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PRP deputies who had been most vociferous in their condemnation of the "old-guard"
mentality.
A few members of the opposition Democratic Party have advocated rather more
extreme measures aimed at speedy reform and, of course, the removal of the PRP
from power. A split has ensued in the Democratic Party ranks, after repudiation
by the party's leadership of any unconstitutional excesses. Some of these advocates
of more extreme measures recently joined forces to form the new Nation Party, whose
strength in the country cannot yet be assessed. It is clearly evident, however, that the
great majority of the Turks fully approve President Inönü's policy of carefully avoiding
extremes, while Turkey develops its democratic processes of government, in order to
frustrate infiltration by subversive elements intent upon destruction of individual
freedom and national independence.
A US Survey Group visited Turkey in the summer of 1947 after Congress had voted
$400 million to aid Greece and Turkey. This group recommended that the $100 million
allocated to Turkey be devoted to modernizing and training the Turkish armed forces
and to alleviating the heavy financial burden of maintaining those forces.
A program to implement these recommendations, which were enthusiastically
welcomed and endorsed by the government and people of Turkey, was then drawn
up, and in October the first shipment of US aid matériel arrived in a Turkish port. In
1948 Congress voted a further $225 million to aid Greece and Turkey; of this sum $75
million has been tentatively allotted to the continuation of the program of improving
Turkey's military defense structure.
As a participating nation in the European recovery program, Turkey may be
assisted in obtaining matériel and equipment with the object of increasing economic
production, particularly agricultural and mineral, SO that Turkey may contribute to
the recovery of Western Europe.* Turkey, whose foreign trade in prewar years was
very largely with Western Europe, is directly interested in the economic recovery of
that area, as well as in its preservation from domination by the Soviet Union.
Government plans for economic rehabilitation and resumption of the program
of industrialization and development, which were necessarily suspended during the
war, have been announced, but their extensive implementation must depend upon
the amount of foreign exchange-especially dollars-that becomes available. Al-
though during the war substantial gold holdings were accumulated, the government
drew heavily upon them in 1947 and is reluctant to reduce them still further. Turkey's
dollar requirements, needed to obtain machinery and durable goods of many kinds
in the US, must be obtained through export sales to the US or countries willing to
settle in convertible currency. Dollar exchange may be further provided in Foreign
Cooperation Administration credits under programs to aid in the recovery of Europe,
through credits from other official or private US sources, or from the International
Bank for Reconstruction and Development.
There has been no appreciable lessening in Soviet pressure on Turkey. The situ-
It has subsequently been announced that an ECA loan of $30 million will be made to Turkey.
SECRET
ii
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"ocrText": "SECRET\nPRP deputies who had been most vociferous in their condemnation of the \"old-guard\"\nmentality.\nA few members of the opposition Democratic Party have advocated rather more\nextreme measures aimed at speedy reform and, of course, the removal of the PRP\nfrom power. A split has ensued in the Democratic Party ranks, after repudiation\nby the party's leadership of any unconstitutional excesses. Some of these advocates\nof more extreme measures recently joined forces to form the new Nation Party, whose\nstrength in the country cannot yet be assessed. It is clearly evident, however, that the\ngreat majority of the Turks fully approve President Inönü's policy of carefully avoiding\nextremes, while Turkey develops its democratic processes of government, in order to\nfrustrate infiltration by subversive elements intent upon destruction of individual\nfreedom and national independence.\nA US Survey Group visited Turkey in the summer of 1947 after Congress had voted\n$400 million to aid Greece and Turkey. This group recommended that the $100 million\nallocated to Turkey be devoted to modernizing and training the Turkish armed forces\nand to alleviating the heavy financial burden of maintaining those forces.\nA program to implement these recommendations, which were enthusiastically\nwelcomed and endorsed by the government and people of Turkey, was then drawn\nup, and in October the first shipment of US aid matériel arrived in a Turkish port. In\n1948 Congress voted a further $225 million to aid Greece and Turkey; of this sum $75\nmillion has been tentatively allotted to the continuation of the program of improving\nTurkey's military defense structure.\nAs a participating nation in the European recovery program, Turkey may be\nassisted in obtaining matériel and equipment with the object of increasing economic\nproduction, particularly agricultural and mineral, SO that Turkey may contribute to\nthe recovery of Western Europe.* Turkey, whose foreign trade in prewar years was\nvery largely with Western Europe, is directly interested in the economic recovery of\nthat area, as well as in its preservation from domination by the Soviet Union.\nGovernment plans for economic rehabilitation and resumption of the program\nof industrialization and development, which were necessarily suspended during the\nwar, have been announced, but their extensive implementation must depend upon\nthe amount of foreign exchange-especially dollars-that becomes available. Al-\nthough during the war substantial gold holdings were accumulated, the government\ndrew heavily upon them in 1947 and is reluctant to reduce them still further. Turkey's\ndollar requirements, needed to obtain machinery and durable goods of many kinds\nin the US, must be obtained through export sales to the US or countries willing to\nsettle in convertible currency. Dollar exchange may be further provided in Foreign\nCooperation Administration credits under programs to aid in the recovery of Europe,\nthrough credits from other official or private US sources, or from the International\nBank for Reconstruction and Development.\nThere has been no appreciable lessening in Soviet pressure on Turkey. The situ-\nIt has subsequently been announced that an ECA loan of $30 million will be made to Turkey.\nSECRET\nii"
}