868.20/6–848: Telegram

The Secretary of State to the American Mission for Aid to Greece

secret

Gama 1001. Congress has voted appropriation $225 millions under Title III of PL 472 (Amag 1081, June 8) instead $275 millions authorized Title III for military assistance to Greece and Turkey fiscal 1949.

Advise Greek Govt foregoing, with comment in effect as follows: In view reduced total appropriation Dept does not plan to specify in near future estimated total funds to be made available in fiscal 1949 out of $225 millions for either Greece or Turkey. US will endeavor meet essential requirements of both Greek and Turkish aid programs from funds available. Reduction in total appropriation does not imply any diminution US support present scale military operations against guerrillas. Procurement essential requirements such support will continue without interruption. Say also if question arises that Dept cannot at this time consider any question of supplemental appropriation. End comment for Greek Govt.

[Page 109]

Basis on which Congress reduced appropriation largely that guerrilla forces in Greece expected to be substantially defeated in calendar 1948 and reduced rate of expenditure should be possible second half fiscal 49 without hindering military effort or risking loss of benefits of victories won before that time. Request for further appropriation $50 millions fiscal 1949 therefore not foreclosed should Congressional assumption prove invalid. However, AMAG should assume that additional appropriation may not be requested and if requested may not be granted, although Turkish allocation may be called on for portion of cut in event circumstances of guerrilla war make it necessary. Dept notes with satisfaction your assurance Amag 1081 that you and Van Fleet will reduce US military aid expenditures and Greek expenditures for armed forces as rapidly and to maximum extent possible consistent protection American aid objectives. Dept is consulting with National Military Establishment on implications of reduced appropriation with respect to apportionment between Greece and Turkey and to problems of procurement and will shortly advise AMAG further and request comment on tentative conclusions reached here. As stated above for Greek Government, no intention exists to diminish support for present and planned scale of operation against guerrillas remainder calendar 1948 or for supply pipeline. Dept will advise further re text of appropriation Act, which not yet available, and other relevant matters.1

Marshall
  1. The Department sent a parallel telegram on June 23 to Ambassador Wilson directing him to convey to the Turkish Government information on the appropriation for the Greek-Turkish Aid Program (No. 319, Patsu 102, 867.00/6–2248).