868.00/2–2547

Memorandum by the Chairman of the Special Committee To Study Assistance to Greece and Turkey (Henderson) to the Under Secretary of State (Acheson)

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Report of the Committee Appointed To Study Immediate Aid to Greece and Turkey

The attached document1 sets forth the findings of the committee appointed by you to study immediate aid to Greece and Turkey, especially the interpretation of the recent British notes on this matter and recommendations as to what our Government should do if this immediate situation is to be met successfully.

The committee recognizes, however, that this may be only part of a much broader problem arising for this country in consequence of Britain’s economic and political situation.

[Page 48]

It also recognizes the possibility that it may not be possible to organize action by this Government on a sufficient scale and in sufficient time to prevent a sweeping deterioration of the Greek situation with profound repercussions in other parts of the Near East and Europe.

For these reasons, it recommends that a small State–War–Navy committee be appointed at once to prepare at once an estimate:

A.
Of the broad foreign policy implications to this country of Britain’s position and of other responsibilities which this Government may be asked to assume in consequence thereof—in other words, to what extent this Greek-Turkish situation is something in itself and to what extent it is only part of a larger complex of problems which we would logically be compelled to accept as our responsibility if we accept the responsibility in this instance.
B.
Of the probable results of our failure to take prompt and effective action in the Greek-Turkish situation and possible similar situations; and
C.
Of the adjustments in this country’s political and military policy which would have to follow if the situation envisaged in “B” were to mature.2

Loy W. Henderson
[Annex 1]3

Analysis of the Proposals Contained in British Notes of February 244 Relating to Greece and Turkey (for Discussion Purposes Only)

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obligations or commitments which british propose that the united states undertake

1. With reference to Greece:

The British propose that as of April 1, 1947 the United States Government assume financial responsibilities hitherto borne by Britain with regard to Greece. The British estimate that during the last nine months of 1947 Greece will require between $240,000,000 and [Page 49] $280,000,000 from abroad for its civilian and military needs in addition to that already furnished by the British. Since the British Government is unable to spend more on Greece, it expresses the hope that the United States Government will find itself in a position to afford this assistance.

The note, with its enclosures,5 also points out that the conclusion is inescapable that for several years subsequent to 1947 Greece “will not have anything even remotely approaching minimum financial resources needed to preserve its integrity and independence as such”,6 and makes it clear that unless the United States continues after 1947 to give Greece financial aid and help in the form of military equipment, Greece can not survive as an independent country.

In this connection the note expresses the hope that “if a joint policy of effective and practical support for Greece is to be maintained, the United States Government will agree to bear as from the first of April 1947 the financial burden of which the major part has hitherto been borne by His Majesty’s Government”.

It is suggested in the note that the State Department and the United States Chiefs of Staff examine papers now in the possession of the British Joint Staff Mission in Washington which have full details of the present organization of the Greek armed forces and of the reorganization proposed by the British military authorities; and that, in addition, the various military questions relating to Greece should be given urgent consideration by the Combined Chiefs of Staff.

The note further suggests that if the United States Government should find itself able to offer economic aid to Greece, it would probably desire to send to Greece a United States economic mission. It would appear that the role of this United States economic mission would be to supervise the utilization of funds made available to the Greek Government and to give the Greeks advice in the field of economic reconstruction.

2. With regard to Turkey:

With regard to Turkey, the British Government takes the position that in order to bring the armed forces of Turkey into a reasonable state of preparedness a large measure of re-equipment and considerable training will be necessary. It indicates that the British Government is not prepared financially to re-equip the Turkish armed forces. The British Government, however, is prepared to look after the needs of the Navy and the air forces, provided satisfactory financial arrangements can be made (apparently by the United States), and to furnish [Page 50] to Turkey additional military, naval and air advisers amounting to some sixty officers for whom the Turkish Government has asked.

