868.20/4–1147: Telegram
The Acting Secretary of State to the Secretary of State, at Moscow
us urgent
904. Moskco 57. For the Secretary from Acheson. Reurtel 1318.1 Amendment to Greece–Turkey bill reported by Senate Committee and agreed to by me provides as condition precedent to receipt of any assistance under Act that government requesting it shall agree “not to use any part of the proceeds of any loan, credit, grant or other form of financial aid rendered pursuant to this Act for the making of any payment on account of the principal or interest on any loan made to such government by any foreign government.”
House Committee has under consideration broadening this provision. In opposing such action as unnecessary I stated to Committee categorically that we had no intention of using any part of funds to pay costs of British troops or missions in either country. House Committee is also considering over our objection limitation of US military personnel in each country to 100.
British proposal to be repaid in dollars from our loan would produce storm of protest here and undoubtedly an amendment specifically [Page 144] prohibiting it, if it is not already covered by above Senate amendment as may be case.
British do not pay dollars for upkeep of mission and the sterling costs of approximately 1,000 officers and men, which would continue even if they moved out of Greece, are too trifling to warrant serious embarrassment to us which such picayune haggling would cause. (See ourtel 619, March 21). When British Ambassador made similar suggestion last month I told him very plainly that direct or indirect payment by US for British troops or missions in Greece was quite impossible.
We see no reason why Greek Government should not, if it is not already doing so, provide food and quarters for British mission.
I am sure this proposal does not come from Bevin but from Treasury. I am repeating your 1318 and this message to London asking Douglas, unless he hears from you to contrary by Monday to make vigorous attempt to get Treasury withdraw suggestion.