AN ECONOMIC ANALYSIS OF TURKEY’ S FOREIGN TRADE AND TRADE POLICIES IN AGRICULTURAL PRODUCTS BY I s m a i l H. S e n e r A THESIS S u b m itte d to tiie School of G ra d u a te S t u d i e s of M ichigan S t a t e C o l l e g e o f A g r i c u l t u r e and A p p l i e d S c i e n c e i n p a r t i a l f u l f i l l m e n t of t h e - r e q u ir e m e n ts f o r t h e d e g r e e of DOCTOR OF PHILOSOPHY D e p a r t m e n t o f E c o n o m ic s 1948 ACKNOWLEDGEMENT The w r i t e r w i s h e s t o e x p r e s s h i s s i n c e r e apprecia-*t i o n t o t h e members o f h i s a d v i s o r y c o m m i t t e e f o r t h e i r e n c o u r a g e m e n t and v e r y h e l p f u l g u i d a n c e i n p r e p a r a t i o n of t h i s s t u d y . He i s p a r t i c u l a r l y g r a t e f u l t o P r o f e s s o r D r . L a w r e n c e W. W i t t , A g r i c u l t u r a l E c o n o m i s t , who g ave g e n e r o u r s l y of h i s tim e i n r e a d i n g t h e e n t i r e m a n u s c r i p t and rna.de many v a l u a b l e s u g g e s t i o n s and c r i t i c i s m s . In . a d d i t i o n he was v e r y k i n d and p a t i e n t i n c o r r e c t i n g s e v e r a l e r r o r s and r e p h r a s i n g several sentences. He i s a l s o v e r y g r a t e f u l t o P r o f e s s o r C l i f f o r d M. H a r d i n o f E c o n o m ic s D e p a r t m e n t f o r h i s g r a c i o u s h e l p f u l ­ ness . The w r i t e r w a n t s t o t h a n k P r o f e s s o r K a d r i B i l g e m r e an d P r o f e s s o r D r. S a i t T. T e k e l o o f t h e I n s t i t u t e of A g r i c u l t u r e of A nkara, Turkey f o r t h e i r c o n t r i b u t i o n in se c u rin g c u rre n t d a ta used in t h i s stu d y . R e c o g n i t i o n o f h e l p f u l n e s s i s due a l s o f o r t h e fa c ilitie s g r a n t e d b y t h e l i b r a r i e s of M i c h i g a n S t a t e C o l l e g e , U n i t e d S t a t e s D e p a r t m e n t o f A g r i c u l t u r e , The L i b r a r y of C o n g r e s s , New York C i t y P u b l i c L i b r a r y , and b y t h e O f f i c e of F o r e i g n A g r i c u l t u r a l R e l a t i o n s . F i n a l l y he w i s h e s t o e x p r e s s h i s d e ep g r a t i t u d e t o t h e T u r k i s h Gov ern m ent f o r making i t p o s s i b l e f o r . him t o c a r r y on h i s g r a d u a t e s t u d i e s i n t h i s i n s t i t u t i o n . The w r i t e r a s s u m e s , of c o u r s e , f u l l r e s p o n s i b i l i t y f o r any e r r o r s and s h o r t c o m i n g s t h a t may b e p r e s e n t i n t h i s study, I s m a i l H. S e n e r INTRODUCTION T h i s s t u d y h a s two o b j e c t i v e s . The f i r s t , t o exam­ i n e t h e p l a c e and t h e i m p o r t a n c e o f a g r i c u l t u r e i n t h e f o r e i g n t r a d e of Turkey. The s e c o n d , t o s t u d y a n d a n a l y z e Turkey’ s f o r e i g n t r a d e p o l i c i e s in r e l a t i o n to i t s ag ri­ cu ltu re. The p e r i o d w h i c h i s e m p h a s i z e d i n t h i s f r o m 19 2 3 t o 1947 i n c l u s i v e . survey i s T h is ' p e r i o d was s e l e c t e d b e ca u se the R e p u b lic a n reg im e was e s t a b l i s h e d in Turkey i n 1 9 2 3 , a n d th e p o l i c i e s of t h e new g o v e r n m e n t w e r e e n ­ t i r e l y d i f f e r e n t f r o m t h o s e o f t h e f o r m e r Ottoman E m p i r e . S i n c e many A m e r i c a n s a r e u n f a m i l i a r w i t h t h e c o u n t r y , a b r i e f s u r v e y of T u r k e y ' s n a t u r a l r e s o u r c e s ( s u c h a s l o c a ­ t i o n , a r e a and p o p u l a t i o n , t o p o g r a p h y and c l i m a t e ) and eco n o m ic r e s o u r c e s ( s u c h a s m i n i n g , t r a n s p o r t a t i o n , i n d u s ­ t r y and a g r i c u l t u r e ) to p ics, i s undertaken. In an aly zin g th e se e m p h a s i s i s g i v e n t h o s e p o i n t s w h i c h seem t o h a v e most s i g n i f i c a n c e i n r e g a r d to t h e c o u n try 's fo re ig n tra d e . Because a g r i c u l t u r e i s t h e b a s i s of th e c o u n t r y 's economy a s w e l l a s f o r e i g n t r a d e , two s e p a r a t e c h a p t e r s a r e d e v o te d to tM .s s u b j e c t - o n e d e a l i n g w i t h the g e n e r a l c h a r a c t e r i s t i c s of T u r k i s h a g r i c u l t u r e , t h e w ith a g r i c u lt u r a l p ro d u c tio n . second d e a lin g In the fo rm er, a t t e n t i o n i s g i v e n t o t h e i m p o r t a n c e o f a g r i c u l t u r e i n t h e economy of t h e c o u n tr y , a g r i c u l t u r a l a r e a s , la n d t e n u r e , and farm p ractices. A b r i e f summary o f t h e r e c e n t s o c i a l a n d c u l ­ t u r a l changes i n th e p e asa n ts* life is s ls o included. The r e a s o n i s t h a t t h e s e p e a s a n t s p r o d u c e t h e p r o d u c t s w h i c h go i n t o f o r e i g n t r a d e c h a n n e l s . I n t h e c h a p t e r on a g r i c u l t u r a l p r o d u c t i o n em phasis i s p l a c e d on the e x t e n t o f p r o d u c t i o n and t r e n d s o f p r i n c i p a l p r o d u c t s i n t h e country. I n a d d i t i o n an e f f o r t i s made t o d e t e r m i n e t h e p l a c e o f T u r k e y i n w o r l d a g r i c u l t u r e by p a r t i c u l a r c r o p s . A f t e r t h i s b a c k g r o u n d on T u r k e y ’ s economy a n d a g r i c u l t u r e , Turkey’ s f o r e ig n t r a d e i s exam ined. in a g r i c u l t u r a l p r o d u c ts I n d e a l i n g w i t h t h i s p a r t , t h e b a l a n c e of f o r e i g n t r a d e of T u r k e y , e x p o r t and i m p o r t t r a d e , and t h e p l a c e of a g r i c u l t u r e i n t h e c o u n t r y ’ s f o r e i g n t r a d e .by p r i n c i p a l com m odities a r e g iv e n c o n s i d e r a t i o n . Fur­ t h e r m o r e , d i s t r i b u t i o n of t r a d e by c o n t i n e n t and b y l e a d ­ i n g c o u n t r i e s i s e x a m in e d . I n t h e f i n a l p a r t of t h e survey c o n s i d e r a ti o n i s given to Turkey’ s fo re ig n t r a d e p o l i c i e s in r e l a t i o n to ag ricu ltu re. I n exam ining t h e s e p o l i c i e s , T u rk e y ’ s g en ­ e r a l e co n om ic p o l i c y i s u n d e r t a k e n f i r s t . H o w ev e r, more p a r t i c u l a r e m p h a s i s i s g i v e n t o p o l i c i e s i n t e n d e d t o r e g u l a t e p r o d u c t i o n a nd f o r e i g n t r a d e . The l a t t e r i n ­ c lu d e s e x p o rt and im p o rt m ea su re s, c u r r e n c y c o n t r o l s , c l e a r i n g s y s t e m o f t r a d e and r e c i p r o c a l t r a d e a g r e e m e n t s . Since the country i s developing r a p i d l y , a b rief a n a l y s i s o f i t s p r o b a b l e f o r e i g n t r a d e d e v e l o p m e n t s and p o l i c i e s i s u n d e r t a k e n i n c h a p t e r XVI. I n o r d e r t o i n t e g r a t e t h e f i n d i n g s and t o g i v e t h e r e a d e r a q.u ick g r a s p of t h e s t u d y summary a n d c o n c l u s i o n s a re p la c e d i n the s e c t i o n f o llo w in g the f i n a l c h a p t e r of part I I I . ' TABLE OF CONTENTS Page I n t r o d u c t io n PART ONE THE BASIS OF TURKEY'S EXPORT TRADE I. The G en eral C h a r a c t e r i s t i c s o f T u rk ey 's A g r ic u lt u r a l R e so u r c e s L o c a tio n A rea P o p u la t io n Topography C lim a te II. T u rk ey 's Econom ic R e so u r c e s 1 10 10 11 13 G en eral F e a tu r e s of T u rk ey 's A g r ic u lt u r e Land Tenure Farm P r a c t i c e s A g r ic u lt u r a l C r e d it S o c i a l and C u lt u r a l D evelop m en ts IV . 1 1 3 4 5 6 M ining T r a n s p o r ta tio n I n d u s tr y III. ■ A g r ic u lt u r a l P r o d u c tio n C e r e a ls Crops f o r I n d u s t r i a l U se Legum inous Crops F r u it s and N u ts L iv e s t o c k 19 £0 £4 £5 £6 3£ 3£ 35 46 47 56 PART TWO V. V I. TURKEY'S FOREIGN TRADE IN AGRICULTURAL PRODUCTS 6£ The B a la n c e o f F o r e ig n Trade 64 E x p o rt Trade o f Turkey 70 P age The P la c e o f A g r ic u lt u r e i n E xp ort Trade Im p o rta n t A g r i c u lt u r a l E x p o r ts V II. Im port Trade o f Turkey 89 The P la c e o f A g r i c u lt u r a l P r o d u c ts i n Im port Trade Im p o rta n t A g r i c u lt u r a l Im p orts V III. D i s t r i b u t i o n o f T u rk ish Trade 71 7E 90 91 ■ 96 D i s t r i b u t i o n o f Trade by L ead in g C o u n tr ie s 98 PART THREE IX . TURKEY’S FOREIGN TRADE POLICIES IN RELATION TO AGRICULTURE 112 G en eral Econom ic P o l i c i e s o f Turkey .112 P r io r t o 1923 A f t e r 1923 X. P r o d u c tio n M easures P r o d u c tio n A id s P r o d u c tio n R e s t r i c t i o n s X I. E xp ort M easu res Q u a lity C o n tr o ls E xp ort R e s t r i c t i o n s O ther M easures X II. Im port M easu res Im port D u tie s Im port Q uotas and L ic e n s in g Im port M o n o p o lies W ar-tim e C o n tr o l o f Im p o rts S a n it a r y R e s t r i c t i o n s X III. The Exchange C o n tr o l M easu res C urrency D e v a lu a tio n XIV. O ther M easu res R e g u la tin g Trade C le a r in g S ystem Premium S y stem . 1 1 2 116 121 121 12 8 131 131 133 135 136 136 144 147 149 149 151 154 158 15 8 166 Page XV. R e c ip r o c a l Trade A greem ent w ith th e U n ite d S t a t e s T a r i f f C o n c e s s io n s g r a n te d T a r if f C o n c e s s io n s g r a n te d U n ite d S t a t e s XVI. X V II. by Turkey byth e 169 171 172 F a t u r e P r o s p e c t s of T urkey’ s F o r e ig n Trade 175 Summary and C o n c lu s io n s 182 S e l e c t e d B ib lio g r a p h y 190 Appendix LIST OF TABLES P age I. II. III. IV . V. V I. V II. The B a la n c e o f F o r e ig n Trade o f Turkey 65 V alu e o f A g r i c u lt u r a l P r o d u c ts and P e r c e n ta g e o f T o ta l E x p o rt of Turkey 73 V alu e o f T u rk ish Im p o rts o f A g r i c u lt u r a l P r o d u c ts Compared w ith T o ta l Im p o rts 92 P e r c e n ta g e D i s t r i b u t i o n o f T u r k e y 's F o r e ig n Trade by C o n tin e n ts 97 P e r c e n ta g e D i s t r i b u t i o n o f T u r k e y 's E x p o rt Trade by L ea d in g C o u n tr ie s 99 P e r c e n ta g e D i s t r i b u t i o n o f T u r k e y 's Im port Trade by L ea d in g C o u n tr ie s 100 T u rk ish Im port D u t ie s on A g r i c u lt u r a l Com­ m o d it ie s 141 APPENDIX TABLES Page 1. The U n it s cf T u rk ish M easu res i n term s o f A m erican U n it s i 2. Y e a r ly A verage o f L ir a i n term s o f D o lla r ii 5. V alue o f P r i n c ip a l E x p o r ts o f Turkey (P a r t 1) iii 4. V alu e o f P r i n c i p a l E x p o r ts o f Turkey (P a r t 2) iv 5. Volume o f P r i n c ip a l E x p o r ts o f Turkey (P a r t 1) v 6. Volume o f P r i n c i p a l E x p o r ts of Turkey (P a r t 2) vi 7. V alue o f T u rk ey’ s Trade w ith P r i n c i p a l C o u n tr ie s 8. V alu e o f P r i n c i p a l A g r i c u lt u r a l Im p o rts o f Turkey 9. Volume o f P r i n c i p a l A g r i c u lt u r a l Im p o rts o f Turkey 10. V alu e o f M anufactured Im p orts o f Turkey 11. T urkey’ s E x p o r ts of T obacco t o P r i n c i p a l C o u n tr ie s 12. Number o f L iv e s t o c k i n Turkey 13. A creage and P r o d u c tio n o f P i e l d Crops i n Turkey 14. Numbers and P r o d u c tio n o f P r i n c i p a l E r u t t T rees 15. The B a la n c e o f Trade o f th e Ottoman Empire v ii v iii ix x xi x ii x iii x iv xv PART OME THE BASIS OF TURKEY'S EXPORT TRADE CHAPTER I THE GENERAL CHARACTERISTICS OF TURKEY’ S AGRICULTURAL RESOURCES The b a s i s and th e s t r u c t u r e o f e a c h n a t i o n ’ s economy and f o r e i g n t r a d e t e n d to be d e ter m in e d by i t s n a t u r a l r e s o u r c e s , su ch a s l o c a t i o n , a r e a and p o p u la t io n , p h y s i c a l n a tu re , s o i l , c l i m a t e , and th e r e l a t i v e abundance or s c a r ­ c i t y o f la n d , l a b o r , arid c a p i t a l . A b r i e f , d e s c r i p t io n of t h e s e f a c t o r s a s th e y a re in Turkey i s n e c e s s a r y a t t h i s p o in t a s a background f o r l a t e r d i s c u s s i o n s . L o c a tio n The T u rk ish R e p u b lic i s s i t u a t e d a t th e m e e tin g p o in t o f Europe and A s ia , s t r e t c h i n g from t h e 3 6 th t o 42nd d e g r e e s o f N orth L a tit u d e and from th e 2 6 th t o 4 4 th d e g r e e s o f E a s t L o n g itu d e . I t i s made up o f two p a r t s , Turkey i n A s ia ( A n a t o l i a ) , and Turkey in Europe (T h r a c e ). H ow ever, o n ly a sm a ll p o r t i o n , 3 .1 p e r c e n t o f th e c o u n t r y ’ s t o t a l a r e a , i s l o c a t e d i n E u rop e. B etw een t h e s e two p a r t s t h e r e a r e th e S t r a i t s o f B o sp h o r u s, w h ich l i n k s t h e B la c k S ea w ith th e in la n d S e a o f Marmara, and th e D a r d a n e lle s w h ich c o n n e c ts th e Marmara S ea w it h t h e M ed iterran ean .'*’ It sh o u ld be k e p t I n mind t h a t t h e s e s t r a i t s a r e o f im p o rta n ce b e c a u se th e y s e r v e an im p o r ta n t p a r t i n th e n a t i o n a l and ■^See map f o l lo w in g p age 3 . 2 in te r n a tio n a l tr a d e a s w e ll a s p o l i t i c a l l i f e of T urkey. For c e n t u r i e s , th e i n t e r s e c t i o n o f th e w o r ld ’ s g r e a t h ig h ­ w ays o f tr a d e and commerce h a v e b e e n w i t h i n th e T u rk ish E m pire. Throughout h i s t o r y , b ig and im p o r ta n t pow ers h ave so u g h t t o c o n t r o l th e s t r a i t s and h ave u n d erta k en numerous d ip lo m a t ic and m i l i t a r y cam p aign s a g a i n s t T urkey, a s w e l l as a g a in s t each o th e r . In s p i t e o f a l l th e s e c o n f l i c t s , T urkey s a f e l y g u a rd ed th e s t r a i t s and s u c c e s s f u l l y d e fe n d ­ ed them e a c h t i m e , T urkey, f o r i t s s t r a t e g i c l o c a t i o n , i s c ia lle d "a b r id g e b etw een A sia and E u rop e" , or "b etw een E a s t and W est" , " th e c r o s s r o a d s of th e w o r ld " , "a k ey t o th e E a s t" 2 , and now adays, i s c o n s id e r e d a b a r p r o t e c t i n g th e B r i t i s h L i f e - L in e and th e A m erican i n t e r e s t s i n th e N ear E a s te r n Coun­ tr ie s . N ap oleon a p p r e c ia t e d t h i s , a lth o u g h he o v e r s t a t e d i t , when he d e c la r e d i n 1807 t h a t "He who c o n t r o l s C on stan ­ t i n o p l e r u l e s th e w orld ." ® T hroughout h i s t o r y , T urkey’ s c o n v e n ie n t l o c a t i o n e n a b le d h e r t o tr a d e s u c c e s s f u l l y w it h th e r e s t o f th e w o r ld , e v en un der a p oor t r a n s p o r t a t i o n sy s te m , and a t t h e same 2 Tobim, C h e s te r M. T u rk ey. Key t o th e E a s t , G. P . Putnam ’ s S o n s . New Y o rk , p . 4 3 . ® B ess, D em aree, "Up To Our N eck s i n T urkey", The S a tu r d a y E v e n in g P o s t , (J a n u a ry 2 5 , 1 9 4 7 ) , p . 9 7 . 'i ll l.n - r n w i c h V uiii r s a i k i till HOAIANYA IVU-ovs^ • icKh Sohuni y- (; u fTjTi ,, • • - — ■' ‘^jario.., • • , •/••' f- ltlo .il' v»* ' ; ^ / r t t f n t m * * .■ L ^i* fa r # , >•>'/. ,/,/< UlftkWsiT '/ ■ -l 'M fatiA■ •/ - ' > * /_ 1 7 .. . , ‘ $on)ntintLfS~! ■frAui hottJu^dr tTur/iu * » .® Yildi* (1 V £iln1m {f'U‘ laiyul' '«*, " ^ 'e b u u vftr 5 !>*■ .CitfMn*5 ,. ( U S4>' ' .$• . ' TivLis^lbA H a liim v Sh-BM W KAKA / v A»vt//.m/ /r — Yoi-ii in - ' V3S5«- , K n^W u^^*- ^ / ,_^ X .Mada* ’jtnndn.^X Kn/j),!.'., 3 k k ilib < ‘ ^'CX: rj^ ^ P ^ 'v ,-V r^ »WrUaW r C \ fm*azftn •■■? - I . u ■■■>;„,„ y ... . . -fill Hill aw^892BfS*|L * ; -v.. ,.- •’Ti/.TUOi/ •-" • duros’W/^c/, ..... «7,-„,lU>l _" 5 »y Enattjtn ^ •/.uiuun IS"0 -jflB B K *. /W»*lue*i '5*'ni.vK,» m-?/ r«»«> foiMir/tt.n s ','«iiv. '' • ~*wf"/ ^ i^ik •»tfi“?2!,K / Wo < f tW IWU-4* F I C ®fe,|U^ o K-ii-.ird U Siwtri n » ;ih K * • i*i'***,'-K 1 ...„ 2 fen « ^/ Kirmui / .v-';'5arv\bu0it' lT H Kbrrk. .-*' ?st.;/,* ;y , ' Akiug x «'u.vn J , , . _!/(;fl^ . ^ .v ^ y '. v ^ ‘ .. M u s u i® M o s s o u l) k TURQUIE n i i v f.twlnv TORKiYE A ncicn n es lig n e s d e ch em in d e fer 7,/S.r,'-•w^“i in r n a k n lim a s o l ■" \bli Sr/luti L ig n e s e n c o n s tr u c tio n L ig n e s e n p ro je t H c h e lle Vlai Asuwac .1 |C crni«u»N ‘^ illoni Ti-iilmlii U g n e s c o n s t r u i t e s s o u s la R c p u b liq u e - . ^P'Uiiki" H um us . v Unrut~n ■•, B K H IT !:n ,o < )n o O ) ",ea r e g io n o u t o f c o n s id e r a ­ t i o n , Turkey h a s a b a r e ly a d e q u a te an n u al p r e c i p i t a t i o n , w ith r a in s f a l l i n g m o s tly i n th e w in te r m o n th s. From t h i s e x p la n a t io n th u s f a r i t i s a p p a r e n t t h a t Turkey p r e s e n t s a lm o st a l l k in d s o f c l i m a t i c c o n d i t i o n s . The m o u n ta in s and s e a s b o r d e r in g th e c o u n tr y a r e t h e p r i n ­ c i p a l f a c t o r s w h ich c r e a t e su ch a d i v e r s i f i e d c lim a t e i n th e c o u n tr y . 10 CHAPTER I I TURKEY’ S ECONOMIC RESOURCES A t t h e b e g i n n i n g a b r i e f summary o f T u r k e y ' s e c o n ­ omic r e s o u r c e s , o t h e r t h a n a g r i c u l t u r e , se em s n e c e s s a r y a s a complem entary b a c k g r o u n d . In t h i s s e c tio n a b r i e f d is - , c u s s io n w i l l be g iv e n t o T u r k e y 's m in e r a l r e s o u r c e s , t r a n s ­ p o r t a t i o n a nd i n d u s t r i e s w h i c h d o , i n one way o r a n o t h e r , a f f e c t the c o u n t r y 's f o r e i g n t r a d e in a g r i c u l t u r a l p r o d u c t s . M ining Turkey p o s s e s s e s v a s t m in e r a l d e p o s i t s , b u t few h ave b e e n e x p l o i t e d on a c o m m e r c i a l s c a l e . Because o f the l a c k of t r a n s p o r t f a c i l i t i e s most o f t h e m ines rem ain un­ developed. th e country, In o rd e r to ex plore f o r m ineral re s o u rc e s in t h e T u r k i s h g o v e r n m e n t f i r s t f o r m e d an i n s t i t u t e o f m i n i n g , and t h e n a b a n k , n a m e l y , " E t i Bank" w h i c h u n d e r ­ t o o k t h e f i n a n c i a l d e v e l o p m e n t o f T u r k i s h m i n e s and e l e c ­ t r i c power. The p r i n c i p a l m i n e s of T u r k e y p r o d u c e c o a l , c h ro m e , c o p p e r , l i g n i t e , b o r a x , z i n c , e m e r y , m a n g a n e s e , iron, s ilv e r-le a d , There are a l s o and t h e r e a r e v e r y l a r g e s a l t r e s o u r c e s . some g o l d , m a r b l e , and m e e r s c h a u m . D iscov­ ery o f o i l has been r e p o r te d but d e t a i l s a re not a b a i l a b l e . Among t h e m i n e s , chrome p l a y s an i m p o r t a n t r o l e , a nd T u r ­ k e y i s one o f t h e l e a d i n g c o u n t r i e s i n t h e w o r l d i n t h e p r o d u c t i o n and e x p o r t t r a d e o f chro m e. With t h e g r a d u a l e x t e n s i o n of t h e r a i l w a y s y s t e m , p a r t i c u l a r l y t o t h e i m p o r t ­ a n t c o p p e r r e g i o n o f E r g a n i , and u n d e r t h e i m p e t u s o f t h e 11 s e c o n d 5 ~ y e a r i n d u s t r i a l p l a n o f 1 9 5 7 , more a c t i v e e x p l o i t ­ a ti o n of m ineral re s o u rc e s has taken p la c e . T ransp ortatio n In g e n e ra l Turkey’ s t r a n s p o r t a t i o n f a c i l i t i e s are very poor. A l t h o u g h t h e r a i l r o a d p o l i c i e s of new T u r k e y a r e e x p r e s s e d b y th e m o t t o , ’’A lw ays more r a i l r o a d s f o r t h e c o u n t r y ” , t h e e x i s t i n g l i n e s s t i l l f a l l f a r - s h o r t of t h e country’ s needs. There a r e o n ly 4 ,6 2 5 m i l e s of r a i l r o a d l i n e i n T u r k e y o r a b o u t 1 . 5 f e e t p e r p e r s o n co m p a red w i t h 9 f e e t in the U nited S t a t e s , a nd 6 f e e t i n Germany. The s t a t e owns a n d o p e r a t e s 4 , 2 7 4 o u t o f 4 , 6 2 5 m i l e s an d t h e r e m a i n i n g 250 m i l e s a r e owned b y p r i v a t e c o m p a n i e s . B e fo re t h e R e p u b lic a n reg im e th e r a i l r o a d s i n Turkey were a l l c o n s t r u c t e d by b i g f o r e i g n p o w e r s . T h e ir m a jo r aim i n b u i l d i n g r a i l r o a d s i n T u r k e y was n o t d e s i g n e d t o u n i f y d i f f e r e n t p a r t s o f t h e c o u n t r y , b u t t o b u i l d an o v e r l a n d r o u t e t o I n d i a and t h u s t o c o n n e c t i t w i t h E u r o p e . Most of th e f o r e i g n com panies c o n tin u e d t h e i r o p e r a t i o n u n t i l t h e e n t i r e r a i l r o a d s y s t e m was a c q u i r e d by t h e Gov ern ment i n 1957. Turkey h a s a few a l l - w e a t h e r r o a d s , t o o . There a r e a b o u t 16,768 m i l e s of s u rf a c e d r o a d s , i n c l u d i n g 1 0,56 2 m i l e s o f w a t e r - b o u n d macadam r o a d and 5 , 2 5 4 m i l e s o f i m p r o v e d e a r t h , s a n d , c l a y , and g r a v e l r o a d . C onsiderably l e s s a t ­ t e n t i o n h a s b een p a i d by t h e gov ern m e n t t o t h e c o n s t r u c t i o n 12 and m aintenance o f roads than to the development of the r a ilw a y s. One im portant reason fo r th e la c k of tr a n sp o r ta tio n i s the g eo g ra p h ica l f a c t o r . The m ountains p revented the co n str u c tio n of adequate highw ays, because i t was too ex­ p en siv e to undertake b u ild in g roads over such t e r r a in . One American ex p ert in h is re p o r t about Turkey’ s economy d escrib ed the tr a n sp o r ta tio n s it u a t io n by s t a t in g th a t "w ithin the p o l i t i c a l boundaries o f Turkey are a hun­ dred ’l i t t l e Turkeys’ each eco n o m ica lly is o la t e d from the r e s t and u s u a lly producing a f r a c t io n a l p a rt - o n e -th ir d to o n e-ten th of i t s p o t e n t i a l i t i e s . O bviously the stren g th o f Turkey cannot approach th e sum of i t s p a r ts u n t il th ey can be added together."^® C onsiderable e f f o r t s have been made by the government to improve and exten d the cou n try’ s sh ip p in g p o s it io n . A fte r Turkey’ s r ig h t o f cabotage was acknowledged by th e Lausanne T reaty in 1923, th e merchant marine in crea sed r a p id ly from 3 2 ,9 0 2 to n s in 1923 to 165,000 in 1945; and w ith the pur­ chase of 20 more sh ip s in 1946 and 1947 th e tonnage reached about 250,0 0 0 . There are f i v e p r in c ip a l p o r t s , namely, I s ta n b u l, Thornburg, Max W., Turkey: "Aid fo r •'What?*’ F ortune, O ctober, 1947, p . 106. 155 Izm ir (Smyrna), M ersin, Iskenderan, and Samsun.1^ bul i s the most im portant p o rt in Turkey. Ista n ­ In 1939 i t handled about 76 p ercen t o f a l l im ports and 35 p ercen t o f a l l ex­ p o r ts . Izm ir, th e second most im portant p o r t, accounted fo r 7 p ercen t of a l l im ports and 30 p ercen t of a l l e x p o r ts. Samsun, th e most im portant p o rt on th e Black Sea i s good fo r anchorage, but i s exposed and i s about a m ile from th e town. There i s o n ly one sa fe.h a rb o r in t h i s s e c t io n of the co u n try , namely S in ob , but i t has not much v a lu e from commercial sta n d p o in t. Two new p o r ts have been under con­ s tr u c tio n on th e Black S ea , one a t Trabzon, and the o th er at Zonguldak. In d u stry The p r im itiv e economic and p o l i t i c a l system o f the Ottoman Empire and th e v a r io u s c a p it u la tio n s and c o n c e ssio n s to fo r e ig n e r s p aralyzed Turkish independence in r e s p e c t to custom p o l i c i e s , which g r a d u a lly reduced Turkey to a so r t of in te r n a tio n a l c o l o n y .^ B efore the in d u s t r ia l r e v o lu tio n in Europe, Turkey had an in d u str y s u f f i c i e n t to m eet the n a tio n * s requirem ents and even c a r r ie d on an ex p o rt tr a d e . Turkey did not keep pace w ith the te c h n ic a l p ro g re ss of w estern Etirope during th e 19th c e n tu r y . See map. *2See Chapter IX. Home in d u str y 14 g ra d u a lly d eclin e d s in c e th e dom estic and p rim a rily handi­ c r a f t in d u stry was not a b le to compete w ith th a t o f fo r e ig n p ro d u cts. Thus Turkey was reduced to a country producing 13 p rim a rily a g r ic u ltu r a l p ro d u cts. As soon as the Ottoman Empire became th e R epublic o f Turkey in 1923, one o f th e f i r s t o b je c t iv e s o f th e new government was the in d u s t r ia liz a t io n of th e cou n try. The new regime d ecla red i t s p h ilo so p h y by s t a t in g th a t "Economic freedom i s the b a s is o f p o l i t i c a l independence." With t h i s economic p h ilo so p h y th e Turkish govern­ ment f i r s t d ecid ed to se p a r a te the dom estic economy from domination by fo r e ig n economic in flu e n c e . The ex p e r ie n c e s of the o ld regim e had convinced th e government th a t c o n c e ssio n s to fo r e ig n e r s had not been a s a fe gu ide f o r th e development o f the cou n try’ s economy. Turkey cou ld n o t s t a r t an in d u s t r ia l program immedi­ a t e ly a f t e r th e i n s t a l l a t i o n of the R ep u b lic. As a m atter o f f a c t , th e esta b lish m en t o f a n a tio n a l in d u stry in a coun­ tr y which had become an open market to a l l f o r e ig n coun­ t r i e s could on ly be r e a liz e d by a p o lic y p rovid in g adequate p r o te c tio n . But Turkey was not au th orized by the term s of th e Lausanne T reaty to in c r e a se h er t a r i f f r a t e s u n t il 1929. Therefore,- n a tio n a l in d u str y was stim u la ted by l e g i s l a t i o n 13 R epublic of Turkey, M in istry of I n t e r io r , Turkey on th e way o f i n d u s t r ia l iz a t io n . Ankara, 1937. pp. 5 -9 . 15 known a s "The Law f o r the Encouragement of In d u stry ” en­ acted in 1927. According to the p r o v is io n s o f t h i s law , in d u s t r ia l firm s having 1500 or more man-days work per year were exempt from a l l k in d s o f s t a t e and m unicipal ta x es. They a ls o enjoyed f u l l exem ption from import d u tie s fo r fo r e ig n m a te r ia ls n ece ssa r y to such f a c t o r i e s , Firms in te n d in g to en te r in d u str y were gran ted 10 h e c ta r e s (2 4 .7 acres) o f f r e e la n d , and a ls o f r e e tr a n sp o r ta tio n of equip­ ment, m achinery, and o th er m a te r ia ls to he used in the con­ s tr u c tio n o f p la n t s . Furtherm ore, a l l government d ep art­ ments were o b lig e d to buy t h e ir requirem ents from dom estic so u r c e s, even though th e p r ic e o f d o m e s tic a lly produced goods was a s much a s 10 p ercen t h ig h er than th a t o f a sim i­ la r imported p ro d u ct. D esp ite th e se g r e a t encouragem ents of p r iv a te e n te r ­ p r is e , up to 1933, in d u stry made very slow p r o g r e ss. T his was due p a r t ly t o the la c k o f p r iv a te c a p i t a l , i n e f f i c i e n t in d u s t r ia l o r g a n iz a tio n , la c k o f s k i l l e d e n g in e e r s , and p a r tly because of th e d ep ressed b u sin e ss c o n d itio n s in the world during 1 9 2 9 -* 3 3 . T h erefore, in 1933 th e s t a t e decided to tak e an a c t iv e p a rt in the in d u s t r ia liz a t io n o f th e coun­ try . The F ir s t 5-Year plan was announced by the government in June, 1934. The rea so n s advanced fo r a program o f in d u s­ t r i a l i z a t i o n m ainly ce n ter ed upon th e c o n sid e r a tio n o f en­ a b lin g the country to meet i t s own req u irem en ts. This id ea 16 o f d e v e l o p i n g t h e i n d u s t r y of t h e c o u n t r y f o u n d f u r t h e r e n ­ c o u r a g e m e n t i n t h e d e p r e s s i o n y e a r s a s a wa y t o f i n d means o f employm en t f o r t h o u s a n d s o f p e o p l e by u s i n g them i n t h e newly i n a u g u r a t e d i n d u s t r i e s . The F i r s t 5 - Y e a r p l a n a c c o m p l i s h e d much i n t h e p r o ­ d u c t i o n o f c o n s u m e r ’ s goods'. Almost a l l t h e i n d u s t r i a l d e v e l o p m e n t p l a n n e d u n d e r t h i s p r o g r a m was c o m p l e t e d b y 1 9 3 9 . They c o n s i s t e d o f t h o s e i n d u s t r i e s f o r w h ic h r a w m a t e r i a l s w e re f o u n d o r c o u l d be p r o d u c e d w i t h i n t h e c o u n t r y . i n d u s t r i e s wore t e x t i l e s cellu lo se silk ), ( c o t t o n , w o o l e n , hemo, and s i l k ) , (paper, cardboard, c e llu lo s e , th e ceram ic i n d u s t r y lea th e r tan n eries, in d u stry (iron, and a r t i f i c i a l , ( g l a s s , b o t t l e s , and p o r c e l a i n ) , sh o e f a c t o r i e s , coal, These sem i-coke, a t t a r of r o s e s , th e m ining copper, chrom e, s u l p h u r , e t c . ) , and b a s i c c h e m i c a l s . P r o g r e s s - on t h e S e c o n d 5 - Y e a r p l a n , 1 9 3 7 , was i n t e r r u p t e d by " o r l d "Aar I I . inaugurated in The war i n t e r f e r e d w i t h s u p p l i e s of m a c h i n e r y and e q u i p m e n t f o r m e r l y o b t a i n e d i n C e n t r a l E u r o p e , n o t a b l y Germany. T h i s p l a n was d e s i g n e d t o g i v e T u r k e y t h e b a c k b o n e o f a n e c o n o m i c s y s t e m ----heavy i n d u s t r y . The Second 5 - Y e a r p l a n c o n c e n t r a t e d on t h e developm ent of e l e c t r i c power, s t e e l , and chem ical i n ­ d u s t r i e s , food p r e s e r v a t i o n , and p r o c e s s i n g p l a n t s , m i n e r a l d e v e l o p m e n t , and m e r c h a n t m a r i n e . t h e i r o n end s t e e l f a c t o r y , Of t h e s e p r o j e c t s o n l y th e f i r s t g e s t u r e of genuine 17 econ om ic p ow er, and the f i r s t r e a l g u a r a n te e o f econ om ic in d e p e n d e n c e , had begun p r o d u c tio n by S ep tem b er, 1 9 3 9 . The p l a n t s f o r t h e m an u factu re o f s u l f u r i c a c i d , c a u s t i c so d a , and c h l o r i n e , h o w ev e r, rem ained u n f in is h e d . D e s p it e advanced c o n s t r u c t io n , th e p r o p o se d s y n t h e t i c g a s o l i n e and s y n t h e t i c n it r o g e n p l a n t s w ere abandoned. The S econ d 5 -Y ea r i n d u s t r i a l p l a n , o f w h ic h , a s i n d ic a t e d a b o v e , a s m a ll p a r t was co m p leted b e f o r e 1 9 4 0 , had t o b e p o stp o n e d b e c a u s e o f th e w a r . A f t e r r e e x a m in a tio n and w ith some m o d i f i c a t i o n s , th e program g o t under way a g a in in 1947 and i s e x p e c te d t o be f i n i s h e d by 1 9 5 2 . To a s s i s t i n t h e c o m p le tio n and o p e r a tio n o f t h e s e i n d u s t r i a l p l a n t s two b a n k s , n am ely, E t i Bank and Sumer Bank w ere e s t a b l i s h e d b y t h e g o v ern m en t. The Et-i Bank was form ed f o r th e p u rp o se o f e x p l o i t i n g and d e v e lo p in g th e m in e r ­ a l r e s o u r c e s and e l e c t r i c a l pow er f a c i l i t i e s o f T u rk ey. The Sumer Bank i s r e s p o n s ib l e f o r th e c o n t r o l and d e v e lo p ­ ment o f a l l th e i n d u s t r i e s o t h e r th a n m in in g and e l e c t r i c pow er. A t t h i s p o in t th e q u e s t io n may b e a s k e d , "What w as th e c o n d it io n o f a g r i c u l t u r a l i n d u s t r i e s ? " t h a t a g r ic u l t u r e w as n e g l e c t e d . I t m igh t be s a id No d e f i n i t e a t t e n t i o n was g iv e n b y th e governm ent t o c o n v e r t in g a g r i c u l t u r a l p r o d u c ts i n t o p r o c e s s e d fo o d m a t e r i a l s . The o n ly o u ts ta n d in g a c h ie v e ­ m en ts a r e t h e su g a r r e f i n e r i e s , t e a p r o c e s s in g f a c t o r y , and 18 some b e e r and w in e f a c t o r i e s . B e fo r e th e R e p u b lic th e r e was n o t a s i n g l e su g a r f a c t o r y i n th e c o u n t r y . f i r s t su gar r e f i n e r y w as b u i l t . 2 - In 1905 th e A fte r th a t d a te , th r ee more w ere e r e c t e d i n d i f f e r e n t s e c t i o n s o f t h e c o u n tr y . W ith t h i s background k n ow led ge o f a g r i c u l t u r a l and econ om ic r e s o u r c e s i t i s a p p r o p r ia t e to a n a ly z e th e g e n e r a l f e a t u r e s o f T u rk ey’ s a g r i c u l t u r e . 19 CHAPTER I I I GENERAL FEATURES OF TURKEY’ S AGRICULTURE Turkey i s p r e d o m in a n tly an a g r i c u l t u r a l c o u n tr y . H ow ever, t h i s d o e s n o t mean t h a t m ost o f th e c o u n t r y ’ s la n d i s u se d f o r a g r i c u l t u r a l p u r p o s e s . Even i f i t w ere t r u e , su ch a s i t u a t i o n a lo n e w ould n o t p r o v e t h a t a g r i c u l ­ tu r e i s th e dom inant b ran ch o f economy i n a c o u n tr y . One way o f i l l u s t r a t i n g th e im p o rta n ce o f a g r i c u l ­ t u r e in a c o u n tr y ’ s economy i s t o i n v e s t i g a t e th e p e r c e n ta g e o f th e p o p u la t io n g a i n f u l l y e n g a g e d i n fa r m in g . D e s p it e c o n s id e r a b le e f f o r t s h a v in g b een made by th e R e p u b lic a n governm ent to i n d u s t r i a l i z e th e c o u n tr y , th e r e h a s n o t b een any im p o rta n t s h i f t o f p o p u la t io n fro m a g r i c u l t u r e . p r e s e n t a b o u t 75 p e r c e n t o f th e p o p u la t io n i s At engaged o r d ep en d en t upon a g r i c u l t u r e . The seco n d m ethod o f sh ow ing t h a t Turkey i s predom­ i n a n t l y a g r i c u l t u r a l i s to c o n s id e r t h e sh a r e o f a g r i c u l ­ t u r e in th e n a t i o n a l economy and f o r e i g n t r a d e . In 1942 a g r ic u l t u r e c o n s i s t e d o f 5 8 . 314 p e r c e n t o f th e n a t io n a l in co m e, w h ile d u r in g prew ar y e a r s 80 t o 87 p e r c e n t (b y v a lu e ) o f T urkey’ s t o t a l e x p o r t s w ere a g r i c u l t u r a l p r o d u c t s .^ 5 G e lir i, ^•4 T. C. I s t a t i s t i k G en el M udurlugu, T u rk ly e M i l l l ( N a t io n a l incom e o f Turkey) A nkara, 1 9 4 7 , p . 1 4 . ^5S e e T ab le H o n p a g e 73 20 C o n sid e r in g t h e s e f a c t s , i t i s e v id e n t t h a t a g r i c u l ­ tu re i s th e fo u n d a t io n o f th e n a t i o n a l econom y o f T urkey, as w e ll as th e b a s is o f i t s e x p o r ts . As f a r a s la n d a v a i l a b l e f o r a g r i c u l t u r e i s c o n c e r n e d , Turkey i s t h e o n ly c o u n tr y in E u ro p e, e x c e p t R u s s ia , where th e r e i s an abundance o f la n d . Y et u n t i l 1934 ab ou t 1 5 .3 p e r c e n t o f the t o t a l a r e a o f th e c o u n tr y w as c u l t i v a t e d . T h is p r o p o r tio n r o s e t o 1 8 .4 p e r c e n t ( 1 6 .6 p e r c e n t i n / f i e l d c r o p s , 1 .8 p e r c e n t in h o r t i c u l t u r a l c r o p s ) i n 1 9 4 4 , t h a t i s , an in c r e a s e o f 20 p e r c e n t i n . 