313. Memorandum From the Assistant Secretary of State for Near Eastern, South Asian, and African Affairs (Rountree) to the Under Secretary of State (Herter)1
SUBJECT
- Operations Plan for Greece
Background:
There is attached a paper entitled “Operations Plan for Greece,” designed to implement NSC 5718/1 on Greece, approved by the NSC on August 5, 1957.2 The Operations Plan is to be considered by the OCB at its meeting on December 4, 1957.
. . . . . . . . . . . . . .
Discussion:
The Operations Plan is primarily concerned with the manner in which we should seek to achieve our continuing important objectives with respect to Greece in the face of strengthened Greek self-confidence growing out of increased economic strength and political [Page 601] stability on the one hand and reductions in our aid programs in Greece on the other. We seek, as noted in paragraph 8, to channel this increased self-confidence into greater support by the Greek Government and people for NATO and Greece’s Western alliances. Paragraph 9 points out that the Cyprus question is the greatest obstacle at the present time to achievement of this goal. This paragraph also notes how Cyprus has endangered virtually all policies requiring Greek-Turk, Greek-US and Greek-NATO cooperation. Without specific reference to Cyprus (because of the Presidential action noted above), we therefore stress in paragraph 24 the importance of strengthening the conviction of the Greek leaders and public that Greek interests lie with NATO and the West.
Another of our policy objectives which has been thwarted by the Cyprus dispute is the development of the Balkan Pact among Greece, Turkey and Yugoslavia. The Board Assistants, noting developments since NSC action on the policy paper, including continued Greek-Turk differences over Cyprus and renewed uncertainty as to the future of Soviet-Yugoslav relations, expressed reservations as to the desirability of emphasis on its further development at this time. Caution in US initiative is therefore suggested in paragraphs 8 and 26.
Considerable discussion took place in meetings of the working group and the Board Assistants on the implications for US aid programs in Greece of objective Number 7: “A Greek economy which can support reasonable economic development and assume a larger share of the cost of the Greek defense established [establishment].” The basic policy paper for Greece pointed out the political importance in Greece of continued economic growth deriving from economic development projects and stated that external economic aid would be necessary to achieve this so long as we encourage Greece to continue defense expenditures at their present increasing levels. We believe that the language of the policy guidance in paragraphs 13 and 14 is a good general statement of this problem and the outlook for our aid programs in Greece. Paragraph 13 points out that economic assistance in its several forms should be continued to help Greece maintain an appropriate defense position as well as a modest rate of economic growth. Paragraph 14 notes the political problems in Greece growing out of heavy defense expenditures but expresses our consistent policy that Greece should be encouraged to assume a larger share of its total defense costs as its gross national product increases. The possibility that the continuing review of Greek force levels may provide a way out of this political dilemma is also discussed. Paragraphs 38 and 40 state specific courses of action on this problem.
[Page 602]Recommendation:
That you seek approval by the Board of the attached Operations Plan.
- Source: Department of State, OCB Files: Lot 62 D 430, Greece. Secret. Drafted by Laingen on November 26.↩
- The attached draft, dated November 19, is not printed. (Ibid., NEA/GTI Files: Lot 60 D 39, Greece 1957 NSC–OCB) The approved Operations Plan for Greece is printed as Document 315.↩