781.00/12–2651: Telegram
The Ambassador in Greece (Peurifoy) to the Department of State
2901. Polit situation is particularly fluid at this moment due to (1) possible repercussions of US aid cut, (2) usual uncertainty as to which way Venizelos will jump, and (3) apparent shift in attitude of rally.
[Page 527]As to last, Markezinis informs us that he personally has become convinced that collaboration with Libs without new elections might be desirable. He emphasises Papagos still believes election essential but we presume he wld not have mentioned matter to us unless he thought Marshal cld be converted. Markezinis did not explain this radical shift in his position but we believe it attributable to conviction that, in view attitude of Palace, reenforced by approval new constitution, it may be impossible for considerable period to bring about elections.
As to Venizelos, he informed me immed after his return he intended to urge Plastiras, in view state of health, to retire from active polit life. If Plastiras shld agree Venizelos wld support immed EPEK–Lib merger with Plastiras as President combined party and Venizelos as PriMin. If this arrangement not possible Venizelos wld seek collaboration with rally to form new govt without elections.
These remarks were made before Venizelos had had much opportunity to bring himself up to date on polit situation. Increasing activity of Plastiras suggests he wld be willing to retire to honorary post unless he has another heart attack. Whether he wld favor merger on other terms, in face opposition most leading members his party, is open question.
It is still too early to assess polit effects of cut in aid but for moment govt, while protesting vigorously against magnitude of cut, is showing no signs of resigning over this issue.