Conference files, lot 59 D 95, CF 98

Memorandum of Conversation, by Norbert L. Anschuetz of the United States Delegation at the Eighth Session of the North Atlantic Council
secret

Subject: Greek Reaction to NATO Council Meeting

Participants: Evanghelos Averoff, Greek Observer at Eighth Session of the North Atlantic Council
The Secretary of State
N. L. Anschuetz, Member U.S. Delegation

Mr. Averoff, Acting Foreign Minister of Greece, called at 11:30 a. m. November 29th.

He opened the conversation by saying that it was a privilege to have this opportunity to speak with the Secretary at a moment when the Secretary had so many important responsibilities in hand. He said he was pleased to be able to sit as an observer at the NATO Council meeting and that he felt that the NATO had great possibilities for Greece as an instrument for mutual cooperation in the defense of freedom. He added that at this moment, inasmuch as Greece herself possesses an army of 12 divisions, NATO can offer Greece very little in the way of security. However, in the future this situation should alter. Greece is bearing an extremely heavy military burden at this time. In the previous fiscal year Greece had devoted 48 per cent of her national budget to military expenditures, and during the current fiscal year 43 per cent of her budget was being devoted to military purposes. The Greek economy was beginning to bend somewhat under this strain. Mr. Averoff added that Greece did not wish to reduce the size of her military forces, but that Greece was determined to find ways of reducing the military budget by approximately 20 million dollars.

The Secretary replied that in many NATO countries the problem is to increase military expenditures, but in Greece the problem is to maintain them at their present level. The U.S. missions in Athens are fully prepared to cooperate with the Greek Government to eliminate any unnecessary military expenditures which might presently be in the budget.

Mr. Averoff said that notwithstanding the magnitude of American assistance to Greece, he felt that this had been an extremely productive investment on the part of the U.S. Had it not been for American assistance, Greece and Italy certainly would have been behind the iron curtain, and possibly France. History would record that the Marshall Plan was an act of high statesmanship. Greece is now a strong ally with 12 well-trained divisions with high morale and a determination to fight.

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The Secretary said that he hoped the Greek-Turkey Protocol to the North Atlantic Treaty would be promptly ratified by the U.S. Senate. He regretted that delay by the Danes after the Ottawa meeting of the NATO Council had prevented him from submitting the Greek-Turkey Protocol to the Senate for ratification before the Senate adjourned. No difficulty is anticipated, however, but there are certain formalities which must be observed. Mr. Averoff added that Mr. Eden had informed him that the British Government would probably ratify the Protocol within a week or ten days.

Mr. Averoff said that he wished the Secretary to know that the American Embassy in Athens was held in very high esteem. He said laughingly that Ambassador Peurifoy, with his open, friendly manner, had achieved a popularity which was almost dangerous. Mr. Averoff said that his government and he, personally, would be very happy to have the Secretary visit Athens. The Secretary recalled that General Marshall had visited Athens when he was Secretary of State. He said that he, too, hoped to visit Athens, but that it would not be possible at this time inasmuch as he had to return to Washington to prepare for Congressional hearings. Perhaps after the Lisbon meeting the situation might be different.