868.00/1–1448: Telegram

The Chief of the American Mission for Aid to Greece (Griswold) to the Secretary of State


Amag 82. 1. Concur fully paramountcy restoration internal security. Mission has not and will not prejudice military success by insistence upon economic programs and reform measures that do not directly or indirectly support military effort.

2. Economic reforms and measures insisted upon by the mission, however, not only directly support but are indispensable to successful military campaign. In absence of such economic reforms and measures intensification of military campaign will impose excessive pressure on civilian economy with resultant virtual certainty of runaway inflation. Strongly doubt that civilian import program could be accelerated sufficiently, even if adequate dollar funds made available, to overcome absence of reforms and measures deemed essential by mission.

3. I believe and Livesay concurs possibility of Communist victory via military success bandits without invasion extremely unlikely as compared possibility victory resulting from economic breakdown and general popular rejection of present political and social structure. The strongest allies of the Communists at the moment are increasing prices, inflation and governmental inefficiency and malpractices of which the neglect of the refugees is a typical example.

4. I consequently do not interpret Gama 411 as requiring abandonment [Page 29] mission insistence upon economic and political reforms but as rather calling for even firmer insistence upon counter inflationary controls and other economic measures contributing to the military effort.

5. Believe further cutbacks beyond those given Amag 542 not possible.

  1. Dated January 12, p. 26.
  2. Dated January 10, 1948, not printed; but see footnote 5, Foreign Relations, 1947, vol. v, p. 479.