781.5 MSP/1–352: Telegram
The Ambassador in Greece (Peurifoy) to the Department of State
3001. Min of Coordination yesterday handed Emb memo dated Dec 291 indicating great surprise and deep disappointment at cut in aid level. Alleges this will make it impossible attain three major Greek policy objectives, maintenance (a) present size and strength defense establishment; (b) financial and economic stability; (c) minimum essential investment programs for creation viable economy.
Points to sharp increase in gold sales as result of blow to confidence; reviews familiar arguments of lowest per capita income, highest defense burden in West Europe, and inability to benefit by off-shore procurement. Complains of lack of consultation on setting aid level and pre-emption German market by Virginia tobacco financed in part by ECA.
[Page 528]Concludes with statement that supplementary aid, while minor percentage of total US aid to Europe, of crucial importance to stability and defense effort of Greece. Greek Govt unable to consider $182 million as final and formally requests opportunity detailed restatement for additional assistance this year.
Pursuant to my directions, Emb representative told Min twice in clearest possible terms that, in the light of worldwide US commitments, the allotment must be regarded as final and that no useful purpose wld be served by an attempt to reopen the matter. My view was transmitted that our common task now is to plan the wisest and most difficult use of the $182 million we have.
There was optimism from the Greeks my equally firm conviction that if it proves impossible to live within this level of aid, the question must be reopened.
Despatch with text of note follows.
- A copy of the note is in the Athens Embassy Files: Lot 58 F 7:500 ECA (conf).↩