868.51/1654

Memorandum by the Under Secretary of State (Welles) to the Chief of the Division of Near Eastern Affairs (Alling)

I suggest that you discuss this problem69 with Dr. Berle,70 and I further suggest that, unless you see some objection, the Bureau of the Budget be requested to give its advice as to the best way of handling this situation. It is my understanding that the President has decided that some arrangement must be made whereby the Greek Government can be kept going.71 The amounts involved are relatively small and [Page 801] it would seem to me that the time has come for us to consider the desirability of ascertaining whether the Congress would approve a government-to-government credit for arrangements of this character with the refugee governments.

S[umner] W[elles]
  1. See memorandum of conversation, supra.
  2. Adolf A. Berle, Jr., Assistant Secretary of State.
  3. In a letter of December 14, 1942, to the Secretary of the Treasury (Morgenthau), the Secretary of State said: “King George of Greece and the Greek Premier, during their visit to this country last June, stated that the financial situation of the Greek Government was rapidly deteriorating and appealed to this Government for financial assistance. It is my understanding that the President has decided that some arrangement must be made by which the Greek Government can be kept going.” (868.51/1662) Regarding the visit of King George II to the United States, see bracketed note, p. 797.