British Foreign Policy, the Financial Elite, and the Nationalisation of the Constantinople Quays Company, 1934–1945

Abstract

The analysis examines the role of British financial institutions, namely the Bank of England and the Corporation of Foreign Bondholders [CFB], in the making of British policy towards Turkey. The nationalisation of the Constantinople Quays Company, a port operator purchased in 1907 by the British and French governments, serves as a case study through which business–state relations, the role of finance in the conduct of international relations, and the impact of perceptions on policy decisions are explored. In this case, the financial elite’s role was minimal during most of the period considered, becoming more important in the final war years in a framework of the Anglo–Turkish debt restructuring negotiations of 1944. Significantly, the CFB, rather than the Bank, represented the British government in the negotiations. There exists an abundance of evidence of the divergent views between Whitehall and the financial elite about Turkey’s trustworthiness as a debtor and a signatory to treaties. The British government’s perceptions were much more positive than those of the financial elite. This difference stemmed from the different interests involved: Whitehall sought to secure Turkey’s collaboration in the increasingly unstable global security environment while the Bank and the CFB were more concerned with investor and bondholder interests and attempted to avoid further financial losses.