811.20 Defense(M)/3312: Telegram
The Ambassador in Turkey (MacMurray) to the Secretary of State
[Received September 24—12:25 a.m.]
353. Your telegram 160, September 19, 7 p.m.38 As regards status of British negotiations for renewal of chrome contract expiring January 8 next following information has been given me by my British [Page 952] colleague in addition to what was contained in my 344:39 About a year ago the Turks complained that the London market price as specified in the contract (only 36 shillings per ton at that time as against 105 that the Germans were offering) was purely artificial and the British then undertook to pay the German price for the whole output including the four-fifteenths French share for which they had meanwhile assumed responsibility. Last July when rumors were current that some chrome would be given to Germany my British colleague wrote to the Foreign Office (see my 261, July 18, 5 p.m.) in exercise of the option of renewal; receiving no reply for several weeks, he inquired of the Minister and was told that there would be no question of the British right but that in view of the forthcoming trade negotiations with Germany the Ministry would appreciate it if the British could permit him to give to Germans at least some portion of the 7,000 tons which had been granted last year to Italy (that related to an arrangement made with British and French consent in the spring before Italy entered the war, by which Turkey was to have given the 10,000 tons in barter for sulphur not obtainable elsewhere; and 3,000 tons had in fact been given on this deal); the British refused assent and that incident of the discussion was apparently concluded. Repeated urgings elicited no reply to the note; and only now has Turkish Government raised the new legalistic argument about the necessity of French participation in any requests for extension of the contract despite the fact that it has been selling the whole output to the British at the higher price on the assumption that they had replaced the French and assumed their obligations under the contract.
Repeated to London.