865.00/4–348: Telegram
The Acting Secretary of State to the Embassy in Greece
411. Pls see Sophoulis and Tsaldaris immediately to discuss with them concern which Dept feels re Ital political situation, and to seek their help in this situation. You shd say this concern is particularly keen because of repercussions which results Ital elections Apr 18 will have in Eastern Mediterranean and Western Europe. For this reason, this Govt has joined with UK and French Govts in recent steps to support and assist present Ital Govt. These steps have undoubtedly been effective, but struggle is still close, and we feel strongly all appropriate efforts must be continued in critical pre-election period. It is [Page 69] our belief, furthermore, that a Greek gesture of friendliness and generosity toward Italy would have most profound effect upon Ital people and contribute greatly to our common aim. As we see it, gesture would also contribute greatly to Greek plans for Mediterranean security and stability.
For these reasons, we wish to suggest that Greek Govt consider possibility of announcing at earliest possible date its desire to take lead in proposing general renunciation reparations from Italy. Announcement might explain that European economy has not developed as assumed at time of Ital treaty negotiations, that countries of Europe now face common economic crisis which can be resolved only by common economic recovery, which has now become possible through mutual cooperation to be undertaken through CEEC and ERP, and that in light these circumstances Greece is prepared, provided other recipient nations agree, join with them in waiving claims for reparations from Italy.
You shd point out that owing to present situation Ital economy, which like that of several other countries is dependent for survival upon US aid, this Govt has grave misgivings as to amount reparations which Italy can support, as well as eventual timing such reparations, since it would obviously defeat entire purpose present US policy if we were to permit US aid to Italy to be channeled off through reparations, which of necessity would include payments to USSR and Yugoslavia. You may also explain that we had considered several ways in which Ital reparations question might be raised at this time, and had reached decision that action by Greece would by far be most desirable and effective method, not only because of tremendous effect it would have in Italy, but also because this generous gesture by Greece would undoubtedly be received most enthusiastically by US public opinion and add immeasurably to good will of Amer people for Greece. You shd also inform Souphoulis and Tsaldaris secretly that we have some fear USSR may itself make some move toward renunciation Ital reparations in effort bolster political fortunes Ital Communist Party, and that in any event time is of essence if full effect of gesture is to be obtained.
In our opinion, this step offers unique opportunity (at, you may imply, no expense to Greece) to capture world sympathy for country, which in spite of its tremendous war losses and its equally grave postwar difficulties, is willing to take initiative in generosity toward neighbor at whose hands it has suffered but who is now striving to become part of democratic world resisting totalitarian pressures. It also provides singular opportunity for Greece assert European leadership in matter of common interest.
[Page 70]Dept fully cognizant of fact that Greek public may react violently to such announcement unless Greek political leaders have courage to take strong stand in leading rather than following public opinion, subordinating temporary national advantage to welfare of democratic world now threatened by totalitarian aggression. Any decision along lines suggested must be taken with wholehearted determination and presented to public as a positive contribution of a small but gallant nation, rather than a further sacrifice dictated by Great Powers. Credit due Greece for such generous gesture would largely be lost if move does not appear spontaneous and does not receive firm and enthusiastic support of whole Greek Govt. Greece gained world-wide admiration for her courage in defeating fascist Italy; and now has the opportunity of winning general sympathy for her courage in helping to maintain a democratic Italy.1
- Ambassador Dendramis, on April 7, left with Mr. Baxter a telegram of the previous day, presumably sent to him by the Greek Foreign Office, which set forth Greek objection to the United States proposal (Mr. Baxter’s memorandum,. 740.00119 EW/4–748). Chargé Rankin, on April 8, reported similar objection by Messrs. Sophoulis and Tsaldaris (telegram 600, 740.00119 EW/4–848).↩