868.20/10–2448: Telegram
The Ambassador in Greece (Grady) to the Secretary of State
Amag 1614. 1. My comments (reference Gama 13072) on Greek Govt, note of September 30 are contained in Amag 16053 and my recommendations in Amag 1613.4
2. Concerning need of replacements for GNA, Van Fleet recommended in his L–1908 an increase of 10,000 spaces. As Vitsi campaign developed and ineffectiveness of older soldiers became more apparent, Van Fleet’s viewpoint hardened as reported in his L–2000. In his L–2–2005 he increased his former estimate to 20,000 spaces.
[Page 171]Because of over-all effect upon Greek economy, I have been reluctant to approve his recommendation and I do so now only on basis my understanding that dollar fund situation at present is adequate, as based upon 150 million dollar 1948 appropriation, to meet foreseeable needs present military aid program including contemplated increase of 20,000 spaces. Need for further allotment from 25 million dollars now unallotted will be studied in light developments of campaign and reported before December 31. Increased drachmae cost arising from contemplated army increase will create difficult but not insoluble problem, although it may be necessary to increase ECA consumer goods program to offset budgetary impact. As mentioned Amag 1605 additional budget problem will be created by failure to reduce army after December 1 as previously contemplated. In this connection I wish to point out that army has unauthorized over-strength of more than 13,000 men which Van Fleet and I are insisting be eliminated. Recommended over-all increase therefore is less than 7,000 spaces, although cost will be higher than this number indicates because of financial obligations of Greek Government towards released men.
3. Van Fleet in his paragraph 3 (c) of letter dated October 7 to me transmitted to Department by Amag despatch 261 of October 13,5 has recommended against suggested 24–month military turnover as being costly and inefficient. I support him in his recommendation.