868.00/11–1645: Telegramz

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

1304. Mytel 1300 November 15. To reject McNeil proposals would seem very difficult for Greek Govt desiring continue British support and if attendant publicity well handled acceptance might not immediately cause Greek or foreign opinion see any marked change in present situation in which British control Greek economy commonly assumed more absolute than really is. Furthermore, acceptance might have momentary result strengthen hand present Greek Govt while actual technical assistance backed by authority to carry out plan would be certain produce some constructive results. However, long term effects more dubious since Greek people accustomed foreign advisers but detest dictation any form, particularly from outside. Drastic measures adopted at foreign instigation to enforce foreign program only [Page 269] too likely stir nationwide resentment against “mandate” (as plan described privately by British official). Existing British involvement Greek political situation may justify risking such reaction but unless we willing become equally involved believe US participation unwise. Sympathetic consideration could be given to any requests British Mission might make for US aid in specific problems without our sharing responsibility total program conceived and sure to be implemented under predominant influence British imperial policy.

As regards details of plan, these would seem indicate British contemplate control Greek economic life to even greater extent than Germans attempted during occupation when rationing [took?] place and similar control far less drastic than in Britain today. Labor Govt bias possibly reflected in memo’s reference to Greek manufacturers obstructing Govt’s designs, taxation of rich needing resolute action, and suggestion introducing organization such as Scottish Cooperative Movement if Greek retailers unprepared cooperate. In this respect British Govt seems associating itself with position frequently taken UNRRA and local Leftist circles, to effect present difficulties largely fault Greek business men. However, this Embassy’s belief these last form with peasants most virile forward-looking sections Greek population and current economic troubles due at least as much to impractical advice from UNRRA and British sources as to failure Greek business cooperate.

MacVeagh