868.50/11–1745: Telegram
The Ambassador in Greece (MacVeagh) to the Secretary of State
[Received November 19—10:31 a.m.]
1317. Mytels 1300, November 15 and 1304, November 16. Prime Minister and Finance Minister called on me at noon today in considerable embarrassment re British proposal send economic mission Greece. Said Greek public “very sensitive” and expressed fear disastrous political effect placing foreigners in Greek Ministries with such powers as British apparently envisage (also said felt have no right as interim regime to commit future Greek Government constituted on basis elections). Therefore consider proposal as put forward unacceptable [Page 271] though would favor joint mission experts attached United States and British Embassies acting advisory capacity to Greek Government. Asked my opinion and I advised they give British full benefit their ideas with view finding solution mutually acceptable. In connection this discussion, Cassimatis said has suggested McNeil creation semi-governmental consortium with United States, British and Greek banking participation to finance and direct country’s reconstruction.
Both Ministers disturbed by McNeil’s speech Government dinner Thursday night23 which widely interpreted as indication British willingness extend further “moral” but not financial aid.24 Held speech directly responsible skyrocketing gold pound yesterday today from 53,000 to 63,000 drachmas. Prime Minister called McNeil’s statement “Greece still has 26 million” of 1941 British loan 46 million sterling “untrue”. Actually statement perhaps misleading since unexpended portion loan is in effect only bookkeeping entry London against which various outlays chiefly for war purposes expected charged. Finance Minister referred proposals United States credit for supply goods and sale gold as described mytels 1250, November 4 [5] and 1255, November 6. Said obvious British inability extend financial help renders all more urgent tangible evidence increased United States interest and aid. Again emphasized gold’s peculiar psychological importance present Greek situation which believes unique and insisted mere announcement 650,000 sovereigns made available to Bank Greece would change entire trend. Inquired whether reply received mytel 1255. Keenly interested possibility Eximbank credit as are also McNeil, Leeper with particular reference suggestion small exploratory Eximbank mission mytel 1250.
Faced with the necessity rejecting only proposal so far made by widely-heralded McNeil Mission, both Ministers betrayed discouragement, and this likely reflected even more sharply in popular feeling when facts known. Psychological factor of tremendous importance especially in connection stability insure desired elections. Consequently pending consideration strictly advisory joint mission if this proposed by Greeks and accepted British would urge immediate attention given suggestions mytels 1250 and 1255 as possible inexpensive means bridge over serious situation.
Department’s views urgently requested.