Foreign Relations of the United States, Diplomatic Papers, 1945, The Near East and Africa, Volume VIII

868.24/7–2545

Memorandum of Conversation, by the Assistant Chief of the Division of Near Eastern Affairs (Kohler)⁵⁴

[Washington,] July 25, 1945.

Participants:	The Greek Ambassador
	Mr. Henderson55
	Mr. Kohler

The Greek Ambassador telephoned Mr. Kohler this morning and in reply to the latter’s inquiry informed him that Mr. Oscar Cox of FEA.⁵⁶ had now cancelled three successive appointments. The Ambassador feared that Mr. Cox might be trying to “dodge” inquiries about the $100,000,000 lend-lease program for Italy announced in the press.

During his call this afternoon the Ambassador told us however that he had subsequently been in touch with Mr. Cox and had been informed that while it was not true that lend-lease was being extended to Italy, it was true that FEA was undertaking to provide various supplies and equipment for Italy in an aggregate value of approximately $100,000,000 required to keep Italian economy in the reasonable state of repair required by military considerations. The Ambassador added that while FEA had been unwilling to extend lend-lease to Greece for her urgent reconstruction needs it had undertaken to arrange for procurement and short-term financing of the more urgent items of Greek requirements subject to later repayment from the Export-Import Bank credits which Greece was expected to obtain. The Ambassador expressed his personal understanding of the considerations underlying our supply program for Italy and his appreciation of the facilities FEA was offering in connection with Greek requirements. However he emphasized that the material supplied to Italy would in fact result in a considerable rehabilitation and reconstruction of Italian industries and general economy and it would be impossible for Greek public opinion to understand why we should do this for Italy and not do as much for Greece the faithful ally whose entire economy had been wrecked as a result of her participation in the war. The Ambassador therefore felt that it was not enough that the United States should simply extend repayable Export-Import Bank credits to the Greek Government, necessary as these were. The suffering of the Greek people in the war, the aggressive attitude of her northern neighbors toward Greece and the suspicion that Greece was being abandoned by her great western friends had created a state of public despair which could only be overcome by a positive and generous offer of economic assistance. He therefore hoped that the responsible officers of the State Department and other Government agencies would immediately give serious consideration to the prompt preparation and announcement of such a program of assistance.

54. On July 21, 1945, Mr. Kohler prepared a memorandum of a conversation with the Greek Ambassador the same morning, in which the Ambassador cited press reports regarding allocation of $100,000,000 worth of lend-lease goods to Italy (see President Truman’s letter of July 2, 1945, to Acting Secretary of State Grew, vol. iv, p. 1265) and stated that the Greek Supply Mission in the United States had submitted a list of urgently needed reconstruction goods but had not been encouraged by the FEA (868.24/7–2145).
55. Loy W. Henderson, Director of the Office of Near Eastern and African Affairs.
56. Mr. Cox was Deputy Administrator of the FEA.