year concession with 3 years yet to run will be respected as regards not only operations but also division of finds and exportation of the expedition’s share should be obtained. Further assurance [Page 841] as to possibility of successive renewals of concession, to permit completion of long range program, would also be highly desirable.
Although other American interests are now and expect to be further handicapped by Turkish foreign exchange restrictions and taxes, they have no suggestions to offer and appear generally reconciled to operation under such conditions or withdrawal from Hatay if necessary.
Socony Vacuum finds present situation complicated in that its Hatay organization now operates under Stamboul although not in Turkish territory. Beirut manager informs me that the present Turkish foreign exchange restrictions would cause appreciable loss if capital assets were liquidated but he doubts whether company’s organization in Turkey would consider representations advisable.
American Export Lines representative declares former Alexandretta trade largely transit may be diverted to Latakia or Tripoli, possibly with encouragement on the part of French High Commission and Syrian and Lebanese authorities; and he has already made preparations for such a change while still maintaining his Alexandretta organization for continued activity there if conditions permit.
Alexandretta representative of Mac Andrews and [Forbes?] states that his firm is prepared to undertake to do business under Turkish regime but that he will recommend firm’s retirement from Hatay and establishment at Latakia or Tripoli if Turkish foreign exchange restrictions and taxes make continued operation at Alexandretta unprofitable.
Repeated to Ankara.