The World War Two Allied Economic Warfare: The Case of Turkish Chrome Sales Inaugural-Dissertation in der Philosophischen Fakultät und Fachbereich Theologie der Friedrich-Alexander-Universität Erlangen Nürnberg Vorgelegt von Murat Önsoy Aus der Türkei D29 Tag der mündlichen Prüfung: 15 April 2009 Dekan: Universitätsprofessor Dr. Jens Kulenkampff. Erstgutachter: Universitätsprofessor Dr. Thomas Philipp Zweitgutachter: Universitätsprofessor Dr. Şefik Alp Bahadır ACKNOWLEDGMENTS An interesting coincidence took place in the first year of my PhD study, I would like to share it here. Soon after I moved to Erlangen, I started thinking over my PhD thesis topic. I was searching for an appropriate subject. Turkish Chrome Sales was one of the few topics that I had in my mind. One day, I went to my Doktorvater Prof. Thomas Philipp’s office and discussed the topics with him. We decided to postpone the decision a few days while I wanted to consider the topics one last time and do the final elimination. Afterwards I went to the cafeteria of the Friedrich Alexander University to have lunch. After the lunch, just before I left the cafeteria building, I recognized somebody speaking Turkish and reflexively turned around. He was a Turkish guest worker with a large thick moustache; I paid attention to his name tag for a second. His name was Krom, the Turkish word for chrome, since, for the first time in my life I was meeting someone with the name Krom I asked him about his name. Perhaps he is the only person with this name in Turkey. He told me that, this name was given by his father, who was a worker of a chrome mine in Central Anatolia and that day, when Mr. Krom, was born; his father had a shift and could not accompany his wife. That night when he went back to home from work, he holds his child for the first time and decides to give him the name Krom, while the time Mr. Krom was born he was working in the chrome mine. A week after this interesting coincidence, I went to Prof. Philipp and told him that I decided to study Turkish Chrome Sales as my PhD thesis. Life is full of coincidences but I still don’t know to what extend this coincidence influenced my decision to study World War II Turkish Chrome Sales . I would like to express my deepest gratitude for my Doktorvater Herr Prof. Dr. Thomas Philipp for his patience, generosity and support throughout this study. Having the chance to be the PhD student of such an eminent Professor was a great privilege for me. By attaching priority to detailed research and giving utmost support, he paved the way for a better dissertation. My thanks go as well to Prof. Dr. Dr. hc Şefik Alp Bahadir. Without his guidance and moral support, I could not have written my PhD thesis in such a short period. Thanks to his helpfulness I easily overcame the burdens of being a foreign student in Germany. Besides that I feel myself lucky to be acquainted with such a personality. I would like to say thank you to the lovely secretary of our institute, Karin Rohde and Heiko Schuß i I would like to say thank you to all my family members one by one. First of all, I would like to remember my dear dad Prof. Dr. Rifat Önsoy with gratitude. I know how much he wanted me to chose this profession and how halfheartedly I started my career, but now I have started to love it. My mom Gülsen, and my three aunts, Mimi, Türkan and Nono, who are nothing less than my mom, I owe each of you a lot, you tolerated every mental state of a PhD candidate from beginning to end. My cousin (sister) Dilek, her husband Chris and lovely Kyra, thanks for opening your house to me in Washington DC and giving the opportunity to live with you a wonderful year and organic indeed. Without you I could not have the chance to conduct research in US. The last person I would like to say thank you from family is my grandma Emine, whom I will always remember with gratitude. I also want to say thank you to my colloquies and professors from the Hacettepe University Department of International Relations and my MA supervisor Hasan Ünal and his precious wife Evgenia. My special thanks go to Tuğba Özden, my love and best friend. She didn’t withhold his support for any single moment despite my mental instability throughout the thesis. Last but not least I would like to say thank you to all my friends, Ozan, Orkun, Sinem and Arcan for all the entertaining and sportive moments they shared with me, all the ‘Konutkent Tayfa’; Barış, Batu, Erdem, Ertan, Hakan, Koray and Türker. My school and later roommate, Önder, and Tolga. Ramajana Jasarspahic her brother Kenan and their lovely family, Görkem Uludüz and his wife Pınar, Emrah Safa Gürkan and his fiance Elif and Lara Panis and her family. ii TABLE OF CONTENTS ACKNOWLEDGMENTS…………………………………………………………………i TABLE OF CONTENTS.....................................................................................................iii INTRODUCTION.................................................................................................................1 