781.5/11–2351: Telegram
The Ambassador in Greece (Peurifoy) to the Department of State 1
priority
2432. In spite of Averoff’s statement to us reported Embtel 2412 November 212 that he intended for moment to take no further official action re reduction armed forces, he sent me this morning just before taking off for Rome NATO mtg,3 draft of note stating inter alia that (1) the Grk Govt came to the decision to reduce expenses for its armed forces, which constitute largest item in budget and which comparatively are the highest mil expenditures in the world and (2) in [Page 523] view of the above the Grk Govt is studying a sharp cut in mil expenses which shall entail a partial discharge of enlisted men as of January 1, 1952.
Fon Office states it is intention of govt to present note after receipt our comment to US and UK but timing of presentations still uncertain. We think it wld be most desirable forestall presentation formal note along these lines and wld like discuss question informally with govt leaders early next week setting forth fully and vigorously why we think govt proposal to reduce armed forces at this time is unwise and unacceptable. Before doing so, however, we wld wish to be sure as indicated Embtel 2412 that Dept and JCS continue firmly of opinion that present level shld be maintained.
Meanwhile, I am requesting JUSMAG and ECA to join Emb in careful resurvey of Grk mil budget to determine whether substantial economies can not be made without reduction of forces. Basic objective of Grk Govt is of course to prevent serious cuts in US econ aid and definite decision in this field shld go far to check agitation.
Papagos and other Rally leaders have expressed to us indignation at blackmailing tactics of govt on reduction of armed forces and wld probably be prepared to launch offensive on this score in Parl. …4
- Repeated to Rome for Anschuetz.↩
- Supra.↩
- For documentation on the Eighth Session of the North Atlantic Council at Rome, November 24–28, see vol. iii, pt. 1, pp. 693 ff.↩
- In telegram 2534 to Athens, November 26, Acting Secretary Webb endorsed the Embassy position with respect to maintenance of the current Greek military level and requested Peurifoy to emphasize to Greek officials that the ECA in considering its economic aid program was postulating maintenance of the current level of the Greek armed forces. Webb concluded that until the current ECA detailed economic review was received by the Department and discussions with ECA officials were completed, little else could be said regarding economic aid for Greece. (781.5/11–2351)↩