868.00/1–347: Telegram
The Secretary of State to the Ambassador in Greece (MacVeagh)
8. During recent visit as guest of US Govt81 Tsaldaris received usual official courtesies and in addition to seeing President once had talks with most top Dept officials as well as SecTreas and Eximbank officers. Tsaldaris’ main purpose appeared to be to exact firm commitment that US would extend immediate financial assistance to Greece. Tsaldaris was vague on exact sum desired but mentioned 50 to 60 million dollars for urgent needs during first 3 months 1947.82 Also suggested that perhaps with US Govt guarantee some banking firm could “discount” reparations in order to advance ready cash to Greece at this time. Further suggested possibility that Eximbank could advance cash against proposed grant to be asked of Congress soon after it convenes. He also indicated that Greece “accepted” report of Ecosoc Subcommittee on Devastated Areas which mentions 5–year program of reconstruction and development totaling 1,246,000,000 dollars and requested US Govt to make this sum available by most appropriate means. In short, although several matters such as territorial claims, immigration quotas and the Greek desire to obtain Saturnia and Vulcania were mentioned, Tsaldaris emphasized his [Page 287] belief that US must offer immediate financial assistance to Greece if that country is to maintain its territorial and political integrity and not fall prey to “anarchists”.
Tsaldaris was clearly given to understand that US is unsympathetic to Greek insistence on territorial adjustments. In economic field importance of Porter mission was stressed and Tsaldaris was informed that we intend to request funds for relief to Greece from Congress and will discuss with Eximbank possibility small additional loan in near future to bridge gap. No assurance was given that such loan could actually be made.
Although US officials are friendly to Greece and are exploring all possible means of effective aid to Greek economy, they were unfavorably impressed by Tsaldaris’ lack of precision and by complete absence of any well-prepared data to substantiate exaggerated demands.
It would be unfortunate if Tsaldaris should attempt to distort US promises to “explore urgently possibilities of immediate as well as long-term assistance” to make it appear that he personally has been able to obtain commitments of a nature which US had been heretofore unwilling to make and to exploit his success in order to perpetuate his uneasy position in Greek political world.
Although US recognizes importance to its own security as well as to international security of maintenance of Greek independence and territorial integrity, our views on desirable character and policies of Greek Govt have not changed since you were instructed to transmit them to King and political leaders at time of King’s return. In short, it appears to us that in this critical time, when existence of Greece is threatened by unfriendly neighbors as well as civil strife and economic collapse, all loyal political parties and leaders should unite to form most broadly based govt possible dedicated to moderation, all feasible conciliation to loyal opposition and sincere determination to institute economic and fiscal reforms even though drastic in their nature.
Recent SC action in establishing Investigating Commission may appear to Greece as complete vindication of Greek complaint and policies of Greek Govt. However, it is our belief that Commission is obligated to ascertain pertinent facts and causes relating to “border violations” no matter which side of frontier is involved and that long-range aim of final SC action should be an attempt to achieve stable conditions in that part of world. We are not sure that Greek Govt has been above reproach in manner of instituting and applying recent security measures. Imminence of arrival of SC Commission with consequent focusing of world opinion on conditions in Greece should make leaders of all Greek political parties realize that now is the time to subordinate unessential differences and cooperate in policies that will remove, [Page 288] as far as possible, legitimate criticism of Greek Govt and causes of internal dissension.
You are authorized in your discretion to express foregoing views to King and responsible Greek leaders both in and out of present Govt.83
Sent Athens 8; rptd London 41.
- From December 19 to 23.↩
- In a letter to the Secretary of State, dated December 23, 1946, the Greek Prime Minister estimated the deficit in his country’s foreign exchange for the immediate future at about $15,000,000 a month and requested American assistance in meeting it (868.51/12–2346).↩
- For the Department’s statement on the conversations with the Greek Prime Minister, released to the press December 23, see Department of State Bulletin, January 5, 1947, p. 29.↩