868.00/7–1847: Telegram
Governor Dwight P. Griswold to the Secretary of State
1154. AMAG 7. To McGhee from Griswold. 1. Mission is beginning work on complex problem of formulating proposals regarding effective controls exports and imports and centralization responsibility for this work in agency such as foreign trade administration recommended by Porter. It will, however, be some time before any new system can be put into operation. Meanwhile, arrangements will be made for clearance by AMAG before use by Greek Government of all foreign exchange regardless of source.
2. Emergency problem is that Greek Government supply of dollars exhausted with limited possibilities immediate dollar revenue, while there are pressing import requirements which must be met from aid program before new import control system fully in operation. Regarding items to be supplied for Greek Government account under aid program such as wheat, milk. POL.1 etc., I intend telegraph to you specific recommendations for procurement. However, certain items such as relief supplies, industrial spare parts, some raw materials, etc., obviously can best be procured through normal trade channels and in many cases are already covered by import applications with pro forma invoices. To meet immediate requirements for latter purpose, recommend following interim courses: There should be advanced to Greek Government and deposited Chase National Bank, New York, [Page 243] to special account of Bank of Greece designated as “Bank of Greece special account AMAG” the sum of $5,000,000. These funds, to be taken from the program quota for consumer goods, would be available for urgent import requirements and only with specific approval by AMAG in each instance of expenditure. Formal agreement with Greek Government and Bank of Greece covering use and control of account would be negotiated. Full accounting for funds would be maintained jointly by Bank of Greece and AMAG.
3. Important we act quickly. Would appreciate your telegraphing immediately whether proposal agreeable and how soon deposit can be made. Details will then be worked out with Greek Government.2
- Petroleum, oil, lubricants.↩
- In telegram 1095, Gama No. 11, July 21, to Athens, the Department informed Governor Griswold that “Proposed interim procedure for financing Greek purchases acceptable to Department. Allocation of five million dollars from Greek Aid Funds being made immediately. Funds will be available for deposit Bank of Greece special account AMAG in Chase National Bank within four days. Will hold actual deposit pending final confirmation from you completion your arrangements Greek authorities.” (868.00/7–2147)↩