711.68/12–847

The Chargé in Greece (Keeley) to the Secretary of State

secret
No. 5735

Sir: I have the honor to transmit herewith a memorandum, entitled “Suggestions for United States Policy in Greece”,2 which has been prepared by the Political Section of the Embassy with the cooperation and concurrence of the Economic Section.

It is hoped that this appraisal of the situation, which represents the considered opinion of those officers of the Embassy who have been closely following developments in recent months, may be helpful to the Department in shaping United States policy in Greece to serve our interests.

The situation in Greece is fraught with such evident peril to the maintenance of fundamental democratic freedom not only in Greece, Europe, and Asia but even in the United States itself, that one can only assume that those whose responsibility it is in our Government to make plans for our national defense are giving careful thought not only to the current situation as it develops but also to the potentialities of the situation, to the extent to which it may be possible to predict what might happen in the foreseeable future. The crux of the matter would seem to be “Is the United States in Greece to see the job through, i.e. to preserve Greek independence from Communist (Soviet) domination, or not?” Those who have collaborated on the [Page 439] enclosed memorandum feel that in our own best interests our answer can only be in the affirmative. If so, our provision for the future must not be limited by the original aid to Greece program or our effectiveness be hampered by any narrow limitation on what we as a nation can do, and promptly, as the developing situation may demand. Whether we like it or not, or are yet prepared to admit it publicly, we must recognize that in Greece we are faced with war, not alone a propaganda war on a large scale but a shooting war, sponsored by those whose way of life is inimical to ours and whose intensified efforts in recent months give evidence of an intent to checkmate our combined efforts to overcome it. While it is the part of wisdom to endeavor to win this contest with the least outlay as long as such a program does not seriously endanger victory, we should not, and must not, handicap ourselves improvidently. For our own national safety we must not rely upon piecemeal action. Economic forces can defeat us as readily as other forces. We should have authorized and available such additional funds and facilities as prudence demands without the costly delay entailed in obtaining, after the fact, more funds from the Congress tardily to meet new situations as they arise. If we are not to lose the war we must not lose too many of the battles for the want of immediate means to win them. The timely availability of a few millions of dollars when needed might well mean the difference between success and failure, victory and defeat.

As a result of views exchanged with the members of the various Congressional groups that visited Greece in recent months, the Embassy is convinced that Congress will grant the necessary authority and funds to protect the vital interests of the United States if the situation is clearly and frankly explained to it. It is suggested that less funds might be required in the long run if the secrecy concerning our intentions were raised so that not only the Congress and the American people may fully appreciate the threat to our way of life and how we intend to combat it but, also, so that those who are threatening that way of life may be left in no doubt as to our intentions and the steadfastness of our purpose in defending it, both at home and in the territory of our friends abroad who share our attachment to the democratic freedoms and are prepared, with our assistance, to defend them.

Respectfully yours,

James Hugh Keele
[Page 440]
[Enclosure]

Memorandum by the Political Section of the Embassy in Greece3

secret

Subject: Suggestions for United States Policy in Greece

I. Need for Realistic Decisions on High Policy Level

The Greek situation has now reached an exceedingly delicat balance point. On the one hand there is the possibility of gradually inching forward towards the reestablishment of order and economic recovery. On the other, there is the possibility of total military and economic collapse. To the extent that adequate provision has not already been made to cope with the developing situation, high policy decisions should be taken by the United States with the least possible delay.

Decisions on particular Greek problems should be taken only after each problem is considered in the light of all other related Greek problems. For example, a decision on the one hand that the needs of the refugees (estimated at more than 400,000 as of this date) should be covered in the Greek budget is wholly unrealistic when on the other hand those responsible for balancing the budget simultaneously state emphatically that such needs cannot be met in the budget without immediate probability of runaway inflation dangerous to the entire Aid Program. Temporary provision for a nine-months’ period of minimum needs for shelter, clothing and food for only 284,000 refugees as of October 1 amounted to 266,654,100,000 drachmas, or one-tenth of the total budget of the Greek State.

In arriving at decisions on Greek problems, thinking must transcend Greece. For example, it has been suggested that it might be cheaper in the long run to bring into Greece sufficient American troops promptly to restore order, but as such a move might well precipitate war with Soviet Russia and her satellites, the final decision must weigh this as well as other possibilities.

