1674-         FOREIGN RELATIONS, 1949, VOLUME VI

afford any substantial relief. (Note: budget provision for lira ex-
penditures on locally -procured consumption goods include food LT
125 million, clothing 49 million and fuel 13 million.)
  5. In general, we see present budgetary difficulties threatening es-
sential progress strategic program and recommend serious considera-
tion early implementation following suggested relief measures:
       (a) Direct grant in aid in minimum amount $20 million (see
    Smvtel 194 April 30, paragraph 13).
       (b) General authorization for AMAT to defray, within limits
    of such grant, cost of imports now authorized in present defense
    budget and also cost. of such nonbudgeted items (including
    building materials and labor) as it deems essential to orderly
    progress: MAP,.
       (c) Placing Turkey on grant basis for ECA aid, to avoid ex-
    cessive foreign exchange and budgetary burden when service
    begins, as welI as to provide counterpart funds. Latter would
    facilitate implementing projects and encouragement sound fiscal
    policy. (Note: Dorr concurs in this recommendation.)
    Polk will prepare preliminary supporting report in Cairo, mailing:
copies directly to Department and Treasury. I strongly recommend
his early return to continue survey (umfortunately cut short by Treas-
ury instruction in Deptel 186 May 184). He has received fullest, co-
operation from Turk Ministers and fiscal authorities who have urged
and expect his return. We are persuaded this is unique opportunity
establish true 'financial picture. Dorr strongly concurs on basis pros-
pective major contribution ECA objectives.
   Sent Department 256; repeated Cairo 23 for Polk.
                                                       WADSWORTH

  'Not printed.

867.00/6-2849 :Telegram
         The Secretary of State to the Embassy in Turkey

 CONFIDENTIAL                   WASHINGTON, June 30, 1949-6 p. m.
 247. Ur 2921 read with interest in view sensational AP despatch
 June 27 announcing "major political crisis punctuated by hints of
 revolution over Govt's internal policies broke suddenly in Turkey to-
 night" and pepperedwith such phrases as "inciting people to revolt",
 "terroristic atmosphere~i "emergency GNA session to cope with
revo-
 'Telegram 292, June 28, from Ankara, not printed, reported that the Turkish
 Democratic Party, the major opposition party in Turkey, h~ad adopted a con-
 vention resol~ution urging that electoral irregularities in the forthcoming
1950
 national elections 'be met with "legitimate self-defense." The
Turkish Govern-
 ment had subsequently issued ,a communique promising free and? unfettered
 elections but warning against the efforts of the Democratic Party to create
an
 atmosphere of "disquiet." (867.00/6-2849)