881.00R/9–1450: Telegram
The Chargé in Greece (Minor) to the Secretary of State
859. Porter has telegraphed Hoffman,1 with request to pass to State, statement he wishes released this week when 1950–51 ECA allotments are made public.
It is planned that aid to Greece, including indirect aid, be reduced from $274,000,000 last year to $218,000,000 this year. This statement may come as shock to Greeks and might conceivably bring about fall of new government which,2 however, is regarded as a weak coalition and intended only as a stop-gap until elections can be held. In spite of these factors Porter and I feel that Greek people entitled to know reasons why American aid has not been fully utilized. Such a shock coming at this time we hope will bring about conditions under which American aid can be utilized for benefit of Greek people so that we may eventually withdraw our aid from a Greece which has become reasonably self-sufficient.
A series of Greek governments (we are on our sixth this year) have simply not taken actions necessary for full utilization of our aid. The proposed statement explains these facts to Greek people and suggests means by which they themselves can put Greece on her feet with aid of Americans. It is not intended as an ultimatum and is not in nature of a “Grady letter”.3 It is a simple and in my opinion necessary statement stating the amount of American aid for present year, explaining reasons why a reduction is necessary and indicating measures which should be taken by the Greeks.
- Telegram Toeca 1493, September 13, from ECA Athens, to the Secretary of State, personal for Paul G. Hoffman, Administrator, Economic Cooperation Administration, repeated as telegram Torep 1562 to Paris, not printed (Athens Post Files, Lot 58F7, 500 ECA).↩
- The Government of Prime Minister Sophocles Venizelos failed to get a vote of confidence on September 9 and was replaced on September 13 by a three-party coalition Cabinet consisting of 10 Liberals, 10 Populists, and 8 members of the Party of George Papandreou. Sophocles Venizelos remained Prime Minister and Minister of Foreign Affairs.↩
- See editorial note, p. 356.↩