Foreign Relations of the United States, 1947, The Near East and Africa, Volume V

868.00/7–1247

The Secretary of State to Governor Dwight P. Griswold, at Washington

confidential

Washington, July 12, 1947.

My Dear Mr. Griswold: 1. You have been duly authorized to direct, under the guidance and instructions of the Secretary of State, United States activities within Greece in furnishing assistance to Greece under the Act to Provide for Assistance to Greece and Turkey, approved May 22, 1947, Public Law 75—80th Congress. In the performance of this function, you are authorized to exercise any power or authority conferred upon the Secretary of State by Executive Order No. 9857, dated May 22, 1947, which you deem necessary and proper to the effective carrying out of the provisions of the above Act and of the Agreement with the Government of Greece setting forth the general terms and conditions under which assistance is to be furnished.

2. You have on behalf of the United States supreme authority in Greece over all such assistance, both civilian and military. You will act as Chief of the American Mission for Aid to Greece, the headquarters of which will be at Athens, and you will direct the performance by the Mission of all activities and functions which you deem necessary and proper to carry out the provisions of the Act of May 22, 1947, and the Agreement with the Government of Greece. These activities and functions include the following:

a. You will determine and supervise programs of American aid to Greece, including the terms and conditions upon which aid is furnished, and will furnish advisory and other assistance to the Government of Greece to carry out the purposes of the Act of May 22, 1947, the note of the Greek Government of June 15, 1947, and the basic Agreement with the Greek Government.

b. You will cooperate with the Greek Government in promptly developing, and in promoting the effective administration of recovery and reconstruction programs which provide for effective development and use of Greece’s own resources and of aid from the United States. Your approval will be required, in accordance with the note of the Greek Government of June 15, 1947, for expenditures of the Greek Government for activities which directly or indirectly involve the use of American aid and for the use of foreign exchange available to the Greek Government.

c. You will control all allotments of funds which the Secretary of State determines to be available for assistance to Greece under the Act, and will disburse any of such funds allotted to the Chief of Mission.

d. You will furnish full information to the peoples of the United States and Greece, consistent with the security of the two countries, concerning American assistance and the activities of the Mission and the Greek Government under the Agreement. This responsibility will include the making of arrangements with the Greek Government for observation and reporting by the press and radio of the United States, the publication of periodic reports by the Mission in Greece, and the preparation of basic material for inclusion in the reports of the President and the Secretary of State to the Congress.

e. You will observe performance by the Greek Government of its assurances in the Agreement and its note of June 15, 1947, including the implementation by administrative and legislative action of the recovery and reconstruction programs developed in cooperation with the Mission. You will suspend any or all assistance under circumstances in which you deem this to be required by the Act and you will report promptly any such suspension to the Secretary of State for final determination as to whether the Act requires withdrawal. Moreover, you are authorized to suspend any or all assistance and exercise any right of recapture to the extent you deem proper to carry out the objectives of the Mission.

3. You will report and be responsible to the Secretary of State and at all times keep him fully informed concerning all aspects of the Aid Program.

4. Subject to the general direction of the Field Administrator of the U.S. Foreign Relief Program, you will supervise and control United States’ relief supplies furnished to Greece under the Act Providing for Relief Assistance to the People of Countries Devastated by War, approved May 31, 1947, and the agreement with the Greek Government governing the furnishing of relief assistance. You will be responsible for integrating the relief assistance in Greece with the overall American aid program.

5. Your Mission will observe the use of any other financial, economic or material assistance furnished to Greece by the United States, either directly or indirectly through international organizations of which the United States is a member, and will advise and make recommendations to the Secretary of State concerning the proper coordination of such assistance with the American aid program. You will also consult with the Greek Government concerning its requests for and proper utilization of any such assistance.

6. As the representative of the Government of the United States in Greece on matters relating to assistance furnished under the Aid Agreement and the Relief Agreement, you will maintain such relations and enter into such contracts, arrangements and agreements as are within the scope of your authority and as you deem necessary and proper to the performance of the functions of the Mission.

7. Your Mission will operate as an entity separate from the American Embassy in Greece, but the two should work in close collaboration. The United States Ambassador, as the accredited diplomatic representative of the United States, will continue to be in charge of the conduct in Greece of overall relations with the Government of Greece and will continue to have primary responsibility for all aspects of those relations which are not directly related to the activities of the Mission. He will advise you on the diplomatic and political aspects of your activities, and you will seek his counsel on such matters. You will keep him informed of the progress of the work of the Mission and its relations with the Greek or other foreign authorities. It is not believed possible to draw up in advance a formal definition of the respective responsibilities and spheres of action of the Ambassador and yourself; it is expected that you and he will establish a close, mutually satisfactory relationship, keeping in mind that the common objective of both is the furtherance of the policies laid down by the President and the Secretary of State.

