TURKEY AS AN ALLY

Document Type: 
Collection: 
Document Number (FOIA) /ESDN (CREST): 
CIA-RDP79R01012A007500030001-7
Release Decision: 
RIPPUB
Original Classification: 
S
Document Page Count: 
20
Document Creation Date: 
December 27, 2016
Document Release Date: 
August 7, 2013
Sequence Number: 
1
Case Number: 
Publication Date: 
February 21, 1956
Content Type: 
NIE
File: 
AttachmentSize
PDF icon CIA-RDP79R01012A007500030001-7.pdf1.84 MB
Body: 
A Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2013/08/07: CIA-RDP79R01012A007500030001-7 1 ? Vi ? SECRET 7 Niflh 1956 NIE 3 3 ? 5 6 21 February 1956 NATIONAL INTELLIGENCE ESTIMATE NUMBER 33-56 TURKEY AS AN ALLY DoctimE--_-!-7 NO. NO CHANal IN t CLAS3. (3 TO TS SO NEXT RE-ViiivV DATE: Submitted by theTE KR 70-2 REVIEWER: DIRECTOR OF CENTRAL INTELLIGENCE The following intelligence organizations participated in the preparation of this estimate: The Central Intelligence Agency and the intelligence organizations of the Departments of State, the Army, the Navy, the Air Force, and The Joint Staff. Concurred in by the INTELLIGENCE ADVISORY COMMITTEE on 21 February 1956. Concurring were the Special Assistant, Intelligence, Department of State; the Assistant Chief of Staff, Intelligence, Department of the Army; the Director of Naval Intelligence; the Director of Intelligence, USAF; and the Deputy Director for Intelligence, The Joint Staff. The Atomic Energy Commission Representative to the IAC and the Assistant Director, Federal Bureau of Investigation, abstained, the subject being outside of their jurisdiction. 246 COPY NO. ASS ISTANT DIRECTOR ,ONE SECRET CalIFIDSSTETAL Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2013/08/07: CIA-RDP79R01012A007500030001-7 Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2013/08/07: CIA-RDP79R01012A007500030001-7 CENTRAL INTELLIGENCE AGENCY DISSEMINATION NOTICE 1. This estimate was disseminated by the Central Intelligence Agency. This copy is for the information and use of the recipient indicated on the front cover and of per- sons under his jurisdiction on a need to know basis. Additional essential dissemination may be authorized by the following officials within their respective departments: a. Special Assistant to the Secretary for Intelligence, for the Department of State b. Assistant Chief of Staff, Intelligence, for the Department of the Army c. Director of Naval Intelligence, for the Department of the Navy ? d. Director of Intelligence, USAF, for the Department of the Air Force e. Deputy Director for Intelligence, Joint Staff, for the Joint Staff f. Director of Intelligence, AEC, for the Atomic Energy Commission g. Assistant Director, FBI, for the Federal Bureau of Investigation h. Assistant Director for Central Reference, CIA, for any other Department or Agency 2. This copy may be retained, or destroyed by burning in accordance with appli- cable security regulations, or returned to the Central Intelligence Agency by arrange- ment with the Office of Central Reference, CIA. 3. When an estimate is disseminated overseas, the overseas recipients may retain it for a period not in excess of one year. At the end of this period, the estimate should either be destroyed, returned to the forwarding agency, or permission should be re- quested of the forwarding agency to retain it in accordance with IAC-D-69/2, 22 June 1953. WARNING This material contains information affecting the National Defense of the United States within the meaning of the espionage laws, Title 18, USC, Secs. 793 and 794, the trans- mission or revelation of which in any manner to an unauthorized person is prohibited by law. DISTRIBUTION: White House National Security Council ' Department of State Department of Defense Operations Coordinating Board Atomic Energy Commission Federal Bureau of Investigation Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2013/08/07: CIA-RDP79R01012A007500030001-7 Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2013/08/07: CIA-RDP79R01012A007500030001-7 SECRET TURKEY AS AN ALLY THE PROBLEM To estimate the present situation and probable developments in Turkey over the next few years, with particular reference to Turkey's strengths and weaknesses as a member of the Western alliance. CONCLUSIONS 1. Since 1947, Turkey has been a stable and dependable member of the Western alliance and has made considerable prog- ress in developing its economy and strengthening its military establishment. Nevertheless, its ambitious pursuit of both economic development and military preparedness simultaneously has pro- duced serious economic and political strains which will probably last for some time to come. (Paras. 8-11) 2. The government has announced a sta- bilization program and in this connection will probably take steps to check inflation and improve its international payments position, which will require a reduction in the rate of recent investment. It will probably need additional US assistance incident to its stabilization program and particularly in meeting its most pressing financial obligations. Over the longer run, if approximately the recent rate of investment is to be resumed and carried out with some degree of economic stabili- ty, continuation of substantial amounts of foreign aid will be required as well as currency devaluation and the introduc- tion internally of austerity measures. (Paras. 34-38) 3. We consider it highly unlikely that any major threat to the stability of the Turkish governmental structure will arise, at least within the next few years. The Democrat Party will probably retain control of the government at least up to the 1958 elections, but will probably suffer some loss of strength and may even feel compelled to drop Prime Minister Menderes. Over the longer run, economic development will increasingly change traditional patterns of Turkish rural life and create new political and social as well as economic strains. (Paras. 20-27) 4. These political and economic difficul- ties will not weaken Turkey's basic anti- Soviet orientation. The Turks will con- tinue to regard the US as a necessary ally and will almost certainly continue to co- operate with the US on major inter- national issues. However, irritations and tensions in the US-Turkish relationship will be recurrent. Turkey will be dis- satisfied with levels of US aid and will SECRET Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2013/08/07: CIA-RDP79R01012A007500030001-7 1 Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2013/08/07: CIA-RDP79R01012A007500030001-7 SECRET seek increased US support for the Bagh- dad Pact. Moreover, strains are likely to arise in connection with the implementa- tion of any program for the stabilization of the Turkish economy. (Paras. 57, 62- 64) 5. Trade with the Bloc has increased sig- nificantly since 1950, and now accounts for 20 to 25 percent of Turkey's foreign trade, as compared to seven to eight per- cent in 1950. If the stabilization pro- gram is successful, Turkish goods may again become competitive in Western markets and the Turks may attempt to reverse the trend of growing trade with the Bloc. However, unless the Free World is prepared to purchase Turkey's agricul- tural surpluses, there will be little chance of such a policy being successful. More- over, the Turkish government's preoccu- pation with rapid economic development might even induce the Turks to accept some Soviet aid, though they would al- most certainly not do so at the risk of losing US financial support. (Para. 39) 2 6. During the past year relations with Greece have been marred by continuing sharp differences over Cyprus. In time the Turks may reconcile themselves to Cypriot self-determination, provided the rights of the Turkish minority are fully guaranteed, and UK or NATO control of military bases ? on the island is main- tained. (Paras. 50, 58, 61) 7. Despite Turkey's military progress over the past few years, its forces are still only partially equipped and trained. Turkish ability to undertake sustained combat operations would be completely dependent on outside logistic support. Turkey would probably attempt to main- tain its present military establishment despite a cutback in US military aid. In view of the great emphasis which both the Turkish government and the Turkish people have placed on the military estab- lishment, a major reduction in US mili- tary aid would have a profoundly dis- illusioning effect. (Paras. 