Office of the Historian

352. Memorandum of Conversation0

Washington, August 7, 1963.

SUBJECT

  • U.S. Aide-memoire to Greece

PARTICIPANTS

  • His Excellency Alexander A. Matsas, Ambassador of Greece
  • The Honorable Phillips Talbot, Assistant Secretary of State, NEA
  • Joseph Wheeler, AID/GTICC
  • Thomas F. Hoctor, GTI

The Greek Ambassador called on Mr. Talbot to receive the U.S. aide-memoire on defense assistance and economic aid to Greece1 in response to requests made by Coordination Minister Papaligouras at the time of his recent visit to the U.S. In presenting the aide-memoire, Mr. Talbot made the following points:

1.
In delivering the aide-memoire we wish again to emphasize the continuing U.S. interest in the security, stability and progress of Greece.
2.
Our views regarding the feasible and proper level of the Greek defense effort are formed in the light of the probable availability of Greek resources and NATO assistance and of the competing needs of [Page 681] the growing Greek economy. We regard these matters as interdependent. Military security provides the confidence and stability needed for economic growth; increased economic strength and well-being should provide the basis for an adequate defense effort. The foundation of Greek security, like that of the other NATO countries, rests on the NATO alliance.
3.
U.S. aid programs regarding Greece reflect our belief in Greece’s growing ability to sustain a satisfactory rate of economic growth. At this stage we regard Greece’s own efforts as the essential ingredient, with inflows of foreign capital being attracted by Greece’s successes in the economic field rather than, as in the past, Greece’s economy being impelled toward growth by foreign assistance. We therefore reiterate our view that the GOG should continue to press ahead wherever possible at this time in its economic programs.

Mr. Matsas read the aide-memoire, expressed the thanks of his Government, and pointed out that, since the aide-memoire is a long and complicated document, he could not comment on it except to note in passing the fact that the U.S. proposed to contribute $5 million in 1964 toward the NATO Working Group exercise for Greek Defense, rather than $10 million, as had been the case in 1963. He also noted the phased reduction of commercial consumables under MAP.

In conclusion, Mr. Talbot remarked that the state of U.S.-Greek relations marked by the aide-memoire showed the remarkable progress made by Greece since 1947, and even since 1953. He reiterated his previously expressed view that the U.S. wished to continue on a “business-as-usual” basis with regard to Greece, despite the present pre-election situation.

  1. Source: Department of State, Central Files, POL US–Gr. Confidential. Drafted by Hoctor.↩
  2. Not found but see Document 351.↩