The important thing is that the Greek situation and all that depends upon it with respect to preserving genuine democratic freedoms in Europe and Asia, and eventually in the Western Hemisphere, requires that constant vigilance be exercised to the end that nothing be done that will detract, and nothing left undone that will contribute to the accomplishment of this end objective.

II. Factors in the Situation

a.
Economic situation: Because of elements that were not, and in some cases could not be, foreseen when the appraisal was made upon [Page 441] which the funds for the American Aid to Greece Program were voted, and because of the deterioration that took place before that aid could be made effective, those funds and the facilities based thereon have proved insufficient to hold the line, let alone effect the reconstruction of the country. Although there have been marked improvements in certain respects, such as in the establishment of a Foreign Trade Organization to bring order out of chaos in that field, there has been deterioration in other respects, so that on balance the economic situation within Greece remains at least as critical as it was a year ago.
The delay involved in the implementation of the Aid Bill, the poor harvest of last year, rising international prices, and close to a half million unforeseen refugees—all of these aggravated and exploited by Communist sabotage and propaganda—have slowed progress to a dangerous pace. The refugee problem alone is a major calamity which, if unrelieved, is such as would threaten the political organization and economy of a stronger nation. To have over five percent of the total population of Greece (over 15 percent of Northern Greece where the problem is particularly serious) homeless, destitute and terrorized is a situation in the face of which no Greek Government can long exist, particularly as the refugee problem is merely an acute manifestation of a generally perilous situation. The memorandum prepared by First Secretary Horace Smith goes into greater detail on the economic aspects of our policy and makes certain recommendations. A copy of that memorandum, which was submitted to the Department under cover of despatch no. 5650 of November 24, 1947,4 is appended hereto.
b.
Military situation: The insurrection is intensifying. Even under the most advantageous conditions, military observers do not foresee the containing of the rebels until the end of 1948. On the contrary, the guerrillas appear to be gaining in strength and boldness while, reports of satisfactory morale on the part of the National forces notwithstanding, the efforts of the Greek Government and its forces to control the situation seem to be increasingly less effective. Further, while winter conditions will impede both sides, it is unquestionable that in mountainous terrain largely controlled by the guerrillas the lack of mobility which such conditions impose will favor the guerrillas over the Greek National Army. Were other things equal, the giving of operational advice by American officers might serve to turn the tide. There is, however, no assurance that other factors will not intervene.
Our own transcending interests demand that the military situation be reviewed not in relation to Greece alone but in relation to the world problem. By July 1, 1948, if not sooner, the Greek Army will have consumed all the rations provided for it within the Aid Program. [Page 442] Whence will come its rations thereafter? Is it realistic, on the grounds of inadequate aid funds, to continue to deny Greece the additional military effectives she contends she needs to end the rebellion? To do so in the face of the deteriorating situation is to give the Greeks and their (our) opponents the impression that it is immaterial to us whether the rebellion ends or not, which surely cannot be the case. If we are not convinced of the need for more effectives, at least we must be prepared immediately to provide more funds and equipment if our military planning staff so recommends, and their judgment should be free, that is, not restricted by the limits of the Aid to Greece Program. That Staff should not only feel free, but be instructed, to report what in their opinion the true military situation is and what is needed to cope with it in the light of United States interests in maintaining Greece’s freedom from Communist domination. Whatever is required should promptly be given.
c.
Political situation: Politically, Greece’s world position has perhaps improved over what it was a year ago in that the justice of her cause has been recognized by the majority of the United Nations, and Greece has been able to enlist the sympathetic support of the United States in most respects. Greece is, however, still severely criticized by her friends who have, perhaps unwittingly, allowed themselves to be put on the defensive by Communist allegations of “monarcho-faseism”, and have themselves weakened Greece’s position by all too frequent criticisms that seem to ignore the fact that Greece is at war. This publicly evidenced lack of confidence in the Greek Government is extremely important in the general feeling of confusion and uncertainty which has impeded the Greeks’ own efforts to save their country. Meanwhile, Greece’s enemies have become more and more open in their designs against her, and recent developments give reason to fear that an even more flagrant offensive is imminent. Thus the formation and location of the Cominform at Belgrade, the increasingly overt assistance and support offered the guerrillas by the satellite countries and by international organizations such as the WFTU, and the conclusion of the Yugoslav-Bulgarian alliance not only are useful weapons in the “war of nerves” but also are potential weapons in any larger developments which may be forthcoming. The war psychosis which is being openly and officially fomented in the satellite countries is a disquieting development.
If no further adverse factors were to enter the picture, and if Greece could confidently count upon adequate ERP aid to replace AMAG when the latter ends, time might swing the balance in favor of the realization of American aims in Greece. The influence of AMAG is just now beginning to be felt, American military advisers are about to [Page 443] arrive, and the UNSCOB may prove a deterring factor to the despatch of arms and supplies across the border. Thus, were the Communists to surrender the initiative to us, it might be possible to envisage a slow and gradual improvement in the situation within the framework of a democratic Greece. All evidences, however, support the expectation that the USSR and her satellites will not give up the initiative, but will on the contrary resort to any means necessary to thwart us and to give the balance the push necessary to swing it in their favor. Once swung in that direction, the balance will not return short of war.

