Foreign Relations of the United States, 1948, Eastern Europe; The Soviet Union, Volume IV

868.00/2–1648

Memorandum by the Coordinator for Aid to Greece and Turkey (McGhee) to the Under Secretary of State (Lovett)

secret

[Washington,] February 16, 1948.

Subject: Relationship between Greek-Turkish Aid Programs and ERP

Further discussion with interested Department officials has resulted in the following policy recommendations on the above subject, which supersede those contained in my memorandum of January 30th.¹

(1) After April 1, 1948 or upon exhaustion of present funds earmarked for economic purposes, full reliance be placed on ERP as source of funds for all economic assistance to Greece and Turkey including all Aid Mission administrative expenses in Greece covering the economic area, assuming ERP is authorized and has funds before that date. If ERP funds are not available reliance be placed on whatever interim arrangement is made for meeting deficits of other European countries.

(2) Requests for military assistance for Greece and Turkey for deficiency for fiscal 1948 and for fiscal 1949 be sought under P. L. 75 at the earliest opportunity.

(3) Concurrent with the expected resignation of Governor Griswold as Chief of the American Mission for Aid to Greece on June 30, 1948, the U.S. Ambassador of Greece at that time be appointed Chief of the Aid Mission under P.L. 75 and the military aid groups come under his jurisdiction.

(4) The Department seek at the same time to have the Ambassador to Greece be named ERP representative in Greece, reporting in such capacity to the ERP Administrator in Washington. It is believed worthwhile in attempting to achieve this objective that Greece be presented by the Department as a special case requiring closer coordination by the Ambassador than in any other ERP country.²

(5) The Ambassador to Greece be capable of exercising not only the functions of an Ambassador but those responsibilities now exercised by Governor Griswold which cannot be delegated to the ERP representative or the senior military representatives without sacrifice of effectiveness of the total aid program.

(6) The Ambassador to Greece be given a staff to service common ERP and P.L. 75 activities coming under his jurisdiction. P.L. 75 and ERP contribute to the expenses of this staff in proportion to the service these programs derive from it.

1. Not printed; but see footnote 1, p. 45.
2. Marginal notation by Mr. Lovett on February 17: “Talked with Douglas who says no exception should be asked now; matter is one for ECA and clearance then. L”