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

Abstract

Abstract American diplomats occupied an important place in Turkish politics in the 1950s. They were not only highly valued by Turkish governments; they also participated in decision-making processes as advisers, especially in matters of commerce and privatization. This article focuses on one of these influential actors, George C. McGhee, who played a significant role in the denationalization of Turkey’s oil operations in March 1954. With a degree and business background in the oil sector and experience in the Turkish mission, McGhee was an effective commercial diplomat. 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, alongside American companies as possible investors. Shortly after he left the Turkish post, Turkey passed a law that privatized the oil sector.