10 y e a r s . P a s t u r e s and meadows count f o r 5 0 .2 p e r c e n t , f o r e s t s 1 5 . 3 , and th e r e m a in in g 1 6 .1 p e r c e n t c o n s i s t s o f m o u n ta in s, w a s te la n d , l a k e s and m a r sh e s. There i s room f o r much f u r t h e r e x p a n s io n o f a r a b le la n d . I n f a c t , much o f th e la n d r e c o r d e d a s p a s t u r e s and meadows i s a v a ila b le f o r a g r ic u ltu r a l u s e s . Land Tenure The f a c t t h a t 2 ,8 7 0 ,0 0 0 -1-6 farm f a m i l i e s c u l t i v a t e d 1 4 ,2 8 6 ,0 0 0 h e c t a r e s 17 ( 3 4 .2 m i l l i o n a c r e s ) i n 1944 i n d i c a t e s t h a t t h e s i z e o f farm u n i t s i s r a t h e r s m a ll, a v e r a g in g a b o u t 50 d e k a r s18 ( 1 2 .3 a c r e s ) . H ow ever, i f we in c lu d e th e la n d 16 T h is f i g u r e c a l c u l a t e d on t h e a ssu m p tio n t h a t e a c h farm f a m ily u n i t c o n s i s t s o f 5 p e r s o n s and 75 p e r c e n t o f th e p o p u la t io n a r e en g a g ed i n fa r m in g . 17 One h e c t a r e i s 2 .4 7 a c r e s . 1 8 0ne d ek ar i s 0 .2 4 7 a c r e . (S ee A p p en d ix , T ab le I ) 21 used f o r p a s t u r e , acres). t h e s i z e w i l l be 161 d e k a r s ( a b o u t 40 C onsidering only c u lt i v a t e d la n d , a c ro ss s e c tio n o f T u r k e y shows a g r a d u a l i n c r e a s e i n t h e s i z e of f a r m u n i t s from w est t o e a s t , b u t c o n s i d e r a b l e v a r i a t i o n s i n i n d i v i d u a l h old in g s. fig s, I n t h e ' w e s t e r n p a r t o f T u r k e y wh e re g r a p e s , o l i v e s , to b a c c o , and c o t t o n a r e l a r g e l y p ro d u ce d , t h e av erag e f a r m u n i t s a r e g e n e r a l l y u n d e r 30 d e k a r s i n s i z e . The a v e r ­ age h o l d i n g p e r f a m i l y i s h i g h e s t i n t h e C e n t r a l P l a t e a u , a m o u n t i n g t o 100 d e k a r s . income l e v e l i s h i g h . i s s t i l l v e ry low . But t h i s d o e s n o t mean t h a t t h e In f a c t , th e t e c h n i c a l l e v e l of farm ing B e c a u s e of an a c u t e s h o r t a g e o f c a p i t a l , t h e r e i s a w i d e u s e o f wooden p l o w s , wooden r a k e s , h a n d -m a d e i m p l e m e n t s . a n im a l . s . and o t h e r Oxen a r e commonly e m p lo y e d a s d r a f t Lack of p r e c i p i t a t i o n i s a l s o a n o t h e r f a c t o r which f o r c e s t h e u s e o f an e x t e n s i v e t y p e o f f a n n i n g i n t h i s a r e a . I n t h e e a s t t h e r e a r e l a r g e c a t t l e and s h e e p r a n g e s b u t o n ly a sm all a r e a i n c ro p s . I n th e s o u th t h e s i z e of t h e a v e r a g e f a r m u n i t i s a r o u n d 50 d e k a r s and up t o 100 i n t h e d i s t r i c t s w h e r e c o t t o n i s gro w n . I n th e Black Sea a r e a the s iz e of h o ld in g s i s the sm a lle st in th e co u n try , averag in g 4 to 6 dekars. T h e r e a r e t h r e e i m p o r t a n t t y p e s of l a n d o w n e r s h i p i n Turkey. D u r i n g t h e p e r i o d o f t h e Ottoman E m p i r e some l a n d s w e r e g r a n t e d t o t h e Moslem c h u r c h . l a r g e a c r e a g e s o f l a n d owned by s t a t e . i n d iv i d u a l ow nership. There a re a ls o The t h i r d t y p e i s The l a n d b e l o n g i n g t o t h e s t a t e o r 22 m oslem church i s g e n e r a ly l e a s e d i n sm a ll h o ld in g s hy p e a sa n ts. A f t e r e i g h t y e a r s o f c o n tin u o u s o p e r a t io n , th e y may a c q u ir e t i t l e t o th e la n d th e y have w orked. t h i s la n d , h o w ev er, i s Some o f o p e r a te d by t h e church o r s t a t e . F or e x a m p le, a t p r e s e n t a b o u t 1 5 0 ,0 0 0 h e c t a r e s o f la n d (a b o u t 3 7 0 ,0 0 0 a c r e s ) o p e r a te d fa r m s . i s p la n te d t o c e r e a l s i n 13 s t a t e T h e ir m ain o b j e c t i v e i s t o r a i s e im proved se e d f o r f r e e d i s t r i b u t i o n to f a im e r s , and a l s o t o demon­ s t r a t e th e e f f e c t i v e n e s s o f modern m eth ods o f fa r m in g . B e s id e s t h e s e , t h e r e i s t h e common la n d owned b y e a c h v i l l a g e , w h ich i s u sed m o s tly f o r p a s t u r e . L arge h o l d i n g s , 5 ,0 0 0 to 1 0 ,0 0 0 d ek a rs and i n some c a s e s ev en 3 0 ,0 0 0 to 5 0 ,0 0 0 d e k a r s , are l a r g e l y t o b e fou n d i n t h e so u th w here l a r g e - s c a l e p r o d u c tio n o f s i n g l e c r o p s su ch a s c o t t o n i s c o n c e n tr a t e d . The la n d o w n ers h a v in g l a r g e e s t a t e s a r e u s u a l l y a b s e n t e e s and o p e r a te i n one o f two s y s t e m s . The la n d i s d iv id e d i n t o sm a ll h o ld in g s o p e r a te d by p e a s a n t s who pay a c e r t a i n p r o p o r tio n o f t h e i r p r o d u c tio n a s r e n t t o th e la n d lo r d ; th e seco n d from i s h i r i n g o f an a g e n t who o r g a n iz e s p r o d u c tio n and m a r k e tin g w ith th e h e lp o f h ir e d l a b o r e r s . I t sh o u ld be k e p t i n mind t h a t n o t a l l o f th e p e a s a n t s l i v i n g i n v i l l ­ a g e s own or ev en r e n t th e la n d th e y w ork . I t i s e s t im a t e d t h a t 1 2 8 ,0 0 0 farm f a m i l i e s have no la n d , w h il e a b o u t 8 7 2 ,0 0 0 19 own v e r y s n a i l p l o t s . The l a n d l e s s p e a s a a t s work m a in ly ■^Turkey’ s A g r i c u lt u r a l Land Law", F o r e ig n A g r i c u lt u r e , U .S .D .A ., Septem ber 1 9 4 5 , p . 1 4 3 . 23 on la r g e h o ld in g s as a g r ic u ltu r a l la b o r e r s and r e c e iv e t h e ir rem uneration sometimes in kind and sometimes in money. P easan ts having sm all h o ld in g s work fo r wages on th e land o f t h e ir r ic h e r n eig h b o rs, or c u lt iv a t e t h e ir own, or they work in o th e r in d u s t r ie s , such as m ining and r a ilr o a d const^ruction, during the w in te r and e a r ly s p r in g . In v ie w o f t h i s u n eq u a l d i s t r i b u t i o n o f la n d among th e fa rm e rs t h e T u rk ish govern m ent p a s s e d l e g i s l a t i o n known a s "The Law P r o v id in g Land f o r D‘a im ers" on June 1 1 , 1 9 4 5 . The s t a t e d p rim ary o b j e c t i v e s o f t h i s la w a r e : (1 ) t o p r o ­ v id e la n d t o l a n d l e s s p e r s o n s and t o t h o s e h a v in g h o ld in g s to o s m a ll t o su p p o rt t h e i r f a m i l i e s : s t a t u s o f th e a g r i c u l t u r a l w o rk ers; t h u s t o r a i s e th e (2 ) t o in s u r e t h e con ­ t in u o u s c u l t i v a t i o n o f th e c o u n tr y ’ s la n d ; (3 ) t o b r in g u n c u lt iv a t e d a r e a s i n t o p r o d u c tio n and th u s i n c r e a s e th e a g r i c u l t u r a l o u tp u t o f Turkey; (4) t o c r e a t e a new e r a i n o w n ersh ip o f la n d among a l a r g e body o f th e p o p u la t io n . A c co r d in g to t h i s l e g i s l a t i o n , fa rm a ra re c l a s s i f i e d a s t o s i z e i n t o th r e e g r o u p s , s m a ll, medium, and l a r g e . S m a ll farm s c o n s i s t of 500 d e k a r s o f la n d o r l e s s i n s i z e ; medium, t h o s e o f 501 t o 5 ,0 0 0 d e k a r s; and l a r g e , t h o s e c o m p r isin g more th a n 5 ,0 0 0 d e k a r s . L arge farm s a r e n o t t o b e owned by i n d i v i d u a l s b u t by th e s t a t e . When la n d i s d i s t r i b u t e d , A g r i c u lt u r a l Bank ta k e s a m ortgage on th e p r o p e r ty w h ich i s t o be r e p a id by t h o s e r e c e i v i n g t h e la n d in tw e n ty an n u al p a y m en ts, w ith o u t i n t e r e s t , b e g in n in g i n Janu ary o f th e s i x t h y e a r a f t e r th e in d e b te d n e s s c o n t r a c t i s e x e c u t e d . An 24 } im p o r ta n t p r o v i s i o n i s on e w h ich s t i p u l a t e s t h e d e d u c tio n o f 5 p e r c e n t o f t h e r e m a in in g i n s t a l l m e n t s from th e d e b t o r ’ s o b l i g a t i o n f o r each o f h i s c h ild r e n when th e y rea c h p rim ary sch o o l age. A s p e c i a l fu n d i s a u t h o r iz e d , fro m w h ich th e A g r ic u lt u r a l Bank w i l l f u r n is h c r e d i t to p u r c h a s e r s f o r b u i l d i n g s , a g r i c u l t u r a l e q u ip m en t, and im provem ents f o r i n su r in g th e y e a r l y c u l t i v a t i o n o f th e s o i l . SO Farm P r a c t i c e s F e r tiliz e r (com m ercial and m anure) i s u se d e x t e n s i v e ­ l y on farm s l o c a t e d in th e c o a s t a l d i s t r i c t s , b u t seld om in th e C e n tr a l P la t e a u and E a s te r n H ig h la n d s . The c o ld w in ­ t e r p r e v a i l i n g i n t h e s e a r e a s and th e la c k o f f u e l f o r c e fa rm e rs t o u s e t h e i r manure a s s u b s t i t u t e f o r f u e l . There i s no d e f i n i t e crop r o t a t i o n i n any p a r t o f th e c o u n tr y . With th e e x c e p t io n o f th e c e n t r a l and s o u th e r n r e ­ g io n and w e s te r n v a l l e y s , Turkey i s n o t a d a p te d t o t h e e x ­ t e n s i v e u se o f l a r g e a g r i c u l t u r a l m a c h in e r y , such as t r a c ­ t o r s and c o m b in e s. As t i o n o f th e c o u n tr y i s was p o in t e d o u t e a r l i e r , a la r g e p o r ­ m o u n ta in o u s. F u rth e rm o re , la n d i s d iv id e d by o w n ersh ip i n t o sm a ll o p e r a tin g u n i t s . In th e w e ll- d r a in e d v a l l e y s th e la n d i s d iv id e d i n t o s m a ll u n i t s o f 5 t o 10 d e k a r s . Each f aim er h a s a number o f t h e s e sm a ll u n i t s s c a t t e r e d th r o u g h o u t th e c u l t i v a t e d a r e a . 20I b i d .V PP. 1 4 2 - 4 4 . A ll th e se 25 f a c t o r s l i m i t th e u se of a g r i c u l t u r a l m a c h in e r y . H ow ever, on th e c o t t o n farm s a g r i c u l t u r a l m a ch in es are w id e ly u s e d . In 1 9 4 0 t h e r e were 1066 t r a c t o r s , 7,496 g r a in d r i l l s , 1 3 ,8 9 7 h a r v e s t e r s , and 4 5 0 ,8 9 2 p lo w s o f a l l k in d s i n the c o u n tr y . A g r ic u lt u r a l C r e d it As f a r a s a g r i c u l t u r a l c r e d i t i s c o n c e r n e d , c o n s id e r a b le 'e f f o r t s have b een u n d erta k en by th e sta te . In 1937 t h e r e w ere 591 c r e d i t c o o p e r a t iv e s w it h a m em bership o f 2 2 3 ,r_ 6 7 2 . By 1945 th e number o f c r e d i t c o o p e r a t iv e s r o s e t o 617 w ith b r a n c h e s s c a t t e r e d i n 5 , 7 4 9 . v i l l a g e s , and w ith a m em bership c o n t r a c t o f 2 2 5 ,0 6 9 . T h ese a g r i c u l t u r a l c r e d i t c o o p e r a t iv e s a r e back ed and c o n t r o l l e d by a so u n d ly e s t a b ­ l i s h e d s t a t e A g r i c u lt u r a l Bank. T h is ban k , w h ich w as form ed in 1 8 9 9 , a id s fa r m e r s th ro u g h o u t th e c o u n tr y , and g r a n t s l a r g e lo a n s f o r p r o d u c tio n and im provem ent p u r p o s e s . g u a r a n te e s a f i x e d p r i c e f o r w h e a t. I t a ls o A lth o u g h th e c o o p e r a ­ t i v e movement f i r s t s t a r t e d i n 1 8 6 3 i n T u r k e y ,2^* t h a t i s , 19 y e a r s l a t e r th an t h a t o r i g i n a l l y known a s "R ochdale c o ­ o p e r a tiv e " e s t a b l i s h e d i n E n glan d i n 1 8 4 4 , t h e a g r i c u l t u r a l c o o p e r a t iv e s had n o t b een a b l e to advance i n th e c o u n tr y b e ­ c a u se o f th e la c k o f e d u c a tio n o f th e p e a s a n t . i t is Of c o u r se s t i l l backward compared w ith th e o th e r n a t io n s o f E u ro p e. The aim o f governm ent p o l i c y i s t o expand th e a g r i V c u l t u r a l c r e d i t and m a rk etin g c o o p e r a t iv e s among th e f a r m e r s . 2^The M in is t r y o f I n t e r i o r , The D evelopm ent o f N a t io n a l Banking i n T urkey, A nkara, 1 9 3 8 . p . 2 2 . 26 I n 1937 p r o d u c tio n and s a l e s c o o p e r a t iv e s were e s t a b l i s h e d , w h ich a r e c o n t r o l l e d by th e M in is t r y o f Commerce, b u t backed by th e S t a t e A g r ic u lt u r a l Bank. T hese o r g a n iz a t io n s a r e , a s s u g g e s te d by t h e i r nam es, c o o p e r a t i v e s w h ich s e l l a t w h o le ­ s a l e th e p r o d u c ts o f p r o d u c e r s . The p r o d u c tio n and s a l e s c o o p e r a t iv e s a r e e s t a b l i s h e d around t h e s e o r g a n iz a t io n s : F ig and R a is in League o f Smyrna, H a ze ln u t L eague o f G iresum , C o tto n League o f Adana, P i s t a c h i o L eague o f G a z ia n te p , and I s t a n b u l F r e sh F r u it and V e g e ta b le L e a g u e . T hese o r g a n iz a ­ t i o n s p la y a v e r y im p o r ta n t r o l e i n th e c o u n t r y ’ s e x p o r t tr a d e o f t h e i r r e s p e c t i v e p r o d u c t s . About 40 p e r c e n t o f th e f i g s and r a i s i n s , 50 p e r c e n t o f th e h a z e ln u t s and 70 p e r c e n t o f th e p i s t a c h i o s e x p o r te d a r e h a n d le d by t h e s e o r g a n is a tio n s . S o c i a l and C u ltu r a l D evelop m en ts At t h i s s t a g e a b r i e f summary o f r e c e n t s o c i a l and c u l ­ t u r a l ch a n g es i n th e p e a s a n t ’ s l i f e i s a p p r o p r ia t e . The r e a s o n i s t h a t th e y p rod u ce th e p r o d u c ts w h ich go i n t o f o r e i g n tr a d e c h a n n e ls and i t i s th ro u g h th e s a l e o f t h e s e p r o d u c ts t h a t Turkey s e c u r e s exch an ge t o buy i n d u s t r i a l p r o d u c t s , la r g e ly c a p ita l good s. & stu d y o f t h e f o r e i g n t r a d e and tr a d e p o l i c i e s o f a c o u n tr y w ith o u t a d e s c r i p t i o n o f th e g e n e r a l background o f i t s s o c i a l p ro b lem s u n d o u b te d ly i s in c o m p le te . L ook in g back t o th e p e r io d o f th e Ottoman Empire i t 27 i s s e e n t h a t th e T u rk ish p e a s a n t s l i v e d v i r t u a l l y a s s e r f s and s l a v e s in t h e i r hom eland . ,J-he in t r o d u c t io n o f t h e c u l ­ t u r a l , e d u c a t io n a l and s o c i a l d e v e lo p m e n ts, w hich had been t a k in g p la c e i n Europe f o l lo w in g t h e F ren ch and I n d u s t r i a l R e v o lu t io n s , was n e g l e c t e d and a v o id e d i n Turkey b y th e S u l­ ta n s. They f o llo w e d a p o l i c y w h ich w as in the m ain, h e d o n is ­ t i c and s e l f i s h . To m a in ta in t h e i r s u l t a n a t e th e l a t e r s u l t a n s t r i e d t o i s o l a t e th e n a t io n from t h e r e s t o f th e w o r ld . Few s t u d e n t s w ere g iv e n p e r m is s io n t o s t u d y abroad ' f o r f e a r t h a t t h e y m igh t t r y t o in t r o d u c e new id e a s and awak­ en th e n a t i o n , so t h a t i t m igh t e v e n t u a l l y r e v o l t a g a in s t th e s u l t a n h i m s e l f . In o r d e r to d is c o u r a g e th e i n t r o d u c t i o n o f t h e new d e v e lo p m e n ts in to , t h e c o u n tr y , t h e s u l t a n s , u se d th e ir r e lig io u s a u th o r ity . Thus t h e T u rk ish p e a s a n t , who a t t h a t tim e composed a b o u t 95 p e r c e n t o f th e p o p u la t io n , liv e d a l i f e dom inated by t h e a n c ie n t cu sto m s and t r a d i t i o n s w h ich w ere outmoded e ls e w h e r e . T h is s i t u a t i o n p r e v a i l e d u n t i l th e r i s e o f Kemal A ta tu r k and th e e s t a b lis h m e n t o f th e new r e p u b lic a n r e g im e i n 1923. R e a liz in g th e im p o rta n ce o f a g r i c u l t u r e to th e p e a s ­ a n t s who fo u g h t f o r f i v e m ore y e a r s f o l l o w i n g World War 1 , in th e War o f T u rk ish In d ep en d en ce a g a i n s t a l l i e d N a t io n s , Kemal A ta tu r k , le a d e r and f i r s t p r e s i d e n t o f th e c o u n tr y , d e c la r e d when th e R e p u b lic was fo u n d ed "The p e a s a n t s a r e th e m a s te r s o f ou r c o u n tr y ." By t h i s s ta te m e n t he d id n o t i n ­ te n d t o i n d i c a t e a c l a s s d is c r im in a t io n w i t h i n th e c o u n tr y , 28 b u t i t was an i n d i c a t i o n t h a t governm ent p o l i c i e s w ere t o be d e s ig n e d t o p r o v id e a b e t t e r l i f e f o r th e m a j o r it y o f th e p e o p l e , r a t h e r th an a m in o r it y a s i t had b een under th© Ottoman regim e . A f t e r th e e s t a b lis h m e n t o f th e T u rk ish R e p u b lic on Septem ber 2 9 , 1 9 2 3 , th e C a lip h a te was a b o lis h e d i n 1 9 2 4 , and a l l m oslem s c h o o l s , c o n v e n ts and c a n o n ic a l c o u r t s were r e p la c e d by modern s c h o o l s and c o u r t s . The p e a s a n t was f r e e d o f t i t h e s and o f some o t h e r t a x e s . Thus o c c u r r e d t h e rem oval o f th e ham pering r e l i g i o u s i n f l u e n c e s , f o llo w e d by th e a b o lish m e n t o f th e "Fez" and v e i l , and th e n t h e adop­ t i o n of th e S w it z e r la n d c i v i l c o d e , L a t in a lp h a b e t s , Wes­ t e r n num bers, G eo rg ia n c a le n d a r , and th e l i n g u i s t i c r efo rm a ­ t i o n , t h a t i s , r e p la c e m a n t o f A ra b ia n and P e r s ia n w o r d s , w hich w ere common among th e e d u c a te d p e o p l e , by T u r k ish . The T u rk ish woman who u se d to l i v e a s a p r is o n e r a t home, and under th e v e i l and o u t e r garm ent on th e s t r e e t , w as g iv e n r i g h t s e q u a l w ith man. She can now go t o s c h o o l , e n t e r any p r o f e s s i o n s h e l i k e s , work in any govern m ent o f f i c e s , and h a s th e r i g h t to v o t e and be a r e p r e s e n t a t i v e i n th e Grand N a t io n a l A sse m b ly , and a c a n d id a te f o r an y m u n ic ip a l o ffic e . T h ese s o c i a l and p o l i t i c a l ch a n g es in Turkey a r e summed by an A m erican a u th o r: i n M s book t i t l e d o f C o n t in e n ta l Europe" i n w h ich h e s t a t e s : "Governm ents " th e r e i s no more s t r i k i n g c h a p te r i n th e h i s t o r y o f p o l i t i c s th a n t h a t o f t h e t r a n s fo r m a tio n o f Turkey in our own tim e from a 29 q u a s i - f e d e r a l r e g i m e , b a s e d on t h e m i l i t a r y o c c u p a t i o n of conquered t e r r i t o r y , t o a m o dern s t a t e ” . 22 The new e d u c a t i o n a l s y s t e m i s r e a c h i n g a s t e a d i l y i n c r e a s in g p r o p o r t io n of Turkey’ s p o p u la tio n . I n 1924 t h e p e r c e n t a g e o f e d u c a t e d p e o p l e was a b o u t 5 p e r c e n t . A f t e r t h e a d o p t i o n o f L a t i n c h a r a c t e r s on November 1 , 1 9 2 8 , t h i s f i g u r e r o s e and w a s 16 p e r c e n t by 1 9 3 5 . I t is e s t i m a t e d t h a t i t - r e a c h e d and e x c e e d e d 40 p e r c e n t i n 1 9 4 5 . D e s p i t e g r e a t e f f o r t s made by t h e g o v e r n m e n t , t h e m a j o r i t y of t h e P e a s a n t s w h o , l i v e i n s m a l l v i l l a g e s a r e still illite rate . T h i s i s one o f t h e g r e a t e s t o b s t a c l e s to p r o p e r development i n t h e a g r i c u l t u r e of t h e c o u n t r y . I n 1940 T u r k i s h f a r m f a m i l i e s l i v e d i n 3 4 , 0 2 4 v i l l a g e s , which 26,221 each had a p o p u l a t i o n o f l e s s th a n 500. 9 , 1 9 8 o f t h e v i l l a g e s had s c h o o l s . of Only In view of t h i s - f a c t , a law e n a c t e d i n 1940 p r o v i d e s t h a t f i f t e e n - y e a r o l d f a r m g irls and b o y s who h a v e a l r e a d y c o m p l e t e d t h e f i v e y e a r s ’ c o u r s e a t a v i l l a g e s c h o o l be s e n t t o v i l l a g e i n s t i t u t e s f o r f i v e more y e a r s t o s t u d y s u c h t h i n g s a s a p p l i e d m o dern m ethods of f a rm in g , h a n d i c r a f t , and n u r s i n g . I n 1945 t h e r e w e r e o v e r 1 5 , 0 0 0 s t u d e n t s and a n a v e r a g e o f 3 , 0 0 0 a r e t h u s b e i n g g r a d u a t e d e a c h y e a r f r o m 21 i n s t i t u t e s . The G o v e r n ­ ment P l a n i s t h a t by 1950 e v e r y v i l l a g e w i l l h a v e i t s own S h o t w e l l , l a m e s 'f. G o v e r n m e n ts of C o n t i n e n t a l E u r o p e , New Y o r k , 1 9 4 6 , p . 3 1 . 30 s c h o o l w i t h a t r a i n e d t e a c h e r t o e d u c a t e f a r m c h i l d r e n and t a k e an a c t i v e a n d i n t i m a t e p a r t i n i m o r o v i n g f a r m l i f e in the c o u n tr y . I n a d d i t i o n t o t h e V i l l a g e I n s t i t u t e s . , by a law e n ­ a c t e d i n 1 9 4 3 t h e Mi&ifetry of A g r i c u l t u r e w a s a u t h o r i z e d to e s t a b l i s h t e c h n ic a l a g r i c u l t u r a l s c h o o ls wherever i t deemed n e c e s s a r y . By t h i s l e g i s l a t i o n , f a r m b o y s who g r a d u a t e from p rim a ry s c h o o l a r e s e n t t o t h e s e s c h o o l s f o r t h r e e y e a r s ’ study of e i t h e r p r a c t i c a l h o r t i c u l t u r e o r g e n e ra l ag ricu ltu re. Boys t r a i n e d a t t h e s e s c h o o l s a r e t o b e f u r ­ nished w ith a l l t h e modern a g r i c u l t u r a l e q u i p m e n t , a m odel f a r m h o u s e and l a n d t o f a r m . T h e s e t r a i n e d young f a r m e r s , when t h e y go b a c k t o t h e i r v i l l a g e s , a r e t o f o l l o w modern fa rm in g methods s u i t a b l e t o t h e i r d i s t r i c t s u n d e r t h e a d v ic e o f c o u n t y a g e n t s , so a s t o be g u i d e s t o t h e b e t t e r m e n t of th eir v illag es. At p r e s e n t t h e r e a r e s e v e n t e c h n i c a l a g r i ­ c u l t u r a l s c h o o l s i n t h e c o u n t r y , two f o r h o r t i c u l t u r e and fiv e for general a g ric u ltu re . B e s i d e s t h e s e s c h o o l s , t h e r e a r e two s c h o o l s f o r a g r i c u l t u r a l m a c h i n e r y , f o u r a g r i c u l t u r a l h i g h s c h o o l s , and an I n s t i t u t e o f A g r i c u l t u r e ( U n i v e r s i t y ) w h ic h c o n s i s t s of five fa c u ltie s ( s c h o o l s ) , nam ely, a g r i c u l t u r e , v e t e r i n a r y m e d ic in e , f o r e s t r y , a g r i c u l t u r a l i n d u s t r y , and n a t u r a l s c i e n c e . ^ R e p u b l i c o f T u r k e y , M i n i s t r y of E d u c a t i o n , E d u c a t i o n i n T u rk e y , A n k a ra , 1946, p p. 3 , 4 , 15. 31 F u r t h e r m o r e , t h e r e a r e a number o f a g r i c u l t u r a l e x p e r i m e n t s t a ti o n s , n u r s e r ie s , s t a t e farm s, stu d -farm s for h o rse s, c a t t l e and s h e e p , p e s t a n d p l a n t c o n t r o l s t a t i o n s , and so f o r t h , o p e ra ted throughout the c o u n try . T hes e e s t a b l i s h m e n t s a r e u n d e r t h e c o n t r o l of t h e M i n i s t r y of A g r i c u l t u r e t o h e l p i n one way o r a n o t h e r t o i m p r o v e f a r m e d u c a t i o n and p r a c t i c e s i n Turkey. 32 CHAPTER IV AGRICULTURAL PRODUCTION C e r e a ls S in c e Turkey p o s s e s s e s a v a r i e t y o f c lim a t e s and s o i l s , many k in d s and ty p e s of a g r i c u l t u r a l p r o d u c ts a r e grown i n th e c o u n tr y . Among th e c r o p s , c e r e a l p r o d u c tio n i s b y f a r th e m ost im p o r ta n t a g r i c u l t u r a l e n t e r p r i s e i n T urkey, from b o th an econom ic and s o c i a l s t a n d p o in t . 88 p e r c e n t o f th e la n d under f i e l d About c r o p s i s p la n te d to c e r e a l s . C e r e a l p r o d u c tio n em p loys a la r g e p o r t io n o f th e p o p u la t io n , and b r e a d and o t h e r c e r e a l p r o d u c ts c o n s t i t u t e an im p o r ta n t e le m en t in th e c o u n t r y 's d i e t . In 1943 c e r e a l s p r o v id e d 33 p e r c e n t o f th e n a t i o n a l incom e and 59 p e r c e n t o f th e a g r i c u l t u r a l incom e o f 'fur k e y . W heat; Among a l l th e p r o d u c ts c u l t i v a t e d i n Turkey w h eat h o ld s a le a d in g p o s i t i o n i n r e s p e c t t o b o th a c r e a g e and p r o d u c t io n . The a r e a sown t o w h ea t in c r e a s e d from an a v e r ­ age o f 2 ,8 4 1 ,0 0 0 h e c t a r e s i n 1 9 2 6 -3 0 t o 3 ,6 2 3 ,0 0 0 h e c t a r e s in 1 9 3 5 -3 9 . I n 1941 i t r e a c h e d 4 ,3 9 4 ,0 0 0 h e c t a r e s . For th e same p e r io d s p r o d u c tio n w a s 2 ,1 5 0 ,0 0 0 , and 3 ,7 0 8 ,0 0 0 to n s r e s p e c t i v e l y , w h ile i n 1941 i t in c r e a s e d t o 4 ,3 9 4 ,0 0 0 24 to n s. I n a c r e a g e , o v e r 50 p e r c e n t o f th e t o t a l a r e a under fie ld c r o p s c o n s i s t s o f w h e a t. 2 4 The to n r e f e r r e d to i s th e m e t r ic t o n , e q u a l to 2 ,2 0 4 p o u n d s, s e e a p p e n d ix , T ab le I . 33 A t th e same tim e y i e l d s p er h e c t a r e a l s o showed an in c r e a s e from 760 kg t o 1023 k ilo g r a m s (o r from 11 to 15 b u s h e ls t o th e a c r e ) . The r a p id e x p a n s io n o f w heat p r o d u c tio n in Turkey was b ro u g h t a b o u t by v a r io u s govern m en tal m e a s u r e s . F ir s t, h ig h t a r i f f s im posed on w heat i n 1929 d is c o u r a g e d im p o r ts. S e d o n d ly , e x t e n s io n o f r a il r o a d c o n s t r u c t io n t o th e w h eat a r e a s en co u ra g ed d o m e stic p r o d u c tio n . T h ir d , governm ent a id w as g iv e n t o f a im e r s th ro u g h lo w c o s t p r o d u c tio n c r e d i t , f r e e d i s t r i b u t i o n o f c e r t i f i e d s e e d s , and modern a g r i c u l t u r a l eq u ip m en t; and m ost im p o r ta n t, th e p u r c h a se o f w heat by th e S t a t e A g r i c u lt u r a l Bank a t a p r i c e w e l l i n e x c e s s o f w orld q u o t a t io n s . T hese f a c t o r s a l l c o n t r ib u t e d to th e i n ­ c r e a s e in w heat p r o d u c tio n to su ch an e x t e n t t h a t Turkey h a s changed from a w h e a t-im p o r tin g t o a w h e a t-e x p o r tin g coun­ try . Wheat i s grown in a lm o st a l l p a r t s o f T u rk ey, b u t th e p r i n c i p a l p r o d u cin g c e n t e r i s the C e n tr a l P la t e a u . About 3 5 -4 0 p e r c e n t o f the c o u n t r y ’ s w h eat i s p rod u ced in t h i s r e g io n . B a r le y : Of c e r e a l c r o p s , b a r l e y i s se c o n d to w h e a t, u t i l i z i n g ab ou t 26 p e r c e n t o f t h e sown la n d . T u rk ish b a r l e y , b e c a u se o f i t s h ig h d e g r e e o f g e r m in a tio n , h a s a go o d m arket in Europe and i s w e l l a d a p ted f o r th e m an u factu re o f m a lt u sed 34 i n th e brew in g in d u s t r y . The p r o d u c tio n o f b a r le y a l s o showed a c o n s id e r a b le in c r e a s e . In 1 9 2 6 -3 0 th e a v e r a g e p r o d u c tio n w as 1 ,2 4 0 ,0 0 0 to n s from 1 ,3 9 8 ,0 0 0 h e c t a r e s . By 1 9 3 5 -3 9 p r o d u c tio n r o s e t o 2 ,0 7 5 ,0 0 0 t o n s produ ced from 1 ,8 5 5 ,0 0 0 h e c t a r e s . In 1940 b o th a c r e a g e and p r o d u c tio n r e a c h e d an a l l - t i m e h ig h , — 2 ,0 9 2 ,0 0 0 t o n s from 2 ,2 4 9 ,0 0 0 h e c t a r e s . S in c e t h e n , h o w ev er, th e tr e n d h a s tu rn ed downward b e c a u se o f th e h ig h demand f o r and p r i c e o f w h ea t. B a r le y i s a l s o grown everyw h ere in T urkey. But th e p r i n c i p a l p r o d u cin g c e n t e r s a r e C e n tr a l P la t e a u and W estern A n a t o lia . C orn: T u rk ey’ s B la ck S ea r e g io n p r o v id e s f a v o r a b le c o n d i­ t i o n s f o r co rn g r o w in g . The tr e n d in co rn p r o d u c tio n h a s showed a c o n s id e r a b le in c r e a s e i n l a t e y e a r s . P r o d u c tio n in c r e a s e d from 4 4 6 ,0 0 0 t o n s from 3 4 1 ,0 0 0 h e c t a r e s i n 1 9 2 6 30 to 5 8 7 ,0 0 0 t o n s from 4 4 8 ,0 0 0 h e c t a r e s i n 1 9 3 5 - 3 9 . A l l th e p r o d u c tio n i s consumed d o m e s t id a lly . O ther C e r e a ls : B e s id e s t h e s e c e r e a l c r o p s , r y e , o a t s , m i l l e t , r i c e , and ca n a ry s e e d a l s o a r e p rod u ced i n Turkey i n c o n s id e r a b le am ounts. The annual a v e r a g e o f a l l t h e s e c r o p s f o r th e p e r io d 1 9 3 5 -9 was 9 3 4 ,0 0 0 t o n s p rod u ced from 9 8 5 ,0 0 0 h e c t a r e s . 35 B u t, as f a r a s e x p o r t tr a d e i s c o n c e r n e d , th e m o st im p o rta n t i s canary se e d . Turkey i s one of th e le a d in g c o u n t r i e s w hich p rod u ce t h i s c r o p . I n 1 9 3 5 -3 9 th e a v e r a g e y e a r ly p ro ­ d u c tio n w as 1 5 ,2 6 3 to n s p rod u ced fro m 2 2 ,5 0 0 h e c t a r e s . th an 75 p e r c e n t o f t h e crop w as e x p o r t e d , one o f th e "best f e e d s f o r c h ic k e n s . More ^ t i s known a s B ut w ith th e o u tb r e a k o f World War I I , p r o d u c tio n d e c r e a s e d so d r a s t i c a l l y t h a t in 1945 t h e ca n a ry s e e d o u tp u t w as o n ly 222 t o n s . Crops f o r I n d u s t r i a l U se Of th e s o - c a l l e d i n d u s t r i a l p l a n t s , th e m ost im p o r t­ a n t a r e t o b a c c o , c o t t o n , su g a r b e e t s , opium , se sa m e , a n i s e , f l a x , and hemp. I n 1 9 3 5 -3 9 th e a r e a c o v e r e d by i n d u s t r i a l p l a n t s w as 6 0 0 ,0 0 0 h e c t a r e s , w h ich w as 7 .6 p e r c e n t o f th e t o t a l la n d u n d er f i e l d c r o p s . T o b a cco : Among th e i n d u s t r i a l c r o p s , no dou bt th e m ost im p o r t­ a n t in r e s p e c t to e x p o r t tr a d e i s t o b a c c o . 1 7 th c e n tu r y to b a c c o was unknown i n T u rk ey. P r io r t o th e I t was f i r s t b ro u g h t t o Turkey from th e U n ite d S t a t e s by way o f I n d ia in 1610. B u t, f o r a b o u t 80 y e a r s no p r o d u c tio n o f to b a c c o to o k p l a c e , b e c a u se i t s con su m p tion i n any fo rm w as p r o h ib it e d end v i o l a t i o n o f th e la w was p u n is h a b le by d e a th . 25M in is t e r e de l ’ i n t e r i e u r , La T u rc u ie C on tem p orain e, A nkara, 1 9 3 5 , p . 9 4 . 36 As f o r e i g n tr a d e becam e an im p o r ta n t f a c t o r in th e c o u n tr y * s economy th e p r o h i b i t i o n w as rem oved by th e O tto ­ man Government i n 1690 w h ich s u b s t it u t e d a t a x on to b a c c o f o r rev en u e p u r p o s e s . A s c u l t i v a t i o n c o n t in u e d , th e p r o d u c t a c q u ir e d e n ­ t i r e l y new q u a l i t i e s so d i f f e r e n t from t h o s e of th e A m eri­ can p r o d u ct t h a t a d i s t i n c t ty p e d e v e lo p e d . As to b a c c o grew in im p o rta n ce i n th e e x p o r t tr a d e o f ■‘•‘u r k e y , th e G overn­ ment f e a r e d i t s s u c c e s s f u l t r a n s p la n t a t io n to c o u n t r ie s p o s s e s s in g a s i m i l a r c li m a t e , w hich w ould d e p r iv e th e cou n ­ t r y o f one o f i t s m ost im p o r ta n t a s s e t s . T h e r e fo r e , th e e x p o r t a t io n o f to b a c c o s e e d w as s t r i c t l y p r o h i b it e d . De­ s p i t e th e p r o h i b i t i o n , a t v a r io u s t im e s se e d was sm uggled o u t o f t h e c o u n tr y and t r a n s p la n t e d t o S ou th A m erica , th e P h i l i p p i n e s , and th e U n ite d S t a t e s . Even i n one i n s t a n c e , th e p r o m o ter s i n ^ ou th A m erica went so f a r a s t o t r a n s p o r t l a r g e q u a n t i t i e s o f s o i l from t h e Samsun p r o d u c in g d i s t r i c t in o r d e r t h a t th e s e e d l i n g m ig h t h ave a s t a r t in n a t i v e c o n d itio n s . But i n e v e r y c a s e such e f f o r t s p ro v ed f r u i t ­ l e s s , f o r the c o m b in a tio n o f T u rk ish c lim a t e and s o i l con ­ d i t i o n s c o u ld n o t be d u p lic a t e d i n o th e r c o u n t r i e s . N ever­ t h e l e s s , t e s t s s t i l l are g o in g on i n th e m ountanous s e c t i o n s o f w e s te r n N orth C a r o lin a . T here a r e th r e e p r i n c i p a l to b a c c o r e g io n s i n T urkey! The B la ck S e a r e g io n grow s th e m ost fam ous t y p e s o f t o b a c c o , w ith sm a ll l e a v e s , l i g h t r e d i n c o l o r , sw e e t and v e r y f r a g - 37 r a n t. The p r i n c i p a l p r o d u c in g c e n te r in t h i s a r e a i s th e d i s t r i c t o f S am su n .26 The Marmara S e a r e g i o n , w here l i g h t r e d t y p e s are grown m a in ly f o r p l a n t in g p u r p o s e s . The A egean S e a r e g io n where th e b e s t v a r i e t i e s a r e p rod u ced in and around Iz m ir {Smyrna) h a v in g a l i g h t r e d c o l o r , w it h e x c e l l e n t f l a v o r and f i n e arom a. T hese t h r e e r e g io n s p r o ­ duce a lm o s t a l l th e e x p o r ta b le to b a c c o o f T urkey. S o u t h e a s te r n T u rk ey, p a r t i c u l a r l y th e d i s t r i c t o f G a z ia n te b , p r o d u c e s v e r y s t r o n g , h ig h n i c o t i n e c o n te n t t o ­ bacco. it T iiis ty p e i s e x p o r te d t o th e A ra b ia n S t a t e s , w h ere i s smoked i n w a te r p i p e s . The a v e ra g e p r o d u c t io n o f to b a c c o in 1 9 2 6 -3 0 was 5 0 ,2 5 0 t o n s ( 1 1 0 .5 m i l l i o n l b s . ) . I t d e c r e a s e d t o 3 4 ,0 0 0 to n s i n 1 9 3 1 -3 5 b e c a u se o f t h e w o r ld econ om ic d e p r e s s i o n . I n th e f o l l o w i n g 5 -y e a r p e r io d , 1 9 3 6 - 4 0 , p r o d u c tio n in c r e a s e d t o an a v e r a g e o f 6 7 ,3 0 0 t o n s from 8 3 ,4 0 0 h e c t a r e s , w h il e i t dropped to 5 7 ,9 0 0 to n s from 7 9 ,0 0 0 h e c t a r e s i n 1 9 4 1 -4 5 . P r o d u c tio n , under t h e d i r e c t i o n o f th e S t a t e T obacco M onopoly, i s c a r r ie d on by sm a ll p r o d u c e r s , num bering 1 3 5 ,0 0 0 , w it h an a v e r a g e a c r e a g e o f 6 .2 d e k a r s ( 1 .5 2 acrew ) p e r grow er i n 1 9 3 6 - 4 0 .27 D u rin g th e same p e r io d th e to b a c c o y i e l d a v e ra g e d 809 kg p e r h e c t a r e (7 2 5 l b s . t o t h e a c r e ) , £6«S ee map. 27 F ig u r e s c a l c u l a t e d from t h e q u a r t e r ly b u l l e t i n o f th e Banque C e n tr a le de l a R ep u b liq u e d e T u r q u ie , N o. 6 0 . A nkara, 1 9 4 7 , p . 1 3 8 . 