868.00/11–2448
Memorandum by the Coordinator for Aid to Greece and Turkey (McGhee) to the Under Secretary of State (Lovett)
discussion
In Gama 1329 of November 9, 1948 and Patsu 116 of November 11, 1948,1 the Chiefs of the American Missions for Aid to Greece and [Page 193] Turkey, respectively, were requested to make recommendations as to requirements for FY 1950 on the basis of existing policies and in the light of background given in reftels.
Recommendation from Ambassador Wadsworth, as Chief of the American Mission for Aid to Turkey, was received in Ustap 142 of November 20, 1948,2 which largely concurs in recommendation made in Tusag 626 of November 18, 1948 received by the Department of the Army from General McBride as coordinator of the Turkish military missions. The overall amount recommended is $100 million, which is consistent with recommendations of the original Oliver Report3 and the amount requested last year (actually $110,000,000, including certain war reserves), and compares with the figure of $75 million dollars which was used for planning purposes in the present appropriation and which it is still hoped will be made available for the Turkish program.
Recommendations of Ambassador Grady as Chief of the American Mission for Aid to Greece are contained in Amag 1652 of November 22, 1948, which comments on report by General Van Fleet as Director of JUSMAPG, “Greece Military Assistance Program, Preliminary Budget Justification Fiscal Year 1950”, which was received by special courier on November 22nd. General Van Fleet recommends requirements totalling $450,514,480 under Plan A (as defined in War 92306), which assumes “maintenance of Greek military establishment on the basis of strength presently authorized” and $541,000,000 on the basis of Plan B, which assumes “maintenance of Greek military establishment on any other basis which you deem essential to accomplishment of US military objectives in Greece”, including among others certain factors enumerated in War 92306.
Ambassador Grady in his comments (Amag 1652) essentially repudiates the “more men, more money and more equipment” approach to solution of the Greek problem and recommends for FY 1950 requirement of “not substantially larger than that of the present fiscal year, namely $150,000,000”. Ambassador Grady’s recommendation and accompanying explanation coincide closely with views of the Department and of the Armed Forces as revealed in meeting held on November 23rd, and with views of General Wedemeyer, who even in the face of General Van Fleet’s recommendation has set a $200 million dollar ceiling to the Greek aid request for FY 1950.
Although Ambassador Grady recommends an amount not substantially greater than $150 million dollars, it was the consensus of the meeting referred to, which was held prior to receipt of Ambassador [Page 194] Grady’s telegram, that the Bureau of the Budget be requested to earmark in the President’s printed budget $200 million dollars for Greek aid and that General Van Fleet be requested to submit requirements on this drastically reduced basis with statement as to the effects to be expected from this and any further reductions. It was the consensus of the meeting that there was justification for an increase over the current yearly expenditure rate to replace British vehicles and other equipment which has worn out or for which spare parts are not available, and for which no provision was made in the FY 1949 budget because of cut imposed by Congress. General Van Fleet has actually recommended for this purpose $92 million dollars.
The Turkish figure to be recommended to the Bureau of the Budget is of a rather arbitrary nature, the argument for it following that presented last year. It is recommended, however, that in view of the greatly increased strategic importance of Turkey to the US, the Department request the $100 million dollars recommended by Ambassador Wadsworth be embodied in the President’s printed budget.
recommendations
- 1.
- That the Department recommend to the Bureau of the Budget inclusion of $200 million for Greek military aid in the President’s printed budget for FY 1950, and that Ambassador Grady be advised of this decision and that he and General Van Fleet be requested to present an alternate program on this basis, with indication of effect of this and any further reductions. That Ambassador Grady and General Van Fleet be advised that the basis for future Greek aid shall be as given in the attached draft, which has been approved substantially in this form by General Bradley.
- 2.
- That the Department recommend to the Bureau of the Budget inclusion of $100 million for Turkish military aid in the President’s printed budget for FY 1950, and that Ambassador Wadsworth and General McBride be requested to present a final statement of requirements on this basis, together with indication of effect of any reductions.4
concurrences
GTI: Mr. Jernegan
NEA: Mr. Satterthwaite
[Page 195]attachments
Following cables:
- Patsu 116
- Ustap 142
- War 92385
- Tusag 626
- Gama 1329
- Amag 1652
- War 92306
Draft “Basis for Future US Military Aid to Greece”5
- Latter, identified also as telegram 542 to Ankara, not printed.↩
- Identified also as telegram 831 from Ankara, not printed.↩
- This refers to the “Report of the United States Ambassador concerning Assistance to Turkey”, July 15, 1947; see Foreign Relations, 1947, vol. v, p. 233.↩
- Marginal notations indicate that this memorandum was approved by the Secretary of State and the Under Secretary of State. Mr. McGhee, in a letter of November 24, advised Alvin J. Roseman of the Bureau of the Budget that it was the Department’s intention to submit a preliminary estimate of $300,000,000 for the Greek-Turkish aid program appropriation for 1950, $200,000,000 for Greece and $100,000,000 for Turkey (868.00/11–2448).↩
- None of the cables is found attached; but there are attached two drafts of “Basis for Future US Military Aid to Greece”. Both drafts contain marginal notations that they were superseded by the version used in telegram Gama 1341, December 6, p. 209.↩