868.20/3–3049: Telegram

The Ambassador in Greece (Grady) to the Secretary of State

secret

Amag 36. Request for extension military aid to Greece comes at moment when outlook for successful conclusion campaign against guerrillas most optimistic since inception of program. We have solid basis—built on effective military establishment, promising civilian govt highest morale since liberation—for hope that with continued American aid the guerrilla warfare can be reduced to police proportions within forseeable future. Continued success, however, depends upon continuation of adequate American aid. We are now getting good returns for money invested, and in order to move forward steadily it will be necessary that Congress show its confidence by appropriating sum requested. Failure to do so would have not only serious material effect but the instantaneous psychological effect might well nullify the successes which with great difficulty have been achieved thus far.

In following paragraphs I include some facts on present situation that may be useful in preparing presentation to Congress (ReDeptel 436, March 261).

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1. The military.

In early January military situation reached low ebb in series of sudden and successful bandit attacks against urban centers. In this black moment govt on January 21 gave General Papagos complete control over all armed forces. He informed Military Council of his plans to concentrate aggressive action in Peloponnesus in order to eliminate bandit bands from the area transferring bulk of his troops to central and northern Greece. At same time he said he planned to protect vital points throughout the rest of country. In such areas he ordered army to abandon their static defense concept. He relieved inefficient commanders. He took immediate and drastic action against all officers who failed to act aggressively. His strategy showed first results in highly successful defense of Florina in mid-February and recapture of Karpenisi. It proved itself in carrying through to successful conclusion operation to eliminate organized banditry from Peloponnesus. As a result Peloponnesus are today substantially cleared and reconstruction is going on with renewed vigor. At same time in central and northern Greece the army pursued bandit forces that had been responsible for January raids.

The General pushed vigorously army program of tactical training with result that Greek commanders generally began to appreciate value of this training, observing it made possible successful pursuit operations with minor losses. He listened carefully to advice from American and British officers. As a result of all this bandits have been badly beaten wherever they have shown fight. Bandit casualties for February were 3900 which is more than for any month of major operations during 1948, and in March 4700. Bandit effective strength today is about 19,000. With arrest of informers and civilian sympathizers, with splendid progress having been made in past 2 winter months, GNA at opening of spring is prepared to start its principal operations, which should carry the National Army to the northern frontiers, earlier and in a sounder position than was thought possible 3 months ago.

Any reduction in American support of Greek operation at this time would have disastrous effect upon spirit of army. The resulting loss of momentum of present military effort would neutralize all gains made this winter and necessarily prolong the struggle. This would mean a continuing demand for financial and military aid over a longer period of time. On the other hand, support now to amount requested is our best assurance that investment already made will be safeguarded. It will provide continuity of present offensive efforts and secure utilization of maximum benefits from American military aid.

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2. The government.

Effectiveness of conduct of military affairs by General Papagos has been enhanced by support accorded him and general military effort by broadened coalition govt, which took office January 20. This govt, which includes the New and Unionist Parties in addition to Liberals and Populists, was formed through normal parliamentary processes and received an overwhelming vote of confidence from Parliament. With vote of confidence Parliament adjourned for 4 months, leaving legislative power for vital questions in hands of Cabinet and its directing Greek force, Coordinating Council. The latter, which consists of Prime Minister, Deputy Prime Minister, and leaders of 4 participating political parties, has proved to be effective instrument in insuring coordinated governmental policy. While to a degree handicapped by certain defects common to its predecessors and its continuance potentially jeopardized by partisan pressures, present govt appears clearly to be best since inception American aid. Several of Ministries are headed by persons of technical ability and initiative and govt throughout has manifested spirit of enthusiastic cooperation with American mission.

In addition to notable successes on military front, progress is being made in implementation various economic programs to which govt has committed itself in 4-year recovery plan. It has in general cooperated with ECA mission in measures to maintain effective control govt expenditures and to devise additional means of revenues including new taxation of wealthy classes. Decentralization program, which is considered of highest priority in improving govt administration on national and local levels, is moving forward and first concrete steps have been taken. These include dismissal politically appointed monarchs and pending appointment of replacements on basis of merit; establishment of machinery for local elections which it is planned will be held in secure areas this summer; and amendment of suffrage provisions to broaden franchise of women. While possibility national elections remains questionable until further progress achieved in establishing security, prerequisite measures of revision of electoral rolls, suspended for past 2 years, has been renewed. But, most important, government success in military field and its earnest endeavors in economic and political matters have instilled increasing feeling of confidence among Greek people of all classes. In absence of adverse developments, this growing confidence should lead to increased effectiveness of government to deal with critical problems still facing Greece in economic, military and political fields.

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3. National morale.

The morale of Greeks has been mounting steadily in past 3 months because of number of factors: change in government in early January; appointment of Papagos as Commander-in-Chief; GNA military successes, particularly those in Peloponnese and at Florina; shifts in bandit leadership and confusion in Communist policy, and finally realization that bandit menace must be eliminated this year, as it may be last possibility to do so.

The national state of mind created from these factors provided the proper atmosphere for a national rally from March 20 to 25 which was intended to reflect the confidence of Greek people in ultimate success of their struggle and give a united popular support to the national efforts necessary to finish the task. The rally was a Greek affair, enthusiastically staged and competently executed by Greeks with participation of foreign allies. The pattern of celebration cut for Athens was followed in all important provincial towns and cities. Virtually all Greeks participated in the 5 day celebration. The final event of week came in a great rally in ancient stadium in Athens which was packed with an estimated crowd of 60,000 with an equally large number of people in adjoining streets and on nearby hills. According to government officials only once before in modern history has there been such an attendance at Athens stadium.2

The Greeks are a volatile people with a sharp sense of reality. They cannot be sustained for long on propaganda alone. Their morale can be sustained if military successes continue and if they are made to realize that needed social, political and economic reforms will come with restoration of security. They realize keenly the vulnerable geographic location of their country and, as a consequence, they feel strongly the need for American support at this critical hour. The financial support made available by Congress will indicate to them our belief in their faith in their own future. This support is vital for maintaining that high Greek national morale which is necessary to [Page 285] finish task of eliminating bandit menace and thereby giving Greece chance to recover economically from effects of World War II.

Grady
  1. Not printed; it explained that the Department was in the final stages of preparing the proposed Military Assistance Program, which included Greece, for presentation to Congress. Ambassador Grady was asked to cable four or five pages of commentary on the current Greek situation which might be included in the presentation to Congress. (868.20/3–2640)
  2. The “Work and Victory” manifestations in Greece, which concluded with the celebration of the 128th anniversary of the independence of Greece on March 25, appear to have been originally inspired and planned by Ambassador and particularly Mrs. Grady. President Truman, who was unable to accept King Paul’s invitation to visit Greece and attend these celebrations, named Ambassador Grady as his personal representative. On March 25, President Truman issued a statement to the Greek people reaffirming American support to Greece. For the text of the President’s statement, see Public Papers of the Presidents of the United States: Harry S. Truman, 1949 (Washington, Government Printing Office, 1964), p. 186. For the text of a statement issued to the press on March 23 by Secretary of State Acheson commending the “Work and Victory” celebrations, see Department of State Bulletin, April 3, 1949, p. 433.