40-46, 49) DISCUSSION I. INTRODUCTION 8. Since 1947, Turkey has been a stable and dependable member of the Western alliance. It has been an uncompromising opponent of Soviet expansionism, an enthusiastic sup- porter of NATO preparedness goals, and has worked closely with the US. It has allocated a substantial proportion of its resources to the support of its defense establishment, and with US assistance has made considerable progress in building up and modernizing its armed forces. It has placed primary emphasis on its ties with NATO and the US, but it also took the lead in the establishment of the Balkan Alliance and has worked energetically to set up a Middle East regional defense grouping. 9. Turkey has made notable progress toward political and economic development since World War II. In 1950 the virtual dictator- ship of the Ataturk-Inonu era ended without noticeable loss of stability. Free elections were held for the first time since the founding of the republic and when the opposition Dem- ocrat Party won an overwhelming victory, an orderly transfer of power took place. With US technical and economic aid, the process of economic development has reached a point where dynamic economic growth finally is beginning to take place. Since 1950 national income has been growing at a rate which for the first time is beginning to provide signifi- cant funds for investment. Peasant educa- tion and construction of roads to the more SECRET Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2013/08/07: CIA-RDP79R01012A007500030001-7 Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2013/08/07: CIA-RDP79R01012A007500030001-7 SECRET 3 remote villages are also beginning to have pro- found social effects. 10. Nevertheless, Turkey is still a poor and underdeveloped agricultural country. Al- though political awareness in the villages is slowly increasing, political activities are still dominated by a small, educated elite; and the majority of the population generally looks to the government for instruction and guid- ance. Despite free elections, the government is still authoritarian in tone, with the Demo- crats using much the same sort of legal de- vices to curb the opposition as did their pred- ecessors. The extent of the September 1955 anti-Greek riots in Istanbul and Izmir re- flected the economic dissatisfaction of certain elements of the urban population, as well as their prejudices against minority groups.' 11. Although the Turkish government's in- creasingly active diplomacy has scored suc- cesses in helping to win Pakistani, Iraqi, and Iranian adherence to the "northern tier" con- cept, it has not tended to smooth relations with Yugoslavia and Greece, and has resulted in difficulties with many of the Arab states. More importantly, the government's insist- ence on forcing the pace of economic develop- ment has caused serious economic strains within the country and has resulted in serious disagreements with the US, the IBRD, and the OEEC which have advocated a more prudent course. It has also contributed to strains within the ruling Democrat Party. Christian minorities, historically a great prob- lem in Turkey, are no longer of major import- ance. There are some 300,000 Christians, of whom 130,000 are Greeks and 60,000 Armenians. There are about 76,000 Jews. The majority of the Christian and Jewish minorities live in the Istanbul area. There is no legal discrimination against members of the non-Moslem minority group. The Kurds, who number about two mil- lion in Turkey, constitute an ethnic and lin- guistic, though not a religious minority. Living in isolated areas of eastern and southeastern Turkey, the Kurds have not been effectively in- tegrated into the Turkish body politic. There is also a large element ? perhaps over four million ? of tribal and seminomadic groups who are suspect of having secret Shia Moslem sympathies and whose peculiar customs lead the majority of uneducated Sunni Moslem villagers to regard them with suspicion. II. POLITICAL SITUATION AND PROSPECTS 12. Turkey is politically dominated by the Democrat Party, an offshoot of the once all- powerful Republican People's Party (RPP) . The Democrats swept Turkey's first free parliamentary elections in 1950 and increased their majority in 1954. They hold 471 of the 541 seats in parliament and thus can pass legislation or even amend the constitution (which requires a two-thirds vote) without effective opposition. 13. Actual political power has been concen- trated in the hands of Prime Minister Adnan Menderes and a small group of close advisors. Menderes is a forceful leader who sometimes uses ruthless methods. He heads the Demo- crat Party organization and has been person- ally responsible for the formulation of most governmental policy and supporting legisla- tion. He has made full use of his control over the highly centralized administrative apparatus of the state, with its capabilities for reward and punishment, to keep his followers in line and the opposition off balance. The President of the Republic, Celal Bayar, has left active control of the party and govern- mental affairs to Menderes. Bayar was one of the founders of the Democrat Party; he participates actively in Turkish diplomatic maneuvers, maintains close contact with Menderes and other party leaders, and exer- cises considerable influence on the govern- ment. Nevertheless, he has been content as head of state to play the part of? an elder statesman. 14. Thus far the Democrat Party has retained a high degree of popular support. While Menderes' program of headlong economic de- velopment has begun to cause difficulties for most of the urban population, it has been of direct benefit to many others and has been especially welcome in the predominant rural sector of the economy, which has flourished under a system of high guaranteed prices for agricultural products and freedom from taxes on agricultural income. Turkey's increased prestige in world affairs has probably also enhanced the popularity of the Democrat Party. SECRET Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2013/08/07: CIA-RDP79R01012A007500030001-7 Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2013/08/07 CIA-RDP79R01012A007500030001-7 SECRET 15. Under these circumstances the opposition RPP has had little success in making a come- back. Although it polled 35 percent of the vote in 1954 and has two widely respected leaders in ex-President of the Republic Ismet Inonu and Kasim Gulek, the energetic secre- tary-general of the RPP, the party has failed to develop a positive program with which to challenge Menderes. It still suffers from the legacy of popular mistrust built up over 27 years of arbitrary rule. It has also been handicapped by its small representation in parliament (30 seats) and by the govern- ment's use of a severe press control law 2 and other legal devices to curb criticism. 16. Lesser opposition parties have also fared poorly. The Republican National Party, a basically conservative group long suspected as the vehicle of orthodox Moslem sentiment for a modification of the government's anti- religious attitude, holds only five parliamen- tary seats. The Peasant Party, whose plat- form tends to ape that of the Democrat Party, has none. Communism has never made sig- nificant headway in Turkey in the face of the basic popular suspicion of all things Russian and the government's strong security controls. Although the Turkish Communist Party has been outlawed, some limited Communist ac- tivity presumably goes on. The government's claim that the recent Istanbul and Izmir riots were instigated by the Communists is prob- ably greatly exaggerated. 