Foreign Relations of the United States Diplomatic Papers, 1940, The British Commonwealth, The Soviet Union, The Near East and Africa, Volume III

611.6731/671

The Ambassador in Turkey ( MacMurray ) to the Secretary of State

No. 1381

Ankara , February 29, 1940.
[Received April 2.]

Sir: Referring to my despatch No. 1370 of February 15, 1940, reporting the representations which I made to the Minister for Foreign Affairs on February 9 with regard to the cessation of the issue of exchange permits for the transfer of payments for commercial importations from United States, I have the honor to report that, after two weeks had elapsed without any reply being received from the Minister in response to my representations, I addressed a letter to him on February 24 pointing out the deplorable effect which the cessation of the issue of exchange permits was having upon the trade relations between Turkey and the United States, stating that we were at a loss to understand the cessation of the issue of exchange permits at the very time when large amounts of exchange were becoming available to the Turkish Government through the purchase of Turkish products by the United States,^* and requesting the Minister to give the matter his urgent consideration with a view to bringing about the prompt resumption of the issue of exchange permits. A translation of my letter is enclosed for the Department’s information.

I may add that the Exchange Control Officer in Istanbul continues to maintain that the delay in the issue of new exchange permits is due to the fact that the replacement of the permits issued between December 15, 1939, and January 2, 1940, has not been completed, and to state that he is unable to indicate when the issue of new permits will be resumed.

Respectfully yours,

J. V. A. MacMurray

[Enclosure—Translation]

The American Ambassador ( MacMurray ) to the Turkish Minister for Foreign Affairs ( Saracoglu )

Ankara , February 24, 1940.

Dear Mr. Minister: May I ask your indulgence to allow me to invite your attention again to the situation with regard to the cessation of the issue of exchange permits for the transfer of payments for commercial importations from the United States, which I discussed with you on February 9.

I need not point out the deplorable effect of such delays upon the trade relations between Turkey and the United States. As time passes by without the settlement of past accounts and with uncertainty as to what may be expected in the future, American traders lose interest and confidence in the Turkish trade, and there is not only a dislocation of current business but also a disorganizing tendency to sever existing commercial connections. I cannot conceal the fact that we are profoundly disturbed by the continuation of this situation. As you know, my Government considers it essential that exchange be made available currently for American imports and we are at a loss to understand the cessation of the issue of exchange permits at the very time when large amounts of exchange are becoming available to the Turkish Government through the purchase of Turkish products by the United States.

In view of the long period which has already elapsed during which no permits have been issued, I hope that you will find it possible to give the matter your urgent consideration with a view to bringing about the prompt resumption of the issue of exchange permits in order that the exchange arrears may be liquidated as quickly as possible.

J. V. A. MacMurray

1. It is estimated that the American tobacco companies have already sold about $4,400,000 in connection with their purchases of Turkish tobacco since December 1, 1939. Exchange permits issued since the beginning of December have totalled about $2,700,000. [Footnote in the original.]