38 a s com pared w ith 908 kg i n the U n ite d S t a t e s f o r th e same 28 p e r io d . H ow ever, c o n s id e r in g l e a v e s , T u rk ish to b a c c o i s much s m a lle r th a n t h a t o fa n y A m erican t o b a c c o . I t i s ex­ tr e m e ly til i n , more th a n 1 ,0 0 0 d r ie d l e a v e s w e ig h in g o n ly 500 gram s. I n to b a c c o p r o d u c tio n Turkey ranR s t h i r d i n Europe and s e v e n th i n th e w o rld a f t e r th e U n ite d S t a t e s , I n d i a , C h in a , R u s s ia , G r e e c e , and B r a z i l . H ow ever, i t s y e a r l y p r o d u c tio n o f 6 7 ,0 0 0 to n s i s n e g l i g i b l e a lo n g s id e th e U n ite d S t a t e s 1 6 5 0 ,0 0 0 t o n s or I n d ia n s 5 5 5 ,0 0 0 .29 T u rk ey’ s S h are in w o r ld to b a c c o p r o d u c tio n i s o n ly 3 p e r c e n t , bu t i t s v a lu e and im p o r ta n c e i n w orld tr a d e i s much g r e a t e r . C o tto n : Of th e i n d u s t r i a l p l a n t s c o t t o n p r o d u c tio n i s a n o th e r im p o r ta n t a g r i c u l t u r a l e n t e r p r i s e i n T u rk ey. c e n t o f th e t i l l a b l e About 3 p e r ­ la n d , or 44 p e r c e n t o f th e amount o f la n d under i n d u s t r i a l p l a n t s , i s p la n t e d t o c o t t o n . Its. in t r o d u c t io n t o th e c o u n t r y ’ s a g r ic u l t u r e g o e s b ack to th e 1850’ s . The A m erican C i v i l War in 1 8 6 1 -6 5 g a v e t o T urk ey, a s w e l l a s E g y p t, a g r e a t o p p o r tu n it y t o expand th e c o t t o n ^ U n l e s s o t h e r w is e m e n tio n e d , a l l th e f i g u r e s on t h e U n ite d S t a t e s w ere c o m p ile d or c a l c u l a t e d fro m th e A g r ic u l­ t u r a l S t a t i s t i c s . I T .S .0 .A ., W ash in gton , 1 9 4 6 . T h is com p arison and t h e f o l l o w i n g a r e b a sed upon d a ta ta k e n fro m th e I n t e r n a t i o n a l Y earbook o f A g r i c u lt u r a l S t a t i s t i c s . I n t e r n a t i o n a l I n s t i t u t e o f A g r i c u l t u r e , Rome, 1 9 4 0 . 39 in d u s t r y . 30 D u rin g t h a t war E uropean n a t i o n s , n o t a b ly G reat B r i t a i n , c o u ld n o t im p o r t c o t t o n from th e U n ite d S ta te s. A t t h a t tim e E n g la n d , in o rd er t o m eet i t s n e e d s f o r i t s g ro w in g t e x t i l e i n d u s t r y , tu r n e d t o E g y p t and Tur­ key. 'I'hus th e g r e a t demand f o r c o t t o n r e s u l t e d i n a t e n ­ f o ld in c r e a s e in th e a rea p la n te d . C o tto n p r o d u c t io n , h o w ev er, d e c li n e d f o l l o w i n g th e end o f th e A m erican C i v i l War, and c o n tin u e d f u r t h e r t o d e c r e a s e a s a r e s u l t o f many T u rk ish W ars, p a r t i c u l a r l y o f t h e World War I , and th e War o f T u rk ish In d e p e n d e n c e . A f t e r t h e e s t a b lis h m e n t o f th e R e p u b lic a n r e g im e i n 1 9 2 3 , t h e new Government made many a tte m p ts t o expand and im prove c o t t o n p r o d u c tio n in th e c o u n tr y . Three c o t t o n e x p e r im e n ta l s t a t i o n s w ere s e t up t o i n v e s t i g a t e th e m ost s u i t a b l e ty p e s o f s e e d s . A m erican v a r i e t i e s o f A c a la and C le v e la n d have b e e n in t r o d u c e d . T h ese v a r i e t i e s a r e q u i t e s a t i s f a c t o r y . As a r e s u l t o f c o n tin u o u s en cou ragem en t and d i r e c t h e lp by th e governm ent and t h e e s t a b lis h m e n t o f th e d o m e s tic t e x t i l e i n d u s t r y , a l a r g e in c r e a s e in c o t t o n p r o d u c tio n was b r o u g h t a b o u t. F or e x a m p le, f o r t h e p e r io d 1 9 2 4 -1 9 2 8 ab ou t 1 8 ,0 0 0 t o n s was p rod u ced a n n u a lly on 4 0 ,0 0 0 h e c t a r e s . By 1 9 2 9 -1 9 3 3 t h e a v e r a g e crop had in c r e a s e d t o 4 5 ,0 0 0 t o n s from 1 9 9 ,0 0 0 h e c t a r s , show ing a y i e l d o f 225 kg t o th e h e c t a r e . D u rin g th e p a s t d e c a d e , h o w ev er, b o th p r o d u c tio n and a c r e a g e in c r e a s e d f u r t h e r th r o u g h govern m ent en co u r a g em en t. I n th e 3 0 J . R u s s e l l S m ith , I n d u s t r i a l and Com m ercial G eog­ r a p h y , New Y ork, 1 9 4 6 , p . 6 8 9 . 40 5 - y e a r p e r i o d 1935-1939 p r o d u c t i o n r o s e 60,000 t o n s from 868,000 h e c t a r e s , show in g a y i e l d o f 223 k g t o t h e h e c t a r e , c o m pared to a n a v e r a g e of 251 kg i n t h e U n i t e d S t a t e s f o r 31 t h e same p e r i o d . At p r e s e n t s e v e r a l d i s t r i c t s g r o w c o t t o n . But t h e ' p r i n c i p a l p r o d u c i n g c e n t e r s a r e A da na a n d M e r s i n i n t h e s o u t h on t h e M e d i t e r r a n e a n c o a s t , an d A y d i n , M a n i s a , and I z m i r in th e w est. The s o u t h e r n d i s t r i c t s u p p l i e s a b o u t t w o - t h i r d s of t h e c o u n t r y ’ s t o t a l c o t t o n p r o d u c t i o n . A c c o r d i n g t o a s t u d y made by t h e g o v e r n m e n t , t h e r e are over 1 m i l l i o n h e c ta r e s of la n d s u i t a b l e f o r c o tto n grow ing, o f which 8 00,000 h e c t a r e s a re l o c a t e d i n t h e d i s ­ t r i c t s of A d a na and M e r s i n i n t h e C i l i c i a n P l a i n s . ® 2 With more i r r i g a t i o n and w i t h y i e l d a n d v a r i e t y i m p r o v e m e n t s i t i s e s t i m a t e d t h a t Turkey c o u ld p ro d u c e o v e r 600,000 t o n s (3 m i l l i o n b a l e s ) a y e a r a n d w o u l d r a n k f o u r t h among t h e c o tt o n growing n a t i o n s of th e w o rld . at p resent, 33 In c o tto n production Turkey r a n k s second t o R u s s ia i n E u ro p e , and te n t h in the w o rld , a f t e r U nited S t a t e s , I n d ia , R u s s ia , C h i n a , E g y p t , B r a z i l , P e r u , A r g e n t i n a , a nd M e x i c o . H o w ev e r, ^ C a l c u l a t e d from t h e A g r i c u l t u r a l S t a t i s t i c s , U .S.D .A . W ashington, 1945, p . 70. ®2L a T u r q u i e C o n t e m p o r a i r e , o £ . c i t 1 p . 102. ®®In 1 9 3 5 - 3 9 t h e U n i t e d S t a t e s r a n k e d f i r s t w i t h 1 3 . 1 m i l l i o n b a l e s , I n d i a second w i t h 4 .6 ,: R u s s ia t h i r d w ith 3 .4 m i l l i o n , C hina, 2 .7 , Egyut 1 . 9 . ( A g r i c u l t u r a l S t a t i s t i c s , U.S.D.A. W a s h ., 1945, p . 7 2 - 7 3 ) . .41 Turkey’ s sh a re i n the world c o tt o n p ro d u c tio n i s only a little over 1 p e r c e n t. Sugar B e e ts : T u r k e y h a s s o i l s end c l i m a t e w h i c h c a n b e u s e d f o r 34 t h e p r o d u c t i o n o f b o t h cane, and b e e t s u g a r . N o .atten tio n . was g i v e n t o g r o w i n g them i n t h e c o u n t r y d u r i n g t h e p e r i o d u n d e r t h e . O ttom an E m p i r e . I t was in 1926, th r e e y e a r s a f ­ t e r t h e e s t a b l i s h m e n t o f th e R e p u b l i c a n G o v e r n m e n t , t h a t su g a r b e e t s , which have b e e n c u l t i v a t e d i n E u ro p ean c o u n t r i e s s i n c e 1 8 0 0 , were i n t r o d u c e d i n t o T u r k i s h a g r i c u l t u r e . Since th e n sugar b e e t c u l t u r e h a s been s u c c e s s f u l l y p r a c t i c e d i n Turkey. A l a r g e home m a r k e t , h i g h t a r i f f , a n d b o u n t i e s t o growers a re th e p r i n c i p a l f a c t o r s i n b u i l d i n g up t h i s indus­ t r y in a v e ry s h o r t tim e. The y e a r l y p r o d u c t i o n o f s u g a r b e e t s w a s 1 0 8 , 0 0 0 t o n s , produced from th e use of 13,862 h e c t a r e s f o r th e p e rio d 1 9 2 8 -1 9 3 2 .^ The a v e r a g e c r o p i n c r e a s e d t o 3 9 4 , 0 0 0 t o n s i n 1 9 3 5 - 1 9 3 9 , f r o m 2 5 , 0 0 0 h e c t a r e s , s ha v in g , a y i e l d of 1 5 . 4 to n s to th e h e c t a r e , c o m p a r e d w ith 25.7 to n s i n th e U nited S ta te s.^ Ho w ever, t h e su g a r c o n te n t of T u rk ish b e e t s i s *^At p r e s e n t two c o u n t r i e s i n t h e w o r l d , U n i t e d S t a t e s a nd T u r k e y , p r o d u c e b o t h b e e t a n d e e n e s u g a r . 25R e p u b l i q u e T u r q u e , M i n i s t e r e de L ’ i n t e r i e u r , L a T u r q u i e en c h i f f r e , A n k a r a 1 9 3 7 , p . 7 3 . rZ£ C a l c u l a t e d f r o m t h e q u a r t e r l y b u l l e t i n Banque C e n t r a l de l a T u r q u i e , No. 6 0 , A n k a r a , 1 9 4 7 , p . 7 3. ^ C a l c u l a t e d f r o m t h e A g r i c u l t u r a l S t a t i s t i c s , Wash­ in g to n , 1945, p . 87. 42 one o f th e h i g h e s t i n th e w o r ld , r a n g in g from 18 to 22 p e r ce n t. D e s p it e th e r a p id e x p a n s io n i n b o th a c r e a g e end o u tp u t o f su gar b e e t s , p r o d u c tio n d o e s n o t s a t i s f y r e q u ir e m e n ts . d o m e stic I n f a c t the amount o f su g a r p r o d u c tio n was 9 6 ,5 8 7 to n s i n 1 9 4 6 . W ith th e im p o rted s u g a r , p er c a p i t a co n su m p tion w as o n ly 7 .5 kg in 1 9 4 6 , com pared w it h 55 k g . in Denmark, 47 i n th e U n ite d S t a t e s , 8 .7 i n I t a l y , 4 in 38 Y u g o s la v ia , and 2 in C h in a. One o f th e r e a s o n s f o r th e low co n su m p tion i s t h a t th e p r i c e o f su g a r i s v e r y h ig h b e c a u se o f th e h ig h con su m p tion t a x . It is s t ill c o n s id e r e d as a lu x u r y fo o d i n th e n a t i o n ’ s d i e t . The Government p la n s t o b u i ld fo u r more r e f i n e r i e s in th e C i l i c i a n P l a i n s . T h is a rea i s p a r t i c u l a r l y s u i t a b l e f o r su g a r cane p r o d u c tio n . H is t o r i c r em a in s show t h a t su g a r cane was p r o b a b ly b r o u g h t t o t h i s s e c t i o n , from I n d i a , i n th e n in t h c e n tu r y and p r o c e s s e d i n t o s u g a r . B ut no p ro d u c ­ t i o n on a l a r g e s c a l e o c cu re d u n t i l th e p r e s e n t tim e . S in c e p r o d u c tio n c o s t s f o r ca n e su gar a r e g e n e r a l l y much lo w e r th a n f o r b e e t s u g a r , th e governm ent b e l i e v e s t h a t t h i s w i l l h e lp t o b r in g the p r i c e o f su g a r down c o n s id ­ e r a b ly , and th u s i n c r e a s e co n su m p tio n . I t i s e s t im a t e d t h a t a f t e r t h e e s t a b lis h m e n t o f ^ C o n v e r te d from th e R ep ort o f th e F .A . 0 . P r e p a r a to r y Com m ission on World F ood P r o p o s a ls , W ash in gton , 1 9 4 7 , p . 8 1 . 43 t h e s e f a c t o r i e s T u r k e y 's y e a r l y su g a r o u tp u t (b o th cane and b e e t ) w i l l r e a c h 1 6 0 ,0 0 0 t o 1 8 0 ,0 0 0 t o n s . The p r e s e n t su g a r s u p p ly m e e ts a b o u t 65 p e r c e n t of th e n a t i o n ' s demand. Sugar b e e t s can be p rod u ced in s e v e r a l p a r t s o f th e c o u n tr y . H ow ever, b e c a u se of th e t r a n s p o r t a t i o n d i f f i c u l ­ t i e s t h e p r e s e n t p r o d u cin g a r e a s a r e l o c a t e d o n ly n e a r su g a r r e fin e r ie s . The p r o d u c tio n o f su g a r i n Turkey p r o v id e s and im p o r t­ a n t so u r c e o f govern m ent r e v e n u e . S in c e 1940 o v e r 50 p e r ­ c e n t o f t h e p r i c e p a id by t h e consum er h a s gone t o th e s t a t e in t h e form o f con su m p tion t a x . lir a s I n 1 9 4 4 -4 5 , 8 0 .2 m i l l i o n (a b o u t 64 m i l l i o n d o l l a r s ) w as c o l l e c t e d i n t a x e s on s u g a r . T h is r e p r e s e n t e d 6 . 3 p e r c e n t o f th e n a t i o n a l revenu e. The su g a r in d u s tr y i s a govern m ent m o n o p o ly . o f b e e t s are f i x e d a t the b e g in n in g o f e a ch s e a s o n . P r ic e s Each grow er h a s t o s ig n a c o n t r a c t sh ow ing how much la n d i s to be c u l t i v a t e d . S e e d i s p ro d u ced on s t a t e farm s and d i s t r i b u t ­ ed t o g r o w e r s f r e e . F ig h t in g p e s t s and d i s e a s e s i s c a r r ie d on by th e m on op oly. Opium; Turkey r a n k s a s one o f th e w o r ld 's l e a d in g p r o d u c e r s o f opium f o r m e d ic a l u s e . in T urkey. In a l l p r o b a b i l i t y i t o r ig i n a t e d 44 P r io r t o 1 9 2 9 ab ou t 500 t o 600 to n s of crude opium w ere p rod u ced a n n u a lly from 3 0 ,0 0 0 t o 5 0 ,0 0 0 h e c t a r e s . In 1925, h o w ev er, a w o r ld -w id e cam paign t o r e s t r i c t opium p r o d u c tio n and tr a d e to m e d ic a l u s e s o n ly w a s b e g u n . K in a l ly an a g r e e ­ m ent t o r e s t r i c t th e p r o d u c tio n o f opium was r e a c h e d by th e m a j o r it y o f th e L eague o f N a tio n s i n Geneva i n 1 9 3 1 . T hereupon, th e T u rk ish Government to o k o v e r c o n t r o l o f p r o ­ d u c tio n and tr a d e o f opium i n th e c o u n tr y . S in c e th e n b o th a c r e a g e and p r o d u c tio n h a v e d e c r e a s e d d r a s t i c a l l y . In 1 9 2 9 -3 3 th e an n u al p r o d u c tio n was 382 to n s o f crude opium and 1 2 ,8 0 7 to n s o f s e e d , p rod u ced fro m th e u s e o f 4 2 ,6 6 9 h e c ta r e s. By 1 9 3 5 -3 9 th e ann ual a v e r a g e cru d e opium and se e d w ere 282 and 1 ,1 8 5 t o n s , r e s p e c t i v e l y , fro m 2 9 ,4 5 2 h e c ta r e s. S in c e 1940 p r o d u c tio n d e c r e a s e d f u r t h e r t o an a v e r a g e o f 218 to n s i n 1 9 4 0 - 4 4 , w h ile in 1945 i t w as o n ly 108 t o n s . The p r i n c i p a l p r o d u c in g c e n t e r s a re A fyon (w h ich m eans "opium" in T u r k is h ) , Am asya, I z m ir , and M a la ty a . S esa m e: Sesam e i s c u l t i v a t e d l a r g e l y i n th e s o u th e r n and w e s te r n d i s t r i c t s of th e c o u n tr y . I t h a s shown a c o n s id e r a b le in c r e a s e in o u tp u t and y i e l d in r e c e n t y e a r s . In 1 9 3 5 -3 9 p r o d u c tio n a v e r a g e d 2 8 ,9 0 0 to n s from 6 5 ,3 0 0 h e c t a r e s . i n c r e a s e d to 4 3 ,4 0 0 t o n s from 7 9 ,8 0 0 h e c t a r e s i n 1 9 4 0 . It 45 Sesam e i s p rod u ced m a in ly f o r i t s o i l . I ts o il cake h a s a good m arket i n N e th e r la n d s , B e lg iu m , an d th e U n ited S t a t e s , w here i t i s used f o r f e e d in g c h ic k e n s . I n sesam e p r o d u c t io n Turkey ra n k s f i r s t i n Europe end f o u r th i n th e w o rld a f t e r C h in a , I n d ia ,/a n d Burma. A ni s e : A n is e i s grown f o r use in t h e p r e p a r a tio n o f seme m e d ic a l p r o d u c ts and i n f l a v o r i n g th e c o u n t r y ’ s m ost popu­ l a r d r in k , c a l l e d " r a k i" . The ann ual p r o d u c tio n a v e r a g e d 1 m i l l i o n kg fro m 1 ,8 0 0 h e c t a r e s i n the p e r io d 1 9 5 5 - 5 9 . I t in c r e a s e d to 4 . 5 m i l l i o n kg i n 1 9 4 0 . Turkey i s th e l e a d in g c o u n t r ie s i n th e w o r ld p ro d u cin g t h i s one o f cro p . The p r i n c i p a l p r o d u cin g c e n te r i s w e s te r n A n a t o li a . F la x : F la x i s c u l t i v a t e d f o r i t s f i b e r and s e e d , th e se d d b e in g u se d in o i l p r o d u c tio n . The p r i n c i p a l p r o d u c in g c e n ­ t e r s are K o c a e li, Z on gu ld ak , S in o p , and I s t a n b u l . In 1 9 3 5 -3 9 th e a v e r a g e y e a r ly p r o d u c tio n w as 3 ,0 7 2 t o n s o f f i b e r and 8 ,8 4 2 t o n s o f s e e d , fro m 1 9 ,4 1 1 h e c t a r e s . o f th e l o c a l t e x t i l e The h ig h demand in d u s t r y , and Government a id and en ­ couragem ent have b ro u g h t about a c o n s id e r a b le i n c r e a s e i n b o th a c r e a g e and p r o d u c tio n in r e c e n t y e a r s . In 1940 f l a x s e e d and f i b e r amounted t o 1 7 ,5 3 3 and 1 1 , 146 t o n s r e s p e c ­ tiv e ly . A t p r e s e n t ■‘■urkey’ s sh a r e i n w o r ld p r o d u c tio n i s n e g lig ib le . 46 Hemp: Hemp i s a n o th e r p la n t grown f o r i t s f i b e r and s e e d . The p r i n c i p a l p r o d u c in g c e n t e r s a r e I z m ir , K astam onu, Ordu, and B urdur. In 1 9 3 5 -3 9 p r o d u c tio n a v e r a g e d 8 ,1 7 0 t o n s o f f i b e r and 2 ,3 0 5 t o n s o f s e e d , fro m th e u s e o f 1 2 ,1 4 7 h e c t a r e s . In hemp f i b e r Turkey h o l d s f o u r t h p la c e in Europe a f t e r R u s s ia , P o la n d , and I t a l y , and e ig h t h i n th e w o r ld . J u te : J u te was in tr o d u c e d i n t o T u rk ey’ s a g r i c u l t u r e in th e 1930’ s. B ut th e r e i s no p r o d u c tio n w o rth m e n tio n in g a s y e t . P o ta to e s: P o t a t o e s f o r fo o d a r e grown i n a l l p a r t s o f th e coun­ try . H ow ever, t h e p r i n c i p a l p r o d u cin g a r e a s are th e B la ck S e a and Marmara r e g i o n s . D u ring th e l a s t d ec a d e p o t a t o p r o d u c tio n h a s in c r e a s e d c o n s id e r a b ly . The a v e r a g e p ro d u c­ t i o n was 1 8 0 ,7 0 0 t o n s from 5 4 ,7 0 0 h e c t a r e s i n 1 9 3 5 - 3 9 . I t r e a c h e d 3 1 9 ,0 0 0 t o n s in 1 9 4 0 . L egum inous Crops Legumes occu p y a b o u t 7 p e r c e n t o f t h e t o t a l t i l l a b l e la n d o f T urkey. The p r i n c i p a l le g u m e s p rod u ced a r e b e a n s , v e t c h e s , c h ic k p e a s , and o th e r p e a s , so y b e a n s , and p e a n u t s . A fe w o f t h e s e c r o p s e n t e r f o r e i g n tr a d e i n s m a ll am ou n ts. They p la y an im p o rta n t p a r t in th e n a t i o n a l d i e t . 47 I n 1 9 3 5 -2 9 th e a v e ra g e a r e a under legu m es amounted t o 3 9 2 ,0 0 0 h e c t a r e s , o f w hich v e t c h e s o c c u p ie d 1 1 8 ,0 0 0 h e c ­ t a r e s (a b o u t 30 p e r c e n t ) . S in c e 1939 a c o n s id e r a b le i n c r e a s e h a s o c c u r r e d in b o th a c r e a g e and p r o d u c tio n o f b ea n s and p e a s b e c a u s e of a h ig h demand f o r t h e s e p r o d u c ts to f e e d la r g e num bers o f s o l d i e r s i n th e c o u n tr y . The t o t a l o u tp u t o f a l l leg u m es in c r e a s e d from 3 1 8 ,7 0 0 to n s in 1 9 3 5 -3 9 to 3 7 1 ,6 0 0 t o n s i n 1 9 4 1 .39 S o y b ea n s a re a p r o d u c t o f o n ly th e l a s t d ec a d e i n T u rk ey. There a r e , h o w ev er, s u i t a b l e grow in g c o n d it io n s f o r t h i s cro p i n T u rk ey, and i t s p r o d u c tio n i s i n c r e a s i n g s te a d ily . F r u i t s and N u ts Turkey h a s b e e n known a s a p a r a d is e o f h o r t i c u l t u r a l p r o d u cts. As in th e c a s e of t o b a c c o , T u rk ish f r u i t s , f r e s h and d r i e d , h ave a w o r ld -w id e r e p u t a t i o n . A c c o r d in g t o t h e s c i e n c e o f f r u i t c u l t u r e , a b o u t 110 d i f f e r e n t s p e c i e s o f f r u i t s , e d i b l e i n one form or a n o t h e r , a r e grown to d a y i n d i f f e r e n t z o n e s o f th e w o r ld . A- b o u t 65 o u t o f a 110 k in d s , in c lu d in g a lm o st a l l t h e f r u i t s e n t e r in g w orld tr a d e c h a n n e ls , are p rod u ced i n T u rk ey. It i s n o t th e p u rp o se o f t h i s work t o en um erate t h e s e p a r t i c u l a r v a r ie tie s . 39 H ow ever, f r u i t s w h ich a r e p la y in g an im p o r ta n t S o y b ea n s and p e a n u ts n o t in c lu d e d . 48 r o l e i n t h e c o u n t r y ’ s e x p o r t tr a d e a r e , in o r d e r o f t h e i r im p o r ta n c e , f i l b e r t s , r a i s i n s , f i g s , o liv e s , p is ta c h io n u t s , a lm on d s, c h e s t n u t s , w a ln u t s , and o r a n g e s . O ther f r u i t s w h ich are p ro d u ced i n c o n s id e r a b le q u a n t i t i e s , such a s a p p l e s , p e a r s , c h e r r i e s , b e r r i e s , q u in c e s , p o m e g r a n a te s, p lu m s, b a n a n a s , t a n g e r i n e s , and lem on s a re consum ed o n ly d o m e s tic a lly . H ow ever, t h i s d o e s n o t mean t h a t t h e y w i l l rem ain f o r e v e r s o . th a t I s , Im provem ents i n m a rk etin g f a c i l i t i e s , t r a n s p o r t a t i o n , s t a n d a r d i z a t i o n , s t o r a g e , p a c k in g , and p a c k a g in g , and above a l l , o r g a n iz a t io n may p e r m it some o f th e se f r u i t s to e n te r in to in te r n a tio n a l tr a d e . At p r e s e n t 1 . 8 p e r c e n t o f th e t o t a l a r e a i s under h o r tic u ltu r a l c r o p s. They c o m p r ise f i v e p e r c e n t o f th e n a t io n a l incom e o r a b o u t 13 p e r c e n t o f t h e a g r i c u l t u r a l . 40 H a z e ln u t s : Turkey i s t h e w o r ld ’ s l a r g e s t p r o d u c e r o f h a z e ln u t s (filb e r ts ). P r o d u c tio n i s c o n c e n tr a te d i n t h e e a s t e r n r e g io n s o f th e -^lack S e a w here c lim a t e and s o i l c o n d i t i o n s a r e v e r y f a v o r a b le t o i t s g r o w th . The h a z e ln u t o r ig i n a t e d i n t h i s r e g i o n and l a t e r was in tr o d u c e d i n t o I t a l y , S p a in , and th e U n ite d S t a t e s . The a r e a under h a z i l n u t s i s e s t im a te d a t a b o u t 1 5 0 ,0 0 0 h e c ta r e s. Annual p r o d u c tio n a v e r a g e d 6 0 ,3 0 0 t o n s d u rin g th e 5 - y e a r p e r io d 1 9 3 5 -3 9 compared w ith 2 4 ,3 0 0 t o n s i n S p a in , 4 0 T u rk ive M i l l i G e l i r l . |>£. C i t . , p . 64 49 2 1 ,7 0 0 i n I t a l y and 2 ,2 0 0 to n s i n th e U n ite d S t a t e s . In o t h e r w o r d s , Turkey p r o d u c e s o v e r h a l f o f th e w o r ld ’ s h a z e l ­ n u ts. H ow ever, b e c a u s e o f p o o r c a r e and th e s u s c e p t i b i l i t y t o f th e b e a r in g isr ee s to w e a th e r c o n d i t i o n s , t h e s i z e of t h e f i l b e r t crop f l u c t u a t e s w id e ly fro m y e a r t o y e a r . F or i n s t a n c e , i n 1938 p r o d u c tio n was 2 6 ,1 0 0 t o n s , w h ile th e f o l ­ lo w in g y e a r i t amounted t o 7 4 ,8 0 0 t o n s . G ra p es: G rapes a r e a n o th e r im p o r ta n t ite m i n t h e a g r ic u l t u r e and e x p o r t tr a d e of T urkey. th r o u g h o u t th e c o u n t r y . They a r e grown e x t e n s i v e l y Here a g a in the s o i l and c l i m a t i c c o n d i t i o n s a r e th e p r i n c i p a l f a c t o r s t h a t e n a b le d Turkey t o p ro d u ce g r a p e s o f a v e r y d e l i g h t f u l f l a v o r and th e f i n e s t q u a l i t y in th e w o r ld . G rapes o ccu p y a b o u t 34 p e r c e n t o f t h e la n d under t r e e and bush c r o p s , s u r p a s s e s o n ly by o l i v e s . In 1944 th e a c r e a g e p la n te d i n v in e y a r d s w as 4 7 3 ,0 0 0 h e c t a r e s . In v in e y a r d a r e a Turkey ra n k s t h i r d among th e g r a p e grow in g n a t i o n s in t h e w o r ld su r p a ss e d o n ly by I t a l y and F r a n c e . P r o d u c tio n c o n s i s t s o f v a r i e t i e s o f w in e , t a b l e , and s e e d l e s s g r a p e s , t h e l a t t e r b e in g th e m ost im p o r ta n t in t h e c o u n t r y 's e x p o r t t r a d e . In g e n e r a l , w in e g r a p e s a r e grown i n th e s h e l t e r e d v a l l e y s o f C e n tr a l P la t e a u , and around th e Marmara S e a . The w o r l d ' s f i n e s t t a b l e g r a p e s , nam ely R a z a k i, T chavou ch , and M is k e t , a r e p rod u ced i n th e 50 A egean and Marmara r e g i o n s . S e e d l e s s v a r i e t i e s a r e grown in t h e A egean r e g i o n , w here t h e y a r e d r ie d f o r e x p o r t. A bout 90 p e r c e n t o f r a i s i n p r o d u c tio n o f Turkey t a k e s p la c e in th e d i s t r i c t s o f Mamisa and I z m ir . T urkey*s a v e r a g e y e a r ly r a i s i n p r o d u c tio n w as 6 8 ,0 0 0 to n s f o r th e p e r io d o f 1 9 3 5 - 3 9 . I t ra n k ed secon d in th e w o r ld , s u r p a s s e d o n ly by th e U n ite d S t a t e s w ith i t s a v e r a g e o f 2 0 0 ,0 0 0 t o n s , and f o llo w e d by A u s t r a l i a . A t p r e s e n t th e s e e d l e s s y i e l d p e r h e c ta r e i s r a t h e r lo w , a v e r a g in g 2 .2 t o n s , compared w ith an a v e r a g e o f 1 0 .5 t o n s f o r th e S t a t e o f C a l i f o r n i a . In grap e p r o d u c tio n T urkey’ s p o s s i b i l i t i e s a r e v e r y g r ea t, if Turkey co u ld move g r a p e s q u ic k ly t o w o r ld mar­ k e t s and new and r e g u la r m a rk ets c o u ld b e d e v e lo p e d , Tur­ k ey m ig h t rank se c o n d t o I t a l y . In f a c t , one o f t h e Ger­ man e c o n o m is ts who was a d i r e c t o r o f th e I . G. F arb en in d u s t r y and who s t u d ie d th e econom ic p o t e n t i a l i t i e s o f Tur­ k ey c h a r a c t e r iz e d th e c o u n tr y by t t a t i n g , " I f Turkey d id n o t p ro d u ce a n y th in g b u t g r a p e s th e p o s s i b i l i t i e s of h e r grap e p r o d u c tio n w ould s u f f i c e t o maKe h er one o f th e w e a l t h i e s t c o u n t r i e s i n th e w o r ld . F ig s : A f t e r I t a l y , Turkey i s th e l a r g e s t p r o d u ce r o f f i g s 41 John P a r k e r , Modern T u rk ey, London, 1 9 4 0 , p . 9 3 . 51 in the w orld. However, c o n s i d e r i n g t h e Smyrna t y p e of f i g s w h i c h i s t h e b e s t known and t h e m o st w i d e l y u s e d i n t h e w o r l d m a r k e t s , T u r k e y r a n k s f i r s t b o t h i n a c r e a g e and p r o ­ du ction. It is b e lie v e d th a t f ig s o rig in a te d in A n a to lia, and fro m t h e r e t h e y s p r e a d t o the o t h e r M e d i te r r a n e a n c o u n tr ie s and the U nited S t a t e s . The a r e a u n d e r f i g c u l t u r e i s e s t i m a t e d a t a b o u t 5 0 , 0 0 0 h e c t a r e s w i t h o v e r 4 m i l l i o n t r e e s , 80 p e r c e n t o f which a r e i n th e Aegean r e g i o n . P r o d u c t i o n o f Smyrna f i g s has rem ained p r a c t i c a l l y s t a t i o n a r y in t h e p a s t d e ca d e. ' The a v e r a g e o u t p u t f o r t h e p e r i o d 1 9 3 5 - 3 9 was 5 3 , 5 0 0 t o n s o f w h i c h a b o u t 1 0 - 1 5 p e r c e n t was consumed, d o m e s t i c a l l y . The T u r k i s h f i g p r o d u c t i o n i s h e a v i l y c o n c e n t r a t e d i n t h e d i s t r i c t s o f A y d i n , I z m i r , and I l u g l a vdiere t h e a r e a p l a n t e d i s e s t i m a t e d a t ab ou t 32,000 h e c t a r e s . In g e n e r a l T u rk ish f i g s have a h ig h su g a r c o n t e n t , a l i g h t and e x t r e m e l y t h i n s k i n and a h e a v y w e i g h t . The p r i n c i p a l c o m m e r c i a l v a r i e t i e s a r e S a r i l o p , Uok l o p , and C engelci ( th e h e n g u e ld j e ) . F o r commercial p u r p o s e s d r i e d f i g s are c l a s s i f i e d i n t o f i v e g r a d e s , according to t h e i r q u a l i t y and s i z e . O lives: O l i v e s and o l i v e o i l a r e o t h e r i m p o r t a n t i t e m s i n the a g r i c u l t u r e and e x p o r t t r a d e of Turkey. Olive produc- 52 tio n , c h a r a c t e r i s t i c of a l l M e d ite r r a n e a n c o u n t r i e s , i s p r a c t i c e d e x t e n s i v e l y on t h e h i l l s l o p e s o f t h e Marm ara, Aegean, and M e d ite rra n e a n r e g i o n s . The o l i v e ' t r e e , i s one o f t h e r a r e t r e e s w h i c h n e e d no r e p l a c e m e n t . E ven i f th e t r e e i s d e s t r o y e d or c u t , r o o t s p r o v i d e a t r u n k f o r a new t r e e . its T herefore, an o liv e ■tree l a s t s f o r c e n t u r i e s . The a r e a . u n d e r o l i v e s i s a b o u t 3 5 0 , 0 0 0 h e c t a r e s . In a d d i t i o n to t h i s , w ild o liv e s . Turkey h a s a b o u t 200,000 h e c t a r e s of They a r e of some s i g n i f i c a n c e i n t h e p r o d u c t i o n of o i l . I n r e c e n t y e a r s p r o d u c t i o n h a s i n c r e a s e d from an a v e ra g e of 1 5 8 ,0 0 0 to n s i n 1929-34 to 237,000 to n s i n 1 955-39, t h u s m a k i n g T u r k e y o ne o f t h e w o r l d ' s p r i n c i p a l o l i v e p r o ­ d u c in g n a t i o n s . Turkey r a n k s t h i r d i n a c r e a g e and f i f t h of o l iv e s in th e w orld. in p ro d u c tio n How ever, g r e a t e f f o r t s h a v e b e e n made b y t h e G ov e rn m e nt t o b r i n g w i l d t r e e s i n t o p r o d u c t i o n . F o r t h i s p u r p o s e a l a w was p a s s e d i n 1 9 2 9 . ,J- h i s l a w p r o ­ v i d e s f o r i n d i v i d u a l s t o g r a f t a s many t r e e s a s t h e y w a n t f o r t h e i r own u s e s . A fter g ra ftin g and c e r t a i n o t h e r c a r e s a r e t a k e n and t h e l a n d f e n c e d , i n d i v i d u a l s a r e g i v e n t h e r i g h t of ow nership. Thus i t i s b e l i e v e d t h a t i n t h e n e x t d e c a d e s Turkey w i l l i n c r e a s e h e r sh a re of the w o rld p ro d u c ­ tio n in o liv e s . 53 A lth o u g h th e o l i v e c o n s t i t u t e s an im p o r ta n t elem en t in th e d i e t o f th e p e o p le i n T urkey, i t s m ain im p o rta n ce l i e s in th e o i l w h ich i s d e r iv e d from i t . On th e a v e r a g e , T u r k e y 's an n u al p r o d u c tio n o f o l i v e o i l i s 3 6 ,8 0 0 t o n s . In o l i v e o i l p r o d u c tio n Turkey h o ld s f i f t h by S p a in , I t a l y , G r e e c e , and P o r t u g a l. p l a c e , su r p a ss e d Turkey p r o d u ces ab ou t 6 p e r c e n t o f th e w o r ld 's o l i v e o i l o u tp u t. As i t i s in d ic a t e d a b o v e , a lth o u g h o l i v e t r e e s a r e grown in t h e Marmara, A e g ea n , and M ed ite rr a n e a n r e g i o n s , th e h e a v i e s t p r o d u c tio n i s c o n c e n tr a te d i n th e d i s t r i c t s o f B a l i k e s i r , I z m ir , C an a k k a le, A y d in , and M ugla, a l l on th e A egean S e a . T h is th e o l i v e s , and 8 0 -8 5 s e c t i o n p r o d u c e s a b o u t 75 p e r c e n t o f p e r c e n t o f th e o l i v e o i l s o f th e c o u n tr y . In o l i v e c u l t u r e T u r k e y 's p o s s i b i l i t i e s a re v e r y g r e a t. R e a l iz in g t h i s f a c t , a s p e c i a l o r g a n iz a t io n w as s e t up t o expand and im prove p o r d u c tio n i n th e c o u n tr y . P is ta c h io n u t s : Turkey i s th e w o r ld 's l a r g e s t p r o d u ce r of p i s t a c h i o n u ts. M arash. They a r e grown i n t h e d i s t r i c t s o f G a zia n te b and There a r e o v e r 3 m i l l i o n t r e e s in th e c o u n tr y . In a d d i t i o n , t h e r e i s a la r g e a r e a under w i l d p i s t a c h i o n u ts. The govern m en t program i s t o g r a f t and b r in g them i n t o p r o d u c tio n i n a s h o r t t im e . The p r e s e n t y e a r l y p r o d u c tio n i s a b o u t 8 ,0 0 0 t o n s , 54 m ost o f w h ich i s e x p o r te d . C itr u s f r u i t s ; The. d i f f e r e n t c l i m a t i c c o n d it io n s fo u n d in Turkey p e r m it th e grow th o f o r a n g e s , t a n g e r i n e s , lem o n s, and g r a p e ­ f r u i t i n t h e c o u n tr y . P r o d u c tio n o f t h e s e f r u i t s i s con ­ c e n t r a t e d i n th e c o a s t a l a r e a s o f th e M e d ite r r a n e a n , A egean , and th e n o r t h e a s t e r n B la ck S ea r e g i o n s . B ecau se o f a h ig h f o r e i g n and d o m e stic demand, t h i s branch of a g r ic u l t u r e i s d e v e lo p in g r a p i d l y . In 1940 th e r e w ere some 1 . 6 m i l l i o n o ran ge t r e e s , 4 1 4 ,0 0 0 t a n g e r in e s and 2 5 7 ,0 0 0 lem o n s. P ro­ d u c tio n i n th e same y e a r amounted to 237 m i l l i o n o r a n g e s , 63 m i l l i o n t a n g e r in e s and 37 m i l l i o n le m o n s. Only a sm a ll p o r t io n o f th e o r a n g e s a r e e x p o r te d . O ther F r u i t s and N u ts; W a ln u ts; A lth o u g h w a ln u ts a r e grown in a lm o st e v e r y p a r t of T u rk ey, th e crop i s o f s p e c i a l im p o r ta n c e i n t h e d i s t r i c t s o f K astam onu, M a la ty a , T o k a t, and Z on gu ld ak . P r o d u c tio n a v e ra g e d 5 6 ,0 0 0 to n s i n 1 9 3 7 -4 1 from 2 .2 m i l l i o n tr e e s. A lm onds; Almonds are c o n c e n tr a te d i n th e A egean , Marmara, and s o u th e r n r e g i o n s . In 1 9 3 7 -4 1 th e a v e r a g e p r o ­ d u c t io n was 1 3 ,0 0 0 t o n s h a r v e s te d from 1 .9 m i.lli.a n t r e e s . C h e s t n u ts ; The p r i n c i p a l p r o d u c in g r e g io n s are n e a r th e Marmara and B la ck S e a . P r o d u c tio n a v e r a g e d 1 6 ,6 0 0 to n s 55 from 760,000 t r e e s . A pples: A pples a r e produced a l l o v e r the c o u n tr y . Ho w ev er, t h e m o s t i m p o r t a n t p r o d u c i n g c e n t e r s a r e Amasya, N i g d e , M a l a t y a , K a s t a m o n u , an d I z m i t . During th e p e rio d 1937-41 p r o d u c t i o n a v e r a g e d 96,000 to n s from 6 .4 m i l l i o n trees. Pears: in Turkey, P e a r growing i s a l s o w id e s p re a d everywhere However, th e p r i n c i p a l d i s t r i c t s a r e A n k a ra, M a l a t y a , - T o k a t , Kumushane, a n d K a s ta m o n u . The a v e r a g e p r o ­ d u c t i o n f o r t h e p e r i o d 1 9 3 7 - 4 1 was 7 2 , 0 0 0 t o n s h a r v e s t e d from 5 .8 m i l l i o n t r e e s . A p rico ts: The p r i n i c p a l a p r i c o t g r o w i n g c e n t e r s a r e l o c a t e d i n t h e s h e l t e r e d v a l l e y s of C e n t r a l P l a t e a u , e s p e c i a l l y in th e d i s t r i c t s o f M alatya, E rzin ca n , K a y se ri, D iyarbakir, and G a z i a n t e b . I n 1937-41 p r o d u c t i o n a v e ra g e d 17,000 to n s from 2 .2 m i l l i o n t r e e s . Peaches: Peaches a re produced p r i n c i p a l l y in th e d i s ­ t r i c t s o f B u r s a , D i y a r b a k i r , I z m i r , and o t h e r p l a c e s a l o n g t h e A e gea n a n d M e d i t e r r a n e a n r e g i o n s . E o r t h e p e r i o d 1 9 3 7- 41 p r o d u c t i o n a v e r a g e d 9 , 9 0 0 t o n s f r o m 8 6 5 , 0 0 0 t r e e s . C h erries: C h e r r i e s , b o t h s w e e t and s o u r , a r e grown everywhere in Turkey. H o w ev e r, t h e m o s t i m p o r t a n t p r o d u c ­ i n g a r e a s a r e t h e Marmara and A e g e a n . I n 1937-41 p r o d u c tio n a v e ra g e d 33,400 to n s fro m 2.7 m i l l i o n t r e e s . 56 L ivestock L i v e s t o c k e n d l i v e s t o c k p r o d u c t s a l s o p l a y an im ­ p o r t a n t p a r t i n T u r k e y ’ s eco no m y . T u r k e y h a s b e e n known a s a l i v e s t o c k c o u n t r y , s i n c e 50 p e r c e n t of i t s a r e a c o n ­ s i s t s of g r a z i n g l a n d , p a s t u r e s and meadows. This does n o t mean t h a t t h e l i v e s t o c k i n d u s t r y h a s d e v e l o p e d a g r e a t d e a l . I n g e n e r a l , t h e p r o d u c t i v i t y of a n i m a l s i s v e r y l o w ; c a r e , f e e d i n g , a n d a n i m a l h o u s i n g c o n d i t i o n s a r e v e r y much n e g l e c t ­ ed. N evertheless, even under t h e s e v e ry p r i m i t i v e c ir c u m s ta n c e s , i n 1943 t h e s h a r e of l i v e s t o c k an d l i v e s t o c k p r o d u c t s i n t h e c o u n t r y ’ s n a t i o n a l income was 1 3 . 