TRADE WITH TURKEY

Evening Post, Volume CXXVIII, Issue 70, 20 September 1939, Page 12

TRADE WITH TURKEY

THE BRITISH FOSITION

While Turkey doubled her purchases from Great Britain last year, sales of Turkish goods to Britain were halved, j The trade between Turkey and Germany, on the other hand, increased j substantially in both directions, reports j the "Daily Telegraph." j These facts emerge from the economic report dated April, 1939, on Turkey by Mr. S. R. Jordan, Commercial Secretary to the British Embassy at Angora. It is published by the Department of Overseas Trade. Turkish imports from Britain rose from £1,183,000 in 1937 to £2,800,000 last year. Exports to Britain dropped from £1,633,000 to £816,000. Imports from Germany rose from £8,016,000 to £11,733,000, and exports to Germany from £8,400,000 to £10,710.000. Britain's share of Turkish imports increased from 7.1 per cent, to 16.8 per cent., but she took only 4.9 per cent, of Turkey's exports, compared with 9.8 per cent, in 1937. Germany's share of imports rose from 42.08 per cent, to 46.98 per cent, while she increased her purchases of Turkish exports from 36.53 per cent, to 42.92 per cent. A REGRETTABLE FEATURE. Germany is easily Turkey's best customer and chief supplier. Mr. Jordan explains that the turning of the Turkish favourable balance with Britain in 1937 into an unfavourable balance last year reflects the Turkish spending of part of the cost of the Karabuk iron and =teel works, guaranteed by the Expo I Credits Guarantee Department, and does not represent a normal trading balance. He adds that the reduction in British purchases of Turkish products represents an abnormal feature and "one that is to be regretted, and, indeed, is regretted deeply in Turkish commercial and political circles." The reason given is that prices obtainable for Turkish goods in Britain are normally less than can be obtained elsewhere. The Anglo-Turkish Trade and Clearing Agreement and the Supplementary Agreement were devised to correct the balance by checking British sales.

Referring to Germany's consolidation of her position in the, Turkish markets Mr. Jordan writes:

"The attraction of higher prices for practically every commodity has resulted in bulk purchases of Turkish products, and while in the earlier part of the export season these were restricted to better-known Turkish products, the process has now been extended to every saleable commodity,"