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

280. Telegram From the Embassy in Greece to the Department of State⁰

Athens, January 7, 1960, 10 p.m.

1864. 1. After signing PL 480 agreement with Minister Coordination,¹ I saw Prime Minister to discuss our respective announcements on US assistance for current year.² Coordinated texts will be issued here tonight for tomorrow morning’s press. See Embtel 1861.³

2. Prime Minister opened by saying he wished on behalf his government and Greek people express most sincere thanks to US for generous economic assistance package which was being provided this year, which he especially appreciated in view overall reduction in US aid appropriations. He asked me convey to the President both his official and personal thanks for responding favorably to request he made during his conference for an increase in American aid levels in light of Greek difficulties. Also stressed appreciation for US moral support which he said Greece needs as much as financial support.

3. Then went on to say while our assistance would help resolve Greece’s immediate difficulties would by no means resolve them all. Made special point of saying he thought it likely Greece might come in before year’s end for additional PL 480 assistance.

4. Previously Deputy Prime Minister, Foreign Minister and Minister Coordination all went out of their way to express their great satisfaction with level our aid this year.

5. I came away with feeling that Prime Minister and his leading Ministers have been under severe strain lest American aid be sharply cut this year in face of their serious economic difficulties and that they are very much relieved to have fared so well in circumstances of reduced US appropriations. I propose to let present atmosphere of good feeling simmer for a while, and then begin to take up with them some of the more basic problems which lie at the root of their difficulties, e.g. apathetic attitude toward encouraging foreign investment and questionable agricultural policies.

Briggs

0. Source: Department of State, Central Files, 781.5–MSP/1–760. Confidential.
1. For text of this agreement, see TIAS 4403.
2. In telegram 1888, January 4, the Department of State informed the Embassy that an additional $5 million would be added to the defense support aid for Greece for fiscal year 1960 and that the DLF would announce that it would extend a $31 million loan for construction of the Acheloos hydroelectric project on January 6. In view of this action, the Department requested a quick announcement of the total aid package by the Government of Greece. (Department of State, Central Files, 781.5–MSP/1–460)
3. Telegram 1861, January 7, transmitted the text of a statement outlining the goal of $81 million in U.S. aid for Greece for fiscal year 1960. (Ibid., 781.5–MSP/1–760)