III. Indications of Further Communist Action

The Communist rebels and their foreign supporters have repeatedly threatened to take, and have it within their power at any time to take, a simple decision, which would completely upset the delicate balance in Greece: to wit, the formation of a so-called “Free Democratic Government” in rebel-held territory or even in exile. If this has not yet been done, Mr. Johnson’s warning before the Security Council may have been the deterrent factor, but the situation has evolved since August 12.

Such a step would presumably include the severance of official relations with the Athens government and the granting of belligerent status to the rebels. Soviet Russia and her satellites would then be freer to give assistance to the rebels and would probably do so in greater degree than we are giving it to the legitimate Government of Greece. Materially the simple formation of a rebel government would probably change the actual situation very little, if at all. Psychologically its effect would be extremely bad in Greece and, propaganda-wise, abroad. Recognition and open assistance would, however, radically alter the whole picture and, incidentally, completely nullify the efforts of UNSCOB, which would find itself, if it could continue to operate at all, in the position of “discovering” that which would by that time be openly acknowledged.

Indications that the Communists are aware of the advantages of such action are not lacking. In addition to evidences of preparedness on the part of the northern countries, the Communists within Greece itself are known to be preparing for general action the moment the word is given. It has recently been confirmed that the guerrillas have at their disposal, and are now utilizing, mountain artillery, a weapon which the United States and Great Britain have so far failed to provide the Greek Army despite repeated requests for such matériel by the Greek Government. Guerrilla propaganda last week asserted that the “Democratic Army” is repairing the several aircraft which have fallen into its hands. While the repair of these aircraft cannot yield [Page 444] a significant number of serviceable machines, their existence would allow a “Free Greek Government”, when and if formed, an opportunity clandestinely to utilize air support from the neighboring countries to the north while alleging that the planes used against the GNA were those very same craft which had been repaired from GNA losses. There is, moreover, strong reason to believe that the Communist Party of Greece (KKE) is designating, training and despatching to the hills an administrative cadre which is destined to be the backbone of a “Free Government”. Moreover, many KKE leaders have recently disappeared from Athens and the party rank and file have been led to expect that a “Free Government” will be formed “when General Marcos and old Man Winter have secured enough terrain”. These should give us sufficient warning of further dynamic attempts on the part of the KKE and its supporters to achieve the Communist goal in Greece.

IV. The Problem

Pending settlement of basic issues between Washington and the Kremlin, the line must at least be held in Greece. Whether or not, and how, that line is held will play an important part in the final solution of the overall problem. A dynamic policy effectively administered will not only safeguard our vital interests in Greece, but might also serve as a spearhead aimed directly at a vulnerable spot on the Communist periphery.

The problem facing us at the present juncture is to determine how far we are willing to go and what specific steps may be necessary to prevent one more democratic country from undeservedly and irretrievably falling behind the Iron Curtain, and more immediately to forestall, or failing this to counter, the establishment and possible recognition of a rebel “government”. The following recommendations are submitted with these objectives in view.