It is pointed out that if Turkey is to be able to carry out any plan of extensive military reorganization and also a plan of a kind of economic development which would strengthen the ability of the Turks to defend themselves, Turkey must obtain financial assistance from abroad. It is emphasized that the British Government, in the existing financial situation of Great Britain, cannot make further credits available to Turkey and that, therefore, Turkey must look either to the United States Government or some American lending agency, such as the Eximbank, or to the International Bank or the International Monetary Fund. The British Government makes it clear that it has come to the conclusion that economic and financial assistance from abroad should be given to Turkey. It does not, however, indicate how much financial assistance will be necessary. The specific suggestion is made that a study of the strategic and military position of Turkey should be made by the Combined Chiefs of Staff. The British ask whether the United States Government has any suggestions as to how a program of military reorganization that may be recommended by the Combined Chiefs of Staff should be financed.

discussion

The argument might be advanced that the British are not entirely sincere in presenting the proposals contained in these notes; that the world situation will compel them to continue to extend assistance to Turkey and Greece regardless of what we might or might not contribute; and that the notes have been presented with the idea of pushing the United States Government out in front in the Near East and of prevailing upon the United States to assume the financial and other economic burdens which otherwise must be borne primarily by Great Britain. It might also be suggested that Great Britain has already decided to change its basic policies towards the Soviet Union and is now planning, instead of continuing to try to resist Soviet pressure, to endeavor to come to terms with the Soviet Union on a basis involving respective spheres of influence in various parts of the world, including Europe and the Near East, and the conclusion of a close military alliance extending perhaps beyond the framework of the United Nations. Persons following this line of reasoning might further argue that the notes have been sent in the belief that the United States will refuse to bear what the British Government considers to be an appropriate share of the financial and economic burdens and that this refusal would justify the British Government, in the eyes [Page 51] of the British people and before the whole world, in making such a change of policy.

After examining carefully the notes in the light of the present international situation and of the economic conditions in Great Britain, we are inclined to believe that the British Government is really convinced that it is unable any longer to expend funds, supplies and manpower in the Near East in the future as it has in the past; that it hopes that the United States, realizing how important it is that the independence of Turkey and Greece be maintained, will undertake to relieve Great Britain of these financial responsibilities and that the two Governments will be able in cooperation to resist Soviet pressure in the Near East. We feel, however, that if the United States finds itself unable to render assistance to an extent which promises successfully to resist Soviet pressure, the British Government may well find that it will be compelled to approach the Soviet Government in an effort to work out some arrangement which would have the effect of at least slowing up the Russian advance in the Middle East and elsewhere. Such an arrangement would undoubtedly mean widespread concessions to Russia in one or several areas.

We do not believe that the British Government has any present plans to enter into an arrangement of this kind, particularly since the effect of it would be certain to weaken the authority of the United Nations, on which the British Government gives every indication of basing its foreign policy. Nevertheless, the possibility exists that if Great Britain finds that the United States is unwilling to finance and otherwise back up the avowed policies of the American Government it may come to the conclusion that it has no other course open to it than to seek a breathing spell by coming to terms with the Soviet Union.

In the event that we should refuse to assume the type of responsibility for Greece and Turkey which the British are asking us to undertake, a number of consequences are possible, among which might be mentioned the following:

(1)
Greece and Turkey, without financial and other aid from either the United States or Great Britain, may become Soviet puppets in the near future. Their loss to the western world would undoubtedly be followed by further Soviet territorial and other gains in Europe and in the Near and Middle East. The resulting chaos would be accompanied by an immediate weakening of the strategic and economic position of the whole western world, particularly of Great Britain, and the very security of the United States would be threatened.
(2)
The British Government might decide that, in order to avert the immediate Soviet conquest of Greece it must come to an arrangement with the Soviet Union, including a military alliance and the setting up of spheres of influence. Such an arrangement would greatly [Page 52] strengthen the Soviet Union, would weaken Great Britain and would tend to isolate the United States, The restoration of spheres of influence would furthermore undermine the foundations of the United Nations.

