868.00/5–3147

Memorandum by the Acting Secretary of State to President Truman

secret

I am attaching for your consideration a proposed basic agreement1 between the United States and Greece setting forth the general terms and conditions which shall govern the furnishing of assistance to Greece by the United States.

I am also attaching a draft note1 which we would propose that the Greek Government send to this Government, in advance of the conclusion of the basic agreement, outlining the plans of the Greek Government which will lay a basis for American assistance in recovery and reconstruction in Greece. This note is incorporated by reference in an appropriate manner in the proposed basic agreement. Both the agreement and the note will be registered with the United Nations.

Under this proposed procedure, the initiative and responsibility for domestic reconstruction measures in Greece lie with the Greek Government where they belong, while at the same time the United [Page 176] States Government exercises full control over the expenditure of United States funds and over Greek Government programs intimately affecting the success of the American assistance program.

If you approve the draft agreement and note, Secretary Marshall intends to send them immediately to Athens for discussion and negotiation with the Greek Government.2

Dean Acheson
  1. The draft agreement and draft note were dated May 22; see telegrams 730 and 731, May 31, to Athens, pp. 185, 182.
  2. The draft agreement and draft note were dated May 22; see telegrams 730 and 731, May 31, to Athens, pp. 185, 182.
  3. President Truman gave his approval in a marginal notation on May 31.