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

868.50/11–2845: Telegram

The Secretary of State to the Ambassador in Greece (MacVeagh)²⁵

Washington, November 28, 1945—5 p.m.

1200. Urtel 1250, November 5 and following.

(1) Dept concerned with Greek economic conditions, failure to make more progress toward recovery, importance preventing further economic deterioration before elections. Dept wishes to give Greece tangible evidence US support of constructive efforts to improve conditions.

(2) In general Dept feels that principal US contributions to Greek recovery should be provision of credits and support of Greek Govt efforts toward internal economic stabilization. To implement these Dept expects, simultaneously with signature of $25 million Eximbank loan, to submit note to Greek Govt announcing loan, expressing US concern over economic situation, indicating that extent of further economic assistance from US necessarily influenced by effectiveness of Greek Govt’s economic stabilization program, and expressing Dept’s willingness make available technical advisory assistance if requested by Greek Govt. Dept recognizes, however, that basic need not so much US technical advice as more resolute administration and revival of production and exports. President has indicated tentative approval submission such a note.

(3) Note to Greek Govt would be made public to announce loan and indicate continuing concern of US for Greek recovery and US support of necessary measures for internal economic stabilization.

(4) If, as expected, Greek Govt requests technical advisers Dept would suggest group to handle currency and finance, agricultural rehabilitation and development, industrial rehabilitation, civil administration, price control and rationing. Group should be independent of any British advisers but instructed to cooperate closely with them and, where appropriate, take parallel action in dealing with Greek Govt. Dept intends discuss proposal informally with British here after receiving your comments.

(5) Your comments on subject proposals urgently requested. Suggest you discuss with UNRRA and, if you deem advisable, with British, indicating Dept does not favor attempt place foreigners in Greek ministries with direct administrative responsibility. Urtel 1317, November 17.

Byrnes

25. In an undated memorandum attached to this telegram, William O. Baxter of the Division of Near Eastern Affairs stated: “This is the result and first implementing step following our memorandum of November 10 to the President suggesting methods to halt deteriorating economic conditions in Greece. Pending a reply, discussions in the Department are continuing and a proposed note to the Greek Government is being drafted.”