In our opinion, either of these two consequences would bring us closer to a third world war in which we would find ourselves in a much more disadvantageous position than that in which we are at present. In case an arrangement should be effected between Great Britain and the Soviet Union of the character referred to above, we might become eventually involved in a world conflict, possibly without the effective military support of Great Britain. We feel, therefore, that it would be in the interest of the United States for this Government to relieve the British Government of the major share of the financial burden which it has been bearing on behalf of Greece and Turkey. We realize, however, that grave difficulties are involved since certain responsible officials of the Administration and members of Congress, as well as large sections of the general public, are not as yet fully cognizant of the seriousness of the situation and would not like for the United States to expend large sums of money in the Near East or for it to undertake to play a leading role in that part of the world. It is not yet generally realized that the future of the Near East is no less important to the security and welfare of the United States than is that of the Far East and Europe.

An accompanying document sets forth the Department of State’s position and recommendations on this problem.7

[Annex 2]8

Position and Recommendations of the Department of State Regarding Immediate and Substantial Aid to Greece and Turkey

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1.
In view of the wording and timing of the memoranda handed by the British Ambassador to the Secretary of State on February 24 the Department of State regards their presentation as a clear indication that unless the United States is willing to shoulder at once major financial and economic responsibility and a portion of the military responsibility for Greece and to discuss with the British joint measures which should be taken for the military and economic strengthening of Turkey: [Page 53]
(a)
Britain will no longer be able to collaborate with us in joint efforts to hold the line in those countries in order to prevent a complete collapse which would lay these countries open to Russian domination.
(b)
In an effort to salvage something of her political positions she may consider herself compelled to pursue policies of her own with regard to these countries.
2.
In the light of Britain’s situation the Department considers this warning to be serious and founded in fact.
3.
The Department considers that this Government has only this choice: (a) either to accept the general responsibility implied in the British memoranda or (b) to face the consequences of a widespread collapse of resistance to Soviet pressure throughout the Near and Middle East and large parts of western Europe not yet under Soviet domination or the adverse consequences, from the standpoint of United States interests, of a possible new British deal with the Russians.
4.
For this reason the Department considers that this Government should accept the responsibilities in question and should do its best to discharge them in such a way as to maintain confidence in the United States and in their own ability to resist Soviet pressure.
5.
The Department considers, however, that before accepting such responsibilities, this Government should obtain satisfactory assurances from the British that we shall have their continued loyal cooperation in our joint efforts to prevent further extension of Soviet power at the expense of the independence of other peoples.
6.
With respect to Turkey, the Department notes that the only specific British proposal thus far is for discussion in the Combined Chiefs of Staff of the strategic and military position of Turkey. The Department recommends that we agree to the immediate undertaking of such discussions and that if as the result of them the Departments of State, War and Navy find that certain assistance in the form of military supplies is important to the maintenance of Turkish independence, this Government endeavor to furnish an appropriate share.
The British also point out the need for further economic assistance to Turkey. The Department is giving further consideration to this question. It recommends at this time, however, that if in the light of the studies of this Government and after consultation with Great Britain and Turkey the American Government should come to the conclusion that economic and particularly financial assistance to Turkey from abroad is important to the maintenance of Turkish independence, the United States Government endeavor so far as possible to furnish an appropriate share of such assistance under stipulated conditions assuring its most effective utilization.
7.
With respect to Greece, the Department views the problem as falling into two parts, military and economic, which will require separate [Page 54] consideration and treatment. The Department’s tentative views on these points are as follows:
(a)
Military
The Department recommends that the United States Joint Chiefs immediately enter into conversations in the Combined Chiefs of Staff, as suggested in paragraph 9 of the British memorandum, with regard to the various military questions involved, and that if as a result of these conversations the Departments of State, War, and Navy should come to the conclusion that Greece must have continued assistance from abroad in the form of military supplies if it is to maintain its independence and restore domestic tranquility, the United States Government so far as it is able furnish an appropriate share of such supplies.