8. You will maintain close informal contact with the British authorities in Greece, but shall not, without the approval of the Secretary of State, enter into any formal agreement concerning the relationship of the British military missions in Greece to the American Mission. You may, however, conclude such operating arrangements and agreements with the British authorities as will facilitate the American aid program, for example, in relation to the procurement of supplies or the use of British facilities, installations, and personnel in Greece.

9. The several sections of the Mission, including the military and naval sections, will operate at all times as integral parts of the Mission under your direction. In their day-to-day work it is expected that it will be necessary for them to have direct relations with officials of the Greek Ministries concerned with their particular fields. You will instruct the members of the Mission to refrain from discussing with Greek or other foreign nationals questions of a political nature not directly connected with the work of the Mission, and the Mission will decline to act as a channel of communication between any foreign authority and the United States Government with regard to such matters.

10. You will be guided, in carrying out the foregoing instructions, by the following general political, economic and financial considerations:

a. You will act in accordance with such policies as were announced by the President in his message to the Congress on March 12, 1947, and as may be determined from time to time by the President or by the Secretary of State. The basic political objective of United States policy toward Greece in furnishing aid is to assure the survival of Greece as a fully independent, democratic nation. As a means to this end, the United States at the request of the Greek Government will assist Greece with the means presently estimated as necessary to restore internal order and in establishing as soon as possible a self-supporting economy by laying the foundation for reconstruction and recovery through the development and effective use of Greece’s own resources.

b. The policy of the United States with respect to the financial terms upon which assistance is to be furnished to Greece are set forth in the report of the Senate Foreign Relations Committee on the Bill for Assistance to Greece and Turkey, as follows:

“Assistance provided under this Bill for military purposes, being essential to our own security, and not in itself creating the wherewithal to repay, should be made as a clear grant. Financial assistance for current civilian consumption should also be a grant since such assistance would not directly produce capital assets. Repayment could be sought, however, when the direct effect of the financial aid is to create capital assets and the ability on the part of the receiving country to meet such obligations in foreign exchange. However, financial repayment obligations should not be established if there appears to be no reasonable prospect of repayment.”

You are authorized to inform the Greek Government at your discretion that this is the general policy which will be followed by the United States Government in this respect. You will be responsible for recommending to the Secretary of State the financial repayment obligations that should apply to aid to Greece, in accordance with this general policy. Such recommendations should be made from time to time, but not less frequently than quarterly, and may relate to aid to be provided in the future or to aid already extended. After final determination of the financial repayment obligations by the Secretary of State, you will be instructed to inform, or effect appropriate agreement with, the Greek Government.

c. The use of funds made available for assistance to Greece should be supervised in such a manner as to assure that every dollar will count toward making the people of Greece self-supporting and not toward the special benefit of any particular group or faction. Accordingly, you should take all practicable steps (1) to prevent the dissipation of American aid, whether through diversion before reaching Greece, through being siphoned out of Greece after arrival, or through misdirection into improper channels within Greece, and (2) to assure effective controls over the development and use of Greece’s own resources. Both types of measures are essential in order that the benefits of American aid will not be lost or offset through lack of controls or dissipation of Greek resources.

d. In keeping with the announced United States policy of strengthening the United Nations and other international organizations, you should give careful consideration to the use of their facilities in accomplishing the purposes of the Mission.

11. For your guidance there is also attached to these instructions a statement of suggested policies and programs in relation to the various aspects of the American aid program for Greece. You and your Mission will be expected to exercise your judgment fully with respect to changes in policies and programs as circumstances dictate, and to act on the basis of the fullest and most up-to-date information to which you and the Mission have access. You will, however, refer back to the Secretary of State for decision any questions specifically so indicated in the attached statement. You will also take into account the budget presentation made by the Department to the Congress in requesting an appropriation to carry Out the Act of May 22, 1947.

The statement of suggested policies and programs referred to includes the following subjects:

1. Reconstruction Program

2. Agricultural Rehabilitation Program

3. Industry and Mining Program

4. Import and Export Programs

5. Relief and Welfare Program

6. Public Health Program

7. Labor Program

8. Training Program

9. Military and Naval Programs

10. Finance Program

11. Public Administration Program

12. Public Relations Program

13. Mission Administration

14. Mission Controls

15. Use of United Nations and other International Organizations

16. Relationship of Mission to Political Problems

Additional statements¹ will be furnished to you subsequently on other subjects.

Faithfully yours,

[

G. C. Marshall

]

1. None printed.