868.20/8–2548: Telegram

The Ambassador in Athens (Grady) to the Secretary of State

secret

Amag 1508. At my request General Van Fleet has given me following memorandum re Gama 1246 August 16. He does not concur in statement in paragraph two below “air” prepared by General Matheny.1 As Chief JUSMAPG he believes that savings can be made in RHAF budget, namely that C–47’s should not be ordered and that AT–6’s on order should be cancelled.

  • “1. The present help [from] US [for] GNA and NDC will be required until 1 December 1948 in order to execute operations now planned in Peloponnese, Agrafa-Metsovon area and the larger concentrations along the northern border, of which Vitsi area is immediately urgent. Considerable troops will also be necessary to occupy Grammos, Vitsi, Kaimaktsalan, Belles and Boz-Dag areas to prevent same from being established as guerrilla bases this winter. If GNA is successful in eliminating the present remaining larger concentrations of Communist-led guerrillas by 1 December, a further recommendation at that time can be made to reduce NDC strength of 50,000 to approximately 30,000. Final strength of permanent Greek forces cannot be established before 1 April 1949. If there is no large internal threat next spring, the armed forces can be drastically reduced.
  • “2. No expansion or reduction in size of RHAF visualized at present. The increased cost of aircraft required to partially maintain present strength of RHAF will make little if any savings possible from amount now contemplated for air force. It is estimated that RHAF transport (C–4H) strength will be reduced automatically by 15 percent and the reconnaissance (AT–6) strength by 20 percent by 1 July 1949 because of limited purchases of these models occasioned by rising prices. Further recommendations regarding final peacetime strength of RHAF cannot be made before April 1949.
  • “3. Navy simultaneously with cut in Greek Army and anticipated reduced requirements for support thereof, a decrease in personnel can be recommended commencing 1 December 1948 from present total of 14,300 to 11,100. Consequent placing of ships in reserve or recall by British of ships now on loan will result in savings of present appropriation for logistic support. Further recommendations regarding final strength of permanent navy cannot be established before 1 April 1949.
  • “4. Earliest date on which Greek armed forces can be taken off US ration is 1 December 1948, and responsibility for their feeding thereafter placed on economy of Greece.
  • “5. Since early this month when Grammos battle appeared very favorable many military aid items have been cancelled, including both capital and maintenance equipment. A complete revised estimate of requirements is being studied and some additional savings will no doubt be effected.
  • “6. With savings thus made and Greek economy (with ECA assistance) providing rations effective 1 December, full $50 million cut can be absorbed by Greece. In other words, sum of $150 million is sufficient to maintain, including rations, present armed forces until 1 December 1948, and thereafter to 1 July 1949 an average strength of: Army including NDC—160,000; Navy—11,100; Air—6,500; gendarmerie—22,000; and civil police—8,000, not including rations.
  • “7. Any further reduction until next spring would have a demoralizing effect on Greek morale and would seriously jeopardize planned future operations. No encouragement should be given to Communist-led bandits by premature reduction of military strength. It is believed that too much optimism has been spread by Grammos battle. Many guerrillas of that area have withdrawn to Albania and elsewhere. In Greece there are still approximately 17,000 Communist-led guerrillas. There is still a considerable threat to the security of Greece.
  • “8. Director JUSMAPG has adhered strictly to the mission of elimination of the internal threat. He has repeatedly resisted recommendations both from Greek and British sources, on spending money for security against external threat or for a period longer than current appropriations will provide.”

My comment follows in separate telegram.

Grady
  1. Brig. Gen. William A. Matheny, head of the Air Force Group in JUSMAPG.