Office of the Historian

867.24/5–245: Telegram

The Acting Secretary of State to the Chargé in Turkey (Packer)

Washington, May 26, 1945—4 p.m.

562. Embs 594, May 2.

1.
Expression “retransfer” as applied to lend-lease goods shipped to Turkey has no connection with trans-shipment of goods from vessels carrying material from U.S. to the Middle East onto vessels moving from Middle East to Turkey. Lend-lease goods deemed retransferred when the original transferee govt, (e.g., U.K.) turns goods over to another govt, (e.g., Turkey). When such retransfer is effected and reported to proper officials in Washington in accordance with established procedures and Master L–L Agreements, lend-lease account [Page 1308] of original transferee govt, (e.g., U.K.) is credited with value of the goods and retransferee government (e.g., Turkey) is charged with value of the goods. (We aware reports on retransfers have not been complete in many cases.) Therefore U.S. looks only to the latter govt, for whatever benefit is to be received by U.S. for such lend-lease aid and former govt, (e.g., U.K.) should be prepared to assure retransferee govt, (e.g., Turkey) that no charge remains on books for such items.
2.
Value of the lend-lease aid measured by amount actually expended by U.S. Govt, in rendering such aid. If freight and handling charges paid by U.S. such costs are added to value of aid rendered. If such charges are paid by another govt, (e.g., U.K.) such charges are not included as part of aid rendered by U.S. to any govt. If the U.K. paid the cost of shipping lend-lease goods of U.S. origin from Middle East to Turkey such costs are not included as lend-lease aid by U.S. to Turkey.
3.
Negotiations relating to disposal of surplus military stores held by Brit, in Turkey are completely separate from question of the extent of lend-lease aid to Turkey. So-called fatigue stores were lend-leased only to U.K. and were not retransferred to Govt, of Turkey and hence this matter involves an issue only as between U.S. and U.K.

Sent Ankara. Rptd London re Ankara 38, May 2.

Grew