781.00/3–951: Telegram

The Ambassador in Greece (Peurifoy) to the Department of State
secret

2942. After thorough canvass political scene following recent crisis, Embassy has reached following tentative conclusions regarding advisable US attitude:

1. Strong probability Left achieve considerable success municipal elections particularly in urban centers largely because of unsatisfactory economic situation and apparent inability Government arrest deterioration. Whether EPEK or extreme Left will reap major profit open to question, but might be latter. Nevertheless, we do not consider Embassy should urge Government again postpone elections unless startling internal or international developments occur prior April 15. Municipal elections not only desirable in principle in line general program democratization and decentralization, but also should give excellent indication whether national elections should be hazarded. Also another postponement after last month’s clear commitment might further weaken Government and drive EPEK leftwards.

We do propose, however, (1) urge Government and other nationalist parties adopt common slates in doubtful urban centers in order prevent fragmentation rightist vote to profit “of Left and (2) urge EPEK not pick fellow-travelling candidates in hope winning extreme Left support. Some cooperation with these proposals anticipated.

2. Venizelos and Papandreou believe no Government under present chamber could be stable and are working toward national elections [Page 470] August or September when they hope economic conditions will have improved. Their conclusion based on conviction LEK unreliable partner. Populists under moral cloud EPEK would not enter Government prior elections and municipal Government unstable and ineffective. Other Rightist parties consider elections would produce chamber worse or at best approximately same as present and favor further efforts create new combination without elections. Palace inclines toward latter view. EPEK, of course, intent on elections. We propose urge Government adjourn definitive decision on national elections until outcome municipal elections known. In meantime, explorations currently in progress re broadening present Government can continue. Most feasible project is inclusion LEK, but we agree any combination based on present chamber unstable unless Rightist internecine quarrels should be submerged by strong Leftists wing in municipal elections.

3. Since majority voting system now considered by all parties to favor Papagos’ solution national elections would probably be held under proportional system. Papagos’ solution has experienced setback as result inept behavior his supporters during recent crisis and current coolness between Marshall and palace which undoubtedly exists despite King’s assertion to contrary. Embassy sees no reason encourage Papagos’ solution unless international situation worsens or all other means achieve stabler Government fail.

4. Should national elections become necessary, we believe they should be held by present Government perhaps somewhat broadened in order minimize interruption economic program. After election situation, seems probable either Center or Eight coalition, preferably former, could be reconstituted and Government based on substantial Parliamentary majority setup.

5. As Department will note, no startling improvement in Greek political scene can be forecast. Prospects are either for: (1) Rightist coalition of three or four parties based on present chamber held together by fear of Leftist gains in elections, or (2) Center coalition based on new chamber not differing essentially from that created by 1950 elections. Nevertheless, we wish to emphasize that though such Government would represent neither competence nor stability we would desire it would nevertheless be best that can be realistically expected in Greece at this time and would be generally responsive to US advice and fully committed to US objectives.

6. In view this fact and of serious danger growth Leftist sentiment in Greece as result deteriorating economic situation Embassy believes Greek Government of character indicated above, despite obvious shortcomings, should receive US support in order bolster its standing with mass Greek public opinion particularly in view upcoming municipal and perhaps national elections. Such support should [Page 471] be manifested in two ways: (1) Sufficient economic aid to check growing political unrest even if this means slight increase in dollar allocations to compensate for rising world prices and to build up small reserves of essential foodstuffs and (2) avoidance public criticism Greek Government and occasional measured praise concrete accomplishments of Government. Latter form of support will not in any way reduce necessary unpublicized pressure on Greeks to exercise fullest possible degree self-help and to implement whatever military or austerity measures required by international developments.

7. I would appreciate receiving Department’s reaction to general political approach outlined above.1

Peurifoy
  1. In telegram 3334 to Athens, March 21, Acheson informed Peurifoy that the Department concurred in the general views set forth in the source text: National elections should be deferred pending the outcome of municipal elections, a reexamination of internal Greek economic and political conditions, and the general international situation. Acheson added that the Department endorsed the view that the Papagos solution should not be encouraged except in the event that all other means to achieve a more stable Greek government had failed, and then such a solution should if possible follow constitutional practices. Acheson also reported a growing concern in the Department for the tendency of Greek political leaders to abandon support for a majority system in the event that national elections were held and stated “Dept recognizes Emb may be obliged actively encourage polit solution which we believe best calculated provide stability.” In conclusion, Acheson endorsed Peurifoy’s views concerning the necessity for economic aid to check growing political unrest. (781.00/3–951)