17. Although the opposition has not improved its position in recent months, that of the Democrat Party and of Menderes in particular has suffered a decline. The government's harsh methods of silencing its critics have evoked protests from the more liberal and politically sophisticated, and the criticism which these methods have aroused in the US and other Western countries has created doubts about Menderes' prestige abroad. The government has been charged with financial 2 The press law, which authorizes legal action against anyone who directly or indirectly crit- icizes the government or its ministers, is notable for its provision that the truth of the statements involved does not constitute an admissable de- fense. irresponsibility and poor tactics in dealing with the US. In mid-1955 it succeeded in obtaining only $30 million of additional US aid instead of the $300 million US loan it had been counting on to check the accelerating inflation and overcome Turkey's worsening international payments position. Its inept handling of the September 1955 riots on the Cyprus issue was another blow to the govern- ment's prestige. It failed to order prompt intervention by the armed forces while dem- onstrations, probably initially authorized by the government, developed into widespread violence and looting. Moreover, Menderes' economic policies have produced inflationary strains which have created growing dissatis- faction, particularly among the urban popula- tion. Within the Democrat Party itself re- sentment has begun to appear over Menderes' arbitrary methods and over alleged financial profiteering by the then Deputy Prime Min- ister Zorlu and other favored officials. 18. The strains within the Democrat Party first came into the open at the party's October 1955 National Congress, when some of the more liberal elements raised demands for a revision of the harsh press law and indicated a general dissatisfaction with Menderes' high- handed methods. The immediate crisis was promptly resolved when Menderes expelled nine dissident deputies from the party, in- cluding the widely respected Fevzi Lutfi Karaosmanoglu and two other former cabinet ministers. Although an additional 10 depu- ties resigned in protest, Menderes was re- elected party president by an overwhelming majority. 19. A new and more serious crisis arose in late November. A caucus of Democrat deputies subjected the government to a barrage of criticism for financial mismanagement and irregularities. Menderes squeaked through with a narrow vote of "personal" confidence, but was forced to drop Zorlu and other key targets of criticism from the cabinet and to promise a more effective attack on the rising cost of living and other problems of economic management. On this basis, a reconstituted cabinet, pledged to undertake a tightening up of economic and financial policies, was SECRET Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2013/08/07 ,CIA-RDP79R01012A007500030001-7 Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2013/08/07: CIA-RDP79R01012A007500030001-7 SECRET 5 overwhelmingly approved by parliament in December 1955. Shortly thereafter, however, the deputies who had withdrawn from the Democrat Party ? now totalling 29 ? united to organize the Freedom Party. This group, which charges the government with forsaking pledges of constitutional and political reform, includes some fairly prominent Democrat Party figures, though to date it has not attracted a following of a size and nature to represent a real threat to the Democrats. Probable Developments 20. The immediate outlook is for a period of considerable political uncertainty because of the deterioration in Menderes' personal posi- tion, the incipient challenge to his party, and the politically unpalatable measures which will be necessary to check the current inflation. Despite the press law which will continue to dampen opposition criticism, at least through its present expiration date in March 1956, attacks on the government will be heightened. The economic crisis with its attendant politi- cal repercussions has been a severe blow to Prime Minister Menderes' prestige even with- in his own party. Moreover, many party members having publicly rebuked a leader so conspicuously intolerant of criticism, may feel they must continue to oppose Menderes for the sake of their own political survival. 21. Menderes remains a forceful political leader who still towers over his potential rivals and who will probably make energetic efforts to re-establish a firm political position. Should he succeed in extricating the govern- ment from its acute economic and financial difficulties, it is unlikely that his leadership ? would be seriously threatened, at least during the next year or two. On the other hand, the temerity of the Democrat deputies in directly challenging his position indicates a depth of feeling which will not easily be assuaged and probably marks a turning point in intraparty affairs. Under these circumstances, Men- deres' survival will depend on his ability to convince his party and the elite in the country that he is still in effective control of the situa- tion and that he will take the steps necessary to stave off economic crisis, assure continuing US support, and re-establish party harmony. If he does not take these steps, the Democrats would probably feel compelled to drop him lest they incur large-scale defections from their parliamentary strength. In such an event, President Bayar would probably assume a more active role in the government, though he appears unlikely to take over direct control himself. 22. The outlook for the Democrat Party over the next year or two is somewhat more favor- able. Despite its current difficulties, it still has a commanding parliamentary position and its popular acceptance and support in the countryside has only begun to decline. Its effectiveness as a going political organization will probably tend to discourage further sig- nificant defections from its parliamentary delegation. Moreover, it will probably con- tinue to have the prestige and influence of the president behind it. Although it is possible that the Democrats might split over the question of Menderes' future or the manage- ment of economic affairs, we believe it more likely that the party will remain united and retain control of the government at least up to the national elections of 1958. 23. Nevertheless, the basic trend appears to be toward a loosening of the Democrat Party's present grip on the country. Economic dis- content, in particular, will probably continue to provide the opposition with opportunities for exploitation no matter what course the government follows. The present dislocation cannot be overcome quickly and any compre- hensive corrective measures will antagonize some elements of the population. While the government may try to keep the opposition in check through further resort to authoritarian curbs, there will probably be increasing public and parliamentary resistance to the use of repressive measures. For example, Gulek and other RPP spokesmen are said to have de- liberately courted legal action against them- selves in order to dramatize the free speech issue. 24. A potential threat to the Democrat Party's ? position is posed by the newly formed Freedom Party. Should the Democrat Party's present leadership fail to satisfy rank-and-file de- SECRET Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2013/08/07: CIA-RDP79R01012A007500030001-7 Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2013/08/07: CIA-RDP79R01012A007500030001-7 SECRET mands, sizable defections to the Freedom Party may take place. There are unconfirmed and probably much exaggerated reports that the Freedom Party can already count on the support of 170 deputies.. To date, however, there is little firm information showing a marked swing to its side. 25. Underlying social strains may also have an adverse effect on the government in power. The violence of the September 1955 riots in Istanbul demonstrated the depth of social, economic, and religious antagonism towards the large and relatively well-to-do minorities in that city. Throughout the country there appears to be deep seated resentment of the inferior status accorded Islam under the Turkish Republic, even though both major parties remain firmly opposed to the injection of religion into politics. The Democrats have sought to ease the situation by removing previous curbs on the public practice of Islam. Since 1950, for example, the government has allowed the call to prayer to be given in Arabic, permitted a number of the devout to make the pilgrimage to Mecca, and even sub- sidized a number of small preacher schools. Nevertheless, some further revival of conser- vative or even fanatical religious sentiment appears possible. 