5 p e r c e n t , w h i l e i t 41 i s o n e f o u r t h of t h e a g r i c u l t u r a l i n c o m e . To im p r o v e t h e q u a l i t y o f l i v e s t o c k t h e Government s e t up a number o f s t u d - f a r m s , s t a l l i o n d e p o t s , l i v e s t o c k b r e e d i n g s t a t i o n s and b r o o d - b u l l e s t a b l i s h m e n t s . S cien tific m e a su re s t o d e v e lo p e v e r y s p e c i e s of anim al s e p a r a t e l y •have b e e n a d o p t e d . D i f f e r e n t r a c e s were s t u d i e d s e p a r a t e l y , f o llo w in g the r e s u l t s of th o se s t u d i e s a d e f i n i t e p l a n f o r i m p r o v e m e n t o f t h e c o u n t r y ’ s l i v e s t o c k i n d u s t r y was a d o p t e d . Today T u r k e y i s o n t h e way t o a c h i e v i n g t h i s modern a n d s c i e n t i f i c program . ^ T u r k l j r e M i l l ! G e l i r i , Op. G i t . , p . 6 4. 57 C attle: C a t t l e a r e r a i s e d c h i e f l y f o r m ilk and m eat produ c­ t i o n , hut also f o r use as d r a f t an im als. c a t t l e i n 1935 was 6 , 4 8 6 , 0 0 0 . by 1 9 4 0 . The number of I t in c r e a s e d t o 9,759,000 This r a t h e r sudden I n c r e a s e i n c a t t l e numbers was a d i r e c t r e s u l t o f Gov ern m en t a s s i s t a n c e i n e s t a b l i s h ­ i n g b r e e d i n g c e n t e r s and a p p l y i h g s a n i t a r y m e a s u r e s f o r t h e p r e v e n t i o n of c o n t a g i o u s d i s e a s e s among a n i m a l s . I n c a t t l e p o p u l a t i o n T u r k e y h a s a d e n s i t y , of 53 p e r sq u a re m i l e , compared w i t h 2 7 i n t h e U n ite d S t a t e s , an d 34 i n M i c h i g a n . Ho w ev er, f r o m t h e p r o d u c t i o n s t a n d ­ p o i n t t h e cows of T u r k e y a r e n o t c o m p a r a b l e w i t h t h o s e of the U n ited S t a t e s . In f a c t , the a v e ra g e m i l k p r o d u c t i o n p e r cow i n T u r k e y i s a b o u t 1200 l b s . , c o m p a r e d w i t h an a v e r a g e 4600 i n t h e U n i t e d S t a t e s o r 5500 i n M i c h i g a n . I n a d d i t i o n t o cows t h e r e w e re some 9 4 7 , 0 0 0 w a t e r b u f f a l o s i n 1940. They a r e u s e d f o r m i l k p r o d u c t i o n a s w e ll as f o r d r a f t anim als. In w ater b u ffa lo p o p u la tio n , Turkey r d n k s f i r s t i n Europe b u t n i n t h i n t h e w o r ld . Sheep: C o n d i t i o n s f o r r a i s i n g s h e e p a r e more s u i t a b l e t h a n f o r any o t h e r l i v e s t o c k i n T u r k e y . i s s c a t t e r e d throughout the country, Although sheep r a i s i n g i t i s a s p e c i a l t y of t h e f a r m e r s i n th e r e g i o n s o f the C e n tr a l P l a t e a u s and the E a s te rn H ighlands. They a r e grown f o r t h e i r wool an d m e a t . 58 But th e y a l s o f u r n i s h m ilk and s k in . w id e ly r a i s e d , ta ile d . Two v a r i e t i e s a r e (1 } horned and l o n g - t a i l e d , and (2 ) f a t - The form er i s b e in g r a is e d in th e w e s te r n d i s t r i c t s where p a s t u r e s a r e .r ic h ,, and t h e l a t t e r i n th e C e n tr a l and E a s te r n P la t e a u s where th e g r a z in g s e a s o n i s very sh o r t. S in c e by n a tu r e sh eep i n t h e l a t t e r r e g i o n s have a h eavy f a t - t a i l w e ig h in g 3 0 -4 5 p ou n d s, g a in e d d u rin g p a s tu r e se a so n th e y s u r v iv e th e w in t e r . The number o f sh eep h a s in c r e a s e d c o n s id e r a b ly . In 1935 t h e r e w ere 1 3 .6 m i l l i o n sheep i n T urkey, w h er ea s th e number r o s e t o 2 6 .3 m i l l i o n in 1940 and dropp ed t o 2 3 .4 m illio n in 1945. I n sh eep p o p u la tio n Turkey r a n k s t h i r d i n Europe a f t e r R u s s ia and G reat B r i t a i n , and e ig h t h in th e w o r ld . I n a d d i t io n to th e v a r i e t i e s m en tio n e d ab ove th e r e are some m e r in o s and k a r a k u l, w h ich w ere in tr o d u c e d i n t o th e c o u n tr y ’ s l i v e s t o c k in d u s t r y f o l l o w i n g th e e s t a b lis h m e n t o f the new r e g im e . The number of m e r in o s in c r e a s e d r a p id ly a f t e r th e f i r s t i n d u s t r i a l p la n w h ich r e q u ir e d ab ou t 2 ,0 0 0 to n s o f m erin o w ool a n n u a lly . I n 1940 t h e r e w ere 3 9 ,0 0 0 m erin o s h e e p , and by 1945 th e y r e a c h e d 1 1 6 ,0 0 0 . M ohair G o a t: The m ohair g o a t i s a n a t i v e o f T urkey. v e r y im p o r ta n t r o l e in th e econom ic l i f e th e C e n tr a l P la t e a u . I t p la y s a o f t h e fa r m e r s of In f a c t i t i s o n ly th r o u g h th e r a i s i n g o f th e m ohair g o a t t h a t i t i s p o s s i b l e to u t i l i z e m ost o f 59 t h e la n d in t h i s r e g i o n . The m ohair g o a t , or t h e s o - c a l l e d Ankara (Angora) g o a t i s r a i s e d e x c l u s i v e l y f o r i t s w o o l, w hich i s v e r y f i n e , s o f t and d u r a b le . T h is p r o d u c tio n was a m onopoly o f Turkey u n t i l 1 8 6 0 , and t h e r e w ere no g o a t s of t h i s , ty p e o u t s id e o f A n a t o l i a . tile B ut w ith th e d ev elo p m en t of t h e t e x ­ in d u s t r y i n E u ro p e, t h e demand f o r m ohair w ool went up s o v e r y h ig h t h a t T u rk ish p r o d u c tio n c o u ld n o t m eet th e r e q u ir e m e n ts . T h e r e fo r e , d ip lo m a tic p r e s s u r e w as b r o u g h t t o b e a r on Turkey b y G reat B r i t a i n . T h is p r e s s u r e f i n a l l y le d t h e S u lta n t o p r e s e n t a few m ohair g o a t s a s a g i f t t o th e B r i t i s h Am bassador t o b e s e n t t o S ou th A f r ic a f o r bw eedin g p u r p o s e s . F o llo w in g th e B r i t i s h ex a m p le, t h e U n ite d S t a t e s se c u r e d m ohair g o a t s fr o m Turkey i n 1898 and i n t r o ­ duced them i n t o T exas and th e W estern p l a i n s . In 1935 th e number o f m oh air g o a t s in Turkey w as 3 . 3 m i l l i o n , compared w ith 3 .6 m i l l i o n in th e U n ite d S t a t e s . I t in c r e a s e d t o 5 .5 m i l l i o n i n 1940 and dropp ed t o 4 m i l l i o n in 1945 . F or th e same y e a r s , th e r e w ere 4 . 3 and 4 . 4 m i l l i o n g o a t s i n th e U n ite d S t a t e s . B e s id e s m oh air g o a t s , t h e r e w ere 8 . 5 m i l l i o n common g o a ts in 19 35. T h eir number in c r e a s e d to 1 1 .4 m i l l i o n i n 1940 and 1 2 .2 m i l l i o n in 1 9 4 5 . They a r e r a i s e d f o r t h e i r m ilk and h a i r , a s w e l l a s f o r m eat and s k i n . I n conmon g o a t p o p u la t io n , Turkey ra n k s f i r s t in 60 E u ro p e, and t h i r d i n th e World a f t e r I n d ia and C h in a. H ow ever, a v ig o r o u s cam paign i s underway t o r e p la c e t h e s e g o a t s w ith more l u c r a t i v e sh eep o r c a t t l e , f o r th e y d e s tr o y t h e c o u n tr y ’ s f o r e s t s . T h is cam paign c o n s i s t s p r i n c i p a l l y o f a h eavy t a x on e a ch g o a t . I t i s b e l ie v e d t h a t th e com­ mon g o a t p o p u la t io n w i l l d e c r e a s e c o n s id e r a b ly a f t e r t h e s e m easu res. H o g s: S in c e t h e Moslem r e l i g i o n f o r b i d s th e e a t i n g o f p o r k , h o g s are n o t im p o rta n t i n T urkey. H ow ever, t h e y a r e r a i s e d on s t a t e fa r m s , and by non-M oslem fa r m e r s t o m e e t th e d e­ mand of f o r e i g n e r s l i v i n g in I s t a n b u l and A nkara. In 1945 t h e r e w ere some 5 ,0 0 0 h o g s in T urkey. P o u ltr y : T here i s no o r g a n iz e d p o u lt r y and e g g p r o d u c tio n i n T urk ey. T here e x i s t s p r a c t i c a l l y no la r g e f l o c k s . Each fa rm er r a i s e s a r e l a t i v e l y s m a ll number o f c h ic k e n s , r a n g in g from 10 to 1 5 . m e n tio n in g . There a r e no in c u b a to r s or h a t c h e r i e s w o r th The m ethod g e n e r a l l y em ployed i s n a t u r a l b ro o d ­ in g . In 1940 t h e r e w ere 1 8 .5 m i l l i o n c h ic k e n s and 1 . 3 m i l l i o n tu r k e y s i n T urk ey, o r 67 c h ic k e n s p e r sq u a r e m ile compared w it h 180 i n t h e U n ite d S t a t e s and 270 i n M ic h ig a n . For th e same y e a r egg p r o d u c tio n am ounted t o 9 1 .3 m i l l i o n 61 d o z e n s. A c e r t a i n a tte m p t h a s been made b y th e Government t o im prove and d e v e lo p th e p o u lt r y in d u s t r y . To t h i s e n d , a m odel p o u l t r y farm was e s t a b l i s h e d i n A nkara. A lth o u g h t h i s a c t i v i t y h a s b een g o in g on s in c e 1 9 3 4 , no in f lu e n c e on th e g e n e r a l p o u l t r y s i t u a t i o n cen b e o b s e r v e d . S e r ic u ltu r e : S e r i c u l t u r e p l a y s a s i g n i f i c a n t r o l e i n th e a g r i c u l ­ t u r a l economy o f some d i s t r i c t s . s u i t a b l e t o t h i s in d u s t r y . Turkey h a s l a r g e r e s o u r c e s In f a c t th e r e a r e o v e r 3 m i l l i o n m u lb erry t r e e s in th e c o u n tr y . In th e 1 8 5 0 ’ s Turkey w as one o f t h e l e a d in g c o u n t r ie s i n s e r i c u l t u r e in th e w o r ld . But l a t e r on t h e in d u s tr y d e c li n e d . te m p tin g to r e v iv e i t . The new reg im e i s a t ­ Tor t h i s p u rp o se a number o f s c h o o l s and e x p e r im e n t s t a t i o n s have been s e t u p . In 1940 th e t o t a l p r o d u c tio n w as o v e r 3 ,0 0 0 to n s p rod u ced b y 6 3 ,5 0 0 f a m i l i e s . O ther L i v e s t o c k : In 1945 t h e r e w e r e 9 7 7 ,0 0 0 h o r s e s , 8 8 ,0 0 0 m u le s , 1 0 8 ,0 0 0 c a m e ls , and 1 . 6 m i l l i o n a s s e s . In a s s p o p u la t io n Turkey h o ld s second n la e e i n th e w o r ld a f t e r C h in a. PART TWO TURKEY’ S FOREIGN TRADE IN AGRICULTURAL PRODUCTS 62 PART TWO TURKEY’ S FOREIGN TRADE F o r e ig n t r a d e h a s a lw a y s b e e n a prim e f a c t o r in T u rk ey’ s econom ic l i f e , e s p e c i a l l y s in c e th e d e m o lit io n o f h e r l o c a l h a n d ic r a f t i n d u s t r i e s i n th e wake o f th e European in d u s tr ia l r e v o lu tio n . A lth o u g h t h e n a t u r a l r e s o u r c e s o f Turkey w ere s u i t a b l e f o r i n d u s t r i a l i z a t i o n , Turkey d id n o t d e v e lo p i n d u s t r i a l l y a t t h e same tim e a s W estern n a t i o n s . The r e a s o n s f o r t h i s may b e fo u n d in th e c a p i t u l a t i o n s and c o n c e s s i o n s t o f o r e i g n e r s under th e Ottoman r u le w h ich w i l l be d is c u s s e d i n P a r t I I I . I t is s u f f i c i e n t t o sa y t h a t Turkey s o u g h t a d v a n ta g e i n f o r e i g n tr a d e p r im a r ily by p r o d u c in g a g r i c u l t u r a l raw m a t e r i a l s and f o o d s t u f f s . H i s t o r i c a l l y , •when a c o u n tr y ’ s tr a d e i s b a sed upon th e e x p o r t a t io n o f a g r i c u l t u r a l p r o d u c t s , w h ile im p o r tin g i n d u s t r i a l g o o d s , i t s f o r e i g n tr a d e i s s m a ll compared w ith the i n d u s t r i a l n a t i o n s . T h is i s tr u e i n th e c a s e o f T urkey. In f a c t , i n 1935 T u rk ey’ s sh a re i n th e t o t a l e x p o r t s o f Europe, was 0 .9 p e r c e n t , w h il e i n t h a t o f im p o r ts 0 . 6 p e r c e n t 1 T h is c o n t r a s t s w ith B elg iu m , w h ic h i s about one tw e n ty f i f t h t h e s i z e of Turkey and h a s no n a t u r a l r e s o u r c e s e x c e p t c o a l , b u t n e v e r t h e l e s s had a sh are o f 5 .4 p e r c e n t in e x p o r ts and 5 .2 i n E uropean i m p o r t s .2 T urkey’ s s h a r e i n t o t a l w orld ■'"League o f N a t io n s , E u ro p e’ s t r a d e . 2I b i d . , p . 1 6 . G eneva, 1 9 4 1 . p 16. 63 tr a d e i s an i n s i g n i f i c a n t f i g u r e of a b o u t 0 .3 5 p e r c e n t . N e v e r t h e le s s , w it h h er p e c u l ia r c lim a t e and s o i l s w h ich make p o s s i b l e th e p r o d u c tio n o f s p e c i a l i z e d a g r i c u l t u r a l p r o d u c t s , Turkey i s im p o r ta n t i n th e w o r ld tr a d e o f a c o n s id e r a b le v a r i e t y of p r o d u c ts . In o r d e r t o a n a ly z e p r o p e r ly T urkey’ s f o r e i g n tr a d e in a g r i c u l t u r a l p r o d u c ts i t i s n e c e s s a r y f i r s t to c o n s id e r th e s u b j e c t ' o f b a la n c e o f tr a d e of T urkey. CHAPTER V THE BALANCE OF FOREIGN TRADE The tr a d e b a la n c e o f T urkey, on a c c o u n t o f t h e d e­ p lo r a b le econ om ic c o n d it io n s u n der th e a h e a v y d e f i c i t , f o r a b ou t 80 y e a r s , s u l t a n a t e , showed -^t f i n a l l y r e a c h e d a b a la n c e i n f a v o r o f th e c o u n t r y , i n 1 9 3 0 , under th e Re­ p u b lic a n r e g im e . The t a b l e on th e n e x t p age p o r t r a y s th e d ev elo p m en t o f e x p o r ts and im p o r ts and th e b a la n c e o f f o r e i g n t r a d e o f Turkey from 1 9 2 3 t o 1 9 4 6 . In t h i s ta b le i t i s p o s s i b l e t o s e e m ost o f t h e e f ­ f e c t s o f th e n a t i o n a l and i n t e r n a t i o n a l econ om ic h a p p e n in g s. I n f a c t , i t i n d i c a t e s t h a t from 1923 t o 1 9 2 9 , d u rin g t h e 7 y e a r p e r io d o f th e new r e g im e , th e b a la n c e o f tr a d e was un­ f a v o r a b le t o T urkey. The b a la n c e o f tr a d e c o n tin u e d t o be u n fa v o r a b le b e c a u se T u rk ey’ s demand f o r f o r e i g n g o o d s was v e r y h ig h , s i n c e i t s econom ic r e s o u r c e s w ere e x h a u s te d and d e s t r o y e d d u rin g World War I and th e War of T u rk ish In d e p e n d en ce . The lo w t a r i f f r a t e s and. th e h ig h demand f o r f o r e i g n p r o ­ d u c ts p r e v a i l i n g i n 1 9 2 3 -2 9 h ave b r o u g h t a b o u t a c o n s id e r a b le i n c r e a s e i n im p o r ts o v e r e x p o r t s . T h is u n fa v o r a b le b a la n c e 3 o f tr a d e o f Turkey had b e e n c a r r ie d on s i n c e th e 1 8 5 0 ’ s . I n 1 9 2 9 , h o w ev er, a sh arp in c r e a s e i n im p o r ts r e s u l t e d i n a d e f i c i t of 101 m i l l i o n l i r a s in t h e b a l a n c e .4 T h is sudden ®See T ab le 15 i n a p p e n d ix , The B a la n ce o f Trade o f th e Ottoman U m pire. 4 From 1923 t o 1929 one T u rk ish L ir a w as e q u a l t o 50 c e n t s , from 1930 t o 1 9 3 2 , 47 c e n t s , and fro m 1 9 3 4 t o 1 9 4 6 , 80 c e n t s . S in c e 1946 i t h a s b e e n w o r th 35 c e n t s . S e e t a b l e 2 i n a p p e n d ix . 65 T able I : The B a la n c e of F o r e ig n Trade o f Turkey 1 9 2 3 -1 9 4 6 , ( i n 1 ,0 0 0 L ir a s ) Year E x p o r ts Im p o rts B a la n ce 1923 1924 1925 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 8 4 ,6 5 1 1 5 8 ,8 6 8 1 9 2 ,4 2 8 1 8 6 ,4 2 3 1 5 8 ,4 2 1 1 7 3 ,5 3 7 1 5 5 ,2 1 4 1 5 1 ,4 5 4 1 2 7 ,2 7 5 1 0 1 ,3 0 1 9 6 ,1 6 2 9 2 ,1 4 9 9 5 ,8 6 1 1 1 7 ,7 3 3 1 3 7 ,9 8 4 1 4 4 ,9 4 7 1 2 7 ,3 8 9 1 1 1 ,4 4 6 1 2 3 ,0 8 1 1 6 5 ,0 3 4 2 5 7 ,1 5 2 2 3 2 ,5 3 0 2 1 8 ,9 2 9 4 3 2 ,0 0 0 1 4 4 ,7 8 9 1 9 3 ,6 1 1 2 4 1 ,6 1 9 2 3 4 ,7 0 0 2 1 1 ,3 9 8 2 2 3 ,5 3 2 2 5 6 ,2 9 6 1 4 7 ,5 5 1 1 2 6 ,6 6 0 8 5 ,9 8 4 7 4 ,6 7 6 8 6 ,7 9 0 8 8 ,8 2 3 9 2 ,5 3 1 1 1 4 ,3 7 9 1 4 9 ,8 3 6 1 1 8 ,2 4 9 6 8 ,9 2 3 7 4 ,8 1 5 1 4 7 ,7 1 3 2 0 3 ,0 4 5 1 6 4 ,9 4 4 1 2 6 ,1 6 6 2 2 3 ,9 0 0 - 6 0 ,1 3 8 - 3 4 ,7 4 3 - 4 9 ,1 9 1 - 4 8 ,2 7 7 - 5 2 ,9 7 7 - 4 9 ,9 9 5 - 1 0 1 ,0 8 2 3 ,9 0 3 615 1 5 ,1 7 7 2 1 ,4 8 6 5 ,3 5 9 7 ,0 3 8 2 5 ,2 0 2 2 3 ,5 0 5 - 4 ,8 8 9 9 ,1 4 0 4 2 ,5 2 3 4 8 ,2 6 6 1 7 ,3 2 1 5 4 ,1 0 7 6 7 ,5 8 6 9 2 ,7 6 3 2 0 8 ,1 0 0 S o u r c e : C om piled from A nnuaire S t a t i s t i q u e , O f f ic e C e n tr a l de S t a t i s t i q u e , R ep u b liq u e Turque, A nkara. p o s i t i v e b a la n c e r e p r e s e n t s an e x c e s s of m erchan­ d i s e e x p o r t s , a m inus b a la n c e an e x c e s s of im p o r ts . 66 r i s e i n im p o r ts w as b e c a u s e im p o r te r s r e a l i z e d t h a t th e l o w - t a r i f f p e r io d w ould end i n 1 9 2 9 . T h e r e fo r e , th e y im­ p o r te d a s la r g e q u a n t i t i e s o f g o o d s a s p o s s i b l e a t th e o ld lo w r a t e s . Im p o rts in c r e a s e d t o an a l l - t i m e h ig h w ith a v a lu e o f 256 m i l l i o n l i r a s , and a s a r e s u l t a v e r y s t r o n g demand f o r f o r e i g n ex ch a n g e to o k p l a c e . B ecau se o f the l a r g e amount o f e x t e r n a l d e b t w h ich w as ta k e n o v er from th e Ottoman G overnm ent, Turkey w a s d e f i c i e n t in f o r e i g n exch ange. T h e r e fo r e , i n o r d e r t o m eet t h i s in c r e a s e d de­ mand th e s t r a i n upon th e l i r a was v e r y g r e a t . T h is s i t u a t i o n c r e a te d a v e r y s e v e r e c r i s i s w h ich marked th e b e g in n in g o f th e p e r io d o f d e p r e s s io n i n th e c o u n tr y . I t a ls o fo r c e d th e Government to ta k e s t r i c t m ea su r es o v e r im p o rts and c u r r e n c y , b e g in n in g i n 1 9 3 0 . As a r e s u l t o f th e im p o s it io n o f h ig h t a r i f f s upon im p o r ts and o th e r r e s t r i c t i v e m e a su r e s, t h e r e r e s u l t e d a tr a d e b a la n c e i n f a v o r o f th e c o u n tr y f o r th e f i r s t tim e i n a lm o st 80 y e a r s . T h is f a v o r a b l e b a la n c e w as r e s t o r e d in 1930 and m a in ta in e d u n t i l 1 9 3 8 , b u t was o n ly a c h ie v e d a r t i ­ fic ia lly * A f t e r 1930 im p o r ts c o n tin u e d t o d e c l i n e due t o th e im p o s it io n o f h ig h im p o r t d u t i e s and th e a p p l i c a t i o n o f th e q u o ta sy s te m on th e one h an d , and th e w o r ld econ om ic c r i s i s on t h e o t h e r . l ir a s in 1933. The im p o r ts dropped t o 7 4 .6 m i l l i o n I n 1 9 3 7 , h o w ev er, th e q u o ta sy ste m w as aban­ doned and t h i s c a u se d im p o r ts to r i s e t o 114 m i l l i o n l i r a s , o r an i n c r e a s e o f 24 p e r c e n t compared w ith th e p r e v io u s y e a r . 67 F u rth erm o re, on a c c o u n t o f th e im proved c o n d it io n s i n i n ­ t e r n a t i o n a l tr a d e f o l lo w in g 1 9 3 6 , th e Government l i f t e d some o f th e r e s t r i c t i o n s and f o llo w e d a somewhat more l i b e r ­ a l p o l i c y f o r im p o r ts . In 1938 im p o r ts in c r e a s e d f u r t h e r and e x c e e d e d e x ­ p o r t s and th u s p u t Turkey a g a in i n an u n fa v o r a b le b a la n c e o f tra d e. The f i v e - y e a r i n d u s t r i a l p la n and th e r a i l r o a d c o n s t r u c t io n p rogram , w h ich r e q u ir e d .th e im p o r tin g o f la r g e q u a n t i t i e s o f m a ch in ery and ir o n and s t e e l p r o d u c ts was th e m ain f a c t o r f o r in c r e a s e d im p o r ts i n 1 9 3 8 . D uring n e x t y e a r and t h e r e a f t e r Turkey m a in ta in e d a c r e d it - b a la n .c e , m a in ly b e c a u se of t h e w o r ld c o n f l i c t s w h ic h made im p o r ts o f in d u s ­ t r i a l goods v ery d i f f i c u l t . In f a c t , i n 1940 im p o r ts d e c r e a s - . ed s h a r p ly to a v a lu e t h a t w a s an a l l - t i m e lo w i n th e cou n ­ t r y ^ h is to r y . C o n d itio n s i n 1 9 4 2 -4 4 , h o w ev er, w ere im­ p ro v ed t o some e x t e n t , a s th e u n ite d S t a t e s e x te n d e d L endL e a se a id to Turkey b e g in n in g in 1 9 4 2 . E x p o r ts a l s o f o llo w e d a tr e n d s i m i la r t o t h a t shown by im p o r ts . P r io r to 1 9 3 $ , t h a t i s , under th e low t a r i f f s , T u rk ey’ s e x p o r ts moved a t r a th e r h ig h l e v e l s . They r e a c h e d 1 9 2 .4 m i l l i o n l i r a s i n 1 9 2 5 , w hich was t h e h i g h e s t f i g u r e in th e p e r io d 1 9 2 3 -4 0 . D uring th e w o rld econ om ic d e p r e s s io n , h o w ev er, th e p r i c e s o f a g r i c u l t u r a l com m od ities i n w o r ld m a rk ets f e l l o f f s h a r p ly due i n p a r t t o th e g e n e r a l r i s e o f tr a d e b a r r i e r s , and p a r t l y to th e r e d u c tio n o f consump­ t i o n in im p o r tin g European c o u n t r i e s , w hich had r e s u l t e d 68 from th e d e c r e a s e i n t h e i r p u r c h a s in g power. Since T urkey’ s e x p o r t t r a d e i s d e p e n d e n t upon t h e w e s t e r n a nd c e n t r a l E u r o p e a n m a r k e t s , t h e d e p r e s s e d e c o n o m ic c o n d i t i o n s p r e v a i l ­ in g i n 1929-1933 caused h e r e x p o r t s t o be d r a s t i c a l l y r e ­ duced. The v a l u e o f e x p o r t s d r o p p e d f r o m 1 7 3 . 5 m i l l i o n l i r a s i n 1928 t o 92 m i l l i o n i n 1 9 3 3 . I n 1935, th e t r e n d i n e x p o r t s t u r n e d u p , b u t t h e v a l u e was s t i l l v e r y l o w , am ount­ in g o n l y 't o 95.8 m i l l i o n l i r a s . A f t e r 1936, however, e x ­ p o r t s r e v i v e d a s t h e i n s t a l l m e n t s on e x t e r n a l d e b t w e r e p a id i n T u rk ish c u rre n c y i n s t e a d of i n f o r e i g n exchange. This f o r c e d f o r e i g n e r s t o p u rc h a s e T u rk ey ’ s p r o d u c t s f o r e x p o rt or t o r e i n v e s t t h e i n t e r e s t i n Turkey. Thus e x p o r t s c o n tin u e d to r i s e u n t i l 1938. w i t h t h e o u t b r e a k o f t h e w a r i n 1939 t h e t r e n d t u r n e d downward a g a i n , due p a r t l y t o t h e r e s t r i c t i o n s i n some e x p o r t a b l e p r o d u c t s w h i c h T u r k e y m i g h t n e e d i n c a s e of i n v o l v e m e n t i n t h e w a r , and p a r t l y t o a s e v e r e s h o r t a g e o f s h i p p i n g fac ilitie s. A f t e r 19 4 1 , h o w e v e r , e x p o r t s b e g a n t o i n c r e a s e owing t o t h e B r i t i s h P u r c h a s e s o f l a r g e q u a n t i t i e s of s u r ­ p l u s a g r i c u l t u r a l p r o d u c t s , namely, t o b a c c o , f i l b e r t s , r a i s i n s , and f i g s , w h i c h w e r e a t h i g h p r i c e s i n o r d e r t o k e e p T u r k e y f r o m t r a d i n g w i t h Germany. A nother f a c t o r con­ t r i b u t i n g t o t h e i n c r e a s e i n e x p o r t s was t h a t s h i p s b r i n g ­ i n g L end-L ease equipm ent t o Turkey p ro v id e d s h i p p i n g space f o r t h e e x p o r t s o f T u r k i s h p r o d u c t s , a m i n l y chrome o r e , t o b a c c o , v a l o n i a , l i c o r i c e r o o t a nd d r i e d f r u i t s , t o t h e 69 U nited S t a t e s . I n 1946 a t r e m e n d o u s i n c r e a s e i n the v a l u e s of b o t h e x p o rts and im p o rts took p l a c e . B u t t h i s d o e s n o t mean t h a t t h e q u a n t i t i e s i n c r e a s e d g r e a t l y com pared w i t h o t h e r years. T h i s a b n o r m a l r i s e of e x p o r t s t o . an a l l - t i m e h i g h was b r o u g h t a b o u t t h r o u g h t h e d e v a l u a t i o n o f T u r k i s h c u r ­ r e n c y f r o m a n e x c h a n g e r a t e of 1 . 3 t o 1 d o l l a r t o 2 . 8 2 t o 1 d o l l a r by' a Gov ernment d e c r e e d a t e d S e p t e m b e r 7 , 1 9 4 6 , (S e e C h a p t e r X I I I ) . I n f a c t , i f t h e v a l u e s of e x p o r t s and i m p o r t s a r e c o n v e r t e d i n t o t h e 19 3 8 p r i c e l e v e l , t h e y w o u ld b e , r e s p e c t i v e l y , a b o u t 153 and 80 m i l l i o n l i r a s i n s t e a d o f 43 2 and 2 2 3 . 9 m i l l i o n l i r a s . i n 1946 w i t h t h a t of 1938 i s traded. A n o t h e r way t o com pa re t r a d e to c o n sid er th e q u a n tities I n 1 93 8 e x p o r t s amounted t o a b o u t 1 . 5 m i l l i o n t o n s and i m p o r t s 8 4 4 , 0 0 0 t o n s , w h e r e a s i n 1946 t h e y w e r e 9 0 5 , 0 0 0 and 4 0 3 , 0 0 0 t o n s , r e s p e c t i v e l y . say t h a t , Hence, i t i s c o r r e c t to d e s p i te the a p p a r e n t l y h ig h v a lu e s o f e x p o r ts and i m p o r t s i n 1 9 4 6 , t h e r e a l v a l u e was b e lo w t h e f i g u r e s f o r 1938. CHAPTER VI EXPORT TRADE OF TURKEY When th e g e n e r a l f e a t u r e s and a g r i c u l t u r a l p ro d u c­ t i o n o f Turkey w ere a n a ly z ed abov.e, i t was p o in te d o u t t h a t , - t h e c o u n tr y i s p r e d o m in a n tly a g r i c u l t u r a l , and a lth o u g h de­ term in ed e f f o r t s h a v e b e e n made by the Government t o d e v e lo p l o c a l i n d u s t r i e s , Turkey i s d u s tr ia l n eed s. s t i l l f a r from m e e tin g h e r i n ­ T u rk ey’ s e x p o r t tr a d e c o n s i s t s of a g r i c u l ­ t u r a l end m in e r a l p r o d u c t s , w it h m an u factu red g o o d s th e m ain ite m s o f im p o r ts . N e v e r t h e le s s , a t t h i s p o in t a g e n ­ e r a l c l a s s i f i c a t i o n o f T u rk ey’ s e x p o r ts w i l l be h e l p f u l in s e t t i n g f o r t h more c l e a r l y th e n a tu r e of h e r ad v a n ta g e i n t r a d e w it h th e r e s t o f the w o r ld . The c l a s s i f i c a t i o n em ployed in c lu d e d a g r i c u l t u r a l c o m m o d itie s, raw m in e r a ls and m an u factu red g o o d s . As u sed i n t h i s c l a s s i f i c a t i o n a g r i­ c u l t u r a l c o m m o d itie s a r e t h o s e w h ich in c lu d e a l l p l a n t and l i v e s t o c k p r o d u c ts . A d i v i s i o n o f T u rk ish e x p o r ts on th e b a s i s o f t h i s c l a s s i f i c a t i o n show s t h a t th e p r i n c i p a l e x p o r ts o f Turkey f a l l w i t h i n th e group c l a s s i f i e d a s a g r i c u l t u r a l p r o d u c t s . A lth o u g h th e c o u n tr y h a s d e p o s i t s o f many d i f f e r e n t k in d s o f m in e r a ls , some o f v e r y h ig h q u a l i t y , t h e i r c o n t r ib u t io n to th e e x p o r t tr a d e i s c o m p a r a tiv e ly s m a ll. B u t, th e m ost rem ark ab le f a c t i n T u rk ish e x p o r t tr a d e i s th e a lm o s t com­ p l e t e a b se n c e of m a n u factu red g o o d s . The o n ly m an u factu red it e m s in t h e c o u n tr y ’ s e x p o r t tr a d e a r e hand made r u g s and 71 ca rp ets. F or c e n t u r i e s t h e y have e n jo y e d a w o r ld w ide r e p u t a t i o n and demand. However, the i n t r o d u c t i o n o f m ach in e - made r u g s and c a r p e t s i n l a r g e numbers and t h e lo w e r p r i c e s i n w o r ld m a r k e ts l i m i t e d t h e e x p o r t a t i o n o f T u rk ish hand­ made r u g s . The s p e c i f i c s t a t i s t i c s f o r th e ab ove s t a t e m e n t s are a s f o l l o w s : I n 1 9 5 5 -3 9 a g r i c u l t u r a l p r o d u c t s .a v e ra g e d 8 4 . 6 p e r c e n t o f th e t o t a l T u r k is h e x p o r t s by v a l u e , w h i l e m i n e r a l s a c c o u n te d f a r o n ly 5 p e r c e n t . The r e m a in in g 1 0 . 4 p e r c e n t c o n s i s t e d of m i s c e l l a n e o u s it e m s o f w hich 3 p e r c e n t were m an u fa ctu red g o o d s , n am ely, r u g s and c a r p e t s , and some w o o le n and s i l k e n g o o d s ; f i s h i n g s h a r e d about 0 . 7 p e r c e n t . The P l a c e o f A g r i c u l t u r e i n E x p o r t Trade The p r e c e d in g a n a l y s i s i n d i c a t e s s t r i k i n g l y t h e f a c t t h a t i n t r a d e w i t h th e r e s t o f t h e w o r ld Turkey’ s a d v a n ta g e i s b a sed on th e p e c u l i a r g e o g r a p h ic i n f l u e n c e s , m a in ly c l i m a t e and s o i l , w h ic h make p o s s i b l e th e p r o d u c t i o n o f s p e c i a l i z e d a g r i c u l t u r a l and anim al p r o d u c t s . The e x p o r t s o f a g r i c u l t u r a l p r o d u c t s from Turkey c r e a t e the b u lk o f th e p u r c h a s in g power by w h ic h she can o b t a i n e x ch a n g e t o buy i n d u s t r i a l g o o d s , c h i e f l y c a p i t a l g o o d s , t o d e v e lo p h e r in d u str y . The exch an ge of T u rk ish a g r i c u l t u r a l raw m a t e r i a l s and fo o d s t u f f s f o r i n d u s t r i a l im p o r ts b e g a n i n t h e 1 8 5 0 ’ s . P r i o r to t h a t d a t e Turkey, or t h e s o - c a l l e d Ottoman E m pire, 72 was a lm o st s e l f - s u f f i c i e n t , h a v in g i t s l o c a l h a n d i c r a f t i n d u s t r i e s and e x p o r t i n g o n l y a few a g r i c u l t u r a l i t e m s . But w it h th e i n d u s t r i a l develop m en t o f w e s t e r n n a t i o n s th e demand f o r e x p o r t s o f T u rk ish a g r i c u l t u r a l p r o d u c t s i n c r e a s ­ ed c o n s i d e r a b l y . L i k e w i s e Turkey’ s demand f o r i n d u s t r i a l im p o r ts i n c r e a s e d a c c o r d i n g l y . Table I I shows Turkey’ s e x p o r t s o f a g r i c u l t u r a l co m m o d ities i n v a l u e s and p e r c e n t a g e s compared w ith the t o t a l e x p o r t s from 1925 t o 1 9 4 0 . T h is t a b l e i n d i c a t e s t h a t th e v a l u e o f e x p o r t s o f a g r i c u l t u r a l p r o d u c t s i n c r e a s e d a s the t o t a l e x p o r t s i n c r e a s e d and v i c e - v e r s a . I t a lso i n d i c a t e s t h a t th e p l a c e o f a g r i c u l t u r e i n e x p o r t t r a d e i s very g rea t. From 1 9 2 3 -1 9 4 0 a g r i c u l t u r a l p r o d u c t s a v e r ­ aged 8 2 . 6 p e r c e n t o f t h e t o t a l e x p o r t s . I t d e c r e a s e d t o 78 p e r c e n t i n 1 9 2 7 , and i n c r e a s e d t o 8 6 . 3 p e r c e n t by 1 9 3 8 , I n 1 9 4 1 , i t r o s e t o an a l l - t i m e h ig h o f 8 9 . 9 p e r c e n t . In volum e a s w e l l , a g r i c u l t u r a l c o m m o d itie s p r o v i d e the b u lk o f t o t a l e x p o r t s , b e i n g about 80 p e r c e n t in 1958. Im p o rta n t A g r i c u l t u r a l E x p o r ts The f o r e g o i n g a n a l y s i s shows t h a t t h e e x p o r t t r a d e o f Turkey g e n e r a l l y c o n s i s t s o f th e e x p o r t o f a g r i c u l t u r a l p rod u cts. However, i n Turkey’ s a g r i c u l t u r a l e x p o r t t r a d e th e s h a r e s o f t h e v a r i o u s e n t e r p r i s e s a r e n o t t h e same. Among them f i e l d c r o p s p l a y t h e m o st im p o r ta n t p a r t , con ­ s i s t i n g o f about 50 p e r c e n t o f t h e t o t a l a g r i c u l t u r a l e x - 73 T ab le I I : V alue of A g r i c u l t u r a l P r o d u c t s and P e r c e n t a g e o f T o ta l E x p o r t o f Turkey. 1985-1946. ( V a lu e s i n 1 , 0 0 0 l i r a s ) Year V a lu e 1983 1984 1985 1986 1987 1988 1989 1930 1931 1938 1933 1934 1935 1936 1937 3.938 1939 1940 1941 1948 19 43 1944 1945 1946 6 7 ,4 5 8 1 8 9 ,6 3 5 1 5 4 ,3 8 0 1 5 3 ,3 5 1 1 3 0 ,7 0 9 1 4 3 ,8 9 8 1 8 5 ,7 5 6 1 1 9 ,4 5 7 1 0 8 ,6 8 6 8 6 ,1 8 3 7 5 ,8 8 6 7 4 ,0 4 3 8 0 ,5 4 6 1 0 0 ,1 3 9 1 1 9 ,6 7 8 1 8 5 ,1 8 9 1 0 3 ,6 0 8 9 5 ,7 0 9 1 0 8 ,5 7 9 1 4 3 ,6 6 8 1 9 3 ,3 0 5 1 8 9 ,5 9 8 1 9 6 ,3 8 1 3 7 8 ,3 3 8 Source: A.nkara. P ercen tage 8 0 .1 8 1 .5 8 0 .4 8 3 .0 8 8 .7 8 3 .0 8 1 .0 7 9 .1 8 5 .5 8 5 .3 7 8 .1 8 0 .4 8 3 .9 8 5 .0 8 6 .5 8 6 .3 8 1 .5 8 5 .9 8 9 .9 8 7 .0 7 6 .0 8 1 .5 8 9 .7 8 6 .8 C a l c u l a t e d from A nnuaire S t a t i s t i q u e s , p o rts. Secon d i n im p o rtan ce come t r e e c r o p s , and th e n l i v e s t o c k p r o d u c t s w hich com prise ab ou t 30 and 20 p e r c e n t of th e a g r ic u l t u r a l e x p o r ts , r e s p e c t i v e l y . A b r ie f d is ­ c u s s i o n o f t h e p r i n c i p a l co m m o d ities w i.ll b e t t e r i n d i c a t e th e b a s i s cf T u rk ish ad v a n ta g e i n e a c h commodity. T o b a cco : Among a l l th e T u r k ish e x p o r t s t o b a c c o i s by f a r t h e m ost im portant i t e m . I n t h e f i v e y e a r s ending w i t h 1 9 3 4 , annual e x p o r t s w ere v a lu e d a t 2 6 .8 m i l l i o n l i r a s fro m 2 5 ,5 6 4 t o n s and r e p r e s e n t e d . 2 2 . 8 p e r c e n t o f t h e c o u n t r y ’ s t o t a l e x p o r t s , or 28 p e r c e n t cf a g r i c u l t u r a l e x p o r t s . Tobacco e x p o r t s i n c r e a s e d from an a v e r a g e o f 3 3 . 1 m i l l i o n l i r a s i n 1 9 3 5 -3 9 t o 4 8 . 7 m i l l i o n l i r a s i n 1 9 4 0 - 4 4 , s h a r in g 26 p e r c e n t and 28 p e r c e n t o f t h e t o t a l e x p o r t s r e s p e c t i v e l y . T h is sudden r i s e i n v a l u e i n th e l a s t f i v e y e a r p e r io d was due l a r g e l y t o t h e i n c r e a s e i n the p r i c e o f t o b a c c o r r a t h e r than th e amount e x p o r t e d . In f a c t f o r t h e same p e r i o d s e x ­ p o r t s i n c r e a s e d s l i g h t l y fro m an a v e r a g e o f 3 4 ,0 0 0 t o n s to o 5 ,3 0 0 t o n s , or an i n c r e a s e o f 4 p e r c e n t o n l y . The i n ­ c r e a s e i n p r i c e w a s b ro u g h t a b o u t b y a d r a s t i c d e c l i n e i n t o b a c c o p r o d u c t i o n i n G reece d u r in g German o c c u p a t i o n . In f a c t G reece was th e w o r ld ’ s l a r g e s t e x p o r t e r o f T u rk ish or s o - c a l l e d o r i e n t a l t o b a c c o and t h e p r i n c i p a l c o m p e t it o r o f Turkey. S i n c e 1 9 4 1 , h o w e v e r , Turkey h a s h e l d f i r s t p l a c e i n t h i s ty p e o f to b a c c o e x p o r t s i n the w o r l d . Y» T u r k ish to b a c c o i s s h ip p e d t o n e a r l y a l l w o r ld mar­ k ets. S i n c e 1687 i t h a s p r e s e r v e d i t s a l l t h e t o b a c c o s of t h e w o r l d . s u p e r i o r i t y among B ecau se i t g i v e s an e x ­ q u i s i t e aroma and an a t t r a c t i v e c o lo r t o c i g a r e t t e s , i t h a s b een r e g a r d e d a s an a b s o l u t e n e c e s s i t y b y a l l to b a c c o m a n u fa c tu r in g c o u n t r i e s . The p r i n c i p a l b u y e r s a r e t h e U n it e d S t a t e s , Germany, th e u n i t e d Kingdom, I t a l y , E g y p t, and C z e c h o s lo v a k i a . These c o u n t r i e s and many o t h e r s 5 im p ort T u rk ish t o b a c c o m a in ly f o r b l e n d in g p u r p o s e s and n o t f o r th e p u rp ose o f i n c r e a s i n g t h e s u p p ly t o m eet t h e i r r e q u i r e m e n t s . T h e r e f o r e , T u rk ish t o b a c c o , or s o - c a l l e d o r i e n t a l t o b a c c o produ ced i n Turkey and G reece i s a s p e c i a l p r o d u c t n o t com p etin g w ith b u t r a t h e r com plem entary to t o b a c c o s p r o ­ duced i n o t h e r c o u n t r i e s . F or i n s t a n c e , th e U n ite d S t a t e s i s the w o r l d ’ s l a r g e s t p r o d u c e r and e x p o r t e r o f t o b a c c o , r e a l i z i n g 155 m i l l i o n d o l l a r s a n n u a l l y from an a v e r a g e e x p o r t o f 2 0 0 ,0 0 0 t o n s . 