711.672/149: Telegram
The Special Mission at Lausanne to the Secretary of State
[Received July 31—10:10 a.m.]
573. I went to see Ismet late last night and suggested tentatively a claims formula which was substantially that communicated to me in Department’s 269, July 27. I presented it as my own personal suggestion and without making any commitments. After examining it for nearly an hour, in consultation with Munir Bey, Ismet told me he would talk it over with me next day.
Today Ismet and Riza Nour called on me, and we discussed minorities and claims for three hours.
Ismet submitted a claims formula reproducing substantially the formula I had proposed the previous evening. But he did not adhere to the arrangement for preliminary discussion of claims by a commission, and he left to a later date the matter of an agreement on a method of settlement, and the matter of deciding on the classes of claims which Turkey can consider. Ismet stated that without fuller information on the nature of our claims he could not consent to a [Page 1131] resort to arbitration, unless he could first exclude certain general classes of claims some of which might later prove to merit examination. As it was plain that we could advance no farther, it was agreed between us that a final formula on the basis of our conversation should be drafted by the experts and submitted to our respective Governments, but that it implied no commitments until accepted by both Governments. It was drafted by Turlington and Munir Bey and is appended hereto in the form tentatively approved by Ismet. When accepting the draft, Munir Bey stated that the earlier Turkish proposal of a commission had been joined with other suggestions which had since been withdrawn, and that his Government could not consent to have the proposed commission inquire into all claims, since that procedure would progressively and inevitably lead to arbitration. He declared that Turkey is ready to agree now to begin a discussion of American claims with the best will and intention of devising some means of settlement, but does not wish to prejudice its position as regards liability.
It seems improbable that we can get better terms at present, and it rests with the Department whether we should accept and sign.
Ismet absolutely declines to touch the question of minorities, either by a letter or in any other manner. He declares that a letter would constitute a one-sided pledge, either express or implied, which he will never consent to give. He was quite unmoved by argument.
Ismet requested me to communicate fully to the Department some observations which he made just before the close of our interview. He said that no other nation had received from Turkey so many evidences of confidence as had the United States; that in the course of the recent conference in which Turkey was endeavoring to make peace with her late enemies, whenever conflicts had arisen even over the interests of individual companies, the interests of the United States had been defended unflinchingly by the Turkish representatives. Moreover, Turkey had granted to an American company a concession ten times as valuable as all other concessions taken together, and had not been deterred by the possibility that the European powers would make difficulties. Ismet argued that, in view of the risks taken, Turkey’s conduct had been an evidence of the highest confidence in the United States and that Turkey had held resolutely to that policy.
Ismet made much of the fact that the United States had received most-favored-nation treatment, which had been denied to the Allied Powers, even after they had singly and jointly exerted persistent pressure upon Turkey.
Ismet also asserted that in consenting at all to deal in the treaty with the question of claims, Turkey had made a great concession; [Page 1132] and he expressed the hope that the United States would not abuse Turkey’s confidence by pressing claims which are unfair.
He declared that if the United States would not accede there would be a revulsion of feeling in Turkey under impression that the Turkish Government had been too trusting. He expressed a hope that Turkish faith in our country would be strengthened by signature of the treaty; and he besought me to make every endeavor to avert a rupture over claims, as the Turkish Government had gone as far as it could.
In my own remarks, which it seems unnecessary to report to the Department, I dwelt elaborately upon our own efforts to meet the Turkish views during the negotiations and the sacrifices we had made to that end, and upon the unfortunate impression which would be made on American business and sentiment if our negotiations should now come to nothing. I made particular mention of the fact that the whole course of the negotiations must be fully explained to the public. I took occasion to restate the reservations we had made at each stage of the discussions, and I pointed out that the provisional concessions made at various times in order to satisfy Turkish views could not become effective until the United States Government had approved the complete and definitive text of the treaty.
Upon reflection, we believe that there are open to us two alternatives: Either to present an ultimatum, or to accept the Turkish formula on claims and sign the treaty. After reviewing what we observed of Turkish diplomacy during the conference and after considering the present inflexible temper in Turkey, it is our belief that an ultimatum would almost (although not quite) certainly end in adjournment. We do not venture to predict whether we could obtain better terms later. Below is appended the final text of the claims formula:5
“Within a period of one year from the date of the coming into force of the present treaty, the claims of American nationals, companies, or associations against Turkey and the claims of Turkish nationals, companies, or associations against the United States shall, upon the application of the interested Government, be registered with the competent authorities of the other Government. Evidence establishing the nature, origin, and justification of these claims shall likewise be presented.
After having taken cognizance of the claims which may be presented to them and at the latest within a period of six months from the presentation of all the said claims, the two contracting parties will proceed to negotiations with a view to determining the categories of such claims which may be followed up. The two contracting parties will thereafter come to an understanding concerning the methods of examination and adjustment of the claims falling within the said categories.[”]
- Formula not paraphrased.↩