26. Over the longer run additional stresses are likely to arise, since increasing industrial- ization, urbanization, and the spread of a money economy to the further reaches of the countryside are increasingly changing tradi- tional patterns of Turkish life. Within the cities, the labor movement, which is growing in size but so far has lacked experienced and determined leaders, is likely to make strong efforts to throw off the mantle of govern- mental supervision and establish the right to use strikes and other western collective bar- gaining techniques. In time, the Commu- nists may have some success in exploiting unrest among various elements of the urban population. 27. We consider it highly unlikely, however, that any major threat to the stability of the Turkish governmental structure will arise, at least within the next few years. Despite the presence of some concentrated minority 6 groups, Turkey has a generally homogeneous population with a marked sense of national unity. Semiauthoritarian patterns of gov- ernment are accepted as normal both by the bureaucracy and the masses of the people and would probably continue to be followed even in the event of greater political activity. The army, which represents the ultimate guardian of internal stability, has not been involved in politics and will probably continue to be a re- liable and effective instrument of control. The armed forces did not intervene promptly in the September 1955 riots, probably because of the absence of adequate orders. This was a source of embarrassment and concern to the government. It has been followed by a shake-up in army, gendarmerie, and police commands, together with the imposition of martial law for six months. Such a failure is unlikely to recur. III. ECONOMIC CONDITIONS AND PROSPECTS 28. Turkey is beginning to emerge from the economic stagnation which developed under the Ottomans. Despite Turkey's prewar efforts to build up state industries and the in- tensive programs for economic development which have been undertaken in recent years, the standard of living ? while substantially higher than that of most other Middle East- ern countries ? is still one of the lowest of any of the Western European countries. (The per capita gross national product in 1954 was $200, compared with $395 for Italy and $200 for Greece.) Lack of an adequate system of secondary roads to supplement the overbur- dened rail network isolates much of the coun- tryside from the urban money economy and tends to perpetuate the dependence of much of the population on primitive agriculture or herding. Until the postwar period, the econo- my was largely self-contained. However, while over the past decade the relation be- tween exports and GNP has remained fairly constant at about seven percent, the increas- ing dependence of the economy on imports is evidenced by a rise from 3.5 percent of GNP in 1946 to nine percent in 1953. Tobacco, minerals, dried fruits and, more recently, grains and cotton have been sizable exports. SECRET Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2013/08/07: CIA-RDP79R01012A007500030001-7 Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2013/08/07: CIA-RDP79R01012A007500030001-7 SECRET 29. Turkey has been engaged in a program of economic development since the 1930's. In the period before World War II it took the form largely of industrialization undertaken by the government. Since 1950, the govern- ment, while proceeding with industrial de- velopment, shifted emphasis to the rural sec- tor. Gross capital investment in four years rose from an estimated 1,100 million of Turk- ish lira 3 ($392 million) in 1950 to 2,600 mil- lion Turkish lira ($920 million) in 1953. In 1950 and subsequent years the private sector accounted for perhaps as much as one-half of the total investment. The rate of gross investment to the estimated gross national product in the four years was respectively 11 percent, 12 percent, 14 percent, and 15 per- cent. From the very outset the investment drive was made possible by the adoption of a liberal credit and financial policy that had potentially inflationary consequences. This was particularly true in the case of the agri- cultural development. Credit on liberal terms was made available to farmers for the pur- chase of tractors, seeds, etc. A price support program assuring markets at profitable prices for the expanding agricultural production meant increasing amounts of deficit financ- ing in order to cover the losses of TOPRAK, the government purchasing agency. Such losses increased as world market prices for grain fell in the post-Korean period without a corresponding fail in support prices. 30. Taking advantage of the approximately $600 million in various forms of US technical and economic aid made available through FY 1955, the Turkish government has initiated extensive rural and industrial development activities. A large-scale road building pro- gram has the dual purpose of opening up the hinterland and improving military communi- 3 Throughout this estimate conversions have been made at the official rate of exchange, which is 2.8 Turkish lira to the dollar. The free market rate in the past year has fluctuated between seven and ten lira per dollar. While the latter rates cannot be regarded as adequately reflecting purchasing power within the country, it should be noted that dollar amounts derived from con- version of lira are necessarily substantially over- stated. cations. New lands have been opened up to large-scale cultivation, notably in cotton. Mechanization of agriculture has been con- siderably accelerated during this period, as illustrated by the fact that by 1955 there were 42,000 tractors in the country, as against only 1,000 in 1948. Turkey has also, however, made important gains industrially, namely in improved coal and other mining operations, added electric power facilities, and expanded and improved railway, airport and port facili- ties, as well as modernized communications services. Iron and steel, metal working, cement, building materials, and chemical in- dustries have been established or expanded. Light industries, however, still predominate, among which food processing and textile manufacturing are the most important. While industrial activity has been increased and diversified in recent years, manufactur- ing still plays a comparatively small role in Turkey. 31. These activities have resulted in substan- tial productive gains. As Table I indicates, GNP rose in the four year period 1950 through 1953 by approximately 40 percent. GNP de- clined in 1954 due to that year's severe crop failure, but still represented a rise of 30 per- cent over the 1948 level. While firm esti- mates of 1955 GNP are not yet available, in- dications are that production has resumed its upward trend. The most notable gains have been in agriculture. In particular, grain pro- duction, which totalled 7.7 million tons in 1950 (or slightly higher than the prewar average) rose to 14.8 million tons ? or nearly double that amount ? in the bumper year 1953, thus making Turkey for the first time TABLE I ESTIMATED GROSS NATIONAL PRODUCT Constant (1948) Prices Per Capita Turkish Lira Dollars* Turkish Lira Dollars* (millions of) (millions of) 1950 10,400 3,714 496 177 1951 11,988 4,279 556 202 1952 13,023 4,651 588 210 1953 14,467 5,167 635 227 1954 13,100 4,679 559 200 * See footnote to paragraph 29. SECRET Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2013/08/07: CIA-RDP79R01012A007500030001-7 Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2013/08/07: CIA-RDP79R01012A007500030001-7 SECRET a substantial grain exporter. Although the poor 1954 wheat crop failed to meet even domestic needs, the 1955 crop ? while some- what better ? did not provide a surplus for export. 