5 I t i s a ls o th e l a r g e s t purchaser of T u rk ish t o b a c c o . U n it e d S t a t e s t o b a c c o co m p a n ies m a in t a in r e s i d e n t b u y e r s i n Turkey and p l a y an im p o r ta n t r o l e i n t h e t o b a c c o market o f t h e c o u n t r y . The i n t r o d u c t i o n o f T u rk ish b le n d 5See a p p e n d ix , t a b l e 1 1 . T urkey’ s e x p o r t o f l e a f tob acco t o p r in c ip a l c o u n t r ie s . g F i g u r e s r e p r e s e n t the y e a r s fro m 1936 t o 1 9 3 7 . V a lu e s a r e ta k e n fr o m th e S t a t i s t i c a l A b s t r a c t o f t h e u n i t e d S t a t e s , 1 9 4 3 ; w h i l e t h e e x p o r t s a r e fro m t h e I n t e r n a t i o n a l Yearbook o f A g r i c u l t u r a l S t a t i s t i c s . 1940. 76 c i g a r e t t e s which b eg a n i n 1 9 0 2 h a s b e e n g iv e n on th e r e a s o n f o r t h e r a p id i n c r e a s e i n c i g a r e t t e consu m ption i n t h e 7 U n it e d S t a t e s . i n 1 9 0 1 - 1 9 0 5 , the annual consu m ption o f c i g a r e t t e t o b a c c o i n t h e U n ite d S t a t e s w as 1 2 . 4 m i l l i o n p ou n d s. A fter. 1905 t h e annual co n su m p tion began t o i n ­ c r e a s e , r e a c h i n g 22 m i l l i o n pounds i n 1 9 0 6 -1 9 1 0 ; 1 3 0 .3 m i l l i o n i n 1 9 1 6 - 2 0 ; 2 4 7 .9 m i l l i o n i n 1 9 3 0 , and 7 5 4 .5 m i ll i o n i n 1 9 4 2 .8 There was a s i m i l a r develop m en t i n t h e u n i t e d Kingdom, Germany, I t a l y , and o t h e r oeoun t r i e s . T h e r e f o r e , i t seem s q u i t e c e r t a i n t h a t Turkey’ s e x p o r t s o f t o b a c c o w i l l c o n t in u e t o be t h e m ost im p o r ta n t ite m i n h e r tr a d e w it h t h e r e s t o f the w o r l d . In o r d e r t o p r o t e c t the q u a l i t y o f t h e T u rk ish p r o d u c t and m a in ta in i t s r e p u t a t i o n i n f o r e i g n m a r k e ts , th e p r o d u c t i o n and m a r k e tin g o f t o b a c c o a r e under o f f i c i a l su p e rv isio n , fh e m anufacttire o f c i g a r e t t e s ana o t h e r t o ­ b a c c o p r o d u c t s i s a l s o under Government m onop oly. These s a l e s o f to b a c c o f u r n i s h an a p p r e c i a b l e p a r t o f t h e n a t i o n ­ a l revenue. In 1 9 3 7 -4 1 r e t u r n s fro m t o b a c c o s a l e s a v e ra g e d 4 3 .4 m i l l i o n l i r a s , or about 9 percen t o f th e t o t a l rev en u e. H a z e ln u t s (F i l b e r t s )s Turkey i s the w o r l d ’ s l a r g e s t e x p o r t e r o f f i l b e r t s , 7 L e la n d James Gordon, American R e l a t i o n s wi th Tur­ key, P h ila d e lp h ia , 1932, p. 86. S t a t i s t i c a l A b s t r a c t o f th e U n ite d S t a t e s , Wash­ in g to n , 1943, p . 821. f o l l o w e d by S p a in and I t a l y . i s s h ip p e d t o f o r e i g n m a r k e t s . About 90 p e r c e n t o f the crop These sh ip m e n ts n o r m a lly r e p r e s e n t a bou t 9 p e r c e n t o f th e v a l u e o f a l l T u rk ish e x ­ p orts. H a x e ln u t s rank se co n d t o t o b a c c o . Though e x p o r t s v a r y from y e a r t o y e a r a c c o r d in g t o s i z e o f c r o p , th e t r e n d i n t h e p a s t d e c a d e s h a s b een upward. Whereas Turkey e x ­ p o r t e d a y e a r l y a v e r a g e o f 1 5 ,7 0 0 t o n s o f s h e l l e d f i l b e r t s v a lu e d a t 8 . 5 m i l l i o n l i r a s i n the 1 9 3 0 -3 4 p e r i o d , sh e s h i p ­ ped an a v e r a g e o f 2 0 ,6 0 0 t o n s w i t h a v a l u e of 11 m i l l i o n l i r a s in 1 935-39. I n th e l a s t 5 - y e a r p e r i o d , 1 9 4 0 - 4 4 , a l t h o u g h p r o d u c t io n i n c r e a s e d , e x p o r t s d e c r e a s e d c o n s i d e r a b l y b e ­ c a u s e o f World War I I , w h ic h r e d u c e d t h e p r u c h a s e s by f i l b e r t „ im p o r tin g n a t i o n s i n Europe and a l s o ch eck ed s h ip m e n ts from Turkey. Even under t h e s e c o n d i t i o n s , t h e v a l u e o f f i l b e r t s e x p o r te d d u r in g th e war y e a r s was s l i g h t l y h i g h e r th a n t h a t o f 1 9 3 5 - 3 9 , am oun tin g t o 1 2 . 6 m i l l i o n l i r a s from 1 4 ,5 0 0 t o n s . T h is i n c r e a s e i n v a l u e was due t o the i n c r e a s e i n p r i c e s . P r i o r t o World War I I th e p r i n c i p a l m a r k e t s f o r i 'urki s h f i l b e r t s w e re Germany, F r a n c e , C z e c h o s lo v a k i a , th e U n it e d Kingdom, S w i t z e r l a n d , Sweden, and t h e U n it e d S t a t e s . I n o r d e r to p r o t e c t t h e q u a l i t y and m a i n t a i n i t s r e p u t a t i o n i n f o r e i g n m a r k e t s , f i l b e r t e x p o r t s a r e under th e s t r i c t c o n t r o l o f the M i n i s t e r of Commerce and a c e n ­ t r a l export o r g a n iza tio n . p r ic e s f o r h a z e ln u ts. The l a t t e r s e t s minimum e x p o r t R a is in s : R a i s i n s have b e e n t h i r d i n im p o r ta n c e i n t h e e x p o r t g t r a d e o f the c o u n t r y . I n some y e a r s t h e y have ran k ed secon d, ex ceed ed o n ly by to b a cco . The Turkish r a i s i n i s produ ced from a s e e d l e s s v a r i e t y of g r a p e s known a s s u l t a n a . T urkey’ s p r i n c i p a l c o m p e t i t o r s on w orld m a rk ets a r e t h e U n ite d S t a t e s , A u s t r a l i a , and G r e e c e . Both th e u n it e d S t a t e s and A u s t r a l i a b rou gh t s e e d l e s s g r a p e s fro m Turkey and in t r o d u c e d them i n t o t h e i r a g r i c u l t u r e in th e 1 8 7 0 ’ s . By 1920 th e U n ite d S t a t e s had b ecom e-th e l a r g e s t p r o d u ce r and e x p o r t e r o f r a i s i n s i n the w o r ld . D uring th e 1 9 5 0 -3 4 p e r io d t h e a v e r a g e v a l u e o f r a i s i n e x p o r t s was nine m i l l i o n l i r a s from 4 3 ,8 0 0 t o n s , r e p r e s e n t ­ i n g 8 . 1 p e r c e n t o f t h e v a l u e of t h e c o u n t r y ’ s t o t a l e x p o r t s . D uring t h e f o l l o w i n g f i v e y e a r s ended w ith 1 9 3 9 , h o w ev er, e x p o r ts in c r e a se d s u b s t a n t i a ll y , a v era g in g 9 .3 m i l l i o n l i r a s from 6 0 ,0 0 0 t o n s , p l a c i n g Turkey i n th e f i r s t rank a s the w o r ld ’ s l a r g e s t e x p o r t e r a g a i n s t u n i t e d S t a t e s e x p o r t s of 5 6 ,2 5 0 t o n s f o r t i i e same p e r i o d . In 1 9 4 0 - 4 4 , b e c a u s e o f t h e w a r , e x p o r t s from Turkey d e c r e a s e d d r a s t i c a l l y t o an a v e r a g e amount o f 2 3 ,0 0 0 t o n s , w h ile e x p o r t s from t h e U n it e d S t a t e s a v e r a g e d 7 5 ,0 0 0 t o n s . ®The name ’' r a i s i n ! 1 r e f e r s t o th e d r i e d f r u i t of c e r ­ t a i n v a r i e t i e s of .th e g r a p e v i n e . However, i n f o r e i g n t r a d e i t r e f e r s to t h e d r i e d s e e d l e s s g r a p e s , w h i l e d r i e d s e e d e d g r a p e s are e a l l e d c u r r a n t s . 79 The e x p o r t a t i o n of r a i s i n s i s c o n t r o l l e d by t h e Govern m ent w i t h a v i e w t o i m p r o v i n g t h e i r p o s i t i o n on w o r l d marke t s . P r i o r t o t h e w a r t h e p r i n c i p a l c u s t o m e r s o f Turkish, r a i s i n s w e r e Germany, t h e u n i t e d Kingdom, t h e N e t h e r l a n d s , B e lg i u m , ' a n d I t a l y . D ried P i g s : Turkey i s a l s o th e l a r g e s t e x p o rte r of d r i e d f i g s in the w o r ld . Up u n t i l 1900 T u r k i s h f i g s or s o - c a l l e d Smyrna f i g s w e r e so d i s t i n c t i v e a s t o he e n t i r e l y f r e e f r o m c o m p e ti tio n . That s i t u a t i o n le d th e U nited S t a t e s to a tte m p t to t r a n s p l a n t t h e f i g t r e e t o C a l i f o r n i a where t h e c l i m a t e and s o i l c o n d it i o n s a re s i m i l a r t o th o s e of W estern Turkey. F i r s t e f f o r t s f a i l e d f o r a b o u t £0 y e a r s . The f a c t w a s t h a t t h e y d i d not r e a l i z e t h e n e c e s s i t y of c a p r i f i c a t i o n i n p r o d u ing f i g s . ^ B r i n g i n g i n t h e w i l d c a p r i f i g and f i g w a s p , and a d a p t a t i o n o f t h e c a p r i f i c a t i o n p r o c e s s i n 1899 m ark e d t h e b e g i n n i n g of s u c c e s s f u l p r o d u c t i o n of Smyrna f i g s i n C alifo rn is. To i n d i c a t e i t s : o r i g i n a n d i t s q u a lity , the C a l i f o r n i a fig; i s c a l l e d t h e " C a l i m y r n a ” f i g . Am erican f i g ■ ^ C a p r i f i c a t i o n i s an a r t i f i c i a l m e t h o d o f p o l l i n a t ­ i n g Smyrna f i g s ( n o t any o t h e r s p e c i e s ) . O t h e r w i s e , no p r o d u c t i o n Can b e o b t a i n e d . F r u i t s o f t h e w i l d c a p r i f i g c o n t a i n i n g t h e f i g wasp ( B l a s t o p h a g a g r o s s o r u m ) a r e h un g i n t h e o r c h a r d s i n May, an d t h e i n s e c t s upon c o m p l e t i n g t h e i r l i f e c y c l e go f r o m th e m t o t h e Smyrna f i g s c a r r y i n g p o lle n g r a i n s , thus a id in g p o l l i n a t i o n . BO p r o d u c t io n h a s s t e a d i l y i n c r e a s e d and t o d a y C a l i f o r n i a w it h her f a n c y p a c k in g and p a c k a g in g i s o f Turkey i n hi e w orld m a r k e ts . fig a fo r m id a b le c o m p e t it o r N e v e r t h e l e s s , th e Smyrna i s so u g h t a f t e r th e o u g h o u t t h e w o r ld a s a s u p e r i o r p r o d u ct in q u a l i t y . In f i g e x p o r t s Turkey h o l d s f i r s t p l a c e , f o l l o w e d by I t a l y , G r e e c e , S p a in , and t h e U n ite d S t a t e s . T urkish f i g e x p o r t s have i n c r e a s e d from a y e a r l y a v e r a g e o f 8 6 ,5 0 0 . t o n s i n 1 9 3 0 -3 4 t o 3 2 ,8 0 0 i n 1 9 3 5 - 3 9 . During th e l a t t e r p e r io d v a lu e of e x p o r t s a v e r a g e d 4 . 3 m i l l i o n l i r a s , in g 3 . 4 p e r c e n t o f th e t o t a l e x p o r t s . rep resen t­ A f t e r 1 9 3 9 , h o w ev e r, e x p o r t s d e c r e a s e d c o n s i d e r a b l y , a v e r a g i n g 1 8 ,3 0 0 t o n s i n 1 9 40-44. P r i o r to 1940 t h e p r i n c i p a l c u sto m e r s o f T u rk ish f i g s w ere Germany, t h e U n it e d Kingdom, F r a n c e , t h e U n it e d S t a t e s , B e lg iu m , and C z e c h o s l o v a k i a , i n t h e o r d e r named. C o tton : I n th e c h a p te r on a g r i c u l t u r a l p r o d u c t i o n i t was p o im ted o u t t h a t c o t t o n had become an im p o r t a n t T u rk ish e x p o r t s i n c e th e Axtorican C i v i l War o f 1 8 6 1 - 6 5 . I n some y e a r s sh ip m e n ts r e a c h e d a bou t 2 0 0 ,0 0 0 b a l e s , b u t due t o th e many w a r s , p a r t i c u l a r l y World War I and t h e War of T u rk ish In d e p e n d e n c e , e x p o r t s had d e c l i n e d by 1 923 t o 4 8 ,0 0 0 b l a e s . During t h e p e r i o d 1 9 2 4 - 2 8 , h o w ev e r, th e amount o f c o t t o n e x p o r t e d a v e r a g e d 7 6 ,0 0 0 b a l e s and th e 81 v a lu e 1 1 .6 m i ll i o n l i r a s . I n th e f o l l o w i n g f i v e y e a r p e r i o d , 1 9 2 9 - 3 4 , a lt h o u g h a v e r a g e annual e x p o r t s i n c r e a s e d s l i g h t l y to 7 8 ,8 0 0 h a l e s , the v a l u e s dropped to 7 . 1 m i l l i o n lir a s. D uring the 1 9 3 5 -3 9 p e r io d e x p o r t s i n c r e a s e d f u r t h e r t o an a v e r a g e o f 8 3 ,8 0 0 h a l e s . D uring t h i s l a t e s t p e r io d c o t t o n e x p o r t s were v a lu e d a t 7 m i l l i o n l i r a s . rep re sen ted 5 .6 percent p o rts. T h is v a lu e o f t h e v a l u e o f a l l T u rk ish e x ­ V/ith t h e e x p a n s io n o f d o m e stic t e x t i l e i n d u s t r i e s a f t e r 1 9 3 7 , t h e t r e n d i n c o t t o n e x p o r t s tu r n e d downward. N e v e r t h e l e s s , Turkey s t i l l r e m a in s a s th e o n l y c o t t o n - e x p o r t i n g c o u n tr y i n E u rop e. Turkey r a n k s t e n t h i n th e w o r ld e x p o r t o f c o t t o n , h u t i t s sh a re cf 8 3 ,8 0 0 h a l e s i s n e g l i g i b l e compared t o t h a t o f the U n ite d S t a t e s o f o v e r 5 m i l l i o n o r I n d i a 8 . 5 m i l l i o n b a le s. P r i o r t o World War I I , th e p r i n c i p a l m a r k e ts f o r Turk­ i s h c o t t o n were Geimany, i t a l y , Hungary, C z e c h o s lo v a k i a , and Homania, i n th e o r d e r named. C e r e a ls: One o f th e m o s t s t r i k i n g f a c t s i n T u rk ish f o r e i g n t r a d e under t h e new r e g im e h a s b e e n th e r a p i d t r a n s i t i o n o f Turkey from a v h e a t - i m p o r t i n g t o a w h e a t - e x p o r t i n g n a t i o n . ^ ^ T h is s t a t e m e n t r e f e r s t o t h e n e t - i m p o r t and e x p o r t . 82 Up u n t i l 1 9 3 0 , w i t h th e e x c e p t i o n o f 1 9 2 7 , i t had b e e n n e c e s s a r y to im p o rt l a r g e q u a n t i t i e s of w h ea t from ab roa d t o supplem ent home p r o d u c t i o n . For e x a m p le, i n 1924 w heat im p o r ts amounted to 1 7 3 ,7 0 0 t o n s , w h i l e i n 1934 e x ­ p o r t s w e r e 8 6 ,8 0 0 t o n s . T h is r a p id change i n w h e a t t r a d e was due l a r g e l y t o th e Government a i d to wheat g r o w e r s , im­ p ro v ed t r a n s p o r t a t i o n , and a l s o b e c a u s e t h e new t a r i f f a c t o f 1929 d i s c o u r a g e d im p o r ts and e n c o u r a g e d home p r o d u c t io n s u f f i c i e n t l y t o p e r m it some e x p o r t a t i o n . D uring t h e t e n y e a r p e r i o d e n d in g w i t h 1 9 3 9 , e x p o r t s o f w h eat i n c r e a s e d from an a n n u al a v e r a g e o f 3 4 ,0 0 0 t o n s i n 1 9 3 0 - 3 4 t o 6 6 ,3 0 0 t o n s i n 1 9 3 5 - 3 9 , t h e r a t i o o f i n c r e a s e b e in g 95 p e r c e n t . I n t h i s l a t e s t p e r io d e x p o r t s w e re v a lu e d a t 3 . 9 m i l l i o n l i r a s r e p r e s e n t i n g 3 . 1 p e r c e n t o f t h e v a lu e o f th e c o u n t r y ’ s t o t a l e x p o r t s , and p u t t i n g w heat i n th e s e v e n t h p l a c e among t h e e x p o r t p r o d u c t s . B e f o r e th e war I t a l y , Germany, S y r i a , B e lg iu m , and S w i t z e r l a n d were t h e p r i n c i p a l b u y e r s of T u rk ish w h e a t. B a r l e y , c a n a r y s e e d , o a t s , and m i l l e t a r e o t h e r c e r e a l item s e x p o r te d . I n 1 9 3 5 - 3 9 t h e y had a combined a v e r a g e v a l u e o f 5 . 8 m i l l i o n l i r a s , 60 p e r c e n t o f w h ich c o n s i s t e d o f b a r le y . p o rts. They r e p r e s e n t e d 4 . 6 p e r c e n t o f th e t o t a l e x ­ F or t h e same p e r io d le g u m in o u s p r o d u c t s su ch a s b e a n s , b e a n s 6 f a l l k i n d s w ere v a l u e d a t 2 . 4 m i l l i o n a n n u a l l y . 83 Opium: Turkey i s one o f the l e a d i n g c o u n t r i e s i n the e x ­ p o r t of opium f o r m e d i c a l u s e . B e in g e s p e c i a l l y r i c h i n m orphine c o n t e n t , T u rk ish opium i s h i g h l y p r i z e d and so u g h t a f t e r by f o r e i g n b u y e r s . P r i o r t o 1 9 3 0 , opium p l a y e d an im p o r ta n t p a r t i n th e c o u n tr y ’ s exp ort tra d e. I n 1 9 2 5 -2 9 e x p o r t s a v e r a g e d 6 . 9 m i l l i o n l i r a s from 360 t o n s cru d e opium , which r e p ­ r e s e n t e d 4 p e r c e n t o f th e v a l u e o f tbe t o t a l e x p o r t s . A w o r ld -w id e campaign by t h e League o f N a t i o n s , h o w ever, t o r e s t r i c t opium t r a d e t o m e d ic a l u s e s , r e d u c e d demand c o n sid er a b ly . Thus d u r in g th e 5 - y e a r p e r i o d 1 9 3 0 - 3 4 , e x p o r t s a v e ra g e d 267 t o n s , or a r e d u c t i o n o f 26 p e r c e n t compared w ith th e p r e v i o u s p e r i o d . I n 1 9 3 5 -3 9 e x p o r t s d e ­ c l i n e d f u r t h e r , a v e r a g i n g 191 t o n s w it h a n a v e ra g e v a l u e o f 1 . 6 m i l l i o n l i r a s , r e p r e s e n t i n g 0 . 2 p e r c e n t o f th e t o t a l ex p o rts. Opium e x p o r t i s a Government m on op o ly. The p r i n c i ­ p a l p u r c h a s e r s o f T u rk ish opium a r e t h e U n it e d S t a t e s , Germany, t h e U n ite d Kingdom, F r a n c e , and I t a l y , in th e o r d e r named. M ohair: Mohair i s a n o th e r im p o r ta n t i t e m i n T u rk ish ex­ port tra d e. Up u n t i l the 1 8 6 0 ' s Turkey was the o n l y p r o - 64 d u ce r and e x p o r t e r o f m ohair w ool i n t h e w o r l d . With th e i n t r o d u c t i o n o f t h e m ohair g o a t i n t o S ou th A f r i c a n and U n it e d S t a t e s a g r i c u l t u r e , h o w e v e r , Turkey l o s t h e r m onopoly o v e r t h i s v a l u a b l e commodity i n w o r ld t r a d e . N e v e r t h e l e s s , b e c a u se o f i t s s u p e r i o r i t y and a v e r y h i g h demand by a lm o s t a l l t h e t e x t i l e m a n u fa c tu r in g n a t i o n s , , T u rk ish m ohair d o m in a te s i n t e r n a t i o n a l t r a d e . P r i o r t o 1923 Turkey w as t h e w o r l d ’ s l a r g e s t e x ­ p o r t e r o f m ohair w o o l, f o l l o w e d by S o u th A f r i c a . The U n it e d S t a t e s p r o d u c t i o n w a s consumed d o m e s t i c a l l y . Tur­ k ey h a s m a in t a in e d t h i s l e a d t o t h e p r e s e n t t i m e , w i t h t h e e x c e p t i o n o f t h e y e a r s 1 9 2 4 -2 7 i n c l u s i v e and 1 9 2 9 - 3 1 i n c l u s i v e , when S o u th A f r i c a g a i n e d the f o r e m o s t p o s i t i o n in th is e x p o r t t r a d e , s h i p p i n g p r i m a r i l y to G reat B r i t a i n . P r e s e n t l y t h e m ohair g o a t p o p u l a t i o n o f ^ o u th A f r i c a h a s d e c l i n e d d r a s t i c a l l y , w h i l e t h a t o f Turkey h a s i n c r e a s e d co n sid er a b ly . During the f i v e y e a r s e n d in g w i t h 1929 annual e x p o r t s a v e r a g e d 3 , 6 3 2 t o n s w ith a v a l u e o f 5 . 6 m i l l i o n l i r a s , r e p r e ­ se n tin g 3 .3 p e r ce n t o f th e v a lu e o f th e t o t a l e x p o r ts . S i n c e 1 9 3 0 , h o w ev e r, e x p o r t s h a v e i n c r e a s e d b u t s l i g h t l y from an a v e r a g e o f 4 ,1 6 0 t o n s i n 1 9 3 0 - 3 4 w it h a v a l u e o f 2 .4 m i l l i o n l i r a s , t o 4 ,8 6 0 t o n s i n 1 9 3 5 - 3 9 . In t h i s l a t e s t p e r io d t h e v a l u e o f sh ip m e n ts a v e r a g e d 5 . 2 m i l l i o n lir a s, s h a r in g 4 . 2 p e r c e n t o f t h e t o t a l e x p o r t s . D uring World War I I t h e r e h a v e been, p r a c t i c a l l y no change i n 85 volume o f e x p o r t s . The v a l u e , h ow ever, h a s i n c r e a s e d co n sid er a b ly . The c h i e f b u y e r s o f T u rk ish m ohair w o o l p r i o r t o 1940 were Germany, R u s s i a , the U n ite d Kingdom, F r a n c e , and S w it z e r l a n d i n t h e o r d e r named. The U n it e d S t a t e s u s e d t o buy l a r g e q u a n t i t i e s of m ohair w o o l from Turkey, b u t w i t h th e a d o p tio n of t h e Sm oot-H awley T a r i f f . A c t o f 1 9 3 0 , w hich imposed h i g h t a r i f f , on m ohair w ool (34tf p er l b . ) , im p o r ts from Turkey d e c r e a s e d d r a s t i c a l l y . L iv esto ck p r o d u c ts: B e s i d e s m ohair t h e o t h e r l i v e s t o c k p r o d u c t s e x ­ p o r t e d from Turkey a r e w o o l , s k i n s , e g g s , l i v e a n im a ls , s a u s a g e c a s i n g s and s i l k . im p o r ta n t i s w o o l. Of t h e s e p r o d u c t s t h e m o st I n 1 9 3 5 -3 9 e x p o r t s a v e r a g e d 7 , 6 3 4 t o n s unwashed and 362 t o n s w ashed. For t h e same p e r i o d the v a l u e was 4 . 7 m i l l i o n l i r a s s h a r in g 3 . 7 p e r c e n t o f th e t o t a l ex p o rts. Turkey i s the l a r g e s t w o o l-e x p or t i n g c o u n tr y i n E u ro p e. I t h o l d s n i n t h p l a c e among the w o o l - e x p o r t i n g n a t i o n s o f the w o r l d . However, i t s e x p o r t s o f 7 , 6 3 4 to n s a r e n e g l i g i b l e compared w it h A u s t r a l i a ’ s 3 3 0 ,0 0 0 , A rgen­ t i n a ' s 1 1 5 ,0 0 0 , or New Z e a la n d ’ s and S o u th A f r i c a ' s over 1 0 0 ,0 0 0 t o n s e a c h . A lth o u g h t h e r e a r e s u b s t a n t i a l q u a n t i t i e s o f s h i p - 86 merits o f s k i n s , l i v e a n i m a l s and e g g s , t h e s e c o m m o d i t i e s a r e n o t p e c u l i a r t o T u r k e y and t h e r e i s n o a d v a n t a g e e n ­ joyed i n t h e i r p r o d u c t i o n . I n 1935-39 t h e s e t h r e e e x ­ p o r t i t e m s h a d a c o m b in e d a v e r a g e v a l u e o f 7 . 9 m i l l i o n lira s. W hile t h i s f i g u r e i s r a t h e r h i g h , t h e w r i t e r b e ­ l i e v e s t h a t as th e l i v i n g s t a n d a r d o f the n a t i o n i n c r e a s e s and t h e home i n d u s t r i e s a r e d e v e l o p e d , e x p o r t s of s u c h item s w ill d e c lin e . I n f a c t , a c c o r d i n g t o a s t u d y egg c o n s u m p t i o n i n . c i t i e s -.in T u r k e y was 126, p e e r p e r s o n a n d 1P f o r m e a t o n l y 20 k g . i n 1 9 4 3 , & co m p a red w i t h 310 e g g s 13 and 83 k g . of m e a t i n t h e U n i t e d S t a t e s . Among t h e l i v e s t o c k p r o d u c t s s a u s a g e c a s i n g s h a v e b e e n one of t h e i m p o r t a n t , i t e m s o f T u r k i s h e x p o r t t r a d e since the " f r a n k f u r t e r ” o r s o - c a l l e d ’' h o t d o g ” , g a i n e d a w i d e s p r e a d and i n c r e a s i n g p o p u l a r i t y i n the. U n i t e d S t a t e s , Germany and C z e c h o s l o v a k i a . In 1935-39 e x p o r t of sau sag e c a s i n g s was v a l u e d a t 1 . 5 m i l l i o n l i r a s . Other E x p o r ts : O ther im p o rta n t a g r i c u l t u r a l p ro d u c ts e x p o rte d from Turkey a r e P i s t a c h i o n u t s , i n w hich Turkey h o l d s f i r s t place in the w orld, w alnuts, c h e s tn u ts , o liv e o i l s , alm onds, o r a n g e s , a p p l e s , and sesame. I n 1935-39 t h e s e h a d a co m bin ed a v e r a g e v a l u e o f a b o u t 4 m i l l i o n l i r a s of 1 2T u r k i y e liilll G e liri, op. c i t . . pp. 101, 177. ■ ^ S h e p h e r d , G e o f f r e y , M a r k e t i n g Farm P r o d u c t s , Ames, 1946, p . 15. 87 w h ich o l i v e o i l s and w a ln u t s a c c o u n te d f o r 70 p e r c e n t . There are sane o t h e r p r o d u c t s w h ich m ight b e c o n s i d ­ e r e d a s a g r i c u l t u r a l , s u c h a s l i c o r i c e r o o t , valonaa. and gums, Thus f a r Turkey i s usual p rod u cts. th e l a r g e s t e x p o r t e r o f t h e s e un­ Of t h e s e p r o d u c t s , l i c o r i c e r o o t i s u sed as a f l a v o r i n g f o r chewing and smoking, t o b a c c o , s o f t d r in k s and i n th e m a n u factu re o f c o n f e c t i o n s . Turkey s u p p l i e s abou t 75 p e r c e n t of th e w orld* s r e q u ir e m e n t s . The U n ite d S t a t e s i s the p r i n c i p a l custom er f o r T u rk ish l i c o r i c e and i t p l a y s a v e r y im p o r ta n t r o l e i n the Au r k i s h m arket by m a in ta in in g r e s id e n t b u y er s. As i n th e c a s e , o f o t h e r p r o d u c t s i n w h ich Turkey e n j o y s a n a t u r a l a d v a n t a g e , a t ­ te m p ts have b een made to i n t r o d u c e t h e p la n t i n t o U n it e d S t a t e s a g r i c u l t u r e , but e f f o r t s have n o t bean s u c c e s s f u l as y e t . V a lo n ia i s a p r o d u c t o f t h e a c o r n s of an oak tree, **£uercus valonia** w h ich i s p e c u l i a r t o T urkey. It i s u sed i n t a n n in g a s p e c i a l g r a d e o f l i g h t - c o l o r e d le a th e r . B e f o r e the d e v e lo p m e n t o f the German c h e m ic a l dye i n d u s t r y , Turkey had e n j o y e d a n a t u r a l m onopoly on w o r ld m a r k e ts b y e x p o r t i n g v a l o n i a and o t h e r n a t u r a l d y e y ie ld in g ite m s. But s i n c e 19£0 e x p o r t s of t h e s e p r o d u c t s have d e c l i n e d d r a s t i c a l l y a s c h e m ic a l d y e s were d e v e lo p e d . N e v e r t h e l e s s , t h e demand f o r T u rk ish v a l o n i a i s s t i l l v e r y h ig h . In th e p e r io d 1 9 3 5 -5 9 a n n u al e x p o r t s w ere v a lu e d a t £ .4 m illio n l i r a s . P r i o r t o 1940 t h e p r i n c i p a l v a l o n i a 88 im p o r t in g c o u n t r i e s w e r e Germany, t h e u n i t e d S t a t e s , the U n it e d Kingdom, E g y p t, F r a n c e , I t a l y , and th e N e t h e r la n d s i n th e o r d e r named. 89 CHAPTER V II IMPORT TRADE OF TURKEY S i n c e Turkey i s p r e d o m in a n tly an a g r i c u l t u r a l cou n try, i t s im p o r ts h ave b e e n l i m i t e d m a in ly to i n d u s t r i a l g o o d s , nam ely, i r o n and s t e e l p r o d u c t s , m a c h in e r y , motor v e h i c l e s , r a il w a y e q u ip m e n t , c h e m i c a l s , and c o t t o n and w o o le n p i e c e g o o d s . These i t e m s n o r m a lly a c c o u n t f o r o v e r 90 p e r c e n t o f th e t o t a l T u rk ish im p o r ts by v a l u e . P r i o r to 1929 t e x t i l e s c o n s t i t u t e d the m a jo r p o r t i o n o f th e t o t a l im p o r t s . From 1923 t o 1927 im p o r ts o f t e x t i l e s a v e r a g e d 79 m i l l i o n l i r a s r e p r e s e n t i n g 50 p e r c e n t o f th e v a l u e of a l l i m p o r t s . With the e x p a n s io n o f l o c a l t e x ­ t i l e m i l l s im p o r ts had d e c l i n e d s h a r p l y b y 1 9 4 0 . Thus, f o r t h e f i v e y e a r s e n d in g w it h 1939 v a l u e s a v e r a g e d 26 m i l l i o n l i r a s o r a d e c r e a s e o f 68 p e r c e n t compared w i t h the p e r io d 1 9 2 3 - 2 7 . In t h i s l a t e s t p e r io d t e x t i l e s r e p r e ­ s e n t e d 20 p e r c e n t o f the t o t a l i m p o r t s . D u ring 1 9 2 3 -2 7 a n n u a l im p o r ts o f m a c h in e r y , i r o n and s t e e l and o t h e r m e t a l l i c p r o d u c t s were v a lu e d a t 6 . 8 m i l l i o n l i r a s r e p r e s e n t i n g o n l y 4 . 5 p e r c e n t o f th e t o t a l im p o r ts. W ith .th e b e g in n in g o f T u rk ey*s i n d u s t r i a l i z a t i o n im p o r ts o f su ch i t e m s i n c r e a s e d c o n s i d e r a b l y . Thus i n 1 9 3 5 -3 9 im p o r ts o f t h e s e p r o d u c t s a v e ra g e d 3 9 . 3 m i l l i o n l i r a s r e p r e s e n t i n g 31 p e r c e n t o f a l l im p o r t s . 90 The P l a c e o f A g r i c u l t u r a l P r o d u c t s i n Im port Trade The p r e c e d i n g summary i n d i c a t e s s t r i k i n g l y the f a c t t h a t a g r i c u l t u r a l p r o d u c t s a r e of l i t t l e im p o r ta n c e in T u rk ish im p o r t t r a d e . present P r i o r to the new r e g i m e , h o w e v e r , i t had b e e n n e c e s s a r y t o buy l a r g e q u a n t i t i e s o f farm p r o d u c t s , n em ely w h e a t , w h eat f l o u r , r ic e , c o r n , s u g a r , and p o t a t o e s , from a b r o a d t o s u p p l e ­ ment d o m e s tic p r o d u c t i o n . t i l 1929. T h is s i t u a t i o n c o n t in u e d un­ A f t e r t h a t the r a p i d d e v e lo p m e n ts and improve m en ts cf t h e p r o d u c t i o n o f t h o s e c r o p s and t h e t a r i f f s and g ov ern m en t b o u n t i e s e l i m i n a t e d th e n e c e s s i t y f o r t h e i r im p o r ta tio n . Even now, Turkey h a s become an e x ­ p o r t e r o f some o f t h e s e c r o p s . T a b le I I I shows T u r k e y 's im p o r ts o f a g r i c u l t u r a l c o m m o d itie s i n v a l u e s and p e r c e n t a g e s compared w it h t h e t o t a l im p o r ts fro m 1923 t o 1 9 4 0 . r e v e a l e d by t h i s t a b l e i s The s t r i k i n g t h in g t h a t p r i o r t o 1929 a g r i c u l ­ t u r a l p r o d u c t s o c c u p ie d an im p o r ta n t p l a c e i n t h e coun­ t r y ' s im p ort t r a d e . For e x a m p le , i n 1 9 2 3 - 2 7 t h e v a lu e o f a g r i c u l t u r a l c o m m o d itie s a v e r a g e d 4 1 . 5 m i l l i o n l i r a s r e p r e s e n t i n g 2 0 . 1 p e r c e n t of t h e t o t a l i m p o r t s . But th e a d o p t io n o f h ig h t a r i f f s i n 1929 on t h e one hand, and the e x p a n s i o n of the home p r o d u c t i o n on th e o t h e r h ave b r o u g h t a b o u t a d r a s t i c d e c l i n e i n a g r i c u l t u r a l im p o r ts a f t e r 1 9 2 9 . Thus, i n 1 9 3 5 -3 9 the v a l u e of farm p r o d u c t s im p orted d e c l i n e d t o 9 . 1 m i l l i o n l i r a s a n n u a l­ l y c o n s t i t u t i n g 8 . 2 p e r c e n t o f t h e t o t a l im p o r t s . . Im p o rta n t A g r i c u l t u r a l Im ports. At p r e s e n t t h e p r i n c i p a l a g r i c u l t u r a l p r o d u c t s im­ p orted are t e a , c o f f e e , rubber, h id e s , c o c o a , and le m o n s. sugar, At t h i s p o i n t a b r i e f d i s c u s s i o n o f t h e - p r i n c i p a l c o m m o d itie s im p o rted seem s n e c e s s a r y . C o ffee: There i s no c o f f e e p r o d u c t io n i n Turkey, s o t h a t a l l the c o f f e e consumed m ust be im p o r t e d . A lth o u g h f o r some y e a r s e x p e r im e n t s have b e e n c o n d u c te d i>n t h e M e d ite rr a n e a n c o a s t around A n t a ly a , up t o t h e p r e s e n t tim e th e a t t e m p t s have n o t b e e n f r u i t f u l . I n 1 9 3 5 -3 9 c o f f e e im p o r ts a v e r a g e d 5 ,2 7 9 t o n s w i t h a v a l u e o f 1 . 6 m illio n l i r a s r e p r e se n tin g 1 7 .5 p ercen t o f th e t o t a l a g r ic u lt u r a l im p o r ts. The o n l y s u p p l i e r w as B r a z i l . Tea: Tea i s a n o t h e r im p o r ta n t i t e m i n T u rk ish a g r i c u l ­ t u r a l im p o r t s . fu tu re. However, su c h im p o r ts may d e c l i n e i n th e E x p e r im e n ts i n t e a grow ing w ere s t a r t e d f o l l o w i n g t h e e s t a b l i s h m e n t o f t h e new r e g im e , and were a c c e l e r a t e d in 1938. tea. At p r e s e n t 2500 h e c t a r e s o f la n d a r e p l a n t e d t o R eq u ir e m e n ts of th e c o u n t r y a r e a b o u t 1 ,0 0 0 t o n s o f 92 T able I I I : V alue o f T u rk ish Im p o rts of A g r i c u l t u r a l P r o d u c t s Compared w i t h T o ta l I m p o r t s , 1 9 2 3 - 1 9 4 0 . (V a lu e s i n 1 , 0 0 0 l i r a s ) Year V alue 1923 1924 1925 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 3 4 ,6 0 9 4 7 ,7 3 8 5 4 ,6 3 5 3 6 ,3 2 3 3 4 ,0 9 9 4 4 ,6 1 2 5 0 ,4 8 5 2 4 ,0 9 2 1 4 ,6 9 2 9 ,4 6 3 7 ,7 0 5 5 ,9 4 3 5 ,4 0 4 . 1 0 ,1 2 3 9 ,3 0 3 1 1 ,3 0 1 9 ,4 7 3 6 ,7 4 2 6 ,7 9 4 1 2 ,6 3 4 1 5 ,1 9 1 8 ,5 7 9 8 ,3 9 1 2 1 ,2 2 7 Sources: Ankara. P ercen tage 2 4 .0 2 4 .7 2 2 .7 1 5 .5 1 6 .1 2 0 .0 1 9 .7 1 6 .4 1 1 .7 1 1 .1 1 0 .4 . 6 .9 6 .1 1 1 .0 8 .1 7 .9 8 .0 9 .9 9 .0 8 .6 7 .4 4 .2 6 .6 1 0 .4 C a l c u l a t e d from A nnuaire S t a t i s t ! q u e s , 93 d r i e d t e a a n n u a l l y , and i t i s e s t i m a t e d t h a t th e a d d i t i o n o f 500 h e c t a r e s t o t h e e x i s t i n g a r e a w i l l be s u f f i c i e n t t o p r o d u ce t h a t q u a n t i t y , t h u s making t h e c o u n tr y se lf- s u ffic ie n t . In 1 9 3 5 - 3 9 im p o r ts o f t e a a v e r a g e d 9 3 6 ,0 0 0 k g s . w i t h a v a lu e o f 7 7 2 ,0 0 0 l i r a s s h a r in g 8 . 5 p e r c e n t o f th e t o t a l a g r i c u l t u r a l im p o r t s . The p r i n c i p a l s u p p l i e r s are I n d i a , N e t h e r l a n d s , and the u n i t e d Kingdom. Crude Nubber: Im p o rts of cru d e ru b b er h a v e shown c l i n e d u r in g th e l a s t two d e c a d e s . e s t e a d y d e­ For i n s t a n c e , from a y e a r l y a v e r a g e o f 4 , 1 8 0 , 0 0 0 k g s . i n 1 9 2 5 -2 9 t h e y have d e ­ c l i n e d t o 1 , 2 9 5 , 0 0 0 k g s . i n 1 9 3 5 -3 9 - a d e c r e a s e o f a lm o st 70 p e r c e n t - l a r g e l y b e c a u s e o f t h e i n c r e a s e d im p o r ts of. m a n u fa ctu red r u b b er p r o d u c t s . In t h i s l a t e r p e r io d v a lu e s a v e r a g e d 1 . 6 m i l l i o n l i r a s r e p r e s e n t i n g 17 p e r c e n t o f the a g r i c u l t u r a l im p o r ts or 1 . 3 p e r c e n t o f a l l i m p o r t s . With t h e o u tb r e a k of World War I I , im p o r t s o f ru b b er and r u b b er p r o d u c t s d e c l i n e d so d r a s t i c a l l y t h a t i n 1942 th e q u a n t i t y im p o r ted was o n l y 2 6 ,0 0 0 k g s . On th e o t h e r hand p r i c e s o f r u b b er and r u b b er p r o d u c t s w ent up beyond a l l e x p e c t a ­ t i o n s (1 t i r e 3 , 0 0 0 d o l l a r s ) . T h is s i t u a t i o n f o r c e d th e Government to t a k e m e a s u r e s t o p ro d u ce r u b b e r d o m e s t i c a l l y . E x p e r im e n ts i n g r o w in g r u b b e r - y i e l d i n g p l a n t s w e r e prompted in 1943. Today Turkey i s on th e way t o g r o w in g b o th th e ru b b er t r e e ( f i c u s e l a s t i c a ) k ok -sagh yz" . and a p l a n t known a s "Taraxacum I t i s a n t i c i p a t e d t h a t im p o r ts o f cru de rubb er 94 and r u b b e r p r o d u c t s w i l l b e d e c r e a s e d o r e l i m i n a t e d e n ­ t ir e ly in the f u tu re . The p r i n c i p a l s u p p l i e r s h a v e b e e n t h e N e t h e r l a n d s , B r i t i s h M a l a y a , a nd t h e P h i l i p p i n e s , th e l a t t e r probably as re e x p o r ts . H ides: D e s p ite t h e f a c t t h a t Turkey e x p o r t s l a r g e q u a n t i ­ t i e s o f s k i n s , h id e a re n o t produced in the c o u n try i n c o n s i d e r a b l e amount. T h e r e f o r e e a c h y e a r Turkey h a s to i m p o r t h i d e s i n l a r g e q u a n t i t i e s t o s u p p l e m e n t home p r o ­ d u ction. D uring t h e p a s t d ecad e im p o r ts o f h i d e s i n ­ c r e a s e d fr o m a y e a r l y a v e r a g e of 2 , 9 0 0 t o n s i n 1 9 3 0 - 3 4 t o 5,800 to n s in 1935-39. In th is l a s t fiv e year period v a l u e s a v e r a g e d 2 . 