V. Recommendations

A.
To meet the specific threat of the formation of a rebel “government” the United States should immediately issue an unequivocal statement reaffirming and strengthening the remarks made by Mr. Herschel Johnson before the Security Council on August 12, 1947.5 Paraphrasing his declaration in the light of subsequent developments, it should be stated that since effective action by the Security Council was repeatedly prevented by the veto of the Soviet Union, and since Albania, Bulgaria and Yugoslavia have continued to refuse to follow the recommendations of the General Assembly, the United States Government does not consider that individual or collective action by [Page 445] states willing to act is precluded, so long as they act in accordance with the general purposes and principles of the United Nations. We should reiterate that the United States is prepared and willing to cooperate with like-minded members of the United Nations in taking any step which might become necessary to afford Greece the protection to which she is entitled. More specifically, it should be declared that the forcible establishment, throughout Greece or in any part of her territory, of a minority, totalitarian “government” subservient to the Communist-controlled countries, would be considered an act of aggression which would justify Greece’s invoking article 51 of the Charter. It should be asserted that in such an event Greece can count on the whole-hearted support of the United States.
B.
Among other things, it might not be inappropriate to reexamine the question of our diplomatic relations with the hostile satellite neighbors of Greece, giving careful consideration to the practicability of recognizing, in concert with the other Western democracies, democratic governments-in-exile of these states. It might even be appropriate to include in the declaration recommended in (A) above, a statement that the United States will feel compelled to reconsider its relations with any state which recognizes such a rebel “government”.
C.
Apart from the question of a rebel “government” we must now prepare and execute a plan of action measuring up to the urgency of the existing situation. Already Communist propaganda in the Balkans plays the theme that the United States and Britain are “more likely to engage in the ‘literary activity’ of writing diplomatic notes than in vigorous direct counter-action”. Such a program should be applicable in the eventuality that United States action to forestall the formation of a Free Government be either too late or too little. It must be a broad program and envisage action in the political, psychological, military, economic, and informational fields. The following broad recommendations are made to reinforce the already substantial efforts being made under AMAG’s present program.
i.
Political anal psychological. Our political and psychological approach must be positive and dynamic. We must not only adopt, but must convince our allies and the rest of the world that the United States has assumed, a determination to “see this through”. We have morally committed ourselves to the support of the sovereignty and territorial integrity of Greece. However, this moral commitment has not yet been made explicit, which leads our allies, as well as our enemies, to question our determination. We must realistically support the present coalition Government, or any broadly based government that may succeed it. Similarly we must cease unrealistically asking Greece to make unilateral sacrifices, for example in regard to reparations and [Page 446] territorial claims, which embarrass and weaken the Greek Government and undermine the confidence of the Greeks in our support of them when contrasted with Soviet support of her satellite states which concurrently have designs and less justifiable claims against Greece.
The United States must be prepared, should a rebel Government be formed either before or in spite of an announcement of American policy as recommended above, to take effective action. Such action would presumably be initiated by (but not limited to) a formal complaint in the United Nations against the satellite nations, should these nations recognize the “Free Government”.
It is likewise high time that the United States Government forsook the defensive and stopped apologizing for the present, allegedly “monarcho-fascist” Greek Government. Its shortcomings are multitudinous, but it is by no means as bad as international public opinion has been led by repeated and insidious Communist propaganda to believe. We should not hesitate whenever occasion demands to remind the world that it is a government freely elected by the people under international supervision (Amfoge). It is, to say the least, cooperative and well-intentioned. While it falls short of ideal democracy (as we understand the word), we should stress that this is largely because of conditions intentionally created by its Communist enemies. In the face of fantastic obstacles, political, economic and military, the present rulers of Greece are unquestionably making a sincere effort to remain democratic, and occasional deviations are understandable. The present coalition has many weaknesses, but there is no immediate alternative and with firm support and advice it can be reinforced. Fundamental reforms can be effected through this Government if patience, persistence, and an understanding of the limits imposed by the stage of development of the country itself are exercised. American political and psychological policy towards Greece must not lose sight of the fact that there is very little in Greece that cannot stand the light of impartial publicity, which Greece herself has always welcomed, and that we have the advantage of the ascertainable truth on our side. In summary, our failure to give Greece unqualified political and psychological support has considerably impaired the ability of the Greeks to help themselves.
ii.
