Foreign Relations of the United States, 1948, Eastern Europe; The Soviet Union, Volume IV

868.20/11–1948: Telegram

Memorandum by the Coordinator for Aid to Greece and Turkey (McGhee) to the Under Secretary of State (Lovett)

top secret

[Washington,] November 19, 1948.

discussion

The Bureau of the Budget has requested preliminary requirements for Greek-Turkish aid for FY 1950 by November 24, 1948 for the final review by the Director of the Budget of all foreign assistance for inclusion in the President’s printed budget. Since discussions currently underway within the Executive have not materialized in new policies with respect to military assistance to Greece and Turkey, recommendations of the chiefs of the respective aid missions have been requested by November 22nd on the basis of existing policy (i.e. policy implicit in PL 75 and related Congressional hearings). In order to evaluate recommendations from the field and to coordinate their final presentation to the Bureau of the Budget and Congress the Department should at an early date seek answers to certain questions:

1. Is there any new policy upon which requests for military assistance to Greece and Turkey can be based which can supplement or supersede existing policy? In this connection recommendation was made in memorandum of August 11, 1948, that an early decision be requested from the NSC defining U.S. long-range strategic interests in Greece and Turkey which could be used as a basis for such a policy. A paper is now under consideration by the JCS for eventual presentation to the NSC which is understood to recommend: (a) No long-range strategic interest in Greece, leaving military assistance during FY 1950 on the basis of the present policy, and (b) Sufficient long-range strategic interest in Turkey to justify assistance over and above that permitted under present policies. (Military assistance for FY 1950 being considered on this basis is $350,000,000 in comparison with $75,000,000 requested in FY 1949.) If this decision is made, Turkey will occupy with respect to this country a position more comparable to the Western Union countries than to Greece. It is not expected, however, that this policy will be developed in time for inclusion of the larger figure in the President’s printed budget.

2. Is request for military aid to Greece and Turkey to be lumped with an overall request covering all U.S. foreign military assistance under a revival of the old Title VI of the Foreign Assistance Act now under consideration, and if so: (a) Is the amount requested for Greece and Turkey to be a planning figure only, subject to later reallocation by the Executive, or (b) Is it to be a firm figure which will permit reallocation as between the two countries only? and (c) Will the appropriation be requested from Congress in time to prevent break in pipeline of supplies for the Greek Aid Program. It now appears that new money will be needed for the Greek aid program by April 1, 1949, whereas current estimates are that money under an overall request will probably not be available until May, 1950.

3. If funds for Greek-Turkish aid for FY 1950 are appropriated along with all other U.S. foreign military assistance, which agency or agencies will the President select to administer the assistance?: (a) Who will administer the program in Washington, particularly who will make decision as to funds to be made available to particular countries assuming Congress appropriates a lump sum subject to reallocation? In the event that the National Military Establishment is responsible, can the Department assume that the special political aspects of the Greek problem will be adequately considered? (b) Who will administer the program in the field? Experience has shown the necessity for centralizing responsibility for all U.S. assistance to Greece in the Ambassador. If General Van Fleet were responsible only to the NME there could result three relatively uncoordinated representatives of U.S. agencies in Greece: ECA, NME and State. In the case of Turkey this would not constitute such a great problem, probably no greater than would be encountered in a program of military assistance to the Western Union countries.

recommendations

1. That the JCS and NSC be pressed for an early decision on U.S. strategic interests in Greece and/or Turkey which will affect military assistance to these countries in FY 1950.

2. That the Department seek to be given continued overall responsibility for administration of military assistance to Greece and Turkey or at least to Greece, even if the NME is given responsibility for administration of military assistance to the Western Union countries.

3. That if all foreign military assistance for FY 1950 is appropriated in a lump sum, the Department seek to have Greek and Turkish or at least Greek assistance appropriated as a firm figure, unless the Department is assured adequate policy control over subsequent reallocations.

4. That if new funds from an overall foreign military assistance request are not expected to be available by April 1, 1949, the Department support a separate request for assistance to Greece and Turkey or at least to Greece at an earlier date under the Foreign Assistance Act or separately.

concurrences

GTI: J[ohn] D. J[ernegan]

NEA: J[oseph] C. S[atterthwaite]