868.51/1668

Memorandum by the Adviser on Political Relations (Murray)76

The so-called “Swedish scheme” for Greek relief involves the use of eight Swedish vessels.77 These are nominally chartered by the Swedish Red Cross but the payment obligation, amounting to $900,000 to $1,000,000 per month, falls to the Greek Government in exile. That Government appealed to the Greek War Relief Association of New York to relieve it of this burden: The Association undertook to do so, to the maximum extent of its ability, and applied to the President’s War Relief Control Board for permission to raise $12,000,000 from the American public for this purpose. The Board, while granting provisional permission for a campaign for $6,000,000 for six months, decided, in consultation with the Department, that it was undesirable for a private organization to endeavor to support an undertaking of this magnitude by public subscription. In practice the Association has in fact been able to collect and pay only about $200,000 per month towards the charter of these ships, and the balance has fallen upon the Greek Government.

The resources and income of the Greek Government are very limited and are rapidly approaching exhaustion. Some time ago they appealed to us for financial assistance, and it is our understanding that the President has decided that some arrangement must be made whereby the Greek Government can be kept going.78

Full consideration of the method and extent of the aid to be extended will of course depend upon a study of the detailed account of its financial position which the Greek Government is supplying to us.79 However, we know from the preliminary figures which have been submitted [Page 168] and from the information given us by the British, that the cost of the relief vessels and of caring for Greek refugees in the Near East are among the principal financial burdens falling on that Government. It also seems desirable to us that our aid to the Greek Government be as much as possible by the method of taking over its financial burdens, rather than by cash advances.

A considerable start could be made in this direction if the Lend-Lease Administration would take over the payment of the charter-moneys on these eight Swedish vessels. This would not only relieve the Greek Government directly of their expenditures on this account, but would permit the Greek War Relief Association to assume the burden now falling on the Greek Government in connection with caring for the 15,000 or more Greek refugees in the Near East, which involves an estimated expenditure of about $1,250,000 per annum.

This matter has been discussed informally with Dr. John E. Orchard of the Lend-Lease Administration, who has indicated that the Administration is able and willing to take over the payments on this account if the State Department so recommends.

I may add that there is every reason to believe that both the Greek and British Governments would welcome this plan. Its merits as regards the building of good-will toward this country on the part of the Greek people are, I believe, obvious.

If you approve this proposal, we shall be glad to take the necessary steps to put it into effect.80

Wallace Murray
  1. Addressed to the Secretary of State, Under Secretary of State Welles, and Assistant Secretaries of State Long, Acheson, and Berle.
  2. The History of Lend-Lease, pt. 2, Section XXI, Greece, prepared by the Office of the Foreign Liquidation Commissioner in the Department of State in 1947, states:

    “The Swedish Red Cross originally chartered a fleet of eight Swedish vessels to carry the relief supplies to Greece.… Later, an additional vessel was added to the original fleet. This vessel, however, operated only between the Greek mainland and the islands of the Aegean Sea. Still later, five more vessels were added, making a total of fourteen vessels in all.” (p. 5).

  3. See memorandum of July 23, 1942, by Under Secretary of State Welles and footnote 71, Foreign Relations, 1942, vol. ii, p. 800.
  4. See report of October 15, 1942, by the Greek Minister of Finance handed to the Chief of the Division of Near Eastern Affairs by the Greek Ambassador shortly before December 10, 1942, and footnote 73, ibid., p. 804.
  5. After lengthy consideration in the Department, the proposal was approved by the Secretary of State in an undated memorandum received in the Division of Near Eastern Affairs on February 26, 1943.