8 m i l l i o n l i r a s r e p r e s e n t i n g 30 p e r c e n t o f t h e t o t a l a g r i c u l t u r a l i m p o r t s o r 2 . 4 p e r c e n t of a l l im ports. The p r i n c i p a l s u p p l i e r s of h i d e s a r e t h e U n i t e d S t a t e s , Sgypt, P a l e s t i n e , the P h ilip p in e s , and I n d i a . Sugar: W h ile i n t h e p a s t T u r k e y i m p o r t e d a l l o f i t s ' s u g a r f r o m a b r o a d , i t h a s now become a p r o d u c e r o f b e e t s u g a r . Howev-.r, d o m e s t i c p r o d u c t i o n i s n o t s u f f i c i e n t a s y e t t o meet the n a t i o n ’ s n e e d s. T h e r e f o r e i t h a s been n e c e s s a r y t o i m p o r t some s u g a r t o s u p p l e m e n t home p r o d u c t i o n . In 1 9 5 5 - 3 9 i m p o r t s a v e r a g e d 2 5 , 2 0 0 t o n s w i t h a v a l u e of 1 . 7 m illio n l i r a s , t h u s r e p r e s e n t i n g 19 p e r c e n t o f t h e a g r i ­ c u ltu r a l or 1.5 p e rc en t of a l l im ports. I t i s an ticip ated t h a t w ith t h e e s ta b lis h m e n t e f the proposed fo u r sugar r e f i n e r i e s to h a n d l e c a n e s u g a r , i m p o r t s w i l l he d e c r e a s e d f u r t h e r o r he e l i m i n a t e d e n t i r e l y . P r i o r t o 1940 t h e p r i n c i p a l c o u n t r i e s s u p p l y i n g T u r k e y w i t h s u g a r w e re C zechoslovakia, - R u ssia , the N etherlands-, th e u n ite d Kingdom, and B e l g i u m , i n t h e o r d e r named.. Lemons I m p o r t s of le m o n s h a v e a l s o h e n d e c r e a s e d a s t h e dom estic p r o d u c tio n in c r e a s e d . F o r exam ple i n 1 9 2 3 - 2 7 im p o rts a v e ra g e d 5,100 t o n s w h ile i n 1935-39, 2 , 8 0 0 a d e c l i n e o f 45 p e r c e n t . 't * During t h i s l a t e s t p e r i o d . •' an n u al im p o rts were v a lu e d a t 318,000 l i r a s , 3 .4 percent- of th e a g r i c u l t u r a l im n o rts. p l i e r s a r e I t a l y an d S y r i a . th e y were rep resen tin g P rin cip al sup­ 96 CHAPTER V I I I DISTRIBUTION OF TURKISH TRADE I n d i s t r i b u t i o n of t r a d e , T u r k e y i s c o n s i d e r e d one of t h e m o s t s t r a t e g i c a l l y l o c a t e d c o u n t r i e s , i n t h e w o r l d . Owing t o i t s p r o x i m i t y to t h e s o - c a l l e d " w o rld ’ s workshop” - E u r o p e - and t o i t s b e i n g s i t u a t e d a t t h e c r o s s r o a d s of th e w orld i t has been p o s s i b l e fo r Turkey to r e a d i l y w i t h t h e r e s t of t h e w o r l d . trade Europe, exclu d in g R u s s i a , i s b o t h t h e l a r g e s t i m p o r t e r uf f o o d s t u f f s and raw m a t e r i a l s and t h e goods i n the w o r ld . l a r g e s t e x p o r t e r of m a n u f a c t u r e d I n 1 9 3 8 , f o r e x a m p le , E u r o p e ’ s s h a r e ' i n w o r l d i m p o r t s a c c o u n t e d f o r 56 p e r c e n t , w h i l e h e r e x ­ p o r t s a m o u n t e d t o 46 p e r c e n t o-f t h e w o r l d e x p o r t s . In t h e same y e a r h e r s h a r e i n t h e t o t a l w o r l d t r a d e was 51 p e r c e n t . I n 1 9 3 5 , 45 p e r c e n t of. th e a g g r e g a t e i m p o r t s o f E u r o p e c o n s i s t e d o f r a w m a t e r i a l s and s e m i - m a n u f a c t u r e d 15 g o o d s , and 28 p e r c e n t o f f o o d s t u f f s . T h i s i s one of t h e m o s t i m p o r t a n t r e a s o n s f o r t h e t e n d e n c y of t h e b u l k of T u r k i s h f o r e i g n t r a d e t o b e c a r r i e d on w i t h E u r o p e a n n a t i o n s , n o t a b l y Yve s t e r n a n d C e n t r a l E u r o p e . T his con­ n e c t i o n i s f u r t h e r s t r e n g t h e n e d by th e f a c t t h a t Turkey i s t h e n e a r e s t c o u n t r y p r o d u c i n g l a r g e q u a n t i t i e s of a g r i ­ c u l t u r a l p r o d u c t s and raw m a t e r i a l s f o r e x p o r t t o t h o s e m ark ets. 14 E x a m i n a t i o n of t h e f o l l o w i n g t a b l e , h o w e v e r , Europe’ s tr a d e , 15I b i d . . p . 7. o£ . c i t . . p . 9 . 97 w i l l g i v e f u r t h e r l i g h t on t h e d i r e c t i o n o f T u r k i s h f o r e i g n t r a d e b y c o n t i n e n t s i n 1 9 28 and 1 9 3 8 . T a b l e IV : P e r c e n t a g e D i s t r i b u t i o n o f T u r k e y ♦s F o r e i g n T r a d e by C o n t i n e n t s . P e r c e n t a g e s h a r e of im ports P e r c e n t a g e s h a r e of exports 1928 _______ 1938______ 1928___________ 1958 Europe Am ericas 80.5 82.8 74.0 81.3 5.5 11.8 16.0 13.2 R e s t of t h e w o r l d 5 . 0 ______________ 5 . 4 ______ 1 0 . 0 _____________ 5 . 5 100. Source: 1 0 0 .' 100. 100. A n n u s ire , S t a t i s t i q u e s , A nkara. A n a l y s i s . o f T a b l e IV r e v e a l s s t r i k i n g l y t h a t T u r ­ k e y i n h e r f o r e i g n t r a d e i s v e r y much d e p e n d e n t on E u r o p e , n o t a b l y t h e y/estern and C e n t r a l E u ro p ean c o u n t r i e s . ■ I n 1928 T u r k e y d i s p o s e d o f 74 p e r c e n t o f h e r t o t a l e x p o r t s i n European c o u n t r i e s , w h ile th e s e c o u n t r i e s s u p p lie d 8 0 .5 p e rc e n t of T urkish im o o rts. By 1938 b o t h e x p o r t s t o and i m p o r t s f r o m E u r o p e c o n t i n u e d t o i n c r e a s e and w e r e 8 1 . 3 - p e r c e n t and 8 3 . 8 p e r c e n t r e s p e c t i v e l y . W h ile im­ p o r t s fro m th e Americas i n c r e a s e d from 5 .5 p e r c e n t t o 1 1 . 5 , e x p o r t s t o t h e s e c o u n t r i e s d e c r e a s e d f r o m 16 p e r c e n t t o 1 3 .2 p e rc e n t of th e t o t a l e x p o r t s . The o t h e r c o n t i n e n t s , A s ia and A f r i c a , r e p r e s e n t e d o n l y a s m a ll p a r t of T u r k is h fo reig n trad e , c h i e f l y b e c a u s e t h e y a r e a l s o p r o d u c e r s of f o o d s t u f f s a n d a g r i c u l t u r a l raw m a t e r i a l s . 98 As l o n g a s T u rk ey’ s t r a d e r e p r e s e n t s an e x c h a n g e o f a g r i c u l t u r a l p r o d u c t s and m i n e r a l o r e s a g a i n s t manu­ f a c t u r e d a r t i c l e s , E u ro p e ’ s s h a r e i n T u rk ish t r a d e w i l l c o n tin u e t o be the l a r g e s t . Even when Turkey h a s a c ­ c o m p lis h e d i t s p r o p o s e d i n d u s t r i e s , t h i s w i l l h o t b r i n g about a d e c l i n e in European p r o d u c t s i n t h e T u rk ish mar­ k e t , b u t , on th e c o n t r a r y , w i l l i n c r e a s e i t . With the i n d u s t r i a l i z a t i o n o f Turkey, i t s l i v i n g sta n d a r d , sh o u ld i n c r e a s e and a s a r e .s u i t i t s tr a d e w ith Europe and t h e r e s t o f t h e w o r ld sh o u ld expand. D i s t r i b u t i o n o f Trade by L e a d in g C o u n t r i e s . P r i o r t o World War I I , th e p r i n c i p a l m a rk ets f o r T u rk ish p r o d u c t s w e r e Germany, t h e U n ite d S t a t e s , I t a l y , th e U n it e d Kingdom, F r a n c e , S o v i e t L u s s i a , &n e r m i s s i o n of the M i n i s t r y o f F in a n c e . No e x c h a n g e t j o u l d be o b t a i n e d f o r the i m p o r t a t i o n of n o n - e s s e n t i a l p r o d u c t s which were l i s t e d i n each quota erio d . E s s e n t i a l im o o rts such a s 153 c a p i t a l g o o d s were exem p t f r o m e x c h a n g e r e s t r i c t i o n s . I n most c a s e s , hcw ever, c e r t a i n i t e m s such a s f e r t i l i z e r , a g r i c u l t u r a l m a c h i n e s , and s u p p l i e s w e r e g i v e n p r i o r i t y . The p o o l c a r r i e d ou t i t s f u n c tio n s u n t i l the e s ­ t a b l i s h m e n t of t h e C e n t r a l Bank of T u r k e y on O c t o b e r 3 , 1951. T h e-B ank t o o k o v e r the d u t i e s of t h e p o o l , a n d b e ­ came t h e s o l e f i s c a l a g e n t o f t h e G o v e r n m e n t . I t was a u t h o r i z e d t o i s s u e n o t e s , r e g u l a jS e t h e money m a r k e t and money c i r c u l a t i o n , ana t o p r e p a r e , w i t h t h e G o v e r n m e n t , the m easu res n e c e s s a r y to s t a b i l i z e th e v a lu e of the l i r a . I n a d d i t i o n t o t h e a b o v e m e a s u r e s w h i c h were a l l d e s i g n e d t o p r o t e c t t h e v a l u e of t h e l i r a t h r o u g h c o n t r o l ­ l i n g th e flo w of exchange f o r t h e p u rp o s e of h av in g a f a v o r a b l e b a l a n c e of t r a d e , t h e Government t o o k some c o m p l e ­ m entary m easu res. Of t h e s e m e a s u r e s t h e a d o p t i o n o f t a r i f f s , i m p o r t p u o t a s and i m p o r t l i c e n s i n g h a v e a l r e a d y b e e n men­ tioned. The c l e a r i n g and c o m p e n s a t i o n a g r e e m e n t s w i l l b e analyzed in th e n e x t s e c tio n . A doption of th e s e v a rio u s c o n t r o l m easures were s u c c e s s f u l i n r e d u c i n g t h e volume o f i m p o r t s , a n d m a i n ­ t a i n i n g an a c t i v e b a l a n c e o f t r a d e d u r i n g m o s t of t h e y e a r s s in c e 1930. o p 25 See T ab le I , T rade o f T u r k e y . p a g e 6 5 , The B a l a n c e o f f o r e i g n 154 Currency D ev alu atio n D e v a lu a tio n had been c o n s i s t e n t l y avoided u n t i l t h e o u t b r e a k o f '.7o r I d Y/ar I I i n 1 9 5 9 , I n f a c t , t h e m a in o b j e c t i v e o f t h e l a w p a s s e d i n 1930 f o r t h e p r o t e c t i o n o f the v a l u e of the T u r k i s h c u r r e n c y was t o p r e v e n t t h e l i r a from b e in g d e p r e c i a t e d . Ho w ever, one may w o n d e r how T u r ­ key m a in ta in e d th e v a lu e of h e r c u rre n c y a t h ig h l e v e l s w h i l e many of t h e n a t i o n s d e v a l u a t e d t h e i r in the t h i r t i e s . currencies I n the f i r s t p l a c e , i t w i l l b e remem­ b e r e d from the p r e v i o u s s e c t i o n t h a t s p e c u l a t i o n in f o r e i g n e x c h a n g e was p r o h i b i t e d . The v a l u e of t h e l i r a was k e p t a t t h e r a t e of 47 c e n t s i n 1 9 5 0 . l i r a was t i e d to sterlin g I n A u g u s t of 1 9 5 1 , t h e a t t h e r a t e of 10.51 l i r a s t o a p o u n d , t h e e q u i v a l e n t of 4 7 . 2 c e n t s . When t h e u n i t e d Kingdom a b a n d o n e d t h e g o l d s t a n d a r d o n S e p t e m b e r 2 1 , 1 9 3 1 , t h e T u r k i s h l i r a was t i e d t o t h e f r a n c a t an e x c h a n g e r a t e of o n e l i r a t o 12 f r a n c s . Thus i n w o r l d e x c h a n g e m a r k e t s t h e r a t e o f th e l i r a f l u c t u a t e d w ith the f r a n c . f r a n c was p e g g e d t o g o l d , th e v a r i a t i o n i n exchange r a t e s was l i m i t e d w i t h i n t h e g o l d p o i n t s . of t h e f r a n c wer< S in c e the I n t h i s way, i f t h e v a l u e t o i n c r e a s e i n t e r m s of t h e d o l l a r , o r o th e r c u rr e n c ie s pegged to g o ld , the l i r a c r e a s e a t t h e same r a t e . a l s o w o u ld i n ­ T h i s h a p p e n e d i n 19 53 when t h e U n i t e d S t a t e s p r o h i b i t e d t h e e x p o r t a t i o n o f g o l d o f any kind. As a r e s u l t o f t h i s p r o h i b i t i o n on g o l d e x p o r t , th e exchange r a t e of th e d o l l a r d e c re a s e d i n term s o f the f r a n c , and a l s o in te rm s of th e l i r a t h e new r a t e 155 b eing 6 0.4 c e n ts to the l i r a . Vixen t h e U n i t e d s t a t e s d e ­ v a l u e d h e r c u r r e n c y f r o m $21 an o u n c e t o y35 an o u n c e , o r a d e c r e a s e o f 41 n e r c e n t , on J a n u a r y 3 1 , 1 9 3 4 , t h e e x ­ ch an g e r a t e o f t h e f r a n c end o f t h e l i r a was i n c r e a s e d . Thus t h e e x c h a n g e r a t e o f t h e T u r k i s h l i r a i n c r e a s e d t o 79 c e n t s i n 1 9 3 4 . ”h e n F r a n c e d e v a l u e d h e r c u r r e n c y i n S e p t e m b e r o f 1936 t h e l i r a was d i v o r c e d f r o m t h e f r a n c , and m a i n t a i n e d a t i t s previous r a t e f one l i r a to about 80 c e n t s u n t i l 1 9 4 0 . Ho w ever, t h i s s t a b i l i t y i n t h e v a l u e o f T u r k i s h c u r r e n c y d i d n o t mean t h a t t h e demand a n d s u p ­ p l y c o n d i t i o n s w e r e i n :-n e q u i l i b r i u m . I t was rim arily th e r e s u l t of th e a d o p ti o n o f th e c l e a r i n g sy stem of t r a d e w h i c h l e s s e n e d t h e u s e o f money t o a c o n s i d e r a b l e d e g r e e . On t h e o t h e r h a n d , the* p o s i t i o n o f t h e l i r a in the ex­ c h a n g e m a r k e t i m p r o v e d a s t h e C e n t r a l Hank o f T u r k e y i n ­ creased i t s gold r e s e r v e s . N e v e r t h e l e s s Turkey had b e e n f a c e d w i t h many d i f f i c u l t i e s when s h e t r a d e d w i t h t h o s e c o u n t r i e s w h ich r e q u i r e d P aym ents i n f r e e e x c h a n g e . Thus, f o r exam ple, i n t r a d i n g w ith th e " n i t e d S t a t e s o r th e U n ited Kingdom t h e i s s u i n g o f e x c h a n g e p e r m i t s was s u s p e n d e d u n t i l T u r k e y h a d s u f f i c i e n t amount o f e x c h a n g e a v a i l a b l e . I n some c a s e s i m p o r t s f r o m t h e U n i t e d S t a t e s w e r e compen­ s a t e d f o r by e x p o r t s o f T u r k i s h p r o d u c t s . A f t e r t h e o u t b r e a k o f World War I I , i n 1939, Turkey c o u l d no l o n g e r m a i n t a i n s t a b i l i t y i n t h e l i r a w i t h f r e e exchange c o u n t r i e s . The v a l u e o f t h e l i r a w a s r e d u c e d s l i g h t l y f r o m 80 c e n t s t o 76 c e n t s i n A u g u s t o f 1 9 3 9 . But, 156 s i n c e t h i s r a t e w as s t i l l h ig h Turkey t r a d e d v e r y l i t t l e w ith f r e e exchange c o u n t r i e s . R ath er th an d ev alu ate the l i r a f u r t h e r t h e Government a d o p t e d t h e premium s y s t e m f o r t r a d ­ ing w ith f r e e exchange c o u n t r i e s - n o ta b ly w i t h th e United S t a t e s and th e G r e a t B r i t a i n . U n d e r t h i s s y s t e m e x p o r t e r s w e r e g i v e n a prem ium o f 25 p e r c e n t o n e x p o r t s t o t h e U n i t e d S t a t e s , w h i l e i m o o r t e r s w e r e c h a r g e d 3 8 . 5 p e r c e n t on p u r c h a s e o f d o l l a r e x c h a n g e . T h u s , f o r U n i t e d S t a t e s i m p o r t e r s t h e p u r c h a s i n g power of th e d o l l a r i n c r e a s e d from 1 .3 0 l i r a s t o 1 .6 2 5 l i r a s . Where­ as f o r th e T u rk is h i m p o r te r t h e r a t e of l i r a d e c r e a s e d f r o m 76 c e n t s t o 55 c e n t s . The amount o f p r e m iu m s t o b o t h e x p o r t e r s and im­ p o r t e r s was c h a n g e d s e v e r a l t i m e s . intended to in c re a s e e x p o rts , The premium s y s t e m w a s and w i t h i n t h e f r a m e w o r k o f com pensation agreem ents to in c r e a s e im p o rts . At t h e same t i m e p r i c e c o n t r o l s w e r e p l a c e d on i m p o r t e d p r o d u c t s . i t m i g h t be c o n s i d e r e d a s a p r i c e So s t a b i l i z a t i o n m easure r a t h e r th a n a n exchange r e g u l a t i n g m easure. N eith er t h is system nor o t h e r p r i c e c o n t r o l m easures worked o u t s u c c e s s f u l l y . The g e n e r a l p r i c e l e v e l r e a c h e d a b o u t 450 p e r c e n t i n 1944 and a t t h e e nd o f 1945 i t r e m a i n e d a t a b o u t 350 p e r c e n t com pare d w i t h 1938 a s 1 0 0 . Due t o th e h ig h exchange r a t e of th e l i r a , and h ig h p r i c e s a t home, e x p o r t s o f a g r i c u l t u r a l p r o d u c t s a l m o s t s t o p p e d d u r i n g 157 f i r s t h a l f o f 1 9 46 . U n de r t h e s e c o n d i t i o n s t h e T u r k i s h Go v ern m ent f e l t c o m p e l l e d t o d e v a l u e h e r c u r r e n c y oil Septem ber 7, 1946. The new e x c h a n g e ■r a t e w a s f i x e d a t 2 . 8 2 l i r a s to one d o l l a r - t h e d e p r e c i a t i o n b e i n g 41 p e r c e n t . The i m m e d i a t e e f f e c t o f t h e d e p r e c i a t i o n was a m a r k e d i n ­ c r e a s e i n e x p o r t t r a d e due t o t h e d e c l i n e i n p r i c e s of T u rk ish p ro d u c ts in term s of f o r e i g n c u r r e n c i e s ; w hile t h e r e was a s u b s t a n t i a l d r o p i n i m p o r t t r a d e b e c a u s e of t h e i n c r e a s e i n p r i c e s of i m p o r t e d g o o d s i n t e r m s of T urkish currenc v i n 1947. At p r e s e n t T u r k e y i s a member- i n t h e I n t e r n a t i o n a l M onetary Fund. T h u s , T u r k i s h ■e x c h a n g e p o l i c i e s a r e t i e d t o the p o l i c i e s s e t by t h e F u n d , w h i c h h a s u n d e r t a k e n t o p r o m o te e x c h a n g e s t a b i l i t y and t o a v o i d c o m p e t i t i v e e x ­ change d e p r e c i a t i o n . I t a ls o has a u t h o r i t y to f i x ex­ c h a n g e r a t e s of t h e member c o u n t r i e s , a n d t o a s s i s t i n t h e r e m o v a l o f f o r e i g n e x c h a n g e r e s t r i c t i o n s t h a t hamper w o r l d trad e. 158 A CHAPTER X I V OTHER I33ASURES REGULATING TRADE C learin g Perhaps fo reig n in trad e her trad e sy stem of one of p o licies was trie s during: the trie s t" clearin g use L ooking im port was th e th irtie s. back in in 195.3. the 19131,26 Th e p refo ren tia l treatm en t high on p r o d u c t s ta riffs The U n i t e d est S tates ta riffs q uota sy stem , cu ltu ral tu re, in its and pro d u cts by clearin g agreem ents co u n tries. are th at T his led many th irtie s; G reat p o licy B rita in and in tro d u c e d O ttow a agreem ent of o th er H aw ley-S m oot A ct France san itary b eg in n in g in 87 League of n a tio n s , 1943, p . 17. 1933 p ro v id e d Common H e a l t h im p o rted from 29 n atio n s, n atio n s. ad o p ted in tro d u ced reg u latio n s 1931. coun­ aban­ on many a g r i c u l t u r a l the coun­ v ario u s. 30 In 2 6 K a r l E r a h d t , The R e c o n s t r u c t i o n S ta n fo rd U n iv e rsity , 1945, p . 83. Geneva, T u rk ish b y many E u ro p e a n The c a u s e s trad e of q u o tas h isto ry . stric t of ad o p ted among the featu re certain agreem ents at P7 use w ith w id ely tra d itio n al free d u ties p roducts o u tstan d in g rela tio n sh ip s trad in g doned h e r th e S ystem Q u an titativ e th e an and 23 h ig h - im port on many ag ri- G erm any e v e r y of W orld A g r i c u l ­ T rade C o n tro ls, g o L e a g u e o f N a t i o n s , C om m ercial P o l i c y war P e r io d , Geneva, 1942, p. 71. 29 p o licy , Op. c i t . , Q u an titativ e L a w r e n c e W. T o w l e , H a y e r and B r o t h e r s , Trade in C o n tro l, In te rn atio n a l 1947, p. 432. trad e the p. Injfeer- 13. ana com m ercial 159 fo reig n a trad e t r e n s a c t i on was cen tralized o rg an izatio n . c o n tr o l m e a su res w ere Europe, land, and in clu d in g G reece, came got d e fin ite ly to under way. tic a lly for e c onomi c B u lg aria, Thus an it was how ever, co u n tries . ag ric u ltu ra l S ta te s, tie s k ish joyed France, needed n ish es of th e p ro d u cts becam e pro d u cts and the c o u n tries w orld of in F in ­ Y u g o slav ia, in te rn atio n a l trad e p ro tectio n ism trad e f rom i t s n a t u r a l in in th ese of to of- t h e such France co u n tries th e 32 shrank dras­ e n d mo-st e ffe c ts G reat T able the and th eir V on p a g e on B rita in did on sm all the sam e. in m ark ets, im p o rts sm all ag ricu l­ the gre?t of big ex p o rts U nited d iffic u l­ in d u stria l Turkey fu r­ co u n tries. co tto n , and T ur­ fru its and F r a n c e . same of th eir K ingdom , econom ies. w ool, im -o rtin g League of N atio n s, 1944, pp. 162-172. See for th eir p o lic ie s d e c lin es u n ited p ay in g 31 32 trad e burden sharp as m o h air, in iu p ro tected d ev elo p in g E n gland b e g a n v a s t em pire. a great o th er a good m a rk e t Geneva, of exchange D enm ark, S p ain , a new e r a change Because an e x a m p le how ever, to era and d iv erted we.re e x p e r i e n c e d goods of of ch an n els. n atio n s, of go ld en end, a num ber N orw ay, c o n tro l fo reig n C zech o slo v ak ia, C o n seq u en tly The e f f e c t s tu ral by Ita ly , the under the F u rth erm o re, ad o p ted G erm any, T u rk e y .^ brought en­ A fter a rticles 1950, from , h e r Thus T u rk ish ex p o rts d o m in io n s dropped sh arp ly . In te rn atio n a l 99. C urrency E x p e rie n c e , 160 In th e f a c e of t h i s s i t u a t i o n Turkey chose to seek o t h e r m arkets f o r h e r a g r i c u l t u r a l e x p o r t s . I n t h e m e a n ti m e Germany was t o o b u s y t r y i n g t o f i n d r e m e d i e s f o r u n e m p l o y m e n t , t o s e a r c h new o u t l e t s and so u rces of sup p ly . .YJmth’ t h e r i s e o f H i t l e r i n 19 2 3, G e r ­ many a d o p t e d a n e x t e n s i v e p r o g r a m f o r t h e p r e p a r a t i o n o f a t o t a l w ar. T h i s p r o g r a m r e n u i r e d l a r g e am o un ts of r a w m a t e r i a l s and f o o d s t u f f s . C onsequently h e r tra d e p o lic y was d i r e c t e d f i r s t and f o r e m o s t t o t h e s e e n d s . In her new t r a d e p o l i c y Germany n o t o n l y s o u g h t t h o s e c o u n t r i e s w h ic h w e r e w i l l i n g to s e l l raw m a t e r i a l s and p u r c h a s e i n d u s t r i a l g o o d s , b u t a l s o t h o s e whose c o m m u n i c a t i o n s would n o t be c u t o f f f r o m Germany i n t i m e o f w a r . the Danubian c o u a t r i e s , seemed w e l l Thus t h e Balkan S t a t e s i n c l u d i n g Turkey su ited f o r th is purpose. In carry in g out her t r a d e r e l a t i o n s Germany a d o p t e d t h e c l e a r i n g s y s t e m w h i c h d i d n o t r e q u i r e t h e u s e of f o r e i g n e x c h a n g e . She a l s o i n t r o d u c e d s u b s i d i e s f o r i m a o r t s , and i n some c a s e s f o r exports, t o expand h e r f o r e i g n t r a d e . I n t h i s way e x p o r t s t o Germany w e r e a b l e t o r e c e i v e h i g h e r p r i c e s t h a n t h e o th e r m arkets. Su c h an a r r a n g e m e n t w a s welcomed by T u r k e y , s i n c e i t o f f e r e d an a n s w e r a t l e a s t p a r t i a l l y t o h e r e c o n o m i c problem s. C o n s e q u e n t l y a n a g r e e m e n t w a s s i g n e d b e t w e e n th e two c o u n t r i e s i n A u g u s t 1 9 5 3 . By t h i s a g r e e m e n t Germany a g r e e d t o g u a r a n t e e t h a t t h e b a l a n c e of t r a d e be i n T u r k e y ' s 161 f a v o r a t a m a r g i n o f 30 p e r c e n t . T his f i t t e d Turkey’ s d e b t o r p o s i t i o n s i n c e i n t h i s way s h e w a s a b l e t o p a y p a r t o f the b o n d e d i n d e b t e d n e s s of th e Ottoman E m p i r e , o f w h i c h German b o n d h o l d e r s h e l d a c o n s i d e r a b l e s h a r e . The f i r s t e x p e r i m e n t s w i t h t h e c l e a r i n g system o f t r a d e p r o v e d so s u c c e s s f u l t h a t i t was a d o p t e d a s a d e f i n i t e T urkish f o r e i g n t r a d e p o l i c y . New a g r e e m e n t s w e r e s i g n e d w i t h 22 E u r o p e a n n a t i o n s i n c l u d i n g I t a l y , S o v i e t U n io n , C z e c h o s l o v a k i a , B e l g i u m , Sweden, F r a n c e , S w i t z e r l a n d , and t he N e t h e r l a n d s . I n a l l t h e s e a g re e m e n ts i t was c l e a r l y s t i p u l a t e d t h a t an amount e q u i v a l e n t t o 2 0 - 3 5 p e r c e n t o f t h e v a l u e o f t h e i m p o r t s - f r o m T u rk e y would b e k e p t i n a s p e c i a l a c c o u n t i n e a c h o f t h e s e c o u n t r i e s , and c: e d i t e d t o t h e C e n t r a l Bank of T u r k e y , t o b e u s e d or c o n v e r t e d f r e e l y and w i t h o u t a n y r . s t r i c t ! o n . This u ro g ram a s s i s t e d T u r k e y i n mov in g t o w a r d s h e r e s t a b l i s h e d f o r e i g n commerce p o lic ies, th at i s , to f a c i l i t a t e v a l u e of T u r k i s h c u r r e n c y , e x p o rts , to p r o t e c t the to a t t a i n a f a v o ra b le balance of t r a d e , t o p a y o f f f o r e i g n d e b t s , to p r o t e c t t h e n a t i o n a l i n d u s t r i e s and t o c o n t r o l f o r e i g n t r a d e m ore e f f e c t i v e l y . Under th e c l e a r i n g system f o r e i g n t r a d e to o k p l a c e w i t h o u t t h e e x c h a n g e of f o r e i g n c u r r e n c i e s . Im p o rters in Turkey p a id i n t o th e c l e a r i n g fu n d , e s t a b l i s h e d i n th e C e n t r a l Ba nk, f o r t h e g o o d s t h e y i m p o r t e d f r o m , s a y , G e r ­ many. On t h e o t h e r h a n d when T u r k i s h e x p o r t e r s s o l d c e r ­ t a i n p r o d u c t s t o Germany t h e y w e r e p a i d f r o m t h e c l e a r i n g fund. The same t h i n g t o o k p l a c e i n t h e same way i n Germany. 162 I n t h i s f o rm of t r a d e t h e m ov em ents of g o o d s was r e f l e c t e d by t h e e x c h a n g e r e t e b e t w e e n t h e two c o u n t r i e s . The o n l y r e f e r e n c e to e x c h a n g e r a t e was m ade when t h e r e p r e s e n ­ tativ es o f b o t h c o u n t r i e s s e t up a r e l a t i o n s h i p b e t w e e n th e ir resp ectiv e c u rren cies. s e t t i n g up a r e l a t i o n s h i p The m e t h o d s e m p l o y e d i n ancl t h u s v a l u i n g t h e i r i m p o r t s and e x p o r t s , h o w e v e r , v a r i e d i n e a c h a g r e e m e n t s i g n e d w i t h d iffe re n t co u n tries. The g e n e r a l f o r m o f p r o c e d u r e was t o f i x a s p e c i f i c r a t e f o r t h e y e a r and t h e n u s e i t a s a b a s i s i n c a l c u l a t i n g t h e v a lu e of t r a d e . I n some c a s e s c o n v e r s i o n i n t o n a t i o n a l c u r r e n c y was made by u s i n g a v e r a g e d a i l y r a t e s i n t h e c o n t r a c t i n g c o u n t r i e s and i n some o t h e r s by . . s i n g t h e d a i l y e x c h a n g e r a t e in stan ce, and of a t h i r d c o u n try . S'or i n c a l c u l a t i n g th e v a l u e of t r a d e b etw een Turkey i n l a n d t h e d a i l y a v e r a g e r a t e of s t e r l i n g w a s u s e d a s a basis. At f i r s t g l a n c e one may n o t f i n d a n y t h i n g w rong w ith th e c l e a r i n g system of t r a d e . p ro c e d u re i s n o t so sim ple a s i t N e v e r t h e l e s s t h e whole seems. A t t i m e s when t h e r e was n o t an a p p r o p r i a t e sum i n t h e c l e a r i n g f u n d e x ­ p o r t e r s h a d t o w a i t f o r s e v e r a l d a y s , w e e k s , and e v e n m onths b e f o r e t h e y w ere p a i d by the c l e a r i n g o f f i c e . s i t u a t i o n w a s e v e n more d i f f i c u l t f o r t o u r i s t s . The I f there was n o t e n o u g h a p p r o p r i a t e money i n t h e c l e a r i n g o f f i c e 163 i t w o u ld b e i m p o s s i b l e t o t a k e a t r i p t o a f o r e i g n 33 country. Turkey e x p e r ie n c e d o t h e r d i f f i c u l t i e s fro m t h e adop­ t i o n of a c l e a r i n g system , too. The m o s t i m p o r t a n t o f them was t h e o c c u r r e n c e of t h e - T u r k i s h b l o c k e d a c c o u n t s i n many c o n t r a c t i n g t u r n gave r i s e p o rters. c o u n t r i e s , n o t a b l y u-ermany. This in t o d e l a y s i n p a y m e n t s t o t h e T u r k i s h ex ­ E x p o rte rs h av in g blocked acco u n ts o f f e r e d c e r ­ t a i n a m o u n t s of money t o i m p o r t e r s , i f t h e y i m p o r t e d go o d s e q u a l t o t h e v a l u e of t h e i r b l o c k e d f u n d s , f r o m t h e c o n ­ t r a c t i n g country. This k in d of p r i v a t e co m p e n sa tio n a r ­ ran g e m en ts te n d e d to i n c r e a s e i m p o r t s fro m t h a t c o u n t r y . I n o r d e r t o a v o id the d i f f i c u l t i e s a r i s i n g from th e s e blocked a c c o u n ts, c le a r i n g a g reem en ts, p a r t i c u l a r l y t h o s e w i t h Germany, and I t a l y , w e r e s u p p l e m e n t e d by com­ p e n sa tio n agreem ents. T h i s s y s t e m of t r a d i n g p r o v i d e d t h a t a p a r t i c u l a r shipment had t o be l i n k e d o r com pensated f o r by a n e q u a l i m p o r t s h i p m e n t . The c o m p e n s a t i o n a g r e e m e n t s s p e c i f i e d t h e t o t a l volum e o f t r a d e a n d t h e c o m m o d i t i e s w h i c h m i g h t be t r a d e d b e t w e e n t h e ries. two c o n t r a c t i n g c o u n t ­ I n t h i s way t h e p o s s i b i l i t y o f b l o c k e d a c c o u n t s 33 I t was t h e p e r s o n a l e x p e r i e n c e o f t h e w r i t e r i n 1944* a f t e r c o m p l e t i n g a l l t h e f o i m a l i t i e s f o r g o i n g t o S w i t z e r l a n d t o b e u n a b l e t o o b t a i n Swifcs c u r r e n c y . The r e a s o n f o r t h i s was t h a t i n t h a t p a r t i c u l a r p e r i o d S w i s s im p o r ts from Turkey w ere i n s u f f i c i e n t t o c r e a t e an e x c e s s of exchange; t h e r e f o r e , e v e n a s a Govern m en t s t u d e n t h e was n o t a l l o w e d t o e n t e r S w i t z e r l a n d . 164 was p r e v e n t e d , end t h e r e b y e x p o r t e r s w ere e n a b l e d t o g e t t h e i r f u n d s w i t h o u t und u e d e l a y . A n o t h e r d i f f i c u l t y t h a t T u r k e y e x p e r i e n c e d was t h e g r e a t ten d en cy to w ard s d iv e r s io n of T u rk ish t r a d e from th e f r e e exchange c o u n tr i e s . Because o f the h i g h p r i c e s p a i d f o r t h e T u r k i s h p r o d u c t s b y Germany i t w a s v e r y d i f f i c u l t f o r Turkey t o t r a d e w i t h o t h e r c o u n t r i e s . Thus w i t h t h e p a s s ­ ag e of t i m e T u r k e y b ecame more d e p e n d e n t on t h e e v e r e x ­ p a n d i n g German m a r k e t . I n t h e b e g i n n i n g German e x p o r t s e r e s o l d a t p r i c e s s u f f i c i e n t l y lo w t o d i s c o u r a g e t h e m e r ­ c h a n t s of o t h e r c o u n t r i e s . T h en , when t h e T u r k i s h m a r k e t was c l e a r e d o f c o m p e t i t i o n , Germany t r i e d t o t a k e f u r t h e r s t e p s t o d i c t a t e t h e p r i c e and t y p e o f p r o d u c t s t o b e im­ p o r t e d an d e x p o r t e d . How ev er, t h e s e a t t e m p t s w e r e n o t a l ­ ways s u c c e s s f u l . A n o t h e r f e a t u r e o f t h e c l e a r i n g t r a d e w i t h Germany w a s f t h a t Germany r e e x p o r t e d some o f t h e T u r k i s h p r o d u c t s s u c h a s f i g s , r a i s i n s , a n d n u t s f o r f r e e e x c h a n g e and t h u s s h e became T u r k e y ’ s c o m p e t i t o r w i t h T u r k i s h p r o d u c t s s o l d d i r e c t l y by T u r k e y . The c l e a r i n g s y s t e m o f t r a d i n g , w h i c h se em ed a p p r o p ­ r i a t e i n te rm s of s h o r t ru n p r o s p e c t s , h a s s e v e r a l o t h e r disadvantages. One o f t h e m a j o r d i f f i c u l t i e s i s t h a t Tur­ k e y was t i e d c l o s e r and c l o s e r i n t o t h e e c o n o m ic o r b i t of Germany and l o s t a c o n s i d e r a b l e m e a s u r e of i n t e r n a t i o n a l 165 e con o m ic f r e e d o m . L a t e r a c t i o n was t a k e n t o r e d u c e t h i s dependence b u t a t c o n s id e r a b le s h o r t ru n c o s t . A second m ajor d i f f i c u l t y i s t h a t t r a d e seldom fo llo w s a pu re b i ­ la te ra l basis. Under f r e e i n t e r n a . t i o n a l t r a d i n g T u rk ey ’ s c o m p a r a t i v e a d v a n t a g e p r o b a b l y w o u l d p e r m i t s e n d i n g more g o o d s t o t h e U n i t e d S t a t e s t h a n sh e p u r c h a s e d , w h i l e sh e w ould p u r c h a s e more g o o d s , f o r e x a m p l e , f r o m I t a l y t h a n she s o l d t o I t a . l y , C o m p le t e b i l a t e r a l i s m p r o b a b l e w o u l d r e d u c e e x p o r t s t o t h e U n i t e d S t a t e s and i m p o r t s f r o m I t a l y , t h u s r e d u c i n g t h e t o t a l volunie o f i n t e r n a t i o n a l t r a d e and r e d u c i n g somewhat t h e g e n e r a l w e l f a r e o f t h e T u r k i s h p e o p l e . W hether p r a c t i c a l problem s o f i n t e r n a t i o n a l t r a d i n g r e l a ­ t i o n s w i l l p e r m i t th e r e e s t a b l i s h m e n t of such i d e a l t r a d i n g r e l a t i o n s may b e q u e s t i o n e d ; n e v e r t h e l e s s e f f o r t s s h o u l d be made w h e n e v e r f e a s i b l e t o move t o w a r d s t h e g o a l o f p e r ­ m i t t i n g m u l t i l a t e r a l b a l a n c i n g o f a c c o u n t s and i n c r e a s e i n t h e a g g r e g a t e volume o f t r a d e . T h e r e s h o u l d be a l s o m e n tio n ed t h a t th e complex r e g u l a t i o n s o f i n t e r n a t i o n a l c u r r e n c y i n c r e a s e d t h e c o s t s o f i m p o r t i n g and e x p o r t i n g and h e l p e d to c o n c e n t r a t e t r a d i n g f i r m s i n c i t i e s a c c e s s i b l e t o t h e C e n t r a l Bank o r t r a d e a u t h o r i t i e s . D espite th ese shortcom ings in h e r e n t i n th e c le a rin g s y s t e m o r s o - c a l l e d b i l a t e r a l t r a d e , f r o m 1933 t o 1940 i t d id a s s i s t in b rin g in g about a tra d e b a la n ce in fa v o r of Turkey ( s e e T ab le I ) . As was i n d i c a t e d a b o v e , many o f t h e c o n t r a c t i n g c o u n t r i e s g u a r a n te e d t o Turkey a s u r p l u s 166 o f f o r e i g n e x c h a n g e , m akin g i t p o s s i b l e f o r h e r t o h a v e a n e x c e s s o f e x p o r t s o v e r i m p o r t s and p a y o f f h e r f o r e i g n d ebts. N e v e r t h e l e s s a f t e r a d o p tin g t h i s system of t r a d ­ ing Turkey’ s f o r e i g n t r a d e h as never reached i t s previous le v e l under f r e e tr a d e during the tw e n tie s . D u r i n g t h e p e r i o d 1 9 3 3 - 3 9 a b o u t 83 p e r c e n t o f t h e i m p o r t and 80 p e r c e n t of t h e e x p o r t t r a d e o f T u r k e y was w i t h c o u n t r i e s h a v in g - c l e a r i n g a g r e e m e n t s w i t h T u r k e y . A f t e r G e r m a n y 's o c c u p a t i o n of A u s t r i a i n March 19 38 and of C z e c h o s l o v a k i a i n March 1 9 3 9 , f o l l o w e d by I t a l y ’ s i n ­ v a s i o n of A l b a n i a i n A p r i l 1 9 3 9 , T u r k e y d e c i d e d t o d i m i n i s h her tra d e r e l a t i o n s w ith th e se c o u n tr ie s . D espite g re a t e f f o r t s made by Germany i n 1940 t h e a g r e e m e n t was n o t r e n e w e d b-- T u r k e y . As a r e s u l t T u r k e y ’ s t r a d e w i t h G e r ­ many d r o p p e d s u d d e n l y f r o m 37 p e r c e n t o f t h e t o t a l e x p o r t s i n 1939 t o 8 . 