32. Despite and in some considerable measure because of these achievements, some major problems have arisen: a. The government faces serious balance of payments difficulties. Even a relatively modest development program would have gen- erated requirements for capital equipment, petroleum products, and other items from abroad which could not have been met out of current annual foreign exchange earnings. However, the Turks have embarked on a very ambitious and poorly planned program and, even though much of the imports required for their investment program have been met through US grant aid, they have allowed their foreign obligations to pile up at a far higher rate than their repayment capabilities would justify. This has been particularly true be- cause a considerable portion of investment has been financed through short-term foreign borrowing. A large part of these debts will be falling due this year and the next. In 1956 existing obligations including arrears call for repayments of about $172 million and in 1957 of about $144 million. With its gold reserves already almost entirely pledged and its un- committed foreign exchange holdings negli- gible, the resources for meeting these obliga- tions are not in sight. b. Serious inflationary strains have arisen. Heavy development expenditures, coupled with the maintenance of a large defense es- tablishment, have created inflationary pres- sures on the economy which the government has not only been reluctant to deal with but has actually stimulated through its farm price support and easy credit policies. The situation was aggravated in 1954, when the rate of investment was maintained despite a major crop shortfall, thus contributing to a forced reduction in the importation of needed industrial raw materials, spare parts, and petroleum. Since 1953, the urban cost of living has risen by about 25 percent without substantial increases in wages and salaries 8 TABLE II Turkish Balance of Payments (In millions of TL)* July 1, 1952 June 30, 1953 July 1, 1953 June 30, 1954 July 1, 1954 June 30, 1955 Operations on Current Account Imports 1,495 1,483 1,333 Exports 1,083 990 906 ?412 ?493 ?427 Invisibles, net ?10 ?28.4 ?42 Other +8.8 +72 Current balance ?422 ?512.6 ?396 Operations on Capital Account Capital movements (private) ?26.6 +24.9 +155 Public debt repayment ?18.8 ?83.3 ?93 IBRD +17.5 +38.2 +38 ICA (FOA) +209.4 +126.8 +163 Export-import +2.1 +2.2 Supplier credits +26.0 +80.8 IMF credit +56 Arrears +104.9 +384.1 Other +110 ?52.0 +179** Net errors & omissions ?2.5 ?55.1 ?46 +422 +512.6 +396 * See footnote to paragraph 29. ** Principally credits under trade agreements. except for certain categories of skilled labor, and even the relatively better situated rural population has begun to grumble over short- ages and high prices for such necessities as sugar, nails, and spare parts for farm equip- ment. The government's refusal to devalue the lira and its maintenance of high agricul- tural price supports have also tended to price Turkish products out of the world market, thus adding to Turkey's balance of pay- ments difficulties. Turkey's growing resort to bilateral trade with the Bloc, which now accounts for about 20 to 25 percent of Turkey's total foreign trade, as compared to seven to eight percent in 1950, represents an effort to get around this problem. It is prov- ing costly in terms of quality of goods received and possibly also with respect to price. SECRET Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2013/08/07: 'CIA-RDP79R01012A007500030001-7 Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2013/08/07: CIA-RDP79R01012A007500030001-7 SECRET 9 TABLE III Turkish Foreign Debt ? February 1956 Total Government long term debt Government short term debt Supplier credit Millions of dollars* Millions of Turkish lira*** 509 141** 1,424 394 (a) public sector 205 574 (b) private sector 53 147 Commercial credit Debts to oil companies 49 137 Arrears 130 365 TOTAL 1,087 3,041 Schedule of Payments Required Under Terms of Existing Foreign Indebtedness 1956 1957 1958 1959 1960 Mil $ Mil TL Mil $ Mil TL Mil $ Mil TL Mil $ Mil TL Mil $ Mil TL Government long term debt 41 116 38 106 35 97 36 101 34 94 Government short term debt Supplier credit (a) private 23 65 16 44 9 26 3 7 1 4 (b) public 41 115 49 137 40 113 35 97 24 68 Commercial credit Debts to oil companies 14 40 Arrears 53 149 41 116 18 50 18 50 _ TOTAL 172 485 144 403 102 286 92 255 59 166 * These foreign debts, while stated in dollars, represent sterling, franc and other foreign obligations as well as dollar indebtedness. ** There is no present scheduling of repayment to foreign banks of these debts, most of which ($114 mil- lion) is secured by gold, leaving only about $30 million of Turkish gold holdings uncommitted. *** The lira value of this debt is understated, since it is arrived at on the basis of the official exchange rate of 2.8 TL=$1.00. See footnote to paragraph 29. SECRET Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2013/08/07: CIA-RDP79R01012A007500030001-7 Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2013/08/07: CIA-RDP79R01012A007500030001-7 SECRET 10 c. Finally, there has been considerable waste and poor coordination in the program. Projects have been scheduled, sometimes for political reasons, without due regard for their place in the over-all development of the econo- my and without proper anticipation of bottle- necks. There has been much diversion of capital to inventory speculation and to rela- tively unproductive building construction. In some instances the Turks have made heavier initial investments than were im- mediately necessary, apparently in order to obtain additional leverage in aid negotiations with the US. 33. Until recently Turkey paid little attention to the increasing concern voiced by the US, the IBRD, the OEEC, and various other in- terested parties and advisers. Menderes, partially under the influence of former Depu- ty Prime Minister Zorlu, seems to have be- lieved that his economic troubles were tem- porary ones which would disappear if the country obtained, as he anticipated, large additional amounts of assistance from the US and held on long enough for the various in- vestment schemes to pay off. He was almost certainly convinced that in the last analysis the US would feel compelled to provide what- ever emergency financial support its ally Turkey needed. 34. The events of recent months, however, have forced Menderes to shift to a more real- istic approach to his economic problems. During the fall of 1955 the government tight- ened import controls, raised the bank rate on loans, and paid off some commercial debts. Moreover, following the shake-up in the gov- ernment's, economic high command which took place as the result of the December 1955 cabinet crisis, the new Minister of Finance has come forward with a program,4 which if car- ried out would provide a substantial measure 4 The proposed measures include: (a) confining new investment activity largely to completion of projects presently under way; (b) limiting further financing of state enterprises through the Central Bank; (c) limiting agricultural credit to present levels and controlling other bank credit; (d) instituting a priority schedule on imports; and (e) balancing the government budget. of stabilization for some months. Menderes has now publicly endorsed this program, and has reassured the Randall mission, which visited Turkey in February 1956 under joint Turkish-US sponsorship, that he is determined to follow through with it. The Economic Outlook 35. We believe that Turkey's long-range eco- nomic prospects are fundamentally good. The country possesses sufficient undeveloped land, fuel, and mineral resources to support a sub- stantially greater population than its present 24 million. Its leadership is energetic. Pro- duction has already begun to increase at a rate which not only exceeds that of popula- tion growth, but is yielding a moderate sur- plus available for investment. 36. Nevertheless, continuing economic de- velopment will be a long-drawn-out process requiring a higher sustained rate of imports, over a period of years, than Turkey will be able to pay for from its current foreign ex- change earnings. Although Turkey may be able to finance some portion of its future im- port requirements through long-term loans from non-US sources, the rate of development will be greatly slowed without continued sub- stantial US grant or loan aid. Both the sta- bility of the Turkish economy and its credit worthiness will be adversely affected by its vulnerability to crop failure and its depend- ence on a very small number of products for the bulk of its export earnings. 