Military. In a military sense our decision to send to Greece a group of American officers to give operational advice to the Greek Army has had a salutary effect on Greek morale. But this far-sighted action must be implemented with the least possible delay if it is to have the maximum effect. Too often in the military, as in other fields, our day to day actions, dictated frequently by overriding factors such as shortages of appropriated funds, have had a cumulatively negative [Page 447] effect which tends to defeat our over-all objective. (As examples; delay in arrival of aircraft, mules, munitions and military equipment, resistance on necessary budgetary grounds to Greek desires for increases in the Army and National Guard and our present objection to the request of the Greek Army for mountain artillery.) Each factor in itself is small but the cumulative effect is to discourage the Greeks from getting along with the guerrilla fighting, to beat down their will to resist and to give credence to their fear that the United States does not seriously intend to see this thing through. These are military matters in which the Political Section is not endeavoring to pass judgment but merely indicating the negative effects in the sum total. No criticism is intended of AMAG or USAGG, which have accomplished the maximum within the limits of inadequate funds.
Similarly we do not feel competent to make a final recommendation with regard to the wisdom of sending American forces to Greece either alone or together with other United Nations forces since we are not able, from our limited viewpoint, to see the problem in the over-all context of our relations with the Soviet Union, nor are we informed as to the considerations of grand strategy involved. What alone is clear from the political viewpoint here is that the situation may at any time develop to a point where a decision for or against the sending of troops would be immediately necessary. This possibility must be faced at once by those competent to do so, if it has not already been faced and decided.
iii.
Economic. American political exigencies aside, it is unrealistic to expect to save Greece on a piecemeal or year to year basis. Our policy must be long range and must be announced as such. Otherwise skeptical Greeks will tend to withhold their cooperation, as they already have, for the purpose of laying aside a reserve against the day that American assistance is withdrawn. The Porter recommendations on which the AMAG program was based were drawn up on the basis of observations made approximately one year ago, since which time the situation has changed considerably for the worse. Until over-riding political problems are solved, economic theory and sound business principles cannot be controlling considerations. The existing appropriation for Greece is inadequate and additional funds must be provided. The present situation must be presented to Congress and to the American people as transcending mere considerations of economy.
As already recommended, the designated powers of the Chief of AMAG should be broadened to permit him to make on-the-spot decisions and questions necessarily referred to Washington for decision should receive the promptest consideration. It is of the utmost importance [Page 448] that individual decisions be made with due regard to all other elements of the internal situation and in the light of our overall objectives.
iv.
Information and propaganda. The most immediate Soviet response to the Truman Doctrine was in the field of propaganda, the United States being prompted [promoted?] from no. 3 whipping-boy in the Greek arena (viz, after the Greek and British Governments) to the distinction of public enemy no. 1. Expansion of the Truman Doctrine into the Marshall Plan was answered with a formal declaration of psychological warfare, the Cominform.
Instead of meeting this propaganda attack, we have actually retreated in the main target area, reducing by half the already inadequate local budget of the USIS in Greece and obliging the Greeks to trim by 17 percent the budget of the Greek Under Secretariat for Press and Information.
The value of propaganda as a weapon of war and politics should need no argument, and the consequences of our own and the Greek’s relative neglect of this weapon are apparent in the apathy of the Greek people and army, in the widespread confusion of world opinion as to the facts of the situation and American objectives in Greece, and in the feeling among opposition (genuine democratic) elements in the satellite countries that they have been abandoned.
It is recommended, therefore, that in cooperation with the Greeks we launch a concerted campaign designed frankly to arouse the people within Greece and to break guerrilla morale, to counteract the Soviet campaign of lies and vilification throughout the world, and to stimulate resistance activities in the Soviet satellite countries. The set of assumptions in the Department’s circular telegram of December 4,6 just received here, is excellent and might well be made a world-wide directive. The Greek Information Service, at present a neglected political plum, should be raised to a full ministry, adequately staffed both at home and abroad, and aided by the advice of outstanding American public relations experts. Greek affairs should receive more extensive and more positive treatment in OIE propaganda throughout the world, the maximum possible publicity being given to hitherto secret information on subversive, Soviet-sponsored activities, and our diplomatic agents should be instructed to keep all friendly governments consistently and thoroughly informed on the Greek situation. This is particularly important in order to prepare other members of the UN for whatever further international action may be required in defense of Greece. Finally, the current plan to set up a combined Hellenic-American radio station in Greece should be carried through promptly and [Page 449] there should be no hesitancy about directing some of the programs to the guerrillas themselves and to listeners in the satellite states.
  1. Received December 15.
  2. Infra.
  3. Drafted by Messrs. Minor, Witman, Cromie and Marcy; edited by Chargé Keeley; reviewed and concurred in by Mr. Groves.
  4. Not printed.
  5. For text, see SC, 2nd yr., No. 74, p. 1907.
  6. Not printed.