7 p e r c e n t i n 1940, w hile im p o rts d e c r e a s e d f r o m 51 p e r c e n t t o 1 1 . 7 p e r c e n t f o r t h e same y e a r s . Premium S y s t e m I n t h e s e c t i o n on c u r r e n c y d e v a l u a t i o n i t was p o i n t e d o u t t h a t i n o r d e r t o i n c r e a s e e x p o r t s t h e Au r k i s h g o v e r n ­ m e n t b e g i n n i n g i n 1 9 4 0 , a d o p t e d t h e c o m p e n s a t i o n pr em ium system i n t r a d i n g w i t h f r e e - e x c h a n g e c o u n t r i e s . A nother o b j e c t i v e of e m p l o y i n g t h i s s y s t e m was t o l i m i t and r e d u c e t h e e v e r i n c r e a s i n g German p e n e t r a t i o n i n t o t h e c o u n t r y ’ s p o l i t i c a l and e c o n o m ic l i f e . S t i l l a n o t h e r aim was t o p r e ­ 167 vent im p o rters fu rth er trad e from r a i s i n g co n sid eratio n w ith the co u n tries ly th e by to co u n teract it is tru e duced U nited buy the not sell S ta te s th at th eir was m any of o riced th eir p rices. reg ain th e G reat the Turkey TUr k i s h goods free in F in a lly a larg er free exchange of and T u rk ish In f a c t, they or because m arket in her th ere­ co u n tries e ith e r because p ro d u cts of (p a rtic u la r­ trad in g . exchange a share B rita in ), G erm an m e th o d trad e w ith h ig h to h av in g and the th eir re ­ co u ld they not co u ld co m p etitio n w ith Germ any. Under th e im p o rters to f r e e p aid to the U n ited 5 8 .5 in v o lv in g im p o rts. These G overnm ent several th e 5 8 .5 percent to rate 1 .5 0 th e of In im p o rters to of 5 5 .3 of U n ited percent (or 2, ex p o rts to si^stem 1940 the prem ium on ex­ w ith th e on e x c h a n g e d o lla rs for the acco u n ts ex p o rts tran sact paym ent h eld by w h ich was g iv e n of a com­ o p eratio n s. co m p en satio n d o lla r, January "Takas L td ." A ugust T u rk ish T u rk ish exchange raid co m p en satio n amount from of th e s e e how t h i s co llected p u re r a se known us C o in cid en t prem ium s w ere agency tim es. 25 p e r c e n t S ta te s. th e Let the B eg in n in g percent m onopoly o f The a trad in g prem ium s on c o u n tries. g ranted a prem ium o f p lete system o f h a s 'w o rk e d o u t . G overnm ent tio n s exchange exchange actu ally p o rts prem ium 1942 prem ium s w as th e S ta te s above from prem ium goods was the changed co llected reduced o ffic ia l 0 .5 0 - lira to from exchange 0 .4 3 lira on 168 each d o lla r). increased w ere from charged ex p o rters ly . In nercent and im p o r te r s w ords, rate 1 .8 2 lira s rate was 1 .9 3 to ex p o rters and 1 .3 0 to lira tiie £5 40 p e r c e n t . o th er 'e x c h a n g e of On N o v e m b e r d o llar, th e in T urkey o th er free-exchange and on lira s fo reig n w ith free fo reig n exchange to stim u la te in her S ept-m ber ratio of 7, 1 .5 0 e ffe c t, . was th e u n ited S tates* rem ain ed p urchasing cower 40 p e r c e n t . ste rlin g dor S ta te s rate the w ere e ffe c tiv e im p o rters o ffic ia l for resp ectiv e­ th e Nor th e ;’r e m i u m s also ap p lied area., th e percent above the and p erio d to the some 1940-1945 w a s 40 p e r c e n t , o ffic ia l exchange ste rlin g . was in d icated , not co u n tries an th ereb y 1946 when th e to nor to to m eet rem ain ed d o llar to in was 2 .8 2 a the prem ium s trad e in te n sify it was a. m e a s u r e , sp ecific c risis currency. o p eratio n d ev alu ated lira s of her to co n trary d ev alu atin g lira curb in ten d ed On t h e sy stem T urkey’ s use d esig n ed but w ith o u t lira the by c o n tro l. The p r e m iu m I'n ite d the B ritain ex p o rts economy, im p o rters prem ium s to G reat exchange exchange 1945 case to to w hile latt< r in creased As w as p r e v i o u s l y in in co u n tries, - 'r e m iu m on- e x p o r t s 5 .5 5 the of p r e m iu m was 48 p e r c e n t d o lla r. and th e th e 48 end w hile, f o r b u t, Turkey b etw een 40 th is im p o rters trade rate January the co m p en satio n im -o rts In ex p o rters to d o lla r, d o lla r The the export 55 p e r c e n t , under the 1944 to w ere for lira s 15, to u n til from a d o lla r. D uring th e th irtie s ta riff b arriers, in ta riff in creases by o t h e r w hich p a s s e u rev ised its A greem ent the many c a s e s p o sitio n Act i n about a red u ctio n the in in clu d in g ^urkey had w ith th e U n ited S tates was the d u cts. S ince the U nited ab le fo reig n trad e w ith recip ro cal The trad e agreem ent U nited 1 9 3 9 . 54 on A p r i l It is 1, 1939, s till in p a rtially Trade only m ajo r engaged in to in 1939 n atio n b rin g in g o nly 21 recip ro cal next to Germany t h e purchaser of T u rk ish S tates Turkey d o lla r was f r e e l y was v .r y d esire eager fin a lly the recip ro cal ana S tates S tates. u n co n d itio n al m o st-fav o red -n atio n A nkara ag ain st R ecip ro cal en tered a g re e m e n t b etw een p ro v id in g 1930, was th e in d ic a te d T his in to r a is e u n ited j-’. ' c w e v e r , b y larg est trad e, her. th e The a ctiv ely ta riffs, As v / a s p r e v i o u s l y its was began reta lia tio n co u n tries* Thus i t th irtie s agreem ents in in by p a s sin g 1934. cu rin g trad e n atio n s Sm oot-B aw ley t a r i f f w hich n atio n s m ost increase in a co u n tries. b e n e fits treatm en t becam e exchange­ resu lte d tw o ta riff to pro­ was e ffectiv e end sig n ed from Hay the at 5, effect. ^ R e c r i p r o c e l T rade A greem ent betw een th e U n ite d S t a t e s cf A m e r i c a a n d T u r k e y , E x e c u t i v e A g r e e m e n t s e r i e s , No. 1 6 3 , A, S. G o v ern m en t P r i n t i n g O f f i c e , W a s h in g to n , 1 9 4 0 . 170 Under adopt th e th is agreem ent the general p rin c ip le of fav o red -n atio n s treatm en t w ith ana of o th er form s trad e p arties gran ted cessio n s e co u n try , be g ran ted sp ecial S tates au to m atically trad e to th ird te rrito rie s d etach ed No r e s t r i c t i o n of on c o m m o d itie s , H ow ever, tativ e e stic also each trie s. If try If at on the o th er c o u n try days v ;ritte n p ro v id e reached free agreem ent exchange in the U nited S ta te s. th at the amount of for w ould in by to 1923. any '" a r ty im pose .q u a n t i ­ to re g u la te p ro v id ed to giv en th ey are th e the th at in a ll e sta b lish be may t e r m i n a t e from a v ailab le to o rig in a tin g w ith in con­ u n ited Turkey im p o sed d esig n ed m ust any to put are th ird o th er in to of agreem ent th ey coun­ im port the p erio d dom­ re ­ coun­ force. tw o m o n th s , on th irty n o tic e . Under the to is by th e E ow ever, 'by t h e rig h t proposes n o tice of co n cessio n s w ere g ra n te d . the tw o m o n th s b e f o r e no a g re e m e n t and " 'ric e s p ro d u cts co u n try w ritte n least and or n arty . accorded co u ld be w hich w ere lik e eith er strictio n s, o th er ta riff to d u tie s, co n cessio n s O ttom an E m p ire reserved su p p ly same th e uoon w hich p ro d u ctio n , red u ctio n s Cuba from co u n try custom ana any k in d restric tio n s ap p lied th e th e to Thus when e a c h ta riff to agreed u n c o n d itio n a l m o st- regard a.d - v a n t a g . e s m a y b e its te rrito rie s the co n tro l. c o n tra ctin g to tw o n a t i o n s free tu rk ey undertook paym ent F u rth erm o re exchange each calen d ar year for to co n tin u e com m ercial th e w hich to agreem ent im p o rts p ro v id ed T u r k e y w o u ld make cover im p o rts from the 171 U n ite d s t a t e s s h o u ld n o t be l e s s th en 10.91 p e r c e n t of T u r k e y ' s t o t a l c o m m e r c i a l i m o o r t s . 35 The a g r e e m e n t a l s o p r o v i d e d t h a t t h e g o o d s w h i c h e a c h c o u n t r y i m p o r t s f r o m t h e o t h e r s h o u l d n o t be t a x e d more t h a n d o m e s t i c g o o d s . A nother im p o rtan t p r o v is io n of th e agreem ent p ro v id e d t h a t n e i t h e r c o u n tr y , in award­ ing c o n t r a c t s to p u rc h a s e n o n - m i l i t a r y s u p p l i e s should d i s c r i m i n a t e a g a i n s t t h e o t h e r i n f a v o r o f any t h i r d country. T ariff co n cessio n s g ra n te d by Turkey: T a r i f f c o n c e s s i o n s g r a n t e d by Turkey u n d e r t h e a g r e e ­ ment c o v e r e d 44 i t e m s . T hese i t e m s c o n s i s t e d l a r g e l y of m anufactured p r o d u c ts . T a r i f f r e d u c t i o n s on t h e s e i t e m s r a n g e d f r o m 5 t o 88 p e r c e n t o f t h e g e n e r a l t a r i f f . For e x a m p l e , t h e d u t y w a s r e d u c e d by 88 p e r c e n t on r a d i o p a r t s * . 75 o e r c e n t on r a d i o s , d r i e d o r u n e s , c a n n e d p r u n e s a n d p r u n e j u i c e s , and canned a s p a r a g u s . One o f t h e m o s t i m p o r t a n t i t e m s s u p p l i e d by t h e U n i t e d S t a t e s t o t h e T u r k i s h m a r k e t has b een m otor v e h ic le s .. by 60 p e r c e n t . The d u t y on t h e s e i t e m s was r e d u c e d On t y p e w r i t e r s , c a l c u l a t i n g and r e g i s t e r i n g m a c h i n e s , and e l e c t r i c r e f r i g e r a t o r s t h e d u t i e s w e r e r e ­ d u c e d by IE p e r c e n t . D u ty r e d u c t i o n s w ere a l s o made on i r o n and s t e e l p r o d u c t s , and on sew in g m a c h i n e s , t h e l a t t e r 35 T h i s f i g u r e r e p r e s e n t s t h e s h a r e of t h e U n i t e d S t a t e s i n T urkey’ s t o t a l im p o rts i n 1935-37. 172 l a r g e l y s u p p l i e d by t h e U n i t e d S t a t e s , T hes e r e d u c t i o n s r a n g e d f r o m 5 t o 20 p e r c e n t . T a r if f concessions g ran te d by the U nited S t a t e s : T a r i f f c o n c e s s io n s g r a n t e d t o Turkey u n d e r th e a g r e e m e n t i n c l u d e d 21 i t e m s w h i c h a c c o u n t e d f o r 9 7 . 5 p e r c e n t of t h e v a l u e o f the A m e r i c a n i m o o r t s f r o m T u r ­ key i n 1957. The c o n c e s s i o n s were of t h r e e t y p e s : d u c tio n s in t a r i f f re­ r a t e s on 12 i t e m s , b i n d i n g o f t h e d u t y on o n e i t e m , a n d b i n d i n g on t h e f r e e l i s t o f 8 i t e m s . As was p r e v i o u s l y i n d i c a t e d t h e m o s t i m p o r t a n t p r o d u c t among t h e Am erican i m ' o r t s fro m T u r k e y i s c i g a r e t t e le a f tobacco. D u ty on t h i s p r o d u c t was r e d u c e d f r o m 55 c e n t s t o 30 c e n t s a p o u n d , o r by 1 4 . 3 p e r c e n t . The r e ­ m a i n i n g 11 i t e m s on w h ic h t a r i f f r e d u c t i o n s were made h a v e p l a y e d an i n s i g n i f i c a n t r o l e among t h e A m e r i c a n i m p o r t s from Turkey. On d r i e d f i g s v a l u e d a t 7 c e n t s o r more a pound t h e t a r i f f w a s r e d u c e d f r o m 5 c e n t s t o 3 c e n t s a p o un d o r b y 40 p e r c e n t . P r a c t i c a l l y a l l A m e r i c a n i m p o r t s of s u c h f i g s come f r o m T u r k e y and s e l l a t h ig h e r p r i c e s than t h e b e t t e r g r a d e of d o m e s t i c f i g s . N e v erth ele ss the t a r i f f on f i g s v a l u e d l e s s t h a n 7 c e n t s a p o u n d was k e p t a t t h e old r a t e , t h a t i s , 5 c e n t s p e r pound. The d u t y on s h e l l e d f i l b e r t s w a s r e d u c e d f r o m 10 c e n t s t o 8 c e n t s a p o u n d , a n d on r a i s i n s made f r o m s e e d - 173 l e s s g r a p e s f r o m two t o one and a h a l f c e n t s a p o u n d . Im p o rts of th e s e p r o d u c t s , though i n sm all q u a n t i t i e s , come a l m o s t e n t i r e l y f r o m T u r k e y . The r a t e on p o p p y s e e d was r e d u c e d f f o m 32 c e n t s t o 16 c e n t s p e r 100 p o u n d s u n d e r t h e N e t h e r l a n d s a g r e e m e n t of F eb ru ary 1, 1936. By v i r t u e o f t h e u n c o n d i t i o n a l m o s t - f a v - o r e d - n a t i o n s t r e a t m e n t , t h e r e d u c e d r a t e was i n c o r p o r a t e d i n the a g re e m e n t. T h e r e i s no poppy s e e d p r o d u c t i o n i n t h e U nited S t a t e s . The a g r e e m e n t a l s o p r o v i d e d f o r t h e b i n d i n g on t h e f r e e l i s t of e ig h t ite m s. T h es e w e r e , c r u d e v a l o n i a , c r u d e l i c o r i c e r o o t , c h ro m e o r e , emery o r e , c r u d e b o r a x , u n d r e s s ­ ed h a r e , m a r t i n s k i n s and s a u s a g e c a s i n g s . T h i s su m m arize d t h e 16 a r t i c l e s of t h e r e c i p r o c a l t r a d e a g r e e m e n t b e tw e e n T u r k e y a n d t h e U n i t e d S t a t e s and t h e e x c h a n g e n o t e s a t t a c h e d t o it.*"*® of t h i s agreem ent i t From t h e a n a l y s i s a p p e a rs t h a t the U n ite d S t a t e s g r a n t ­ ed f e w e r t a r i f f r e d u c t i o n s t o T u r k i s h p r o d u c t s t h a n w e r e g r a n t e d by T u r k e y , b u t t h e v a l u e of t o t a l i m p o r t s a f f e c t e d by s u c h c o n c e s s i o n s was h i g h e r i n t h e c a s e o f A m e r i c a n im­ p o r t s from Turkey. F o r e x a m p l e , c o m m o d i t i e s on w h i c h t a r ­ i f f r e d u c t i o n s w ere made b y T u r k e y a c c o u n t e d f o r o n l y 41 p e rc e n t of the t o t a l T u rk ish im p o rts from th e U n ite d S t a t e s in 1937. On t h e o t h e r h a n d , c o m m o d i t i e s on w h i c h t a r i f f r e ­ d u c t i o n s w ere made b y t h e U n i t e d S t a t e s a c c o u n t e d f o r 9 7 . 5 U. S . D e p a r t m e n t o f S t a t e s , T r a d e a g r e e m e n t b e t w e e n t h e U n i t e d S t a t e s of A m e r i c a and t h e R e p u b l i c o f T u r k e y , Wash­ i n g t o n , 19 3 9 , P r e s s r e l e a s e n o s . 126 and 1 2 7 , m im e o g r a p h e d . 174 p e r c e n t of t h e t o t a l A m e ri c a n i m p o r t s f r o m T u r k e y d u r i n g t h e same y e a r . H ow eve r, i t s h o u l d be c o n s i d e r e d t h a t l e a f tobacco alone accounted f o r over t w o - th ir d s o f th e t o t a l im p o rts from Turkey. As f o r t h e e f f e c t s o f t h e a g r e e m e n t , t h e b e g i n n i n g o f World Var I I a b o u t f o u r m o n th s a f t e r t h e e f f e c t i v e d a t e o f th e ag reem en t meant t h a t the a n t i c i p a t e d e x p a n s io n i n t r a d e betw een the two c o u n t r i e s c o u l d n o t b e r e a l i z e d . As a r e s u l t o f t h e w o r l d c o n f l i c t , to each o th e r were d i s t u r b e d . m a i n l y of two f a c t o r s . e x p o r t s of b o t h c o u n t r i e s The r e a s o n s f o r t h i s w e r e In the f i r s t p l a c e sh ip p in g f a c i l i ­ t i e s were g r e a t l y d i s r u p t e d , and s e c o n d l y , b o t h c o u n t r i e s adopted s t r i c t m easures to c o n t r o l o r r e s t r i c t e x p o r t s . How ever, c e r t a i n p r o v i s i o n s o f t h e a g r e e m e n t w e r e i m p o r t ­ a n t d u rin g th e war p e r i o d . These w ere t h e e x em p tio n o f i m p o r t s f ro m t h e U n i t e d S t a t e s f r o m c o m p e n s a t i o n r e q u i r e ­ m ents, and the a s s u r a n c e f r e e exchange f o r paym ents o f im p o rts from the U n ited S t a t e s . I n o r d e r t o make su ch exchange a v a i l a b l e , the T u rk ish governm ent e s t a b l i s h e d a s p e c i a l a c c o u n t i n t h e C e n t r a l Bank o f T u r k e y . A ll fo reig n exchange secu red from th e e x p o r t s t o t h e U n ite d S t a t e s was d e p o s i t e d i n t h i s a c c o u n t , a n d t h e r e b y i m p o r t s f r o m t h e U n i t e d S t a t e s w e r e p a i d r e g u l a r l y a n d w i t h o u t undue delay. 175 CHAPTER XVI FUTURE PROSPECTS OF TURKEY’ S FOREIGN TRADE The p r e v i o u s c h a p t e r s a r e p r i m a r i l y d e v o t e d t o t h e d e v e l o p m e n t s of T u r k e y ’ s f o r e i g n t r a d e i n t h e p a s t , the c o u n tr y i s ^ince d e v e lo p in g r a p i d l y , i t i s a p p r o p r i a t e to a n aly ze " b r ie f ly i t s p ro b a b le f o r e i g n t r a d e developm ents and p o l i c i e s i n t h e y e a r s t o come. \ T u rk ey 's tr a d e p o lic y i n th e p a s t h a s been profound­ l y a f f e c t e d by t h e c h a n g e s i n . t h e t r a d e p o l i c i e s o f o t h e r c o u n t r i e s a s w e l l a s by t h e g e n e r a l l e v e l o f w o r l d a n d e s p e c i a l l y E uropean economic c o n d i t i o n s , i e r s to tr a d e continue th e s t r u c t u r e i f prew ar b a r r ­ of T u r k e y ’ s. f o r e i g n t r a d e i s l i k e l y to s h i f t t o w a r d s a r e d u c t i o n i n i m p o r t s , o f g o o d s w h ic h c a n be p r o d u c e d i n T u r k e y ; a r e d u c t i o n i n ex­ p o r t s probably w i l l occur to a l e s s e r e x te n t. For pur­ p o s e s of t h i s a n a l y s i s o f f u t u r e p r o s p e c t s i t h a s seemed more u s e f u l t o a s s u m e a r e a s o n a b l y h i g h l e v e l o f w o r l d p r o s p e r i t y and a w i l l i n g n e s s among n a t i o n s t o d i s c u s s and r e d u c e trade b a rrie rs . Under t h e s e assu m p tio n s i t seems q u i t e l i k e l y t h a t i 'u r k e y w i l l c o o p e r a t e i n r e d u c i n g b a r r i e r s , i n e x p a n d i n g e x p o r t s and i n c r e a s i n g i m p o r t s , p a r t i c u l a r l y o f c a p ita l goods. V i r t u a l l y none of T u r k e y ’ s p r e s e n t i n d u s ­ t r i e s supply th e dom estic r e q u ir e m e n ts . T h e r e f o r e , Turkey w i l l c o n t i n u e e x p o r t i n g a g r i c u l t u r a l p r o d u c t s w h i l e im­ p o rtin g i n d u s t r i a l goods. N e v e rth e le ss, i t appears l i k e l y t h a t T u r k e y 's f o r e i g n t r a d e w i l l expand g r e a t l y . T his s t a t e - 176 m e n t i s b a s e d on t h e p o s t - w a r e co n o m ic d e v e l o p m e n t p l a n s o f '-Hirkey. The new e con o m ic d e v e l o p m e n t p r o g r a m o f A i r k e y i n ­ c l u d e s t h e e x p a n s i o n and im p r o v e m e n t o f t h e t r a n s p o r t a t i o n system ( r a i l r o a d s , highw ays, o o r t s , and m erc h an t m a r i n e ) , the developm ent of m in e ral re s o u r c e s ( o i l , copper, co al, sulphur, iron e t c .) , chromimum, expansion of t e x t i l e in d u stries, su g a r r e f i n e r i e s , and food p r o c e s s i n g p l a n t s , 37 and the d e v e l o p m e n t of b a s i c c h e m i c a l s . A nother im p o rt­ a n t p r o g r a m of T u r k e y i s the development o f a g r i c u l t u r e , and t h e c o n s t r u c t i o n o f a g r i c u l t u r a l m a c h i n e s and f e r t i l i z e r p lan ts, a number o f i r r i g a t i o n sch em es a r e i n c o n t e m p l a ­ t i o n a s p a r t of a p r o g r a m i n i t i a t e d i n 1 9 3 9 . S e v e r a l dams w i l l be c o n s t r u c t e d i n v a r i o u s p a r t s o f t h e c o u n t r y . 'Ihese dams w i l l a l s o p r o d u c e e l e c t r i c p o w e r . ' F u r t h e r m o r e , t h e Government p l a n s t o e q u i p e v e r y f a r m e r w i t h m o d ern a g r i c u l t u r ­ a l im plem ents such a s p low s, d r i l l s , c o m b i n e s , r e a p e r s , and harrow s. I n o r d e r t o c a r r y o u t t h e s e u r o g r a m s ( a l r e a d y u n d e rw a y ) T u r k e y w o uld r e q u i r e t h e of c a p i t a l goods as im p o rta tio n of l a r g e q u an tities w e ll a s s k i l l e d e n g i n e e r s from a b ro a d . The c o m p l e t i o n o f e a c h p r o g r a m would make n e c e s s a r y t h e i m p o r t a t i o n of new p r o d u c t s t o m e e t t h e new d e m a n d s . For <70 As r e p o r te d I s t a n b u l , March 2 1 , new spaper), A nkara, in C u m h u riy et (d aily new spaper), 1947 and i n U l u s ( a s e m i o f f i c i a l d a i l y J u l y 5, 1947. 177 exam ple, w ould co n stru ctio n - of increase m o to rcy cles, d u ctio n tric al etc. of power of w ould en ab le hig h er above faim ers. for a lly in crease and F u rth erm o re, larg e num bers the i r th e w ould of th eir incom e and incom es in e le c ­ of ag ricu l­ and purchas­ tra n sp o rta tio n p r o d u c t s m ore, t i m e l y a t p ro v id e in for irrig a tio n d evelopm ent persons P ro­ w ashing m ac h in es, of faster e tc. m arket pro d u ctio n in crease to m arket m ogrfus the rad io s, pro b ab ly m o to r v e h i c l e s , o ils, d ev elo p m en t B etter farm ers m en tio n ed expand in crease aiad t h e r e b y ''r ic e s . jobs th e undoubtedly p ro d u cts, highw ays heavy m in eral pow er w ould hand, and lo co m o tiv es, refrig e rato rs, o th er w ould for tubes, e le c tric ap p lian ces, sy stem s in g demand tire s, On t h e tu ral the railro ad s m ore the tu rn of a ll end the b e tte r co u n try in crease and the ev en tu ­ d o m estic demand. The Turkey ment her to m ost im p o rt program s. su p p ly of p rob lem i n v o l v e s t h e a b i l i t y im p o rtan t e-uipm ent T urkey d o llars, req u ired has alread y ste rlin g , she a c c u m u late d d u r i n g the be im port ab le goods, tain to co n tin u e Turkey fo reig n has to e ith e r lo an s, to n , to b acco , filb e rts m ohair w o o l, to spent and rease d ev elo p ­ a larg e g o ld In q u a n titie s her part of r e s e r v e s w hich war y e a rs . larg e in th ese order of ex p o rts, to ca p ital or ob­ or b o th . As p r e v i o u s l y are recent for of p o in ted o u t, raisin s, T u r k e y ’ s m ain fig s, p ista c h io wool, o p i u m , v a l o n i a , ex p o rts n u ts, and m i n e r a l co t­ ores, 178 n o tab ly chroraim uin. th at to b acco w i l l port item , d eclin e for o th er stric t tbs m ore ex p o rts d o m estic export m easures and g ra d in g , to and T urkey’ s f a ilu r e upon of to in in bn th e co tto n , tex tile free Germ any safe to say ex­ m o h e i r w o o l may in d u strie s ere d ev elo p ed , w ould a d o p t p a c k in g , pack ag in g p ric e s exchange resp e c ts as is m ost im p o r ta n t end q u a lity , reduce th ese i t Turkey p ro b a b le im prove also p ro d u ets, to p ro d u cts, ad v p n tag eo u slv dependence th ese co n tin u e w hile as Of and m ark ets. th at a m arket th ereb y gave for It com pete was rise to her e g ric u ltu re l pro- p ro d u cts th u s du c t s . Tn r e d u c i n g in creasin g p ric e s ex p o rts the p ro d u ctiv ity . fec tiv e fru its in also and im proved, ap p les, b erries, now ‘ appear lik e ly to fru it p ro d u ctio n . Turkey a re as of peaches, p lan ts, p articu larly and in crease. serve to end g r a p e s . fam ous Throughout for th eir m ark etin g f a c i l i t i e s ex p o rts w ould fru its fanning has These m ethods c a n telo n es also of lira by in c r e a s in g E urope, w ould m ethods T u rk ish '-ric e s Thus 'p e a rs , tend the reduce grow n i n fla v o r. B etter of and to fresh and ex p o rtab le d e v alu atio n a lre a d y b een m en tio n ed . d ev elo p in g w i l l of fresh fru its , c h erries, w aterm elons D evelopm ent can n in g in crease V egetable n o tab ly w hich of u ro d u ctio n w orld, d ev elo p ed tab le bananas, are taste needed grapes, straw ­ in food p ro c e ssin g and b e v e ra g e pro d u ctio n the ef­ ex cellen t are oranges, be m ost estab lish m en ts, and ex p o rts also has of a prom inent 179 f u t u r e in Turkey’ s e x p o rt t r a d e . I n f a c t , T u rk ey i s one of t h e f e w c o u n t r i e s a l o h g w i t h I t a l y a n d S p a i n i n E u r o p e , t h a t i s a b l e t o m a rk e t p r e - s e a s o n f r e s h v e g e t a b l e s i n the W estern and C e n t r a l E u ro p ean c o u n t r i e s . For exam ple, d e v e l o p m e n t s i n r e f r i g e r a t i o n w o u l d make i t p o s s i b l e t o ex p and t h e p r o d u c t i o n a n d t h e e x p o r t a t i o n of t o m a t o e s , eg g plants, peppers, cucumbers, g re e n b e a n s , p e a s , l e t t u c e , end many o t h e r s . Th'e ab o v e r e m a r k s i n d i c a t e o n l y a f e w o f t h e p o s ­ s i b i l i t i e s f o r expanding T u rk ish e x p o r ts to o b t a i n -fo reig n exchange. I n a d d i t i o n T u r k e y may i n c r e a s e h e r a d v a n t a g e i n foreign trad e t h r o u g h t h e im pro vem en t of h e r p o u l t r y , s i l k production.. I n the p a s t t h e s e i n d u s t r i e s h a v e p l a y e d an i m p o r t a n t p a r t i n the In a l l and country’ s export tra d e . these f i e l d s , f r u i t , vegetable, p o u ltry , and s i l k p r o d u c t i o n , o n l y a few y e a r s a r e r e q u i r e d t o o b ­ t a i n good r e s u l t s . In f a c t , a l l t h e s e b r a n c h e s of a g r i ­ c u l t u r e have a l r e a d y d e v e lo p e d s u f f i c i e n t l y , r e q u i r i n g o n l y i m p r o v e m e n t i n m a r k e t i n g f a c i l i t i e s and w e l l e s t a b ­ l i s h e d o r g a n i z a t i o n s f o r e n t e r i n g them i n t o i n t e r n a t i o n a l tra d e ch an n els, provided tra d e b a r r i e r s abroad a r e n o t too h ig h . T u r k e y may s e c u r e l o n g t e r m f o r e i g n l o a n s t o p a y f o r th e i m p o r t a t i o n of c a p i t a l goods n e c e s s a r y f o r t h e s e development program s. The U n i t e d S t a t e s h a s a l r e a d y a d o p t ­ ed t h e Truman D o c t r i n e , a n d t h e M a r s h a l l P l a n . A ppropria- 180 tio n s m d e under the form er e r e d ir e c te d p r i m e r ily a t s t r e n g t h e n i n g T u r k e y ’ s n a t i o n a l d e f e n s e b u t a l s o may h av e some i n d i r e c t e f f e c t s i n i m p r o v i n g t h e n a t i o n a l economy t h r o u g h e x p e n d i t u r e s on p o r t s , a n d h i g h w a y s . I f the a s s u m p t i o n s r e g a r d i n g t r a d e p o l i c i e s and l e v e l o f e m p lo y m en t a r e i n v a l i d , then Turkey w i l l b e un able to f o l l o w t h e e x t e n s i v e program o f m o d e r n iz a tio n and i n d u s t ­ r i a l i z a t i o n which i s o l e n n e d . Only c e r t a i n p h a s e s w i l l be a d o p te d i n a c c o r d a n c e w i t h t h e f o r e i g n exchange a v a i l a b l e . I n a n y c a s e some s h i f t s i n t h e d i r e c t i o n o f f o r e i g n trade is in e v ita b le . T urkish t r a d e a lr e a d y has s h i f t e d from C e n t r a l E uropean c o u n t r i e s t o W estern E u ropean c o u n t ­ r i e s and e s p e c i a l l y t o th e u n i t e d S t a t e s . These c o u n t r i e s , p a r t i c u l a r l y t h e U n i t e d S t a t e s a nd G r e a t B r i t a i n , a r e t h e s o u r c e s f o r much of t h e c a p i t a l g o o d s n e e d e d i n T u r k e y ' s p r o g r a m of i n d u s t r i a l i z a t i o n . Now what k i n d o f f o r e i g n t r a d e p o l i c y s h o u l d T u r k e y f o l l o w t o a c h i e v e h e r e c o n o m ic d e v e l o p m e n t p r o g r a m s ? While i t i s n o t t h e p u r p o s e o f t h i s work t o e l a b o r a t e a p o s i t i v e p o l i c y tow ard i n t e r n a t i o n a l t r a d e o f Turkey, a few rem a rk s seem a p p r o p r i a t e . In f a c t i t is still d iffic u lt to pre­ d i c t t h e e x a c t n a t u r e o f t h e e co no m ic and p o l i t i c a l t u r e of t h e f u t u r e ; i t stru c­ i s a ssu m e d h o w e v e r , t h a t t h e n a t i o n s a l l o v e r t h e w o rld w i l l f o l l o w a p o l i c y which w i l l prom ote 181 n a t i o n a l s e c u r i t y and i n t e r n a t i o n a l p e a c e . T h e r e a r e a num ber o f i n t e r n a t i o n a l o r g a n i z a t i o n s d e d i c a t e d t o b r i n g i n g a b o u t p e a c e and s e c u r i t y t o t h e w o r l d . These a r e : The U n i t e d N a t i o n s , The I n t e r n a t i o n a l Bank f o r R e c o n s t r u c t i o n and D evelopm ent, I n t e r n a t i o n a l M onetary F u n d , The I n t e r n a t i o n a l T r a d e O r g a n i z a t i o n , The Food and A g r i c u l t u r a l O r g a n i z a t i o n , and t h e Econom ic, S o c i a l and C u ltu ra l O rganization. th ese o rg a n iz a tio n s . Turkey p a r t i c i p a t e d i n a l l of Thu s T u r k e y ’ s i n t e r n a t i o n a l economic p o l i c i e s a r e c l o s e l y t i e d up t ' t h e p o l i c i e s s e t by t h e s e org an izatio n s. S ta te d b r ie fly : t h e i r aims a r e to e s t a b ­ l i s h and m a i n t a i n i n t e r n a t i o n a l c o o p e r a t i o n i n e v e r y f i e l d of p o l i t i c s . To t h i s e nd t h e y s e t up p r o g r a m s t o d e v e l o p the econom ies o f backward n a t i o n s , t o prom ote exchange s t a b i l i t y and o r d e r l y exchange a rra n g e m e n ts , red u c e g o v e rn ­ ment b a r r i e r s t o i n t e r n a t i o n a l t r a d e , b e t t e r o r g a n i z a t i o n i n w o r l d a g r i c u l t u r a l p r o d u c t i o n , a nd f i n a l l y t o i m o r o v e t h e human r e s o u r c e s t h r o u g h t h e i m p r o v e d h e a l t h , n u t r i t i o n and e d u c a t i o n . The g r e a t e r t h e c o o p e r a t i o n among n a t i o n s a c h i e v e d by t h e s e embryo o r g a n i z a t i o n s t h e g r e a t e r w i l l be t h e e x ­ p a n s i o n o f f o r e i g n tra c 'e p o s s i b l e by T u rk is h economic de­ velopm ent. The f a i l u r e o f t h e s e i n t e r n a t i o n a l o r g a n i z a ­ t i o n s w i l l be a blow t o an y p l a n s f o r t h e e x p a n s i o n o f f o r e i g n t r a d e , and w i l l u n d o u b ted ly r e v i v e th e p o l i c i e s which e x i s t e d d u r in g th e t h i r t i e s . 18£ CHAPTER X V II SUMMARY AND CONCLUSIONS T u r k e y i s p r e d o m i n a n t l y an a g r i c u l t u r a l c o u n t r y w i t h 75 p e r c e n t o f i t s p o p u l a t i o n g a i n f u l l y e n g a g e d i n a g ric u ltu r a l production. About 58 p e r c e n t o f the n a t i o n a l income i s d e r i v e d f r o m a g r i c u l t u r e w h i l e o v e r 85 p e r c e n t of the e x p o r t t r a d e i s composed o f a g r i c u l t u r a l p r o d u c t s . ' T u rk ey h a s l a r g e a m o u n t s o f l a n d , b u t o n l y 1 8 . 4 p e r c e n t of i t i s under c u ltiv a tio n . Throughout t h e c o u n tr y the s i z e of farm s i s v e r y sm all a v e ra g in g about f o u r d e k a r s ( a b o u t one a c r e ) i n t h e S l a c k S e a r e g i o n , 30 d e k a r s i n t h e Aegean r e g i o n an d a b o u t 100 d e k a r s i n t h e C e n t r a l P l a t e a u and E a s t e r n H i g h l a n d s . A lthough s e v e r a l lan d r e ­ f o r m s made i t p o s s i b l e f o r a g r e a t p o r t i o n o f t h e f a r m e r s t o own t h e i r l a n d , t h e y d i d n o t g r e a t l y im p r o v e t h e i r l e v e l of l i v i n g . The r e c e n t l a w p r o v i d i n g s u f f i c i e n t l a n d f o r every farm er w i l l r e q u i r e y e ars f o r b rin g in g about a b e t ­ term ent in th e f a r m e r s ’ l i f e . Because o f a l a c k o f c a p i t a l i n th e a g r i c u l t u r a l d i s t r i c t s , v e r y p r i m i t i v e im plem ents are used. Oxen a r e g e n e r a l l y u s e d a s d r a f t a n i m a l s w h i l e t h e u s e of m a c h i n e r y i n f a r m i n g i s n e g l i g i b l e . t a t i o n and f e r t i l i z e r a r e r e g u l a r l y d istric ts. Crop r o ­ a d o p t e d i n a few f a r m D e s p i t e g r e a t e f f o r t s ma.de by t h e g o v e r n m e n t i n r e c e n t y e a r s , f a r m p r a c t i c e s a r e s t i l l f a r fro m modern. N e v e r t h e l e s s T u r k e y ’ s g r e a t v a r i e t y of c l i m a t e s and f e r t i l e s o i l s e n a b l e h e r t o p r o d u c e a l m o s t a l l k i n d s and v a r i e t i e s 183 o f p l a n t a nd l i v e s t o c k p r o d u c t s . B esides th e s e c h a r a c t e r i s t i c s the c o u n try has i n numferable m i n e r a l r e s o u r c e s . B ut b e c a u s e o f t r a n s p o r t a ­ t i o n d i f f i c u l t i e s , m o s t of t h e s e m i n e s r e m a i n u n d e v e l o p e d . T u r k e y ’ s i n d u s t r i a l d e v e l o p m e n t h a s b e e n c a r r i e d on according to d e f i n i t e 5-year p la n s under the su p e rv isio n of t h e governm ent. More t h a n 50 p e r c e n t o f t h e i n d u s t r i e s a r e owned and o p e r a t e d by t h e S t a t e . The i n d u s t r y w h i c h had d e v elo p ed t h e most i s t h a t of t e x t i l e s . ries are food p ro c e ssin g p l a n t s , Other i n d u s t ­ c e l lu l o s e , ceram ics, t i m b e r , l e a t h e r , g l a s s , m i n i n g , i r o n and s t e e l . None of t h e s e i n d u s t r i e s s a t i s f i e s the n e e d s o f the n a t i o n . D e s p i t e g r e a t e f f o r t s made by t h e g o v e r n m e n t , T u r k e y is s t i l l poor in tr a n s p o r ta tio n . -Lack o f c a p i t a l and t h e t o p o g r a p h y o f t h e c o u n t r y a r e the m a i n f a c t o r s i n t h e l a c k o f g oo d t r a n s p o r t a t i o n f a c i l i t i e s . Among t h e c r o p s grown i n T u r k e y , c e r e a l p r o d u c t i o n i s by f a r t h e m o s t i m p o r t a n t a g r i c u l t u r a l e n t e r p r i s e f r o m b o t h a n e c o n o m i c and s o c i a l s t a n d p o i n t . A b o u t 88 p e r c e n t o f t h e l a n d u n d e r f i e l d c r o p s i s d e v o t e d t o c e r e a l s of w h i c h w h e a t c o n s i s t s o f more t h a n 50 p e r c e n t . I n 1942, c e r e a l s p r o v i d e d 33 p e r c e n t o f t h e n a t i o n a l income and 59 p e r c e n t of t h e a g r i c u l t u r a l income o f T u r k e y . L i v e s t o c k i s a l s o v e r y i m p o r t a n t w i t h p a s t u r e and meadows r e p r e s e n t i n g a b o u t 50 p e r c e n t of t h e t o t a l a r e a . 184 L iv e s to c k and l i v e s t o c k p r o d u c ts c o n s t i t u t e 13 .5 p e r c e n t of t h e n a t i o n a l i n c o m e . S in c e Turkey p o s s e s s e s a g r e a t v a r i e t y of c l i m a t e s and s o i l s , many k i n d s an d v a r i e t i e s of f r u i t s and n u t s a r e grown i n t h e c o u n t r y . About 1 . 