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to apply the financial aid as a grant aimed at meeting Turkey's military requirements.
The Turkish Government expressly indicated its wholehearted agreement with this
decision, which was later applied also to the $75 million tentatively apportioned to
Turkey in 1948. A major purpose in applying the aid toward military needs was to
bolster Turkish self-confidence and also to alleviate the heavy financial burden of
maintaining large forces under arms in face of menacing Soviet demands. Moreover,
it was expected that some of the funds thus released would be channeled into produc-
tive enterprise for the economic betterment of the country.
From the funds already provided Turkey, apart from allocations for equip-
ment and training of the armed forces and for improving arsenals, $5,000,000 is being
spent for road construction and maintenance. Much of the equipment has already
been delivered; the training program is well advanced, and the Turkish Government
is enthusiastically cooperating in furthering this program, which it plans to continue
with US technical advice after the aid grants are exhausted. Although the roads are
laid down primarily because of their military value, they will be of considerable eco-
nomic advantage in moving farm, mine, and other products to their markets. As con-
struction proceeds, and as engineers and laborers learn the techniques of operating
the equipment and building and maintaining the main highways and feeder roads,
the economic benefits will become progressively greater.
b. The Status of Turkey in European Recovery Programs.
Turkey is one of the nations participating in the program for European re-
covery and has welcomed the opportunities thereby offered.* First, the Turks hope
for direct advantages through technical and to some extent financial assistance in
the development of projects calculated to increase production and thus enable Turkey
to export surpluses to other participants; second, Turkey is vitally interested not only
in preserving the political independence of the European states but also in their eco-
nomic recovery. A very substantial part of Turkey's prewar foreign trade was with
European nations participating in the recovery plans, as the figures below indicate.
The loss of trade with Germany has brought about a reorientation of Turkey's
foreign trade. Difficulties currently being encountered in foreign exchange constitute
TURKISH PREWAR FOREIGN TRADE
1938 Imports
1938 Exports
Percent
Percent
With participant European countries:
70.3 **
68.5 **
With USA
10.5
12.3
80.8
80.8
With other countries
19.2
19.2
100.0
100.0
*
An ECA loan of $30 million to Turkey has recently been announced.
Includes all trade with Germany.
27
SECRET
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"ocrText": "SECRET\nto apply the financial aid as a grant aimed at meeting Turkey's military requirements.\nThe Turkish Government expressly indicated its wholehearted agreement with this\ndecision, which was later applied also to the $75 million tentatively apportioned to\nTurkey in 1948. A major purpose in applying the aid toward military needs was to\nbolster Turkish self-confidence and also to alleviate the heavy financial burden of\nmaintaining large forces under arms in face of menacing Soviet demands. Moreover,\nit was expected that some of the funds thus released would be channeled into produc-\ntive enterprise for the economic betterment of the country.\nFrom the funds already provided Turkey, apart from allocations for equip-\nment and training of the armed forces and for improving arsenals, $5,000,000 is being\nspent for road construction and maintenance. Much of the equipment has already\nbeen delivered; the training program is well advanced, and the Turkish Government\nis enthusiastically cooperating in furthering this program, which it plans to continue\nwith US technical advice after the aid grants are exhausted. Although the roads are\nlaid down primarily because of their military value, they will be of considerable eco-\nnomic advantage in moving farm, mine, and other products to their markets. As con-\nstruction proceeds, and as engineers and laborers learn the techniques of operating\nthe equipment and building and maintaining the main highways and feeder roads,\nthe economic benefits will become progressively greater.\nb. The Status of Turkey in European Recovery Programs.\nTurkey is one of the nations participating in the program for European re-\ncovery and has welcomed the opportunities thereby offered.* First, the Turks hope\nfor direct advantages through technical and to some extent financial assistance in\nthe development of projects calculated to increase production and thus enable Turkey\nto export surpluses to other participants; second, Turkey is vitally interested not only\nin preserving the political independence of the European states but also in their eco-\nnomic recovery. A very substantial part of Turkey's prewar foreign trade was with\nEuropean nations participating in the recovery plans, as the figures below indicate.\nThe loss of trade with Germany has brought about a reorientation of Turkey's\nforeign trade. Difficulties currently being encountered in foreign exchange constitute\nTURKISH PREWAR FOREIGN TRADE\n1938 Imports\n1938 Exports\nPercent\nPercent\nWith participant European countries:\n70.3 **\n68.5 **\nWith USA\n10.5\n12.3\n80.8\n80.8\nWith other countries\n19.2\n19.2\n100.0\n100.0\n*\nAn ECA loan of $30 million to Turkey has recently been announced.\nIncludes all trade with Germany.\n27\nSECRET"
}