868.50/4–1647: Telegram
The Acting Secretary of State to the Embassy in Greece
474. In personal letter to Maximos dated Mar 17, Ambassador MacVeagh transmitted substance of memorandum from Ambassador Porter stressing importance of immediate action by Greek Gov on several measures proposed by American Economic Mission to minimize possibility of economic deterioration pending implementation of US aid program. On Mar 21, Maximos assured Economic Mission’s staff that steps were being taken to establish a Foreign Trade Administration, expedite olive oil exports, and centralize in Currency Committee responsibility for handling government workers’ wage demands. MacVeagh and Porter are concerned at apparent lack of progress [Page 147] since their departure. Dept shares their concern, and requests that Emb inquire of Maximos concerning status of Foreign Trade Administration and olive oil export plan in particular, as well as other measures discussed in MacVeagh’s letter to Maximos. Emb should emphasize to Maximos that clear demonstration of Greek Gov’s willingness to do everything possible to help itself is essential to maintenance of present favorable attitude of US Congress and people towards Greece.
In this connection, it should be pointed out that bill now under consideration in Congress authorizing 350 million dollar relief to various countries including Greece provides that no relief shall be provided to any country unless its government has given assurances satisfactory to President that necessary economic measures have been or are being taken, insofar as possible, to reduce country relief needs and provide for its own reconstruction. Bill also provides relief shall cease whenever it becomes apparent assurances are not being carried out.
Emb should also point out that economic deterioration resulting from failure to act may seriously diminish effectiveness of whatever US aid becomes available.