(b)
Economic
It is the view of the Department that the charges upon this Government involved in the assumption of military responsibility in Greece may continue indefinitely unless economic reconstruction in Greece is assured. The need for external assistance is unquestioned, though its exact magnitude cannot now be specified except to assert that such need is considerable. The British estimates as to the total external assistance which will be required to support both military and civilian programs need to be checked.
If this Government is to provide immediate financial assistance to Greece, U.S. interests can be adequately served only by establishing immediately the controls necessary to assure the effective utilization of such assistance. The Greek Government cannot itself provide these controls in the near future.
Nor is it possible for the Greek Government, as now organized and administered, to undertake by itself the detailed and systematic program of restoration required to make the Greek economy self-supporting within the near future. This consideration seems to the Department to call for the establishment of an American Administrative Organization to undertake Greek rehabilitation. Such an Organization should have wide powers over Greek economic life. The establishment and operation of such an Organization would call for a considerable additional outlay in American funds and in American personnel of the highest competence and personal integrity. The Department would expect that such an Organization would be terminated as soon as its services were no longer required.
8.
The Department considers that the program set forth in paragraphs 6 and 7, if put into effect promptly and in its entirety, offers a reasonable chance of success. Half-way measures will not suffice and should not be attempted. They would result merely in the waste of American money and manpower.
9.
The Department recommends that the above program, if agreed to by the Secretaries of War and Navy, be submitted immediately by the three Secretaries to the President for his approval.
10.
If the President’s approval is forthcoming, the Department considers that the following further steps should then be taken: [Page 55]
(a)
An appropriate reply be made to the British Government and the specific assurances mentioned above be sought, and this Government at once propose top secret conversations at a high level in regard to the whole international situation with a view to ascertaining British capabilities and intentions.
(b)
The Secretary of the Treasury, the Secretary of Commerce, and various other members of the Cabinet be informed of this decision and the Secretary of the Treasury be invited to arrange for Treasury participation in any future discussions bearing on financial assistance. Steps be taken by the Administration to obtain the wholehearted support of all other interested executive agencies of this Government in executing the program outlined.
(c)
Every effort be made at the highest governmental level to find means, without waiting for legislation, to alleviate the present Greek financial situation.
(d)
That steps be taken to see that the Greek Government requests at once in a formal manner the assistance of this Government in the rehabilitation of its economic life.
(e)
The problem be discussed privately and frankly by the leaders of the administration with appropriate members of the Congress.
(f)
Legislation be drafted, in the light of these discussions with members of Congress and of the findings of the Combined Chiefs of Staff, and this legislation be submitted to Congress; such legislation might well include authorization for the President under certain conditions within prescribed limits to extend loans, credits, or grants to Greece and/or Turkey; also for the transfer to Greece or Turkey or both of military supplies not transferable under existing law; and any necessary authorization for the supply of personnel.
(g)
In the meantime measures be taken immediately to transfer to Greece such available military equipment and other supplies as the three Departments find are urgently needed by Greece and are transferable under existing legislation.
(h)
Measures be adopted to acquaint the American public with the situation and with the need for action along the proposed lines.
  1. Actually, there were two attached documents, both of which are printed infra.
  2. On a carbon copy of Mr. Henderson’s memorandum appears the following marginal notation in the handwriting of Mr. Jernegan: “This memorandum, with its attachments, was considered and approved in substance by a meeting of top officers of the Department presided over by Mr. Acheson on Feb. 25. The attachments were submitted to the Secretary on Feb. 26 and approved by him. Attachment B was considered and approved by the Secretaries of War and Navy at a meeting with Secretary Marshall on Feb. 26.”

    The editors are unable to find in Department of State files a record of the meeting of February 25; for the minutes of the meeting of the three Secretaries on February 26, see p. 56.

  3. This annex is tabbed “A”.
  4. The notes were dated February 21, pp. 32, 35.
  5. The British note had but a single enclosure.
  6. This quotation is taken from the enclosure to the British note.
  7. Infra.
  8. This annex is tabbed “B”.