SITUATION IN TURKEY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79R00890A000500020017-2
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 2
• Document Creation Date: December 12, 2016
• Document Release Date: June 5, 2002
• Sequence Number: 17
• Publication Date: February 1, 1955
• Content Type: BRIEF

A NSC BRIEFING For Release 2002/08/ P79R00890A00bi00020017-2 Qm- I February 1955
SITUATION IN TURKEY
I. In recent months, increasingly clear Turkey's foreign,
domestic economic situation steadily deteriorating.
A. Inability pay accumulated foreign commercial debts
(some $150 million, mostly owed to West Europe)--this
damaging nation's credit standing.
B. Over-expansion of heavy industry, public works, defense
programs (up 44% in FY '55 plans)--this straining
nation's resources.
C. Cost-of-living continues to climb (up 2040 since '52)
supplies of essential imports (industrial materials,
spare parts) being depleted to point some industries
forced close down, currency depreciating (officially,
dollar equals 2.80 Turkish pounds, but current black
market quote is 7.10).
D. Lack of Western credit, markets turning some Turkish
trade toward Orbit.
1. Exports to Orbit up more than 60% this year--were
some 20% of Turkey's total '54 exports.
Currency devaluation could help solve problems. 4440 cut
has been recommended by West, but any cut firmly opposed
by Menderes government.
I_I. In contrast economic woes, domestic political situation stable:
A. Democratic Party re-elected by overwhelming majority
(May. ' 54) .li
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B. Post-election tensions between Democrats, defeated
Republican People's Party now apparently dissipating.
III. Internationally, regardless expanding Orbit trade, Turkey's
Western orientation firm.
A. Active in NATO, and Balkan Pact (also OEEC, COCOM,
Council of Europe).
B. Continues to be leader in approaches to Middle East
Defense--Turk-Pakistan Pact (April '54), projected
Turk-Iraq treaty.
IV, Turkey's natural resources, raw materials and manpower
adequate for balanced viable economy if only pace of expan-
sion industry, public works slowed.
A. More realistic approach economic affairs must be adopted,
even if this requires forceful Western pressures,
B. If Western advice heeded, Turkey's long-range prospects
optimistic.
Approved For Release 2002/08/06 : CIA-RRp79R00890A000500020017-2