868.51/12–1446: Telegram
The Ambassador in Greece (MacVeagh) to the Secretary of State
[Received December 15—3:06 p.m.]
1718. Embassy’s telegrams 1501 and 1502, November 4.70 Greek Government foreign exchange position becoming daily more acute and already has reached point foreshadowing financial breakdown unless adequate assistance provided within few weeks.
[Here follow details of the exchange position.]
In view of “strained international relations focussing on Greece” (Department’s telegram 1336 of November [October] 15) and inescapable consequences of new economic collapse this country, I agree with all competent United States and British opinion here that financial assistance should be provided soonest. Suggest this should be both in kind and in cash, the former to follow termination of UNRRA supplies while cash grant (probably better than loan) should be made available immediately without awaiting results of economic mission survey now scheduled to leave United States early in January and impossible of completion till next spring. Gregory (recently replacing Nixon as British Treasury representative on Currency Committee) expresses personal opinion that British Treasury might be persuaded to make cash grant of 4 or 5 million pounds. He expresses no opinion regarding possible settlement basis for above mentioned Greek claim of 16,900,000 pounds.