868.00/11–2647: Telegram
The Acting Secretary of State to the American Mission for Aid to Greece
Gama No. 526. Dept urgently considering question additional Greek Aid from all possible sources and requests no further announcements this subject from Athens until further advice received. As indicated Gama 4701 not possible include additional Greek Aid request in interim aid for Europe bill as reported from your conference of 25th by Schmidt in Times article of 26th. Following is statement made by Acting Sec at today’s press conference:
[Page 423]“Reports from the American Mission for Aid to Greece indicate that several factors affecting the success of the Aid Program have recently emerged which were not envisaged when the Greek Aid Program was presented to Congress:
- (1)
- The guerrilla warfare has resulted in the forced and planned evacuation of 310,000 refugees, who are now crowded in Salonika and other cities in the north of Greece near the guerrilla areas. These refugees are completely without source of livelihood, will not be able to produce on their own farms crops which were a part of the original Greek supply estimates, and are wholly dependent on the state for support. It is estimated that this number may increase to 500,000 by January 1.
- (2)
- Approximately one-third of the Greek wheat crop was lost through the recent drouth.
- (3)
- It has been necessary to allocate nine million dollars from funds earmarked for economic purposes to increased supplies and equipment being furnished the Greek Army.
- (4)
- Increase in world prices has substantially reduced the buying power of Greek Aid Funds.
- (5)
- Availability of funds for Greece under the post-UNRRA relief program will be 10 million dollars less than originally planned.
The American Mission and the Department are studying carefully the probable effect of these factors on the recovery program in Greece and the possibility of meeting this emergency by reallocation of remaining Greek Aid funds. This question is also being considered in connection with the participation of Greece in the European Recovery Plan.
The necessity for the Department’s requesting an additional appropriation for the present fiscal year will depend on the outcome of these studies.”