781.00/11–2951: Telegram

The Acting Secretary of State to the Embassy in Greece 1
secret

2597. Venizelos called at Dept Nov 28 to pay courtesy visit. During conv Venizelos espoused essentiality continuing econ aid Greece at FY 51 level. Dept pointed out total amt substantially reduced from last year, which wld inevitably be reflected in aid levels to individual countries including Greece. However best possible wld be done for Greece under circumstances. Upon Venizelos’ allusion possibility reduction armed forces if econ aid lower, we pointed out most unwise for Greece reduce her armed forces level.

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Venizelos said King had requested his return because Plastiras’ illness and that he wld return next week. We gained impression from Venizelos discussion of possible polit developments resulting from Plastiras’ “retirement” that he believes Plastiras now out of picture. He envisages as logical development that govt will be formed of Libs and Rally. In his view Lib-Rally Govt based on present Parl preferable to electoral union of two parties followed by new elections. Questioned as to workability this cooperation he replied programs of two parties greatly similar and Papagos’ attitude greatly changed from orig stand of no collaboration. He also commented that reconciliation had begun between Palace and Papagos. During conv Dept confined its remarks to emphasis need of effective and durable govt without indicating preferences any particular solution. We also stressed necessity putting into effect program outlined by Amb in Propellor Club speech.

Venizelos also raised question of Cyprus. In referring attempts of gun-running into Cyprus stated he wld not like see civil disturbances break out there. Grk and Cypriot emotions at high pitch but wld be calmed if Brit gave indication at this time they wld consider union under more settled internatl conditions. Dept answered generally along lines position previously communicated to Emb. Present time inopportune raise question. Brit statement of willingness consider union in future might be construed as weakness by Cypriot Commies and as such might stimulate them increase agitation. Short-range stability badly needed until West superior to Sovs and raising Enosis issue wld adversely affect stability by disturbing relations between now friendly parties to this issue.

Last para sent info Nicosia and London.

Webb
  1. Drafted by Dixon, cleared by S/S, approved for transmission by Dorsz, and signed for the Acting Secretary by Assistant Secretary of State McGhee.