[Annex]
Statement by the Secretary of State4
top secret
[Washington, undated.]
A crisis of the utmost importance and urgency has arisen in Greece
and to some extent in Turkey. This crisis has a direct and immediate
relation to the security of the United States.
For the past ten days our representatives in Greece, Ambassador
MacVeagh, Mr. Ethridge and Mr. Porter, have been warning us that
economic collapse is imminent, that the morale of the Greek Army,
already low, will be deeply shaken and that the integrity and
independence of the country itself is threatened. What the Greek
Government
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needs urgently
are funds to meet the needs of the military and civilian population
in foreign purchases and certain amounts of light military equipment
in order to suppress the bandit groups which, under Communist
leadership, are threatening the Government and the tranquility of
the country.
Hitherto the British Government has been meeting the foreign currency
needs of the Greeks and has been giving them such military items as
they have. It is now clear that the grave difficulties into which
the British are plunged will not make this help possible for many
weeks more. It is estimated that for the remainder of the year the
needs of the Greek Government may amount to $250,000,000. It is
altogether possible, and indeed probable, that there will be further
needs next year. In addition to financial help it is essential that
the Greeks be given assistance in the expenditure of these funds in
the reconstruction of the essential services in the country such as
railroads, harbor facilities, bridges, highways, et cetera, and in
the reorganization of the civil service which has been shattered by
the occupation and the inflation.
Our interest in Greece is by no means restricted to humanitarian or
friendly impulses. If Greece should dissolve into civil war it is
altogether probable that it would emerge as a communist state under
Soviet control. Turkey would be surrounded and the Turkish
situation, to which I shall refer in a moment, would in turn become
still more critical. Soviet domination might thus extend over the
entire Middle East to the borders of India. The effect of this upon
Hungary, Austria, Italy and France cannot be overestimated. It is
not alarmist to say that we are faced with the first crisis of a
series which might extend Soviet domination to Europe, the Middle
East and Asia.
There is no power other than the United States which can act to avert
this crisis. The British, as the recent coal crisis has
demonstrated, are in extreme economic distress. They are liquidating
their positions in Burma, India, Palestine and Egypt. There is no
reasonable basis for doubting that the same considerations are
operating to terminate their expenditures in Greece and Turkey.
We can give you no assurance that American assistance to Greece will
unquestionably save the situation but it is plainly evident that
that situation cannot be saved without American assistance. The
choice is between acting with energy or losing by default.
The problem in Turkey is slightly different. The Russians, by
conducting a war of nerves, have kept the entire Turkish Army
mobilized with the resulting drain upon the economy of that country
which it cannot long support under its present antiquated economic
structure. It needs two things, financial assistance to increase its
productiveness
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and some help
to the end that its military forces may be rendered equally
effective with fewer men. Here again only the United States can
render effective help in view of the situation of Great Britain. Our
military authorities are united in the view that the maintenance of
the integrity of Turkey is essential to the entire independent
structure of the eastern Mediterranean and the Middle East.
Improved relations and better understanding with the Soviet Union
will be much more difficult of achievement if we allow the situation
in Greece and Turkey to deteriorate.
As you see from what I have said the present situation is not one
which permits of delay or inaction. We are at the point of decision.
We cannot enter upon the first steps of policy without the assurance
and determination to carry it through. To do this requires the
support of the Congress and certain legislation. I hope this
legislation may be obtained with bi-partisan support and without
protracted controversy. Internal division and delay might gravely
imperil the success of the program we are proposing.
I do not wish to minimize the importance of the decision which has to
be made. What the Administration seeks at the present time is as
follows:
- 1.
- Your support for a statement by me to the Greek and
British Governments that the United States Government is
prepared to render substantial financial assistance to the
Greek Government (as I said before, this may reach
$250,000,000 in the present year) and to transfer such light
military equipment as is necessary to restore order and the
authority of the Government. We shall, of course, require
assurances from both the Greek and British Governments that
they will act to the full extent of their capacities to
achieve the result which we are seeking. We shall also
insist that there is full American supervision of the
expenditure of such assistance as we may give.
- 2.
- Such emergency legislation, probably in the form of an
authorization to the Export-Import Bank, to make funds
available without hampering restrictions. This may have to
be followed with other legislation after we have received
the report of the economic mission now in Greece.
- 3.
- Support for similar action in the case of Turkey as a
result of more mature examination of that situation.
- 4.
- Your support, should the legislation be necessary, for
such amendments to existing law as are necessary to permit
the transfer of essential military equipment referred to
above.
