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2/15/1948 - Istanbul: General Conditions by Richard D. Robinson

RDR I Robert College NOT FOR PUBLICATION Istanbul Turkey February Walter S Rogers Institute Current Iorld Affairs Fifth Avenue New York City Dear Mr Rogers These initial letters afraid rather superficial possibly radical modification particularly leave istanbul Anatolia coming sunaer difficulty I sides judge thing Turkish I cosmopolitan Istanbul definitely typical Turkey eneral On score interesting example ninety representatives Democratic Party minority opposition dominant People Party ational Assembly sixty Of In other words effective political currents apparently quite different those prevailing Turkey possible exception Izmir which Demo cratic Party stronghold One xplanation Istanbul essentially commercial center whereas Turkey predominantly agricultural The picture country versus versa Further minority racial groups exception Kurds Arabs confined Istanbul environs European Turkey This colors picture Istanbul rather bitter undertone On every hears hostile criticism directed toward In Government these minorities Not Istanbul Turks however particularly business share hostility varying degrees Nevertheless probably among vocal voicing criticism those minority groups predominantly Armenian Greek Jew Western Christian To casual tourist Istanbul today presents picture bustling thinly veneer modernity congested beyond recall The population I meteorically during years population generally estimated upwards million This congestion effect driving living abnormally within The current blaclsarket ratio Turkish U S dollars O contrasted legal TR liras dollar The black market ratio risen liras present quotation since October ratio still trending upwards However actual purchasing power Istanbul probably somewhat indicated legal In other words TL Istanbul purchase gener speaking O0 would purchase United States This makes those fortunate dollar incomes On other scale local wages average earner Istanbul barely existence I close Turkish Creek friend impossible Turkish citizen secure permission imatolia A Turkish Armenian friend tells thing reference It impression situation eased within score I statistical study typical suffice moment A responsible English speaking secretary Out ZOO TL approxi ReGistrar Robert College TL month mately third deducted called Turkish income leaving about TL takehome This particular dependent mother On other Beth R I impossible alone shelter clothe anythin about TL month living extremely modest level Obviously allowance should different eating habits efficient preparation native foods situation would impossible Furthermore apparently considered fairly decent A recent Istanbul Chamber Commerce study incidentally places minimum living family three TL month There effort overnment control prices attempt largely abortive For example there control rents within necessary control light competition livin quarters arisin congestion Upon arrival October experience which I least unusual Durin quest apartment directed modern downtownetabliheutihichcnciexitedeerequit impressedth central heatin convenientplbin rarity dsatdto discuss learned legal ceilingsa TL month large entire demanded advance additional TL month In grand total wasdndedasofthatmoment Bycollectingthissinadnce theresno which fortate place could force ldlord adhere ceiling goverent order stold local U Consulate cials appeal togoveent officialswouldbe useless Itssplyte orleaveit AsforOurpa wechosetoleaveit dwearenowliving rooms little Greek village Bojiy situated about north ofIstanhulproperontheEuropeansideoftheBosporus Weylackmodeplb central heating buteke least inpart aifioent oftStairsandoftheatolianhillsbeyondandwiththepleasantness My first impression Turkish economy completely kilter F ctors which shhuld geared anothe One explanation found large segment workinE population employed govern monopoles Tekel other governme enterprises offices wages which ovennuent scales bearing little relation livin which nature things cannot reister effect collective ainin Wa therefore determined supply Another factor large government monopolies In interview goveraent monopoly official estimated Government owned enterprises responsible approx mately business industrial activity other agriculture Turkey Government monopoli include steel shipping loads stevedoring tobacco liquor powder exploaive matche gasoline kerosene insurance opium office telegraph telephone mlaria syphilis playin cards cigarette lighters In addition there other large government owned enterprises declared monopolies For instance woolen extile field government mills against which privately RDR I enterprises setting general price level price level artificially determined bearin direct relationship potential supply demand ieither prices adjusted inflationary forces Rather maximum gvernment income appears price formula production schedules these government owned concerns Still another factor equilibrated economy glaring inequities inherent present income which bears ncidental relatio nship income In later letter I forth details considerable interest significance Another element which seems considerable import process throwing economic gears Turkey effect these government owned enterprises discouraging private initi ative interrupting private capita utilizing unfair business practices competition private enterprise point score transit system Istanbul where icipal private lines operate competition A short municipal government placed ceilings fares charged private lines municipal buses exempted At moment owntown Istanbul village instance municipal kurus ceiling It would obvious attempt drive private lines business thereby increasing public revenues A further point which indicates economic unbalance Turkey establishment these government enterprises unsound economic basis simply because competition profit among factors their planning Thus these enterprises often supported special legislation taxation thereby making impossiblefor competition private enterprise exist organize sound economics There final factor which should mentioned connection namely position aricultural production I informed approximately Turkey under culivation Of balance itself cultivation forestlan uncultivated meadows Given adequate transportation better organized markets encouragement expor trade there little doubt Turkish production could increased Because nothing supply demandor products exist absence these conditions general prices driven naturally Foreign trade transactions carefully watched controlled primary motives course being conservation dollar resources prevention goods needed Turkey leaving country Upon entering Turkey newcomer asked foreign currency possession The currency carefully listed country brought unless augments later importation foreign credits through Bank Turkey iwhich merely collects Turkish Frankly admitted government monopoly official For further details refer Max eston Thornburg Turkey Aid Fortune Mgazine November This article apparentYy endorsed wholeheartedly great number Istanbul businessmen RDRI legal exchange henever parcel arrives outside Turkey recipient certify currency credit country purchase It illegal furthermore import export Turkish Government permission theoretically needed expenditure foreign credits Turkish citizens Since foreign credits available commercial purposes particularly dollars extremely limited imports level At I local businessmen little effort being voted toward building significant export trade dividual businessmen government conSrol private capital initiative discouraged export import field Furthermore there seems little effort build exportable surplus products Finally I discern scious efforts attract tourist dollars This latter perhaps understandable light suspicions Turkish Government towards foreigners Spies saboteurs provocateurs feared However moment Americans exempt general suspicion least effect subject foreign credit I should mention insignificant blackmarket dollar credits Istanbul being American business firms individuals merely transferring funds account another States transferring Early Turkish press carried reports reputedly U S sources effect private Turkish citizens total million American accounts again amount Turkish Aid Program True story created something flurry locally cited reasons Turkey turned tentatively under Marshall Plan At Istanbul press blamin government having mitred report Nation Conference Paris which painted rather optimis economic picture Turkey It report contributing cause inclusion Turkey projected European Recovery Program As result there reported taking place Ankara great public washing hands report Paris likelihood accurateone At least basis superficial observation hearsay Tu would Seem relatively economically seems starving going Furthermore there obviously exists possibility greatly increased production least foodstuffs The Government faced dilemma being forced Choose between economic record economic record It choice element pride prestige necessarily enters decision The significant point excitement Mar shall Plan Turks Istanbul least blaming their government failin something Plan United States All which brings subject American prestige The American replaced German model success copied Even Turkish Army officer uniforms suddenly changed months distinct German identical reproduction those officers U S Army Beth tells Is tanbul VCA locally called Girls ervice Center reliEi reasons where holds Acting Assistant Director girls style dress mannerisms humorous degree The American Girl become young Istanbul The study English booming never before American films record audiences Obvious differential treatment meted Americans Turkish oficials The other friend found himself first class railway second class ticket possessior The conductor murmured something about million ering difference smiled Yours sincerely Received York Richard D Robinson