PLACE: Ankara / DATE: 12 Ekim 1936
PRESIDENT OF THE REPUBLIC: M.KEMAL ATATÜRK
PRIME MINISTER: İSMET İNÖNÜ
MINISTER OF ECONOMY: CELAL BAYAR
Our Minister of Economy’s Opening Speech at the Hazelnut Congress:
Dear Sirs,
Hazelnuts are a national product that holds an important place among our country’s export commodities. They are the main source of livelihood for the people in a populous and beautiful part of our country. For this reason, I have invited you here to examine the stages they go through, from production to reaching the consumer.
I would like to thank each and every one of you for accepting and rushing to this important task. All relevant chambers participated in the congress. However, I would like to note that the Trabzon Chamber is not represented here.
Among the topics we will examine in a series, I would like to highlight one point in particular. That is the part of the relationship between the farmer and the merchant that specifically concerns loans and credit transactions. I would like to know your thoughts on how this should be going forward, given its current form. Another point that I believe should be clearly understood is that today’s meeting is not a policy decision based on current prices. I have stated on various occasions what the value of our export goods should be. I believe it is useful to summarize this idea once again: The trade agreement policy we have been following has facilitated the sale of our goods and enabled the development of reciprocal trade in some countries. It has increased the demand for our goods. As a matter of principle, we believe that Turkish export goods should stand out in foreign markets not only in terms of quality but also in terms of price. For this reason, we want to rationalize our working methods from the initial stages of production to the consumer stage and, in this way, minimize our costs and ensure affordability, which is the greatest factor of competition and success apart from quality. This does not mean, of course, dumping our goods abroad at rock-bottom prices and reducing the producer’s necessary income for survival and continued work to zero. It is this income that we are most protective of and wish to increase and consolidate through rationalization. Our export traders should consider our trade position in various countries within the current situation and regard it as a national duty to strive to secure the price required by the mutual buying and selling situation, taking into account all factors that determine the price. It is just as wrong to try to impose prices on our buyers by taking advantage of any situation as it is to neglect elements that would make prices more favorable under certain trade conditions and sell at a lower price. It is necessary to always keep in mind the normal conditions for each situation and strive to set prices accordingly. Some of you are merchants, some are producers, and some are industrialists. We believe that your interests are not separate but rather shared in terms of the national economy. I can say with certainty on behalf of the Government that we are not prisoners of any one-sided considerations. When I say merchant, I do not distinguish between foreign or Turkish. Every foreigner who has settled in this country, who complies with the requirements of this country’s national economy, who serves this country with his capital and knowledge, and who values the country’s products, is performing an equally important duty.
Another point I would like to mention is this:
Some people seem to think that we want to criticize forward sales. This is completely wrong. One of the greatest results and goals of the rationalization struggle that we want to universalize as soon as possible will be the development of this type of sale. We are not fighting against forward sales, but against merchants who have made ala baisse forward sales a tradition, and we will continue to fight them. These individuals take advantage of the disorganization of producers and their need for credit, confident that they can buy goods at whatever price they want, destroying the country’s economy with increasingly low prices. There is no reason that could justify legitimate speculation or legitimize a la baisse and en baisse situations. We all know how much our country’s children and the genuine merchant class are suffering from this situation. Those who wish to continue this bad practice will no longer find it possible to live in this country. The organization of producers does not mean a decrease in the number of exporting merchants. On the contrary, the growth of a national exporting class loyal to the national consciousness is one of our goals and greatest needs. Let me summarize my words:
Our goal and the purpose of our gathering is to jointly examine rational working methods and identify the obstacles and shortcomings that hinder such work. Our thoughts and concerns are never one-sided. We will treat both producers and traders with the same interest and affection, and we will seek the best form and conditions to secure their separate interests. Our policy is neither to exploit external sales prices and specific situations nor to disregard the elements that determine prices under specific economic conditions. Our primary ambition is to find the most rational working method that will increase quality, reduce costs, and thus increase the profitability of production and export. I am pleased to learn that representatives of our chocolate industry are among you. I thank them for their interest and recommend that they work to make hazelnut products a Turkish export specialty. Now I will leave you to your agenda. To this end, I ask you to elect two vice-presidents, one from among the merchants and one from among the producers, leaving the presidency to me. I would like to add one more point, which I believe will increase your enthusiasm for the work: It is a feeling that has remained from the distant past that such meetings are a fruitless exchange of words. You can be sure that the decisions you take will be considered with importance and attention and that efforts will be made to implement them as soon as possible.
