781.5 MSP/12–2151: Telegram
The Ambassador in Greece (Peurifoy) to the Department of State
2869. Grk Govt is being officially informed today that level of aid for current year is $182 million. I am issuing to press tomorrow statement explaining how substantial is level US milit and econ aid still being granted and that we are confident this amount if properly used will be sufficient to meet Greece’s essential needs.
In spite these assurances designed cushion shock of announcement aid figure below lowest level Grk people had anticipated I am by no means confident $182 million will prove adequate assure basic US objectives. I have in series of tels over past two months pointed out why I considered $200 million to be absolute minimum we cld safely contemplate. Unlike West Eur countries with large resources and developed economies there is extremely little margin for error in Greece and difference between success and failure may depend on sums which seem ridiculously small in comparison with over-all US defense expenditures. Yet in Greece as we have repeatedly pointed out and as Congressional groups visiting Athens have repeatedly noted with satisfaction, we already have armed forces of magnitude which we are spending vast sums in hope of creating in Western Eur.
We understand it is firm US policy (1) that size and efficiency of these forces not be reduced; (2) that drastic anti-inflationary measures be taken in Greece to provide safe econ base for these forces; and (3) that preparation be made for important financial measures intended for the same purpose. While all US representatives in Greece will devote every effort to achieve these objectives I do not feel able assure Dept they will be achieved with aid limited to $182 million.
We shall do everything within our power to make $182 million suffice and earnestly hope it may do so. I intend however to scrutinize effects of aid cut most closely during coming months and will inform Dept promptly if in fact it shld prove that this amount is not adequate to maintain econ base on which abnormal Grk defense effort rests.