8 p e r c e n t o f t h e t o t a l area i s under f r u i t, t r e e s . I n 1943 f r u i t and n u t s com­ '" V p r i s e d f i v e p e r c e n t of the n a t i o n a l income. T u rk ey 's ad v an tag e in i n t e r n a t i o n a l t r a d e i s based on t h e p e c u l i a r g e o g r a p h i c f a c t o r s vAich make p o s s i b l e the p r o d u c t i o n o f s p e c i a l i z e d a g r i c u l t u r a l p r o d u c t s . 'The e x p o r t s of a g r i c u l t u r a l p r o d u c t s f r o m T urkey c r e a t e t h e b u l k o f t h e p u r c h a s i n g po w e r by w h i c h sh e c a n s e c u r e e x ­ change t o buy i n d u s t r i a l g o o d s, c h i e f l y c a p i t a l g o o d s, to d e v e l o p h e r i n d u s t r y . I n 1935-39 a g r i c u l t u r a l p r o d u c t s a v e ra g e d 8 4 .6 p e r c e n t o f th e t o t a l T u rk is h e x p o r t s by v a l u e . Among t h e p r o d u c t s , by f a r th e m o s t i m p o r t a n t i n r e s p e c t t o e x p o r t t r a d e i s t o b a c c o , w h i c h i s so d i s t i n c ­ t i v e a s t o b e a p r o d u c t by i t s e l f . A l l a t t e m p t s made by o t h e r c o u n t r i e s to t r a n s p l a n t i t have f a i l e d . T obacco e x ­ p o r t s c o n s i s t s of a b o u t 28 p e r c e n t of t h e t o t a l T u r k i s h e x p o r t by v a l u e . where i t I t i s shipped to n e a r ly a l l w orld m arkets i s used m ainly f o r b le n d in g p u rp o s e s . O ther p r o ­ d u c ts e x p o rte d from Turkey a r e i n o r d e r of t h e i r im p o rta n c e , f i l b e r t s , r a i s i n s , f i g s , c o t t o n , m o h a i r w o o l , o pium , cereals, valonia. l i v e a n i m a l s , o l i v e s and o l i v e o i l , w o o l , a n d . 185 S in ce Turkey i s p re d o m in a n tly a g r i c u l t u r a l , i t s im p o r ts have b een l i m i t e d m a in ly t o nam ely, i n d u s t r i a l goods, i r o n an d s t e e l p r o d u c t s , m o t o r v e h i c l e s , m a c h i n e r y , c o t t o n and w o o l e n g o o d s , and c h e m i c a l s . T hes e i t e m s n o r ­ m a l l y a c c o u n t f o r o v e r 90 p e r c e n t o f t h e t o t a l T u r k i s h im ports. I m p o r t s of a g r i c u l t u r a l p r o d u c t s p l a y l i t t l e im portance in T urkish t r a d e . The p r i n c i p a l a g r i c u l t u r a l com m odities im p o rte d a r e t e a , c o ff e e , c ru d e , ru b b e r, cocoa, s u g a r , and X e n o n s , w h i c h r e p r e s e n t a b o u t n i n e p e r c e n t o f the t o t a l im p o rts. Owing t o i t s p r o x i m i t y to t h e so c a l l e d ’’W o r l d ’ s Works hop” - W estern. "Europe - a n d t o i t s b e i n g s i t u a t e d a t t h e c r o s s r o a d s of t h e w o r l d , i t h a s b e e n made p o s s i b l e f o r T urkey t o t r a d e r e a d i l y w ith t h e r e s t of the w o rld . Ho w ev er, i n h e r f o r e i g n t r a d e T u r k e y h a s b e e n v e r y much d e p e n d e n t on E u r o p e , n o t a b l y t h e W e s t e r n and C e n t r a l European c o u n t r i e s , o f 'Ajr k e y ’ s t o t a l trie s. -^ri o r t o World War I I o v e r 80 p e r c e n t t r a d e was c a r r i e d o n w i t h E u r o p e a n c o u n ­ The p r i n c i p a l b u y e r s o f T u r k i s h p r o d u c t s , w e r e Germany, U n i t e d S t a t e s , I t a l y , G r e a t B r i t a i n , E r a n c e , S o v i e t h u s s i a , and C z e c h o s l o v a k i a , i n t h e o r d e r named. T r a d e w i t h t h e s e c o u n t r i e s r e p r e s e n t e d o v e r 70 p e r c e n t of the t o t a l . Among t h e s e c o u n t r i e s , h o w e v e r , Germany a t t h a t t i m e p u r c h a s e d more T u r k i s h p r o d u c t s t h a n a l l t h e o t h e r c o u n t r i e s combined, b u t t h e developm ent o f t h i s t r a d e brought about c o n s id e r a b le d i s t r u s t in Turkey. 186 T u r k e y ’ s e co n om ic p o l i c y w a s b o r n o f a s t r o n g r e a c tio n a g a in s t th e con d ition s , n d e r t h e Ottoman E m p i r e . By h e r new economic p o l i c y , T u r k e y h a s a t t e m p t e d t o d e v e l o p a l l b r a n c h e s o f h e r economy a s an i n t e g r a t e d w h o l e . To t h i s end,- T u r k e y f o l l o w e d a p o l i c y w h ic h w a s s t r i c t p r o tec tio n istic. I n c a r r y i n g o u t h e r e c o n o m ic d e v e l o p m e n t p r o g r a m s , T u r k e y w o r k e d m a i n l y on a p a y - a s - y o u - g o b a s i s and r e f r a i n e d f r o m f o r e i g n b o r r o w i n g . Due t o th e l a c k of p r i v a t e c a p i t a l a n d b e c a u s e of th e e v er i n c r e a s in g danger of w orld c o n f l i c t ab ro ad , th e T u r k i s h Government t o o k an a c t i v e p a r t i n t h e d e v e l o p m e n t of t h e c o u n t r y ’ s economy. To t h i s e n d , t h e p o l i c y o f econom i c n a t i o n a l i s m , w d th maximum s e l f - s u f f i c i e n c y a s t h e u l ­ t i m a t e a im , seemed t o be i m p e r a t i v e a s t h e o n l y \ a y f o r n atio n al defense. A lthough Turkey h a s in te n d e d t o develop a l l b r a n c h e s of h e r economy a s an i n t e g r a t e d w h o l e ; up to the ^ r e s e n t tim e emphasis h a s b een g iv en to i n d u s t r i a l developm ents. I n o t h e r w o r d s , T u r k i s h n a t i o n a l e c o n o m ic p o l i c i e s were d e s i g n e d t o f o s t e r i n d u s t r i a l i z a t i o n , al­ t h o u g h a g r i c u l t u r e i s t h e f o u n d a t i o n o f t h e n a t i o n a l economy As f o r f o r e i g n t r a d e p o l i c i e s , Turkey h a s had a tr a .d e s y s t e m w h i c h was s t r i c t l j r c o n t r o l l e d . c o n t r o l m e a s u r e t o o k many f o r m s . The t r a d e I n g e n e r a l f r o m 1985 t o 1939 i n c l u s i v e , a l l m e a s u r e s we. e d e s i g n e d t o s t i m u l a t e e x p o rts w hile r e s t r i c t i n g im p o rts. 7 / it h th e b e g i n n i n g o f T o r l d T a r I I , h o w d v e r , t h e p o l i c i e s t o o k an o p p o s i t e d i r - 187 ectlon, that is to fac ilita te im ports while restrictin g exports. In a • ajnr Turkey’ s trade im plem ents, ject to •- r o t e c t to increase mein barrier, dom estic in Im port to quotas, control the th irties were degree of protect about the all certain would not ta riffs produced the of have adopted in the exports value ana, of even of the by Turkey The im ports; the main during prim ary thereby debt. an u n f a v o r a b le ob­ a volume b .lance of of to to bring perm itting Thus, c o n sid e ra tio n was no t rather nation. im port m onopolies more p a r t i c u l a r l y , over though currency, cases to on t h o s e Turkish country’s foreign lead charged in­ a certain the but to the m aintain of products, imposed policies barriers. to sub­ designed been standard m easures trade were dom estically, living are alw ays were been agricultural o th e rs were licensing, industries, excess duties m easures were stab ility repaym ent alm ost for an duties im port other these local high raise exchange of these of have im ported Government f i s c a l not and jectives of duties exception mere' e n d i s e Im port Thus, help the tariff .industries w hile which w e re t h e y would all home revenue. revenue. ‘- r o d u c t s kith ta r if Is. consideration crease policies practically high to trade the in demand im ports trade for which Tur­ key. From 1934 w to 1S4-0 t h e above m easures were supplem ent 188 ed by b i l a t e r a l t r a d e a g r e e m e n t s and c o m p e n s a t i o n of t r a d e . A l l t h e s e m e a s u r e s made i t ystems alm ost im p o s sib le f o r T u rk ey to t r a d e a c c o r d i n g t o t h e p r i n c i p l e of c o m p a r a t i v e advantage, i t is t r u e t h a t by a d o p t i n g such m e a s u r e s T u r k e y a t t a i n e d a f a v o r a b l e b a l a n c e o f t r a d e and t h e r e b y pai,d o f f h e r f o r e i g n d e b t , b u t i t was a t t h e e x p e n s e of h s r i n t e r n a t i o n a l freedom . Thus T u rk ey d i d n o t r e a l i z e t h a t b y a d o p t i n g t h e c l e a r i n g s y s t e m of t r a d e i t would l e a d t o German p e n e t r a t i o n i n t o t h e e c o n o m ic and p o l i t i c a l life of t h e c o u n t r y . V.'ith the p a s s a g e o f t i m e T u r k e y was t i e d c l o s e r and c l o s e r i n t o t h e economic o r b i t of Germany. •u a t e r a c t i o n s w e r e t a k e n i n 1959 t o r e d u c e t h i s d e p e n d e n c e b u t a t c o n s i d e r a b l e s h o r t run s a c r i f i c e s t o th e n a t i o n a l economy. P r i o r t o ' / o r I d V?ar I I , Turkey’ s sole a c tio n i n making a r e d u c t i o n i n t r a d e b a r r i e r s was h e r e n t e r i n g i n t o a r e c i p r o c a l t r a d e agreem ent w ith the U nited S t a t e s in A p r i l , 1959. how ever, b e c a u se o f the w ar t h e a n t i c i p a t e d e x p a n s i o n i n t r a d e bwtw een t h e two c o u t r i e s c o u l d n o t be r e a l i z e d . I t m u st b e r e c o g n i z e d t h a t T u r k e y ’ s p o l i c y o f e x p a n d ­ i n g i n d u s t r i a l i z a t i o n b r o u g h t a b o u t many l e s s e r d i f f i c u l t i e s d u rin g th e r e c e n t war t h a n i f t u r a l n a t i o n a s i n 19 25. sh e h a d b e e n s o l e l y a n a g r i c u l ­ A t a t i m e when o t h e r , c o u n t r i e s h a d few g o o d s t o e x p o r t , T u r k e y w a s a b l e t o p r o d u c e a t l e a s t p a r t of h e r n e c e s s i t i e s . Thus o v e r t h e p e r i o d we 189 a r e c o n s i d e r i n g , T u r k e y h a s had p o s i t i v e g a i n s and p o s i t i v e l o s s e s fr o m t e r c o n t r o l s o v e r t r a d e . Turkey i s i n t e r e s t e d i n a r a p i d r a t e o f i n d u s t r i a l developm ent. The r a t e of d e v e l o p m e n t m i l d e p e n d unon t h e volume an d v a l u e of e x p o r t s , p r i m a r i l y a g r i c u l t u r a l . I f o t h e r n a t i o n s p u r c h a s e 'Turkey ’ s g o o d s a l a r g e volume o f t r a d e w i l l b e p o s s i b l e b o t h i n i m p o r t s and e x p o r t s ; a s m a l l e r volume of t r a d e w i l l f o r c e 'i 'u r k e y to c o n t r o l im ­ p o r t s and d e v e l o p h e r own r e s o u r c e s a t a s l o w e r r a t e b e ­ c a u s e o f t h e l a c k of c a p i t a l g o o d s i m p o r t s , '■‘■'hus t h e p a t t e r n f o r t h e f u t u r e w i l l d e p e n d on d e v e l o p m e n t s i n U n i t e d N a t i o n s n e g o t i a t i o n s e s p e c i a l l y a s p r a c t i c e d by o t n e r p a r t s of Nurope. They w i l l be r e f l e c t e d i n T u r k e y ’ s t r a d e p o l i c i e s s in c e Turkey as a sm all t r a d i n g n a t i o n finds i t d ifficu lt t o p u r s u e an i n d e p e n d e n t c o u r s e of a c - t i on i n t r a d e p o l i c y . 190 SELECTED BIBLIOGRAPHY1 Books A km anlar, Kenan, T u rk iy e Dis T i c a r e t i , I s t a n b u l , 1944, A l l e n , H e n r y E . , The T u r k i s h T r a n s f o r m a t i o n , The u n i v e r s i t y of Chicago P r e s s , C h ica g o , 1935. Emin, Ahmed, T u r k e y i n t h e World War, Y a l e U n i v e r s i t y P r e s s , New H a v e n , 1 9 3 0 . G o rd o n, L e l a n d , I . , A m e ri c a n R e l a t i o n s w i t h T u r k e y , 1 8 3 0 1 9 3 0 , U n i v e r s i t y of P e n n s y l v a n i a P r e s s , P h i l a d e l p h i a , 1932. H a t ip o g l u , S e v k e t, T urkiyede Z i r a i Buhran, A nkara, 1937. I n d e r e , A b d u l h a l i k , D i s T i c a r e t M e v z u a t i m i z ve T a t b i k a t i , A nkara, 1944. J a c k h , E r n e s t , The R i s i n g C r e s c e n t , E a r r a r & R i n e h a r t , I n c . , New Y o r k , 1 9 4 4 . K a z d a l, M u s ta f a , Trade R e l a t i o n s betw een t h e U n ite d S t a t e s and T u r k e y 1 9 1 9 - 1 9 4 4 , a t h e s i s , I n d i a n a U n i v e r s i t y , 1945. K r u g e r , K a r l , K e m a l i s t T u r k e y and M i d d l e E a s t , G. A l l e n a n d Unwin L t d . , L o n d o n , 1 9 3 2 . P a r k e r , J o h n , Modern T u r k e y , G e o rg e h o u t l a d g e & S o n s , L t d . , London, 1942. R a s c h i d , S c h e w k e t , Die T u r k i s c h e L a n d w i r t s c h a f t a l s G r u n d l a g e d e r T u r k is c h e n V o l k s w i r t s c h a f t , B e r l i n und L e i p z i g , 1932. T a y l o r , S t e p h e n , Handbook o f C e n t r a l and E a s t E u r o p e , The C e n t r a l E u r o p e an •‘•imes P u b l i s h i n g Co. L t d . , Z u r i c h , 1938. T o b i n , C h e s t e r M . , T u r k e y Hey t o t h e E a s t , G. P . P u t n a m ' s S o n s , New Y o r k , 1 9 4 4 . Ward, B a r b a r a , 1942. T u r k e y , O x fo rd u n i v e r s i t y P r e s s , L o n d o n , W eb ste r, Donald E. The T u r k e y of A t a t u r k , The A m e r i c a n Academy o f P o l i t i c a l and S o c i a l S c i e n c e , P h i l a d e l p h i a , 1939. 191 League of N a tio n s P u b l i c a t i o n s I n t e r n a t i o n a l T r a d e i n C e r t a i n Raw M a t e r i a l s ‘a n d F o o d s t u f f s , G e n e v a , 1 9 3 7 . . R e v ie w o f w o r l d T r a d e , G e n e v a , 1 9 3 5 , 1 9 3 6 , 1 9 3 7 , '19 3 8, 1 9 3 9 . S t a t i s t i c a l Yearbook, Geneva, 1932, 1935, 1939. _. The T r a d e o f E u r o p e , G e n e v a , 1 9 4 1 . The N e t w o r k o f Y o r l d T r a d e , Geneva 1 9 4 1 . World Economic P u r v e y , 1 9 4 1 - 1 9 4 2 , G e n ev a , 1 9 4 2 . Q u a n t i t a t i v e Trade C o n t r o l s , Geneva, 1945. Co m m e rcia l P o l i c y i n t h e I n t e r w a r P e r i o d , G e n e v a , '1942. I n t e r n a t i o n a l Trade S t a t i s t i c s , Geneva, 1937, 1938, 1939. I n t e r n a t i o n a l C u r r e n c y E x p e r i e n c e , G e n ev a , 1 9 4 4 . . E n q u iry i n t o C l e a r i n g A greem ents, Geneva, 1935. I n te rn a tio n a l I n s t i t u t e of A g ricu ltu re: I n t e r n a t i o n a l Yearbook of A g r i c u l t u r a l S t a t i s t i c s , Rome, 1 9 3 5 , 1 9 3 7 , 1 9 4 0 . . World T r a d e i n A g r i c u l t u r a l P r o d u c t s , i t s Grow th ; i t s C r i s i s ; a n d t h e new T r a d e P o l i c i e s , b y B a co n , L o i s B. Rome, 1 9 4 0 . Government P u b l i c a t i o n s U. S . D e p a r t m e n t o f S t a t e , T r a d e A g re em en t b e t w e e n t h e U n i t e d S t a t e s and T u r k e y , P r e s s r e l e a s e , N o s . 1 2 6 , 127, A p r i l 8 , 1939. ________ . R e c i p r o c a l T r a d e A g r e e m e n t b e t w e e n t h e U n i t e d S t a t e s 8nd T u r k e y , E x e c u t i v e A g r e e m e n t S e r i e s , No. 1 6 3 , W ashington, 1939. 19£ U. S . D e p a r t m e n t o f S t a t e , M u t u a l A i d A g r e e m e n t b e t w e e n t h e U n i t e d S t a t e s and T u r k e y , E x e c u t i v e A g r e e m e n t S e r i e s , No. 4 6 5 , W a s h i n g t o n , 194 5 . U. S . D e p a r t m e n t of Commerce, T u r k e y , B a s i c E conom ic P o s i ­ t i o n and R ecent Changes, I n t e r n a t i o n a l R eferen ce S e r i e s , V o l . 1 , No. 9 , A p r i l 1 9 4 1 . U. S . D e p a r t m e n t o f Commerce, E conomic S u r v e y o f t h e C o u n t ­ r i e s B o r d e r i n g t h e E a s t e r n M e d i t e r r a n e a n , and F r e n c h T e r r i t o r y i n N o r t h A f r i c a , B u r e a u of F o r e i g n and D o m e stic Commerce, 1 9 4 1 . _______ _ . T r a d e I n f o r m a t i o n B u l l e t i n s , V o l . 9 , No. 9 , S e p t ­ ember, 1945. I n t e r n a t i o n a l Reference S e r i e s , n a t i o n a l T r a d e , V o l . I V , No. 7 8 . O ffice of I n t e r ­ TJ. S. L a b o r D e p a r t m e n t , Law P r o v i d i n g L s.nd f o r F a r m e r s i n T u r k e y , S e r i a l No. R. 1 78 7 . (From M o n t h l y L a b o r R e v ie w , O c t e b e r 1 9 4 5 ) . G r e a t B r i t a i n , D e p a r t m e n t of O v e r s e a s T r a d e , E conomic and C o m m e rcia l C o n d i t i o n s i n T u r k e y , i i i s M a j e s t y ’ s ' S t a t i o n a r y O f f i c e , 1924, 1926, 1927, 1929, 1930, 1933, 1935, 1936, 1937, 1940, 1945. R o y a l I n s t i t u t e o f i n t e r n a t i o n a l A f f a i r e s , The B a l k a n S t a t e s , V ol. I . Econom ic, Oxford u n i v e r s i t y P r e s s , London, 1936. ________ . S o u t h e a s t e r n E u r o p e , P o l i t i c a l and E c o n o m i c - S u r v e y , Oxford U n i v e r s i t y P r e s s , London, 1939. R e p u b lic of T urkey, M i n i s t r y o f I n t e r i o r , N a t i o n a l Banking i n Turkey P r e s s D e p a rtm e n t, A n k a ra, 1938. T u r k e y on t h e way o f I n d u s t r i a l i z a t i o n , A n k a r a , 1937. ________La T u r q u i e C o n t e m p o r a i n e , A n k a r a , 1 9 3 5 . ________ L a T u r q u i e en C h i f f r e s , A n k a r a , 1 9 3 7 . . M i n i s t r y o f Custom s and M o n o p o l i e s , Gumruk T a r i f e s i Kanunu ve I t h a l a t umumi T a r i f e s i , A n k a r a , 1 9 4 3 . . M i n i s t r y of A g r i c u l t u r e , Z i r a a t K a n u n l a r i , A n k a r a , 1940. 193 __________. M inistry of A nkara, 1946. education, Education in Turkey, C en tral O ffice of S t a t i s t i c s , I s t a t i s t i c Y o ls. 9, 14, 15, A nkara, 1957, 1943, 1946. ________ ______D i s T icaret Y illik __________. __T a r l a T . T a h s u l l e r i __________ . __H e y v e • Ista tistig i __________. __T u r k i y e d e Is ta tis tig i, " illi . __T u r k i y e d e 1946, Istatik leri . I s t s t i s t i k l e r i , Ankara, __ ' H a y v a n l a r Ankara, v illig i, 1944. Ankara, G e l i r , Ankara, Saneyi , ^nkara, 1942. 1947. 1946. P eriodicals The N a t i o n a l Foreigh ________ . business G eographic A griculture, Septem ber Seek, A pril 1945, A pril '■ 'o rId D e p o r t , M a r c h ________ . A pril 8, __________. A pril 22, Fortune, O ctober M a g a z i n e , —a y , pp. 26, 25, 1947, pp. 1947, p. pp. 221-272. 142-144. 1947, 1947, 1947, 1940, 1945, pp. p. 7. 22-23. pp. 106. 26-27. 117-118. pp. 583-616. APPENDIX Table 1 - The U n its of Turkish Measures in Terms o f American U n its. Length measures 1 meter • 39.37 in ch es 1 ce n tim eter = 0 .3937 1 k ilo m eter = 10 93 .6 yards M Area measures 1 Dekar » 0 .2 4 7 acres 1 H ectare • 2.47 acres Volume measures 1 L ite r s = 61 cubic in ch es 1 cubic m eter ~ 1.30 9 cubic yards * 3 5.3 14 cu bic f e e t Liquid measures 1 L iter = 0 .2 6 4 g a llo n 1 L it e r = 1 .0 5 7 quart Mass measures 1 kilogram * 2 .2 0 4 pounds - 1 m etric ton * 1 .1 0 2 sh ort to n 1 m etric ton - 2204 pounds 3 2.1 5 ounces • 0.984 lon g ton ii Table 2 - Y ea rly Average o f L ir a i n Terms o f D o lla r 1 Years R ates 1923 $ 0.60 1924 0 .5 9 1936 0 .8 0 1925 0 .5 4 1937 0 .8 0 1926 0 .5 2 1938 0 .8 0 1927 0 .5 1 1939 0 .7 8 1928 0 .5 0 1940 0 .7 2 1929 0 .4 8 1941 0 .7 6 1930 0 .4 8 1942 0.77 1931 0 .4 7 1943 0.77 1932 0 .4 7 1944 0 .7 7 1933 0 .6 0 1945 0 .7 7 1934 0 .7 9 1946 0 .3 5 Years i 1935 Rates $ 0.80 Compiled from Annuair S t a t i s t l q u e s . Ankara 1936, 1942, 1946. ^-Yearly average o f s e l l i n g r a t e s of C entral Bank o f Turkey. / I ll T able 3 - V a lu e o f P r i n c i p a l E x p o r ts o f Turkey 1 9 2 3 -1 9 4 6 . ( i n 1000 l i r a s ) P art 1 Year Leaf tobacco F i l b e r t s R a isin s F ig s Cotton Mohair Wool 1923 20,339 3 ,8 1 5 1 0 ,5 6 2 4,8 66 6,169 3,152 1,111 1924 4 6,354 7,586 18,234 10,040 11,390 5,936 2,274 1925 60,244 14,180 10,999 8,237 14,906 2,748 2,539 1926 67,457 1 1,36 5 1 2,561 6,363 11 ,5 2 5 6,468 2,330 1927 43,837 1 0,365 7,6 0 4 4 ,3 2 4 10,199 6,976 2,339 1928 54,028 10,268 15,229 4 ,8 8 8 10,066 7,415 3 ,9 6 4 1929 40,687 4 ,6 7 8 9,9 3 1 5,353 10,898 4 ,3 0 4 3 ,7 9 5 1930 42,981 1 0 ,2 9 2 9,960 4,159 14,270 2,870 1 ,4 08 1931 28,752 9,272 10,769 5,355 6,321 1,594 1 ,8 1 5 1932 26,940 6,946 1 0,57 4 3 ,612 2,747 1,634 1 ,2 8 4 1933 21,086 7 ,838 6 ,9 0 8 3,717 1 ,2 3 3 2,380 1 ,949 1934 12,729 7 ,193 7 ,2 7 8 2,791 5 ,183 3,778 3 ,477 1935 1 8,676 10 ,21 5 1 0,497 4,459 6,516 2,139 1 ,8 6 8 1936 24,240 13,531 10,199 4,0 2 9 9 ,0 8 3 7,031 5,431 1937 4 3,894 1 0,69 4 5 ,9 4 2 3,246 5,405 5,725 6 ,5 5 1 1938 39,280 1 2 ,4 4 6 1 4,3 29 ^ 5,553 1 0,140 3 ,575 3 ,3 8 2 1939 38,775 8 ,2 6 2 5,701 4,260 4 ,1 9 0 7 ,653 4 ,6 9 4 1940 24,222 7,114 4 ,4 0 4 2,397 8 ,2 9 0 6 ,582 3 ,7 6 9 1941 30,665 9 ,591 9 ,0 1 3 5,4 8 4 4 ,9 1 6 9,76 5 637 1942 4 9 ,7 5 3 1 2 ,8 3 3 12,185 5,162 2,938 9,911 504 1943 98,494 21,001 9 ,1 2 0 3,209 11,611 14,486 164 1944 80,476 16,068 2 9,103 5,630 13,02 0 14,775 96 1945 97,286 18,655 1 9 ,4 8 2 6,582 112 1 ,8 2 8 — 1946 96,034 40,606 3 6,312 17,755 582 2,183 1 ,2 1 6 iv T ab le 4 - V a lu e o f P r i n c ip a l jsx p o r ts o f Turkey 1 9 2 3 -1 9 4 6 . ( i n 1000 l i r a s ) P art 2 Year L ive Animals H ides and sk in s 1923 2,477 1 ,7 2 4 409 1 ,4 2 2 -- 1 ,365 4 ,1 8 6 1924 4,6 1 1 2,0 3 4 1,16 0 3,727 — 2,065 6,120 1925 5,068 3,327 1,8 1 1 4 ,8 6 0 — 2,295 7 ,4 5 2 1926 3 ,786 3 ,6 3 8 1 ,3 0 5 4,6 1 4 1,119 1 ,8 6 5 8 ,5 0 0 1927 4 ,3 0 3 3 ,0 8 8 840 5,434 1 ,2 3 5 2,710 4 ,9 0 7 1928 2,686 3 ,1 7 6 1 ,8 8 2 6,040 406 3,050 5,327 1929 4 ,7 6 8 3., 190 1,069 6,528 41 2 ,093 8 ,6 4 8 1930 7,5 4 6 4 ,2 2 4 936 8 ,3 2 4 577 1 ,5 4 6 3,396 1931 8 ,0 0 7 3 ,9 4 4 485 10,357 856 1,2 6 9 2,818 1932 6,357 2 ,0 4 5 518 8 ,0 2 6 1 ,5 5 8 1,48 0 1 ,9 2 0 1933 5,3 0 3 1 ,5 2 2 577 4 ,8 0 6 1 ,0 9 5 1 ,7 9 0 3 ,2 3 8 1934 5,77 6 2,540 1,03 1 2,628 4 ,0 8 1 1 ,3 7 3 361 1935 4 ,433 2,520 1 ,5 9 4 1,3 6 9 2,831 1 ,3 2 3 1*064 1936 3,4 1 6 2,8 7 4 1 ,4 8 5 1 ,6 8 2 1,92 7 1 ,6 2 4 1,5 4 8 1937 2,993 2,245 1 ,2 6 3 695 7 ,885 1 ,520 1 ,6 0 5 1938 2,922 3 ,5 7 5 1,4 1 0 798 5,631 1 ,7 0 0 953 1939 2,444 4,3 1 1 1 ,7 1 0 1 ,6 8 8 1,0 7 3 1,619 2,685 1940 1 ,2 7 4 1 ,8 6 5 546 1,707 3,130 1 ,2 3 3 3,5 6 6 1941 847 9,77 5 1,0 3 7 360 — 1,429 3,2 5 0 1942 3 1 6,693 1,1 1 1 1 ,506 — 1 ,9 7 3 5,827 1943 129 1 5,043 1,3 2 1 360 74 7,025 5,817 1944 70 4,119 1,34 1 56 2,390 3 ,2 4 3 1945 930 1 1,953 2,097 4 1,569 754 5,3 8 8 1946 34,101 1 4,734 3 ,1 2 4 1 ,3 4 4 1 2,115 4 ,0 8 3 6,180 Source: Sausage Casings Eggs Wheat A n n u air S t a t i s t i q u e s , A nkara, T urkey. V alonia Opium V T ab le 5 - Volume o f P r i n c i p a l E x p o r ts o f Turkey 1 9 2 3 -1 9 4 6 ( i n 1000 k ilo g r a m s ) P art 1 Year Leaf tobacco F i l b e r t s R a is in s F ig s Cotton Mohair Wool 1923 24,428 8 ,8 1 0 32,999 19,110 9,677 2,625 2,408 1924 2 6,782 8 ,2 6 6 48,38 2 33,43 5 12,519 3,53 5 3,313 1925 3 3,72 3 13,600 23,819 22,095 1 5,940 1,349 2,881 1926 4 1,445 1 3,59 6 29,030 24,917 16,817 4 ,6 0 8 3,767 1927 29,331 15,73 8 1 8,91 4 26,903 1 5,963 4 ,5 3 0 3,410 1928 39,809 14,307 55,596 27,016 14,654 4 ,5 2 2 4 ,6 5 4 1929 3 2,64 6 4 ,5 4 8 47,750 27,583 16,373 3,1 5 1 4 ,3 8 2 1930 3 2,750 1 4,410 39,850 23,809 28,608 3,060 3 ,0 4 2 1931 2 2,212 13,341 30,140 27,206 20,178 2,351 4 ,4 2 2 1932 28,844 1 7,640 4 9,197 25,617 9 ,1 4 2 3 ,9 8 4 3 ,4 6 3 1933 25,932 1 6,028 4 5,639 26,991 3 ,9 5 7 5 ,3 6 2 5,478 1934 18,081 1 7,066 5 4,282 28,796 13,029 6,0 4 2 6 ,3 3 3 1935 21,858 1 9 ,95 8 7 6,423 37,487 14,964 2 ,896 3,920 1936 23,253 22,953 66,051 2 9,136 21,959 7,421 9 ,178 1937 39,690 2 0,663 28,820 24,350 1 1,233 4 ,009 10,783 1938 42,066 22,651 8 2 ,97 3 41,309 25,888 2,938 6,160 1939 43 ,28 4 16,831 38,980 28,633 9,217 7,070 8 ,1 2 9 1940 27,388 17,200 3 0,796 18,956 11*900 4 ,5 5 1 4 ,0 0 4 1941 31,657 1 7,52 8 3 0,082 3 3,084 8 ,1 3 2 4 ,8 7 2 669 1942 4 2,918 1 1,27 5 20,094 1 5,824 2 ,9 4 3 3 ,6 0 8 268 1943 44 ,1 8 2 14,558 1 2,455 3,571 8 ,5 6 9 4 ,3 8 5 149 1944 30,233 11,736 4 1,990 10,199 8 ,2 3 5 3,871 58 1945 3 8 ,0 7 2 13,317 39,880 14,149 646 663 mm mm 1946 28,536 23,255 60,323 24,781 286 1 ,1 8 5 900 vi T able 6 - Volume o f P r i n c i p a l E x p o r ts o f Turkey 1 9 2 3 -1 9 4 6 . ( i n 1000 k ilo g r a m s ) P art 2 Year H ides and skins Sausage C asings 1923 3 ,245 223 1924 3,207 1925 Wheat V alonia 5 ,2 1 3 — 24,732 358 266 8 ,6 6 1 — 31,632 202 4,4 5 0 260 10,055 — 35,834 266 1926 5,0 8 1 270 9,46 6 1 ,7 7 0 28,377 364 1927 3,907 308 1 1,056 1 ,7 0 3 37,194 268 1928 3 ,3 9 5 370 11,523 39 36,185 313 1929 3,167 306 1 1,16 5 189 36,891 368 1930 4 ,5 8 0 248 1 7 ,8 7 3 364 32,435 272 1931 5,204 208 24,540 1,489 26,489 351 1932 4 ,1 6 2 175 24,753 19 ,018 30,222 240 1933 2,781 1521 _ 17,911 21,376 30,947 430 1934 5,960 205 10,438 8 0,81 6 39,055 42 1935 5,669 231 6,086 64,602 34,214 110 1936 6,194 248 5,774 3 4,203 29,673 197 1937 7,638 330 3 ,0 3 2 108 ,09 2 33,713 194 1938 5,067 247 2 ,910 101,502 34,911 112 1939 5,168 315 6 ,162 23,418 37,672 342 1940 2,640 143 4 ,7 4 4 63,878 22,535 327 1941 9,490 236 766 — 14,559 199 1942 7,036 263 1,73 7 — 17,186 216 1943 5,011 130 212 277 39,911 154 1944 1 ,4 3 2 100 — 200 11,217 8© 1945 3,7 2 9 190 — 6,81.4 4 ,6 5 2 168 1946 6,493 312 704 33,777 23,799 Y8*$ Sou rce: A n n u alre S t a t i s t i q u e s , A nkara, T u rk ey. Opium I Table 7 Year 19 £3 V a lu e o f T u r k e y ’ s T r a d e 7.1 t h P r i n c i p a l C o u n t r i e s , U nited S t a te s E xports Im ports 6,- 750 1924 1 6,392 1925 25,472 192 6 1927 192 8 1929 1930 1931 1932 1933 1934 1935 1936 1937 193 8 1939 1940 1941 1942 1943 1944 194 5 1946 23,750 24.584 27.585 15,387 17,806 12,678 12,093 10,066 9,462 9,653 13,110 19,201 171,769 18,215 15,739 16*, 582 28,122 52,763 55,627 95,952 82,730 Source: 11,059 11,378 19,603 8,166 8,164 10,182 12,151 6,094 4,188 2,267 2,544 3,756 6,182 8,993 17,295 15., 680 11,685 7,447 4,007 7,171 4,887 7,644 22,183 70,131 Germany E x p o rts Im ports 7 20 27 23 14 22 20 19 13 15 18 34 39 60 50 62 47 9 26 40 61 52 626 551 701 574 708 151 582 838 649 722 223 410 201 042 412 209 504 687 870 757 102 877 — «•» - - 9 19 27 32 30 31 39 27 27 19 19 29 35 41 48 70 60 8 8 41 76 50 222 114 452 341 005 688 172 380 049 983 043 349 508 742 132 411 140 083 940 022 632 227 776 71 Italy E x ports Im ports 15,201 34,884 50,274 51,752 37,022 31,616 33,845 32,011 30,752 16,359 12,968 10,307 9 ,4 9 3 . 4,343 7 ,266. 14,562 12,752 17,951 2,853 5,074 4,756 90 130 12,109 28,353 40,984 43,487 37,096 26,054 26,426 32,032 20,591 18,450 11,074 8,450 7,395 5,669 2,026 6,085 7,120 10,023 11,224 2,385 4 ,4 3 3 5,456 482 29 12,980 1923-0 946 ( i n 1000 l i r a s ) G reat B r ita in E x p o rts Im ports France E x p o rts Im ports 15,757 23,282 17,202 21,309 16,839 17,562 14,949 13,521 10,850 9,965 8,594 5,272 5,193 6,356 9,769 4,9 4 2 7,302 11,551 19,979 25,238 27,858 51,398 32,612 75,647 10,504 18,786 24,040 22,645 16,941 18,452 19,618 18,457 12,156 7,820 6,182 2,809 3,040 3,828 5,264 4,758 5,651 6,613 1,027 532 1,789 55 2,981 17,999 25,063 34,278 37,837 33,049 28,757 27,100 31,356 16,530 14,361 10,640 10,068 8,570 8,6 8 2 6,103 .7,129 16,794 7,388 9 ,66 5 18,391 34,662 32,348 29,517 29,427 43,258 13,229 18,302 26,057 23,097 29,173 29,169 26,690 15,499 12,788 7,190 4,903 6,440 4,184 2,335 1,240 1,972 2,236 1,925 337 134 41 44 1 1,68.1 A n n u a ire S t a t i s t i q u e s , A nkara, Turkey <5 H* H* v iii Table 8: V a l u e o f P r i n c i p a l A g r i c u l t u r a l I m p o r t s o f T u rk ey 1 9 23-1946 ( i n 1 0 00 l i r a s ) C o f f e e Cru de Rubl Rubber Year Sugar 1923 192 4 192 5 192 6 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942 194 3 19 44 194 5 194 6 10,964 907 12,799 1 ,1 6 8 13,313 1 ,5 7 3 12,712 1,510 13,403 1,4 1 1 12,697 1,8 2 6 12,106 1,628 9 , 1 7 8 1,2.41 4,8 3 5 1,077 663 3,007 804 1,589 623 424 449 268 843 1,415 868 875 837 4,161 861 1,962 962 1 , 1 9 3 _ — 2,5£.5 --- 1 , 8 3 1 1,598 314 --438 --- 1 , 2 2 2 Tea Sources: 2,515 3,177 4,976 5,069 4,464 4,537 5,154 3,569 2,474 2,310 1,759 1,541 1,334 1,590 1,998 1,507 1,489 1,070 1,005 361 1,479 1,717 1,910 2,980 1,284 2,143 3,540 3,902 3,600 4,497 5,353 3,325 2,461 1,521 1,571 1,143 1,010 1,210 1,800• 1,899 1,832 824 1,090 1,313 1,045 2,973 1,265 478 1 p i H i d e s & S k i n s Lemons Cocoa 1,506 1,857 4,563 3,680 3,185 6,238 4,861 2,886 1,462 739 1,770 1,707 1,692 4,421 3,015 2,430 2,970 1,418 2,558 5,421 5,041 8,080 5,702 16,148 515 426 615 597 381 424 527 537 575 421 266 215 229 354 414 357 238 212 43 150 162 — — — 19 24 28 SO 51 80 98 58 74 59 58 55 7 54 53 46 80 52 62 142 146 262 183 358 A n n u a ire S t a t i s t i q u e s , A nkara, 1936, 1942, 1946. f i g u r e s o b t a i n e d d i r e c t f r o m C e n t r a l O f f i c e of S t a t i s t i c s of Turkey. ^1923-40 f i g u r e s from (H ayvanlar i s t a t i s t i g i ) , A nkara, 1942, p. 142. ix T ab le 9: Volume o f P r i n c i p a l A g r i c u l t u r a l I m p o r t s o f T u r k e y 1 923-1946 ( i n 100 0 k i l o g r a m s ) Year Sugar 1923 1924 1925 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1959 1940 1941 1942 1943 1944 1945 1946 46,689 52,699 67,654 62,971 61,514 63,474 68,588 63,291 44,543 29,336 17,756 3,719 2,187 22,401 11,991 62,097 27,388 9,6 1 5 __ « — __ Tea 653 ■719 906 980 850 1,144 1,022 861 892 754 1,082 674 605 1,153 974 942 1,004 955 1 » — 638 166 356 790 sources: C o f f e e Crude 'Rubber“4: i d e s & S k in s ^ L e m o n s Cocoa 4 4 5 5 5 D 5 5 5 4 4 4 4 5 5 5 5 4 3 1 3 3 677 640 200 321 000 097 638 520 363 377 536 770 360 447 120 320 947 857 022 168 244 517 o 652 3 657 382 1,403 1,987 2,094 2,037 2,801 4,106 1,498 1,386 1,119 828 965 881 1,048 1,463 1,576 1,506 677 809 729 398 1,383 643 349 . 3 4 4 4 5 6 7 3 2 1 3 3 3 -6 3 8 7 2 2 4 3 5 994 635 355 049 502 594 104 257 658 586 848 108 128 332 674 111 638 514 671 92l 084 616 ry 006 O 8 272 41 52 59 86 80 129 166 113 216 209 276 300 21 195 165 145 264 148 151 177 186 6,994 5,463 7,052 6,625 4,554 4,299 4,303 4,161 4,127 5,478 4,090 4,143 3,314 2,623 2,957 2,780 2,210 1,941 508 704 501 008 — >-•23 260 — i . n n u a l ' t a t i s t i c s , Anka r a , 1 9 5 7 , 1 9 - 2 , 1946 • ^ F ig u r e s o b t a i n e d d i r e c t from C e n tr a l C f l ic e of s t a t i s t i c s of T urkey. ^1923-40 f i g u r e s f r m L i v e s t o c k s t a t i s t i c A nkara, 1942, p. 142. (T urkish) X Table 10: V a l u e of P r i n c i p a l M a n u f a c t u r e d I m p o r t s of T u r k e y 1923-1946 ( i n 1000 l i r a s ) Year C otton goods Woolen g o o d s I r o n and S t e e l M a c h i n e r y P e t r o l e u n 19 23 53,895 8,757 7,751 1,336 5,464 1924 63,543 13,457 16,168 5,639 .6 ,1 9 5 1925 74,268 19,482 21,505 7,763 9,294 1926 72,421 20,502 22,235 10,154 8,597 1927 51,005 16,947 22,502 9,488 8,617 1928 52,482 15,258 26,327 10,462 9,075 1929 60,004 18,676 31,764 13,466 9,345 1930 32,264 10,855 20,203 11,690 5,993 1931 33,159 9,065 16,238 10,952 4,041 1932 20,557 5,555 10,429 8,207 3,411 1933 18,833 6,141 9,064 6,710 '3 ,0 0 6 1934 17,167 6,136 18,669 12,916 3,073 19 35 16,950 4,951 16,579 9,243 2,953 1936 16,616 5,848 14,414 12,202 2,999 1937 22,616 7,753 18,292 15,058 4,221 1 93 8 22,465 7,355 28,173 23,013 5,517 1939 16,307 4,800 20,146 19,958 5,394 1940 6,672 2,277 6,024 8,916 10,253 1941 7,025 3,250 7,250 6,645 10,751 1 94 2 222,969 7,213 20,403 14,999 5,528 194 3 9,006 8 ,8 1 8 34,732 21,443 9,767 1944 6,994 6,297 23,071 20,068 13,764 1 94 5 5,869 8,921 9,955 12,670 9,619 1946 8,879 11,867 27,343 32,799 1 4 ,2 0 ^ S & u rce: A n n u a ir e S t a t i s t i q u e s , A nkara, T urkey. xi T a b le 11: Turkey* s E x p o r t s of in v a lu e (in 1 9 2 5 -1 9 4 6 . 1000 lir a s ) W ether- 11,562 14,905 25,964 1,186 — 2,787 700 1926 10,975 12,273 36,398 456 — 2,014 2,464 1927 11,517 4 ,6 66 - 16,809 377 509 577 215 1928 12,998 6,485 14,986 1,059 7,017 734 4,776 3,1 2 5 10,081 11,798 1,389 3,513 1,094 4,464 1929 • 192 5 CO Year • h> Germany T obacco t o P r in c ip a l C o u n tr ie s . Italy B e lg iu m C z e c h o s l o v a k i a la n d s Egypt 19 30 10,423 8,447 11,383 1,848 1,072 1,586 2,327 1951. 7,610 2,059 9,004 582 3,014 2,465 1,194 1932 8,283 5,231 3,084 969 1,158 2,425 950 1933 5,462 6,927 939 1,053 3,350 453 647 1934 4,738. 4,3 7 1 592 156 60 277 503 1935 6,781 5,796 75 580 1,971 321 750 1936 10,141 8,026 1 570 2,221 2fo1 206 1937 14,921 18,033 984 664 2,003 353 543 1938 14,025 13,596 2,899 ■ 388 1,818 889 648 1939 11,829 15,620 2,658 274 1,586 1,196 832 1940 7,528 5,964 3,629 32 462 53 816 1941 9,960 11,010 -- 49 172 158 2,564 1942 18,149 15,560 220 92 598 435 7,302 1943 44,660 23,932 143 — 83 56 1 9 , 2 0 4 194 4 44,306 9,138 — — 21 1 5 , 1 6 8 19 45 63,656 — 1946 49,119 — Source: 718 518 419 2,008 19,012 2,921 1,910 2,113 18,698 ' Annua i r e S t a t i s t i q u e s , A n k a r a , T urkey d x ii Table IS : Number of L i v e s t o c k i n T u r k e y , 1 9 5 5 - 1 9 4 5 . ( i n 1000 h e a d , a l l a g e s ) Sheep M ohair Go at Common Goat C attle Horse Ass Mule Camel 1955 13,591 , o05 8,456 7,165 741 1,164 66 97 1956 20,772 4 ,2 9 5 10,727 9,130 1^020 1,569 73 118 1937 21,725 4 ,4 5 9 11,050 9,670 1,050 1,684 77 119 1938 £3,138 4 ,9 4 5 11,329 10,196 964 ' 1 , 4 9 0 71 114 1939 2 5 , ;:21 5 , 3 5 5 11,185 10,302 947 1,387 74 109 1940 26,272 5,501 11,395 10,706 898 1,813. 70 109 1941 25,412 5 ,5 5 4 11,523 11,007 982 1,805 91 111 1942 22,967 4 ,9 7 3 11,430 10,500 987 1,690 86 114 1945 21,105 4 ,3 8 1 11,825 10,089 981 1,621 92 108 1944 22,450 4 ,9 7 5 12,250 10,406 1,067 1,644 82 104 1945 23,786 3,997 12,222 10,658 977 1,618 88 99 Source: H a y v an la r I s t s t i s t i g i , Ankara, 1942. A n n u aire S t a t i s t i q u e s , A nkara, 1946. M X iii Trtole 1 5 : A c r e a g e and P r o d u c t i o n of F i e l d Crops i n T u r k e y , 1 9 5 5 - 5 9 , a v e r a g e , 1 9 4 0 , 1 9 4 1 . and 1 9 4 2 . • ( A c r e a g e i n 1000 h e c t a r e s , p r o d u c t i o n i n 1000 t o n s ) 1935-59 _ 1940 H ect. Prod. H ect. Prod. 1941 H ect. Prod. 1942 H ect. Prod. '5$beat 3,623 3,708 4 ,381 4,068 4 , 3 9 4 3 ,483 4,369 2,000 B arley 1,8 5 5 2,075 2 ,092 2,249 2 , 0 5 7 1 ,7 5 8 1,932 902 ©arm 448 .587 510 757 502 647 651 360 ©&ts 580 568 464 482 490 342 446 163 Bye 258 247 394 328 367 263 349 183 B ice 30 60 26 63 41 56 26 35 O ther C e re a ls 315 259 322 277 342 277 366 .178 legum es 392 319 402 372 423 337 429 249 C c t t 0X1 268 60 325 77 327 64 327 78 79 61 78 71 75 55 78 59 P ctsto es 55 181 68 319 73 275 93 279 Sanger B e e t 3 Opiuea. 29 394 39 550 41 556 29 376 29 282 30 223 30 206 28 151 F lex (fib e r) 19 3 36 11 41 7 33 3 H e x seed — 9 — 18 — 19 — 6 E©ffi© ( f i b e r ) 12 8 12 6 12 10 14 10 Henp s e e d — 2 — 4 — 4 — 3 S e sa m e 65 29 80 43 67 33 ■ 58 20 148 56 181 54 112 ©mi