232. Telegram From the Embassy in Greece to the Department of State 0
1978. This is country team message. Greek-US economic relations have deteriorated sufficiently to cause concern, with Greek officials and press indignant and piqued over alleged reduction US economic assistance. These reactions are psychological and stem we believe from fear of progressive US economic disengagement. It would be most salutary if rapid progress could be made on nitrogen fertilizer plant financing under the Development Loan Fund. This is one of four preliminary applications submitted by GOG and is the one to which GOG attaches greatest urgency. Nitrogen fertilizer plant is a “natural” not only for improvement Greek-US relations but also for internal political and economic reasons. Plant would satisfy conservative estimate of farmer demand for fertilizers and would save Greece 15 to 20 million dollars annually in foreign exchange.
For past two years country team has consistently urged US financing this project. (See Embtel 3420, June 12, 1956, and Embtel 128, July 12, 1957.)1 We would have to search long time to find project as ideally suited for Development Loan Fund financing as nitrogen fertilizer plant.
Country team recognizes that final decision necessarily dependent many factors not subject immediate resolution either by US or GOG. Furthermore, realize many difficulties might be attendant on any preliminary announcement, but if something like this could be worked out for immediate future it would be highly desirable.