868.50/6–745: Telegram

The Ambassador in Greece ( MacVeagh ) to the Secretary of State

556. Urtel 449 of June 2. To help effectively with overall problem of Greece’s economic recovery I feel any contemplated clarification of policy should take into account political and psychological conditions beyond competence of industrial experts. Such factors as dynamic Communist movement under Moscow-trained leaders and widespread belief in non-Communist circles that Anglo-Russian conflict is inevitable, placing Greece in jeopardy to Soviet-supported northern neighbors, are largely responsible for local stresses preventing resumption normal activities. Meanwhile US prestige, high due to war, but traditional policy, restricted to general benevolence and trade promotion combined with strict nonintervention internal matters, seems ill-adapted present world situation in which local upheavals even in small countries capable causing wide repercussions. Furthermore, this policy actually enabling both Left, Right claim US sympathy while continuing extremist activities. Realize difficulties of reorienting policy maintained many years, but suggest clear statement of firm determination discountenance all unilateral solutions whatever in Greek external, internal affairs from now on might provide useful warning to troublemakers and assist restore necessary calm.

Leaving aside larger aspects, purely economic causes of local unrest can perhaps best be dealt with by supplying raw materials and fuel to reactivate industry through existing agencies and, particularly, normal channels of trade. Proposed advisory mission of industrial experts could not affect present situation appreciably, but might possibly be useful later in connection development relatively simple industries after elementary needs supplied.

MacVeagh