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

524. For Assistant Secretary Talbot.

1.
Following signature PL 480 agreement late yesterday,1 Minister Coordination Arliotis indicated desire for private conversation. In most serious tone, he began by saying Prime Minister has just received message from Greek Embassy Washington to effect aid for Greece being “deeply cut.” I told Arliotis we had received no word from Washington re aid level and anticipated none before end of month. In answer my inquiry, he indicated Greek Embassy had got it from “semi-official” source. He went on stress this worst possible timing in view imminent elections, would have incalculable effect on voting, would be played with maximum emphasis to Greek people by Communists as confirmation their worst charges against US, et cetera. Arliotis implied only Prime Minister Dovas and he were privy this information (although top Foreign Office official must also know). He said Prime Minister had taken personal charge of matter and I could expect be called in probably tomorrow, Friday.
2.

While Greeks have been ardently dramatic since dawn of history and we may expect them pull full stops out, I agree fully timing for this sort of news could hardly be worse. At present moment in Greece, with election campaign in full swing and Greek relations with Soviet Bloc in agitated state, any indication US aid to be reduced would have profoundly disturbing effect on US-Greek relations. Public knowledge of any planned reduction our aid to Greece would play directly into hands Greek Communists and reinforce their argument, hitherto lacking conviction, that Greece can only protect its security by going neutral.

[1 paragraph (10 lines of source text) not declassified]

[1–1/2 lines of source text not declassified] It goes to attitude of Greek people as a whole, for whom US presently plays role of strong protector of which they historically feel in need. Irrespective strong support Greeks in general give NATO, it is US help and protection they want above all else. At a time of tension for Greece, both domestic and international [Page 621] and when we are calling on Greece to make additional contributions to NATO effort (Embassy telegram 506),2 evidence of slackening US support would seriously damage our position and discourage those who support us in Greece.

5.
I have no desire be dramatic myself and do not believe above is overstating case. But if reported decisions re cut in Greek aid level should come out now by leak or otherwise, then, believe me, this comes at a time which will ensure maximum unfavorable publicity and harmful effects for us locally.
6.
I realize demands on US are pressing everywhere, but do we want to rock Greek boat before it is tight enough to weather rough seas on its own? I should welcome any suggestions re tack to take in anticipated session with Prime Minister. Best thing, of course, would be to be able inform him reports are unfounded.3
Bennett
  1. Source: Department of State, Central Files, 781.5–MSP/10–1961. Confidential; Priority; Limit Distribution. The telegram, delayed in transmission, was received on October 21.
  2. For text of P.L. 480, the Agricultural Trade Development and Assistance Act, enacted July 10, 1954, see 68 Stat. 454. For text of the surplus agricultural commodities agreement, signed in Athens on October 18, 1961, and entering into force the same day, see TIAS 4876.
  3. Telegram 506, October 13, reported the U.S. Military Assistance Group’s (JUSMAGG) assessment of Greek military capabilities. (Department of State, Central Files, 781.5–MSP/10–1361)
  4. In telegram 409 to Athens, the Department of State replied: “You may if necessary reassure Greek Govt there no intention communicate to Greek Govt, let alone make any public announcement concerning, aid levels prior Greek elections. FYI. We understand AID expects inform you shortly proposed aid levels on classified basis soliciting your comments with view considering them at regional conference to be held shortly.” (Ibid., 781.5–MSP/10–2361) Bennett relayed this message to Prime Minister Dovas on October 23. He reported on their discussions in telegram 538 from Athens, October 23. (Ibid.)