868.20/9–2948: Telegram
The Ambassador in Athens (Grady) to the Secretary of State
Amag 1581. I have delayed replying to Gama 12741 requesting amplification of Embassy’s 1700,2 first, to permit final section of my comments on Gama 1246,3 sent as Toeca 1744 to be received and studied and, secondly, to permit Colonel Walker who was sent to Athens by Department of Army especially on this problem to reach some conclusions. General Van Fleet yesterday handed Colonel Walker written reply to his request for specific information. Walker is scheduled to return to Washington today.
As Colonel Walker’s mission was to determine (1) the future reductions of Greek armed forces to a strength that can be supported by Greek economy, (2) the monetary savings resulting from the reduction, (3) the possibility of the release of the 50 million dollars held in abeyance, and as Colonel Walker carries back a written report which will reach Department as soon as this telegram I do not propose to comment extensively here, believing that points Department had in mind in writing Gama 1274 can best be answered in conference with Walker.
I do wish to draw Department’s attention to General Van Fleet’s present plans for Greek armed forces. In Walker memorandum he [Page 153] states that no reduction is contemplated in air force, navy or civil police. No reduction in GNA strength of 132,000 is considered possible prior to April 1 at which time the internal situation may make possible a cut of 12,000. Based upon an improved military situation in Greece by December 1 the NDC can be reduced by 20,000 but further reduction cannot be expected prior April 1. With improved security an additional cut of 25,000 may be possible then. A reduction in the gendarmerie to 22,000 is expected by December 1. He recommends that the entire category C personnel be discontinued completely as a military project by December 1.
To maintain, including rations, armed forces of this size through June 30 General Van Fleet recommends that 15 million of the 50 million held in abeyance be released to Greece and that 10 million be held in reserve for Greece or Turkey, decision to be made on January 1 next. He suggests the remaining 25 million be released immediately to Turkey. My economic advisers commenting upon the ability of the Greek economy to absorb a greater part of armed forces cost, thus enabling the future reduction of some of the 10 million dollars held in reserve, state that Greek economy cannot assume any additional military expenditure this fiscal year.
In view of military situation now existing in Greece, I feel that I must adopt the recommendation of my chief military adviser particularly as his calculations are based upon Department’s policy of assisting Greek armed forces only to eliminate guerrilla forces as a security menace. We have learned, however, that elimination of guerrilla control from one border pocket, such as Grammos, permits their reinforcement in other pockets and, consequently, any single GNA victory must be viewed with restrained optimism. Since the overall picture has worsened rather than improved since the Grammos victory, it is not realistic to establish a program for action this calendar year of a general phased reduction in Greek armed forces.
In reference to second numbered paragraph of Amag 1508,5 I wish to report that I have reviewed a statement from General Matheny on combat effectiveness of RHAF and General Van Fleet’s comments thereon directing that savings be made wherever possible. I have approved General Van Fleet’s instructions to General Matheny not to order any C–47’s and to reduce the order of AT–6’s from 30 to 23. Full routine report upon this will be submitted through JUSMAPG.