Foreign Relations of the United States, 1958–1960, Eastern Europe; Finland; Greece; Turkey, Volume X, Part 2

278. Telegram From the Mission to the North Atlantic Treaty Organization and European Regional Organizations to the Department of State⁰

Paris, December 22, 1959, 7 p.m.

Polto 1212. Department pass Defense. Averoff, accompanied by Melas, called on me December 21.¹ He said he had heard that aid programming for Greece for FY 1960 still going on but indications were that instead of 20 millions for end items and 12 millions for common use defense support, it was now tentatively contemplated latter would be cut to around 66 millions. He was not asking for increase over last year’s figure but maintenance of defense support and military aid at last year’s level extremely important particularly now when threat of recession existed. He used arguments of stern measures Greeks were taking and their hopes of three-to-five-year development plans in fields of hydroelectric power and tourism, stressing need to hold line at present. He pointed out that low standard of living in Greece left little cushion for recession. He referred to helpful declarations and effects of President’s trip, and repeated point made at NAC meeting on heightened Communist threat to Greece. I explained the difficulties we had in working within this year’s limited budget and expressed my personal sympathy for his problem and for the way they were approaching both their economic and political problems.

Averoff said he would be signing the atomic stockpile agreement “one of these days”.² There had been some questions, as these arrangements had economic implications for Greece but the matter was so important that it had to go forward.

He also referred to the Agard recommendation to establish the NATO missile range on Crete and said that this would have a good psychological effect in Greece, indicating Greek participation in NATO. They asked our support for an affirmative decision, which we understand awaits firm recommendation from Norstad.

Averoff said he expected to be back in Paris in mid-January (presumably for economic meetings).³ This might necessitate his changing his plans to attend ceremonies in Liberia, Ghana and Cameroons, although he thought it important to make contact there in view fact Greeks not viewed with suspicion by Africans. He concluded by indicating a shift in Nasser attitude, which Melas expanded as meaning that Nasser was now becoming afraid of Communism.⁴

Burgess

0. Source: Department of State, Central Files, 781.5–MSP/12–2259. Secret; Limit Distribution. Repeated to Athens.
1. Averoff was in Paris for the NATO Ministerial Meeting, December 15–17 and 22.
2. See Document 258.
3. The regularly scheduled meeting of the OEEC was to take place in Paris on January 14, 1960. In addition, a special meeting to consider reorganization of the OEEC had been set for January 12–13.
4. In a December 19, 1958, speech Nasser had warned other Arab states of the dangers of Communism.