868.00/9–3047: Telegram
Governor Dwight P. Griswold to the Secretary of State
Amag 293. To Wilds from Griswold. September 27 McGhee and I lunched Sophoulis home. Good relations established. September 29 held long conference with Sophoulis. Stressed importance mutual frankness and cooperation. Stated my belief that it of “utmost importance to Greece” he continue as Prime Minister and “in all sincerity I believe it would be catastrophe for Greece and also for Mission if your Government should fall”.
Referring national guard (Amag 277, September 26) stated we were seeking method assist its organization but desired bring relevant facts his attention. Clay1 outlined critical economic situation with country teetering edge wild inflation and absolute necessity that budget be balanced and that any increased military personnel or activities including national guard must be accomplished by transfers within balanced budget. Patterson underscored Clay’s analysis.
As facts and figures presented Sophoulis increasingly impressed and appreciative remarking that his ministers had not informed him seriousness situation. He finally admitted that inflation problem and bandit problem of equal importance but remarked his personal belief essential defeat bandits immediately else Markos would be in Athens within three or four months. For this reason he considered national guard essential. He was clearly concerned at report on economic conditions and I requested further meeting with him and appropriate ministers after they had opportunity study situation.
I then suggested they consider possibility of transferring American aid promised for permanent ten thousand army increase to temporary national guard ten thousand cancelling permanent army increase because latter could not be inducted before December. I suggested also possibility that as May and Mad disbanded and gendarmerie reduced [Page 356] equipment and funds could be transferred to permit later enlargement national guard. Sophoulis immediately accepted suggestion.
Sophoulis also supported tentative drastic budget cuts outlined by Clay. These and my suggestion regarding transfer American army [aid] to national guard will be subject conference October 1.
Livesay then gave brief encouraging report bandit situation B corps area based his recent trip north. Bandits not dispersing when attacked as heretofore. Therefore easier target for army. He suggested reason for new tactics might be increased danger impressed recruits slipping off to take advantage amnesty.
- Eugene H. Clay, economic adviser to Governor Griswold.↩