Foreign Relations of the United States, 1947, The Near East and Africa, Volume V

868.20/12–2447: Telegram

The Acting Secretary of State to the American Mission for Aid to Greece

secret
us urgent

Washington, December 30, 1947—7 p. m.

Gama 718. Discussion with Livesay and Army yields following proposals which are believed to be in accordance with your views as expressed Amag 722¹ and in which Dept concurs provided you so recommend.

(1) Greek Govt should be authorized (Amag 562² and 722) to form National Defense Corps of 100 battalions, provided (a) specific battalions are formed only with AMAG approval of time and location and after food and equipment are ready on ground for immediate issuance to them and (b) the Greek National Army must as NDC battalions are formed be freed completely from static defense tasks for mobile operations.

(2) Greek Govt should be authorized to increase permanent size of Greek National Army by 12,000 men. Total authorized permanent size becomes 132,000 after completion training present 20,000 recruits.

(3) Additional amount, estimated by Livesay at $15 millions, should be earmarked (Amag 661³) for military program to cover increases under (1) and (2) by diversion that amount from civilian program funds. Dept considers it unwise to risk acceleration of expenditures of funds presently allocated to military. Total amount earmarked for Ground and Air programs will thereby be increased from $144 millions to $159 millions. This increase includes USAGG administrative expenses (Amag 705 and Gama 665⁴). Livesay wishes delay final confirmation adequacy $15 millions additional this fiscal year until receipt in few days USAGG report on review of needs Greek forces point of view operational requirements. Diversion $15 millions from civilian funds will of course hasten exhaustion such funds and increase Greek need from ERP appropriations, in event ERP is authorized by Congress, but urgency of military need is believed to govern in circumstances. Dept requests your recommendations as to cut backs in other programs required to furnish $15 millions which can, of course, take into consideration accelerated expenditures authorized Gama 637.⁵ View inflationary effect steps authorized in (1) and (2) above, it may be best to take bulk of funds from reconstruction and agricultural rehabilitation projects, particularly those not yet started which may be delayed pending availability new funds. Livesay and Army Dept will review carefully entire military requirements to determine whether any items for delivery after June 30, 1948 can without imperiling continuity military aid be eliminated present procurement program and deferred until new military aid funds appropriated to continue aid after June 30. Any such elimination found possible will accordingly reduce required diversion below authorized $15 millions.

(4) Livesay prefers not make recommendation question of special equipment such as mountain artillery and machine guns, and question of any further increase in size of GNA necessary to permit effective use such equipment, until he receives USAGG report which he expects by Jan 15 latest.

You may in advice to Greek Govt wish attach conditions additional those stated above to US approval expansion size and cost GNA and NDC, including action urged in Gama 707⁶ and anti-inflation measures.

Livesay sending parallel Army telegram with more detailed information foregoing military subjects.

Livesay planning return Athens departing Washington Jan first. If you approve foregoing proposals you should advise Greek Govt at once and announce to press US decision approve NDC of 100 battalions and increase 12,000 in size GNA, state that US is reviewing question equipment needs GNA and possible further increase in size GNA, and express US confidence in Greek forces. You should also state categorically that this decision will not reduce supplies of consumer goods to Greece during next few months and that recently announced accelerated imports program still stands. Advise Dept urgently of decision in time for Dept confirm news reports your statement and for Livesay to comment similarly here on US confidence ability of Greek forces to overcome guerrilla opposition in reasonable course.⁷

Lovett

1. Dated December 24, not printed, but see footnote 1, p. 467.
2. Dated December 2, p. 428.
3. Dated December 15, not printed.
4. Dated December 22 and December 19, respectively, neither printed.
5. Dated December 16, p. 454. Governor Griswold, in telegram Amag 54, January 10, 1948, recommended cutbacks of $11,200,000 for reconstruction, $2,300,000 for agricultural rehabilitation, $500,000 for the medical program, and $1,000,000 for the naval program (868.00/1–1048).
6. Dated December 29, not printed.
7. In telegram 2083, December 31, the Department advised Governor Griswold that he might “prefer let Greek Government make first announcement decision to increase NDC and GNA (Gama 718 Dec 30 last para) and confine AMAG statement to confirmation US approval, further study equipment needs and possible further increase size GNA and expression US confidence Grk forces.” (868.20/12–3147)