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

868:00/6–2848

Agreement Between the Department of State and the Economic Cooperation Administration

June 24, 1948

Agreement Reached in Meeting Held June 24, 1948 Between Messrs. Robert A. Lovett, Paul G. Hoffman, Eric H. Biddle¹ and George C. McGhee With Respect to the Relationship Between the Economic Cooperation Administration and the Department of State As They Affect the American Mission for Aid to Greece and Its Successor Missions in Greece

1. The primary consideration in all decisions on administrative relationship between the Economic Cooperation Administration and the Department of State affecting the American Mission for Aid to. Greece and its successor missions will be based on achievement of maximum coordination of the United States economic, military and political objectives in Greece and on minimizing any possibility for duplication of effort, ambiguity of responsibility and personal friction among the various representatives of the United States government in Greece.

2. The Economic Cooperation Administration, in the light of its responsibilities under the Foreign Assistance Act of 1948, is establishing a special ECA Mission in Greece under a Chief of Mission responsible to the ECA Administrator. Because of the peculiar aspects of the Greek situation arising in large measure out of the special responsibility assumed by this country toward Greece pursuant to Public Law 75, the ECA agrees that this Mission will, in addition to the usual functions performed in other ECA countries, such as observing, reporting and making recommendations to ECA with respect to assistance requests, assume an advisory status vis-à-vis the Greek government in the area of economic assistance and recovery coming within the scope of the ECA Mission’s activities. The ECA desires, however, that all civil advisory functions not directly related to the economic recovery program will, where feasible, be placed under the jurisdiction of the Chief of the American Mission for Aid to Greece, who will, upon the creation of the ECA Special Mission, assume remaining responsibilities under Public Law 75 as well as his functions as United States Ambassador to Greece.

3. The Department of State, while recognizing that the Foreign Assistance Act of 1948 clearly assigns primary responsibility to the Economic Cooperation Administration for all economic recovery activities in Greece, including economic recovery advisory activities, agrees at the request of the Administrator of ECA that the Chief of the American Mission for Aid to Greece will assume responsibility for certain civil advisory functions which are not directly related to the economic recovery effort.

4. The Department and the Administration agree that the ECA program in Greece will be administered through a Special ECA Mission based initially on those members of the civil portion of the present American Mission for Aid to Greece whom Governor Griswold has committed or will commit to retain through the period March 31, 1949, with such later adjustments as the ECA representative will make on his arrival in Greece, or as will be agreed to between the ECA representative and the Chief of AMAG pursuant to the agreement stated in Paragraphs 2 and 3 above. Until the arrival of the ECA representative, Governor Griswold, or his Deputy or whoever else is designated by ECA, shall serve as acting ECA representative. The United States Ambassador to Greece, Dr. Henry Grady, who will also serve as Chief of the American Mission for Aid to Greece, will upon assumption of his responsibilities as Ambassador, also assume jurisdiction over the military aspects of the present AMAG program and such civil functions now under AMAG as will be mutually agreed upon between the Department and the Administration in accordance with the principles stated above.

5. Representatives of the Department of State, ECA and Mr. Harriman’s¹ office in Paris will proceed to Greece and will, after discussions with AMAG, recommend to the Department and the Administration allocation of the civil responsibilities of the present American Mission for Aid to Greece as between the ECA Special Mission and the Public Law 75 Mission, as well as methods of coordination in Greece and between the ECA Paris and Washington offices and the Department of State and proper channels of communication.

6. The Department will, upon request of the Administration, perform the Washington “backstop” function for such of the civil advisory activities in Greece arising out of the activities of the ECA Special Mission and the Public Law 75 Mission as are not directly related to the economic recovery program, coordinating closely with the “backstop” to be set up in the ECA for coordinating the remainder of the civil program in Greece.²

7. The Administration agrees to provide funds to the Department for personnel in the Public Law 75 Mission engaged in civil advisory functions pursuant to this agreement which would not normally be conducted by the Embassy or the military mission, and for personnel in the Department of State “backstop” organization which would not be required by the Department for the “backstopping” of the military program and the Embassy in Greece.

Approved:

Robert A. Lovett

Under Secretary of the Department of State

Paul G. Hoffman

Administrator for Economic Cooperation

1. Special Assistant for Overseas Administration of the Economic Cooperation Administration.
1. W. Averell Harriman, United States Special Representative in Europe under the Foreign Assistance Act of 1948.
2. In a letter of August 16 to Mr. Hoffman, Mr. Lovett stated: “Since Mr. John Nuveen has now become ECA representative in Greece and Dr. Grady the Ambassador and Chief of the American Mission for Aid to Greece, and in view of the further recent consultations between ECA and the Department, it has been agreed that as of August 6 the ECA should assume in Washington those ‘back-stopping’ responsibilities arising out of Public Law 472. It is recognized, however, that this entails a period of transition which it has been agreed in recent meetings between ECA and the Department may last until about September 15.” (868.00/6–2248)