868.00/7–347

Memorandum by the Coordinator for Aid to Greece and Turkey (McGhee)1 to the Under Secretary of State (Lovett)2

Subject: Greek and Turkish Aid Appropriations

Discussion:

Both from the attitude of members of the House Appropriations Committee during Hearings just completed and the press report attached,3 it appears that the House Appropriations Committee may either:

a.
Appropriate less money for the Greek-Turkish Aid Programs than the $400 million authorized in the enabling legislation, Public Law 75, or
b.
Appropriate a portion of the total, say half, with the remainder to be appropriated after another hearing at a later date.

Either course of action would, in the opinion of those working on the Aid Programs, completely prejudice the success of the Aid Missions for the following reasons:

a.
It is impossible to plan such programs for a lesser period than a year.
b.
It would be difficult to procure certain scarce items required for these programs unless orders can be placed well in advance.
c.
Greece, Turkey and the rest of the world would interpret such action as a retrenchment in our policy, leading to possible abandonment of the “so-called” Truman doctrine.

Governor Griswold in effect told the House Committee that he would under such circumstances resign from his position as Chief of Mission.

Mr. Rayburn, Minority Leader in the House, has been consulted with respect to possible action which might be taken to remedy the above situation and recommends the course of action given below:

Recommendations:

It is recommended that Secretary Marshall be requested to arrange a meeting with Speaker Martin, asking him to include Mr. Taber and [Page 211] any others whom Mr. Martin may wish, at which he will state in as forceful language as possible the consequences from the standpoint of United States foreign policy if the House Appropriations Committee recommended anything less than the full amount authorized in the Greek-Turkish Aid Act.

Concurrences:

Dwight P. Griswold; A–P; AA/L; NEA.

  1. George C. McGhee was designated Coordinator of Aid to Greece and Turkey on June 18; for the Department’s announcement of his appointment to this position, see Department of State Bulletin, June 29, 1947, p. 1303.
  2. Initialed by the Secretary of State.
  3. Clipping from the Washington Evening Star, dated July 3, 1947; the headline read “House Group Critical of Foreign Aid Plan, May Halve Its Funds”.