[Handwritten: Sept. 22] October 8, 1952
To: The Secretary
Through: S/S
From: NEA - Henry A. Byroade
Subject: Proposed Reply to Turkish Ambassador's Request for Aid to Meet EPU Deficit.
Problem:
To reply to the request made to you by the Turkish Ambassador on September 22 (Memorandum of Conversation attached) that the Department support with MSA Turkey's request for allocation of Special Resources funds to meet current Turkish EPU deficits.
Discussion:
At the time the Turkish Ambassador called on you, and subsequently, discussions of the Turkish problem were held between the Department and MSA. Concurrently, a representative of OEEC was sent from Paris to Ankara for an on-the-spot survey of the Turkish position. He has recommended that the Managing Board extend a $15 million credit to Turkey to help cover Turkey's EPU deficit for September, which we are informed by Paris is approximately $16.9 million. Both the Department and NSA agree that it is neither advisable nor necessary to allocate Special Resources to Turkey at this time.
Recommendation:
It is recommended that you authorize me to inform the Turkish Embassy that the problem raised with you by the Turkish Ambassador has been the subject of continuing study by the Department and MSA; that Turkey's negotiations with the multilateral OEEC organization appear to have resulted in a satisfactory solution of the September EPU deficit; and that both MSA and Embassy officers in Ankara are working closely with the Turkish Government in connection with the eventual allocation of MSA aid to Turkey for FY 1953.
Attachment: Memorandum of Conversation
Copy to: S/MSA
NEA:GTI:WOBaaxter: flj