285. Editorial Note
Potential Soviet influence over Greece’s economy and politics was discussed at the March 2 meeting of the Operations Coordinating Board. Following is an extract from Jeremiah J. O’Connor’s preliminary notes on the meeting:
“Mr. Scribner (Treasury) referred to this item in the Activity Report and said that he interpreted it as representing a policy of excessive discouragement of the Greeks in regard to Greek/USSR trade. He thought the Greeks had always been able to take care of themselves in their trade relationships and wondered why we should discourage the Greeks from trading when they have agricultural surpluses piling up. Mr. Merchant responded that, as far as he knew, there was no inhibition on our part to having the Greeks trade with the Soviets in non-strategic materials but pointed out that, in the fragile state of the Greek economy, there were certain inherent hazards should the Soviets use trade as a political instrument. He also suggested that Greek assiduousness in keeping us informed of Soviet overtures might be designed to engage a more sympathetic attitude and interest on our part in regard to economic assistance. Messrs. Riddleberger (ICA) and Allen (USIA) both supported this point of view, with the former reviewing recent political developments in Greece and pointing out that the principal talking point of the rather strong left-wing party would be strengthened by a decision to expand substantially Greek-Soviet trade. There was discussion of the pattern of Greek trade at the present time, the nature of their agricultural surpluses and the dangers inherent in exclusive reliance by the Greeks on the USSR for the absorption of the Greek surplus.
“In response to a question by Mr. Dulles (CIA), Mr. Riddleberger discussed in some detail the current status of an earlier US inclination to finance a steel plant in Greece and the economic difficulties inherent in producing steel in Greece. A Soviet suggestion that they build a steel plant in Greece was noted in this connection.” (Department of State, OCB Files: Lot 61 D 385, M/OP Informal Notes 1960)