868.00/11–2947: Telegram
The Chargé in Greece (Keeley) to the Secretary of State
2060. Tsaldaris asked Griswold and me call on him November 25. He began conversation by expressing deep concern over whole situation [Page 425] in Greece, Said it strikes him that things are moving much too slowly; by the time recommendations are made and acted upon measures too often prove inadequate. Speaking frankly he said many actions seem to be taken without full knowledge their implications or ramifications. Cited this connection question balancing of budget which while necessary must be done with due regard inter-relationship of various factors. Also expressed concern over limited powers Griswold saying that when they first met in Washington and he learned that Griswold would be made “High Commissioner” with full powers over aid program he was at first concerned as a Greek that any one man should be given such authority in his country but after thinking matter over had reached conclusion that only thus could situation be saved. In practice, however, it seemed this has not been case and not only has Griswold only limited authority make decisions but his recommendations are not promptly approved by Washington. Gave as example inability of AMAG after two weeks effort to obtain decision re exchange of napoleons for sovereigns. Further example delay was long time consumed in obtaining approval recommendation give operational advice Greek Army and still further delay in implementation decision.
[Here follows further discussion of the gold situation.]
Turning to military situation as example of how interrelated and complicated things in Greece can be, Foreign Minister said that guerrillas have cut communications between Athens, Patras and Yanina and unless order could promptly be restored in Pelloponnesus effect would be widespread and might be disastrous. Pelloponnesus is “sacred homeland” of Greece where war of independence began and was won, whence have always come Greece’s best fighters. If these fighters in north learn that their homeland in flames their morale will be shattered and will to fight destroyed.
Foreign Minister then turned to larger aspect Greek problem and speaking, he said, not as Greek or Cabinet member but as world citizen, declared that in his opinion US stake in Greece is much bigger than Greece itself and entails future of western civilization. Neither US nor Greece can afford to fail. It behooves us therefore to act energetically and with greatest speed to meet actualities of situation. It appeared he said that aid to Greece has been apportioned and frozen, so much for military, relief, reconstruction, etc., whereas realities of situation called for more flexibility and prompt access to additional funds if required. Conditions have worsened in Greece since original aid voted due to deteriorating military situation, bad wheat crop, growing refugee problem and higher prices of commodities in world market. Griswold, he thought, should have fund of ten million or so [Page 426] dollars to use where most needed without protracted negotiations and discussion between him and Washington, and more funds must be found to meet needs unforeseen when aid voted. Again saying he was not thinking of Greece alone, he begged us to act before it is too late.
Griswold explained to Foreign Minister the legal and technical limitations involved and stated that unless Congress should vote more funds situation here must be faced with funds available. Everyone, he said, is doing his best to face up to complicated and difficult problems and will continue to do so.
In terminating, Tsaldaris repeated that everything points to necessity for speed if situation is to be met squarely. Things in his opinion are moving much too slowly and if present Govt cannot succeed in solving urgent problems it will have to give way with all consequences that entails.
While it is patent that Greeks themselves have failed produce kind of speed they ask of US, Embassy feels Tsaldaris has pointed up desirability of facing realistically situation as it has developed and will develop and overriding necessity of reaching and implementing decision as quickly as humanly possible. Case in point is question exchange of napoleons for sovereigns discussed in Amag 542, November 26, so as to have at least this amount on hand in form that it could be immediately used in an emergency. Embassy strongly endorses views expressed that telegram and urges immediate approval. Also, for US to guarantee Federal Reserve loan so as to release its gold cover and exchange latter for sovereigns might be cheap way of forestalling runaway inflation here with all that would be entailed detrimental our own national interests. Time is of the essence and, as Griswold states in reftel, we must buy time until army begins really to march.
As immediate practical measures toward speeding up operations, Embassy recommends that Griswold be given broader powers to make on spot decisions, that matters necessarily referred to Washington be treated more urgently, and that all problems be viewed by Department in their proper relationships. It is not, for example, helpful and seems wholly unrealistic to say that provision for unforeseen refugee problem must come out of Greek budget (Department memo dated October 28 of conversation with Tsaldaris) when AMAG fiscal advisers say that nothing more can come out of budget without immediate danger of inflation. Such problems must be coordinated.
Embassy has frequently pointed out that our thinking must transcend limited circumstances of original aid program if we are not again to suffer consequences of “too little and too late.” This has been recognized in military field by decision give military advice to Greek Army even though general situation has deteriorated during two months it [Page 427] took to reach decision and will probably deteriorate still further before decision can be implemented.
So that all the fine work that has already been done and funds already available may yield maximum results, it is Embassy’s considered opinion that all elements situation should be immediately reviewed and coordinated and all necessary steps promptly taken.
This telegram shown to Griswold who concurs.