The Ambassador in Greece ( Grady ) to the Secretary of State
776. For McGhee. According to afternoon papers Prime Minister told press this morning that he had just received telegram from Dendramis re conversation with McGhee April 4. Dendramis reports McGhee stated: (1) No suspension of aid to Greece contemplated; (2) US did not wish to interfere in Greek domestic affairs; (3) Grady letter to Venizelos1 dictated by great American interest in Greece.[Page 362]
Prime Minister concluded that Dendramis had received similar assurances from Jernegan and Cromie.
Prime Minister also announced today that Dendramis will retire from diplomatic service on May 9.
In view widespread speculation here re possible reduction or suspension of US aid to Greece, Embassy and ECA/G have informed recent inquirers that no projects now underway would be abandoned, but that no new projects would be approved by ECA until present confusion in political situation is corrected and Greek Government shows definite intention and capacity to proceed along lines outlined in my letter to Prime Minister.