37. Incident to such development there will be internal problems to be faced as well. In- creasing population, and demand for improve- ment in the standard of living on the part of the populace, as well as the defense burden, will be competing with the development pro- gram for the limited available domestic re- sources. The success of the development pro- gram over the longer run will require some limitation on the rate of increase in the stand- ard of living of the people. 38. Turkey's immediate economic and finan- cial difficulties are likely to present a continu- ing threat of instability over the months to come. Turkish leaders now appear sufficient- ly concerned to move toward putting their SECRET Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2013/08/07: CIA-RDP79R01012A007500030001-7 Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2013/08/07: CIA-RDP79R01012A007500030001-7 SECRET 11 TABLE IV TURKISH GOVERNMENT BUDGET* Revenues 1953-1954 1954-1955 1955-1956 (Est.) Millions of TL Millions of dollars** Millions of TL Millions of dollars** Millions of TL Millions of dollars** Taxes 2,005 716 2,274 812 2,912 1,040 Self-financing government economic enterprises 116 41 109 38 268 96 ? 2,121 2,383 3,180 1,136 Total revenues 757 850 Expenditures. Capital outlay (including state enterprises) 852 305 1,009 , 360 1,660 592 Current expenditures 1,018 364 1,283 458 1,424 509 Defense, including counterpart funds 718 256 827 295 931 333 ? -- 2,588 3,119 4,015 1,434 Total expenditures 925 1,113 Total Deficit 467 168 736 263 835 298 Less counterpart funds 131 47 206 74 200 71 ? ? 336 530 635 227 Deficit after counterpart 121 189 Defense expenditures as percentage of total budget expenditures 28% 27% 23% Defense expenditures as percentage of GNP 4.3% 4.4% 4.5% 50X1 ** See footnote to paragraph 29. SECRET I Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2013/08/07: 1CIA-RDP79R01012A007500030001-7 Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2013/08/07: CIA-RDP79R01012A007500030001-7 SECRET 12 economic and financial affairs in order. If the US is prepared to assist in meeting Tur- key's most pressing foreign exchange obliga- tions, the Turks can probably make progress toward establishing their economy on a sounder basis. However, even the present stabilization program is likely to engender re- sistances which may make the government reluctant to follow through with the requisite firmness. Sooner or later, the government will also have to face up to the need to devalue its currency if the stabilization process is to be effectively carried out. Moreover, increas- ing taxation will be needed so as to check in- flationary trends and mobilize funds for the internal component of the government's in- vestment program. 39. Turkey will continue to be susceptible to Soviet economic offers, particularly if a re- duction in US aid appears to be in prospect. With its credit exhausted and most of its products priced too high to compete in West- ern markets, Turkey has already turned in- creasingly to barter deals with the Bloc. Im- ports from the Bloc have risen from eight percent of the total in 1950 to 19.6 percent in the first half of 1955, and export percent- ages have similarly risen from seven percent to 26.5 percent in the same period. If the stabilization program is successful and Turk- ish goods again become competitive in West- ern markets, the Turks, who are probably skeptical of extensive dealings with the Bloc, may attempt to reverse the current trend. On the other hand, the increasing availability within the Bloc of manufactured goods for export, and the fact that Turkish wheat and cotton may be difficult to dispose of in West- ern markets, might make trade between Turkey and the Bloc mutually advantageous and attractive. The Turkish government's preoccupation with rapid economic develop- ment and its need for imported materials to carry the program out might even induce the Turks to accept some Soviet aid, though they would almost certainly not do so at the risk of losing US financial support. IV. MILITARY AFFAIRS 40. Turkey continues to lay great stress on the development and maintenance of strong military defenses. Virtually all of its mili- tary establishment of approximately half a million men is committed to NATO. Much of the cost for the training and equipment, as well as some of the cost of supporting these forces, has been borne by the US. US eco- nomic aid has also indirectly contributed to the maintenance of Turkey's armed forces. However, the Turks have themselves assumed an extremely heavy defense burden. Over the last five years defense expenditures have accounted for roughly 43 percent of the gov- ernment budget ? approximately 28 percent in direct appropriations to the defense estab- lishment and another 15 percent in various forms of indirect support, such as construc- tion of roads and facilities. Current defense expenditures represent about 4.5 percent of estimated GNP. 41. The composition of the Turkish armed forces is as follows: a. The Turkish Army, with a personnel strength of about 430,000, consists of three field armies and eight corps. Major units in- clude 13 infantry divisions, 3 mountain divi- sions, 3 cavalry divisions, 1 armored division, and 4 armored brigades. Under the Turkish system, all men undergo military training and are members of the reserve up to age 46, thus giving Turkey a mobilization capability of an additional 800,000 men. However, equipment for reserves is largely lacking. The 40,000-man Gendarmerie and the 10,000 Customs Guards are also given basic army training. b. The Turkish Air Force consists of ap- proximately 30,000 officers and men equipped with about 400 mission aircraft, including 260 jet fighter bombers and 70 jet fighter inter- ceptors. Most of the aircraft are committed to NATO and are organized into 14 fighter bomber squadrons, 1 fighter interceptor squadron, and 1 reconnaissance squadron. Four additional squadrons of about 40 trans- port mission aircraft are not assigned to NATO. c. The Turkish Navy, whose personnel strength is expected to be raised from 24,000 to 33,000, possesses 1 old battleship, 10 de- SECRET Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2013/08/07: CIA-RDP79R01012A007500030001-7 Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2013/08/07: CIA-RDP79R01012A007500030001-7 SECRET 13 stroyers, 12 submarines, 8 subchasers, 39 minelayers and minesweepers, plus auxiliary vessels and service craft. 42. The Turkish soldier is deeply patriotic, well-disciplined, and physically tough. More- over, the extensive re-equipment and training programs undertaken under US supervision have resulted in transforming the poorly equipped and poorly organized military estab- lishment of 1947, with its ignorance of modern tactics and techniques, into a considerably more up-to-date fighting force. 43. Much, however, still remains to be done. Even NATO-assigned tactical units in the army are on the average only slightly over 50 percent equipped, and Turkey remains de- pendent on outside aid for most logistical support. Though the ground forces are in- creasingly effective, they continue to be hindered by such factors as a rigidly central- ized and bureaucratic higher staff control, some lack of individual initiative on the part of junior officers and noncoms, and inade- quate unit and combined arms training. Another fundamental difficulty, which is be- ing faced, is that of developing and retaining sufficient numbers of competent junior offi- cers, NCO's, and technicians. 44. The air force has shown a very slow in- crease in combat readiness and effectiveness over the past two years and is still only par- tially trained. Under present aid programs the 16 NATO committed squadrons will, by 1958, be sufficiently equipped and trained to constitute a combat ready force. Ten major airfields including three international civil fields now exist, six of which are to be brought up to SHAPE standards by the end of 1956. About eight additional NATO airfields are planned. As yet, Turkish air defense capa- bilities are very inadequate because of an ex- tremely weak air control and warning radar net; additionally Turkey lacks an adequately trained jet interceptor fighter force. 