Abstract

"U.S. Commercial Diplomacy Towards Turkey: Ambassador George C. McGhee’s Role in the Privatization of the Oil Business in the 1950s"

Murat Iplikci, Columbia University (muratiplikci@gmail.com)

American political actors occupied an important place in Turkish economic politics in the 1950s. They were highly valued by the Turkish governments and participated in decision-making processes as advisers, especially in matters of commerce and privatization. With a degree and business background in the oil sector and experience in the Turkish mission, George C. McGhee was one of the fittest candidates for commercial diplomats to be sent to Turkey at the end of the Marshall Plan for further American investments. Throughout his short tenure as ambassador, McGhee influenced Turkish leaders to privatize the oil sector. He mediated between the Turkish government and American lawyers specializing in oil bills and American companies as possible investors. Shortly after he left the Turkish post, Turkey passed a law that privatized the oil sector. This article examines Ambassador McGhee's role in privatizing the oil business in Turkey during the 1950s. He played a significant role in shaping U.S. commercial diplomacy towards Turkey during this period. The article draws on various primary sources such as McGhee’s own accounts, papers, and the documents gathered from the Turkish National Archives, Grand National Assembly minutes, and FRUS papers. Additionally, secondary sources covering the topics related to U.S.-Turkey business and commercial relations in the post-WWII period and the general framework of American business and commercial diplomacy are provided as a comprehensive analysis of McGhee's involvement in the privatization process. The research findings highlight the interplay between political, economic, and diplomatic factors in the decision-making process, as well as the role of business-oriented political actors. By revising prevailing interpretations and offering causal claims, the article contributes to a deeper understanding of the privatization process in Turkish economic history and its impact on U.S.-Turkey business relations.