CHAPTER I: THEORETICAL APPROACHES AND DEFINITIONS OF ECONOMIC WARFARE AND NEUTRALITY…………………………………………………………5 1.1. Economic Warfare………………………………………………………………………5 1.1.1. Definitions of Economic Warfare…………………………………………………5 1.1.2. History of Economic Warfare……………………………………………………..6 1.1.2.1. From Blockade to ‘Economic Warfare’, a Brief History…………………6 1.1.2.2. Pre-War Planning of Economic Warfare in Germany…………………….8 1.1.2.3. Pre-War Planning of Economic Warfare in Great Britain……………….11 1.1.2.4. Pre-War Planning of Economic Warfare in the USA…………………....15 1.1.3 Economic Warfare Measures………………………………………………………16 1.1.3.1. Choosing Economic Warfare Methods…………………………………..17 1.1.4. Cost of the Economic Warfare…………………………………………………....18 1.1.5. Effectiveness of the Economic Warfare…………………………………………..18 1.2. Neutrality……………………………………………………………………………....19 1.2.1. Definitions………………………………………………………………………...19 1.2.2. Types of Neutralities……………………………………………………………....22 1.2.3. Factors Determining the Cost to a Neutral of Severing its Trade with a Belligerent………………………………………………………………………………24 1.2.3.1. A Deterring Factor: The Fear of Military Intervention…………………..25 1.2.4. The Economic Rights and Obligations of Neutrals……………………………….25 1.2.5. Ways of Controlling Neutral Trade/Economic Warfare Methods………………..26 1.2.5.1. Shipping Control……………………………………………………...…26 1.2.5.1.1. Diverting the Ships in the Sea………………………………...….27 1.2.5.2. Blacklisting of Foreign Firms………………………………………...…28 1.2.5.3. Measures for Controlling Re-exports from Neutral Territories……..…28 1.2.5.3.1. Blockade……………………………………………………….…....29 1.2.5.3.2. Guarantees for the Final Destination. ……………………….……...29 iii 1.2.5.3.3.Embargo……………………………..…………..……................................29 1.2.5.3.4 Diverting Neutral Trade…...…………..………..………………………….30 1.2.5.3.5 Pre-Emptive Buying and Economic Cooperation in the Allocation of Critical Materials…………………………………………..……..…………………………..31 1.2.6. Neutrals in the Eye of Belligerents………………..…..…………………………....31 CHAPTER 2 NEUTRALITY AND TURKEY...…………………………………………..34 2.1. Roots of Turkish Foreign Policy of Neutrality…………………………………………34 2.1.1 Turkish State Elite and Their Contribution to the Neutrality…………………….36 2.1.1.1. Atatürk and His Foreign Policy of Neutrality……………………………….36 2.1.1.2. İnönü and His Foreign Policy of Neutrality…………………………………40 2.1.2. Guiding Principles of the Turkish Foreign Policy………………………………...43 2.1.2.1. The Impact of Kemalism on the Turkish Foreign Policy of Neutrality: The Priority of Peace, Sovereignty and National Development Over Expansionist Revisionism:44 2.1.2.2. Russia as the Primary Threat to the Security of the Republic………………….47 2.2. Relations with the Major Powers Prior to World War II……………………...………...49 2.2.1. Germany: Ever Increasing Dependence……………...…………………………...50 2.2.2. Italy and the New Enemy……………………………..………………………….54 2.2.3. The Soviet Union: the Archenemy…………………...…………………………...56 2.2.4. Great Britain: the Remittent Partner………………...……………………………58 2.2.5 The United States of America: Nothing but Diplomatic Cordiality……...……….62 2.3. Military Weakness as the main reason for Neutrality………………………...…………63 2.4. Turkish Neutrality in World War II…………………………………………...………...64 CHAPTER 3: ECONOMIC WARFARE in TURKEY REGARDING CHROME...……...74 3.1. Germany’s Dependency on Chrome from Abroad………………………………………77 3.1.1. Balkans and Germany’s Chrome Situation………………………………………..81 3.2. Turkey and Chrome……………………………………………………………………...83 3.2.1. Turkish Suppliers Value to Germany……………………………………………..85 3.2.2. Chrome ore Pre-emption in the Second World War……………………...………86 3.2.3. Allied Economic Warfare and the Turkish Chrome in the Second World War…..87 iv 3.2.4. Allied Economic Warfare Plans in The Case of a German Invasion of Turkey…115 3.2.5. Important Factors Affecting the Allied Economic Warfare Regarding Turkish Chrome……………………………………………………………………………………...116 3.2.5.1. The Turkish Policy of Neutrality and Tough Bargaining Strategy Regarding the Chrome Sales……………………………………………………………………………116 3.2.5.2. Role of Transportation Difficulties……………………………………....131 3.2.5.3. Role of the Mine Owners………………………………………………..139 3.3. British Chrome Policy and its Evolution Throughout the War………………………...142 3.3.1. First Period……………………………………………………………………....142 3.3.2. Second Period …………………………………………………………………..146 3.3.3. Third Period ………………………………………………………………….....150 3.4. The U.S. Foreign Policy and Chrome……………………………………………….....158 CHAPTER 4: REASONS FOR THE FAILURE OF ALLIED ECONOMIC WARFARE REGARDING CHROME IN TURKEY…………………...………………………………164 4.1. Reasons For The Failure Of Allied Economic Warfare Regarding Chrome In Turkey.164 4.1.1. Failure of the Tripartite Alliance…………………………………………...…...167 4.1.2. Shortsightedness of the Allied Governments in Limiting the Chrome Agreement of January 1940 to Two Years………………………………………………………………....169 4.1.3. Great Britain not Being Able to Replace Germany as a Trade Partner………….170 4.1.4. The Military Ineffectiveness of the Allies……………………………………….171 4.1.4.1.