45. The Turkish Navy is the least effective among those of the Mediterranean NATO powers. Though it is a regular participant in NATO exercises, none of its units has been definitely assigned to NATO forces. It is in- capable of denying access to the Straits to Soviet naval forces in time of war, and could probably carry out no more than minor harassing action against Soviet amphibious landings on the Black Sea coast. However, its seven ex-US submarines, given adequate logistical support, could harass Soviet supply lines in the Black Sea. 46. At present, Turkey could probably hold its position in Thrace and the Straits indefinitely -against an attack by Bulgaria alone. However, unless promptly reinforced it would soon lose this area to a determined Soviet-Satellite at- tack. Without allied reinforcements, Turkey could do no more than delay a major Soviet land offensive from the east. Turkey's ability to shift defensive forces from one front to another or to engage in or support offensive moves is limited by lack of transport equip- ment in the field army and by the limited size and the high vulnerability of its internal rail and road network. Turkey is almost entirely incapable of providing its own ammu- ? nition, fuel, and materiel replacement require- ments. In all cases, the ability of the Turks to undertake effective and sustained combat operations would be contingent on substantial outside logistic support. Future Developments 47. The future of the Turkish armed forces will depend primarily on the extent of US support. Turkish leaders, with general pop- ular approval, are anxious to complete the modernization of the present Turkish military establishment, and would probably be willing to undertake a further expansion if the addi- tional equipment and direct forces support could be made available. However, the Turks are already overextended militarily in terms of their economic capabilities and, despite Turkey's potential for economic development, they will probably continue to be so for an indefinite period. Turkey will be unable to defray the cost of acquiring additional equip- ment, and probably would not be able to meet even replacement and maintenance costs by itself. 48. A continuation of substantial US military aid would result in a slow but steady increase in Turkish military capabilities. However, SECRET Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2013/08/07: CIA-RDP79R01012A007500030001-7 Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2013/08/07: CIA-RDP79R01012A007500030001-7 . SECRET maintenance of these capabilities after exist- ing equipment deficiencies were overcome would still require substantial continuing sup- port, in view of Turkey's probable inability to foot the bill. Turkey has indicated its will- ingness to contribute forces to the defense of the Zagros Mountain line in Iran. Since virtually all of Turkey's forces are committed to the defense of its own territory under NATO plans, however, it is highly unlikely that forces could be made available for em- ployment outside Turkish territory without an expansion of Turkey's present troop strength. 49. Turkey would probably attempt to main- tain its present inadequately equipped mili- tary establishment despite a cutback in US military aid. However, the Turks would prob- ably be unable to do so unless direct forces support were continued. A cutback in eco- nomic assistance would be likely to induce the Turkish government to make some military reductions rather than cut back on the eco- nomic development program. In view of the great emphasis which both the Turkish gov- ernment and the Turkish people have placed on the military establishment, a major reduc- tion in US military aid would have a pro- foundly disillusioning effect. V. FOREIGN AFFAIRS 50. Turkish foreign policy is marked by a fierce determination to preserve Turkey's ter- ritorial integrity and independence, a strong belief in the efficacy of firmness backed by strength in international affairs, and a grow- ing sense of self-confidence and pride in Tur- key's achievements. The Turks consider themselves Europeans rather than Middle Easterners and remain basically contemp- tuous of their weak and relatively backward neighbors in Iran and the Arab states. Al- though Turkey has sought to remain on good terms with Greece, some vestiges of past Greek-Turkish animosity existed even before the recent flare-up of Greek-Turkish feelings over Cyprus. 51. During the earlier years of the republic, Turkey sought to avoid involvement in inter- national power politics, while attempting to 14 build up economic self-sufficiency. It formed early ties with the then equally new and gen- erally ostracized Soviet government in Russia, and maintained close economic relations with the USSR up through the 1930's. Turkey remained neutral for most of World War II, and only entered the war in 1945 so as to become eligible for UN membership. 52. Following World War II, however, the basic direction of Turkish foreign policy shifted drastically to strong support of collec- tive security, both in and out of the UN. Confronted once again with the threat of Rus- sian expansionism, which for more than 300 years has posed a recurrent danger to Tur- key's position in the Straits and Anatolia, the Turks have since concentrated on building up alliances in the West. Their initial pre- occupation was with solidifying their rela- tionship with the US, and with being accepted as a NATO partner. Although Turkey went along with the ill-fated Middle East Command proposals, it initially showed little real inter- est in Middle East defense problems. Having achieved the basic goal of NATO membership in 1952, Turkey has since felt free to take an increasingly active role in regional affairs. It made strenuous efforts to draw Yugoslavia into a firm defensive alliance with itself and Greece under the Balkan Pact of 1953 and the subsequent Bled Agreement of 1954. More recently, Turkey has conducted an energetic diplomatic offensive on behalf of the plan for a Middle East defense grouping. 53. These moves, together with such steps as Turkey's decision to contribute forces to the Korean campaign, probably reflected a desire to demonstrate Turkey's solidarity with the US and its other Western allies, and thereby to strengthen Turkey's claims to continued US military and economic aid. The Turkish- Pakistani Pact of 1954, under which the "northern tier" scheme first began to take form, was undertaken in direct response to US suggestions. 54. However, Turkey has followed through with these policies with an energy which also appears to reflect an increasing sense of its importance and responsibility as a world power and its growing concern for Turkey's SECRET Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2013/08/07: CIA-RDP79R01012A007500030001-7 Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2013/08/07: CIA-RDP79R01012A007500030001-7 SECRET regional interests and prestige. The vigorous and skillful diplomacy of Premier Menderes and President Bayar played an important role in Iraq's decision to sign the Baghdad Pact in 1955 and in Iran's subsequent decision to adhere. Similar tactics have been applied, thus far unsuccessfully, to Jordan, Lebanon, and Syria. Although Turkey is one of the few Middle East states to recognize Israel, it has recently acted more coolly in its relations with that country in order to improve its standing in the Arab world. Turkish diplo- macy and propaganda have attacked Egypt and Saudi Arabia for their opposition to the Baghdad Pact. In its efforts to influence the situation in Syria, Turkey has backed up its strong diplomatic pressures with a certain amount of saber-rattling. Although the Turks do not appear to have seriously considered armed intervention in Syria, they have dis- played continuing interest in the possibility of a coup by antileftist and anti-Egyptian elements. 55. These echoes of the Ottoman tradition in Turkey's recent Middle East diplomacy have roused some fears, which thus far appear to be unfounded, among the Arabs that Turkey has irridentist ambitions. While Turkey's new involvement in Middle Eastern affairs may in time generate an interest in reassert- ing Turkish political leadership over the Arab states, there is no indication of a desire to expand Turkish territory to include non- Turkish peoples. 