Foreign Relations of the United States, 1952–1954, Eastern Europe; Soviet Union; Eastern Mediterranean, Volume VIII

882.2553/11–1252: Telegram

No. 469
The Ambassador in Turkey (McGhee) to the Department of State

secret

Ankara, November 12, 1952—5 p.m.

632. I was called to mtg Nov 10 with Pres Bayar, at which were present also the PriMin and FonMin. The PriMin confirmed info previously given me by FonMin, reported in Embtel 591 of Nov 5¹ that Turk Govt had in fact taken the decision to invite foreign oil companies (i.e., US companies) to participate in development Turk petroleum resources. PriMin said that after 20 years of attempts on part of Turk Govt to exploit their petroleum resources they were prepared to admit that they had not been successful and sought assistance of foreign oil companies.

FonMin stated that a favorable reply to my note of June 5 (based on Deptel 1129 of June 3)² which had been result of the Pres’ initiative taken on May 28 (see Embtel 1355 of May 31),³ wld be sent to Emb in a few days.⁴ The only remaining point to be resolved, which emerged at a mtg of Turk Govt officials on Nov 8, is whether or not Turk Govt can, under petroleum law of 1926, delegate its exclusive authority exploit petroleum resources in Turk, which it can to a Turk corporation, to a foreign one as well. If this latter is not possible, govt will make necessary provisions, either thru action by Council of Mins,⁵ or, if necessary, thru additional legislation. Turk Govt expects at same time to make its decision public.

I expressed satis that Turk Govt had taken final decision in this matter which was of great importance to our govt, because it indicated confidence of Turk Govt in US and US companies; it is in our opinion the best means of securing proper exploitation of Turk petroleum resources which is of great importance to Turk for both econ and strategic reasons; it wld provide convincing proof to US and world businessmen of the sincere desire of Turk Govt to encourage both domestic and foreign private investment in Turk; it wld have a salutory effect on relations between oil companies and oil-producing countries generally, particularly in the ME. The Turk Govt’s action wld provide first example of a country which after determined effort to exploit its own oil resources, sought assistance of private companies.

In response to my query the PriMin confirmed again that Turk Govt had in mind concessionary arrangements of type which have been fairly well standardized in other producing countries. I repeated statement referred to in our note that US sought no monopoly for US companies, but hoped consideration wld be given to all qualified oil companies regardless of nationality. I stressed desirability of Turk Govt’s dealing with matter in an open fashion on basis of careful study and full advice regarding the technical, legal and legis aspects of the problem. I offered US Govt assistance in obtaining necessary tech advisors.

The PriMin stated that Turk Govt was aware of factors which I had mentioned, and that it wld seek the assistance of US Govt not only in obtaining technical advisors, but in informing the US oil companies of Turk Govt’s decision.

I consider this decision, for which I have worked for a long time, to be of great significance, as I have previously indicated in Embtel 1393 of June 5.⁶ Upon receipt of note from Turk Govt, I hope Dept will give whatever further assistance Turks desire. I suggest widespread publicity be given the Turk Govt’s announcement of its desire to invite foreign oil companies to develop Turk’s petroleum resources, particularly in the ME and So Amer, where it shld have stabilizing effect on position of US oil companies. I also suggest that thru Dept Commerce and other media, widespread publicity be given this decision as representing progressive econ policies on part of Turk Govt.

McGhee

1. Telegram 591 reported that the Turkish Government had decided to seek assistance from foreign oil companies in the development of Turkish petroleum resources. (882.2553/11–552)
2. Document 466.
3. Document 465.
4. Telegram 648 from Ankara, Nov. 14, transmitted the text of a letter by Köprülü along these lines. (882.2553/11–1452)
5. Telegram 638 from Ankara, Nov. 13, transmitted the advance text of the Council of Ministers decision, dated Nov. 12, concerning the development of Turkish petroleum resources. (882.2553/11–1352)
6. See footnote 4, Document 466.