56. Turkey, during the past year, has opposed Cypriot and Greek demands for the union of Cyprus with Greece, sometimes with such vigor as to obstruct British offers to com- promise the issues. Turkey's opposition is based on a desire to protect the Turkish minority (constituting about 18 percent of the island's population and supported by a vocif- erous pressure group on the mainland) , as well as on the conviction that Cyprus' stra- tegic location requires that it be kept in safer hands than those of the Greeks. While de- mands for the return of Cyprus to Turkey have appeared frequently in the Turkish press, Turkey has demonstrated no real desire to annex the island and would be content with a continuation of UK control there. 15 Future Developments 57. The main lines of Turkish foreign policy will probably remain substantially unchanged for the foreseeable future, regardless of inter- nal political developments. Conciliatory ges- tures by the USSR, of which the most notable was the withdrawal in 1953 of claims to the Straits and to Turkey's eastern provinces of Kars and Ardahan, have not dissipated Tur- key's underlying conviction that Russian expansionism is a primary, and enduring threat to its territorial integrity and security. Recent Soviet overtures aimed at improving relations with Turkey have been politely but firmly rebuffed. The Bloc will probably con- tinue its efforts to develop closer relations with Turkey. However, even if there should be a prolonged drift toward a de-emphasis of mili- tary alliances and of sharp divisions between the Soviet Bloc and the West, Turkey will probably continue to be a strong advocate of military preparedness against the Bloc and will continue to look to NATO ? and in the last anaylsis to the US ? as a source of sup- port. The Turks would almost certainly react firmly to any renewal of Soviet pressures against them. 58. Although the Turks have presumably given up hope, at least for the present, of obtaining effective military cooperation from Yugoslavia, they will probably go along with Greek efforts to keep the framework of the Balkan Alliance intact. In any event, Turkey will make sincere, if not always adroit, efforts to heal the breach with Greece which was brought about by the Istanbul and Izmir riots. Turkey was deeply disturbed by the recent refusal of the Greeks to participate in NATO- scheduled joint military exercises and has taken a number of steps to placate Greece. Although the pattern of Greek-Turkish rela- tions so carefully built up over the last 30 years has been severely shaken as a result of the riots, both governments now appear de- sirous of restoring a greater measure of cooperation. 59. Turkey will almost certainly continue its efforts to combat anti-Western, pro-Commu- nist influences in the Middle East, most specifically through support of the Baghdad SECRET Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2013/08/07: 'CIA-RDP79R01012A007500030001-7 Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2013/08/07: CIA-RDP79R01012A007500030001-7 SECRET Pact. The Turks are concerned about the possibility of Soviet political, economic, and eventual military penetration of the area. In any event, Turkey is too deeply committed to the "northern tier" concept to withdraw gracefully without loss of prestige. The Turks are likely to remain particularly concerned about Syria and may make further efforts, alone or in cooperation with Iraq, to promote the fall of the present government. 60. The ultimate extent of Turkish efforts in the Middle East, however, will depend largely on the attitude of the US, whose diplomatic and military support Turkey recognizes as vital. Turkey will probably put strong pres- sure on the US to give greater support to the Baghdad Pact. It may deliberately under- take a more forward policy of its own in the hope of forcing the US's hand. Should sub- stantially greater US support not be forth- coming, however, it is likely that Turkey would eventually give up active efforts to pro- mote the pact organization. 61. Turkey's relations with its European allies are likely to be subject to various political and economic strains over the next few years. Turkish inflexibility will probably continue to contribute to the inherent difficulties in the Cyprus problem, though the Turks may even- tually be persuaded to accept Cypriot self- determination on the basis of special provi- sion for the rights of the Turkish ethnic minority and continued UK or NATO control of military bases on the island. Turkish Relations With the US 62. The main incentives to Turkish coopera- tion with the US will probably remain for the foreseeable future. Turkey will continue to 16 regard the US as a necessary ally against the threat of Soviet-Communist expansionism and will wish to support the US in its efforts to maintain a strong free world position. Bar- ring a drastic shift in US attitudes and poli- cies toward Turkey, the Turks will also value the friendship of the US because of their de- pendence on the US for further military and economic aid. 63. Nevertheless, relations between the US and Turkey are likely to be somewhat less close and harmonious than in the past. Tur- key entered into its postwar partnership with the US with a considerable degree of enthu- siasm and, in fact, still works closely and cordially with the US on most foreign and de- fense policy matters. However, with the pas- sage of time and the progressive growth of Turkey's pride in its accomplishments and ' confidence in its own judgments, various ten- sions have begun to arise. 64. Although US-Turkish friction will prob- ably abate as a result of Turkey's recent moves to stabilize its economy, Turkish captiousness and irritability toward the US are not likely to be reduced for an extended period. The Turks, who have exerted themselves to ex- pand the Baghdad Pact, will feel let down unless the US gives more support to the Pact, and further differences may arise over the Cyprus issue. Although the Turks may prove willing to accept a program of more orderly and rational development, disagreement re- garding the level of aid will continue. Never- theless, the mutual interests linking Turkey and the US are sufficiently important virtu- ally to insure continued cooperation on major international issues. SECRET Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2013/08/07: CIA-RDP79R01012A007500030001-7 Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2013/08/07: CIA-RDP79R01012A007500030001-7 ADRIATIC SEA ari ITALY 25 13.'064 Ruse ? 30 ?Constanta Sevastopol 35 Crimea Stalin Tuapse NOTE: Only selected railroads and roads are shown. ? Brindisi Lecce Vlon BLACK SEA Grozn Makhachkala inebolu Sinop fekirdag SEA ON Af A HAJAR. Zongulda tSie Batumi Golcuk Trabzon Balikesir Mita ye Krasnovodsk TURKEY in the Middle East Broad-gauge railroad + Standard-gauge railroad Narrow-gauge railroad Main motor road Sand Salt waste A n Airfield (class lot ID t Principal naval base ? Oilfield ? Oil refinery - Oil pipeline SECRET Scale 1:10,000,000 0 100 200 ?40? STATUTE MILES 0 100 200 300 400 1--j KILOMETERS Erzincan chev n :PA Aihkhabad Astara Konya Eregli Feth R6dhos Gazi tep Diyarbaki To Bandar-e Shah N... Meshed, Iraklion Crete-4 Alexand Aleppo Shahrild Irbil I Litt% Latakia Baniya SYRIA Dayr az Zaw engasi Tobruk Cyprus (U. K.) Trip LEBANON Beiru Sidon Al Hadithah Gap:With-ye drvddA. ? \.PAgs ermenshah, IffiCtIEH.VE NAMAK Ka`silV Agedabia aghdad ? ? Chill' ISRAE Tel Aviv DARYACHEH-YE Si:STAN L? ? hat; Karbalac Kawait Mina al Ahmadi rt) v?P cf> C, ??? '1 NEUT'RAL ZONE Asyelt Bushire Hyderabad Karachi Ras Tenure A terrain diagram or this scale ion generalized pictorial representation of the distribution and relation relief of the several types of londfarms. Mechanical limitations of technique preclude illustration of euery moun- tain, valley, and river. The international boundaries shown on this map do not necessarily correspond in all cases to the boundaries recog- nized by the U. S. Government. AHREIN Bahr adar IONAN) Rajkot Ad Dawbah Umm Said ARABIAN SEA CAT OMAN 7PKochn Diu PORT.) Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2013/08/07: CIA-RDP79R01012A007500030001-7 Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2013/08/07: CIA-RDP79R01012A007500030001-7 CONFIDENTIAL SECRET SECRET CONFIDENT/AL Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2013/08/07: CIA-RDP79R01012A007500030001-7